Fortis Inc. · TSX:FTS
Fortis — Shareholder Meeting (May 2017)
32 slides from Fortis's shareholder meeting presentation, May 4, 2017
Slide 1: Welcome to Fortis
Welcome to Fortis Annual and Special Meeting May 4, 2017
Slide 2: Wired for Growth
Wired for Growth
Slide 3: Douglas Haughey, Chair of the Board
Douglas Haughey Chair of the Board
Slide 4: Dr. Angus A. Bruneau
Dr. Angus A. Bruneau 4
Slide 5: Barry Perry, President and CEO
Barry Perry President and CEO
Slide 6: Leadership Team
Leadership Team Phonse Delaney* Earl Ludlow* EVP, Chief Information Officer EVP, Operational Advisor Gary Smith* Karl Smith EVP, Eastern Canadian & Caribbean Operations EVP, Chief Financial Officer Nora Duke Jim Laurito EVP, Corporate Services & Chief HR Officer EVP, Business Development David Benne
Slide 7: Karl Smith, Chief Financial Officer
Karl Smith Executive Vice President Chief Financial Officer
Slide 8: Forward-Looking Statement
Forward-Looking Statement Fortis Inc. (“Fortis” or, the “Corporation”) includes forward-looking information in this presentation within the meaning of applicable securities laws including the Private Securities Litigation Reform Act of 1995. Forward-looking information included in this presentation
Slide 9: Fortis Delivers Strong Results in 2016
Fortis Delivers Strong Results in 2016 $ 721M Adjusted Earnings 22% $2.33 Adjusted EPS 10% $1.9B CFFO 13% 18B $ Market Cap 71% (as of April 30, 2017) 9
Slide 10: 43 Years of Consecutive Annual Dividend Growth
43 Years of Consecutive Annual Dividend Growth $ 1.60 1.20 0.80 0.40 0.00 72 75 78 81 84 87 90 93 96 99 02 05 08 11 14 17F 10
Slide 11: Dividend Guidance Supported by Confidence in Business
Dividend Guidance Supported by Confidence in Business $1.53 $1.40 $1.28 $1.24 $1.20 $1.16 $1.12 $1.04 $1.00 $0.82 Average annual dividend growth $0.67 through 2021 targeted at 6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F Dividend paid per common share 11
Slide 12: Ample Liquidity and Investment-Grade Credit Ratings
Ample Liquidity and Investment-Grade Credit Ratings Credit Ratings Credit Facilities 7.0 6.0 Fortis Inc. 5.0 2.2 3.7 S&P A- / BBB+ ($ billions) 4.0 DBRS BBB (high) 3.0 Moody’s Baa3 2.4 2.0 2.2 1.0 1.2 0.0 Dec 31/15 Dec 31/16 Utilized Remaining Capacity 12
Slide 13: Q1 2017 – Strong Start to the Year
Q1 2017 – Strong Start to the Year $ 281M Adjusted Earnings 48% 0.69 $ Adjusted EPS 3% $541M CFFO 12% 500M $ Common Equity Private Placement 13
Slide 14: Capital Program Supports Safe, Reliable Service for Customers
Capital Program Supports Safe, Reliable Service for Customers $2.1B in 2016
Slide 15: Looking ahead
Looking ahead FORTIS..
Slide 16: Barry Perry, President and CEO
Barry Perry President and CEO
Slide 17: Acquisition of ITC Holdings Corp.
The acquisition of ITC Holdings Corp. was the largest transaction in the history of Fortis at US$11.8 billion.
Slide 18: ITC: Transformational Growth for Fortis
ITC: Transformational Growth for Fortis Accretive to EPS Financing complete Integration on track 18
Slide 19: 60% of assets in the United States
With 60% of our assets in the United States, Fortis, for the first time, has more assets in America than Canada.
Slide 20: Proven Acquisition Track Record
Proven Acquisition Track Record Networks Canada Fortis $/share 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 21: Leader in North American regulated electric and gas utilities
Fortis is a leader in the North American regulated electric and gas utility industry.
Slide 22: 43 years of consecutive dividend increases
We have 43 years of consecutive dividend increases – the longest record of any public corporation in Canada.
Slide 23: Our performance is strong
Our performance is strong
Slide 24: 10-year Track Record of Superior Shareholder Returns
10-year Track Record of Superior Shareholder Returns 100% 80% 60% 40% 20% 0% -20% -40% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fortis S&P/TSX Capped Utilities Index S&P/TSX Composite Index 27
Slide 25: Capital Plan Grows Rate Base to $30 Billion in 2021
Capital Plan Grows Rate Base to $30 Billion in 2021 3.0 2.9 2.4 2.4 2.3 2.1 29.6 ($ billions) 28.9 28.3 27.1 25.7 24.3 0.00 2016A 2017F 2018F 2019F 2020F 2021F Capital spend by year Midyear rate base 28
Slide 26: Major Capital Projects: On the Horizon
Major Capital Projects : On the Horizon Woodfibre LNG Lake Erie Connector Wataynikaneyap Power Project
Slide 27: Listing on the New York Stock Exchange
On October 14, 2016, we celebrated a milestone event – our company’s listing on the New York Stock Exchange 27
Slide 28: 8,000+ employees serving 3.2 million customers
Our 8,000+ talented and committed employees provide safe, reliable and affordable energy to 3.2 million customers.
Slide 29: Diverse energy mix delivering cleaner energy
Our mix of wind, natural gas, solar and hydro helps ensure we are delivering cleaner energy.
Slide 30: Investing in local communities
Fortis continues to play a large role in investing in our local communities.
Slide 31: Wired for Growth
Wired for Growth
Slide 32: Slide 32