Uil Co. Ltd. · KRX:049520
Uil — FY2008 Earnings Presentation
22 slides from Uil's earnings presentation, Feb 18, 2009
Slide 1: Transforming Investment into Future Value
Exhibit 4th Quarter and Full Year 2008 99.1 Earnings Conference Call February 19, 2009 TRANSFORMING INVESTMENT INTO FUTURE VALUE 1
Slide 2: Important Note to Investors
Important Note to Investors 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, expectati
Slide 3: UIL Holdings 4Q and Full Year 2008 Earnings Call
UIL Holdings 4Q and Full Year 2008 Earnings Call Ø Discussion Topics › 2008 Earnings › Rate Case Summary › Dividend › GenConn › Middletown-to-Norwalk Transmission Project › 2008 Earnings › 2009 Earnings Guidance › Financing Plan 3
Slide 4: 4Q and Full Year 2008 Financial Results - Summary
4Q and Full Year 2008 Financial Results - Summary Ø 4Q ’08 earnings from continuing operations of $8.8 million, or $0.36 per share, compared to $8.7 million, or $0.35 per share in 4Q ’07 Ø Full year ’08 earnings from continuing operations of $48.4 million, or $1.93 per share, compared to $46.7 milli
Slide 5: Rate Case Decision - Docket #08-07-04
Rate Case Decision - Docket #08-07-04 Request: Ø Two year rate plan Ø Revenue increase: › $52.4 million in 2009, residential increase of 7.2% (total bill basis) › $29.8 million in 2010, residential increase of 4.3% (total bill basis) › Above values were before 2009 pension and postretirement expense
Slide 6: Rate Case Decision - cont.
Rate Case Decision - cont. Favorable Items Ø Implemented UI’s proposed revenue decoupling methodology › Annual true-up 4 If revenues < approved, rates will adjust to collect additional revenues 4 If revenues > approved, excess will be retuned to customers › Decoupling methodology will be reevaluated
Slide 7: Rate Case Decision - cont.
Rate Case Decision - cont. Ø Cost of Debt tracking mechanism › Annual true-up 4 Provided embedded debt cost after issuances, differs from allowed embedded cost of capital of 6.42% for 2009, 6.76% for 2010 Ø Minimum 25 basis points and results in +/- $1.5 million interest expense or greater Ø Sharing
Slide 8: Dividend
Dividend Ø With the distribution rate decision now finalized, UIL’s Board of Directors has affirmed its commitment to continue to pay the dividend at its current level › Consistent annual dividend of $1.728 per share for more than 12 years › Paid a consecutive quarterly dividend, without suspension,
Slide 9: GenConn Energy - Peaking Generation
GenConn Energy - Peaking Generation Partnership between UI and NRG Ø Regulated COS approach Project Development Highlights › ROE, lifetime floor - - 9.75% Locations Devon & Middletown › 50/50 debt to equity Permits Anticipated 1Q ‘09 › 30-year O&M costs reviewed annually Approximate Cost $400 Millio
Slide 10: Middletown-to-Norwalk 345kV Transmission Project
Middletown-to-Norwalk 345kV Transmission Project Ø Energized ahead of schedule: December 2008 Ø UI’s cost approximately: $290 million Ø Rate base growth: $300 million 2 Miles of 3 Miles of 345kV Ø Safety: 345kV OH › > 725 thousand hrs worked with zero recordable OH incidents › OSHA Partnership UI to
Slide 11: 4Q and Full Year 2008 Financial Results
4Q and Full Year 2008 Financial Results 11
Slide 12: 4Q and Full Year 2008 Earnings Details Compared to the Same Periods in 2007
4Q and Full Year 2008 Earnings Details Compared to the Same Periods in 2007 The United Illuminating Company Distribution, CTA & Other › Distribution earnings for both the quarter and full year 2008 continue to be impacted by lower kilowatt hour sales, increased interest expense from higher borrowing
Slide 13: 4Q and FY compared to 2007 - cont.
4Q and FY compared to 2007 - cont. Distribution, CTA & Other - cont. › Increased revenue for the quarter and the year from previously approved increases in distribution rate components › Mark-to-market adjustments for non-qualified pensions (below the line) reduced earnings $0.03 per share in 4Q ’08
Slide 14: 4Q and FY compared to 2007 - cont.
4Q and FY compared to 2007 - cont. Depreciation expense increased in 2008 by $0.07 per share, due to capital spending Increased interest expense from higher borrowings, $0.04 per share in 4Q ’08 › FY ’08, $0.21 per share Corporate and Other › The absence of interest income of $0.02 per share recorde
Slide 15: 2009 Earnings Guidance
2009 Earnings Guidance 2008 2009 Actual EPS Guidance Total United Illuminating Company $2.03 $1.90 - $2.10 Distribution, CTA & Other 1.09 0.90 - 1.10 Transmission 0.94 0.95 - 1.05 Corporate (0.10) (0.12) - (0.07) Total Continuing Operations $1.93 $1.80 - $2.00 (0.01) Total UIL $1.92 2009 expectation
Slide 16: 2009 Capital Expenditure Projections
2009 Capital Expenditure Projections 16
Slide 17: Financing Plan
Financing Plan Ø Debt › February 2009 - remarketed Pollution Control Revenue Bonds 4 $7.5 million @ 5.75% for a 3-year period ending February 1, 2012 4 $71 million @ 7.125% for a 3-year period ending February 1, 2012 › Refinancing $51 million maturing debt in 2009 › DPUC approved an application to a
Slide 18: Financing Plan - cont.
Financing Plan - cont. Ø Liquidity › UIL & UI have a $175 million joint short-term credit facility due December 2011 4 UI had $148 million outstanding as of December 31, 2008 Ø GenConn financing $40 million Ø Tax exempt bond $25 million 4 UIL had $1 million standby letter of credit outstanding as of
Slide 19: Q&A
Q&A 19
Slide 20: 2008 Cap. Ex and Average Rate Base
2008 Cap. Ex and Average Rate Base 20
Slide 21: Additional Information
Earnings per Share - diluted Continuing Operations Discontinued Operations Net Eamings Quarter Ended Year Ended December 31, December 31, 2008 2007 2008 2007 $ 035 $$ 035 § (0.01) (0.01) 190 $ 1.85 (0.01) (0.08) $ 0.34 $ 034 § 1.89 $ VAG Avg. Number Outstanding Shares - basic 25,159 25,024 25,114 24
Slide 22: Slide 22