Fourth Quarter and Full Year 2016 Financial Results February 21, - PowerPoint PPT Presentation

Fourth Quarter and Full Year 2016 Financial Results February 21, 2017

Forward-Looking Statements 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, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. These forward-looking statements represent our expectations only as of the date of this presentation, and Edison International assumes no duty to update them to reflect new information, events or circumstances. Important factors that could cause different results include, but are not limited to the: ability of SCE to recover its costs in a timely manner from its customers through regulated rates, including costs related to • San Onofre and proposed spending on grid modernization; decisions and other actions by the CPUC, the FERC, the NRC and other regulatory authorities, including the determinations • of authorized rates of return or return on equity, approval of proposed spending on grid modernization, the outcome of San Onofre CPUC proceedings, and delays in regulatory actions; risks associated with cost allocation, including the potential movement of costs to certain customers, caused by the ability • of cities, counties and certain other public agencies to generate and/or purchase electricity for their local residents and businesses, along with other possible customer bypass or departure due to increased adoption of distributed energy resources or technological advancements in the generation, storage, transmission, distribution and use of electricity, and supported by public policy, government regulations and incentives; risks inherent in the construction of SCE’s transmission and distribution infrastructure investment program, including those • related to project site identification, public opposition, environmental mitigation, construction, permitting, power curtailment costs (payments due under power contracts in the event there is insufficient transmission to enable acceptance of power delivery), and governmental approvals; ability to obtain sufficient insurance, including insurance relating to SCE's nuclear facilities and wildfire-related liability, and • to recover the costs of such insurance or in the absence of insurance the ability to recover uninsured losses; and risks associated with the decommissioning of San Onofre, including those related to public opposition, permitting, • governmental approvals, and cost overruns. Other important factors are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis” in Edison International’s Form 10-K, most recent Form 10-Q, and other reports filed with the Securities and Exchange Commission, which are available on our website: www.edisoninvestor.com. These filings also provide additional information on historical and other factual data contained in this presentation. February 21, 2017 1

Fourth Quarter Earnings Summary Q4 Q4 Variance Key SCE EPS Drivers 2016 2015 Revenue 6,7 $0.16 Basic Earnings Per Share (EPS) 1,2 - CPUC – Escalation 0.09 SCE $1.04 $(0.25) $1.29 - CPUC – GRC return on pole loading rate base (0.03) EIX Parent & Other (0.02) 0.03 (0.05) - CPUC – Other 0.09 - FERC revenue and other 0.01 Discontinued Operations 0.04 (0.02) 0.06 Lower O&M 0.09 Basic EPS $1.06 $(0.24) $1.30 Higher depreciation (0.06) Less: Non-Core Items Higher net financing costs (0.05) Income Tax 6,7 _ SCE 3 $  $(1.14) $1.14 Other 0.01 EIX Parent & Other 4 0.04 (0.04)  - Property and other taxes (0.01) Discontinued Operations 5 0.04 (0.02) 0.06 - Other income and expenses 0.02 Total core drivers $0.15 Total Non-Core Items $0.04 $(1.12) $1.16 Non-core items 3 1.14 Core Earnings Per Share (EPS) 1 Total $1.29 SCE $1.04 $0.89 $0.15 Key EIX EPS Drivers EIX Parent & Other (0.02) (0.01) (0.01) EIX parent – Lower corporate expenses and other $0.02 Core EPS 1 $1.02 $0.88 $0.14 EMG – Sold portfolio in 2015 and other (0.03) Total core drivers $(0.01) 0.02 Non-core items 4,5 Total $0.01 1. See Earnings Non-GAAP Reconciliations and Use of Non-GAAP Financial Measures in Appendix 2. Includes full year basic earnings impact of $0.09 due to the adoption of new accounting standards update on share-based payments ($0.05 of this benefit was attributable to prior quarters). See 2016 Retroactively Adjusted EPS by Quarter in Appendix for the impacts on basic and diluted earnings per share for each quarter of 2016 3. See SCE Core EPS Non-GAAP reconciliation in Appendix 4. Impact includes hypothetical liquidation at book value (HLBV) and sale of affordable housing portfolio 5. Impact primarily related to the resolution of tax issues and other impacts related to the EME bankruptcy settlement 6. Excludes income tax benefits for incremental tax repair deductions and pole loading program-based cost of removal of $0.27 7. Excludes San Onofre revenue of $0.02 which was offset by income taxes of $(0.02) Note: Diluted earnings were $1.05 and $(0.24) per share for the three months ended December 31, 2016 and 2015, respectively. See 2016 Retroactively Adjusted EPS by Quarter in Appendix for impacts related to the new accounting update February 21, 2017 2

Full Year 2016 Earnings Summary 2016 2015 Variance Key SCE EPS Drivers Revenue 5,6 $0.41 Basic Earnings Per Share (EPS) 1 - CPUC – Escalation 0.35 SCE $4.22 $3.06 $1.16 - CPUC – GRC return on pole loading rate base 0.05 EIX Parent & Other (0.23) (0.04) (0.19) - CPUC – Other (0.06) - FERC revenue and other 0.07 Discontinued Operations 0.03 0.11 (0.08) Lower O&M 0.09 Basic EPS $4.02 $3.13 $0.89 Higher depreciation (0.16) Less: Non-Core Items Higher net financing costs (0.11) Income taxes 5,6 (0.23) SCE 2 $  $(1.14) $1.14 - 2015 change in uncertain tax positions (0.31) EIX Parent & Other 3 0.02 0.06 (0.04) - Higher tax benefits 0.08 Discontinued Operations 4 0.03 0.11 (0.08) Other 0.02 Total Non-Core Items $0.05 $(0.97) $1.02 - Property and other taxes (0.04) - Other income and expenses 0.06 Core Earnings Per Share (EPS) 1 Total core drivers $0.02 SCE $4.22 $4.20 $0.02 Non-core items 2 1.14 EIX Parent & Other (0.25) (0.10) (0.15) Total $1.16 Core EPS 1 $3.97 $4.10 $(0.13) Key EIX EPS Drivers EMG – Sold portfolio in 2015, income taxes and other $(0.08) EEG – Buyout of an earn-out provision, higher (0.07) development and operating costs and other Total core drivers $(0.15) Non-core items 3,4 (0.12) 1. See Earnings Non-GAAP Reconciliations and Use of Non-GAAP Financial Measures in Appendix 2. See SCE Core EPS Non-GAAP reconciliation in Appendix Total $(0.27) 3. Impact includes hypothetical liquidation at book value (HLBV) and sale of affordable housing portfolio 4. Impact related to the resolution of tax issues and other impacts related to the EME bankruptcy settlement 5. Excludes revenue and income taxes for incremental tax repair deductions and pole loading program-based cost of removal of $0.15 and $(0.24) of refunds to customers for incremental tax benefits related to 2012 - 2014 repair deductions 6. Excludes San Onofre revenue of $0.08, which was offset by income taxes of $(0.11), depreciation expense of $0.01, property taxes of $0.01 and interest expense of $0.01 Note: Diluted earnings were $3.97 and $3.10 per share for the twelve months ended December 31, 2016 and 2015, respectively February 21, 2017 3

2016 Core Earnings vs. Guidance Reconciliation SCE $4.22 SCE $4.18 EIX Parent & $0.06 $0.02 EIX Parent & Other $(0.25) $0.01 Other $(0.27) ($0.03) Total • O&M and Total $3.97 Financing $3.91 Benefits $0.07 • Energy Efficiency Award ($0.01) November 2, Additional FERC Productivity & Income Taxes & EIX Parent & 2016 Core EPS 2016 Rate Base Financing Other Other Guidance Benefits Midpoint SCE Note: See Earnings Non-GAAP Reconciliations and Use of Non-GAAP Financial Measures in Appendix February 21, 2017 4

2017 EIX Earnings Per Share Guidance 2017 Earnings Per Share Guidance as of February 21, 2017 Key Assumptions SCE authorized rate base $26.2 billion Low Mid High • Energy efficiency earnings $0.03 per SCE $4.39 • share EIX Parent & Other (0.25) Authorized CPUC capital structure - 48% EIX Basic EPS $4.04 $4.14 $4.24 • equity and 10.45% ROE Less: Non-Core Items - - - FERC ROE of 10.5% EIX Core EPS $4.04 $4.14 $4.24 • No change in tax policy • 2017 Core Earnings Per Share Guidance – 325.8 million common shares • Building from SCE Rate Base MHI arbitration decision not included • (0.25) 0.34  Legal costs are expensed as core as $4.14 $4.05 they are incurred  SCE’s share of any award, if any, • O&M and • Holding financing Company - would first be used to recover the benefits - ($0.17) previously recorded expenses, and $0.31 • Edison Energy • Energy Group - ($0.08) will be recorded as core efficiency -  Balance would be treated as non-core $0.03 SCE 2017 EPS from SCE Variances EIX Parent EIX 2017 Core EPS Rate Base Forecast & Other Midpoint Guidance February 21, 2017 5