Edison International · NYSE:EIX
Edison International — Corporate Update (July 2023)
58 slides from Edison International's corporate update, Jul 28, 2023
Slide 1: July 28, 2023 Business Update
JULY 28, 2023 BUSINESS UPDATE
Slide 2: Forward-looking statements
Edison International | July 2023 Business Update 1 Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, ar
Slide 3: Edison International leads the transformation of the electric power industry
Edison International | July 2023 Business Update 2 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Edison International leads the transformation of the electric power industry One of the nation’s largest electric-only utilities, serving over 15 mill
Slide 4: Thesis: Wires-focused utility with rate base growth aligned with clean energy goals
Edison International | July 2023 Business Update 3 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Thesis: Wires-focused utility with rate base growth aligned with state’s aggressive clean energy goals Constructive California and Federal regulatory
Slide 5: EIX well positioned for a decarbonized future
Edison International | July 2023 Business Update 4 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX well positioned for a decarbonized future; no coal or gas LDC exposure and high electric sales growth potential UTY1 EEI Index2 Electric-Only Util
Slide 6: Sustainability at the core of Edison's vision
Edison International | July 2023 Business Update 5 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Sustainability at the core of Edison’s vision to lead the transformation of the electric power industry 2045 goals: net-zero GHG emissions across Scop
Slide 7: Sustainable financing activities underscore link between strategy and financings
Edison International | July 2023 Business Update 6 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Sustainable financing activities underscore strong link between strategy and financings 1. Excludes projects with GHG intensity above 100 gCO2e / kWh
Slide 8: California's regulatory mechanisms provide revenue certainty
Edison International | July 2023 Business Update 7 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix California’s regulatory mechanisms provide revenue certainty Revenue Decoupling means earnings aren’t affected by changes in electricity sales Long-st
Slide 9: Clean Energy Transition Leadership
CLEAN ENERGY TRANSITION LEADERSHIP
Slide 10: Reaching California's 2045 GHG goals requires near-complete energy transformation
Edison International | July 2023 Business Update 9 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Reaching California’s 2045 GHG goals requires a near-complete transformation of energy use economy wide 1. AB 1279 became law on September 16, 2022, r
Slide 11: Electricity sales required to be 100% carbon-free by 2045
Edison International | July 2023 Business Update 10 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Electricity sales required to be 100% carbon-free by 2045 Decarbonizing transportation sector, ~40% of GHG emissions, requires widespread electrifica
Slide 12: Significant incremental grid investments required by 2045
Edison International | July 2023 Business Update 11 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Significant incremental grid investments required by 2045 to serve load growth and integrate renewables and storage 1. Source: CAISO 2022-2023 Transm
Slide 13: Electrified world produces energy cost savings for average household
Edison International | July 2023 Business Update 12 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix By 2045, a greater reliance on electricity, combined with population and economic growth, will result in a 60% increase in electricity sales from the
Slide 14: 2022 energy share of wallet in SCE's service area near median
Edison International | July 2023 Business Update 13 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 0% 2% 4% 6% 8% 10% Mississippi West Virginia Alabama Kentucky Oklahoma Arkansas Wyoming Indiana South Dakota Louisiana Kansas Montana South Carolina
Slide 15: Edison has one of the strongest electrification profiles in the industry
Edison International | July 2023 Business Update 14 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Edison International has one of the strongest electrification profiles in the industry 1. As of April 2023. Source: DMV on data provided by EPRI 2. B
Slide 16: SCE leads largest utility transportation electrification programs in the U.S.
Edison International | July 2023 Business Update 15 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix $872 $414 $402 $368 $309 $293 $235 $207 EIX PCG NGG ED ES PEG SRE NEE SCE leads the largest utility transportation electrification initiatives and pr
Slide 17: SCE's load growth highly levered to EV adoption
Edison International | July 2023 Business Update 16 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s future load growth is highly levered to EV adoption, a critical component of reaching state GHG goals 1. Includes both light duty and non-light
Slide 18: SCE strengthening grid reliability for summer 2023 and beyond
Edison International | July 2023 Business Update 17 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE is actively strengthening grid reliability to prepare for summer 2023 and beyond Energy Storage ~2 GW currently online Installed or procured ~6 G
Slide 19: SCE Wildfire Mitigation: Approach, Progress, and Results
SCE WILDFIRE MITIGATION: APPROACH, PROGRESS, AND RESULTS
Slide 20: Proof points and results from wildfire mitigation efforts since 2018
Edison International | July 2023 Business Update 19 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE is seeing numerous proof points and results from its substantial wildfire mitigation efforts since 2018 1. Measured by faults covered conductor i
Slide 21: 2023–25 Wildfire Mitigation Plan builds on 2020–22 plan
Edison International | July 2023 Business Update 20 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s 2023–25 Wildfire Mitigation Plan (WMP) builds upon the accomplishments and lessons from the 2020–22 WMP In 2023, SCE is building on and extendi
Slide 22: AB 1054 provides regulatory construct for wildfire liability and cost recovery
Edison International | July 2023 Business Update 21 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix AB 10541 provides a strong regulatory construct for determining wildfire liability and cost recovery Established safety certification process and add
Slide 23: California continues to increase wildfire suppression and prevention investments
Edison International | July 2023 Business Update 22 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix $2.0 $2.5 $2.9 $2.5 $2.6 $3.7 $4.1 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 California has continued to increase investments in wildfi
Slide 24: Tools and technology monitor real-time conditions
Edison International | July 2023 Business Update 23 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s tools and technology allow it to monitor real-time conditions to help inform operational decision-making 180+ cameras that provide visibility t
Slide 25: Covered conductor is one of the most effective wildfire measures
Edison International | July 2023 Business Update 24 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix https://www.edison.com/_gallery/ get_file/?file_id=634a0ff38ed7df0 e03e0e3a4&file_ext=.pdf&page_i d= Covered conductor is one of the most effective m
Slide 26: Significant progress hardening the grid
Edison International | July 2023 Business Update 25 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE has made significant progress hardening the grid to keep its communities safe ~7,200 ~4,400 1,200 ~3,100 ~900 ~16,800 Distribution Miles in HFRA
Slide 27: Substantial progress in grid hardening of overhead bare wire
Edison International | July 2023 Business Update 26 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Substantial progress in grid hardening — ~58% of overhead bare wire in SCE’s HFRA to be covered by end of 2023 Prioritizing riskier segments first, S
Slide 28: Wildfire mitigation and PSPS reduced probability of catastrophic losses by ~85%
Edison International | July 2023 Business Update 27 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE estimates its wildfire mitigation and PSPS have reduced probability of losses from catastrophic wildfires by ~85%1,2 1. Baseline risk estimated b
Slide 29: Covered conductor deployment has reduced use of PSPS
Edison International | July 2023 Business Update 28 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Covered conductor deployment has reduced SCE’s use of PSPS for lowering wildfire risk 1. Baseline risk estimated by Risk Management Solutions, Inc. (
Slide 30: Financial
FINANCIAL z Oo z = [ad oO ire =
Slide 31: Capital deployment expected to increase in 2025–2028
Edison International | July 2023 Business Update 30 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Capital deployment expected to increase in 2025–20281 Range Case2 $5.7 $5.7 $6.6 $6.7 $6.7 $6.4 $6.0 $6.2 $7.5 $8.0 $8.1 $7.7 2023 2024 2025 2026 202
Slide 32: Over 85% of capital investments are in distribution grid
Edison International | July 2023 Business Update 31 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Over 85% of SCE’s capital investments are in its distribution grid and essential to reliability, resiliency, and readiness objectives Distribution No
Slide 33: Approvals of standalone applications for ~$3 billion of capex
Edison International | July 2023 Business Update 32 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE has obtained approvals of standalone applications for ~$3 billion of capex over past two rate case cycles 2018 2019 2020 2021 2022 2023 $252 mill
Slide 34: GRC request supports ~6–8% rate base growth 2023–2028
Edison International | July 2023 Business Update 33 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix GRC request supports ~6–8% rate base growth 2023–2028; substantial additional investment opportunities offer upside 1. Weighted-average year basis 2.
Slide 35: Long-term growth drivers aligned with California public policy goals
Edison International | July 2023 Business Update 34 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s long-term growth drivers highly aligned with California’s public policy goals Infrastructure Replacement Wildfire Mitigation Grid Modernization
Slide 36: Memo account recovery and securitization strengthen balance sheet
Edison International | July 2023 Business Update 35 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Cash flow from memo account recovery and securitization strengthens our balance sheet and credit metrics Approved Applications Application / Account
Slide 37: CPUC cost recovery request for 2017/2018 events
Edison International | July 2023 Business Update 36 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE will request CPUC cost recovery for 2017/2018 events, with first application targeted for August 2023 2.4 0.5 5.3 0.6 8.8 Best Estimate of Total
Slide 38: CPUC cost of capital mechanism adjusts ROE
Edison International | July 2023 Business Update 37 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 Oct. 1, 2022 Jan. 1, 2023 Apr. 1, 2023 Jul. 1, 2023 Oct. 1, 2023 CPUC cost of capital mechanism adjusts ROE; also
Slide 39: EIX and SCE committed to investment grade credit ratings
Edison International | July 2023 Business Update 38 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX and SCE committed to investment grade credit ratings 1. Excludes amortization of securitized bonds related to SCE’s AB 1054 Excluded Capital Expe
Slide 40: Limited variable-rate exposure beyond 2023
Edison International | July 2023 Business Update 39 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX & SCE have limited variable-rate exposure beyond 2023 Approximately $11 billion of the total ~$31 billion debt portfolio matures through 20281 SC
Slide 41: EIX reaffirms 2023 core EPS guidance of $4.55–4.85
Edison International | July 2023 Business Update 40 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX reaffirms 2023 core EPS guidance of $4.55–4.85 1. SCE is unable to conclude, at this time, that these amounts are probable of recovery; however,
Slide 42: 2022 core EPS to 2023 guidance bridge
Edison International | July 2023 Business Update 41 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 4.63 0.35 0.15 (0.19) 4.94 (0.24) 4.70 2022 Core EPS Rate Base Earnings SCE Operational Variances EIX Parent & Other Results Before Incr. WF Claims D
Slide 43: Significant portion of 2023 financing plan accomplished early
Edison International | July 2023 Business Update 42 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Significant portion of EIX 2023 financing plan accomplished early in the year, with strong investor support for offerings 1. Financing plans are subj
Slide 44: Track record of meeting EPS guidance and growing dividend
Edison International | July 2023 Business Update 43 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX has a strong track record of meeting or exceeding EPS guidance and growing dividend 1. EPS guidance was not provided in 2012 or 2018 because of t
Slide 45: Operational excellence efforts producing O&M savings
Edison International | July 2023 Business Update 44 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s operational excellence efforts are producing O&M savings for its customers Insurance: Wildfire Self-Insurance Program – Expanded use of custome
Slide 46: EIX reaffirms 5–7% 2021–2025 EPS growth rate target
Edison International | July 2023 Business Update 45 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX reaffirms 5–7% 2021–2025 EPS growth rate target, which would result in 2025 EPS of $5.50–5.901 1. Based on the midpoint of initial 2021 Core EPS
Slide 47: EIX expects 5–7% core EPS growth for 2025–2028
Edison International | July 2023 Business Update 46 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX expects to continue 5–7% core EPS growth for 2025–20281 1. For 2025, represents the midpoint of the 2025 core EPS guidance range for $5.50–5.90 $
Slide 48: Key 2028 Earnings Sensitivities
Edison International | July 2023 Business Update 47 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Key 2028 Earnings Sensitivities Variable Sensitivity 2028 EPS1 (“Per year” amounts refer to 2025–2028) Capex & Rate Base Rate Base $100 million/year
Slide 49: EIX offers double-digit total return potential
Edison International | July 2023 Business Update 48 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX offers double-digit total return potential 1. Compound annual growth rate (CAGR) based on the midpoint of the 2021 Core EPS guidance range of $4.
Slide 50: Appendix
APPENDIX EDISON ~~ INTERNATIONAL®
Slide 51: Edison Energy partners with market leaders
Edison International | July 2023 Business Update 50 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Partners with market leaders to deliver on their strategic, financial, and sustainability goals by addressing carbon, cost, complex choices, and crea
Slide 52: SCE Key Regulatory Proceedings
Edison International | July 2023 Business Update 51 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE Key Regulatory Proceedings Proceeding Description and Next Steps Base Rates 2021 GRC Track 4 (A.19-08-013) Set CPUC base revenue requirement for
Slide 53: Proposed schedule for 2025 GRC
Edison International | July 2023 Business Update 52 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s proposed schedule for its 2025 GRC would result in a final decision in December 2024 Event SCE Proposal ✓ Application Filed Complete ✓ Mandated
Slide 54: Near-term debt maturities are manageable
Edison International | July 2023 Business Update 53 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Edison’s near-term debt maturities are manageable Currently Outstanding Debt Maturities (2023–2028)1 2023 2024 2025 2026 2027 2028 Variable Rate (SOF
Slide 55: SCE continues to fund wildfire claims payments with debt
Edison International | July 2023 Business Update 54 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE continues to fund wildfire claims payments with debt Series Principal Due Rate 2021J 400 8/1/23 0.700% 2021C 400 4/1/24 SOFR + 83bps 2021E 700 4/
Slide 56: EIX Core EPS Non-GAAP Reconciliations
Edison International | July 2023 Business Update 55 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 2023 2022 Basic EPS $ 4.33 $ 1.61 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries (0.28) (3.27) Wildfire
Slide 57: Earnings Per Share Non-GAAP Reconciliations
Edison International | July 2023 Business Update 56 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Low High Basic EIX EPS $4.18 $4.48 Total Non-Core Items1 (0.37) (0.37) Core EIX EPS $4.55 $4.85 1. Non-core items are presented as they are recorded
Slide 58: Use of Non-GAAP Financial Measures
Edison International | July 2023 Business Update 57 Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings (losses) internally for financial planning and for