Uil Co. Ltd. · KRX:049520
Uil — Q2 2010 Earnings Presentation
26 slides from Uil's earnings presentation, Aug 4, 2010
Slide 1: 2Q 2010 Earnings Conference Call
EXHIBIT 99.1 2Q 2010 Earnings Conference Call August 5, 2010 1
Slide 2: Notices
Notices Safe Harbor Provision Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management’s intentions, plans, beliefs, expecta
Slide 3: Agenda
Agenda › 2Q 2010 Major Events » Earnings Summary » Gas Companies Acquisition Update » New England East West Solution (NEEWS) Agreement » GenConn Update › Capital Expenditure Program » Refreshed T&D 10-Year Capital Expenditure Program » Average Rate Base Growth › State Regulatory Update › 2Q 2010 Fin
Slide 4: 2Q 2010 Financial Results - Summary
2Q 2010 Financial Results - Summary 2Q 2010 » 2Q ’10 consolidated earnings of $10.1 million, or $0.34 per basic share, compared to $13.8 million, or $0.51 per basic share, in 2Q ’09 » After-tax acquisition-related costs in the amount of $4.3 million, or $0.14 per share included in the 2Q and YTD ’10
Slide 5: May 25, 2010 Announcement: Gas Companies Acquisition
May 25, 2010 Announcement Gas Companies Acquisition › Acquisition of three regulated gas LDCs owned by Iberdrola with approximately 369,000 customers » Southern Connecticut Gas (“SCG”) - 176,000 customers Description » Connecticut Natural Gas (“CNG”) - 157,000 customers » Berkshire Gas Company (“BGC
Slide 6: Pending Acquisition Strategic Rationale
Pending Acquisition Strategic Rationale › Transformative transaction nearly doubling the size of UIL’s regulated investments › Expected enhanced cash flow and earnings per share accretion provide continued support of UIL’s dividend » Cash flow accretive immediately » EPS accretive beginning in the f
Slide 7: Pending Acquisition Combined Business Snapshot
Pending Acquisition Combined Business Snapshot Combined Service Territory Combined Statistics UIL Gas 2009 Holdings Companies Contribution Contribution Adjusted $349 Million 63% 37% EBITDA(1) Adjusted $93 Million 59% 41% Net Income(1) Avg Rate Base $1,909 Million 55% 45% Electric Customers 325,000 1
Slide 8: July 15, 2010 Announcement: NEEWS Agreement
July 15, 2010 Announcement NEEWS Agreement › On July 14, 2010 UI entered into an agreement with CL&P under which UI will have the right to invest in and own transmission assets associated with the CT portion of CL&P’s NEEWS projects › Total expected CT portion project cost - $711 million » UI has th
Slide 9: GenConn Energy LLC Financing and Status
GenConn Energy LLC Financing › 50/50 debt/equity Status › On July 30, 2010 filed with the DPUC the 2011 revenue requirement application for both the Devon and Middletown facilities 9
Slide 10: UI T&D Base 10-yr Capital Expenditure Program
UI T&D Base 10-yr Capital Expenditure Program ($ in millions) Total 2010-2019P Distribution $ 147 $ 187 $ 129 $ 111 $ 114 $ 577 $ 1,265 Transmission $ 74 $ 75 $ 70 $ 56 $ 58 $ 204 $ 537 GenConn* $ 54 $ 63 $ - $ - $ - $ - $ 117 Total Base Capital Exp.** Base 10-yr CapEx Forecast Growth Opportunities
Slide 11: UI Base Plan - Distribution Investments
UI Base Plan - Distribution Investments ($ in millions) Total Aging Infrastructure $ 59.0 $ 47.1 $ 53.4 $ 49.1 $ 50.6 $ 231.1 $ 490.1 Capacity $ 25.8 $ 26.0 $ 25.6 $ 26.3 $ 35.8 $ 184.3 $ 323.9 System Operations $ 17.4 $ 18.3 $ 12.3 $ 12.0 $ 10.9 $ 60.6 $ 131.5 Core Support $ 44.9 $ 95.8 $ 37.8 $ 23
Slide 12: UI Base Plan - Transmission Investments
UI Base Plan - Transmission Investments ($ in millions) Total Aging Infrastructure $ 42.1 $ 35.3 $ 15.3 $ 14.9 $ 12.8 $ 107.1 $ 227.5 Capacity $ 13.4 $ 13.6 $ 4.4 $ 2.1 $ 11.5 $ 49.3 $ 94.2 Standards Compliance/Other $ 18.4 $ 25.7 $ 50.4 $ 39.3 $ 33.8 $ 47.8 $ 215.3 Total Base Transmission* Aging In
Slide 13: UI 2010 - 2014 Average Rate Base Forecast
UI 2010 - 2014 Average Rate Base Forecast (Excluding GenConn Equity Investments) UI CAGR 7.4% UI + GenConn CAGR 9.8% 1% 4% 39% 39% 8% 12% 38% 15% 38% 38% 39% 60% 61% 58% 54% 47% 49% Rate base growth even with a declining CTA balance UI’s 50% Share: Avg. GenConn RB Equivalent $52m $153m $199m $188m $
Slide 14: State Regulatory Update
State Regulatory Update › Decoupling Draft Decision (DN 08-07-04RE02) » Would defer ruling on extension of decoupling pilot to the early part of 2011 » Would approve decoupling charge of approx. $1.6 million, which includes approx. $3.8 million already recovered in rates from the previously approved
Slide 15: 2Q 2010 Financial Results - Details
2Q 2010 Financial Results - Details Quarter Ended June 30, 6 Months Ended June 30, 2010 2009 Difference 2010 2009 Difference UI Distribution, CTA* and Other $ 8.0 $ 8.1 $ (0.1) $ 17.9 $ 14.9 $ 3.0 Transmission 7.1 6.2 0.9 13.8 12.3 1.5 Total UI Net Income $ 15.1 $ 14.3 $ 0.8 $ 31.7 $ 27.2 $ 4.5 UIL
Slide 16: 2Q 2010 Financial Results - Details (cont.)
2Q 2010 Financial Results - Details (cont.) 2Q 2010 Distribution, CTA and Other » 2Q ’10 earnings of $8.0 million compared to $8.1 million in 2Q ’09 » Favorable variance in revenues due to the approved rate increase effective January 1, 2010 was more than offset by the unfavorable variance from the
Slide 17: Debt Maturity and Liquidity Profile
Debt Maturity and Liquidity Profile Solid liquidity position enabling future CapEx plans Debt maturity schedule as of 6/30/10 ($M) Liquidity outlook › Short-term borrowings outstanding of $30M as of * 6/30/10 under UIL & UI $175M joint credit facility due 12/22/11 ($50M of limit available for UIL) ›
Slide 18: 2010 Earnings Guidance as of 8/5/10 - Consolidated Affirmed
2010 Earnings Guidance as of 8/5/10 - Consolidated Affirmed Excluding Acquisition-Related Costs and Events Approximate 2010 Net Income * 2010 EPS - Basic The United Illuminating Company Distribution, CTA & Other $32 - $34 $1.06 - $1.13 Transmission 26 - 28 0.87 - 0.93 GenConn 1-2 0.05 - 0.07 Total U
Slide 19: UIL Holdings Corporation
OIL UIL HOLDINGS CORPORATION
Slide 20: Appendix
OIL UIL HOLDINGS CORPORATION
Slide 21: Previous UI T&D Base 10-yr Capital Expenditure Program
Previous UI T&D Base 10-yr Capital Expenditure Program as of November 2009 ($ in millions) Total 2009-2018P Distribution $ 95 $ 141 $ 147 $ 141 $ 122 $ 534 $ 1,178 Transmission $ 29 $ 47 $ 63 $ 80 $ 96 $ 91 $ 405 GenConn* $ - $ 57 $ 65 $ - $ - $ - $ 122 Total Base Capital Exp.** Base 10-yr CapEx For
Slide 22: Previous UI Average Rate Base Forecast
Previous UI Average Rate Base Forecast (Excl. GenConn Equity Investments) as of November 2009 CAGR 5% 1% 4% 8% 39% 11% 37% 19% 15% 37% 38% 35% 38% 60% 59% 55% 46% 51% 47% Rate base growth even with a declining CTA balance Avg. GenConn Rate Base Equivalent (UI’s share) $56m $174m $232m $224m Avg. Gen
Slide 23: Acquisition Net Income to EBITDA Reconciliation
Acquisition Net Income to EBITDA Reconciliation Amounts may not add due to rounding. Source: SEC filings and audited financial statements. (1) Last twelve months ended 03/31/2010. Quarterly data is unaudited. 23
Slide 24: Acquisition Net Income to Adjusted EBITDA Reconciliation
Acquisition Net Income to Adjusted EBITDA Reconciliation Amounts may not add due to rounding. Source: Adjustments based on notes in audited financial statements and estimates from discussions with Iberdrola USA management. (1) Last twelve months ended 03/31/2010. Quarterly data is unaudited. 24
Slide 25: Acquisition Adjusted Net Income Reconciliation
Acquisition Adjusted Net Income Reconciliation Amounts may not add due to rounding. Source: Adjustments based on notes in audited financial statements and estimates from discussions with Iberdrola USA management. (1) Last twelve months ended 03/31/2010. Quarterly data is unaudited. 25
Slide 26: Slide 26