Slide 1: First Quarter Earnings Conference Call
2018 FIRST QUARTER EARNINGS CONFERENCE CALL May 1, 2018 Investing in Our Networks
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 U.S. Private Securities Litigation Reform Act of 1995, collectively referred to as "forw
Slide 3: Barry Perry, President and CEO
Barry Perry President and CEO FORTIS INC. Investing in Our Networks
Slide 4: First Quarter Reinforces the Strength of Fortis as a North American Utility Leader
First Quarter Reinforces the Strength of Fortis as a North American Utility Leader $323M Capital Investments: REPORTED -Focused on providing safe, reliable, NET affordable, cleaner energy solutions to EARNINGS customers -$3.2 billion capital forecast for 2018 on track 9% OPERATING Development Opport
Slide 5: Rate Base Growth Supports Dividend Guidance
Rate Base Growth Supports Dividend Guidance 2018-2022 Capital Expenditure Program of $15.1B Increases Rate Base to $33B by 2022 Capital Expenditures(1) Rate Base(2) (billions) (billions) $15.1B Five-Year Capital Plan $33.0 $3.2 $31.6 $3.0 $3.0 $3.0 $30.4 $2.9 $28.9 $26.8 $25.4 2018F 2019F 2020F 2021
Slide 6: Advancing the Wataynikaneyap Power Project
Advancing the Wataynikaneyap Power Project Canada’s Largest First Nation’s-Led Infrastructure Project Partnership with First Nations to connect remote communities in Northern Ontario to the grid via 1,800 km of transmission line In March 2018, a funding framework was reached with Wataynikaneyap Powe
Slide 7: Opportunities Beyond the Base Capital Plan
Opportunities Beyond the Base Capital Plan FortisOntario: Municipal Utility Consolidation FortisBC: Tilbury, LNG & Gas MECL & NP: Infrastructure Grid Modernization UNS Energy: Renewables, Storage ITC: & Electric Lake Erie Connector Transmission ITC: Mexico Transmission Projects Caribbean: Grid Moder
Slide 8: 44 Years of Consecutive Annual Dividend Growth
44 Years of Consecutive Annual Dividend Growth 73% 73% Average annual dividend 70% 66% 66% growth through 2022 64% targeted at ~6% 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F Dividend payout ratio(1) (1) Dividend payout ratio adjusted for non-operating items. FORTIS INC. Investing in
Slide 9: Karl Smith, Executive Vice President, CFO
Karl Smith Executive Vice President, Chief Financial Officer FORTIS INC. Investing in Our Networks
Slide 10: Fortis Delivers Q1 2018 Results Aligned With Expectations
Fortis Delivers Q1 2018 Results Aligned With Expectations Adjusted Earnings Adjusted EPS 0.75 300 $293 $0.71 0.70 $0.69 290 $287 ($ millions) 280 0.65 ($) 270 0.60 260 0.55 250 0.50 2017 2018 2017 2018 Q1 Q1 FORTIS INC. Investing in Our Networks 10
Slide 11: EPS Drivers – Q1
EPS Drivers – Q1 0.80 0.78 0.01 (0.01)) 0.76 (0.01) 0.04 (0.02) 0.74 (0.03) 0.72 0.70 ($) 0.68 0.66 0.71 0.64 0.69 0.62 0.60 (1) (2) (3) Q1 2017 Adjusted UNS Energy Corporate and Energy Other Regulated Foreign Weighted (4) Q1 2018 Adjusted Actual EPS Other Infrastructure Utilities Exchange Average S
Slide 12: U.S. Tax Reform Updates
U.S. Tax Reform Updates Benefits Customers Immediately and Shareholders Over the Long Term Interest Expense Credit Rating Agency Customer Rate Decrease Deductibility Clarity Updates TEP – Application approved by U.S. Treasury confirmed Held meetings with rating ACC to return savings through applicat
Slide 13: Investment-Grade Credit Ratings and Ample Liquidity
Investment-Grade Credit Ratings and Ample Liquidity Consolidated Credit Facilities 6.0 Credit Ratings 5.0 (1) 4.0 A- / BBB+ ($ billions) 3.0 3.9 3.9 BBB (high) 2.0 (2) 1.0 Baa3 1.1 1.1 0.0 Mar 31/18 Dec 31/17 Utilized Remaining Capacity (1) In March 2018, S&P affirmed the Corporation’s credit rating
Slide 14: Regulatory Stability
Regulatory Stability Recent regulatory outcomes Regulated Utility Application/Proceeding Outcome Agreement/ Decision Timing • Decision issued approving settlement agreement on TEP 2017 General Rate Application revenue requirement • February 2017 • 9.75% ROE and common equity thickness of 50% Remaini
Slide 15: Investing in Our Networks
Investing in Our Networks
Slide 16: Our Strategy - Simple, Effective, Proven
Our Strategy- Simple, Effective, Proven Strategy Leverage the operating model, footprint of our utilities, operating expertise, reputation and financial strength to develop growth opportunities Dividend6% AVERAGE Growth Target: ANNUAL 6% Average DIVIDEND Annual Growth INVESTMENT- GROWTH Through 2021
Slide 17: Expected Upcoming Events
Expected Upcoming Events Annual General Meeting May 3, 2018 10:30 a.m. (Newfoundland), 9:00 a.m. (Eastern) A live video webcast of the meeting will be available on the Corporation’s website www.fortisinc.com Expected Upcoming Earnings Release Dates Q2 – 2018 July 31, 2018 Q3 – 2018 November 2, 2018
Slide 18: First Quarter Earnings Conference Call
2018 FIRST QUARTER EARNINGS CONFERENCE CALL May 1, 2018 Investing in Our Networks
Slide 19: Q1 2018 Results by Segment
Q1 2018 Results by Segment First Quarter Variance Analysis by Segment ($ in millions, Q1 Q1 2018 Q1 Q1 2017 Q1 (Adjusted) Adjustment Adjustment excluding EPS) 2018 (Adjusted) 2017 (Adjusted) Variance Regulated – Independent Electric Transmission ITC 86 - 86 91 - 91 (5) Regulated – US Electric & Gas
Slide 20: 2018-2022 Capital Forecast by Segment
2018-2022 Capital Forecast by Segment 2018F Rate Base(1) 2018 Capital Forecast(1) ($ millions) Regulated – Independent Electric Transmission ~$26.8 Billion ITC 863 Regulated – U.S. Electric & Gas UNS Energy 686 Regulated- Central Hudson 275 Independent Regulated- Regulated Canadian & Caribbean Elect
Slide 21: Highly Executable Capital Plan
Highly Executable Capital Plan Progress Made on Capital Projects During The First Quarter Significant Projects(1) ($ millions)(2) Forecast Forecast Forecast Total 2018- 2018 2019-2022 2022 ITC Multi-Value Regional Transmission Projects(3) 169 194 363 ITC 34.5 kV to 69 kV Conversion Project 111 369 4