Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Investor Presentation (March 2023)
45 slides from Canadian Utilities Limited Class A's investor presentation, March 2023
Slide 1: Disclaimer
DISCLAIMER Due to uncertainty surrounding the application of recent amendments to the Competition Act (Canada), the documents incorporated by reference herein are referenced for historical information purposes only and do not constitute active or current representations of Canadian Utilities Limited
Slide 2: Canadian Utilities Limited Investor Presentation
CLI CANADIAN UTILITIES LIMITED ME 4) ATCO company Investor | Presentation Canadian Utilities Limited
Slide 3: Agenda
INVESTOR PRESENTATION Agenda Executive Committee 3 Financial Overview 4 Canadian Utilities Overview 9 Environment, Sustainability and Governance 13 Utilities 17 Energy Infrastructure 23 Retail Energy 37 Appendix 38 Legal Notice 42 Canadian Utilities Investor Presentation
Slide 4: Executive Committee
EXECUTIVE COMMITTEE Nancy C. Southern Brian P. Shkrobot Melanie L. Bayley M. George Constantinescu Chair & Chief Executive Officer, Executive Vice President President, ATCO Electric Senior Vice President Canadian Utilities Limited & Chief Financial Officer & Chief Transformation Officer Bob J. Myles
Slide 5: Financial Strength: Continued Growth
2015 FINANCIAL STRENGTH decon and global O commodity Continued Growth oe. 2013 2016 2020 LONG-TERM TRACK RECORD OF ADJUSTED EARNINGS GROWTH Giger | Aber cow THROUGH VARIOUS GLOBAL MACRO-ECONOMIC CYCLES 2008 l l 1 Financial $655 MILLION OF ADJUSTED EARNINGS IN 2022! eae L 80 81 82 83 84 85 86 87 88 8
Slide 6: Financial Strength: Continued Growth
FINANCIAL STRENGTH Continued Growth LONGEST TRACK RECORD OF ANNUAL DIVIDEND INCREASES OF ANY CANADIAN PUBLICLY TRADED COMPANY 51 YEARS OF ANNUAL DIVIDEND INCREASES* DIVIDENDS DECLARED OF $1.78 PER SHARE IN 2022 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01
Slide 7: Earnings Profile
Earnings Profile Total 2022 Adjusted Earnings’ $35M Energy Infrastructure Utilities provide strong foundational earnings. $714M Utilities incl. LUMA 1, For additional information about adjusted earnings, please see the "Legal Notice" slide. 2, Total includes $94M in Costs attributable to the Company
Slide 8: Debt Profile
Debt Profile Debt Maturity Profile: 20-Year Outlook WELL-DISTRIBUTED AND EASILY MANAGEABLE DEBT MATURITY PROFILES 2023 2024 aa 2028 ad 2034 2035 2036 2037 2038 2039 aa 2041 2042 =CU Inc. 1, As at December 31, 2022. Canadian Utilities Investor Presentation
Slide 9: Strong Credit Ratings
STRONG CREDIT RATINGS CL LINC. | An ATGO Company Cc CANADIAN UTILITIES Gu LIMITED ‘An arco Company IN| S&P Global Ratings — FitchRatings Canadian Utilities Investor Presentation
Slide 10: Canadian Utilities Limited Overview
Canadian Utilities Limited Overview For recent filings and further details please visit: canadianutilities.com
Slide 11: Canadian Utilities Limited
CANADIAN UTILITIES OVERVIEW Canadian Utilities Limited Canadian Utilities is an ATCO company with approximately 5,000 employees and assets of $22 billion.’ We are publicly traded on the Toronto Stock Exchange under the tickers CU (non-voting) and CU.X (voting). As a diversified global energy infrast
Slide 12: Organizational Structure
CANADIAN UTILITIES OVERVIEW Organizational Structure CANADIAN UTILITIES LIMITED Canadian Utilities Investor Presentation n
Slide 13: Strategy
CANADIAN UTILITIES OVERVIEW Strategy * Build on our core utility business and invest in activities aimed at advancing the energy transition and ensuring long-term resiliency. * Optimize our energy infrastructure assets and add new growth platforms. + Leverage our expertise in key markets, including
Slide 14: Our Commitment to ESG
OUR COMMITMENT TO ESG Canadian Utilities Commitment to Sustainability For Canadian Utilities, sustainability is more than an aspiration; it is interwoven into our strategy, our day-to-day operations, the products and services we provide, and the fabric of our people. It manifests across our business
Slide 15: Strategic 2030 ESG Targets
OUR COMMITMENT TO ESG Strategic 2030 ESG Targets Supporting the energy transition and reducing GHG emissions = Reducing net operational GHG emissions to earnings intensity by 30 per cent (Scope 1 and 2). Promoting inclusive growth in our workforce and communities Increasing net economic benefits to
Slide 16: Investing in Our Utilities Future
Pia Solar Installation, Fort Chipewyan, AB CANADIAN UTILITIES OVERVIEW Investing In Our Utilities Future We are answering the call for climate accountability while ensuring the sustainability, affordability, safety, and reliability of our energy system. DIGITIZATION OF THE GRID * Advanced Metering I
Slide 17: Energy Transition: Leading the Way
CANADIAN UTILITIES OVERVIEW Energy Transition: Leading The Way We recognize clean energy as being the future and we're proud to lead the energy transition. OUR ENERGY TRANSITION STRATEGY IS BROKEN DOWN INTO THREE KEY COMPONENTS: Renewable Generation Clean Fuels Energy Storage + Investing in solar an
Slide 18: Regulated Utilities
CANADIAN UTILITIES OVERVIEW Regulated Utilities i" \f 7 *2022 Mid-Year Rate Base is described in Canadian Utilities Limited's Management's Discussion and Analysis for the year-ended December 31, 2022 ies Canadian Utilities Investor Presentation
Slide 19: Operational Excellence
REGULATED UTILITIES Operational Excellence SINCE 2015, WE HAVE REDUCED OUR OPERATIONS AND MAINTENANCE COSTS: $11 per inh y 29 Pustomer" ELECTRICITY DISTRIBUTION NATURAL GAS DISTRIBUTION (ree OPERATIONAL EXCELLENCE AND LOWER COSTS BENEFIT OUR CUSTOMERS AND SHARE OWNERS 1. Adjusted for inflation. Cana
Slide 20: Regulated Utilities Returns vs Peers
CLI LINC An ATCO Company 10 YEAR AVERAGE (2012-2021) 10.6% AUC Approved Alberta Utility Peer CU Inc. Average? Average’ Canadian Utilities Investor Presentation 19
Slide 21: 3-year Capital Investment Plan
REGULATED UTILITIES 3-year Capital Investment Plan EXPECTED MID-YEAR RATE BASE GROWTH (C$ BILLIONS) $14.98 $16.0B a $1.3B 2% $2.5B Growth per year $3.0B 2022 2025E mElectricity Transmission Electricity Distribution =Natural Gas Distribution ™=Natural Gas Transmission Int'l Natural Gas Distribution *
Slide 22: LUMA Timeline
JUNE 22, 2020 JUNE 1, 2021 NOVEMBER 30, 2022
Slide 23: International: Key Contract Terms & Objectives
UTILITIES International Key Contract Terms & Objectives 2020 2021 NOVEMBER 30, 2022 | | | FRONT END TRANSITION PERIOD SUPPLEMENTAL AGREMENT (18-MONTHS) * LUMA assumes responsibility for all in-scope operational matters to transform the T&D system into an efficient and modern utility Preparatory work
Slide 24: Energy Infrastructure Businesses
CANADIAN UTILITIES OVERVIEW Energy Infrastructure Businesses *Operating assets as of December 31, 2022, except for “Electricity Generation Canada" which includes 232MW. of renewable generation operating assets acquired on January 3, 2023, Canadian Utilities Investor Presentation 23
Slide 25: Electricity Generation
ENERGY INFRASTRUCTURE BUSINESSES Electricity Generation HIGHLY-CONTRACTED PORTFOLIO Long-Term Cas Contracted 400 MW OPERATING ASSETS ‘AS OF DECEMBER 31, 2022, (© RUN-OF-RIVER HYDRO 1 OLDMAN RIVER. 2. VERACRUZ NATURAL GAS 3 SAN LUIS POTOSI “4 KARRATHA 5 OSBORNE @ SOLAR GEL RESPLANDOR 7 PERTH Merchant
Slide 26: Acquisition of Renewable Generation Assets
RENEWABLE GENERATION Acquisition of Renewable Generation Assets + In January 2023, Canadian Utilities acquired 2 operating wind assets and a development pipeline of wind and solar projects. * The acquisition includes a majority interest in the 30 MW Adelaide wind facility in Ontario, the new 202 MW
Slide 27: Strategic Rationale of Acquisition
RENEWABLE GENERATION Strategic Rationale of Acquisition <a oS if Provides Penetration Immediate into Wind Scale and Market, Future Growth Underpinned Through by Long-Term Development Contracted \ Pipeline yy \ Assets yy 3 > Well-Aligned with Corporate ESG Strategy and Targets ne, Oo >» Accretive to
Slide 28: Why Renewable Generation?
RENEWABLE GENERATION Why Renewable Generation? We continue to grow our renewables portfolio as this is critical to both our business strategy and our embedded sustainability commitments. CLIMATE CHANGE AND ENVIRONMENT STEWARDSHIP As we look to reduce the carbon intensity of our electricity systems g
Slide 29: Saa Sé Energy Project (Beaver Creek Solar)
RENEWABLE GENERATION Saa Sé Energy Project (Beaver Creek Solar Project) * In December 2022, ATCO Electric Yukon and Copper NiistiU Limited Partnership (CNLP) announced a landmark Energy Purchase Agreement that will help the White River First Nation (WREN) reduce their reliance on diesel power. * Des
Slide 30: Barlow & Deerfoot
RENEWABLE GENERATION Barlow & Deerfoot * Canadian Utilities Limited acquired the rights to build two solar installations in Calgary, from DP Energy, a privately held energy developer. * Once completed, the (near Barlow Trail and 114 Avenue SE) and (114 Avenue and 52 Street SE) solar projects will be
Slide 31: Empress Solar Project
RENEWABLE GENERATION Empress Solar Project + Acquired the development rights for a 39 MW photovoltaic solar facility near Empress, Alberta. + Electricity from the Empress Solar Project may be sold through a Power Purchase Agreement with uncontracted electricity sold into the grid. * Development acti
Slide 32: Clean Fuels Solutions
Ractive fuelling lutions a More Sustain: able world Presentation mT —_ ~~
Slide 33: Why Hydrogen?
CLEAN FUELS Why Hydrogen? + Weare committed to promoting a more environmentally-sustainable future by providing clean, reliable and affordable energy. + Itcan playa role in affordably decarbonizing the production of heat, particularly in our cold Canadian climate. + Alberta is already a leader in hy
Slide 34: Suncor ATCO Heartland Hydrogen Hub
CLEAN FUELS Suncor ATCO Heartland Hydrogen Hub Proposed World-Scale Clean Hydrogen JV Project with Suncor near Fort Saskatchewan, Alberta. + ATCO/Suncor partnership has received welcome support from Government of Canada and Government of Alberta. * Collaboration between governments and businesses ac
Slide 35: Clean Energy Innovation Park, Western Australia
CLEAN FUELS Clean Energy Innovation Park Western Australia * We continue to explore the development of Western Australia's first commercial scale green hydrogen facility. * This facility is contemplated to include a 10-MW electrolyser and plant capable of producing up to four tonnes of hydrogen per
Slide 36: Two Hills RNG Facility
CLEAN FUELS Two Hills RNG Facility * Canadian Utilities Limited, has partnered with Future Fuel Ltd. to build and operate the “Two Hills" RNG facility in Alberta. * ATCO's first commercial RNG production facility and a strategic investment in the clean fuels leg of our Energy Transition strategy. *
Slide 37: Energy Infrastructure Storage and Midstream Assets
NATURAL GAS STORAGE FACILITY 11 CARBON NATURAL GAS STORAGE 2. ALBERTA HUB NATURAL GAS STORAGE NATURAL GAS LIQUIDS STORAGE ALpenmis 3. ATCO HEARTLAND ENERGY CENTRE INDUSTRIAL INDUSTRIAL WATER SERVICES HEARTLAND 4 ATCO HEARTLAND INDUSTRIAL WATER SYSTEM REGION NON-REGULATED NATURAL GAS TRANSMISSION 5 M
Slide 38: Retail Energy
CANADIAN UTILITIES OVERVIEW Retail Energy RETAIL IS COMPRISED OF THREE SEGMENTS: Home Energy Business Energy Large Commercial Energy Cooking Classes & Programs Events & Catering BFK Café Home Products Repair & Maintenance Services Home Management Advice Canadian Utilities Investor Presentation 37
Slide 39: Appendix
Appendix 38
Slide 40: Utilities: Electricity Distribution & Transmission
Utilities Electricity Distribution & Transmission We build, own and operate electrical distribution and transmission facilities o Approximately 11,000 km of transmission lines, in addition to delivering power to, and operating 3,500-km's of distribution lines owned by Rural Electrification Associati
Slide 41: Natural Gas Distribution & Transmission
Natural Gas Distribution & Transmission We build, own, and operate natural gas ALBERTA [)} AREA SERVED BY NATURAL GAS DISTRIBUTION distribution facilities in Alberta o Alberta's largest natural gas distribution company o Serves approximately 1.3 million customers in nearly 300 Alberta communities |
Slide 42: Australia Utility
Australia Utility We provide safe and reliable natural gas service to the Perth metropolitan area and the wider Western Australian community o 14,000 km of natural gas distribution pipelines and associated infrastructure o Serves 18 communities and approximately 792,000 customers NORTHERN TERRITORIE
Slide 43: Legal Notice: Forward-Looking Information Advisory
Legal Notice Forward-Looking Information Advisory Statements made by company representatives and information provided in this presentation may be considered forward-looking information. Such information includes, but is not limited to, references to: strategic plans, goals and targets, including tho
Slide 44: Legal Notice: Other Financial Measure Disclosure Advisory
Legal Notice Other Financial Measure Disclosure Advisory This presentation includes references to consolidated adjusted earnings, which is considered to be a “total of segments measure" as that term is defined in National Instrument 52-112 Non- GAAP and Other Financial Measures Disclosure. The most
Slide 45: Canadian Utilities Limited Contact
_ CANADIAN UTILITIES LIMITED Fe An ATCO Company a 7 ®www.canadianutilities.com ‘ Tel: 403.292.7500 3 x ™, » A stor Relations “invest orRelations@at 5300 ilinng Street SW Calgary, Alberta T3E 8B4 _ Canada
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