Fortis Inc. · TSX:FTS

Fortis — Q2 2025 Earnings Presentation

29 slides from Fortis's earnings presentation, Aug 1, 2025

  1. Slide 1: Q2 2025 Earnings Conference Call

    Q2 2025 EARNINGS CONFERENCE CALL August 1, 2025

  2. 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 Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looki

  3. Slide 3: David Hutchens and Jocelyn Perry

    David Hutchens Jocelyn Perry President and Chief Executive Officer, EVP and Chief Financial Officer, Fortis Inc. Fortis Inc. 3

  4. Slide 4: Q2 2025 Business Update

    Q2 2025 BUSINESS UPDATE Delivered Safe & YTD June Capital of $2.9B Q2 EPS Reliable Service 2025 Annual Capital Plan of $0.76 On Track TEP General Rate TEP Retail Load Growth 2025 Sustainability Application Filed Opportunity Advances Update Report Released in Arizona 4

  5. Slide 5: Highly Executable Capital Plan Supports Low-Risk Rate Base Growth

    HIGHLY EXECUTABLE CAPITAL PLAN SUPPORTS LOW-RISK RATE BASE GROWTH $2.9 Billion YTD June Capital Expenditures(1) 2025 annual capital plan of $5.2B on track $26 Billion 2025-2029 Capital Plan(1) 23% major capital projects Virtually all regulated investments 6.5% 5-Year Rate Base CAGR(2) Rate base fore

  6. Slide 6: Springerville Coal-Fired Generating Units to Be Converted to Natural Gas

    SPRINGERVILLE COAL-FIRED GENERATING UNITS TO BE CONVERTED TO NATURAL GAS Overview Committed to a Coal-Free Generation Mix by 2032 • TEP announced that it plans to convert 793 MW of coal-fired generation at the Springerville Generating Station to natural gas generation with similar capacity by 2030 •

  7. Slide 7: Key Opportunities to Expand & Extend Growth

    KEY OPPORTUNITIES TO EXPAND & EXTEND GROWTH TEP’s Retail Load Growth Opportunity • This quarter, an agreement using existing and planned capacity was reached with a data center customer requiring power demand of ~300 MW ramping up in 2027 • The agreement is subject to ACC approval and other contract

  8. Slide 8: Additional Opportunities to Expand & Extend Growth Beyond the Plan

    ADDITIONAL OPPORTUNITIES TO EXPAND & EXTEND GROWTH BEYOND THE PLAN MISO LRTP Tranche 2.1 ~US$3.7-$4.2B For projects in Michigan and Minnesota where ROFRs are in effect and system upgrades in Iowa; majority of investments are expected post-2029 MISO LRTP Tranche 2.1 Competitively Bid Projects Any pro

  9. Slide 9: Dividend Guidance Supported by Long-Term Growth Strategy

    DIVIDEND GUIDANCE SUPPORTED BY LONG-TERM GROWTH STRATEGY 51 Years of Consecutive Increases in Dividends Paid 4-6% Annual Dividend Growth Guidance through 2029 73 76 79 82 85 88 91 94 97 00 03 06 09 12 15 18 21 24 9

  10. Slide 10: Second Quarter Results

    SECOND QUARTER RESULTS Earnings EPS $0.76 $384M $331M EPS growth driven by $0.67 rate base growth & higher earnings at Central Hudson & FortisBC Q2 2024 Q2 2025 Q2 2024 Q2 2025 $883M $1.76 $790M $1.60 YTD 2024 YTD 2025 YTD 2024 YTD 2025 10

  11. Slide 11: Q2 2025 EPS Drivers

    Q2 2025 EPS DRIVERS $0.02 ($0.01) ($0.01) $0.02 $0.03 $0.76 $0.04 $0.67 Q2 2025 EPS $0.09 compared to Q2 2024 Q2 2024 U.S. Western Other Foreign Corporate & Weighted Q2 2025 Basic EPS Electric & Canadian Electric Exchange(3) Other Average Basic EPS Gas (1) Electric & Gas(2) Shares (1) Includes UNS E

  12. Slide 12: YTD June 2025 EPS Drivers

    YTD JUNE 2025 EPS DRIVERS $0.05 ($0.01) ($0.02) $0.03 $0.01 $0.04 $1.76 $0.06 $1.60 YTD 2025 EPS $0.16 compared to YTD 2024 YTD 2024 U.S. Western Other U.S. Foreign Corporate & Weighted YTD 2025 Basic EPS Electric & Canadian Electric Transmission Exchange(3) Other Average Basic EPS Gas (1) Electric

  13. Slide 13: Liquidity & Credit Ratings

    LIQUIDITY & CREDIT RATINGS New Long-Term Credit Ratings Debt Issuances & Outlooks • Central Hudson ▪ US$20M 10-year notes at 5.61% ▪ US$30M 15-year notes at 5.81% A-(2) A (low) ▪ US$20M 20-year notes at 6.01% • FortisAlberta Negative Stable ▪ $200M 30-year debentures at 4.76%(1) • Maritime Electric

  14. Slide 14: Recent Regulatory Activity

    RECENT REGULATORY ACTIVITY TEP General Rate Application Overview • In June 2025, TEP filed its general rate application with the ACC seeking new rates effective September 1, 2026 using a December 31, 2024 test year and post-test year adjustments through June 30, 2025 • The application includes a req

  15. Slide 15: Why Invest in Fortis?

    SUSTAINABLE GROWTH WHY INVEST IN FORTIS? Focused on Executing Strong Robust Transparent Rate Base Growth Transmission Funding Plan Investment Pipeline Cleaner 4-6% Annual Investment-Grade Energy Transition Dividend Growth Credit Ratings LOW-RISK Safe, Well-Run Utilities Regulatory & Constructive Str

  16. Slide 16: Upcoming Events

    UPCOMING EVENTS Expected Earnings Release Dates • Q3 2025 – November 4, 2025 • Q4 2025 – February 12, 2026 16

  17. Slide 17: Q2 2025 Earnings Conference Call

    Q2 2025 EARNINGS CONFERENCE CALL August 1, 2025

  18. Slide 18: Non-U.S. GAAP Reconciliation

    NON-U.S. GAAP RECONCILIATION YTD JUNE YTD JUNE ($MILLIONS) Q2 2025 Q2 2024 VARIANCE 2025 2024 VARIANCE Capital Expenditures Additions to property, plant and equipment 1,479 1,064 415 2,962 2,135 827 Additions to intangible assets 65 48 17 125 90 35 Adjusting items: Eagle Mountain Pipeline Project(1)

  19. Slide 19: Second Quarter and YTD June Results by Segment

    SECOND QUARTER AND YTD JUNE RESULTS BY SEGMENT Second Quarter and YTD June Earnings Variance Analysis by Business Unit ($MILLIONS, EXCEPT WEIGHTED AVERAGE SHARES YTD JUNE YTD JUNE Q2 2025 Q2 2024 VARIANCE VARIANCE AND EPS) 2025 2024 Regulated – Independent Electric Transmission ITC 143 139 4 293 277

  20. Slide 20: 2025-2029 Capital Plan by Business Unit

    2025-2029 CAPITAL PLAN BY BUSINESS UNIT Capital Plan 2025-2029F ($MILLIONS) 2025F 2026F 2027F 2028F 2029F TOTAL Regulated – Independent Electric Transmission ITC 1,403 1,488 1,523 1,600 1,573 7,587 Regulated – U.S. Electric & Gas UNS Energy 1,276 1,087 1,201 1,138 581 5,283 Central Hudson 462 480 44

  21. Slide 21: Major Capital Projects

    MAJOR CAPITAL PROJECTS 2025- Estimated Completion ($ Millions) 2024A 2029F Date Major Capital ITC MISO LRTP(1) 64 1,704 Various Projects 23% UNS IRP Related Generation(2) 1 1,620 Various UNS Roadrunner Reserve Battery Storage Project 1 286 51 2025 UNS Roadrunner Reserve Battery Storage Project 2 UNS

  22. Slide 22: 2024-2029 Rate Base by Business Unit

    2024-2029 RATE BASE BY BUSINESS UNIT Rate Base 5-YEAR CAGR to ($BILLIONS, EXCEPT FOR CAGR) 2024A 2025F 2026F 2027F 2028F 2029F 2029 Regulated – Independent Electric Transmission ITC (1) 12.5 12.8 13.9 14.8 15.7 16.5 6.8% Regulated – U.S. Electric & Gas (2) UNS Energy 7.6 7.7 8.3 8.8 9.8 10.7 6.7% Ce

  23. Slide 23: Sensitivity Exposure & Hedging

    SENSITIVITY EXPOSURE & HEDGING ROE & Equity Ratio Foreign Exchange ROE Equity • Assumed USD:CAD FX rate of 1.30 for 2025-2029 Capital Plan +/- 25 bps +/- 100 bps • ~65% of regulated earnings(1)/ 60% of capital plan in USD at ITC $0.035 $0.030 U.S. & Caribbean utilities UNS Energy $0.025 $0.015 • +/-

  24. Slide 24: Ongoing Regulatory Proceedings

    ONGOING REGULATORY PROCEEDINGS Transmission Incentives In 2021, FERC issued a supplemental NOPR proposing to eliminate the 50-bps RTO adder for transmission owners that have been RTO members for longer than three years; the timing and outcome of this proceeding are unknown TEP General Rate Applicati

  25. Slide 25: Sustainability Leadership

    SUSTAINABILITY LEADERSHIP Climate and Innovation Community and Indigenous Relations • Over the last five years, Fortis has achieved consistent progress to decarbonize our • Building on our strong record of mutually beneficial partnerships with energy mix and deliver cleaner energy to customers: Indi

  26. Slide 26: Q2 2025 Sales Trends

    Q2 2025 SALES TRENDS CHANGE IN Q2 2025 vs. Q2 2024 RETAIL ENERGY SALES TRENDS SALES N/A • Peak load down 1% primarily due to cooler weather in Michigan (1) • Decrease primarily due to lower average use associated with milder -2% temperatures; absent weather impacts, retail sales flat and C&I sales d

  27. Slide 27: Long-Term Debt Maturities

    LONG-TERM DEBT MATURITIES 10-Year Debt Maturities $2.5 $2.0 $1.5 billions $1.0 $0.5 $- 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2033F 2034F Non-Regulated (1) Regulated Note: U.S. dollar-denominated debt translated at June 30, 2025 USD:CAD closing foreign exchange rate of 1.36. (1) Includes no

  28. Slide 28: Strong Investment-Grade Credit Ratings

    STRONG INVESTMENT-GRADE CREDIT RATINGS Company Fortis Inc. A-(1) A (low) BBB+ Baa3 ITC Holdings Corp. A-(1) n/a n/a Baa2 ITC Regulated Subsidiaries A+ n/a n/a A1 TEP A- n/a n/a A3 Central Hudson BBB+ n/a BBB Baa1 FortisBC Energy n/a A n/a A3 FortisBC Electric n/a A (low) n/a Baa1 FortisAlberta A- A

  29. Slide 29: Glossary

    GLOSSARY ACC Arizona Corporation Commission ITC Investment Holdings Inc., an indirect 80.1%-owned subsidiary of Fortis, together with its subsidiaries, including International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC, AMI Advanced Metering Infrastructure ITC

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