Fortis Inc. · TSX:FTS
Fortis — J.P. Morgan Energy Equity Conference 2017
19 slides from Fortis's conference presentation, Jun 27, 2017
Slide 1: J.P.Morgan Energy Equity Conference
J.P.Morgan Energy Equity Conference June 27, 2017 FORTIS INC. WIRED FOR GROWTH
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 Operating Fortis 2017 Earnings (1) Midyear Rate Base(2) For the Twelve Months ~$26 Billion Ended March 31, 2017 Transmission & Distribution represents ~8
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 10.29% S&P/TSX Composite Index 9.14% S&P/TSX Capped Utilities Index 7.44% (1) For the 5-year period ending May 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: Proven Acquisition Track Record
Proven Acquisition Track Record Networks Canada Fortis $/share 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Note: Indicates date of announcement by Fortis that it had entered into an agreement to acquire th
Slide 10: 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 Blair appointed President and CEO of ITC during Q4 2016 o Joe Welch elected to Fortis’ board of direct
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 $3.0 $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 (4) Other Ener
Slide 12: Highly Executable Capital Plan
Highly Executable Capital Plan: Contains Few Major Capital Projects & Focuses on Sustaining Capital Expenditures Major Capital Projects (1) Total Forecast Forecast 2017- $millions(2) (3) 2017 2018-2021 2021 5-Year Capital Forecast Spending Forecast ITC Multi-Value Regional 305 244 549 Utility Transm
Slide 13: Opportunities Beyond Base Plan
Opportunities Beyond Base Plan ITC: Lake Erie Connector Prince Newfoundland Edward Alberta Island British Columbia FortisOntario: Wataynikaneyap Project Ontario Minnesota FortisBC: Prince Tilbury, Woodfibre Edward New York State LNG, Gas Infrastructure Island British Columbia Iowa Michigan Illinois
Slide 14: Development Project Update
Development Project Update • Potential pipeline expansion to the Woodfibre LNG export site • Project estimate of up to $600 million, not currently in forecast Woodfibre LNG • Earliest expected in service date is late 2020 • Proposed 1,000 MW, bi-directional, high-voltage direct current transmission
Slide 15: Waneta Dam Agreement: Fits Strategy of Growth within our Existing Franchise Regions
Waneta Dam Agreement: Fits Strategy of Growth within our Existing Franchise Regions High-quality, renewable energy facility located in current operational area. Currently operated by FortisBC. Stable long-term contracted asset that will generate strong cash flows secured by a 20-year agreement
Slide 16: Predictable Returns From Highly Regulated Asset Base
Predictable Returns From Highly Regulated Asset Base 2017 Weighted Average Canada U.S. Combined Allowed ROE 8.73 10.50 9.74 Actual Equity Thickness 39.0 55.1 48.1 FORTIS INC. WIRED FOR GROWTH 16
Slide 17: Poised to Deliver Quality Results
Poised to Deliver Quality Results • On track to execute 2017 plan, supported by acquisition of ITC and new UNS rates • Consistent dividend growth • 43 years of consecutive dividend increases • 6% average annual dividend growth guidance through 2021 • Highly diversified regulated utilities, focused o
Slide 18: J.P.Morgan Energy Equity Conference
J.P.Morgan Energy Equity Conference June 27, 2017 FORTIS INC. WIRED FOR GROWTH
Slide 19: Expected Upcoming Events
Expected Upcoming Events Expected Earnings Release Dates Q2 – 2017 July 28, 2017 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