Fortis Inc. · TSX:FTS
Fortis — Shareholder Meeting (May 2024)
47 slides from Fortis's shareholder meeting presentation, May 2, 2024
Slide 1: Annual and Special Meeting of Shareholders
2024 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS MAY 2, 2024
Slide 2: Voting Instructions
VOTING INSTRUCTIONS F@RTIS.. 2
Slide 3: Question Instructions
QUESTION INSTRUCTIONS FORTIS...
Slide 4: Jo Mark Zurel, Chair of the Board
JO MARK ZUREL CHAIR OF THE BOARD 4
Slide 5: Annual and Special Meeting of Shareholders
2024 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS 5
Slide 6: Meeting Participants
MEETING PARTICIPANTS DAVID HUTCHENS JOCELYN PERRY JIM REID President and Executive Vice President, Executive Vice President, Chief Executive Officer Chief Financial Officer Sustainability and Chief Legal Officer 6
Slide 7: Meeting Agenda
Appointment of Scrutineers and Secretary Financial Statements Election of Directors MAY 2, 2024 Appointment of Auditors MEETING AGENDA Approach to Executive Compensation Adoption of Omnibus Equity Plan Voting Results Management Presentation Question Period 7
Slide 8: Appointment of Scrutineers and Secretary
AGENDA Appointment of Scrutineers and Secretary Financial Statements APPOINTMENT OF SCRUTINEERS AND SECRETARY Election of Directors Appointment of Auditors Approach to Executive Compensation Omnibus Equity Plan Voting Results Management Presentation Question Period 8
Slide 9: Presentation of the Financial Statements for the Year Ended December 31, 2023
AGENDA Appointment of Scrutineers and Secretary PRESENTATION OF THE FINANCIAL Financial Statements STATEMENTS FOR THE YEAR Election of Directors ENDED DECEMBER 31, 2023 Appointment of Auditors Approach to Executive Compensation Omnibus Equity Plan Voting Results Management Presentation Question Peri
Slide 10: Voting Procedure
VOTING PROCEDURE F@RTIS..
Slide 11: Election of Directors
AGENDA ELECTION OF DIRECTORS Appointment of Scrutineers and Secretary Financial Statements Election of Directors Appointment of Auditors Jo Mark Zurel David G. Hutchens Tracey C. Ball Pierre J. Blouin Lawrence T. Borgard Maura J. Clark (Chair of the Board) Approach to Executive Compensation Omnibus
Slide 12: Appointment of Auditors
AGENDA Appointment of Scrutineers and Secretary APPOINTMENT OF AUDITORS Financial Statements Election of Directors Appointment of Auditors Approach to Executive Compensation Omnibus Equity Plan Voting Results Management Presentation Question Period 12
Slide 13: Advisory Vote on Approach to Executive Compensation
AGENDA Appointment of Scrutineers and Secretary ADVISORY VOTE ON APPROACH Financial Statements TO EXECUTIVE COMPENSATION Election of Directors Appointment of Auditors Approach to Executive Compensation Omnibus Equity Plan Voting Results Management Presentation Question Period 13
Slide 14: Approval of the Omnibus Equity Plan and Related Matters
AGENDA Appointment of Scrutineers and Secretary APPROVAL OF THE OMNIBUS EQUITY Financial Statements PLAN AND RELATED MATTERS Election of Directors Appointment of Auditors Approach to Executive Compensation Omnibus Equity Plan Voting Results Management Presentation Question Period 14
Slide 15: Voting Results
AGENDA Appointment of Scrutineers and Secretary VOTING RESULTS Financial Statements Election of Directors Appointment of Auditors Approach to Executive Compensation Omnibus Equity Plan Voting Results Management Presentation Question Period 15
Slide 16: Management Presentation
2024 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS MANAGEMENT PRESENTATION 16
Slide 17: Asking Questions
ASKING QUESTIONS FORTIS... 7
Slide 18: Forward Looking Information
FORWARD LOOKING INFORMATION Fortis Inc. ("Fortis" or the "Corporation") 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 (coll
Slide 19: David Hutchens, President and CEO
DAVID HUTCHENS PRESIDENT AND CEO 19
Slide 20: Fortis Executive Team
FORTIS EXECUTIVE TEAM JOCELYN PERRY JIM REID GARY SMITH STUART LOCHRAY Executive Vice President, Executive Vice President, Executive Vice President, Senior Vice President, Chief Financial Officer Sustainability and Operations and Innovation Capital Markets and Chief Legal Officer Business Developmen
Slide 21: Fortis Utility Leadership
FORTIS UTILITY LEADERSHIP Linda Apsey Christopher Capone Roger Dall’Antonia Ruth Forbes Susan Gray Glen King ITC Holdings Corp. Central Hudson FortisBC FortisTCI UNS Energy FortisOntario Richard Hew Kay Menzies Gary Murray Jason Roberts Janine Sullivan Caribbean Utilities Fortis Belize Newfoundland
Slide 22: Unified Energy
UNIFIED ENERGY 22
Slide 23: 50 Years of Consecutive Dividend Increases
50 YEARS OF CONSECUTIVE DIVIDEND INCREASES 23
Slide 24: Outperforming Industry Averages for Safety and Reliability
OUTPERFORMING INDUSTRY AVERAGES FOR SAFETY AND RELIABILITY 24
Slide 25: $4.3 Billion in Capital Investments
$4.3 BILLION IN CAPITAL INVESTMENTS 25
Slide 26: Customer-Focused
\ CUSTOMER- FOCUSED F@RTIS..
Slide 27: Strengthening the Grid
STRENGTHENING THE GRID 27
Slide 28: Reducing Carbon Emissions
REDUCING CARBON EMISSIONS 28
Slide 29: Climate Adaptation and Resiliency
CLIMATE ADAPTATION AND RESILIENCY CLIMATE ADAPTATION AND RESILIENCY 29
Slide 30: Advancing the Clean Energy Transition
ADVANCING THE CLEAN ENERGY TRANSITION 30
Slide 31: Fostering Strong Indigenous Partnerships
FOSTERING STRONG INDIGENOUS PARTNERSHIPS 31
Slide 32: Jocelyn Perry, Executive Vice President, CFO
JOCELYN PERRY EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER 32 Fortis Inc.
Slide 33: Executing Our Regulated Growth Strategy
EXECUTING OUR REGULATED GROWTH STRATEGY 33
Slide 34: 2023 Reported and Adjusted EPS
2023 REPORTED AND ADJUSTED EPS REPORTED EPS ADJUSTED EPS REPORTED EPS GREW $3.10 $3.09 BY $0.32 OVER 2022 $2.78 $2.78 ADJUSTED EPS GREW BY ~9% IN 2023 (1) 2022 2023 2022 2023 (1) Excluding impact of foreign exchange. Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to appendix for the
Slide 35: Sale of Aitken Creek for ~$470 Million
SALE OF AITKEN CREEK FOR ~$470 MILLION 35
Slide 36: Q1 2024 Net Earnings of $459 Million or $0.93 per Common Share
Q1 2024 NET EARNINGS OF $459 MILLION OR $0.93 PER COMMON SHARE 36
Slide 37: Five-Year $25 Billion Capital Plan
FIVE-YEAR $25 BILLION CAPITAL PLAN SUPPORTING LOW-RISK GROWTH 37
Slide 38: Balanced Approach to Funding Growth
BALANCED APPROACH TO FUNDING GROWTH 38
Slide 39: Annual Dividend Growth Guidance of 4-6% Through 2028
ANNUAL DIVIDEND GROWTH GUIDANCE OF 4-6% THROUGH 2028 39
Slide 40: Superior 20-Year Total Shareholder Returns
SUPERIOR 20-YEAR TOTAL SHAREHOLDER RETURNS Average Annual 665% Total Shareholder Returns 1-Year 4.8% 352% 349% 5-Year 7.6% 10-Year 10.1% 20-Year 10.7% 2003 2008 2013 2018 2023 Fortis S&P/TSX Composite Index S&P/TSX Capped Utilities Index Note: Cumulative 20-year total shareholder return as at
Slide 41: People First
PEOPLE FIRST 41
Slide 42: Thank You for Being Part of Our Team
THANK YOU FOR BEING PART OF OUR TEAM 42
Slide 43: Question Period
QUESTION PERIOD 43
Slide 44: Fortis
FORTIS...
Slide 45: Appendix
APPENDIX F@RTIS..
Slide 46: Annual Non-U.S. GAAP Reconciliation
ANNUAL NON-U.S. GAAP RECONCILIATION ($ millions, except as shown) 2023 2022 Net Earnings (1) 1,506 1,330 Adjusting Items: Disposition of Aitken Creek (2) (15) - Unrealized loss (gain) on mark-to-market of derivatives (3) 2 (20) Revaluation of deferred income tax assets (4) 9 9 Lake Erie Connector pr
Slide 47: Quarterly Non-U.S. GAAP Reconciliation
QUARTERLY NON-U.S. GAAP RECONCILIATION ($ millions, except as shown) Q1 2024 Q1 2023 Net Earnings (1) 459 437 Adjusting Item: Unrealized loss on mark-to-market of derivatives (2) - 2 Adjusted Net Earnings 459 439 Adjusted Earnings per Share ($) 0.93 0.91 Capital Expenditures Additions to property, p