Evergy, Inc. (NASDAQ:EVRG) Q2 2021 Results Earnings Conference Call August 5, 2021 8:00 AM ET Company Participants Lori Wright - Vice President, Corporate Planning, Investor Relations & Treasurer David Campbell - President & Chief Executive Officer Kirk Andrews - Executive Vice President & Chief Financial Officer Conference Call Participants Michael Lapides - Goldman Sachs Operator Thank you for standing by. And welcome to the Second Quarter 2021 Evergy, Inc. Earnings Conference Call. At this time, all part ...

[Part I - Financial Information](index=8&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements and combined notes for Evergy, Evergy Kansas Central, and Evergy Metro as of June 30, 2021 [Evergy, Inc. Financial Statements](index=8&type=section&id=Evergy%2C%20Inc.%20Financial%20Statements) Presents Evergy, Inc.'s unaudited consolidated financial statements for the three and six months ended June 30, 2021 and 2020 Evergy, Inc. Key Financial Data (Unaudited) | Financial Metric | June 30, 2021 (millions) | December 31, 2020 (millions) | | :--- | :--- | :--- | | **Balance Sheet** | | | | Total Assets | $28,008.8 | $27,114.8 | | Total Liabilities | $19,031.7 | $18,396.3 | | Total Equity | $8,977.1 | $8,718.5 | | **Income Statement (YTD)** | **June 30, 2021** | **June 30, 2020** | | Operating Revenues | $2,848.1 | $2,301.4 | | Net Income Attributable to Evergy, Inc. | $376.9 | $202.8 | | Diluted EPS | $1.65 | $0.89 | [Evergy Kansas Central, Inc. Financial Statements](index=14&type=section&id=Evergy%20Kansas%20Central%2C%20Inc.%20Financial%20Statements) Presents Evergy Kansas Central, Inc.'s unaudited consolidated financial statements for the three and six months ended June 30, 2021 and 2020 Evergy Kansas Central, Inc. Key Financial Data (Unaudited) | Financial Metric | June 30, 2021 (millions) | December 31, 2020 (millions) | | :--- | :--- | :--- | | **Balance Sheet** | | | | Total Assets | $12,962.1 | $12,589.1 | | Total Liabilities | $8,420.6 | $8,308.3 | | Total Equity | $4,541.5 | $4,280.8 | | **Income Statement (YTD)** | **June 30, 2021** | **June 30, 2020** | | Operating Revenues | $1,499.6 | $1,130.9 | | Net Income Attributable to Evergy Kansas Central, Inc. | $254.7 | $11.9 | [Evergy Metro, Inc. Financial Statements](index=19&type=section&id=Evergy%20Metro%2C%20Inc.%20Financial%20Statements) Presents Evergy Metro, Inc.'s unaudited consolidated financial statements for the three and six months ended June 30, 2021 and 2020 Evergy Metro, Inc. Key Financial Data (Unaudited) | Financial Metric | June 30, 2021 (millions) | December 31, 2020 (millions) | | :--- | :--- | :--- | | **Balance Sheet** | | | | Total Assets | $9,025.4 | $8,915.8 | | Total Liabilities | $6,144.6 | $6,156.6 | | Total Equity | $2,880.8 | $2,759.2 | | **Income Statement (YTD)** | **June 30, 2021** | **June 30, 2020** | | Operating Revenues | $954.9 | $799.8 | | Net Income | $121.6 | $128.5 | [Combined Notes to Unaudited Consolidated Financial Statements](index=24&type=section&id=Combined%20Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations for the Evergy Companies' consolidated financial statements, including accounting policies, regulatory matters, and commitments - The February 2021 winter weather event resulted in Evergy incurring **$349.5 million** in net natural gas and purchased power costs. These costs were primarily deferred to regulatory assets for future recovery from customers[97](index=97&type=chunk)[99](index=99&type=chunk)[101](index=101&type=chunk) - In February 2021, Evergy entered into a securities purchase agreement with an affiliate of Bluescape, selling **2,269,447 shares** of common stock for approximately **$113.2 million** and issuing a warrant to purchase up to **3,950,000 additional shares**[211](index=211&type=chunk) - In May 2020, Kansas exempted certain public utilities, including Evergy Kansas Central and Evergy Metro, from state corporate income tax starting in 2021. This led to a revaluation of deferred income tax assets and liabilities, resulting in a net decrease of **$233.8 million** in Evergy's net deferred income tax liabilities[221](index=221&type=chunk)[222](index=222&type=chunk) - In April 2021, Evergy Missouri West issued **$500.0 million** in Senior Notes, and Evergy redeemed its **$350.0 million** of 4.85% Senior Notes[156](index=156&type=chunk)[157](index=157&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results for Evergy, Evergy Kansas Central, and Evergy Metro, covering key events, strategic initiatives, and operational performance [Evergy, Inc. MD&A](index=53&type=section&id=Evergy%2C%20Inc.%20MD%26A) Provides an overview of Evergy, Inc.'s performance, detailing financial impacts from the winter event, strategic investments, and drivers of earnings and cash flow changes - The February 2021 winter weather event led to **$349.5 million** in net fuel and purchased power costs, largely deferred for future recovery, and generated **$95.0 million** in non-regulated energy marketing margins[236](index=236&type=chunk)[240](index=240&type=chunk) - Evergy announced a revised goal to achieve net-zero carbon emissions by **2045**, with an interim goal of a **70% reduction** in CO2 emissions from 2005 levels by **2030**[243](index=243&type=chunk) Evergy, Inc. Earnings Summary (YTD June 30) | Metric | 2021 (millions) | 2020 (millions) | Change (millions) | | :--- | :--- | :--- | :--- | | Net Income Attributable to Evergy, Inc. | $376.9 | $202.8 | $174.1 | | Diluted EPS | $1.65 | $0.89 | $0.76 | - YTD utility gross margin increased by **$132.3 million**, primarily driven by **$95.0 million** in non-regulated energy marketing margins from the winter event, higher retail sales from weather and demand, and increased transmission revenue[274](index=274&type=chunk) - YTD operating and maintenance expense decreased by **$25.5 million**, mainly due to lower voluntary severance costs, reduced advisor expenses, and lower credit loss expense compared to 2020[278](index=278&type=chunk) Evergy, Inc. Cash Flow Summary (YTD June 30, in millions) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Operating Activities | $224.6 | $522.5 | | Investing Activities | $(918.2) | $(601.2) | | Financing Activities | $607.1 | $231.7 | [Evergy Kansas Central, Inc. MD&A](index=64&type=section&id=Evergy%20Kansas%20Central%2C%20Inc.%20MD%26A) Analyzes Evergy Kansas Central, Inc.'s financial results, highlighting significant net income increase driven by utility gross margin and favorable income tax impacts Evergy Kansas Central, Inc. Results of Operations (YTD June 30, in millions) | Metric | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $1,499.6 | $1,130.9 | $368.7 | | Income from Operations | $360.8 | $235.7 | $125.1 | | Net Income Attributable to Evergy Kansas Central, Inc. | $254.7 | $11.9 | $242.8 | - YTD utility gross margin increased by **$158.0 million**, driven by **$95.0 million** in non-regulated energy marketing margins from the February winter event and a **$33.9 million** increase at its non-regulated share of the Jeffrey Energy Center[308](index=308&type=chunk) - YTD operating and maintenance expense increased by **$22.1 million**, primarily due to higher administrative costs billed from Evergy Metro, increased plant maintenance outage costs, and costs related to the winter event, partially offset by lower severance expenses[309](index=309&type=chunk) - YTD income tax expense decreased by **$103.6 million**, mainly due to a **$109.0 million** decrease from the 2020 revaluation of deferred taxes related to the Kansas tax rate change and a **$13.4 million** decrease from the new tax exemption, partially offset by higher pre-tax income[314](index=314&type=chunk) [Evergy Metro, Inc. MD&A](index=67&type=section&id=Evergy%20Metro%2C%20Inc.%20MD%26A) Analyzes Evergy Metro, Inc.'s financial results, noting a slight net income decrease due to utility gross margin and increased income tax expense Evergy Metro, Inc. Results of Operations (YTD June 30, in millions) | Metric | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $954.9 | $799.8 | $155.1 | | Income from Operations | $202.3 | $176.2 | $26.1 | | Net Income | $121.6 | $128.5 | $(6.9) | - YTD utility gross margin decreased by **$7.2 million**, primarily due to an **$11.4 million** negative impact from jurisdictional allocation differences in its fuel recovery mechanisms related to the February 2021 winter event[321](index=321&type=chunk) - YTD operating and maintenance expense decreased by **$29.3 million**, mainly due to lower voluntary severance expenses (**$9.1 million**), reduced administrative costs (**$7.8 million**), and lower credit loss expense (**$4.4 million**)[324](index=324&type=chunk) - YTD income tax expense increased by **$37.2 million**, primarily driven by a **$32.2 million** increase related to the 2020 revaluation of deferred taxes from the Kansas tax rate change[327](index=327&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Confirms no material changes to market risk disclosures since the 2020 Form 10-K, directing readers to that report for full details - There have been no material changes in market risk from the disclosures in the 2020 Form 10-K[330](index=330&type=chunk) [Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures for all Evergy entities, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures for Evergy, Inc., Evergy Kansas Central, Inc., and Evergy Metro, Inc. were effective at a reasonable assurance level as of June 30, 2021[331](index=331&type=chunk)[333](index=333&type=chunk)[335](index=335&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the internal control over financial reporting for any of the registrants[332](index=332&type=chunk)[334](index=334&type=chunk)[337](index=337&type=chunk) [Part II - Other Information](index=71&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The Evergy Companies are involved in various lawsuits and regulatory proceedings, with details referenced in Notes 4 and 10 of the financial statements - Information regarding material lawsuits and regulatory proceedings is located in Notes 4 (Rate Matters and Regulation) and 10 (Commitments and Contingencies) of the consolidated financial statements[339](index=339&type=chunk) [Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) Confirms no material changes to previously disclosed risk factors in the 2020 Form 10-K, which remain applicable to all Evergy entities - There have been no material changes to the risk factors discussed in the 2020 Form 10-K for Evergy, Evergy Kansas Central, and Evergy Metro[340](index=340&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Evergy's Q2 2021 equity security purchases, primarily for withholding taxes on restricted stock units, not a buyback plan Issuer Purchases of Equity Securities (Q2 2021) | Month | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | May 1 - 31 | 1,241 | $62.12 | | June 1 - 30 | 9,385 | $62.15 | | **Total** | **10,626** | **$62.15** | - The shares purchased were for withholding taxes related to the vesting of restricted stock units[342](index=342&type=chunk) [Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults on its senior securities during the reporting period - None[343](index=343&type=chunk) [Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[344](index=344&type=chunk) [Other Information](index=72&type=section&id=Item%205.%20Other%20Information) Provides access information for SEC filings and other material financial information on the SEC and company investor relations websites - SEC filings and other material financial information are available on the SEC website and the Investor Relations section of the company's website, www.evergy.com[346](index=346&type=chunk)[347](index=347&type=chunk) [Exhibits](index=73&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including key agreements, certifications, and interactive data files - Exhibits filed include agreements related to the April 2021 Note Purchase Agreement and the April 2021 Registration Rights Agreement and Warrant with BEP Special Situations V LLC (an affiliate of Bluescape)[349](index=349&type=chunk) - Certifications by the CEO and CFO pursuant to Rule 13a-14(a)/15d-14(a) and Section 1350 are included for Evergy, Evergy Metro, and Evergy Kansas Central[349](index=349&type=chunk)

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for Q1 2021 were $0.55, up from $0.41 in Q1 2020, driven by favorable weather, income tax benefits, and higher other income [7][41] - The company reaffirmed its 2021 adjusted EPS guidance of $3.20 to $3.40 per share and targeted long-term annual EPS growth of 6% to 8% from 2019 through 2024 [8][39] Business Line Data and Key Metrics Changes - The power marketing business achieved unusually high gross margins during the February weather event, contributing approximately $0.41 per share to pre-tax earnings, which was excluded from adjusted EPS [13][41] - Weather-normalized retail sales increased by 1.1% in Q1 2021, with residential sales up 3.2% and industrial sales up 2.9%, while commercial sales declined by 1.5% [45][46] Market Data and Key Metrics Changes - The company experienced its 40th consecutive quarter of customer growth, with total customers increasing by 1% compared to Q1 2020 [48] - National unemployment rates have declined, with Kansas City metro area unemployment landing at around 4.2%, below the national average of 6.2% [48] Company Strategy and Development Direction - The company is focused on a balanced strategic plan that emphasizes reliability, affordability, and sustainability, with a phased approach to adding renewables and retiring coal plants [19][34] - The Integrated Resource Plan (IRP) reflects a commitment to reducing carbon emissions by 70% by 2030 and achieving net zero carbon emissions by 2045 [36][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of the February extreme weather event on costs and emphasized the importance of balancing reliability with the transition to renewables [9][32] - The company plans to retire the last two units at the Lawrence Energy Center by late 2023 and add 700 megawatts of utility-scale solar, consistent with its Sustainability Transformation Plan [30][31] Other Important Information - The company is actively pursuing regulatory mechanisms to recover costs associated with the extreme weather event, including accounting authority orders in Kansas and Missouri [10][11] - Securitization legislation is under review in Missouri, which could provide a beneficial cost recovery approach [12][25] Q&A Session Summary Question: Anticipated pushback from customer groups regarding Missouri IRP - Management believes the IRP reflects a balanced approach focusing on rates, reliability, and sustainability, with a phased addition of renewables [54] Question: Opportunities for transmission spend and partnerships - Management sees incremental opportunities for transmission and has an existing partnership with AEP, evaluating potential projects like the Greenbelt D.C. line [62][65] Question: Differences between competing securitization bills in Missouri - Management indicated that the bills are similar with no significant differences, and they are optimistic about the outcome [78][79] Question: Potential size of securitization related to the Lawrence plant - The anticipated securitization amount related to the Lawrence plant retirement is about $350 million [84] Question: Timeline for the STP process in Kansas - The STP process is informational, with the next steps including filing responsive comments and holding a workshop in late May [90] Question: Impact of the February weather event on the IRP - Management noted that the event reinforced the need for a balanced approach to reliability and sustainability, with ongoing evaluations of the IRP [92][95]

First Quarter 2021 Earnings Call May 6, 2021 %evergy. Important Information Forward Looking Statements Statements made in this presentation that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to our strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______to_______ Exact name of registrant as specified in its charter, | --- | --- | --- | |---------------------------------|------------------------- ...

Fourth Quarter 2020 Earnings Call February 26, 2021 %evergy Public Important Information Statements made in this presentation that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to our strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital investment go ...

Evergy, Inc. (NASDAQ:EVRG) Q4 2020 Earnings Conference Call February 26, 2021 8:00 AM ET Company Participants Lori Wright - VP, Corporate Planning, IR & Treasurer David Campbell - President, CEO & Director Kirkland Andrews - EVP & CFO Conference Call Participants Shahriar Pourreza - Guggenheim Securities Dariusz Lozny - Bank of America Merrill Lynch Michael Lapides - Goldman Sachs Group Paul Patterson - Glenrock Associates Charles Fishman - Morningstar Operator Ladies and gentlemen, thank you for standing b ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______to_______ | --- | --- | --- | |---------------------------------|------------------------------------------------------------------------------------ ...

Investor Update December 2020 %evergy Important Information Forward Looking Statements Statements made in this presentation that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to our strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital investment goal ...

Investor Update November 2020 %evergy. Important Information Forward Looking Statements Statements made in this presentation that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to our strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital investment goa ...