Slide 1: Need to update picture (TH)
Need to update picture (TH)
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 U.S. Private Securities Litigation Reform Act of 1995, collectively referred to as "forw
Slide 3: Barry Perry, Fortis Inc. - President & CEO
Barry Perry Fortis Inc. - President & CEO
Slide 4: Business Update
Business Update • FortisBC Gas Supply • 2018 Sustainability Report Issued • Investors Days Held in Toronto and New York • FERC Issues Orders on ROE Matters 4
Slide 5: New 2019-2023 Business Plan Highlights
New 2019-2023 Business Plan Highlights $17.3B 6-7% 6% 5-Year Rate Base Average Annual Capital Plan Growth Dividend Growth Target to 2023 5
Slide 6: Low Risk, Highly Executable Capital Plan
Low Risk, Highly Executable Capital Plan Regulated 99% Smaller Projects 77% U.S. 55% Canada 42% Non-Regulated 1% Major Capital Projects 23% Caribbean 3% 6
Slide 7: 45 Years of Dividend Growth and 6% Guidance Extended to 2023
45 Years of Dividend Growth and 6% Guidance Extended to 2023 6% guidance generates annual dividend payment of $2.27 in 2023 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19F 21F 23F Actual dividend paid Forecasted dividend payments 7
Slide 8: Jocelyn Perry, Fortis Inc. – EVP, CFO
Jocelyn Perry Fortis Inc. – EVP, CFO
Slide 9: Fortis Delivers Strong Results
Fortis Delivers Strong Results Adjusted Q3 EPS (1) Adjusted Q3 YTD EPS (1) Strong Utility Performance $1.92 $1.91 Aitken Creek Mark-to-Market $0.65 Tempers Earnings $0.61 $3.2 Billion Capital Plan for 2018 Remains 2017 2018 2017 2018 on Track (1) Non-US GAAP measure. Reported Q3 EPS was $0.65 in 201
Slide 10: EPS Drivers – Q3
EPS Drivers – Q3 $0.01 ($0.01) $0.02 ($0.01) ($0.01) $0.02 Adjusted Q3 EPS $0.02 $0.65 $0.04 Higher Than 2017 $0.61 $8.4 Growth in Regulated $9.8 Businesses Q3 2017 U.S. Canadian & Foreign U.S. Electric Aitken Creek Energy Corporate Q3 2018 Adjusted Transmission Caribbean Exchange & Gas MTM Infrastr
Slide 11: EPS Drivers – September Year-to-Date
EPS Drivers – September Year-to-Date $0.02 ($0.02) $0.03 ($0.03) ($0.07) $0.03 $0.04 Aitken Creek $1.92 ($0.01) $1.91 Mark-to-Market Losses and $8.4 U.S. Tax Reform Tempers Earnings September Aitken Creek U.S. Tax U.S. U.S. Electric Canadian & Energy Foreign Corporate September YTD 2017 MTM Reform T
Slide 12: Effective Funding Plan For 5-Year Capital Program
Effective Funding Plan For 5-Year Capital Program Cash From Operations(1) No Discrete Equity 69%$17.3B Required to Fund Other(2) 5-Year Capital Plan 2% Asset Sales $17.3B Asset Sales Expected 6% 5-Year to Provide $1-$2 Billion Capital Plan in Proceeds ATM Program Unutilized Regulated Debt And Provid
Slide 13: Strengthening Our Credit Profile
Strengthening Our Credit Profile Improved Holdco Debt / Total Debt Credit Rating Agencies Rank 38% Business Risk Profile as Excellent/Strong(1) 33% Improving Credit Metrics Over The 5-Year Plan 2018F 2019F 2020F 2021F 2022F 2023F (1) S&P ranks business risk profile as excellent and Moody’s ranks it
Slide 14: Regulatory Outlook
Regulatory Outlook Recent Decisions: Independence Incentive Adder Complaint • Adder reduced to 0.25% • Effective April 20, 2018 Upcoming Proceedings and Decisions: MISO Base ROE Complaints Targeted TEP Rate Case Filing in 2019 Targeted PBR Renewal Filing in 2019 14
Slide 15: Why Invest In Fortis?
Why Invest In Fortis? Well-Run Utilities Highly Regulated Highly Diversified Strong Growth Profile 6% Dividend Guidance Opportunities Beyond Capital Plan 15
Slide 16: Expected Upcoming Events
Expected Upcoming Events Upcoming Q4 2018 Investor Presentations EEI – 53rd Financial November 13, 2018 Conference Scotiabank Energy November 14, 2018 Infrastructure Conference Expected Upcoming Earnings Release Dates Q4 – 2018 February 15, 2019 Q1 – 2019 May 1, 2019 16
Slide 17: Need to update picture (TH)
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Slide 18: Need to update picture (TH)
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Slide 19: Q3 2018 Results by Segment
Q3 2018 Results by Segment APPENDIX Third Quarter 2018 Variance Analysis by Segment ($millions, excluding weighted Adjusted Q3 Adjusted Q3 Adjusted Q3 Q3 2018 Adjustment (1) Q3 2017 Adjustment (1) average shares and EPS) 2018 2017 Variance Regulated – Independent Electric Transmission ITC 97 - 97 89
Slide 20: September YTD 2018 Results by Segment
September YTD 2018 Results by Segment APPENDIX September Year-to-Date 2018 Variance Analysis by Segment ($millions, excluding weighted Adjusted Adjusted Adjusted YTD YTD 2018 Adjustment (1) YTD 2017 Adjustment (1) average shares and EPS) YTD 2018 YTD 2017 Variance Regulated – Independent Electric Tr
Slide 21: 2019-2023 Capital Forecast by Segment
2019-2023 Capital Forecast by Segment APPENDIX Capital Forecast(1) 2019-2023 ($millions) 2019 2020 2021 2022 2023 Total Regulated - Independent Electric Transmission ITC 865 878 951 943 861 4,498 Regulated - US Electric & Gas UNS Energy 1,076 875 624 476 476 3,527 Central Hudson 280 268 276 291 274
Slide 22: Major Capital Projects
Major Capital Projects AAPPPPEENNDDIIXX Total Expected Year 2018 Significant Capital Projects ($millions) 2019-2023 of Forecast Capital Plan Plan Completion By Project Type ITC Multi-Value Regional Transmission Projects 140 332 Post-2023 ITC 34.5 kV to 69 kV Transmission Conversion Project 118 369 P
Slide 23: Capital Plan Grows Rate Base to $35 Billion in 2023
Capital Plan Grows Rate Base to $35 Billion in 2023 APPENDIX Rate Base(1) $35.5 $32.0 $33.4 $30.1 $27.9 $26.1 Canadian & Caribbean U.S. Billions 2018F 2019F 2020F 2021F 2022F 2023F (1) Rate base converted at a projected USD/CAD foreign exchange rate of $1.28 for 2018 through 2023. 23
Slide 24: 2018-2023 Rate Base Forecast by Segment
2018-2023 Rate Base Forecast by Segment APPENDIX (1) Rate Base Forecast 3-Year CAGR 5-Year CAGR ($millions) 2018 2019 2020 2021 2022 2023 to 2021 to 2023 Regulated - Independent Electric Transmission ITC 7,706 8,463 9,148 9,745 10,305 10,824 8.1% 7.0% Regulated - US Electric & Gas UNS Energy 4,850 5