Edison International · NYSE:EIX
Edison International — Q4 2007 Earnings Presentation
21 slides from Edison International's earnings presentation, Feb 27, 2008
Slide 1: 2007 Financial Teleconference
Exhibit 99.2 Leading the Way in Electricity SM 2007 Financial Teleconference February 27, 2008 EDISON INTERNATIONAL®
Slide 2: Forward-Looking Statements
Leading the Way in Electricity SM Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, earnings, asset and rate base growth, load growth, capital investments, and other statements that are not purely historical, are forward-loo
Slide 3: Fourth Quarter Earnings Summary
Leading the Way in Electricity SM Fourth Quarter Earnings Summary 1 GAAP Core Net Income Reported EPS Net Income EPS ($ millions) ($ millions) $0.87 $288 $0.64 $214 $215 $0.65 $0.65 $211 4Q 07 4Q 06 4Q 07 4Q 06 4Q 07 4Q 06 4Q 07 4Q 06 1 Reported earnings per share refers to basic earnings per share.
Slide 4: Fourth Quarter Financial Results
Leading the Way in Electricity SM Fourth Quarter Financial Results Reconciliation of Core Earnings to Reported Earnings Core Earnings Variances SCE Core Earnings 4Q 07 4Q 06 Var. Settlement of a tariff dispute 0.05 EMG SCE $ 0.37 $ 0.32 $ 0.05 Midwest Generation Lower interest expense from debt repa
Slide 5: Full-Year Earnings Summary
Leading the Way in Electricity SM Full-Year Earnings Summary 1 GAAP Core Net Income Reported EPS Net Income EPS ($ millions) ($ millions) $1,217 $3.69 $1,181 $3.58 $3.33 $1,098 $3.07 $1,015 2007 2006 2007 2006 2007 2006 2007 2006 1 Reported earnings per share refers to basic earnings per share. See
Slide 6: Full-Year Financial Results
Leading the Way in Electricity SM Full-Year Financial Results Reconciliation of Core Earnings to Reported Earnings Core Earnings Variances SCE Core Earnings 2007 2006 Var. Higher operating margin and lower income taxes, partially offset by 0.18 higher net interest expense EMG SCE $ 2.07 $ 1.89 $ 0.1
Slide 7: Midwest Generation – Operating Performance
Leading the Way in Electricity SM Midwest Generation – Operating Performance 2007 vs. 2006 All-in average realized price increased 13% in 2007 • Generation up 3.7% compared to last year • Forced Outage Rate impacted by unplanned maintenance outages at 1 All-in Average Realized Prices Powerton Statio
Slide 8: Homer City – Operating Performance
Leading the Way in Electricity SM Homer City – Operating Performance All-in average realized price 2007 vs. 2006 increased 15% in 2007 • Generation up 11.1% compared to last year • Strong operating performance across 1 the board in 2007 All-in Average Realized Prices $60 $56.68 $56.52 $48.61 $49.20
Slide 9: EMG Hedge Program Status
Leading the Way in Electricity SM EMG Hedge Program Status Status at December 31, 2007 2008 2009 2010 Midwest Generation Energy Only Contracts Megawatt hours (in GWh) 10,838 7,692 3,472 Average Price ($/MWh) $61.27 $62.38 $62.62 Load Requirement Services Contracts Estimated GWh 1 5,613 1,632 — Avera
Slide 10: EMG Capacity Status
AVERAGE Leading EMG Status Jan. Midwest Megawatts INSTALLED Less: requirement and NET Fixed RPM Non-unit Variable •Third TOTAL Netretained Price Capacity Expected 1,CAPACITY Capacity Auction Net Party Capacity Price at 2007 per CAPACITY the Capacity December Homer Specific 1capacity — MW-day price e
Slide 11: 2008 Earnings Guidance and Reconciliation
Leading Reconciliation 2008 Core Non-Core EIX — Key SCE EMG as Sycamore •Other 1 EDISON 1011.5% Energy Forward EMMT Lower No Excludes See of $ reported parent core Factors/Assumptions 4.01 changes $1/31/08 EPS1 Earnings Guidance use 1.57 2.18 Return pre-tax the Efficiency pre-tax earnings INTERNATIO
Slide 12: Appendix
Leading the Way in Electricity SM Appendix 11 EDISON INTERNATIONAL®
Slide 13: SCE Capital Spending Forecast
more Leading SCE Proposed $5 $Billions Forecast Edison Generation Transmission Distribution Current CPUC FERC Total1 $19 In 2007, $4billion Capital than $3 Rate 19.0 Rate Project SmartConnectTM Forecast the SCE by $2 1$19 75% capital 2.5 100 Cases Classification Cases Way $0 9.8 Investment 5.5 subst
Slide 14: SCE Rate Base Forecast
Leading SCE Forecast $ $24 12+% $11.7 2007 With 1 timely Act project. EDISON 13Billions Includes of $21 Earnings effective 2008 $12.7 Compound 2008. receipt The $18 the SCE INTERNATIONAL® impact 2009 $15.4 Way denial $15 Forecast Rate of Asset execution 2010 permitting, $9 in Annual of $18.0 has Bas
Slide 15: EMG Comparative Operating Statistics
Leading the Way in Electricity SM EMG Comparative Operating Statistics 4Q 07 4Q 06 Variance % 2007 2006 Variance % Midwest Generation Generation (in GWh) Energy Only contracts 5,062 7,731 22,503 28,898 Load Requirement Services Contracts 1,730 — 7,458 — Total 6,792 7,731 (939) -12% 29,961 28,898 1,0
Slide 16: EMG - Wind Projects and Pipeline
Leading the Way in Electricity SM EMG - Wind Projects and Pipeline Nebraska Iowa Minnesota Wisconsin Pennsylvania Pipeline 80 MW In-Service 145 MW In-Service 75 MW Pipeline 100 MW Construction 67 MW Pipeline 200 MW Construction 70 MW Wyoming Pipeline 149 MW New York Construction 141 MW Pipeline 140
Slide 17: EMG Growth Driver – Wind Energy Development Strategy & Portfolio
Leading the Way in Electricity SM EMG Growth Driver – Wind Energy Development Strategy & Portfolio Wind Energy Development Strategy • Strategic importance to growth plan • Wind energy provides attractive opportunities Contributes to portfolio diversification Growing RPS requirements and national des
Slide 18: EMG – Liquidity Profile
Leading the Way in Electricity SM EMG – Liquidity Profile Available Liquidity Sources ($ Millions) 2007 2006 EME Revolver $ 507 $ 473 MWG Revolver 497 495 1 Cash & Short term investments 1,230 2,181 Total $2,234 $3,149 $1.1 billion of credit facilities between MWG and EME 1 Excludes $121 million and
Slide 19: EMG Adjusted EBITDA Reconciliation – Fourth Quarter
tax credits Leading EMG Reconciliation Net Addback Cumulative Discontinued Interest Income Depreciation EBITDA Production Discrete Impairment Gain Loss Adjusted Note:Income on EBITDA – Fourth from expense income taxes lease early sale the items: (Deduct): 232 EBITDA 1from tax of change $Way of and c
Slide 20: EMG Adjusted EBITDA Reconciliation 2006-2007
tax credits Leading EMG—2006-2007 Reconciliation Net Addback Cumulative Discontinued Interest Income Depreciation EBITDA Production Discrete Impairment Gain Loss Adjusted Note:Income on EBITDA from expense income taxes lease early sale the items: (Deduct): 976 EBITDA 1from tax of change $Way of and
Slide 21: Use of Non-GAAP Financial Measures
Leading the Way in Electricity SM Use of Non-GAAP Financial Measures Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our mana