Slide 1: Q4 2024 Earnings Conference Call
Q4 2024 EARNINGS CONFERENCE CALL February 14, 2025
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
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
Slide 4: 2024 Year-in-Review: Strong Operational & Financial Performance
2024 YEAR-IN-REVIEW STRONG OPERATIONAL & FINANCIAL PERFORMANCE Delivered Top Quartile $5.2 Billion ~6% Safety & Capital Adjusted Reliability Expenditures EPS growth Ranked #1 in 51 Consecutive Years Reduction in GHG Emissions of Increases Governance 34% in Dividends Paid By the Globe and Mail Compar
Slide 5: Delivering Safe, Reliable & Affordable Service
DELIVERING SAFE, RELIABLE & AFFORDABLE SERVICE All-Injury Average Electricity Customer Controllable Operating Frequency Rate(1) Outage Duration (Hours) Costs per Customer 1.70 1.58 4.3 4.2 3.8 3.3 2.3 1.9 2.0 2.0 1.9 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 For
Slide 6: Total Shareholder Returns
TOTAL SHAREHOLDER RETURNS Average Annual Cumulative 20-Year Total Shareholder Returns Total Shareholder Return 616% 1-Year 14.1% 377% 5-Year 6.1% 368% 10-Year 8.4% 20-Year 10.3% 2004 2009 2014 2019 2024 Fortis S&P/TSX Composite S&P/TSX Capped Utilities Note: Average annual and cumulative tota
Slide 7: Highly Executable 2025-2029 $26B Capital Plan
HIGHLY EXECUTABLE 2025-2029 $26B CAPITAL PLAN SUPPORTS LOW-RISK RATE BASE GROWTH OF ~6.5% 2025-2029 Consolidated Capital Plan Rate Base $53.0B Virtually all Regulated Investments $39.0B 23% Major Capital Projects 2024A 2029F Note: U.S. dollar-denominated rate base converted at a foreign exchange rat
Slide 8: Update on Key Opportunities to Expand and Extend Growth Beyond the Plan
UPDATE ON KEY OPPORTUNITIES TO EXPAND AND EXTEND GROWTH BEYOND THE PLAN MISO LRTP Tranche 2.1 • In December 2024, the MISO Board approved the Tranche 2.1 portfolio of projects which includes 24 projects totaling US$21.8B • ITC now expects US$3.7-$4.2B of capital investment for projects in Michigan a
Slide 9: Additional Opportunities to Expand and Extend Growth Beyond the Plan
ADDITIONAL OPPORTUNITIES TO EXPAND AND EXTEND GROWTH BEYOND THE PLAN • MISO LRTP Tranche 2.1 • 2023 IRP • Tilbury LNG Expansion • Transmission Investments Projects in Iowa Investment opportunity of Marine bunkering Regional transmission as minority ~US$2.5-$5.0B through 2038 partner in NY Transco •
Slide 10: Dividend Guidance Supported by Long-Term Growth Strategy
DIVIDEND GUIDANCE SUPPORTED BY LONG-TERM GROWTH STRATEGY 4.2% Increase in Q4 2024 Dividend 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 10
Slide 11: Fourth Quarter Results
FOURTH QUARTER RESULTS Reported EPS Key Q4 2024 Adjusted EPS Drivers • Rate base growth $0.78 $0.79 • New customer rates at Central Hudson • Timing impacts associated with the effective Q4 2023 Q4 2024 date of disposition of Aitken Creek in 2023 Adjusted EPS $0.83 $0.72 Q4 2023 Q4 2024 Note: Adjuste
Slide 12: Annual Results
ANNUAL RESULTS Reported EPS $3.24 $3.10 2024 Reported EPS $0.14 over 2023 2023 2024 Adjusted EPS 2024 Adjusted EPS Growth $0.19 over 2023 $3.28 $3.09 2023 2024 Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to Slide 21 for the Non-U.S. GAAP reconciliation. 12
Slide 13: Annual 2024 EPS Drivers
ANNUAL 2024 EPS DRIVERS $0.03 ($0.08) $0.09 $0.01 ($0.05) $0.12 $3.28 $0.07 $3.09 ~6% Adjusted EPS Growth 2023 U.S. U.S. Western Other Corporate and Foreign Weighted 2024 (3) Adjusted EPS Transmission Electric & Canadian Electric Other Exchange Average Adjusted EPS (ITC) Gas (1) Electric & Gas(2) Sh
Slide 14: Three-Year Look Back
THREE-YEAR LOOK BACK Adjusted EPS & Rate Base Adjusted Dividend Payout Ratio 41.5 $37.0B $39.0B 3.5 $3.28 115.0% 36.5 $34.1B 3.3 $3.09 $31.1B 3.1 105.0% 31.5 2.9 $2.78 26.5 2.7 $2.59 95.0% 21.5 2.5 85.0% 2.3 79.2% 16.5 78.1% 73.9% 2.1 75.0% 11.5 72.7% 1.9 65.0% 6.5 1.7 1.5 1.5 55.0% 2021 2022 2023 2
Slide 15: Liquidity, Funding & Foreign Exchange
LIQUIDITY, FUNDING & FOREIGN EXCHANGE Q4 2024 Long-Term Balanced Approach Foreign Exchange & Debt Issuances To Funding Growth Hedging • ITC • Capital plan reflects assumed USD:CAD ▪ US$125M 11-year bonds at 4.88% FX of 1.30 for 2025-2029 Cash From Net Debt(3) ▪ US$125M 19-year bonds at 5.25% $26B Op
Slide 16: Investment-Grade Credit Ratings
INVESTMENT-GRADE CREDIT RATINGS Moody’s CFO/Debt(1) Credit Ratings & Outlooks 12.1% 11.4% 11.0% Baa3 A-(3) A (low) (2) Stable Negative Stable 2023 2024 2025-2029F Avg. S&P FFO/Debt(1) Key Credit Strengths 12.2% Strong business risk profile Geographic and regulatory 11.6% diversity 11.2% Effectively
Slide 17: Recent Regulatory Activity
RECENT REGULATORY ACTIVITY ACC Generic UNS Gas General Regulatory Lag Docket Rate Application • In December 2024, a formula rate plan policy • In November 2024, UNS Gas filed a general rate statement was approved by the ACC application with the ACC requesting an increase in gas delivery rates effect
Slide 18: Why Invest in Fortis?
SUSTAINABLE GROWTH WHY INVEST IN FORTIS? Focused on Executing Strong Robust Transparent Rate Base Growth Transmission Funding Plan Investment Pipeline Cleaner 4-6% Annual Investment-Grade Energy Transition Dividend Growth Credit Ratings LOW-RISK Safe, Well-Run Utilities Regulatory & Constructive Str
Slide 19: Upcoming Events
UPCOMING EVENTS Expected Earnings Release Dates • Q1 2025 – May 7, 2025 • Q2 2025 – August 1, 2025 19
Slide 20: Q4 2024 Earnings Conference Call
Q4 2024 EARNINGS CONFERENCE CALL February 14, 2025
Slide 21: Non-U.S. GAAP Reconciliation
NON-U.S. GAAP RECONCILIATION ($MILLIONS, EXCEPT EPS) Q4 2024 Q4 2023 VARIANCE 2024 2023 VARIANCE Adjusted Net Earnings Net Earnings 396 381 15 1,606 1,506 100 Adjusting items: October 2024 MISO base ROE decision(1) 20 - 20 20 - 20 Disposition of Aitken Creek(2) - (31) 31 - (15) 15 Unrealized loss on
Slide 22: Fourth Quarter Results by Segment
FOURTH QUARTER RESULTS BY SEGMENT Fourth Quarter Earnings Variance Analysis by Business Unit ($MILLIONS, EXCEPT WEIGHTED AVERAGE SHARES ADJUSTED ADJUSTED Q4 2024 ADJUSTMENT (1) Q4 2023 ADJUSTMENT (1) VARIANCE AND EPS) Q4 2024 Q4 2023 Regulated – Independent Electric Transmission ITC 127 20 147 136 -
Slide 23: Annual Results by Segment
ANNUAL RESULTS BY SEGMENT Annual Earnings Variance Analysis by Business Unit ($MILLIONS, EXCEPT WEIGHTED AVERAGE SHARES ADJUSTED ADJUSTED 2024 ADJUSTMENT (1) 2023 ADJUSTMENT (1) VARIANCE AND EPS) 2024 2023 Regulated – Independent Electric Transmission ITC 542 20 562 508 9 517 45 Regulated – U.S. Ele
Slide 24: 2025-2029 Capital Plan by Business Unit
2025-2029 CAPITAL PLAN BY BUSINESS UNIT Capital Plan 2025-2029 ($MILLIONS) 2025F 2026F 2027F 2028F 2029F TOTAL Regulated – Independent Electric Transmission ITC 1,403 1,488 1,523 1,600 1,573 7,587 Regulated – U.S. Electric & Gas UNS Energy 1,276 1,087 1,201 1,138 581 5,283 Central Hudson 462 480 440
Slide 25: Major Capital Projects
MAJOR CAPITAL PROJECTS 2025- Estimated Completion ($ Millions) 2024A 2029F Date Major Capital ITC MISO LRTP(1) 64 1,704 Post-2029 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 U
Slide 26: 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% Cen
Slide 27: Sensitivity Exposure & Hedging
SENSITIVITY EXPOSURE & HEDGING ROE & Equity Ratio Foreign Exchange ROE Equity • Assumed USD:CAD FX rate of 1.30 for 2025-2029 +/- 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 • +/- $0.05 change
Slide 28: Ongoing Regulatory Proceedings
ONGOING REGULATORY PROCEEDINGS MISO Base ROE In October 2024 FERC issued an order revising the MISO Base ROE from 10.02% to 9.98% and removed use of the risk-premium model in establishing the base ROE; application of the order resulted in a regulatory liability of ~$39M (US$27M) recognized in Q4 202
Slide 29: Sustainability Leadership
SUSTAINABILITY LEADERSHIP Climate and Innovation Community and Indigenous Relations • 2050 net-zero direct emissions goal with interim targets to reduce GHG emissions 50% • Building on our strong record of mutually beneficial partnerships with by 2030 and 75% by 2035; the Corporation's ability to ac
Slide 30: 2024 Sales Trends
2024 SALES TRENDS CHANGE IN 2024 vs. 2023 RETAIL ENERGY SALES TRENDS SALES • Peak load down 2% primarily due to milder weather and decreased N/A economic activity (1) +1% • Increase primarily due to warmer weather and customer additions • Increase primarily due to higher average consumption by resid
Slide 31: Long Term Debt Maturities & Preference Share Dividends
LONG TERM DEBT MATURITIES & PREFERENCE SHARE DIVIDENDS Debt Maturities Preference Share Rate Resets 10-Year Debt Maturities $2.5 2025 $2.0 $1.5 billions Series H - $192M $1.0 June 1, 2025 $0.5 Series I - $58M June 1, 2025 $- 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2033F 2034F Non-Regulated (
Slide 32: Strong Investment-Grade Credit Ratings
STRONG INVESTMENT-GRADE CREDIT RATINGS (1) Company Fortis Inc. A-(2) Baa3 A (low) ITC Holdings Corp. A-(2) Baa2 n/a ITC Regulated Subsidiaries A A1 n/a TEP A- A3 n/a Central Hudson BBB+ Baa1 n/a FortisBC Energy n/a A3 A FortisBC Electric n/a Baa1 A (low) FortisAlberta A- Baa1 A (low) Newfoundland Po
Slide 33: Glossary
GLOSSARY ACC Arizona Corporation Commission IRP Integrated Resource Plan Aitken Creek Aitken Creek Gas Storage, ULC, a 93.8%-owned subsidiary of FortisBC Holdings Inc., sold on November 1, 2023. ITC Investment Holdings Inc., an indirect 80.1%-owned subsidiary of Fortis, together with its subsidiarie