Atco Ltd. Class I · TSX:ACO.X
Atco Ltd. Class I — Investor Presentation (July 2017)
31 slides from Atco Ltd. Class I's investor presentation, July 2017
Slide 1: Investor Presentation July 2017
INVESTOR PRESENTATION JULY 2017
Slide 2: Slide 2
Slide 3: Legal Disclaimer
LEGAL DISCLAIMER Statements made by representatives for ATCO Ltd. and Canadian Utilities Limited and information provided in this presentation may be considered forward-looking statements. By their nature, such statements are subject to numerous known and unknown risks and uncertainties and therefor
Slide 4: The ATCO Group of Companies
THE ATCO GROUP OF COMPANIES With approximately 7,000 employees and assets of $20 billion, ATCO is a diversified corporation delivering service excellence and innovative business solutions in: STRUCTURES & LOGISTICS ELECTRICITY PIPELINES & LIQUIDS • Operations on 4 continents • 88,000 kms of electric
Slide 5: Asset Growth
ASSET GROWTH We have doubled in size since 2009 ATCO Canadian Utilities $3.5B $3.5B $6.2B $20B $6.2B $19B $0.3B $10B $9B 2009 Structures Electricity Pipelines 2016 2011 Electricity Pipelines 2016 2009 & Logistics & Liquids 2016 2009 & Liquids 2016 INVESTOR PRESENTATION JULY 2017
Slide 6: Growing a High Quality Earnings Base
GROWING A HIGH QUALITY EARNINGS BASE ATCO Canadian Utilities Regulated Adjusted Earnings Regulated Adjusted Earnings 93% 81% 46% 37% 2009 2016 2009 2016 INVESTOR PRESENTATION JULY 2017
Slide 7: Continued Dividend Growth
CONTINUED DIVIDEND GROWTH ATCO $0.3275 Canadian Utilities $0.3575 per share per share 24 year track record of Longest track record of increasing common annual dividend increases share dividends* of any Canadian publicly traded company* 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 1
Slide 8: Growing Earnings
GROWING EARNINGS ATCO Canadian Utilities $360M $590M $293M $483M 2015 2016 2015 2016 Major projects completions Earnings Growth Investment in regulated utilities Drivers Investment in long-term contracted assets Lower operating costs INVESTOR PRESENTATION JULY 2017
Slide 9: Growing Earnings
GROWING EARNINGS ATCO Canadian Utilities Global Business Unit Earnings Global Business Unit Earnings $402M $213M $322M $171M $255M $136M $189M $101M $43M $27M 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 Structures & Logistics Electricity Pipelines & Liquids Electricity Pipelines & Liquids INVE
Slide 10: First Quarter 2017 Adjusted Earnings
FIRST QUARTER 2017 ADJUSTED EARNINGS ATCO Canadian Utilities $215M $197M $121M $117M Q1 2016 Q1 2017 Q1 2016 Q1 2017 INVESTOR PRESENTATION JULY 2017
Slide 11: Financial Focus for the Future
FINANCIAL FOCUS FOR THE FUTURE We are taking a focused and disciplined approach to purse cost savings and efficiencies in every part of the organization to ensure we deliver the most competitive solution to our customers FINANCIAL PRIORITIES FOR 2017 AND BEYOND CONTINUED CAPITAL OPERATIONAL FINANCIA
Slide 12: Continued Capital Investment
CONTINUED CAPITAL INVESTMENT ELECTRIC DISTRIBUTION NATURAL GAS DISTRIBUTION STRUCTURES & LOGISTICS WATER INFRASTRUCTURE ELECTRIC TRANSMISSION NATURAL GAS TRANSMISSION ELECTRICITY GENERATION HYDROCARBON STORAGE REGULATED UTILITY LONG-TERM CONTRACTS INVESTOR PRESENTATION JULY 2017
Slide 13: Regulated Utility Capital Investment $3.8 Billion (2017–2019)
REGULATED UTILITY CAPITAL INVESTMENT ELECTRIC DISTRIBUTION ELECTRIC TRANSMISSION NATURAL GAS DISTRIBUTION NATURAL GAS TRANSMISSION $3.8 BILLION (2017–2019) INVESTOR PRESENTATION JULY 2017
Slide 14: Long-Term Contracted Capital Investment $1.2 Billion (2017–2019)
LONG-TERM CONTRACTED CAPITAL INVESTMENT FORT MCMURRAY WEST HYDROCARBON STORAGE DISTRIBUTED GENERATION 500 KV TRANSMISSION $1.2 BILLION (2017–2019) INVESTOR PRESENTATION JULY 2017
Slide 15: Operational Excellence: Structures & Logistics
OPERATIONAL EXCELLENCE: STRUCTURES & LOGISTICS Offering complete infrastructure solutions worldwide Implementing business-wide Adding projects for workforce Acquiring assets and cost reduction initiatives housing accommodations expanding geographically and modular buildings INVESTOR PRESENTATION JUL
Slide 16: Financial Strength: Funding Sources
FINANCIAL STRENGTH: FUNDING SOURCES Canadian Utilities Funding Sources 2011 – 2016 5% 29% 2% 3% 61% Funds Generated Dividend Capital Debt Issues Preferred by Operations Reinvestment Redeployment (net of repayment) Shares (DRIP) INVESTOR PRESENTATION JULY 2017
Slide 17: Financial Strength: Balance Sheet
FINANCIAL STRENGTH: BALANCE SHEET Strong financial position supports access to capital INVESTOR PRESENTATION JULY 2017
Slide 18: Alberta Power Market Developments
ALBERTA POWER MARKET DEVELOPMENTS Improved Clarity Coal Phase-out in Alberta by 2030 As compensation, we receive cash payments from the Government of Alberta of $4.7 million annually for 14 years Well Positioned Phase-in of Renewable Generation We are exploring renewable technologies and are wel
Slide 19: Appendix
APPENDIX
Slide 20: Organizational Structure
ORGANIZATIONAL STRUCTURE 52.8% 100% 100% ATCOenergy CU Inc. GLOBAL BUSINESS UNITS 75.5% 24.5% 100% 100% STRUCTURES & LOGISTICS ELECTRICITY PIPELINES & LIQUIDS A GLOBAL BUSINESS UNIT A GLOBAL BUSINESS UNIT A GLOBAL BUSINESS UNIT Modular Structures Electricity Distribution Natural Gas Distribution Lod
Slide 21: Structures & Logistics
STRUCTURES & LOGISTICS We offer workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management 7 manufacturing plants globally Nearly 1,000,000 sq ft of manufacturing space Subsidiary: Sustainable Communities INVESTOR PRESENTATION
Slide 22: Electricity Distribution & Transmission
ELECTRICITY DISTRIBUTION & TRANSMISSION We build, own and operate electrical distribution and transmission facilities 224,000 farm, business and residential customers in 245 Alberta communities Approximately 12,000 km of transmission lines and 72,000 km of distribution lines Subsidiaries: AT
Slide 23: Electricity Generation
ELECTRICITY GENERATION We have an ownership position in 16 power generation plants in Alberta, British Columbia, Saskatchewan, Ontario and Mexico Electricity Market Exposure Portfolio: 1,563 MW Contract (68%) 734 MW Merchant (32%) INVESTOR PRESENTATION JULY 2017
Slide 24: Electricity Generation
ELECTRICITY GENERATION We operate two power generation facilities with a combined capacity share of 176 MW Provides energy infrastructure for thousands of public sector, domestic and industrial clients across Australia Electricity Market Exposure Portfolio: 176 MW Contract (100%) INVESTOR PRES
Slide 25: Alberta PowerLine
ALBERTA POWERLINE Fort McMurray West 500 kV Transmission Project The Alberta Electric System Operator (AESO) undertook a competitive process to develop, design, build, finance, own, operate and maintain the Fort McMurray West 500 kV Transmission Project The process was designed to emulate a Publ
Slide 26: Alberta PowerLine
ALBERTA POWERLINE Fort McMurray West 500 kV Transmission Project APL must run a Debt Funding Competition in 2017 to identify the most attractive debt financing structure for the Project Debt Funding Competition Participants will submit pricing on the original financing solution APL submitted wit
Slide 27: Natural Gas Distribution
NATURAL GAS DISTRIBUTION We build, own and operate natural gas distribution facilities in Alberta Alberta’s largest natural gas distribution company Serves more than 1.1 million customers in nearly 300 Alberta communities We build, maintain, and operate 41,000 km of natural gas distribution pi
Slide 28: Natural Gas Transmission
NATURAL GAS TRANSMISSION We build, own and operate key high-pressure natural gas transmission facilities in Alberta Transports clean, efficient energy from producers and other pipelines to utilities, power generators and major industries Owns and operates 9,400 km of pipeline Delivers a peak o
Slide 29: Storage & Industrial Water
STORAGE & INDUSTRIAL WATER We build, own and operate non- regulated industrial water, natural gas storage, hydrocarbon storage, and NGL related infrastructure 85,200 m3/day water infrastructure capacity 200,000 m3 hydrocarbon storage capacity 52 PJ natural gas storage capacity ~ 300 km pipel
Slide 30: International Natural Gas Distribution
INTERNATIONAL NATURAL GAS DISTRIBUTION We provide safe and reliable natural gas service to the Perth metropolitan area and the wider Western Australian community Approximately 741,000 customers 14,000 km of gas distribution pipelines INVESTOR PRESENTATION JULY 2017
Slide 31: Investor Relations Contact
www.ATCO.com Tel: 403.292.7500 Investor Relations 1500, 909 11 Avenue SW Calgary, Alberta T2R 1N6 Canada