Atco Ltd. Class I · TSX:ACO.X
Atco Ltd. Class I — Investor Presentation (December 2021)
42 slides from Atco Ltd. Class I's investor presentation, December 2021
Slide 1: Disclaimer
DISCLAIMER Due to uncertainty surrounding the application of recent amendments to the Competition Act (Canada), the documents incorporated by reference herein are referenced for historical information purposes only and do not constitute active or current representations of ATCO Ltd. or any of its re
Slide 2: Investor Presentation December 2021
INVESTOR PRESENTATION December 2021
Slide 3: Table of Contents
TABLE OF CONTENTS Legal Notice...................................................................................... 3 Financial Executive Leadership Introduction.................................... 4 Financial Overview............................................................................ 5 AT
Slide 4: Legal Notice
LEGAL NOTICE Forward-Looking Information Statements made by representatives for ATCO Ltd. and Canadian Utilities Limited and information provided in this presentation may be considered forward-looking statements. By their nature, such statements are subject to numerous known and unknown risks and un
Slide 5: Introduction of Katie Patrick
INTRODUCTION OF KATIE PATRICK Executive Vice President, Chief Financial & Investment Officer, ATCO Ltd. On October 6, 2021, the ATCO Board of Directors announced the appointment of Katie Patrick to the role of Executive Vice President, Chief Financial & Investment Officer of ATCO Ltd. Ms. Patrick br
Slide 6: Financial Strength
FINANCIAL STRENGTH Long track record of earnings growth through various ATCO has an unprecedented track record of dividend growth. regulatory and macro-economic cycles. $352 million $1.79 in 2020 2016 Alberta wildfires per share 2015 GCOC decision and global commodity price declines 2020 COVID-19 Pa
Slide 7: Adjusted Earnings
ADJUSTED EARNINGS Q3 2021 2020 Adjusted Earnings Adjusted Earnings $365 M $352 M $69 M Forgone earnings from businesses $45 M sold in 2019 $54 M $320 M 27% Normalized adjusted earnings 2020 2021 2019 2020 INVESTOR PRESENTATION DECEMBER 2021 6
Slide 8: Strong Credit Ratings
STRONG CREDIT RATINGS ATCO Ltd. A (low) Stable “ATCO’s rating is supported by the credit strength of CU, which is an intermediate holding company with a sizable portion of Canadian Utilities Limited (CU) A Stable low-risk, well-diversified regulated businesses that have generated strong CU Inc. A (h
Slide 9: ATCO Group Overview
ATCO ATCO GROUP OVERVIEW
Slide 10: ATCO Group
ATCO GROUP Based in Alberta, ATCO is one of Canada’s premier corporations. With approximately 6,200 employees and assets of $22 billion, ATCO is a proven, diversified and global corporation. We are publicly traded on the Toronto Stock Exchange under the tickers ACO.X (non-voting) and ACO.Y (voting).
Slide 11: ATCO Group Organizational Structure
ATCO GROUP ORGANIZATIONAL STRUCTURE (TSX: (TSX: ACO.X ACO.X / ACO.Y) / ACO.Y) ~$4.5 ~$5billion billioncommon common equity equity capitalization capitalization as of Sept 30, 2021 53.0% (TSX: CU / CU.X) ~$9 billion common equity capitalization as of Sept 30, 2021 1) ATCO Land and Development Ltd. in
Slide 12: ATCO Group 2020 Adjusted Earnings
ATCO GROUP 2020 ADJUSTED EARNINGS $15 M Neltume Ports $57 M Structures & Logistics 73% Total 2020 Adjusted Earnings 9% $352M $280 M Canadian Utilities INVESTOR PRESENTATION DECEMBER 2021 11
Slide 13: ATCO Strategy
ATCO STRATEGY INVESTOR PRESENTATION DECEMBER 2021
Slide 14: ESG Accomplishments
ESG ACCOMPLISHMENTS E Environmental S Social G Governance • 90% removal of direct GHG emissions from • $71.4M in economic benefit for Indigenous • 33% of ATCO board directors are women. our portfolio since 2019, almost 7.5 million groups in 2020. • 36% of CU board directors are women. tonnes. • $5.5
Slide 15: Sustainability: ATCO's Commitment
SUSTAINABILITY: ATCO’S COMMITMENT ATCO's Commitment to Sustainability For ATCO, sustainability is more than an aspiration; it is interwoven into our strategy, our day-to-day operations, the products and services we provide, and the fabric of our people. It manifests across our family of companies in
Slide 16: ATCO Structures & Logistics Overview
ATCO STRUCTURES & LOGISTICS OVERVIEW Structures and Logistics is comprised of two business units: Structures Frontec Workforce Housing Operational Support Services Space Rentals Disaster & Emergency Management Permanent Modular Construction Remote Accommodations / Camps INVESTOR PRESENTATION DECEMBE
Slide 17: ATCO Structures & Logistics Adjusted Earnings
ATCO STRUCTURES & LOGISTICS ADJUSTED EARNINGS $57M $37M $15M $6M 2017 2018 2019 2020 INVESTOR PRESENTATION DECEMBER 2021 16
Slide 18: ATCO Structures - Workforce Housing
ATCO STRUCTURES - WORKFORCE HOUSING Streamlining our manufacturing platform to scale quickly and profitably when needed to capture workforce housing contracts Trans Mountain Expansion Project • Completed handover of two workforce housing rental contracts in 2020 to accommodate 1,150 persons in total
Slide 19: ATCO Structures – Space Rentals
ATCO STRUCTURES – SPACE RENTALS We continue to expand our space rental fleet in existing space rental geographies and through continued strategic expansion in targeted regions of Canada and the US. 18,827 • In 2020, Structures acquired the 16,353 remaining 50 per cent interest in ATCO Sabinco S.A. •
Slide 20: ATCO Structures - Permanent Modular Construction
ATCO STRUCTURES - PERMANENT MODULAR CONSTRUCTION Diversifying our global customer base into non-traditional modular markets such as public education facilities, high density urban residential housing, hotels, hospitals, and correctional facilities BC Supportive Housing Program • Secured several proj
Slide 21: ATCO Frontec
ATCO FRONTEC Enabling our customers to focus on their core business Lodging & Support Services • Safely operating accommodation facilities during COVID-19, increasing client confidence and camp occupancies. Specialized Site Services for Military Operations • Facility management and support services
Slide 22: ATCO Frontec - UQSUQ
ATCO FRONTEC - UQSUQ • In June 2007, the Government of Nunavut awarded UQSUQ (a joint venture between ATCO Frontec and Nunavut Petroleum Corporation) a contract for bulk fuel delivery services in Iqaluit, Nunavut. • Current contract is in place until the fourth quarter of 2021. • In late 2020, UQSUQ
Slide 23: Neltume Ports Overview
NELTUME PORTS OVERVIEW • ATCO acquired 40 per cent ownership interest in Neltume Ports in 2018. • Neltume Ports is a port operator and developer with a diversified portfolio of 17 multi-purpose, bulk cargo and container port facilities and six port operations services businesses, located primarily i
Slide 24: Neltume Ports – Recent Developments
NELTUME PORTS – RECENT DEVELOPMENTS AutoMOBILE International Terminal (AIT) AutoMOBILE Terminal: • A 50/50 joint venture (JV) partnership with Terminal Zarate in Mobile, ✓ Strategically located along the gulf coast Alabama. ✓ Short ocean transit times from/to the • June 2, 2021, marked their grand o
Slide 25: ATCO Land and Development
ATCO Land and Development • Invests in and holds high-value land in areas where ATCO’s global expertise, vision and brand can be leveraged. • Current portfolio includes inner-city redevelopment opportunities in Calgary and Edmonton, as well as office, industrial and undeveloped land throughout Alber
Slide 26: Ashcor
ASHCOR We develop innovative means to repurpose ash, both live ash and reclaimed ash, enabling it to play a vital role in solving infrastructure and environmental challenges. We are a trusted ash expert and a pioneer in our industry. COMMON USES FOR OUR ASH READY MIXED CONCRETE OIL WELL SERVICING SO
Slide 27: Canadian Utilities Overview
CANADIAN UTILITIES OVERVIEW For the Canadian Utilities Limited Investor Presentation and further details please visit: www.canadianutilities.com
Slide 28: Canadian Utilities Limited
CANADIAN UTILITIES LIMITED Canadian Utilities is an ATCO company with approximately 4,500 employees and assets of $20 billion. We are publicly traded on the Toronto Stock Exchange under the tickers CU (non-voting) and CU.X (voting). As a diversified global energy infrastructure corporation, Canadian
Slide 29: Canadian Utilities Organizational Structure
CANADIAN UTILITIES ORGANIZATIONAL STRUCTURE Canadian Utilities CU Inc. ~$8 billion (TSX: CU / CU.X) debt capitalization ~$9 billion common equity capitalization INVESTOR PRESENTATION DECEMBER 2021 28
Slide 30: Canadian Utilities 2020 Adjusted Earnings
CANADIAN UTILITIES 2020 ADJUSTED EARNINGS $28 M $(77M) 73% Energy Infrastructure Corporate $12 M LUMA 73% 27% Total 2020 Adjusted 9% Earnings Five Utilities Provide $535M $572 M Strong Foundational Utilities Earnings 14% INVESTOR PRESENTATION DECEMBER 2021 29
Slide 31: Canadian Utilities Strategy
CANADIAN UTILITIES STRATEGY • Leverage our core utility assets and invest in activities aimed at advancing the energy transition and ensuring long-term resiliency OPTIMIZE • Optimize energy infrastructure assets and add new growth platforms PROTECT NON-REG THE CORE ASSETS • Diversify geographically:
Slide 32: Investing in Our Utilities Future
INVESTING IN OUR UTILITIES FUTURE We are answering the call for climate accountability while ensuring the sustainability, affordability, safety, and reliability of our energy system. Digitization of the Grid: • Advanced Metering Infrastructure (AMI) for real-time data • Automated Distribution Manage
Slide 33: Energy Transition: Leading the Way
ENERGY TRANSITION: LEADING THE WAY We recognize clean energy as being the future and we’re proud to lead the energy transition. Our Energy Transition strategy is broken down into three key components: RENEWABLE GENERATION CLEAN FUELS ENERGY STORAGE ▪ Investing in Solar Installations ▪ Our hydrogen f
Slide 34: Regulated Utilities
REGULATED UTILITIES ELECTRICITY TRANSMISSION ELECTRICITY DISTRIBUTION $5.1B Rate Base $2.6B Rate Base INTERNATIONAL NATURAL GAS NATURAL GAS DISTRIBUTION NATURAL GAS TRANSMISSION DISTRIBUTION $2.9B Rate Base $2.2B Rate Base $1.2B Rate Base (1) 2020 estimated Mid Year Rate Base included in 2020 Manage
Slide 35: Regulated Utilities - Returns on Equity
REGULATED UTILITIES - RETURNS ON EQUITY 10.7% 8.5% 9.0% CU INC. IS COMPRISED OF OUR ALBERTA UTILITY COMPANIES AND ACHIEVES TOP TIER RETURNS ON EQUITY - CU Inc.’s average ROE is 2.2 per cent above average AUC approved over last 10 years. 10 Year Average (2011-2020) AUC Approved Alberta Utility Peer A
Slide 36: LUMA
LUMA Working hard to provide reliable electrical energy, and transform the system that illuminates every home, every business, every corner of Puerto Rico. • LUMA Energy is a joint venture between ATCO Group, through its investment in Canadian Utilities Limited, and Quanta Services. • In June 2020,
Slide 37: Energy Infrastructure Businesses
ENERGY INFRASTRUCTURE BUSINESSES ELECTRICITY GENERATION ELECTRICITY GENERATION ELECTRICITY GENERATION CANADA AUSTRALIA LATIN AMERICA 24 MW 177 MW 47 MW INDUSTRIAL WATER SERVICES HYDROCARBON STORAGE NATURAL GAS STORAGE CANADA CANADA CANADA 85,200 m3/day 400,000 m3 100 PJ INVESTOR PRESENTATION DECEMBE
Slide 38: Retail Energy
RETAIL ENERGY Retail is comprised of three segments: Home Energy Cooking Classes & Programs Home Products Business Energy Events & Catering Repair & Maintenance Services Large Commercial Energy BFK Café Home Management Advice ATCOenergy, the third largest competitive energy retailer in Alberta, offe
Slide 39: Just Launched: RÜMI
JUST LAUNCHED: RÜMI Innovative Consumer Brand that offers: • Providing solutions for home and business owners and connecting them with trusted professionals Home Products • Launched June 3rd, 2021 after completing pilot phase Repair and • Cultivates support for the local economy by: and Maintenance
Slide 40: Appendix
ATCO APPENDIX
Slide 41: Neltume Port – Further Information
NELTUME PORT – FURTHER INFORMATION PORT PER CENT COUNTRY TERMINAL KEY CARGO Puerto Angamos (PANG) Montecon (MON) OWNERSHIP TYPE Terminal Puerto Arica 50% CHL Container Mixed Terminal Puerto Angamos 40% CHL Multi Copper Terminal Graneles del Norte 40% CHL Dry Bulk Coal/Copper Puerto Mejillones 50% CH
Slide 42: Contact / Investor Relations
www.ATCO.com www.canadianutilities.com Tel: 403.292.7500 Investor Relations InvestorRelations@atco.com 5302 Forand Street SW Calgary, Alberta T3E 8B4 Canada