Uil Co. Ltd. · KRX:049520
Uil — FY2010 Earnings Presentation
24 slides from Uil's earnings presentation, Feb 22, 2011
Slide 1: 4Q & FY 2010 Earnings Conference Call
EXHIBIT 99.1 4Q & FY 2010 Earnings Conference Call February 23, 2011 1 4Q ’10 Earnings
Slide 2: Important Note to Investors
Important Note to Investors 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, pla
Slide 3: 2010 Accomplishments/Milestones
2010 Accomplishments/Milestones ü 13% increase in 2010 net income, excluding acquisition & transition related expenses, compared to 2009 ü Transformative gas companies acquisition completed within six months of announcement ü GenConn Devon became operational ü GenConn Middletown - 92.4% complete as
Slide 4: Gas Company Integration
Gas Company Integration Working diligently internalizing the Transition Services Agreement (TSA) › Support services such as IT, Finance and Human Resources provided by Iberdrola, USA (IUSA) with the ability to terminate any service given 90 days notice Integration activities are well underway › Impl
Slide 5: 2012 Shared Services Identified Savings
2012 Shared Services Identified Savings Expected $11.6M of Identified Savings net 5 4Q ’10 Earnings
Slide 6: Regulatory proceedings: SCG overearnings, ROE, rate case appeals, UI decoupling
SCG Potential Overearnings Generic ROE Proceeding › DPUC docket opened 12/28/10 › Scheduled: draft - 3/21/11, final - 4/13/11 › Scheduled: draft - 3/25/11, final - 4/13/11 SCG/CNG Rate Case Appeals UI Electric Decoupling › Pending at the CT Supreme Court › Continued until final decision on pilot to
Slide 7: Bonus Depreciation 2010 & 2011
Bonus Depreciation 2010 & 2011 Cash* EPS* 2010A 2011P $97 million $ (0.05) * Based on current expectations Efficient use of cash benefits from bonus depreciation › Expected pension contributions of $65-$75M to the electric and gas pension plans in 2011 › Reduces pension costs and increases rate base
Slide 8: 2010 Financial Results - Details
WIL 2010 Financial Results - Details UIL HOLDINGS COR SEGMENTED CONSOLIDATED NET INCOME SUMMARY Quarter Ended December 31, Full Year Ended December 31, 2010 2009 Difference 2010 2009 Difference Net Income (Loss) (SM) Electric distribution, CTA and Other 37 $s 14 $s 23 35 $§ 370=C«S$ 38 Electric tran
Slide 9: 2010 Financial Results - Details
2010 Financial Results - Details Electric distribution, CTA & other › 12% increase in net income compared to ’09 » Increased operating income due to rate increase effective 1/1/10, partially offset by lower CTA rate base » Earnings of $1.2M from UI’s equity investment in GenConn » Average earned ROE
Slide 10: Debt Maturity and Liquidity Profile
Debt Maturity and Liquidity Profile Near-Term Debt Maturities Liquidity Overview (12/31/10) ($M) ($M) * UI Equity Bridge Loan UIL Debt retired 2/15/11 No Expect no need for external equity for at least the next 3 years * To be remarketed Amounts may not add due to rounding. 10 4Q ’10 Earnings
Slide 11: 2011 Capex Update
2011 Capex Update ($ millions) Major Variance Explanations Central Facility New business main & services, system improvements, fleet, IT Capital costs relating to the integration of the gas companies, mainly IT-related The annual long-term capital spending update will be presented at the Fall EEI Fi
Slide 12: Updated Near-Term Average Rate Base Profile
Updated Near-Term Average Rate Base Profile Rate Base (Excluding GenConn Equity Investments): 36% 38% 37% 40% 42% 43% 1% 3% 24% 24% 23% 7% 5% 22% 23% 22% 39% 40% 35% 38% 28% 30% Electric distribution Electric transmission CTA Gas distribution* GenConn Equity Investments: UI’s 50% Share ($M): 2010A 2
Slide 13: 2011 Operational Snapshot
Assumptions › Bonus depreciation is expected to have a net impact of ($0.05) per share › Includes one-time costs for the transition of the gas distribution business support services from IUSA, as well as the on-going integration costs , 2011 Operational Snapshot › Integration of all of the regulated
Slide 14: 2012 Operational Snapshot
Assumptions › Bonus depreciation is expected to have a net impact of ($0.10) per share 2012 Operational Snapshot › Integration of all of the regulated businesses with an emphasis on process integration initiatives and best practices › Completely exiting the TSA › Continued focus on management of O&M
Slide 15: Closing Remarks
Closing Remarks Ø Closed on gas company acquisitions & moving forward with integration activities with 2011 being a transition year Ø GenConn Devon operational - Middletown expected to be fully operational by June 2011 Ø Expecting to earn allowed returns on all regulated businesses on an aggregate b
Slide 16: OIL
OIL UIL HOLDINGS CORPORATION
Slide 17: Appendix
OIL UIL HOLDINGS CORPORATION
Slide 18: Expected Impacts of Bonus Depreciation - 2010 & 2011
Expected Impacts of Bonus Depreciation - 2010 & 2011 18
Slide 19: Average Rate Base 2010 - 2015 Current Forecast vs. EEI Forecast
Average Rate Base 2010 - 2015 Current Forecast vs. EEI Forecast ($M) $2,326 $2,404 $2,246 $2,246 $2,500 $2,087 $2,093 $2,166 $1,920 $1,930 $1,791 $2,000 $1,777 $882 $811 $885 $788 $869 $799 $777 $863 $1,500 $751 $766 $857 $1,025 $514 $538 $529 $561 $1,000 $496 $511 $422 $435 $405 $405 $401 $407 $500
Slide 20: UI Transmission - NEEWS Investment
UI Transmission - NEEWS Investment UI Participation in CL&P Project: › UI’s portion of investment: greater of $60M or 8.4% of CL&P’s costs for the CT portions … › 8.4% currently estimated at approximately $69M (increased from original estimate of $60M) › First deposit made in December 2010 Refreshed
Slide 21: Renewable-Enabling Transmission
Renewable-Enabling Transmission Significant Region-Wide Need: Potential Solutions Under Study › RPS requirement > 3x current › Need will likely be satisfied by a portfolio available renewables* of projects › CT requirement is > UI’s entire load › One promising example is shown below › Gap will be fi
Slide 22: UIL - Corporate Structure, Service Areas
UIL - Corporate Structure, Service Areas UIL Holdings Corporation Service Area Key UI SCG CNG Berkshire Overlapping Territory The United Illuminating Southern Connecticut Gas Connecticut Natural Gas Berkshire Gas Company Company (UI) (SCG) (CNG) (Berkshire) › Service territory: 335 sq › Service terr
Slide 23: Regulatory Overview
Regulatory Overview › Connecticut Department of Public Utility Control (DPUC) › Currently operating under rates established in 2009* Distribution › Allowed ROE of 8.75%, based on a capital structure of 50.0% equity › Federal Energy Regulatory Commission (FERC) › Transmission trued up on an annual ba
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