Slide 1: Fourth Quarter 2023
Fourth Quarter 2023 Monday, February 26, 2024 The meeting will begin at 9:30 AM AT / 8:30 AM ET
Slide 2: Forward Looking Information, Non-GAAP Measures & Other
Forward Looking Information, Non-GAAP Measures & Other FORWARD-LOOKING INFORMATION regulatory and political risk; operating and maintenance risks; Readers are cautioned not to place undue reliance on FLI, as This MD&A contains “forward-looking information” (“FLI”) and changes in economic conditions;
Slide 3: Business Update
Business Update Scott Balfour PRESIDENT & CEO 2
Slide 4: Financial Highlights
Financial Highlights Q4 2023 Adjusted EPS1,2 2023 Adjusted EPS1,2 $3.20 $0.17 $0.93 $0.17 $3.03 $2.96 $0.76 $0.63 Highlights Q4 2022 Q4 2023 2022 2023 • 17% decrease in quarterly adjusted EPS1, and 2% decrease in annual adjusted EPS1 excluding the impact of a $45M TGH award2 Q4 2023 Reported EPS2 20
Slide 5: 2023 Operational Highlights
2023 Operational Highlights Tampa Electric and Nova Scotia Power1,2,3 Highlights: 33%+ reduction in coal % OF GWh GENERATION3 4% 5% • The Maritime Link (NSPML) delivered over 130% of contractually used for generation 10% required flows at TEC, compared to 2022 4% 18% 18% • TE Invested over $250M USD
Slide 6: Executing On Our Capital Plan
Executing On Our Capital Plan 2024 – 2026 Forecasted Capital Spend1,2,3 Solar – Tampa Electric $8.9B • Completed solar wave 2 with four additional projects going into service on December 1, 2023 Driving 7-8% Rate Base • Total solar at TEC now 1,255 MW, representing 17% of capacity Growth • Through D
Slide 7: Regulatory Update
Regulatory Update • In December 2023, the FPSC approved Peoples Gas’ rate request in a fully litigated process – new rates commenced in January 2024 • In January 2024, NSPI filed a proposal with the regulator for the Province to acquire $117M of the FAM balance, providing timely recovery and reducin
Slide 8: Financial Highlights
Financial Highlights Greg Blunden CHIEF FINANCIAL OFFICER 7
Slide 9: Quarterly Highlights
Quarterly Highlights Q4 2023 Adjusted EPS1,2 2023 Adjusted EPS1,2 $0.93 $3.20 $0.17 $0.17 $3.03 $2.96 $0.76 $0.63 Q4 2022 Q4 2023 2022 2023 Q4 2023 Adjusted Net Income1,2 2023 Adjusted Net Income1,2 $850 $45 $249 $45 $805 $809 $204 $175 2022 2023 2022 2023 Note: Millions of Canadian dollars (except
Slide 10: Q4 2023 Adjusted EPS Waterfall
Q4 2023 Adjusted EPS Waterfall Q4 2023 Adjusted EPS1 $0.17 $0.08 $0.06 $0.05 $0.04 $0.04 $0.02 $0.93 0.76 $0.76 $0.78 $0.73 $0.69 $0.65 $0.63 $0.63 Q4 2022 TGH Award TGH Award Q4 2022 Canadian Emera Energy Gas Utilities Florida Corporate & WA Share Q4 2023 1 1 2,3 1 Adjusted EPS Adjusted EPS Electri
Slide 11: 2023 Adjusted EPS Waterfall
2023 Adjusted EPS Waterfall 2023 Adjusted EPS1 $0.09 $0.05 $0.15 $0.17 $0.11 $0.09 $0.06 $0.02 $3.20 $3.14 $3.23 $3.13 $3.04 $3.03 $3.03 $3.03 2.98 $2.96 $2.96 2022 TGH Award TGH Award 2022 Foreign Canadian Florida & Corporate3 WA Share Gas Utilities Emera 2023 1 1 2 1 Adjusted EPS Adjusted EPS Exch
Slide 12: Record Annual Cash From Operations
Record Annual Cash From Operations before changes in working capital Cash Flow from Operations1,2 before changes in working capital Cash Flow Drivers: 104% $2,336 + Fuel and storm deferral recovery of $678M Increase in operating in 2023 at Tampa Electric cash flow3 over 2022 + Collected final outsta
Slide 13: Investment Grade in Focus
Investment Grade in Focus Recovery of fuel and storm cost deferrals • Effective fuel and storm mechanisms at Tampa Electric and NSPI • Will recover 100% of 2022 fuel and storm deferrals at TEC by the end 2024 • New fuel rates + agreement with Province of NS stabilizes fuel deferral at NSPI Prudent i
Slide 14: Upcoming Investor Events
Upcoming Investor Events Scotiabank Annual Energy Conference - Miami • February 28th – February 29th, 2024 BoA Power, Gas and Solar Leaders Conference - NYC • March 4th – 6th, 2024 Q1 2024 Results & Analyst Call • May 13th, 2024 Emera Annual General Meeting - Virtual • May 23, 2024 2024 Analyst Day
Slide 15: Appendix
Appendix 14
Slide 16: Capital Forecast by Affiliate
Capital Forecast by Affiliate 2024F1 2025F 2026F 2024–2026 Total US OPERATIONS Tampa Electric $ 1,275 $ 1,535 $ 1,235 $ 4,045 Peoples Gas 310 385 310 1,005 Seacoast 5 10 - 15 New Mexico Gas 150 125 115 390 Emera Caribbean 80 80 80 240 US OPERATIONS CAPITAL FORECAST (USD millions) $ 1,820 $ 2,135 $ 1
Slide 17: 2024-2026 Additional Potential Investments
2024-2026 Additional Potential Investments 2024F 2025F 2026F 2024–2026 Total US OPERATIONS Tampa Electric: Carbon Capture & Sequestration $ - $ - $ 275 $ 275 Tampa Electric: Incremental Renewables - 95 140 235 Peoples Gas: Other - 35 35 70 New Mexico Gas: LNG Storage Facility 10 100 70 180 Emera Car
Slide 18: Rate Base Forecast by Affiliate
Rate Base Forecast by Affiliate1 2022A 22’–26’ 22’–26’ CAGR 2022A 2 2023A 2024F 2025F 2026F Adjusted FX CAGR Adjusted FX US OPERATIONS Tampa Electric3,4 $ 9,230 $ 9,230 $ 10,195 $ 11,040 $ 11,900 $ 12,750 8.4% Peoples Gas3 1,880 1,880 2,185 2,490 2,720 2,990 12.3% Seacoast Gas5,6 195 195 180 180 185
Slide 19: Interest Expense Impacts
Interest Expense Impacts Interest Expense Impacts by Segment (Pre-tax, Compared to 2022) in millions of CAD As of December 31, 2023 Three months ended Year ended Florida Electric $ (9) $ (86) Canadian Utilities (5) (34) Gas Utilities & Infrastructure (14) (48) Other Electric (1) (4) Other (6) (44) T
Slide 20: Foreign Exchange and Interest Rate Exposure
Foreign Exchange and Interest Rate Exposure Foreign Exchange Exposure As of December 31, 2023 Approximate % of USD Earnings Hedged Rate 2024 48% 1.33 2025 27% 1.35 Interest Rate Exposure As of December 31, 2023 Notional amount (in millions of CAD) Percentage of total debt Total Debt (Short term + lo
Slide 21: Emera Energy Quarterly Adjusted Earnings Contribution
Emera Energy Quarterly Adjusted Earnings Contribution Millions $CAD Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Marketing & Trading $ 25 (7) 8 39 53 (25) (4) 19 Maritimes Canada - (1) (1) (3) (1) 3 - (1) Bear Swamp 2 2 1 5 4 2 7 7 TOTAL ADJUSTED NET INCOME1 $ 27 (6) 8 41 56 (20) 3 25 Millions $C
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended December 31 Year ended December 31 2023 2022 2023 2022 Florida Electric $ 115 124 $ 627 596 Canadian Electric 68 46 247 222 Gas Utilities & Infrastructure 59 72 214 221 Other Electric Utilities 4 8 35 29 Other, excluding corporate costs 20 36 42 49 Adjusted