Fortis Inc. · TSX:FTS
Fortis — Shareholder Meeting (May 2023)
47 slides from Fortis's shareholder meeting presentation, May 4, 2023
Slide 1: Annual Meeting of Shareholders 2023
2023 ANNUAL MEETING OF SHAREHOLDERS 1 1
Slide 2: Voting Instructions
VOTING INSTRUCTIONS FORTIS.
Slide 3: Question Instructions
ies Ws QUESTION INSTRUCTIONS FORTIS.
Slide 4: Jo Mark Zurel, Chair of the Board
JO MARK ZUREL CHAIR OF THE BOARD 4
Slide 5: Annual Meeting of Shareholders 2023
ANNUAL MEETING OF SHAREHOLDERS 2023 5
Slide 6: Douglas Haughey Years of Service
DOUGLAS HAUGHEY 14 YEARS OF SERVICE 6
Slide 7: Paul Bonavia Years of Service
PAUL BONAVIA 6 YEARS OF SERVICE 7
Slide 8: Annual Meeting of Shareholders 2023
ANNUAL MEETING OF SHAREHOLDERS 2023 8
Slide 9: Meeting Participants
MEETING PARTICIPANTS DAVID HUTCHENS JOCELYN PERRY JIM REID President and Executive Vice President, Executive Vice President, Chief Executive Officer Chief Financial Officer Sustainability and Chief Legal Officer 9
Slide 10: Meeting Agenda
MAY 4, 2023 MEETING AGENDA Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Approach to Executive Compensation Voting Results Management Presentation Question Period 10
Slide 11: Appointment of Secretary and Scrutineers
AGENDA Appointment of Secretary and Scrutineers Financial Statements APPOINTMENT OF SECRETARY AND SCRUTINEERS Election of Directors Appointment of Auditors Approach to Executive Compensation Voting Results Management Presentation Question Period 11
Slide 12: Presentation of Financial Statements for the Year Ended December 31, 2022
AGENDA Appointment of Secretary and Scrutineers PRESENTATION OF FINANCIAL Financial Statements STATEMENTS FOR THE YEAR ENDED Election of Directors DECEMBER 31, 2022 Appointment of Auditors Approach to Executive Compensation Voting Results Management Presentation Question Period 12
Slide 13: Voting Procedure
VOTING PROCEDURE FORTIS.
Slide 14: Election of Directors
AGENDA ELECTION OF DIRECTORS Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Jo Mark Zurel David G. Hutchens Tracey C. Ball Pierre J. Blouin Lawrence T. Borgard Maura J. Clark (Chair of the Board) Approach to Executive Compensation Voting R
Slide 15: Appointment of Auditors
AGENDA Appointment of Secretary and Scrutineers Financial Statements APPOINTMENT OF AUDITORS Election of Directors Appointment of Auditors Approach to Executive Compensation Voting Results Management Presentation Question Period 15
Slide 16: Advisory Vote on Approach to Executive Compensation
AGENDA Appointment of Secretary and Scrutineers Financial Statements ADVISORY VOTE ON APPROACH TO Election of Directors EXECUTIVE COMPENSATION Appointment of Auditors Approach to Executive Compensation Voting Results Management Presentation Question Period 16
Slide 17: Voting Results
AGENDA Appointment of Secretary and Scrutineers Financial Statements VOTING RESULTS Election of Directors Appointment of Auditors Approach to Executive Compensation Voting Results Management Presentation Question Period 17
Slide 18: Annual Meeting of Shareholders 2023
2023 ANNUAL MEETING OF SHAREHOLDERS 18 18
Slide 19: Asking Questions
ASKING QUESTIONS FORTIS.
Slide 20: Forward Looking Information
FORWARD LOOKING INFORMATION Fortis 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 (collectively referred to as "forward-looki
Slide 21: David Hutchens, President and CEO
DAVID HUTCHENS PRESIDENT AND CEO 21
Slide 22: Fortis Executive Team
FORTIS EXECUTIVE TEAM JIM REID GARY SMITH STUART LOCHRAY JOCELYN PERRY Executive Vice President, Executive Vice President, Senior Vice President, Executive Vice President, Sustainability and Operations and Innovation Capital Markets and Business Chief Financial Officer Chief Legal Officer Developmen
Slide 23: Fortis Utility Leadership
FORTIS UTILITY LEADERSHIP Linda Apsey Roger Dall’Antonia Ruth Forbes Christopher Capone Susan Gray Scott Hawkes ITC FortisBC FortisTCI Central Hudson UNS Energy FortisOntario Richard Hew Gary Murray Kay Menzies Jason Roberts Janine Sullivan Caribbean Utilities Newfoundland Power Fortis Belize Mariti
Slide 24: A Premium North American Company
A PREMIUM NORTH AMERICAN COMPANY 24
Slide 25: Teamwork and Tenacity: Hurricane Fiona
TEAMWORK AND TENACITY HURRICANE FIONA 25
Slide 26: Steadfast Focus on Safety and Reliability
STEADFAST FOCUS ON SAFETY AND RELIABILITY 26
Slide 27: $4 Billion in Capital Investments
$4 BILLION IN CAPITAL INVESTMENTS OVER $600 MILLION IN CLEANER ENERGY Note: Capital Expenditures represents a Non-U.S. GAAP financial measure. Refer to appendix for the Non-U.S. GAAP reconciliation. 27
Slide 28: Wataynikaneyap Power Transmission Project
WATAYNIKANEYAP POWER TRANSMISSION PROJECT 85% COMPLETE 28
Slide 29: Clean Energy Goals on Track
CLEAN ENERGY GOALS ON TRACK ACHIEVED 28% DIRECT GHG EMISSIONS REDUCTION SINCE 2019 29
Slide 30: $5.9 Billion in Cleaner Energy Investments Planned
$5.9 BILLION IN CLEANER ENERGY INVESTMENTS PLANNED 2023-2027 Note: Capital Expenditures represents a Non-U.S. GAAP financial measure. Refer to appendix for the Non-U.S. GAAP reconciliation. 30
Slide 31: Supporting Customers
SUPPORTING CUSTOMERS 31
Slide 32: Jocelyn Perry, Executive Vice President, CFO
JOCELYN PERRY EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER 32
Slide 33: 2022 Reported and Adjusted EPS
2022 REPORTED AND ADJUSTED EPS REPORTED EPS ADJUSTED EPS $2.78 $2.78 ADJUSTED EPS GREW $2.61 $2.59 BY ~6% IN 2022 (1) 2021 2022 2021 2022 (1) Excluding impact of foreign exchange. Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to appendix for the Non-U.S. GAAP reconciliation. 33
Slide 34: Q1 2023 Adjusted Net Earnings of $439 Million
Q1 2023 ADJUSTED NET EARNINGS OF $439 MILLION OR $0.91 CENTS PER COMMON SHARE INCREASE OF $0.13 PER COMMON SHARE COMPARED TO Q1 2022 Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to appendix for the Non-U.S. GAAP reconciliation. 34
Slide 35: Five-Year $22.3 Billion Capital Plan
FIVE-YEAR $22.3 BILLION CAPITAL PLAN LOW RISK, BALANCED AND HIGHLY EXECUTABLE THE LARGEST IN OUR HISTORY 35
Slide 36: Plan Supports Average Annual Rate Base Growth of ~6%
RATE BASE PLAN SUPPORTS AVERAGE ANNUAL RATE $46.1B BASE GROWTH OF ~6% $34.1B 2022 2027F 36
Slide 37: Funding Plan Remains on Track
FUNDING PLAN REMAINS ON TRACK STRONG LIQUIDITY POSITION SUPPORTS INVESTMENT-GRADE CREDIT RATINGS 37
Slide 38: Sale of Aitken Creek Announced for ~$400 Million
SALE OF AITKEN CREEK ANNOUNCED FOR ~$400 MILLION PROVIDES ADDITIONAL FUNDING FLEXIBILITY TO SUPPORT OUR GROWTH STRATEGY 38
Slide 39: Annual Dividend Growth Guidance of 4-6% Through 2027
ANNUAL DIVIDEND GROWTH GUIDANCE OF 4-6% THROUGH 2027 39
Slide 40: Superior 20-Year Total Shareholder Return
SUPERIOR 20-YEAR TOTAL SHAREHOLDER RETURN OVER A 20-YEAR TIMEFRAME, FORTIS Fortis HAS DELIVERED AVERAGE ANNUAL TOTAL SHAREHOLDER RETURNS OF APPROXIMATELY 12% S&P/TSX Capped Utilities Index S&P/TSX Composite Index 2003 2007 2011 2015 2019 2023 Note: Cumulative 20-year total shareholder return as at M
Slide 41: 49 Years of Consecutive Dividend Increases
49 YEARS OF CONSECUTIVE DIVIDEND INCREASES 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 22 41
Slide 42: Ty ag ® nd
Ty ag ® nd
Slide 43: Question Period
QUESTION PERIOD 43
Slide 44: TTT ELT PP
TTT ELT PP
Slide 45: Appendix
APPENDIX FORTIS... 45
Slide 46: Annual Non-U.S. GAAP Reconciliation
ANNUAL NON -U.S. GAAP RECONCILIATION ($ millions, except as shown) 2022 2021 Net Earnings (1) 1,330 1,231 Adjusting Items: Unrealized gain on mark-to-market of derivatives (2) (20) (12) Lake Erie Connector project suspension costs (3) 10 - Revaluation of deferred income tax assets (4) 9 - Adjusted N
Slide 47: Quarterly Non-U.S. GAAP Reconciliation
QUARTERLY NON -U.S. GAAP RECONCILIATION ($ millions, except as shown) Q1 2023 Q1 2022 Net Earnings (1) 437 350 Adjusting Item: Unrealized loss on mark-to-market of derivatives (2) 2 19 Adjusted Net Earnings 439 369 Adjusted Earnings per Share ($) $0.91 $0.78 Capital Expenditures Additions to propert