Ameren Corporation · NYSE:AEE
Ameren — Non-Deal Roadshow (October 2018)
25 slides from Ameren's roadshow presentation, Oct 2, 2018
Slide 1: Purpose-Driven Performance
Purpose-Driven Performance New York and Boston Investor Meetings Oct. 3-4, 2018
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is included in this presentation. Generally
Slide 3: Company Description: Ameren Businesses
Company Description 2.4M electric Ameren Businesses customers Fully rate-regulated electric Ameren Missouri and natural gas utility • Electric generation, transmission and distribution business 0.9M gas and a natural gas distribution business in Missouri regulated Corporate Headquarters customers by
Slide 4: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong long-term Attractive Attractive total return growth outlook dividend potential • Expect 5% to 7% compound annual EPS growth • Annualized equivalent dividend rate of $1.83 • Track record of delivering strong results from 2017 through 20221,2 per
Slide 5: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 6: Executing Our Strategy: Rate Base Growth Plan 2017-2022
Executing Our Strategy Rate Base Growth Plan 2017-20221 Investing in and operating our utilities in a manner Regulated Five-Year Rate consistent with existing regulatory frameworks Infrastructure Rate Base2 Base CAGR • Expect strong ~7% compound annual rate base growth from 2017 ($ Billions) through
Slide 7: Executing Our Strategy – Missouri Legislation Enacted
Executing Our Strategy – Missouri Legislation Enacted Enhancing regulatory frameworks and advocating for responsible energy and economic policies • SB 564 significantly enhances Missouri electric regulatory framework to support investment ─ Effective Sept. 1, improves ability to earn fair return on
Slide 8: Executing Our Strategy – Proposed Wind Investment
Executing Our Strategy – Proposed Wind Investment Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Ameren Missouri pursuing ownership of at least 700 MWs of wind generation, ~$1 billion investment, with multiple developers ─ Proposed inves
Slide 9: Executing Our Strategy – Investing in the Energy Grid
Executing Our Strategy – Investing in the Energy Grid Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Expect the energy grid will be increasingly more important and valuable to our customers, the communities we serve and our shareholders
Slide 10: Summary
Summary Expect to deliver strong earnings growth in 2018 with guidance increased to a range of $3.15 to $3.351 per diluted share Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 7% compound annual EPS growth from 2017 through 20222,3 • Expect ~7% compound annual rat
Slide 11: Financial and Regulatory Update
Financial and Regulatory Update
Slide 12: 2018 Earnings Analysis for Six Months Ended June 30
2018 Earnings Analysis for Six Months Ended June 30 1 Diluted EPS Key Earnings Variance Drivers: YTD June 2017 vs. YTD June 2018 Higher Ameren Missouri earnings $1.59 ─ Higher electric retail sales primarily due to colder winter and extremely warm early summer temperatures: ~+$0.32 $0.30 ─ Temperatu
Slide 13: 2018 EPS Guidance and Select Balance of Year Considerations
2018 EPS Guidance and Select Balance of Year Considerations • Raised 2018 diluted EPS guidance range to $3.15 to $3.351 – Reflects benefit of weather and solid execution of strategy 2018E Diluted EPS • Q3-Q4 2018 EPS compared to Q3-Q4 2017 core2 EPS3 Absence of Ameren Missouri Callaway refueling and
Slide 14: Select Regulatory Matters
Select Regulatory Matters Ameren Transmission • Second complaint case to reduce MISO’s FERC-allowed base ROE pending ─ In June 2016, ALJ recommended a 9.70% base ROE • If approved by FERC, would result in total allowed ROE of 10.20% vs. current 10.82%, both include 50 basis point adder for MISO part
Slide 15: Select Regulatory Matters, Cont'd
Select Regulatory Matters, Cont’d Ameren Illinois Natural Gas • Requested $32 million base rate increase from ICC in annual revenues using 2019 future test year – Reflects stipulation with ICC Staff and active parties on all issues • 9.87% ROE, 50% equity ratio and $1.6 billion rate base • Rate base
Slide 16: Capital Investment Plan 2018-2022 and Expected Funding Plan
Capital Investment Plan 2018-2022 Expected Funding Plan 2018-20221 Excludes Ameren Missouri’s potential incremental grid modernization and proposed wind generation investments • Cash flows from operations ~$11 Billion of Regulated ─ Return on equity-financed portion of rate base Infrastructure Inves
Slide 17: Appendix
Appendix
Slide 18: Solid Operating Performance
Solid Operating Performance Electric rates Delivery system reliability Generating plant Strong safety performance are low has improved performance remains solid Average Residential Safety Distribution System Baseload Energy Electricity Prices1 Performance Reliability2 Center Performance Recordable L
Slide 19: Constructive Regulatory Frameworks for all Four Business Segments
Constructive Regulatory Frameworks for all Four Business Segments FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission •
Slide 20: 2017 GAAP to Core Earnings Reconciliation
2017 GAAP to Core Earnings Reconciliation Three-Months Ended Year-Ended (in millions, except per share amounts) Sept. 30, 2017 Dec. 31, 2017 Dec. 31, 2017 GAAP Earnings / Diluted EPS $ 288 $ 1.18 $ (60) $ (0.24) $ 523 $ 2.14 Charge for revaluation of deferred taxes resulting 22 0.09 — — 22 0.09 from
Slide 21: 2018 Long-Term Debt Financings and Maturities; Credit Ratings
2018 Long-Term Debt Financings Ameren Credit Ratings and and Maturities External Debt Balances1 • On Apr. 6, Ameren Missouri issued $425 million of As of June 30, 2018 $ in 4.00% first mortgage bonds due 2048 millions Moody's S&P – Proceeds used to repay short-term debt, including short-term Ameren
Slide 22: Missouri 20-year Integrated Resource Plan
Missouri 20-year Integrated Resource Plan • Transitioning generation to a cleaner, more diverse portfolio in a responsible fashion ─ Preferred plan includes addition of at least 700 MWs of wind generation by 2020, representing potential ~$1 billion wind investment1 ─ Preferred plan also includes add
Slide 23: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/perf/SB564.pdf • Order passing savings from federal income tax reform to customers: Docket No. ER-2018-0362 • Order approving Renewable Choice Program agreement: Docket No. ET-201
Slide 24: Investor Relations Calendar
Investor Relations Calendar OCTOBER 2018 NOVEMBER 2018 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 6 1 2 3 Boston Wolfe Investor Conf. Meetings 7 8 9 10 11 12 13 4 5 6 7 8 9 10 Q3 Quiet Period Begins 14 15 16 17 18 19 20 11 12 13 14 15 16 17 EEI Conf. EEI Conf
Slide 25: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MEEIA – Missouri Energy Efficiency Investment Act ATXI – Ameren Transmission Company of Illinois MISO – Midcontinent Independent System Operator, Inc. B – Billion MoPSC – Missouri Public Service Commission CAGR – Compound annual grow