Uil Co. Ltd. · KRX:049520
Uil — IPO Roadshow (September 2010)
25 slides from Uil's IPO roadshow presentation, Sep 15, 2010
Slide 1: Investor Presentation: Follow-On Offering
Investor Presentation September 13, 2010 Follow-On Offering UIL Holdings Corporation UIL Holdings Corporation (the "Issuer") has filed a registration statement (including a base prospectus) and a related preliminary prospectus supplement dated September 13, 2010 with the SEC for the offering to whic
Slide 2: Safe Harbor Provision
2 Safe Harbor Provision Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management's intentions, plans, beliefs, expectations
Slide 3: Offering Summary
3 Offering Summary Issuer: UIL Holdings Corporation Ticker / Exchange: UIL/NYSE Offering Size: 17.7MM shares of common stock (100% Primary) Over Allotment Option: 15% Use of Proceeds: To partially fund the acquisition of The Southern Connecticut Gas Company ("SCG"), Connecticut Natural Gas Corporati
Slide 4: Investment Highlights
4 Investment Highlights Attractive Dividend (6.4% Yield) (2) Current annual dividend of $1.728 per share UIL dividend well supported by core regulated earnings combined with the enhanced cash flow and expected earnings per share accretion from the acquisition Visible Regulated Growth Opportunities A
Slide 5: UIL - Current Corporate Structure
5 UIL - Current Corporate Structure Retail Distribution ~60% of rate base ~53% of '09 Net Income (4) Transmission ~40% of rate base ~47% of '09 Net Income 2009 Distribution Avg. Rate Base $492MM 2009 CTA (5) Avg. Rate Base $162MM Allowed ROE of 8.75% in 2010 with full revenue decoupling Attractive F
Slide 6: Pending Acquisition of SCG, CNG and Berkshire
6 Pending Acquisition of SCG, CNG and Berkshire Description Acquisition of three regulated gas LDCs owned by Iberdrola USA with approximately 366,000 customers(1) announced on May 25, 2010 Southern Connecticut Gas - 173,000 customers(1) Connecticut Natural Gas - 158,000 customers(1) Berkshire Gas Co
Slide 7: UIL - Post-acquisition Corporate Structure
7 UIL - Post-acquisition Corporate Structure Service territory: 512 sq miles from Westport, CT to Old Saybrook, CT ~173,000 customers 324 employees 2,269 miles of mains with ~131,000 services 2009 rate case allowed ROE of 9.26% (1) Southern Connecticut Gas (SCG) Service territory: 716 sq miles in Gr
Slide 8: Strategic Rationale for Acquisition
8 Strategic Rationale for Acquisition Value Enhancing Cash flow accretive immediately after close EPS accretive beginning in the first full year following closing (2012) Enhanced cash flow and earnings per share expected to provide continued support for UIL's dividend Asset Diversification Improves
Slide 9: Significantly Diversifies Business Mix
9 2009 Adjusted EBITDA (1) 2009 Adjusted Net Income (1) Significantly Diversifies Business Mix Standalone Pro forma Electric 220 220 Gas 128 Totals (invisible) 220 348 Standalone Pro forma Electric 54 54 Gas 37 UIL Debt -12 Totals (invisible) 54 79 2009 Average Rate Base Customers as of 6/30/10 Stan
Slide 10: Significant Near-Term Regulated Capital Investment Pipeline
10 Total Capex ($MM) 2011P - 2014P Distribution $541 Transmission 259 GenConn 63 UIL (Total) $863 Acquired Utilities (1) 248 Total $1,111 Significant Near-Term Regulated Capital Investment Pipeline ($MM) 2009A 2010P 2011P 2012P 2013P 2014P Distribution 95 147 187 129 111 114 Transmission 29 74 75 70
Slide 11: UI Base 10-Year T&D Capital Investment Program
11 Transmission Investments Distribution Investments UI Base 10-Year T&D Capital Investment Program Aging Infrastructure 490.1 Capacity 323.9 System Operations 131.5 Core Support 319.8 2010P - 2019P: $1,265MM 2010P - 2019P: $537MM Capacity $324MM Aging Infrastructure $490MM System Operations $132MM
Slide 12: GenConn Energy LLC
12 GenConn Energy LLC Regulated cost-of-service approach utilizing contract for differences Return on equity, lifetime floor - 9.75% 50/50 debt/equity Status Devon facility is now operating; contractual requirements met as of 9/10/10 Middletown facility on schedule to be in- service in June 2011 - c
Slide 13: UI Transmission - Recent NEEWS Agreement
13 UI Transmission - Recent NEEWS Agreement On 7/14/10 entered into an agreement with Connecticut Light & Power ("CL&P," a subsidiary of Northeast Utilities) under which UI will have the right to invest in and own transmission assets associated with the CT portion of CL&P's NEEWS projects Total expe
Slide 14: Near-Term Average Rate Base Profile
14 2009 2010P 2011P 2012P 2013P 2014P Distribution 492 518 608 763 866 915 Transmission 401 409 423 489 557 590 GenConn 162 128 92 54 15 Target 857.3558012 862.9645194 869.2578438 882.1170454 1055 1055 1980.355801 2168.964519 2307.257844 2387.117045 Near-Term Average Rate Base Profile (Excluding Gen
Slide 15: UI Transmission Growth
UI Transmission Growth Renewable Requirement, Relative Locations Existing Renewables v. Region-wide RPS Governors' Blueprint, ISO-NE Study Significant Transmission build-out indicated Potential $7Bn - $10Bn range, could be higher or lower to satisfy a 4,000 - 12,000 MW need Cost to New England likel
Slide 16: Connecticut Department of Public Utility Control (DPUC)
Connecticut Department of Public Utility Control (DPUC) Distribution currently operating under 2 year rate plan with full revenue decoupling pilot Allowed ROE of 8.75%, based on a capital structure of 50.0% equity Connecticut Department of Public Utility Control (DPUC) Distribution currently operati
Slide 17: Credit Ratings and Capital Structure
17 Capital Structure (1) Credit Ratings and Capital Structure Standalone (06/30/10) Maintenance of investment grade credit ratings is an important objective Note: (1) Assumes $475MM of equity financing and $436MM of debt financing for the acquisition; if greenshoe is fully exercised pro forma Debt R
Slide 18: Debt Maturities and Liquidity Overview
18 Pro Forma Near-Term Debt Maturities (1) Standalone Liquidity Overview (6/30/10)* Strong Liquidity Position and Manageable Near-Term Debt Maturities *UIL Plans to Increase Size of Credit Facilities to Provide Adequate Liquidity for Larger Business Note: (1) 2010 amounts do not include $31.8MM used
Slide 19: Attractive Dividend
19 Attractive Dividend UIL has paid a consecutive quarterly dividend for over 100 years (1) Dividend has been set at current annual level of $1.728 per share for more than 14 years Management is focused on maintaining the dividend and reducing the payout ratio over time through earnings growth Pendi
Slide 20: Investment Highlights
20 Investment Highlights Attractive Dividend (6.4% Yield) (2) Current annual dividend of $1.728 per share Core regulated earnings combined with the enhanced cash flow and expected earnings per share accretion from the acquisition provide continued support for UIL's dividend Visible Regulated Growth
Slide 21: UIL Holdings Corporation
BIL UIL HOLDINGS CORPORATION
Slide 22: Appendix
BIL UIL HOLDINGS CORPORATION Appendix
Slide 23: Summary Pro Forma Financials
23 2009 2009 2009 6 Months Ended June 30, 2010 6 Months Ended June 30, 2010 6 Months Ended June 30, 2010 ($MM) UIL Target Pro Forma (1) UIL Target Pro Forma (1) Gross Margin $563 $323 $887 $298 $187 $486 Adjusted EBITDA (2) $220 $128 $348 $113 $92 $212 Adjusted Net Income (2) $54 $37 $79 $26 $34 $59
Slide 24: Net Income to Adjusted EBITDA Reconciliation
24 Net Income to Adjusted EBITDA Reconciliation UIL Holdings UIL Holdings Target Target Pro Forma Pro Forma ($MM) FY 2009 Six Months Ended June 30, 2010 FY 2009 Six Months Ended June 30, 2010 FY 2009 Six Months Ended June 30, 2010 Net Income (GAAP) $54 $26 $25 ($235) $67 ($211) Adjustments Interest
Slide 25: Adjusted Net Income Reconciliation
25 Adjusted Net Income Reconciliation UIL Holdings UIL Holdings Target Target Pro Forma Pro Forma ($MM) FY 2009 Six Months Ended June 30, 2010 FY 2009 Six Months Ended June 30, 2010 FY 2009 Six Months Ended June 30, 2010 Net Income (GAAP) $54 $26 $25 ($235) $67 ($211) One-Time Adjustments Goodwill I