Fortis Inc. · TSX:FTS
Fortis — Investor Presentation (December 2022)
14 slides from Fortis's investor presentation, December 2022
Slide 1: Retail Presentation
Retail Presentation December 2022 1
Slide 2: 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 3: A Premium Energy Delivery Business
A PREMIUM ENERGY DELIVERY BUSINESS 93% Transmission & Distribution Assets HIGH QUALITY PORTFOLIO 10 Regulated Utility Businesses 3.4M Electric & Gas Customers 9,100 Employees 99% Regulated Utility Assets $26B Market Capitalization(1) 9% Average Annual 10-Year Total Shareholder Return(1) $34B 2022F R
Slide 4: Our Vision & Strategy
OUR VISION & STRATEGY A PREMIUM NORTH AMERICAN UTILITY DELIVERING A CLEAN ENERGY FUTURE DRIVING Operational Excellence Financial Strength SUSTAINABLE Diversified Regulated Portfolio GROWTH Substantially Autonomous Business Model Strong Governance 4
Slide 5: Five-Year Plan at a Glance
FIVE-YEAR PLAN AT A GLANCE 2023-2027 Capital Plan $22.3B Capital Plan Supports Continued Focus on Up $2.3B From Prior Plan Low-Risk Rate Base Growth Customer Affordability $46.1B • Targeting controllable operating cost increases below inflation, consistent with $34.0B historical practice +$0.5B $22.
Slide 6: Capital Plan Supports Cleaner Energy Future
CAPITAL PLAN SUPPORTS CLEANER ENERGY FUTURE Direct Cleaner Energy Investments 35% Transmission $2.7B Delivering Renewables to the Grid • ITC MISO LRTP and wind/ solar interconnections $22.3B $1.8B Renewable Energy Capital Plan • UNS Energy: renewables and energy storage 2023-2027 • Caribbean Utiliti
Slide 7: Executing on a Cleaner Energy Future
PATHWAY TO 2050 NET-ZERO TARGET EXECUTING ON A CLEANER ENERGY FUTURE 2019 Achieved 20% GHG Emissions Reduction Since 2019 2021 50% GHG Emissions Reduction Target Coal-Free Generation Mix 2030 2032 2035 Net-Zero Target (Scope 1) 75% GHG Emissions Reduction Target by 2035 Compared to 2019 Levels ADDIN
Slide 8: Long Capex Runway
LONG CAPEX RUNWAY Responding to stakeholder expectations and capitalizing on opportunities to expand & extend growth Business development in existing footprint Connect more renewable generation to the grid Prepare grid for additional electrification Build more renewable generation Invest in technolo
Slide 9: Current Regulatory Calendar
Q3 REGULATORY CURRENT UPDATE & REGULATORY CALENDAR OUTLOOK Q3 UPDATE REGULATORY CALENDAR FERC MISO Base ROE (1) • In August 2022, the DC Circuit Court vacated certain FERC orders that established the methodology used to calculate the MISO base ROE • Matter dates back to complaints filed at FERC in 2
Slide 10: Ongoing Regulatory Proceedings
ONGOING REGULATORY PROCEEDINGS ITC Midwest Capital Structure Complaint Denied – In November 2022, FERC denied the complaint filed by the Iowa Coalition for Affordable Transmission (ICAT), which sought to lower ITC Midwest’s equity ratio from 60% to 53%; FERC concluded that ICAT had not demonstrated
Slide 11: No Discrete Equity Required to Fund 2023-2027 Capital Plan
NO DISCRETE EQUITY REQUIRED TO FUND 2023-2027 CAPITAL PLAN Predictable Funding Plan Capital Plan Funded Primarily with Cash from Operations and Debt at Regulated Subsidiaries Net Debt(2) • Regulated debt used to repay maturing debt, and fund capital 33% expenditures and operating requirements Equity
Slide 12: Dividend Guidance Supported by Long-Term Growth Strategy
DIVIDEND GUIDANCE SUPPORTED BY LONG-TERM GROWTH STRATEGY 49 YEARS of Consecutive Dividend Increases 4-6% Annual Dividend Growth Guidance through 2027 22F 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 12
Slide 13: Why Invest in Fortis?
WHY INVEST IN FORTIS? Focused on Geographic & 4-6% SAFE, ENERGY Regulatory ANNUAL DIVIDEND WELL-RUN DELIVERY DIVERSITY Growth Guidance Local Utilities LOW-RISK Virtually ESG Growth All INNOVATIVE REGULATED Leader Profile 13
Slide 14: Fortis
FORTIS