Unitil Corporation · NYSE:UTL
Unitil — Shareholder Meeting (April 2019)
19 slides from Unitil's shareholder meeting presentation, Apr 24, 2019
Slide 1: Annual Meeting of Shareholders, April 24, 2019
SHAREHOLDERS ANNUAL MEETING OF April 24, 2019 Exhibit 99.1
Slide 2: Safe Harbor Provision
SAFE HARBOR PROVISION This presentation contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding Unitil Corporation’s (“Unitil”) financial condition, result
Slide 3: About Unitil
ABOUT UNITIL We provide energy for life, safely and reliably delivering natural gas and electricity in New England. Natural gas and electric distribution utility with operations in three states serving ~188,300 customers Electric: ~105,600 customers Gas: ~82,700 customers Diversified $1 billion of N
Slide 4: 2018 Highlights
2018 HIGHLIGHTS Eighth consecutive year of record earnings Net income rose 13.8% to $33.0 million EPS rose 8.3% to $2.23/share Selected Highlights Usource strategic review & divestiture Implemented rate changes to reflect lower tax rate from the Tax Cuts and Jobs Act Continued execution of long-term
Slide 5: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE UTL annualized returns of more than 14% over the past 1, 3, 5, and 10-year periods, significantly outperforming both the broader market and utility peers Earned ROE of 9.6% in-line with authorized returns Total Shareholder Return* PAGE * As of 12/31/2018
Slide 6: Increasing Dividends & Retention
INCREASING DIVIDENDS & RETENTION Unitil has continuously paid quarterly dividends since incorporation in 1984 For 2019, dividend increased $0.02 to an annualized dividend of $1.48 per share Payout ratio has declined from 88% in 2013 to 66% in 2018 Dividend Payout & Earnings Plowback ($ in millions)
Slide 7: What Our Customers Say
WHAT OUR CUSTOMERS SAY Ranked #1 in New England for overall customer satisfaction #1 – Overall satisfaction #1 – Providing reliable service #1 – Restoring electric service when outages occur #1 – Showing concern and caring #1 – Being easy to do business with #1 – Being responsive to customer needs #
Slide 8: Improving Safety & Reliability
IMPROVING SAFETY & RELIABILITY Electric System Average Interruption Duration (SAIDI) Industry-wide metric measuring the amount of time in minutes an average customer is without service Improving 10 year trend Gas Emergency Response Responded to >99.9% of calls in less than 60 minutes Average respons
Slide 9: Growing Sales
GROWING SALES Increased total sales margin by $6.9 million or 3.4% compared to prior year, net of tax reduction. 5-Year Gas and Electric margin CAGR of 5.3% More than 10,000 customers added in last 5 years NH gas franchise expansions Received regulatory approval for three new franchise requests to s
Slide 10: Investment Outlook
INVESTMENT OUTLOOK Significant investment opportunities in gas expansion, infrastructure replacement and grid modernization Forecasting 20% more investment in 2019-2021 than prior three years Capital Spending: Actual and Forecast $320 Million $385 Million ($ in millions) PAGE
Slide 11: Financial Strength
FINANCIAL STRENGTH Investment grade rating Standard & Poor’s issuer rating of BBB+ across Unitil Corporation and its subsidiaries Moody’s issuer rating of Baa2 (Unitil Corporation and Granite State) and Baa1 (Unitil Energy, Fitchburg, and Northern) Long-term financing of $30 million completed Q4 at
Slide 12: enersy .
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Slide 13: Building a Sustainable Future
BUILDING A SUSTAINABLE FUTURE New England is at the forefront of national efforts to address climate change Each state varies in goals and priorities Investment opportunities exist as industry transitions PAGE Maine New Hampshire Massachusetts Global Warming Solutions Act: GHG emissions 80% below 19
Slide 14: Corporate Strategies
CORPORATE STRATEGIES PAGE Smart Grid Smart Pipes Smart Fuels SMART INFRASTRUCTURE Our Mission is to safely and reliably deliver energy for life and provide our customers with affordable and sustainable energy solutions.
Slide 15: Smart Grid
SMART GRID PAGE Grid Modernization Improve reliability and storm resiliency Improve visibility, automation and control Accommodate customers’ preferences to incorporate distributed energy solutions Smart Meters & Rates (Advanced Metering) Enable new rate designs including time-based pricing of energ
Slide 16: Smart Pipes
SMART PIPES PAGE Infrastructure Replacement Replacement of aging pipe infrastructure to improve safety and modernize the gas system Modernization expands capacity, reduces methane emissions and provides additional safety devices Advanced Data Collection State-of-the-art technology combining bar codi
Slide 17: Smart Fuels
SMART FUELS PAGE Natural Gas Cleaner and more affordable than fuel oil Residential customer can save ~$400/yr (23%) by converting from oil to gas Natural gas emits 27% less carbon than #2 fuel oil when used for heating. Electrification Electric Vehicles – supports policies aimed at de-carbonizing th
Slide 18: Key Investment Highlights
Regulated local distribution utility business model Growing service areas and customer base Diversified natural gas and electric operations Dividend strength Experienced management team Regulated local distribution utility business model Growing service areas and customer base Diversified natural ga
Slide 19: Questions?