Sempra Energy Financial Highlights Q2-2022 slide image

Sempra Energy Financial Highlights Q2-2022

ADJUSTED EARNINGS AND ADJUSTED EPS (UNAUDITED) Sempra Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, NCI) in 2022 and 2021 as follows: In the three months ended June 30, 2022: . $(32)M from impacts associated with Aliso Canyon natural gas storage facility litigation related to property developer claims at Southern California Gas Company (SoCalGas) $(16)M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives $(19)M net unrealized losses on commodity derivatives In the three months ended June 30, 2021: $(72)M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives $(58)M net unrealized losses on commodity derivatives $50M equity earnings from investment in RBS Sempra Commodities LLP, which represents a reduction to an estimate of our obligations to settle pending value added tax (VAT) matters and related legal costs at our equity method investment at Parent and other In the six months ended June 30, 2022: • $(98)M from impacts associated with Aliso Canyon natural gas storage facility litigation related to property developer claims, four out of five of which were settled in the first quarter of 2022, at SoCalGas $(91)M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives • $(70)M net unrealized losses on commodity derivatives $(120)M deferred income tax expense associated with change in our indefinite reinvestment assertion as a result of progress in obtaining regulatory approvals necessary to close the sale of NCI to Abu Dhabi Investment Authority (ADIA) In the six months ended June 30, 2021: • • $(69)M impact from foreign currency and inflation on our monetary positions in Mexico and associated undesignated derivatives $(87)M net unrealized losses on commodity derivatives $50M equity earnings from investment in RBS Sempra Commodities LLP, which represents reduction to estimate of our obligations to settle pending VAT matters and related legal costs at our equity method investment at Parent and other Sempra Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation effects on our monetary positions in Mexico and associated undesignated derivatives and unrealized gains and losses on commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra's business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP. SEMPRA 23
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