Fortis Inc. · TSX:FTS
Fortis — Barclays CEO Energy-Power Conference 2017
17 slides from Fortis's conference presentation, Sep 5, 2017
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy- Power Conference September 5, 2017
Slide 2: Forward-Looking Information
Forward-Looking Information Fortis Inc. (“Fortis” or, the “Corporation”) includes “forward-looking information” in this presentation within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (
Slide 3: Fortis Today
Fortis Today • Leader in the North American regulated electric and gas utility business • ITC provides strong platform in electric transmission sector • Tremendous economic, geographic and regulatory diversity • Recent regulatory outcomes provide stability for near term • Visible growth provided by
Slide 4: A Leader in North American Utility Industry
A Leader in North American Utility Industry • Regulated utilities British Newfoundland Prince • 9 U.S. states Columbia Edward Alberta Island • 5 Canadian provinces Ontario • 3 Caribbean countries Minnesota • ~8,400 employees Iowa New York State Michigan • 2017F midyear rate base ~$26B Kansas Illinoi
Slide 5: Highly Diversified: Economic, Geographic and Regulatory Diversification
Highly Diversified: Economic, Geographic and Regulatory Diversification Fortis Has Become a Leading Transmission & Distribution Business Pro Forma Net Earnings(1) Fortis 2017 Midyear Rate Base(2) ~$26 Billion For the Twelve Months Transmission & Distribution Ended June 30, 2017 represents ~86% of ra
Slide 6: Average Annual Dividend Growth Target of ~6% through 2021
Average Annual Dividend Growth Target of ~6% through 2021 $1.53 $1.40 $1.20 $1.24 $1.28 $1.16 $1.12 $1.04 $1.00 73% 73% $0.82 70% 70% 68% 66% 66% $0.67 64% 61% 59% Average annual dividend growth 47% through 2021 targeted at ~6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F
Slide 7: Delivering Superior Shareholder Returns
Delivering Superior Shareholder Returns (1) • Average annualized total shareholder return over last 5 years Fortis 10.34% S&P/TSX Composite Index 8.55% S&P/TSX Capped Utilities Index 6.69% FORTIS INC. WIRED FOR GROWTH (1) For the 5-year period ending July 31, 2017.
Slide 8: Our Strategic Focus Delivers Results
Our Strategic Focus Delivers Results Strategy Leverage the operating model, footprint of our utilities, operating expertise, reputation and financial strength to develop growth opportunities Dividend Growth Dividend Target: Growth Target: Investment-Grade 6% Average Annual 6% Average Annual Credit R
Slide 9: ITC: Transformational Growth for Fortis
ITC: Transformational Growth for Fortis Accretive to EPS Financing complete Integration on track o Minimal impact on day-to-day operations at ITC o ITC’s new board of directors formed o Linda Apsey appointed President and CEO of ITC during Q4 2016 o Joe Welch elected to Fortis’ Board of Direct
Slide 10: Our Focused Strategy Continues to Yield Strong Results
Our Focused Strategy Continues to Yield Strong Results Focused on base growth while making prudent investments to provide safe, reliable and cost effective energy solutions to our customers Benefitting from the acquisition of ITC Maintaining constructive regulatory relationships: • UNS rate ca
Slide 11: Capital Plan Grows Rate Base to ~$30 Billion in 2021
Capital Plan Grows Rate Base to ~$30 Billion in 2021 ~$13B Five-Year Capital Program (2) 2016 – 2021 Midyear Rate Base $3.1 $2.9 $28.9 $29.6 $28.3 $27.1 $2.4 $2.4 $25.7 $2.3 $24.3 ($ billions ) (1) ($ billions ) (1) (3) 2017F 2018F 2019F 2020F 2021F 2016A 2017F 2018F 2019F 2020F 2021F Other Energy I
Slide 12: Highly Executable Capital Plan
Highly Executable Capital Plan Major Capital Projects Total Forecast Forecast 2017- $millions(1) (2) 2017 2018-2021 2021 5-Year Capital Forecast Spending Forecast ITC Multi-Value Regional 305 244 549 Transmission Projects (3) Utility ITC 34.5 kV to 69 kV Operations (4) 89 369 458 15% Conversion Proj
Slide 13: Opportunities Beyond Base Plan
Opportunities Beyond Base Plan ITC: Lake Erie Connector Prince Newfoundland Edward and Labrador Alberta Island British Columbia Prince Edward FortisOntario: Island Wataynikaneyap Project & British Columbia Municipal Utility Consolidation Ontario Minnesota Ontario FortisBC: New York Tilbury, Woodfibr
Slide 14: Beyond the Forecast: Development Project Update
Beyond the Forecast: Development Project Update Opportunity to connect remote First Nations communities in Northern Ontario to the grid In Q1 2017, the Ontario Energy Board issued its deferral account approval allowing recovery of spending that occurred since November 2010 Wataynikaneyap Feder
Slide 15: Poised to Deliver Quality Results
Poised to Deliver Quality Results • On track to execute 2017 plan, supported by acquisition of ITC and reasonable rate case outcome at UNS • Consistent dividend growth • 43 years of consecutive dividend increases • 6% average annual dividend growth guidance through 2021 • Highly diversified regulate
Slide 16: Barclays CEO Energy-Power Conference
Barclays CEO Energy- Power Conference September 5, 2017
Slide 17: Expected Upcoming Events
Expected Upcoming Events Expected Earnings Release Dates Q3 – 2017 November 3, 2017 Save the Date - 2017 Investor Day Toronto October 16, 2017 New York October 18, 2017 FORTIS INC. WIRED FOR GROWTH