Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Shareholder Meeting (May 2021)
61 slides from Canadian Utilities Limited Class A's shareholder meeting presentation, May 5, 2021
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING May 5, 2021 Cc CANADIAN UTILITIES LIMITED
Slide 2: Reliable and Affordable Clean Energy
RELIABLE AND AFFORDABLE CLEAN ENERGY 2021 ANNUAL GENERAL MEETING UL!
Slide 3: Energy Transformation: Consumer Cost
ENERGY TRANSFORMATION: CONSUMER COST
Slide 4: Annual General Meeting
ANNUAL GENERAL MEETING May 5, 2021 Cc CANADIAN UTILITIES LIMITED
Slide 5: Legal Disclaimer
LEGAL DISCLAIMER Statements made by representatives for 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 therefore actual resul
Slide 6: 2020 Financial Accomplishments, Financial Strength, Beyond
2020 FINANCIAL FINANCIAL BEYOND ACCOMPLISHMENTS STRENGTH 2020 20271 ANNUAL GENERAL MEETING CUI
Slide 7: 2020 Financial Review
2020 FINANCIAL REVIEW (G- 2020 FINANCIAL ACCOMPLISHMENTS
Slide 8: 2020 — A Year of Financial Turbulence
2020 — A YEAR OF FINANCIAL TURBULANCE TORONTO 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 STOCK EXCHANGE COMPOSITE INDEX December 31, 2019 to March 31, 2020 31-Dec-19 17,063 1-Dec-20 [ eH 17, 433 31-Mar-20 13,378 20271 ANNUAL GENERAL MEETING CUI
Slide 9: 2020 — A Year of Financial Turbulence
2020 — A YEAR OF FINANCIAL TURBULANCE WEST TEXAS INTERMEDIATE OIL PRICE (SUS) December 31, 2019 to March 31, 2020 $70 31-Dec-19 $61.06 $60 31-Dec-20 $48.35 $50 31-Mar-20 $20.48 20271 ANNUAL GENERAL MEETING CUI
Slide 10: Earnings Resiliency
EARNINGS RESILIENCY Long track record of 2016 Alberta wildfires |* earnings growth through 2015 GCOC decision and global commodity price declines F various regulatory and 2013 Calgary floods +#* macro-economic cycles 2008-09 Financial crisis 1980-85 NEP = 1980 ——————ceme—————_ 7 * 2019 20271 ANNUAL
Slide 11: Resilient Canadian Utilities Earnings
RESILIENT CANADIAN UTILITIES EARNINGS Forgone earnings So08M $535M from businesses \—- | $87 sold in 2019 Normalized adjusted -— earnings 2019 2020 20271 ANNUAL GENERAL MEETING CUI
Slide 12: High Quality Earnings: 2020 Adjusted Earnings
HIGH QUALITY EARNINGS 2020 ADJUSTED EARNINGS The bulk of our $572M adjusted earnings come from our _ 5 utilities §28M $12M Energy LUMA Utilities Infrastructure Corporate ($77M) 20271 ANNUAL GENERAL MEETING CUI
Slide 13: Returns on Equity Year Average (2010-19)
RETURNS ON EQUITY 10 YEAR AVERAGE (2010-19) 10.8% 8.5% 8.9% AUC AB Utility CU INC. Approved Average Average ALBERTA UTILITIES ACHIEVE TOP TIER RETURNS ON EQUITY - CU Inc.’s average ROE +2.3 per cent above average AUC approved over last 10 years - Operational excellence benefits our customers and sha
Slide 14: Regulatory Process
REGULATORY PROCESS Electricity Regulatory Transmission Certainty Natural Gas Po Regulatory Transmission Po Certainty Electricity and Certainty pe Natural Gas A Distribution Certainty Generic Cost Regulatory of Capital Certainty a, Natural Gas toned a Distribution . 2021 2022 2023 20271 ANNUAL GENERA
Slide 15: High Quality Earnings: 2020 Earnings
HIGH QUALITY EARNINGS 2020 EARNINGS $572M Low emitting electricity generation, storage and industrial water infrastructure T §28M $12M Energy LUMA Utilities Infrastructure Corporate ($77M) 20271 ANNUAL GENERAL MEETING CUI
Slide 16: 90% Reduction in Direct GHG Emissions
90% REDUCTION IN DIRECT GHG EMISSIONS Divested Assets BB Retained Assets Direct Emissions 20 15 tonnes 2019 += 2020 (millions) 79 — (0,e 5 2008 os 2016 2017 2018 2019 2020 20271 ANNUAL GENERAL MEETING CUI
Slide 17: Rate Freeze in 2021
ATCO Electricity and Natural Gas Distribution Rate Freeze in 2021 2021 ANNUAL GENERAL MEETING CU!
Slide 18: High Quality Earnings: 2020 Earnings
HIGH QUALITY EARNINGS 2020 EARNINGS $572M Major Contract Win in 2020 28M $12 ($77M) Energy LUMA Utilities Infrastructure Corporate 20271 ANNUAL GENERAL MEETING CUI
Slide 19: 2020 Financial Review: Financial Strength
2020 FINANCIAL REVIEW S FINANCIAL STRENGTH
Slide 20: Financial Strength — Credit Ratings
FINANCIAL STRENGTH — CREDIT RATINGS “CREDIT RATING .CREDITRATING mR. _OREDIT RATING : (STABLE) (STABLE) (NEGATIVE) .. CU INC. CANADIAN UTILITIES Ratings 20271 ANNUAL GENERAL MEETING CUI
Slide 21: Financial Strength — Low Financing Costs
FINANCIAL STRENGTH — LOW FINANCING COSTS 7.00% C$150M 6.00% ° 2.609% 30 Year 500% Due Sep50 4.00% Previous 3.00% CU INC. Record New CU INC. Record 2.00% 2009 «2010 «2011 «2012, «2013 2014S 2015) 2016 )= 2017-2018 )9=— 2019) 2020 = 2021 2021 ANNUAL GENERAL MEETING [UI
Slide 22: Resiliency — Dividend Growth
RESILIENCY — DIVIDEND GROWTH 49 years of annual dividend increases sasha Longest track record of annual dividend increases ; of any Canadian publicly traded company 1973 1980 1990 2000 2010 2021 20271 ANNUAL GENERAL MEETING CUI
Slide 23: Beyond 2020
2020 FINANCIAL REVIEW —- BEYOND 2020
Slide 24: First Quarter 2021 Earnings
FIRST QUARTER 2021 EARNINGS Q1 2020 Q1 2021
Slide 25: 2021 Capital Investment and Funding
2021 CAPITAL INVESTMENT AND FUNDING $1.35B 2021 Capital Investment & Debt Maturities $2.2B CAPITAL MARKETS |f) 2021 Cash Flow $800M Readily Accessible Underpinned by Net of Interest Available Cash on Lines of Credit A Grade Credit Rating and Dividends the Balance Sheet AMOUNTS AS AT THE FIRST QUARTE
Slide 26: 2021 and Beyond
2021 AND BEYOND OPTIMIZE NON-REG ASSETS AND DRIVE CASH GROW FLOW AND EARNINGS 20271 ANNUAL GENERAL MEETING CUI
Slide 27: Annual General Meeting
ANNUAL GENERAL MEETING May 5, 2021 Cc CANADIAN UTILITIES LIMITED
Slide 28: New Energy Future for Our Customers
NEW ENERGY FUTURE FOR OUR CUSTOMERS ia, 2021 ANNUAL GENERAL MEETING UL!
Slide 29: Distributed Generation
DISTRIBUTED GENERATION 2021 ANNUAL GENERAL MEETING
Slide 30: Sustainable Lower Carbon Future
SUSTAINABLE LOWER CARBON FUTURE
Slide 31: Digitalization: A Goal for Meters
[ol DIGITALIZATION: A GOL METERS = = —. J = = : = > 7 © 4 = = 2 = = if a —— Se FF = “sf P| S ee Pg > : ~ y la 2 f - ~— ple en —_ —_ _ . 7 acpou! . c “ . == —_> | - — 2021 ANNUAL GENERAL MEETING LI
Slide 32: Commitment to Sustainability
COMMITMENT TO SUSTAINABILITY SHIFTING DEMAND DECENTRALIZATION DECARBONIZATION DIGITALIZATION 20271 ANNUAL GENERAL MEETING CUI
Slide 33: 2021 Annual General Meeting
20271 ANNUAL GENERAL MEETING CUI
Slide 34: Operational Excellence: Electricity
OPERATIONAL SAREE ao 32% 22% 9% IMPROVEMENT | REDUCTION | | REDUCTION IN DISTRIBUTION IN TRANSMISSION IN DISTRIBUTION SERVICE RELIABILITY O&M COSTS PER KM O&M COSTS 2021 ANNUAL GENERAL MEETING LI
Slide 35: Operational Excellence: Natural Gas
OPERATIONAL EXCELLENCE: NATURAL GAS 97% ACHIEVED ACHIEVED LOWER CUSTOMER STRONG REPUTATION NATURAL GAS 0&M SATISFACTION RATING IN THE COMMUNITY COST PER CUSTOMER 2021 ANNUAL GENERAL MEETING LI
Slide 36: Celebrating Excellence: Edison Award
CELEBRATING EXCELLENCE: EDISON AWARD
Slide 37: Leading the Way on Sustainability
LEADING THE WAY ON SUSTAINABILITY | en i ¥ iF ii pr ¥
Slide 38: Reducing Reliance on Diesel
REDUCING RELIANCE ON DIESEL ort Chipewyan Solar Project 2021 ANNUAL GENERAL MEETING
Slide 39: Hydrogen: Clean Energy Solution
HYDROGEN: CLEAN ENERGY SOLUTION aT
Slide 40: [UI
2021 ANNUAL GENERAL MEETING [UI
Slide 41: Clean Energy Innovation Hub: Australia
CLEAN ENERGY INNOVATION HUB: AUSTRALIA SS s : 20271 ANNUAL GENERAL MEETING CUI
Slide 42: Hydrogen Refueling Infrastructure
HYDROGEN REFUELING INFRASTRUCTURE rN 2021 ANNUAL GENERAL MEETING CU!
Slide 43: Commercial Scale Hydrogen Production
COMMERCIAL SCALE HYDROGEN PRODUCTION
Slide 44: 2021 Annual General Meeting
2021 ANNUAL GENE! MEETING
Slide 45: [UI
2021 ANNUAL GENERAL MEETING [UI
Slide 46: LUMA: Our Puerto Rico Family
LUMA: OUR PUERTO RICO FAMILY 2021 ANNUAL GENERAL MEETING LI
Slide 47: LUMA: Repairing Damaged Infrastructure
LUMA: REPAIRING DAMAGED INFRASTRUCTURE 2021 ANNUAL GENERAL MEETING LI
Slide 48: LUMA: Repairing Damaged Infrastructure
LUMA: REPAIRING DAMAGED INFRASTRUCTURE
Slide 49: LUMA: Serving the People of Puerto Rico
LUMA: SERVING THE ie OF ee RICO ie ee 2021 ANNUAL GENERAL MEETING UI
Slide 50: LUMA: Community Investment
LUMA: COMMUNITY INVESTMENT "OAC tie a “5 ye , . ; Oe
Slide 51: LUMA Lights the Way for Our Communities
LUMA LIGHTS THE WAY FOR OUR COMMUNITIES
Slide 52: LUMA: College Groundbreaking
LUMA: COLLEGE GROUNDBREAKING 2021 ANNUAL GENERAL MEETING CU!
Slide 53: ATCO EPIC Volunteers
ATCO EPIC VOLUNTEERS —— : 4“ 4 aAOYERS participating ‘» COMMUNITIES 2021 ANNUAL GENERAL MEETING
Slide 54: CU!
2021 ANNUAL GENERAL MEETING CU!
Slide 55: Our Blue Flame Kitchen Team
i OUR BLUE FLAME MTGHEN TEAM ~ 2021 ANNUAL GENERAL MEETING CU!
Slide 56: 2021 Annual General Meeting
2071 ANNUAL GENERAL MEETING UJ
Slide 57: Slide 57
Slide 58: Inclusive and Respectful Workplace
INCLUSIVE AND RESHEGTFUL WORKPLACE UCI 20271 ANNUAL GENERAL MEETING CUI
Slide 59: Positioning Our Business for the Future
POSITIONING OUR BUSINESS FOR THE FUTURE I Resplandor Solar Project, Chile ~ _— 2021 ANNUAL GENERAL MEETING
Slide 60: Investing in Infrastructure
INVESTING IN INFRASTRUCTURE 20271 ANNUAL GENERAL MEETING CUI
Slide 61: Annual General Meeting
ANNUAL GENERAL MEETING May 5, 2021 Cc CANADIAN UTILITIES LIMITED