Slide 1: 2016 Third Quarter Financial & Strategic Update
2016 Third Quarter Financial & Strategic Update Q3 Earnings Call 3 November 2016 Al Monaco, President & CEO John Whelen, Executive Vice President & CFO
Slide 2: Legal Notice
Legal Notice This presentation includes certain forward looking statements and information (FLI) to provide shareholders of Enbridge Inc. (“Enbridge” or the “Company”) and Enbridge Income Fund Holdings Inc. (“ENF”) and potential investors with information about Enbridge, ENF and their respective sub
Slide 3: Agenda
Agenda • Financial highlights • Spectra Energy transaction and update • Status of capital program • Third quarter financial review • Key dates and investor communication plan SLIDE 3
Slide 4: Financial Highlights
Financial Highlights Strong results reflect resiliency of business model; guidance range unchanged Adjusted EBIT1 ACFFO1 Adjusted Earnings1 $ Millions $ Millions, except per share $ Millions, except per share +$74* amounts +$74* amounts +$26* $1,001 $437 Q3 $852 $958 Q3 Q3 $399 Q3 Q3 $668 $1,089 Q3
Slide 5: Enbridge Acquisition Investment Criteria
Enbridge Acquisition Investment Criteria Aligned with strategy • Creates or strengthens existing or new platforms • Brings embedded growth or optionality • Capitalizes on existing capabilities Consistent with value proposition Long term • Solid long term fundamentals • Strong commercial / contra
Slide 6: Enbridge Spectra Energy Combination – Premier North American Energy Infrastructure Assets
Enbridge Spectra Energy Combination – Premier North American Energy Infrastructure Assets • $165B enterprise value • Highest quality liquids and natural gas franchises • Low-risk business model • Strong balance sheet; access to capital • $26B combined secured growth + $48B development project pipeli
Slide 7: Enbridge Spectra Energy Combination – Multiple Strategic Growth Platforms
Enbridge Spectra Energy Combination – Multiple Strategic Growth Platforms Enbridge Platforms for Growth Spectra Energy Platforms for Growth North North Highly predictable growing cash American American Positioned for sustained demand-pull flows with significant further Gas organic growth for the for
Slide 8: Enbridge Spectra Energy Combination – Industry Leading Growth
Enbridge Spectra Energy Combination – Industry Leading Growth Unrivaled pro-forma secured expansion program1 Large, diverse opportunity set ($ billions) 2017 – 2019 In Service Dates ($ billions) Probability weighted development projects $26 Major Components of Risked Capital2, 3 100% in execution $2
Slide 9: Visible Organic Dividend Growth with Upside Potential
Enbridge Spectra Energy Combination – Visible Organic Dividend Growth with Upside Potential Dividend per Share Outlook (2017-2024) Dividend growth through 2019 supported by: • 15% dividend increase in 20171 • $26B secured growth program in execution • 10-12% annual dividend growth (2018 through 2024
Slide 10: Enbridge Spectra Energy Combination – Balance Sheet Strength
Enbridge Spectra Energy Combination – Balance Sheet Strength Key Credit Metrics and Targets • Increased size, scale and asset diversity significantly enhances the credit profile of the combined entity Credit Metric Target ≥15% • Debt to EBITDA naturally improves as high quality FFO / Debt projects u
Slide 11: Transaction Timeline
Transaction Timeline On track for expected Q1 2017 close Completed transaction milestone In progress transaction milestone File draft proxy Finalize Hold circular and circulars and Shareholder registration mail to Votes Announcement statement shareholders Commence regulatory approval Respond to proc
Slide 12: Integration Planning
Integration Planning Actively preparing for operational integration and synergy capture Joint integration planning Forecast annual run rate synergies by 2018 • Key areas of integration planning 1. Day One readiness 2. Synergy capture 3. Long term integration planning $540 Million • Progress to date
Slide 13: Asset Monetization Update
Asset Monetization Update Fund Group South Prairie Region Divestment • $2B of non-strategic asset monetization – 12 month target • Other identified asset monetizations could provide another $5-6B of capital if needed for incremental growth projects not yet secured • Criteria for monetization • Does
Slide 14: Status of Capital Program
Status of Capital Program Projects in Execution1 Project Capital Cost Expected ISD • $1.9B of capital placed into 2016 Heidelberg Lateral $0.1B Complete service this year GTA Project $0.9B Complete Tupper Gas Plant Acquisition $0.5B Complete • $5.4B of projects in service in Line 6B Expansio
Slide 15: Q3 2016 Segmented Adjusted EBIT Variance
Q3 2016 Segmented Adjusted EBIT Variance ADJUSTED EBIT ($ MILLIONS) Q3 2015 Q3 2016 Variance Liquids Pipelines 895 941 +46 Gas Distribution 24 31 +7 Gas Pipelines and Processing 84 94 +10 Green Power and Transmission 26 34 +8 Energy Services (23) (15) +8 Eliminations and Other (48) (84) (36) Consoli
Slide 16: Q3 2016 ACFFO Variance
Q3 2016 ACFFO* Variance Strong cash generating performance from assets and investments ($ MILLIONS) Q3 2015 Q3 2016 Variance Consolidated Adjusted EBIT* 958 1,001 +43 Depreciation and amortization 524 562 +38 Maintenance capital (204) (171) +33 Interest expense (317) (385) (68) Current income taxes
Slide 17: 2016 Adjusted EBIT & ACFFO Guidance
2016 Adjusted EBIT* & ACFFO* Guidance Performance on track; no change to guidance Adjusted EBIT* ACFFO*/share $4.8B $4.50 $4.4B $3.80 $3.72 $3.02 2016e 2014 2015 2016e *Available cash flow from operations (ACFFO) and adjusted earnings before interest and tax (adjusted EBIT) are non-GAAP measures. Fo
Slide 18: ENF & Fund Group Q3 Results
ENF & Fund Group Q3 Results Strong growth driven by 2015 drop down and solid performance from legacy assets ($ MILLIONS, Except per share amounts) Q3 2015 Q3 2016 Variance EIPLP ACFFO* 237 502 +265 Fund and ECT operating, administrative and interest expense (37) (54) (17) Fund Group ACFFO* 200 448 +
Slide 19: ENF & Fund Group 2016 Guidance
ENF & Fund Group 2016 Guidance Performance on track; no change to guidance ENF Dividends Per Share Fund Group ACFFO* $2.50 $2.05B $2.00 $1.87 $1.75B $1.50 $1.00 $0.50 $0.00 2014 2015 2016 … 2019e 2016e *Available cash flow from operations (ACFFO) is a non-GAAP measure. For more information on non-GA
Slide 20: Financial Strength and Flexibility
Financial Strength and Flexibility $4.6B of equity capital raised in 2016; Bolsters balance sheet and further strengthens liquidity position Financing Activity Available Liquidity3 2016 Year to Date $ billions $ Billions (1 USD = 1 CAD) Primary Market 12 Equity Funding1 ENB Common Shares 2.3 Canadia
Slide 21: Key Dates & Investor Communications Plan
Key Dates & Investor Communications Plan Amendments to corporate calendar reflecting Spectra Energy transaction expected Q1 2017 closing Event Original Currently Anticipated ENB standalone: January 2017 ENB Dividend Announcement December 2016 True-up: Post Close ENB Guidance December 2016 Post Close
Slide 22: Key Takeaways
Key Takeaways • Strong third quarter results • On track to meet full year guidance • Spectra Energy combination thesis remains highly compelling • Pre-closing milestones being met and integration planning progressing well SLIDE 22
Slide 23: Q&A
Q&A