Uil Co. Ltd. · KRX:049520
Uil — Q2 2009 Earnings Presentation
19 slides from Uil's earnings presentation, Aug 5, 2009
Slide 1: 2Q 2009 Earnings Conference Call
EXHIBIT 99.1 2Q 2009 Earnings Conference Call August 6, 2009 - transforming investment into future value 1
Slide 2: Important Note to Investors
Important 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, expectati
Slide 3: Discussion Topics
UIL Holdings 2Q 2009 Earnings Call Discussion Topics Ø 2Q 2009 Major Events » Earnings Summary » GenConn Update Ø State Regulatory Update Ø Capital Expenditure Program » Refreshed 10-year Capital Expenditure Program » Average Rate Base Growth » Smart Grid Grant Application Ø 2Q 2009 Earnings Detail
Slide 4: 2Q & YTD 2009 Financial Results - Summary
2Q & YTD 2009 Financial Results - Summary 2Q ’09 earnings from continuing operations of $13.8 million, or $0.51 per share, compared to $11.3 million, or $0.45 per share, in 2Q ’08 YTD ’09 earnings from continuing operations of $25.9 million, or $0.99 per share, compared to $17.9 million, or $0.71 pe
Slide 5: GenConn: Joint venture between UI and NRG
Joint venture between UI and NRG Financing secured April 27, 2009 UI Equity Bridge Loan Devon groundbreaking May 29, 2009 4$121.5m in total à $69.3m drawn as of 6/30/09 4$57m due 6/1/10 with Devon In Service 4$64.5m due 6/1/11 with Middletown In Service NRG Equity Bridge Loan 4$121.5m in total Devon
Slide 6: State Regulatory Update
State Regulatory Update Distribution rate case has been concluded Ø Technical corrections reconsideration » DPUC reconsidered final decision issued on June 3, 2009 increased UI's revenue requirements by $0.655 million in 2009 and an incremental $0.284 million in 2010 Ø AG petition for Company invest
Slide 7: Revised 10-yr Capital Expenditure Program
Revised 10-yr Capital Expenditure Program ($ in millions) Total 2009P 2010P 2011P 2012P 2013P 2014-2018P 2009-2018P Distribution $ 95 $ 141 $ 147 $ 141 $ 122 $ 534 $ 1,178 Transmission $ 29 $ 47 $ 63 $ 80 $ 96 $ 91 $ 405 GenConn - Devon* $ - $ 57 $ - $ - $ - $ - $ 57 GenConn - Middletown* $ - $ - $
Slide 8: Distribution Investments
Distribution Investments ($ in millions) Total 2009P 2010P 2011P 2012P 2013P 2014-2018P 2009-2018P Aging Infrastructure $ 36.0 $ 49.1 $ 39.7 $ 48.4 $ 57.5 $ 276.9 $ 507.4 Capacity $ 19.8 $ 20.0 $ 18.3 $ 27.5 $ 26.5 $ 95.7 $ 207.8 System Operations $ 12.6 $ 16.1 $ 12.5 $ 10.1 $ 9.1 $ 53.8 $ 114.2 Cor
Slide 9: Transmission Investments
Transmission Investments ($ in millions) Total 2009P 2010P 2011P 2012P 2013P 2014-2018P 2009-2018P Aging Infrastructure $ 3.9 $ 24.9 $ 33.2 $ 30.2 $ 39.6 $ 67.0 $ 198.8 Capacity $ 14.1 $ 14.5 $ 9.5 $ 8.4 $ 19.7 $ 4.2 $ 70.4 Standards Compliance/Other $ 11.4 $ 7.1 $ 19.8 $ 41.5 $ 36.6 $ 19.7 $ 136.0
Slide 10: Revised Average Rate Base 2008-2013
Revised Average Rate Base 2008-2013 (Excluding GenConn Equity Investments) CAGR 5% 1% 4% 8% 39% 11% 37% 15% 19% 37% 38% 38% 35% 60% 59% 55% 47% 51% 46% Rate base growth even with a declining CTA balance Avg. GenConn Rate Base Equivalent $56m $174m $232m $224m Avg. GenConn Equity Investment $28m $ 87
Slide 11: UI's Smart Grid Grant Application
UI’s Smart Grid Grant Application $75m in 2010-2012 in two categories - seeking grant for 50% of total Ø Customer Interface - enabling technology to empower the customer » Advanced Metering - “Smart” meters with 2-way communication capability » Customer applications - - In-home displays, load contro
Slide 12: 2009 T&D Blended Allowed ROE of 10.1% - 10.2%
2009 T&D Blended Allowed ROE of 10.1% - 10.2% Transmission Distribution & CTA Generation 12 2Q ’09 Earnings
Slide 13: 2Q & YTD 2009 Financial Results
2Q & YTD 2009 Financial Results Quarter Ended June 30, Six Months Ended June 30, Net Income (Loss) ($M) UI Distribution, CTA and Other $ 8.1 $ 5.7 $ 2.4 $ 14.9 $ 8.0 $ 6.9 (1) (1) Transmission 6.2 6.2 - 12.3 11.0 1.3 Total UI Net Income $ 14.3 $ 11.9 $ 2.4 $ 27.2 $ 19.0 $ 8.2 UIL Corporate (0.5) (0.
Slide 14: Earnings Details Compared to the Same Periods in 2008
Earnings Details Compared to the Same Periods in 2008 Distribution, CTA & Other - favorable Net Income for the both the quarter and YTD Net Income: Favorable/(Unfavorable) ($M) Quarter Ended June Six Months Ended Ø 2Q ’09 - first full quarter implementing Revenue 30, '09 vs. '08 June 30, '09 vs. '08
Slide 15: Debt Maturity and Liquidity
Debt Maturity and Liquidity Debt maturity schedule as of 6/30/09 ($mm) Liquidity outlook ØUIL & UI have a $175 million joint credit $64.5 facility due December 22, 2011 » UIL able to borrow $50 million under facility $57.0 As of June 30, 2009: $51.0 $49.2 » UIL had $1 million outstanding » UI had $9
Slide 16: 2009 Earnings Per Share Guidance as of August 6, 2009
2009 Earnings Per Share Guidance as of August 6, 2009 Six Months Ended 2008 June 30, 2009 2009 EPS Guidance The United Illuminating Company $2.03 $1.04 $1.93 - $2.07 Distribution, CTA & Other 1.09 0.57 1.00 - 1.15 Transmission 0.94 0.47 0.90 - 0.95 Corporate (0.10) (0.05) (0.12) - (0.07) Total Conti
Slide 17: Q&A
Q&A 17 2Q ’09 Earnings
Slide 18: GenConn Energy - Peaking Generation
GenConn Energy - Peaking Generation Joint venture between UI and NRG Project Development Highlights Regulated COS approach Ø ROE, lifetime floor - 9.75% Locations Devon & Middletown Ø 50/50 debt/equity Approximate Cost $400 Million* Ø 30-year O&M costs reviewed annually Financing Attained April 27,
Slide 19: Overview of Recent Distribution Rate Decision
Overview of Recent Distribution Rate Decision ØAnnual true-up Revenue decoupling » If revenues < approved, rates will be adjusted to collect additional revenues » If revenues > approved, excess will be returned to customers ØDecoupling established for two-year pilot period ØEstablished a regulatory