I have to do a valuation of these companies whose stock symbols are AEP and AMT. I have a model but not sure what I am doing wrong. Please help me and explain how you came to the final valuation. I have attached what I have. I got the financials from Morningstar.com

AMERICAN ELECTRIC POWER CO INC (AEP) Core Financial Statements Quarterly IS Income Statement Balance Sheet Cash Flows Supporting Financial Modeling Schedules Debt Working Capital Depreciation Schedule Amortization Schedule Shareholder's Equity Shares Oustanding Valuations DCF Valuation Option Value AMERICAN ELECTRIC POWER CO INC. (AEP) Quarterly Income Statement ($USD in Million Except Per Share Amounts) Revenue Cost of revenue Gross profit Operating expenses: Operation and Maintenance Depreciation and Amoritization Other Operating Expenses 31-Dec-14 2014 4,026 (1,507) 2,519 1,306 (488) (226) - Total operating expenses Income (loss) from operations (2,020) 499 Interest Expense Other income (expense) (223) 42 Income (Loss) before provision (benefit) for income taxes Income tax expenses Net income (loss) 318 (151) 191 Accretion of redeemable convertible preferred stock Dividends accrued on convertible preference shares Net Income attributable to common stockholders 191 Quarter Ended 30-Sep-15 31-Dec-15 2015 2015 31-Mar-15 2015 30-Jun-15 2015 4,708 3,942 4,432 (1,789) 2,919 (1,357) 2,585 1,040 (505) (250) 1,028 (506) (242) - ### 31-Mar-16 2016 30-Jun-16 2016 3,614 4,045 3,893 (1,686) 2,746 (1,276) 2,338 (1,407) 2,638 (1,310) 2,583 1,003 (535) (248) 1,151 (482) (240) 994 (497) (254) 954 (514) (249) - - - - (1,795) (1,776) (1,786) (1,872) (1,745) (1,717) 1,124 809 960 466 893 866 (223) 39 (224) 46 (221) 36 (215) 42 (217) 38 (225) 38 940 (333) 631 631 (225) 431 775 (275) 512 293 (93) 205 714 (236) 503 679 (165) 506 629 430 519 469 501 502 30-Sep-16 2016 4,652 (1,654) 2,998 1,057 (539) (2,529) (4,126) (1,128) (225) 29 (1,324) 534 (764) (766) AMERICAN ELECTRIC POWER CO INC (AEP) C (AEP) ($USD in Million Except Per Share Amounts) Dec-11 Historicals Dec-12 Dec-13 Revenue Total 15,116 14,945 15,357 Cost of revenue Gross profit (5,612) 9,504 (5,280) 9,665 (5,559) 9,798 Operating expenses: Operation and Maintenance Depreciation and Amoritization Other Operating Expeneses (4,104) (1,655) (4,077) (1,782) (4,083) (1,743) Total operating expenses (5,759) (5,859) (5,826) 3,745 3,806 3,972 933 906 63% 988 885 76% 906 874 74% Income / Loss before provision (benefit) for income taxes Income tax expenses 2,490 818 2,623 (604) 362 (684) Net income (loss) Net income (loss) from continuing operations Net income (loss) from discontinuing ops 1,946 1,949 - 1,259 1,262 - 1,480 1,484 - Accretion of redeemable convertible preferred stock Dividends accrued on convertible preference shares Net income/loss attributable to common stockholders 1,941 1,259 1,480 EBITDA Income from Operations Add: Share-based compensation expense Add: D&A Adjusted EBITDA 1655 5,092 1782 4,728 1743 4,890 Income (loss) from operations Other income (expense), net Interest Expense % of debt Growth Analysis and Drivers Revenue Revenue % yoy Total Revenue 15,116 14,945 -1% 14,945 15,357 3% 15,357 Cost of revenue % sales 5,612 37.1% 5,280 35.3% 5,559 36.2% Sales and marketing expenses % sales 4,104 27.2% 4,077 27.3% 4,083 26.6% Other Operating Expeneses % sales 1,655 10.9% 1,782 11.9% 1,743 11.3% Share based compensation expense % Sales Effective tax rates 122 0.8% 32.9% -23.0% -189.0% istoricals Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Forecasts Dec-19 Dec-20 17,020 16,453 16,828 17,212 17,605 18,006 18,546 19,103 19,676 (6,358) 10,662 (6,108) 10,345 (6,162) 10,666 (6,287) 10,925 (6,472) 11,132 (6,640) 11,366 (6,822) 11,725 (7,013) 12,089 (7,227) 12,448 (4,586) (1,929) (915) (4,029) (2,010) (973) (2,022) (1,532) - (2,034) (1,567) ### ### (2,045) (1,602) - (2,056) (1,639) - (2,080) (1,688) - (2,104) (1,739) - (2,128) (1,889) - (7,430) (7,012) (3,554) (3,601) (3,648) (3,695) (3,768) (3,843) (4,017) 3,232 3,333 7,112 7,325 7,485 7,671 7,956 8,246 8,431 143 883 63% 163 - 627 6,670 55% 565 6,822 55% 481 6,977 55% 396 7,136 55% 446 7,350 55% 503 7,571 55% 478 7,798 55% (942) (920) 14,409 Err:522 14,712 Err:522 14,943 Err:522 15,204 Err:522 15,754 Err:522 16,321 Err:522 16,708 Err:522 1,634 1,638 - 2,047 1,769 284 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 1,634 2,047 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 7,112 7,325 7,485 7,671 7,956 8,246 8,431 7,112 7,325 7,485 7,671 7,956 8,246 8,431 1929 5,304 2010 5,506 Dec-21 Dec-22 17,020 11% 17,020 16,453 -3% 16,453 16,828 2% 16,828 17,212 2% 17,212 17,605 2% 17,605 18,006 2% 18,006 18,546 3% 18,546 19,103 3% 19,103 19,676 3% 19,676 6,358 37.4% 6,108 37.1% 6,162.31 37% 6,287 37% 6,472 37% 6,640 37% 6,822 37% 7,013 37% 7,227 37% 1,929 11.3% 2,010 12.2% 2,022 12.0% 2,034 11.8% 2,045 11.6% 2,056 11.4% 2,080 11.2% 2,104 11.0% 2,128 10.8% 915 5.4% 973 5.9% 1,532 9.1% 1,567 9.1% 1,602 9.1% 1,639 9.1% 1,688 9.1% 1,739 9.1% 1,889 9.6% 102 0.6% -39 -0.2% (39.89) -0.2% (40.80) -0.2% (41.73) -0.2% (42.68) -0.2% (43.96) -0.2% (45.28) -0.2% (46.64) -0.2% #DIV/0! #DIV/0! Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Dec-23 20,266 (7,453) 12,813 (2,152) (1,946) (4,097) 8,716 461 8,032 55% 17,210 Err:522 Err:522 Err:522 Err:522 8,716 8,716 20,266 3% 20,266 7,453 37% 2,152 10.6% 1,946 9.6% (48.04) -0.2% Err:522 AMERICAN ELECTRIC POWER CO INC (AEP) Annual Balance Sheet ($USD in Million Except Per Share Amounts) ASSETS Current assets: Cash and cash equivalents Short-term investments Receivables Inventories Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Equity and other investments Goodwill Regulatory assets Other long-term assets Total assets LIABILITIES Current liabilities Short-term debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Total current liabilities Deferred taxes liabilities Pensions and other benefits Regulatory liabilities Minority interest Total liabilities Dec-11 221 294 1,885 1,292 165 325 4,182 55,670 -18,699 1,592 76 6,026 3,376 52,223 3,083 1,095 717 279 0 1,437 6,611 13,222 8,227 1,801 3,195 1 26,446 Preferred stock Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total equity Total liabilities + Shareholder's Equity %of sales Check ASSETS Current assets: Cash and cash equivalents Short-term investments Receivables Deferred income taxes Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Goodwill Intangible assets Deferred income taxes Other long-term assets Total assets 0 3,274 5,970 5,890 -470 14,664 29,328 55,774 369% 3,551 0% 1% 4% 2% 0% 1% 8% 107% -36% 3% 0% 12% 6% 100% LIABILITIES Current liabilities Short-term debt Capital leases Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities 6% 2% 1% 1% 0% 3% 12% 24% Long-term debt Deferred revenues Minority interest 15% 3% 6% Other long-term liabilities 0% Total liabilities 47% Preferred stock Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income 0% 6% 11% 11% -1% 26% 53% Total equity Total liabilities + Shareholder's Equity %of sales Check 100% 501% 1 Dec-12 Historicals Dec-13 Dec-14 Dec-15 proforma Dec-16 Dec-17 Forecasts Dec-18 279 324 1,871 1,519 241 355 4,589 118 353 1,860 1,423 246 310 4,310 163 386 1,926 1,325 278 400 4,478 176 387 1,640 1,339 172 357 4,071 171 410 2,175 1,632 260 412 5,060 175 419 2,225 1,669 266 421 5,175 179 429 2,275 1,707 272 431 5,293 57,454 -18,691 3,823 91 5,106 1,995 54,367 60,285 -19,288 4,305 91 4,376 2,335 56,414 64,305 -20,188 2,096 91 4,264 4,587 59,633 65,481 -19,348 2,106 52 5,140 4,178 61,680 71,414 -22,718 3,301 95 5,917 3,850 66,975 73,043 -23,236 3,376 97 6,052 3,937 68,503 74,709 -23,766 3,453 100 6,190 4,027 70,065 3,152 1,169 747 269 316 1,170 6,823 13,646 2,306 1,266 822 245 299 1,174 6,112 12,224 3,849 1,287 871 239 324 1,397 7,967 15,934 2,632 1,418 979 227 347 1,506 7,108 14,217 3,332 1,379 913 281 279 1,481 7,666 15,332 3,408 1,410 934 287 286 1,515 7,841 15,681 3,486 1,443 955 294 292 1,550 8,019 16,039 9,252 1,075 3,544 0 10,300 415 3,694 1 10,986 0 3,892 4 11,733 0 3,736 13 12,068 0 4,000 13 12,343 0 4,092 14 12,624 0 4,185 14 27,517 26,634 30,816 29,699 31,413 32,129 32,862 0 3,289 6,049 6,236 -337 15,237 30,474 0 3,303 6,131 6,766 -115 16,085 32,170 0 3,313 6,204 7,406 -103 16,820 33,640 0 3,324 6,296 8,398 -127 17,892 35,783 57,991 388% 3,624 58,804 383% 2,390 64,456 379% 4,823 65,482 398% 3,802 0 3,667 6,805 7,653 -264 17,861 35,722 67,135 Average 1% 1% 3% 3% 0% 1% 8% 0% 1% 3% 3% 0% 1% 8% 0% 1% 3% 2% 0% 1% 8% 0% 1% 3% 2% 0% 1% 7% 0% 1% 3% 2% 0% 1% 8% 106% -34% 7% 0% 9% 4% 100% 107% -34% 8% 0% 8% 4% 100% 108% -34% 4% 0% 7% 8% 100% 106% -31% 3% 0% 8% 7% 100% 107% -34% 5% 0% 9% 6% 100% 5% 2% 1% 0% 1% 2% 12% 24% 4% 2% 1% 0% 1% 2% 10% 21% 6% 2% 1% 0% 1% 2% 12% 25% 4% 2% 1% 0% 1% 2% 11% 22% 5% 2% 1% 0% 0% 2% 11% 23% 16% 2% 6% 18% 1% 6% 17% 0% 6% 18% 0% 6% 18% 0% 6% 0 3,751 6,960 7,828 -270 18,268 36,536 68,666 0 3,836 7,119 8,006 -276 18,685 37,370 70,232 0% 0% 0% 0% 0% 47% 45% 48% 45% 47% 0% 6% 10% 11% -1% 26% 53% 0% 6% 10% 12% 0% 27% 55% 0% 5% 10% 11% 0% 26% 52% 0% 5% 10% 13% 0% 27% 55% 100% 490% (1) 100% 603% 2 100% 520% 2 100% 564% - 0% 5% 10% 11% 0% 27% 53% 100% orecasts Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 183 438 2,327 1,746 278 441 5,414 189 452 2,397 1,799 286 454 5,576 195 465 2,469 1,853 295 467 5,744 200 479 2,543 1,908 304 481 5,916 206 494 2,619 1,965 313 496 6,093 76,413 -24,308 3,532 102 6,331 4,119 71,663 78,705 -25,037 3,638 105 6,521 4,243 73,813 81,067 -25,788 3,747 108 6,717 4,370 76,028 83,499 -26,562 3,859 111 6,918 4,501 78,309 86,003 -27,359 3,975 115 7,126 4,636 80,658 3,565 1,475 977 301 299 1,585 8,202 16,405 3,672 1,520 1,007 310 308 1,632 8,448 16,897 3,782 1,565 1,037 319 317 1,681 8,702 17,404 3,896 1,612 1,068 329 327 1,732 8,963 17,926 4,013 1,661 1,100 338 336 1,784 9,232 18,464 12,912 0 4,280 14 13,300 0 4,409 15 13,699 0 4,541 15 14,110 0 4,677 16 14,533 0 4,818 16 33,612 34,620 35,659 36,729 37,830 0 3,924 7,281 8,189 -283 19,111 38,222 71,834 0 4,041 7,500 8,435 -291 19,684 39,369 73,989 0 4,162 7,725 8,688 -300 20,275 40,550 76,208 0 4,287 7,956 8,948 -309 20,883 41,766 78,495 0 4,416 8,195 9,217 -318 21,510 43,019 80,850 AMERICAN ELECTRIC POWER CO INC (AEP) Annual Cash Flows Dec-11 Dec-12 Historicals Dec-13 Dec-14 Dec-15 1949 1792 0 139 794 0 -373 107 176 -44 193 0 66 -1011 1262 1918 0 300 636 0 0 -16 -224 -60 0 174 74 -260 1484 1874 0 226 709 0 0 5 122 95 0 85 -61 -433 1638 1929 144 0 878 0 0 -72 102 -80 0 4 174 -104 2052 2010 145 0 808 284 0 200 -39 16 0 120 -270 -578 Net cash provided by operating activities 3,788 3,804 4,106 4,613 4,749 CASH FLOWS FROM INVESTING ACTIVITIES: Investments in property, plant, and equipment Property, plant, and equipment reductions Acquisitions, net Purchases of investments Sales/Maturities of investments -106 0 -214 -1321 1387 -201 18 0 -1047 988 -3778 0 -32 -927 858 -4250 0 -65 -1088 1032 -4600 0 -5 -2283 2218 (2,636) (3,149) 61 (35) 106 0 2560 -2664 92 -64 -900 0 2881 -1754 83 0 -916 0 3224 -2700 84 0 -954 0 2067 -1900 73 0 -998 0 3437 -2497 82 0 -1059 ($USD in Million Except Per Share Amounts) CASH FLOWS FROM OPERATING ACTIVITIES: Net income Depreciation & amortization Amortization of debt discount/premium and issuance costs Investment/asset impairment charges Deferred income taxes (Gain) Loss from discontinued operations Extraordinary items Accounts receivable Inventory Accounts payable Accrued liabilities Income taxes payable Other working capital Other non-cash items Other investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Cash Flows From Financing Activities Debt issued Debt repayment Common stock issued Redemption of preferred stock Cash dividends paid CASH FLOWS FROM FINANCING ACTIVITIES: Net cash provided by (used for) financing activities Net change in cash Cash at beginning of period Cash at end of period Free Cash Flow -971 -355 -449 -162 -662 -73 58 -161 45 -477 294 221 279 118 162 221 279 118 163 -314 1,013 578 328 363 149 AMERICAN ELECTRIC POWER CO INC (AEP) CashFlowFlag INCOME STATEMENT Fiscal year ends in December. USD in millions except per share data. Revenue Cost of revenue Gross profit Operating expenses Operation and maintenance Depreciation and amortization Other operating expenses Total operating expenses Operating income Interest Expense Other income (expense) Income before income taxes Provision for income taxes Other income Net income from continuing operations Net income from discontinuing ops Other Net income Net income available to common shareholders Earnings per share Basic Diluted Weighted average shares outstanding Basic Diluted EBITDA 2014-06 2014-09 4044 4302 1516 1529 2528 2773 1100 443 218 1761 767 221 37 583 215 23 391 1108 507 233 1848 925 221 35 739 269 24 494 -1 390 390 -1 493 493 0.8 0.8 1.01 1.01 488 489 1247 489 489 1467 2014-12 2015-03 2015-06 2015-09 2015-12 2016-03 2016-06 2016-09 TTM 4026 4708 3942 4432 3614 4045 3893 4652 16205 1507 1789 1357 1686 1276 1407 1310 1654 5646 2519 2919 2585 2746 2338 2638 2583 2998 10558 1306 488 226 2020 499 223 42 318 151 25 192 1040 505 250 1795 1124 223 39 940 333 24 631 1028 506 242 1776 809 224 46 631 225 25 431 1151 482 240 1872 466 215 42 293 93 4 205 266 -1 469 469 994 497 254 1745 893 217 38 714 236 25 503 -1 430 430 1003 535 248 1786 960 221 36 775 275 12 512 8 -1 519 519 -1 191 191 -2 629 629 0.39 0.39 489 490 1029 1057 539 2529 4126 -1128 225 29 -1324 -534 25 -764 -2 501 501 954 514 249 1717 866 225 38 679 165 -7 506 -2 -2 502 502 -2 -766 -766 4157 2032 3272 9461 1098 883 147 362 -42 48 450 263 -6 707 707 1.29 1.29 0.88 0.88 1.06 1.06 0.95 0.95 1.02 1.02 1.02 1.02 -1.56 -1.56 1.43 1.43 490 490 1668 490 490 1427 491 491 1531 491 491 990 491 491 1428 491 492 1418 492 492 -559 491 491 3276 AMERICAN ELECTRIC POWER CO INC (AEP) CashFlowFlag INCOME STATEMENT Fiscal year ends in December. USD in millions except per share data. Revenue Cost of revenue Gross profit Operating expenses Operation and maintenance Depreciation and amortization Other operating expenses Total operating expenses Operating income Interest Expense Other income (expense) Income before income taxes Provision for income taxes Other income Net income from continuing operations Net income from discontinuing ops Other Net income Preferred dividend Net income available to common shareholders Earnings per share Basic Diluted Weighted average shares outstanding Basic Diluted EBITDA 2011-12 2012-12 15116 14945 5612 5280 9504 9665 4104 1655 963 6722 2782 933 518 2367 -818 -1236 1949 4077 1782 1150 7009 2656 988 154 1822 604 44 1262 -3 1946 5 1941 -3 1259 4.02 4.02 2.6 2.6 482 482 5092 485 485 4728 1259 2013-12 2014-12 2015-12 TTM 15357 17020 16453 16205 5559 6358 6108 5646 9798 10662 10345 10558 4083 1743 1117 6943 2855 906 161 2110 684 58 1484 4586 1929 915 7430 3232 885 143 2490 942 90 1638 -4 1634 4029 2010 973 7012 3334 874 163 2623 920 65 1769 284 -5 2047 4157 2032 3272 9461 1098 883 147 362 -42 48 450 263 -6 707 -4 1480 1480 1634 2047 707 3.04 3.04 3.34 3.34 4.17 4.17 1.43 1.43 487 487 4890 489 489 5304 490 491 491 491 5506 3276 AMERICAN ELECTRIC POWER CO INC (AEP) CashFlowFlag BALANCE SHEET Fiscal year ends in December. USD in millions except per share data. Assets Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Inventories Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Regulatory assets Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred taxes liabilities Pensions and other benefits Regulatory liabilities Minority interest Other long-term liabilities Total non-current liabilities Total liabilities stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income 2011-12 2012-12 221 294 515 1885 1292 165 325 4182 279 324 603 1871 1519 241 355 4589 55670 -18699 36971 1592 76 6026 3376 48041 52223 57454 -18691 38763 3823 91 5106 1995 49778 54367 3083 1095 717 279 3152 1169 747 269 316 1170 6823 1437 6611 15083 8227 1801 3195 1 2641 30948 37559 15586 9252 1075 3544 3274 5970 5890 -470 3289 6049 6236 -337 2850 32307 39130 Total stockholders' equity Total liabilities and stockholders' equity 14664 52223 15237 54367 2013-12 2014-12 2015-12 118 353 471 1860 1423 246 310 4310 163 386 549 1926 1325 278 400 4478 176 387 563 1640 1339 172 357 4072 60285 -19288 40997 4305 91 4376 2335 52104 56414 64305 -20188 44117 2096 91 4264 4587 55155 59633 65481 -19348 46133 2106 52 5140 4178 57611 61683 2306 1266 822 245 299 1174 6112 3849 1287 871 239 324 1397 7967 2632 1418 979 227 347 1506 7108 16828 10300 415 3694 1 2979 34217 40329 16181 10986 17741 11733 3892 4 3783 34846 42813 3736 13 3460 36683 43791 3303 6131 6766 -115 3313 6204 7406 -103 3324 6296 8398 -127 16085 56414 16820 59633 17892 61683 AMERICAN ELECTRIC POWER CO INC (AEP) Statement of CASH FLOW Fiscal year ends in December. USD in millions except per share data. Cash Flows From Operating Activities Net income Depreciation & amortization Amortization of debt discount/premium and issuance costs Investment/asset impairment charges Deferred income taxes (Gain) Loss from discontinued operations Extraordinary items Accounts receivable Inventory Accounts payable Accrued liabilities Income taxes payable Other working capital Other non-cash items Net cash provided by operating activities Cash Flows From Investing Activities Investments in property, plant, and equipment Property, plant, and equipment reductions Acquisitions, net Purchases of investments Sales/Maturities of investments Other investing activities Net cash used for investing activities Cash Flows From Financing Activities Debt issued Debt repayment Common stock issued Redemption of preferred stock Cash dividends paid Other financing activities Net cash provided by (used for) financing activities Net change in cash Cash at beginning of period Cash at end of period Free Cash Flow Operating cash flow Capital expenditure Free cash flow Supplemental schedule of cash flow data 2011-12 2012-12 1949 1792 1262 1918 139 794 300 636 -373 107 176 -44 193 -16 -224 -60 66 -1011 3788 -106 -214 -1321 1387 -2636 -2890 174 74 -260 3804 -201 18 -1047 988 -3149 -3391 2560 -2664 92 -64 -900 5 -971 -73 294 221 2881 -1754 83 3788 -2775 1013 3804 -3226 578 -916 -649 -355 58 221 279 2013-12 2014-12 2015-12 TTM 1484 1874 1638 1929 144 2052 2010 145 714 2032 153 226 709 878 808 284 233 263 5 122 95 -72 102 -80 200 -39 16 -23 -221 78 85 -61 -433 4106 4 174 -104 4613 120 -270 -578 4749 -204 -464 1699 4259 -3778 -4250 -4600 -4779 -32 -927 858 61 -3818 -65 -1088 1032 -35 -4406 -5 -2283 -3248 2218 3208 106 74 -4564 -4744 3224 -2700 84 2067 -1900 73 3437 2065 -2497 -1681 82 48 -954 -103 -449 -161 279 118 -998 596 -162 45 118 163 -1059 -1105 -624 705 -662 32 -477 -454 162 178 -314 -276 4106 -3778 328 4613 -4250 363 4749 4259 -4600 -4779 149 -520 AMERICAN ELECTRIC POWER CO INC (AEP) Working Capital ($USD in Million Except Per Share Amounts) Net Sales Cost of Sales Dec-11 Historicals Dec-12 Dec-13 15,116 5,612 14,945 5,280 15,357 5,559 Working Capital Balances Loan receivables, net Prepayments, receivables and other assets Total Non Cash Current Assets 2,210 2,210 2,226 2,226 1,860 2,170 4,030 Escrow money payable Accrued expenses, accounts payable and other liabilities Deferred revenue and customer advances Total Non-Debt Current Liabilities 279 717 1,437 2,433 269 747 1,170 2,186 245 822 1,174 2,241 (223) 40 1,789 (263) (1,749) Net Working Capital/ (Deficit) (Increase)/ Decrease in Working Capital Ratios & Assumptions Loan receivables, net % of Sales 1,860 12.1% Prepayments, receivables and other assets % of Sales 2,170 14.1% Escrow money payable % of COGS 245 4.4% Accrued expenses, accounts payable and other liabilities % of COGS 822 14.8% Deferred revenue and customer advances % of COGS 1,174 21.1% Historicals Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Forecasts Dec-19 Dec-20 17,020 6,358 16,453 6,108 16,828 6,162 17,212 6,287 17,605 6,472 18,006 6,640 18,546 6,822 1,926 2,326 4,252 1,640 1,997 3,637 1,677 2,587 4,264 1,716 2,244 3,960 1,755 2,259 4,013 1,795 2,352 4,146 1,849 2,407 4,255 239 871 1,397 2,507 227 979 1,506 2,712 244 913 1,328 2,485 240 934 1,466 2,639 248 986 1,495 2,729 257 995 1,489 2,741 262 1,025 1,583 2,870 1,745 925 1,779 1,321 1,284 1,406 1,385 44 820 (854) 459 37 (122) 20 1,926 11.3% 1,640 10.0% 1,677 10.0% 1,716 10.0% 1,755 10.0% 1,795 10.0% 1,849 10.0% 2,326 13.7% 1,997 12.1% 2,240 13.3% 2,244 13.0% 2,259 12.8% 2,352 13.1% 2,407 13.0% 239 3.8% 227 3.7% 244 4.0% 240 3.8% 248 3.8% 257 3.9% 262 3.8% 871 13.7% 979 16.0% 914 14.8% 934 14.9% 986 15.2% 995 15.0% 1,025 15.0% 1,397 22.0% 1,506 24.7% 1,328 21.5% 1,466 23.3% 1,495 23.1% 1,489 22.4% 1,583 23.2% s Dec-21 Dec-22 Dec-23 19,103 7,013 19,676 7,227 20,266 7,453 1,904 2,475 4,379 1,961 2,557 4,518 2,020 2,630 4,650 270 1,058 1,597 2,924 278 1,086 1,649 3,014 286 1,121 1,713 3,121 1,455 1,505 1,529 (70) (50) (24) 1,904 10.0% 1,961 10.0% 2,020 10.0% 2,475 13.0% 2,557 13.0% 2,630 13.0% 270 3.8% 278 3.8% 286 3.8% 1,058 15.1% 1,086 15.0% 1,121 15.0% 1,597 22.8% 1,649 22.8% 1,713 23.0% AMERICAN ELECTRIC POWER CO INC (AEP) Consolidated Depreciation and Capex WER CO INC (AEP) ($USD in Million Except Per Share Amounts) Net Sales Capital Expenditures Capital Expenditures as % of Net Sales Beginning Net PP&E Capital Expenditures (Depreciation Expense) (Asset Sales ) Ending Net PP&E Dec-11 15,116 (2,775) 18.4% (2,775.0) 8.0 (18,699.0) Historicals Dec-12 14,945 (3,226) 21.6% (18,699.0) (3,226.0) (597.0) (18,691.0) Historicals Dec-13 15,357 (3,778) 24.6% (18,691.0) (3,778.0) (900.0) (19,288.0) Dec-14 17,020 (4,250) 25.0% (19,288.0) (4,250.0) 840.0 (20,188.0) Dec-15 16,453 (4,600) 28.0% (20,188.0) (4,600.0) 1,059.3 (19,348.0) Dec-16 16,828 4,705 28.0% (19,348.0) 4,704.9 1,730.2 (12,912.9) Dec-17 17,212 4,355 25.3% (12,912.9) 4,354.6 2,541.2 (6,017.1) Dec-18 17,605 4,454 25.3% (6,017.1) 4,453.9 3,118.6 1,555.4 Forecasts Dec-19 18,006 4,556 25.3% 1,555.4 4,555.5 3,817.5 9,928.5 Forecasts Dec-20 18,546 4,692 25.3% 9,928.5 4,692.2 4,501.5 19,122.1 Dec-21 19,103 4,833 25.3% 19,122.1 4,832.9 5,159.4 29,114.4 Dec-22 19,676 4,978 25.3% 29,114.4 4,977.9 5,840.1 39,932.4 Dec-23 20,266 5,127 25.3% 39,932.4 5,127.3 6,512.6 51,572.3 AMERICAN ELECTRIC POWER CO INC (AEP) Consolidated Amortization & Intangible 0 ($USD in Million Except Per Share Amou Dec-11 15,116 Net Sales 106.0 Additions to Intangibles 0.7% Additions to Intangibles as % of Net Sales Dec-12 14,945 106.0 0.7% Historicals Dec-13 15,357 106.0 0.7% Beginning Net Intangibles Additions to Intangibles (Amortization Expense) (Intangible Sales and write offs) Ending Net Intangibles 106.0 (76.0) 1,592.0 106.0 (75.0) 3,823.0 106.0 (74.0) 4,305.0 106.0 (73.0) 2,096.0 1,469.0 (72.0) 1,592.0 3,823.0 4,305.0 2,096.0 2,106.0 Dec-14 17,020 106.0 0.6% Dec-15 16,453 1469.0 8.9% Dec-16 16,828 589.0 3.5% Dec-17 17,212 602.4 3.5% Dec-18 17,605 616.2 3.5% Forecasts Dec-19 Dec-20 18,006 18,546 630.2 649.1 3.5% 3.5% 2,106.0 589.0 (71.0) 2,624.0 602.4 (42.0) 3,184.4 616.2 (30.0) 3,770.6 630.2 (26.0) 4,374.8 649.1 (46.0) 4,977.9 668.6 (50.0) 5,596.5 688.7 (50.0) 2,624.0 3,184.4 3,770.6 4,374.8 4,977.9 5,596.5 6,235.2 Dec-21 19,103 668.6 3.5% Dec-22 19,676 688.7 3.5% Dec-23 20,266 709.3 3.5% 6,235.2 709.3 (50.0) 6,894.5 AMERICAN ELECTRIC POWER CO INC (AEP) Consolidated Shareholder's Equity ($USD in Million Except Per Share Amounts) Beginning Equity Balance Net Income Issuance/ (Repurchase) of Equity Ending Equity Balance Dec-11 Historicals Dec-12 Dec-13 Dec-14 Dec-15 35,783.0 Dec-16 35,783.0 Err:522 Err:522 Dec-17 Err:522 Err:522 Dec-18 Err:522 Err:522 Err:522 Err:522 Forecasts Dec-19 Dec-20 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Dec-21 Err:522 Err:522 Err:522 Dec-22 Err:522 Err:522 Dec-23 Err:522 Err:522 Err:522 Err:522 AMERICAN ELECTRIC POWER CO INC (AEP) Shares Oustanding Schedule Common Shares Current Structure Ordinary Shares Ordinary Shares Ordinary Shares Ordinary Shares Issued through IPO 491,710,000 issuable upon vesting future issuable