Powering Growth 2014 RESULTS AND EARNINGS GUIDANCE 2.25.15
2014 Results and Earnings Guidance Cautionary Statements Regulation G Statement In this presentation, Ameren has presented free cash flow, which is a non-GAAP measure. Ameren calculates free cash flow by subtracting its cash flows from investing activities (which include capital expenditures), dividends on common stock, and dividends paid to noncontrolling interest holders from its cash flows from operating activities. Ameren uses free cash flow internally and when communicating with analysts and investors to measure its ability to generate cash. Forward-looking Statements Statements in this presentation not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions, and financial performance. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Ameren is providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. In addition to factors discussed in this presentation, Ameren’s Annual Report on Form 10 -K for the year ended December 31, 2013, and its other reports filed with the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934 contain a list of factors and a discussion of risks which could cause actual results to differ materially from management expectations suggested in such “forward - looking” statements. All “forward - looking” statements included in this presentation are based upon information presently available, and Ameren, except to the extent required by the federal securities laws, undertakes no obligation to update or revise publicly any “forward - looking” statements to reflect new information or current events. Earnings Guidance In this presentation, Ameren has presented earnings guidance and growth expectations. The guidance assumes normal temperatures for 2015 and, along with the growth expectations, is subject to the effects of, among other things, changes in 30-year U.S. Treasury bond yields; regulatory decisions and legislative actions; energy center and energy delivery operations; energy, economic, capital and credit market conditions; severe storms; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward- looking Statements section of this presentation and in Ameren’s periodic reports filed with the S ecurities and Exchange Commission. 2
Business Update Warner Baxter Chairman, President and Chief Executive Officer Ameren Corp .
2014 Results and Earnings Guidance 2014 Earnings Summary 2014 vs. 2013 Diluted EPS 1 Strong 2014 earnings growth primarily driven by: • Increased Illinois electric delivery and FERC 2 -regulated electric transmission earnings under formula ratemaking $2.40 – Driven by infrastructure investments made to serve customers $2.10 • Increased rates for Illinois natural gas delivery effective Jan. 2014 – Driven by infrastructure investments and costs to serve customers • Decreased interest charges • Substantial elimination of parent company costs previously allocated to divested merchant generation business • Absence, in 2014, of Missouri fuel adjustment clause- related charge in 2013 2013 2014 1 Earnings per share from continuing operations. 2 Federal Energy Regulatory Commission. 4
2014 Results and Earnings Guidance Executing Our Strategy in 2014 • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks – Invested more than $1 billion in FERC-regulated electric transmission and Illinois electric and natural gas delivery infrastructure – Successfully completed key Missouri infrastructure projects in a timely fashion – Achieved constructive outcome in Illinois electric delivery formula rate case – Relentlessly focused on operational improvement and disciplined cost management • Enhancing regulatory frameworks and advocating for responsible energy policies – Illinois General Assembly passed legislation extending electric formula rates by two years through 2019 • Legislation submitted to Governor – Aggressively advocated for pragmatic solutions to mitigate rate impacts and reliability risks of EPA’s 1 proposed Clean Power Plan • Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders – Filed updated Missouri Integrated Resource Plan that supports investment in a cleaner, more fuel- diverse generation portfolio – Identified additional transmission investment opportunities – Continue to move forward on Illinois Modernization Action Plan 1 U.S. Environmental Protection Agency 5
2014 Results and Earnings Guidance Executing Our Strategy in 2014 Delivered positive results for both customers and shareholders • Operating results – Solid safety performance – Strong electric distribution system reliability – Continued solid base load energy center performance – Electric rates remained well below regional and national averages – Improved customer satisfaction • Financial results – Strong earnings growth – Earned higher return on average common equity – Increased dividend – Maintained financial strength and flexibility 6
2014 Results and Earnings Guidance 2015 Earnings Guidance 2014 vs. 2015 Diluted EPS Expect solid 2015 earnings growth primarily driven by: $2.65 1 • Increased investment in FERC-regulated $2.40 $2.45 electric transmission and Illinois electric delivery infrastructure under formula ratemaking • Absence of Callaway refueling and maintenance outage • Higher Missouri electric service rates • Continued disciplined cost management 2014 2015E 2015 Diluted EPS Guidance Range of $2.45 to $2.65 1 Weather-normalized 2014 EPS were ~$2.37 per share. See pg. 13 for estimated impact of weather in 2014. 7
2014 Results and Earnings Guidance Executing Our Strategy in 2015 Key Focus Areas: FERC-regulated electric transmission • Advance existing projects, including Illinois Rivers • Pursue additional projects that enhance reliability, safety and efficiency • Working for constructive outcome in MISO 1 ROE 2 complaint cases; FERC approved ROE adder of up to 50 basis points for RTO participation effective Jan. 6, 2015 Illinois electric and natural gas delivery • Execute Illinois infrastructure Modernization Action Plan • Advocate for legislation extending Illinois formula rates • Successfully advance Illinois gas delivery rate increase request • Begin use of Illinois gas infrastructure rider Missouri • Achieve constructive outcome in Missouri electric rate case • Advocate for modernized regulatory framework to support upgrading of infrastructure • Gain approval of 2016-2018 Missouri energy efficiency plan Ameren-wide • Advocate for responsible energy policies, including EPA carbon emission rules • Relentlessly improve operating performance, including disciplined cost management 1 Midcontinent Independent System Operator. 2 Return on Equity. 8
2014 Results and Earnings Guidance Long-Term Total Return Outlook • Reaffirm 7% to 10% compound annual EPS growth 2014 to 2019E Regulated 5-Yr Rate from 2013 through 2018 1 Infrastructure Base – Primarily driven by strong rate base growth Rate Base 2 CAGR 4 – Outlook accommodates range of Treasury rates, sales $15.5 6% growth, spending levels and regulatory developments $1.5 6% • Expect solid 6% compound annual rate base growth $11.5 $3.0 27% from 2014 through 2019 driven by: ($ Billions) $1.1 $0.9 – Strong pipeline of investments to benefit customers and $3.0 5% $2.3 shareholders – Allocation of discretionary capital to regulatory frameworks with fair, predictable and timely cost 2% $8.0 recovery $7.2 – Particular focus on reliability, efficiency and safety projects at FERC-regulated electric transmission and Modernization Action Plan at Illinois electric and gas 2014 2019E '14-'19E delivery businesses Ameren Illinois Gas Delivery 3 • FERC-Regulated Transmission Continue to deliver a solid dividend Ameren Illinois Electric Delivery Ameren Missouri 1 From continuing operations. 2 Reflects year-end rate base except for FERC-regulated transmission, which is average rate base. Includes construction work in progress for Ameren Transmission Company of Illinois’ (ATXI) projects . 3 Ameren Illinois and ATXI. Excludes Ameren Missouri transmission, which is included in bundled Missouri rates. 4 Compound annual growth rate. 9
Marty Lyons Executive Vice President and Chief Financial Officer, Ameren Corp. Financial and Regulatory Update
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