Uil Co. Ltd. · KRX:049520
Uil — Q3 2008 Earnings Presentation
18 slides from Uil's earnings presentation, Nov 4, 2008
Slide 1: UIL Holdings Corporation Third Quarter 2008 Results
EXHIBIT 99.1 UIL Holdings Corporation Transforming Investment into Future Value Third Quarter 2008 Results James P. Torgerson President and Chief Executive Officer Richard J. Nicholas Executive Vice President and Chief Financial Officer
Slide 2: Safe Harbor Provision
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, expectations or
Slide 3: 3rd Quarter 2008 Earnings Call Discussion Topics
UIL Holdings 3 rd Quarter 2008 Earnings Call Discussion Topics l 3 rd Quarter & YTD 2008 Earnings Highlights l Project Details l 3 rd Quarter & YTD 2008 Earnings Detail l 2008 Guidance and Beyond
Slide 4: 3Q and YTD Financial Results - Summary
3Q and YTD Financial Results - Summary l 3Q ’08 earnings from continuing operations of $21.6 million or $0.86 per share, compared to $23.0 million, or $0.92 per share in 3Q ‘07 l YTD ’08 earnings from continuing operations of $39.6 million, or $1.58 per share, compared to $38.0 million, or $1.52 per
Slide 5: GenConn Energy – Peaking Generation Update
GenConn Energy– Peaking Generation Update The Award Process l February 1, 2008 – Qualification statement for 500MW peaking submitted l March 3, 2008 – Proposal submitte n Scalable in 100 MW increments n Three possible NRG owned locations in Connecticut l April 2008 - “Prosecutorial” and OCC recommen
Slide 6: GenConn Energy
GenConn Energy l Regulated cost-of-service approach utilizing contract for differences n Initial ROE of 10.25% with an annual adjustment index (9.75% lifetime floor) n Proposed 50/50 debt to equity n 30-year O&M costs reviewed annually in a limited DPUC rate case l Project financing will support pea
Slide 7: 2008 Distribution Rate Case – Docket # 08-07-04
2008 Distribution Rate Case –Docket # 08-07-04 l August 8, 2008 – UI filed request for a distribution rate increase with the DPUC l Rationale n Not earning allowed distribution return, 9.75% • In 2007, achieved distribution & CTA combined ROE of 8.93% • Forecasted 2008 distribution & CTA combined RO
Slide 8: Docket # 08-07-04 Updated Request
Docket # 08-07-04 l Updated Request on October 27, 2008 n To reflect lower than anticipated kWh sales n Impact of market conditions on pension and postretirement expense • $51.4 million in 2009 (compared to 2008) • $29.7 million in 2010 (compared to 2009)
Slide 9: Distribution Sales
ver Distribution Sales 6400 6301 6,00 6289 6,200 6,100 6,000 z 5,900 © 500 13.9% 5,700 5,600 5,500 ~ 5,400 ste Actual / Projected — —t=DN 05-06-04 Approved a 5,300 2006 GWHSales 007 GWH Sales «2008 @+3)GWH © 2009 GWH Sales 2010 GWH Sales BIL * Entrepolatadat 1%
Slide 10: DPUC Timeline – Docket 08-07-04
DPUC Timeline – Docket 08-07-04 l Regulatory page on the UIL website created to keep investors informed
Slide 11: 3Q and YTD 2008 Results
30 and YTD 2008 Results Netlwecme (Loss) 64) W Distibution, CTA and Oter 3 62 mr $ ma $ a2 Tramaision 61 al 10 82 Total UINet Income 3 mS Bs S$ ad $ Est UL Comporate on oa) aa aa Total Conimuing Operations 3 ms $ Bo S$ me S$ 38.0 Disoantmed Opeatins - Xeelecout on) 20) oa aa Total Net Income $ as $
Slide 12: 3Q & YTD 2008 Earnings Details – The United Illuminating Company
3Q & YTD 2008 Earnings Details Compared to the Same Periods in 2007 The United Illuminating Company l Distribution, CTA & Other n Lower kWh sales volume, $0.03 per share • YTD ’08, $0.12 per share lower n Actual kWh sales was down 1.9% • Down 2.8% YTD ’08 n Weather adjusted retail kWh consumption 4.
Slide 13: 3Q & YTD 2008 Earnings Details – Transmission
3Q & YTD 2008 Earnings Details Compared to the Same Periods in 2007 l Transmission n Significant eps growth, $0.12 per share – nearly doubled ’07 level • Earnings more than doubled YTD ’08 • 100% CWIP in rate base on the M/N project • M/N project now more than 98% complete • Currently in testing and
Slide 14: 2008 Earnings Guidance
2008 Earnings Guidance • CAGR based on actual 2007 results and earnings projection for 2008. Assumes UI earns its distribution allowed return on equity in 2010. Includes 6 months of peaking generation earnings and an equity issuance prior to mid 2010. ** Assumes UI earns a distribution and CTA combi
Slide 15: 2008 Guidance Variables
2008 Guidance Variables l Assumes the distribution and CTA combined return on equity of 6.5% to 7.0% in 2008, compared to its allowed return on equity of 9.7 n Maintaining the allowed capital structure of 48% equity / 52% debt n CTA forecast reflects earning the allowed return on equity of 9.75% • S
Slide 16: Financing Plan 2008 through 2011
Financing Plan 2008 through 2011 Fixed Income n In July 2008 - priced $150 million of private placement bonds • $50 million new debt taken down on November 3, 2008 • $100 million maturing debt to be taken down in December 2008 n Refinancing $50 million maturing debt in 2009 n Expect to apply to the
Slide 17: Financing Plan 2008 through 2011 – cont.
Financing Plan 2008 through 2011 – cont. Liquidity UIL & UI have a $175 million joint short-term credit facility due December 2011 $133 million outstanding as of September 30, 2008, which includes $126 million of short-term borrowings and $7 million of letters of credits $42 million remaining $15.8
Slide 18: Q&A
Q&A