Uil Co. Ltd. · KRX:049520
Uil — Q1 2014 Earnings Presentation
20 slides from Uil's earnings presentation, May 7, 2014
Slide 1: 1Q '14 Earnings Presentation
1Q ‘14 Earnings 1Q ‘14 Earnings PresentationMay 8, 2014 Exhibit 99.2
Slide 2: Note to Investors
1Q ‘14 Earnings 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, exp
Slide 3: Earnings Summary
1Q ‘14 Earnings 1Q ‘14 Earnings Summary 1Q ’14 consolidated earnings of $62.4M, or $1.09 per diluted share – net income up 20% compared to the same period in ’13 - excluding after-tax acquisition-related expensesIncluding after-tax acquisition-related expenses of $6.9M, or $0.12 per diluted share, 1
Slide 4: Strategic Initiatives
1Q ‘14 Earnings Strategic Initiatives Growth – through investment in electric and gas infrastructures Growth – through addition of new natural gas heating customersSupported by CT state legislationPursuing investment opportunities in Renewable Generation and other projectsConstruction on Renewables
Slide 5: Pending Acquisition of Philadelphia Gas Works Operations
1Q ‘14 Earnings Pending Acquisition of Philadelphia Gas Works Operations Announced on 3/3 * Description Acquisition of assets and certain liabilities of Philadelphia Gas Works (“PGW Operations”) Purchase Price Total consideration of $1.86B; PGW Operations acquired on a cash-free and debt-free basis
Slide 6: Strategic Rationale for Acquisition
1Q ‘14 Earnings Strategic Rationale for Acquisition Growth Opportunities Opportunities to drive long-term growth through infrastructure investments Diversification Increased operational diversification improves business profile and profitability LDC Platform Leverage business expertise, processes an
Slide 7: Acquisition – Next Steps
1Q ‘14 Earnings Acquisition – Next Steps Approvals Philadelphia City Council (City Council)Pennsylvania Public Utility Commission (PA PUC)Ordinance has been sent to the City Council, but has not yet been introducedOnce introduced, the Ordinance needs to be approved by a majority vote of the City Cou
Slide 8: Long-Term Organic Growth: 10-yr Capex Forecast
1Q ‘14 Earnings Long-Term Organic Growth(1)10-yr Capex Forecast (‘14-’23) * (1) Excludes pending PGW acquisition* Includes Renewable Generation - $47M ’14-’18Amounts may not add due to rounding 2014-2023P 2014-2023P
Slide 9: Projected Avg. Rate Base Growth ('14-'18)
1Q ‘14 Earnings Projected Avg. Rate Base Growth* (‘14-’18) * * Excludes pending PGW acquisition** Gas forecast includes 338 (h)(10) election(1) Including Renewable Generation(2) Represents investments at UIL CorporateAmounts may not add due to rounding $M ‘14-’18Rate Base CAGR 8.3% GasDistribution:7
Slide 10: Gas Heating Customers Added
1Q ‘14 Earnings Gas Heating Customers Added 3,524 households & businesses in 1Q ’14 22% of this year’s goal of 16,000 conversionsAdded 34,427 households & businesses over the three years ‘11-’13. Target was 30,000-35,000. * On target to meet ’14 goal of 16,000 conversions
Slide 11: Gas Heating Customer Additions '10–'13 Actuals & Projections
1Q ‘14 Earnings Gas Heating Customer Additions ’10–’13 Actuals & Projections for ‘14–‘23 *
Slide 12: Regulatory Update
1Q ‘14 Earnings Regulatory Update Gas Distribution Rate Case – CNGFinal decision issued by PURA on 1/29/14Draft of the private letter ruling (PLR) request on the 338(h)(10) impact on ratemaking was filed with PURA on 3/14/14 - as required by PURA in the final decisionIn early March, the CT OCC filed
Slide 13: State Legislative Update
1Q ‘14 Earnings State Legislative Update General Session ends 5/7Election year for legislators and governorGovernor Malloy will run for re-electionRepublicans will determine nominee this summer Proposed legislation of interest to UILElectric Consumer Bill of Rights (SB 2)Tree Trimming Modifications
Slide 14: Financial Results by Segment
1Q ‘14 Earnings 1Q ‘14 Financial Results by Segment *
Slide 15: Financial Results - Details
1Q ‘14 Financial Results - Details Consolidated UIL earnings1Q ’14 consolidated net income up 20% over 1Q ’13 $62.4M, or $1.09 per diluted share, an increase of $10.6M, or $0.08 per diluted share, excluding after-tax acquisition-related expensesIncluding after-tax acquisition-related expenses of $6.
Slide 16: Gas distribution 1Q '14 Financial Results - Details
Gas distribution1Q ’14 earnings of $39.0M, or $0.68 per diluted share, an increase of $7.5M compared to 1Q ’13 -- increase primarily due to:Colder weather, increased normalized usage per customer and increased customer growth1Q ‘14 weighted average heating degree days compared to normal and 1Q ‘13Im
Slide 17: Financial Results - Details: Gas distribution (cont.) and Corporate
1Q ‘14 Financial Results - Details Gas distribution (cont.)Preliminary avg. ROEs* as of 3/31/14: SCG 9.45–9.65%, CNG 9.50–9.70%Preliminary avg. weather normalized ROEs* as of 3/31/14: SCG 8.26–8.46%, CNG 8.90-9.10%Corporate1Q ’14 costs were $6.1M, or $0.11 per diluted share, an increase of $3.3M com
Slide 18: Debt Maturities & Liquidity
1Q ‘14 Earnings Debt Maturities & Liquidity Available Liquidity** Debt Maturities ($M) * Remarket $27.5M of UI tax exempt bonds * * EquityDebt Pending PGW AcquisitionOn 3/28/14 – entered into a $1.90B 364-day Bridge Term Loan Agreement ** Not including Bridge Term Loan Agreement
Slide 19: Reaffirming '14 Earnings Guidance
1Q ‘14 Earnings Reaffirming ‘14 Earnings Guidance(excludes impacts of pending PGW acquisition) *
Slide 20: Questions
1Q ‘14 Earnings Questions