Newjersey Resources Corporation · NYSE:NJR
Newjersey Resources — Shareholder Meeting (January 2016)
25 slides from Newjersey Resources's shareholder meeting presentation, Jan 20, 2016
Slide 1: Safe, Reliable Natural Gas at Our Core ... and So Much More
SAFE, RELIABLE NATURAL GAS AT OUR CORE ... AND SO MUCH MORE 2016 Annual Shareowners Meeting January 20, 2016
Slide 2: Regarding Forward-Looking Statements
Regarding Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. New Jersey Resources (NIR or the Company) cautions readers thatthe assumptions forming the basis for forwa
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
Disclaimer Regarding Non-GAAP Financial Measures This presentation includes the non-GAAP measure net financial earnings (NFE). As an indicator of the Company's operating performance, this measure should not be considered alternative to, or more meaningful than, GAAP measures, such as cash flow, net
Slide 4: Fiscal 2015: Highlights of Another Solid Year
Fiscal 2015: Highlights of Another Solid Year * Net Financial Earnings (NFE) of $1.78 per share, which exceeded our expectations * Total shareowner return of 22.8 percent* * 6.7 percent dividend increase, our 22" increase in the last 20 years * $179.2 million of utility infrastructure investments dr
Slide 5: Fiscal 2015: Highlights of Another Solid Year
Fiscal 2015: Highlights of Another Solid Year * Constructive regulatory relationships yielded continuation of the SAVEGREEN Project® and Basic Gas Supply Service incentive program * Highest ranked in East Region in J.D. Power’s 2015 Gas Utility Residential Customer Satisfaction Study* ¢ Named 2015 U
Slide 6: NJ Resources — Energy Assets
ey Resources — Energy Assets A NR Headquarters NING Service Area GSS Sales NIRES Sales Both NIRES and BGSS Sales NIRCEV Wind Farm
Slide 7: Consistent Financial Performance
Consistent Financial Performance Net Financial Earnings Per Share $2.50 $2.0 $2.00 $1.78 1.50 $1.50 ar 1.43 i yy) a $1.36 $1.37¢4 39 1.20 ; gis | ne $1.00 | $92 $94 $.50 | $.00 2005 = 2006. «2007. «S«2008-=S 2009-2010 2011S 2012S 2013S 2014S (2015 ‘mActual mi Initial Guidance Midpoint| SS eee
Slide 8: NJR Expects Regulated Businesses to Contribute to Percent of 2016 NFE
NJR Expects Regulated Businesses to Contribute 65 to 80 Percent of 2016 NFE Fiscal 2016 60-70% [iNew Jersey Natural Gas [MJ NJR Midstream [MMINIR Energy Services [JJ NJR Home Services {[lJnyR Clean Energy Ventures 65 per share
Slide 9: Our Dividend Strategy
Our Dividend Strategy * Dividend growth goal of 6 to 8 percent annually * Dividend payout ratio goal of 60 to 65 percent * 6.7 percent increase to current $.96 annual rate Dividends and Payout s120 70% 100 ox 3 0m mg 5 won & B seo $ 2 sox S soo & 20% 020 10% 000 om zit 2012.28 0420S 206E Dividend Ra
Slide 10: Our Primary Mission: Safe, Reliable and Responsive Service
Our Primary Mission: Safe, Reliable and Re ent Service Ensuring the health, safety and quality of life of our customers and the communities we serve is our most important responsibility + Experienced people dedicated to serving our customers * Careful planning to understand our customers’ needs * Kn
Slide 11: Investing in Our Future
Investing in Our Future * Invested more than $71 million in system reliability and resiliency projects in fiscal 2015 — Almost $500 million since 2008 * Plan to spend nearly $77 million in fiscal 2016 * Lowest number of leaks per mile of any natural gas utility in New Jersey * First utility in the s
Slide 12: Enhancing System Resiliency
Enhancing System Resiliency Safety Acceleration and Facility Enhancement Program (SAFE) * Replace 100 percent of the cast iron and 50 percent of the unprotected bare steel distribution main in our system New Jersey Reinvestment in System Enhancement (NJRISE) * Six storm-hardening capital projects *
Slide 13: Infrastructure Investment Improves System Performance
Infrastructure Investment Improves System Performance 6.000 Leaks per Mile and Pending Leaks [ 4,500 0.8 4,000 sy 3,500 - e 06 | 3 3,000 = rat pOsss 5 2 2,500 - a o 04 = = 2,000 8 03 1,500 1,000 ez 500 0.1 @ Pl oP SP Ph oP oP SN em A Oo qe a) v LH ELE SPE PF SEH EELS LSS l™™ Pending Leaks ~-®-Leaks
Slide 14: Strong Customer Growth
Strong Customer Growth ¢ 7,858 new customers added in fiscal 2015 compared with 7,599 in fiscal 2014 — a 3.4 percent increase a om — 3,966 new construction By customers — 3,892 conversions from other [ome fuels ia * 636 existing customer heat | conversions SS eee al
Slide 15: Key Trends Support Future Customer Growth
Key Trends Support Future Customer Growth Population Change 2000-2014 14.1% 15.0% 10.0% 5.0% Equivalent Customer Cost? $5.00 Ean $4.10 $4.00 $3.00 $2.00 $1.90 $0.88 3. Source: A.D, Little $1.00 0.0% $0.00 =m Morris Monmouth Ocean NING Fuel Oil Propane Electricity AtoRne- x 2 Source: US Energy infoma
Slide 16: Serving Our Customers
Serving Our comers Fiscal 2015 Customer Transactions BPU Inquiries per 1,000 Customers ane 4.00 * 6million meter reads ato a * 1.1 million customer calls handled S00 2.50 * 65,000 walk-in payments 2.00 a processed 1.50 1.3 hn 1.00 - ¢ 263,000 web transactions 050 0.4 0.0 | = ACE PEG SJG ETG NJNG Hig
Slide 17: Conserve to Preserve: Helping Customers Save Energy and Money
Conserve to Preserve: Helping Customers Save Energy and Money Conserve to Preserve — the umbrella of our commitment to environmental stewardship — helps customers use less energy, save money, and preserve our natural resources * Over 100,000 E-Tips subscribers * Over 2 million conservation tips prov
Slide 18: The SAVEGREEN Project
The SAVEGREEN Project® * Supports investment in high-efficiency equipment + Encourages energy savings for customers * Approval to invest approximately $220 million in grants and financial incentives over current life of the program * Since inception: - Assisted nearly 40,000 customers in reducing en
Slide 19: Our Commitment to Clean Energy
Our Commitment to Clean Ene Commercial Solar * Projects include roof- and ground-mounted installations, both grid-connected and net- metered * 22 projects in service * 82.4MW Residential Solar - The Sunlight Advantage® + Approximately 4,000 customers added since inception * 35.3 MW Onshore Wind * Th
Slide 20: NJRES: Generating NFE Every Year Since 1995
NJRES: Generating NFE Every Year Since 1995 * Serves wholesale customers across North America * Among the top 20 largest bes Gas Marketers*in North America $180 $160 $140 $120 $100 $80 * Diverse portfolio of physical natural gas assets SMM * Firm storage (40 Bcf in the US cap and Canada) aol 2010 20
Slide 21: NJR Midstream
NJR Midstream Steckman Ridge * 50/50 joint venture with Spectra Energy * 12 Bcf natural gas storage facility in southwest Pennsylvania * Direct access to Texas Eastern and Dominion Transmission pipelines and access to Northeast and Mid-Atlantic markets Dominion Midstream Partners, LP * 1.8 million u
Slide 22: NJR Home Services
We’re There for Your Home Co Needs NJR Home Services * Product line includes: - Equipment sales and installations - Solar lease and purchase plans - Service contracts: heating, cooling, water heating, electric and standby generators * Completed over 96,600 service calls in fiscal 2015 * Customer sat
Slide 23: Making a Difference in Our Communities
Making a Difference in Our Communities *Wevision + Employees and retirees work to make a difference in our communities and have contributed over 53,000 of hours of service since its Sy in 1995 PF oes 7 ce ft oe Viv Habitat Oe vir Hi Humanity® Interfaith Naghostobrg hepa ero 55 + Partnership with Int
Slide 24: Value for Shareowners
Value for Shareow! Value of $10,000 Investment* $146,288 $160,000 $120,000 $80,000 $78,397 $60,268 $40,000 $0 + S&P 500 Peer Group NJR * March 31, 1995 to December 31, 2015 (Assumes Dividends Reinvested) SS eee oo
Slide 25: Safe, Reliable Natural Gas at Our Core ... and So Much More
SAFE, RELIABLE NATURAL GAS AT OUR CORE ... AND SO MUCH MORE 2016 Annual Shareowners Meeting January 20, 2016
New Jersey Resources — Shareholder Meeting (January 2016) on 6ix