Sempra Energy Financial Overview slide image

Sempra Energy Financial Overview

Parent & Other Three months ended December 31, Years ended December 31, (Dollars in millions) 2022 2021 2022 2021 (Unaudited) Parent & Other GAAP Losses $ (106) $ (210) $ (466) $ (436) Impact from Foreign Currency and Inflation on our Monetary Positions in Mexico and Associated Undesignated Derivatives 2 1 Costs Associated with Early Redemptions of Debt 92 Net Income Tax Expense Related to the Utilization of a Deferred Income Tax Asset 22 92 Deferred Income Tax Expense Associated with the Change in our Indefinite Reinvestment Assertion Related to the Sale of NCI to ADIA 72 120 72 Earnings from Investment in RBS Sempra Commodities LLP Parent & Other Adjusted Losses¹ (50) $ (106) $ (46) $ (344) $ (321) Q4-2022 losses are higher than Q4-2021 adjusted losses primarily due to: · $26M gain on the sale of PXISE in December 2021, • $22M higher income tax expense from the interim period application of an annual forecasted consolidated ETR, and • $16M lower net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation obligations, partially offset by $16M higher income tax benefit from changes to a valuation allowance against certain tax credit carryforwards FY-2022 adjusted losses are higher than FY-2021 adjusted losses primarily due to: $50M net investment losses in 2022 compared to $29M net investment gains in 2021 on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation obligations, and $26M gain on the sale of PXISE in December 2021, partially offset by $19M lower preferred dividends due to the mandatory conversion of all series B preferred stock in July 2021 1. See Appendix for information regarding Adjusted Losses, which represents a non-GAAP financial measure. SEMPRA 26
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