Uil Co. Ltd. · KRX:049520
Uil — FY2013 Earnings Presentation
20 slides from Uil's earnings presentation, Feb 20, 2014
Slide 1: 4Q & FY '13 Earnings Presentation
FY & 4Q ‘13 Earnings 4Q & FY ‘13 Earnings Presentation February 21, 2014 Exhibit 99.2
Slide 2: Note to Investors
Note to Investors 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 for
Slide 3: '13 Earnings Summary
FY & 4Q ‘13 Earnings ‘13 Earnings Summary Strong financial performance – FY ’13 net income up 11% over FY ’12 $115.3M, or $2.18 per diluted share, in ‘13, an increase of $11.7M, compared to ‘12 ‘13 includes a net regulatory charge of $5.0M, after-tax, from the electric distribution ‘13 rate proceedi
Slide 4: Strategic Initiatives
FY & 4Q ‘13 Earnings Strategic Initiatives Growth – through investment in both electric and gas infrastructures Disciplined capital investment program Growth – through addition of new natural gas heating customers Supported by state legislation Prudently managing costs Pursuing opportunities to make
Slide 5: Long-Term Organic Growth: 10-yr Capex Forecast
FY & 4Q ‘13 Earnings Long-Term Organic Growth 10-yr Capex Forecast (‘14-’23) * * Includes Renewables - $47M ’14-’18 Amounts may not add due to rounding
Slide 6: Avg. Rate Base Growth ('14-'18)
FY & 4Q ‘13 Earnings Avg. Rate Base Growth (‘14-’18) * * Actual ‘13 avg. rate base ** Gas forecast includes 338 (h)(10) election (1) Including renewables (2) Represents investments at UIL Corporate Amounts may not add due to rounding $M ‘14-’18 Rate Base CAGR 8.3% Gas Distribution: 7.5% Electric Tra
Slide 7: Gas Heating Customers Added
FY & 4Q ‘13 Earnings Gas Heating Customers Added 14,947 households & businesses in ‘13 - 34% more than in ‘12 Added 34,427 households & businesses over the three years ‘11-’13. Target was 30,000-35,000. ‘14 target - 15,800 households & businesses * ‘13 Additions by Company SCG – 44% CNG – 46% BGC –
Slide 8: Gas Customer Additions '10-'13 Actuals & Projections
FY & 4Q ‘13 Earnings Gas Customer Additions ’10–’13 Actuals & Projections for ‘14–‘23 *
Slide 9: Regulatory Update
FY & 4Q ‘13 Earnings Regulatory Update Gas Distribution Rate Case - CNG Final decision issued by PURA on 1/29/14 Annual revenue - $7.25M 9.18% ROE, 52.52% equity, 0.11% preferred stock*, 47.37% debt capital structure Implementation of decoupling mechanism and system expansion reconciliation Cast iro
Slide 10: 4Q & FY '13 Financial Results by Segment
FY & 4Q ‘13 Earnings 4Q & FY ‘13 Financial Results by Segment *
Slide 11: 4Q & FY '13 Financial Results - Details
40 & FY ‘13 Financial Results - Details <q Consolidated UIL earnings > 4Q & FY 13 consolidated earnings were $40.4M & $115.3M, respectively - up 40% & 11%, compared to the same periods in ‘12, respectively » 4Q13 includes a positive regulatory adjustment of $5.5M, after-tax » FY/13 includesa net reg
Slide 12: 4Q & FY '13 Financial Results - Details: Gas distribution
4Q & FY ‘13 Financial Results - Details Gas distribution 4Q ’13 earnings of $21.1M, or $0.37 per diluted share, an increase of $6.8M, compared to 4Q ’12 -- increase primarily due to: Normal weather in 4Q ‘13 compared to abnormally warm weather in 4Q ‘12, increased customer growth and decreased O&M e
Slide 13: 4Q & FY '13 Financial Results - Details: Gas distribution
4Q & FY ‘13 Financial Results - Details Gas distribution > 4Q’13 earnings of $21.1M, or $0.37 per diluted share, an increase of $6.8M, compared to 4Q 12 -- increase primarily due to: » Normal weather in4Q‘13 compared to abnormally warm weather in4Q‘12, increased customer growth and decreased O&M exp
Slide 14: 4Q & FY '13 Financial Results - Details: Corporate
FY & 4Q ‘13 Earnings 4Q & FY ‘13 Financial Results - Details Corporate 4Q ‘13 costs were $2.5M, or $0.05 per diluted share, an improvement of $1.0M, compared to 4Q ’12 -- improvement primarily due to: Tax benefits associated with unitary filing requirements for state income taxes & an increase in AF
Slide 15: Debt Maturities & Liquidity
FY & 4Q ‘13 Earnings Debt Maturities & Liquidity Available Liquidity Debt Maturities ($M) * Remarket $27.5M of UI tax exempt bonds * * Equity Debt Moody’s Upgrade – outlook for each company is stable UIL to Baa2 from Baa3 UI to Baa1 from Baa2 CNG to A3 from Baa1 SCG to Baa1 from Baa2 BGC to Baa1 fro
Slide 16: Debt Maturities & Liquidity
Debt Maturities ($M) $100 $90 $10 A $11 - 1 2014 2015, 2016 mSCG, CNG & Berkshire mUI 2017 * Remarket $27.5M of UI tax exempt bonds Debt Maturities & Liquidity <q Available Liquidity $ Millions Cash $69 Existing credit facilities $400 Borrowings under credit facilities 90 Outstanding letters of cred
Slide 17: '14 Consolidated Earnings Guidance
FY & 4Q ‘13 Earnings ‘14 Consolidated Earnings Guidance * ‘14 guidance reflects a full year’s dilution from the UIL equity issuance on 10/2/13. The approximate dilutive impact on ‘14 eps is $0.25 per diluted share. FY & 4Q ‘13 Earnings ‘14 Earnings Guidance Assumptions Electric distribution & Other
Slide 18: '14 Earnings Guidance Assumptions
‘14 Earnings Guidance Assumptions <q Electric distribution & Other » Retail revenue increase from the electric distribution ‘13 rate proceeding > Decreases in pension & postretirement costs of approx. $6.0M, pre-tax, or $0.06 per diluted share - primarily driven by increases in discount rates as of
Slide 19: '14 Earnings Guidance Assumptions
‘14 Earnings Guidance Assumptions <q Gas distribution » Retail revenue increase for CNG from its ‘13 rate case proceeding » Continuing progress in the strategic growth plan of adding gas heating customers; assumes incremental customers of 15,800 in 2014, plus revenue growth from the new heating cust
Slide 20: Questions
FY & 4Q ‘13 Earnings Questions