Fourth Quarter 2023 Earnings Review and Business Update slide image

Fourth Quarter 2023 Earnings Review and Business Update

Earnings Contribution Percentage The materials for Duke Energy's Fourth Quarter Earnings Review and Business Update on February 8, 2024, reference each segment's 2024 projected adjusted segment income as a percentage of the total projected 2024 adjusted EPS midpoint of approximately $5.98 (i.e., earnings contribution), excluding the impact of Other. Duke Energy's segments are comprised of Electric Utilities and Infrastructure and Gas Utilities and Infrastructure. Adjusted segment income is a non-GAAP financial measure, as it represents reported segment income adjusted for special items as discussed above. Due to the forward-looking nature of any forecasted adjusted segment income, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items (as discussed above under Adjusted EPS Guidance). Dividend Payout Ratio The materials for Duke Energy's Fourth Quarter Earnings Review and Business Update on February 8, 2024, include a discussion of Duke Energy's long-term target dividend payout ratio. This payout ratio is a non-GAAP financial measure as it is based upon forecasted basic EPS from continuing operations available to Duke Energy Corporation stockholders, adjusted for the per-share impact of special items, as discussed above under Adjusted EPS. The most directly comparable GAAP measure for adjusted EPS is reported basic EPS available to Duke Energy Corporation common stockholders. Due to the forward-looking nature of this non-GAAP financial measure for future periods, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items, as discussed above under Adjusted EPS Guidance. Base O&M The materials for Duke Energy's Fourth Quarter Earnings Review and Business Update on February 8, 2024, include a discussion of Duke Energy's Base operations, maintenance and other expenses (O&M). Base O&M is a non-GAAP financial measure, as it represents reported O&M expenses adjusted for special items and expenses recovered through riders and excludes O&M expenses for Duke Energy's non-regulated electric products and services supporting regulated operations. Management believes the presentation of Base O&M provides useful information to investors, as it provides a meaningful strategic financial information. The most directly comparable GAAP financial measure for Base O&M is reported operating, maintenance and other expenses.
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