Fortis Inc. · TSX:FTS
Fortis — Q2 2024 Earnings Presentation
14 slides from Fortis's earnings presentation, 2024
Slide 1: Retail Presentation Q2 2024
RETAIL PRESENTATION Q2 2024 FORTIS...
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: Fortis at a Glance
FORTIS AT A GLANCE 93% 10 regulated utilities 3.5 million 9,600 transmission & in Canada, the U.S. & electric and gas customers dedicated employees distribution assets Caribbean 99% $38.4 billion ~10% average annual(1) 82% of Fortis utilities regulated utility assets 2024F rate base 10-year total sh
Slide 4: Our Vision & Strategy
OUR VISION & STRATEGY A Premium North American Utility Delivering a Cleaner Energy Future SUSTAINABLE GROWTH • Operational Excellence • Financial Strength • Diversified Regulated Portfolio • Local Business Model • Strong Governance 4
Slide 5: Our Common Ground
OUR COMMON GROUND PROVISION OF SAFE & RELIABLE SERVICE GOOD GOVERNANCE Priority #1 Fortis Ranked #2 out of 219 S&P/TSX companies in The Globe & Mail 2023 Board Games • Health and safety of our employees, customers and contractors • Utilities operate within the parameters of common policies and best
Slide 6: Reducing Carbon Emissions
REDUCING CARBON EMISSIONS Our planned trajectory to net-zero 2019 neti amor kK" Achieved ED —_——__ Actual GHG Emissions Reduction GHG Emissions Reduction Since 2019 — Forecast GHG Emissions Reduction 50% GHG Emissions Reduction Target 2028 eee eee Illustrative Emissions Reduction Coal-Free Generatio
Slide 7: Highly Executable Capital Plan Supports Low-Risk Rate Base Growth of ~6%
HIGHLY EXECUTABLE CAPITAL PLAN SUPPORTS LOW-RISK RATE BASE GROWTH OF ~6% $25B 2024-2028 Capital Plan ~20% major capital projects; ~$7B in cleaner energy capital $4.8B Capital Expenditures 2024 annual capital plan on track with major projects progressing $49B 6.3% $37B 5-Year Rate Base CAGR(1) ‘23A ‘
Slide 8: Key Developments on Opportunities Beyond the Plan
KEY DEVELOPMENTS ON OPPORTUNITIES BEYOND THE PLAN MISO Long-Range Environmental IRPs at TEP and Approval of Transmission Plan Assessment for UNS Electric RNG Application Tranche 2 Tilbury Marine Jetty • In March 2024, MISO released a • In November 2023, TEP and • In March 2024, the BCUC approved • E
Slide 9: Long Capex Runway
LONG CAPEX RUNWAY Responding to stakeholder expectations and capitalizing on opportunities to expand & extend growth Connect more renewable Replace aging assets to generation to the grid maintain reliability Build more renewable Invest in technology to generation ensure security and improve service
Slide 10: Balanced Approach to Funding Growth
BALANCED APPROACH TO FUNDING GROWTH Equity from DRIP Supplemented 4-6% Annual Dividend Growth by ATM Program Guidance Range Cash From Operations(1) • Annual proceeds from DRIP of ~$400M • Flexibility to fund more capital with internally $25B 55% Net Debt(2) 34% generated funds • $500M ATM program to
Slide 11: Recent Regulatory Activity
RECENT REGULATORY ACTIVITY Iowa Transmission General Rate Right of First Refusal Application • In December 2023, the Iowa District Court ruled that the Iowa ROFR • In July 2023, application filed with PSC legislation is unconstitutional, based on seeking new rates effective July 1, 2024 procedural g
Slide 12: Three-Year Look Back
THREE -YEAR LOOK BACK Adjusted EPS & Adjusted Dividend Payout Ratio 3.3 $3.09 115% 3.1 2.9 $2.78 105% Strong Rate Base Growth 2.7 $2.57 $2.59 95% 2.5 2.3 85% 6.3% 2023 Rate Base Growth(1) 2.1 75% 79% 78% 75% 6.5% 3-Year Rate Base CAGR(1) 74% 1.9 65% 1.7 1.5 55% 2020 2021 2022 2023 Adjusted EPS Adjus
Slide 13: Dividend Guidance Supported by Long-Term Growth Strategy
DIVIDEND GUIDANCE SUPPORTED BY LONG-TERM GROWTH STRATEGY 4-6% Annual Dividend Growth Guidance through 2028 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 13
Slide 14: Why Invest in Fortis?
SUSTAINABLE GROWTH Focused on Executing Strong Robust Transmission Transparent Rate Base Growth Investment Pipeline Funding Plan Cleaner 4-6% Annual Investment-Grade Energy Transition Dividend Growth Credit Ratings WHY INVEST IN FORTIS? LOW-RISK Safe, Well-Run Utilities Strong Regulatory & Construct