Fortis Inc. · TSX:FTS
Fortis — Q1 2015 Earnings Presentation
14 slides from Fortis's earnings presentation, May 5, 2015
Slide 1: First Quarter 2015 Earnings Call
First Quarter 2015 Earnings Call May 5, 2015
Slide 2: Logistics
Logistics Donna Hynes Director, Investor & Public Relations
Slide 3: Forward-Looking Statement
Forward‐Looking Statement Fortis Inc. (the "Corporation") includes forward‐looking information in this presentation within the meaning of applicable securities laws in Canada (“forward‐looking information”). The purpose of the forward‐looking information is to provide management’s expectations regar
Slide 4: Corporate Update
Corporate Update Barry Perry President and CEO
Slide 5: Q1 2015
Q1 2015 • Q1 Performance – Strong performance from major regulated utilities – FortisAlberta Capital Tracker – UNS Energy seasonality • Q1 Focus – Integration of UNS Energy – Execution of $2.2 billion 2015 capital expenditure program – Strategic review of Fortis Properties and sale of small hydro as
Slide 6: Positioned for strong performance in 2015
2015 • Positioned for strong performance in 2015 • Key drivers – UNS Energy full year contribution and favourable F/X rates – Waneta Expansion online early April – FortisAlberta Capital Tracker – Central Hudson rates to be rebased midyear 6
Slide 7: Growth Through Investment
Growth Through Investment • Major energy infrastructure projects – $440 million Tilbury Phase 1A progressing as planned – Potential LNG projects $450 million Tilbury Phase 1B $600 million pipeline expansion to Woodfibre LNG site • Entered period of significant organic growth – $2.2 billion 2015
Slide 8: Focus
Focus • Provide safe, reliable and cost‐efficient energy services • Focus over the next 12‐18 months – Execute capital expenditure program – Progress LNG opportunities – Complete strategic review of Fortis Properties and sale of small hydro assets in Upstate New York and Ontario • Well positioned fo
Slide 9: Financial Results and Regulatory Update
Financial Results Regulatory Update Karl Smith Executive VP, Chief Financial Officer
Slide 10: Earnings
Earnings Q1 ($M, except as noted) 2015 2014 Change Basic Earnings per Common Share $0.72 $0.67 $0.05 Net Earnings Attributable to Common Shares 198 143 55 Adjusting items: Acquisition-related costs 12 (12) Capital Tracker true-up (10) (10) F/X gain Belize Electricity (9) (4) (5) Griffith earnings (5
Slide 11: Foreign Exchange Impacts
Foreign Exchange Impacts • UNS Energy expected to be accretive to 2015 earnings per common share • 40% of the total assets of Fortis are in the United States • Each 5% change in the US dollar‐to‐Canadian dollar exchange rate is estimated to have a 4‐cent impact on basic earnings per common share on
Slide 12: Financing
Financing • Over $400 million of long‐term debt raised in Q1 2015 • Cash flow from operating activities for Q1 2015 was $450 million • Low debt maturity profile • Unutilized committed credit facilities $2.1 billion • Strong access to capital. Investment‐grade credit ratings. • Consolidated capital s
Slide 13: Regulatory
Regulatory • FortisAlberta – 2013‐2015 Capital Tracker decision – 2013‐2015 Generic Cost of Capital decision – 2016 Generic Cost of Capital proceeding • Central Hudson – General Rate Application for July 2015 rates – Reforming the Energy Vision (REV) proceeding 13
Slide 14: Q&A
Q&A Leader in Electric and Gas Utilities in North America