Unitil Corporation · NYSE:UTL
Unitil — Shareholder Meeting (April 2021)
23 slides from Unitil's shareholder meeting presentation, Apr 28, 2021
Slide 1: Annual Meeting of Shareholders: Achieving Our Energy Vision
Annual Meeting of Shareholders April 28, 2021 Achieving Our Energy Vision Exhibit 99.1
Slide 2: Safe Harbor Provision
Safe Harbor Provision This presentation contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding Unitil Corporation’s (“Unitil”) financial condition, result
Slide 3: About Unitil
About Unitil Pure-play New England utility creating long-term sustainable value Attractive Service Territory with Growing Customer Base New customer additions in electric and natural gas operations Ongoing conversions from competing fuels Robust Investment Opportunities in Electric and Natural Gas D
Slide 4: 2020 Highlights
2020 Highlights Unitil continued to deliver strong results despite a challenging year Financial Results 2020 Earnings Per Share of $2.15 despite significant headwinds of historically unfavorable weather and the COVID-19 Pandemic Provided shareholders with an uninterrupted annualized common dividend
Slide 5: 2020 Financial Results
2020 Financial Results Net Income and Earnings Per Share Negatively Affected by Historically Warm Weather and COVID-19 Fiscal Year Ended December 31 2020 2019 (Excluding Usource Sale) Variance Net Income (millions) $32.2 $34.4 ($2.2) Earnings Per Share $2.15 $2.31 ($0.16) Excluding the 2019 Usource
Slide 6: Putting Customers First
Putting Customers First Through a difficult year, delivering exceptional customer service remained a top priority Customer Satisfaction Exceeding regional and national benchmarks 93% Top-Ranked in the Northeast Ranked out of eight utilities 1st National customer satisfaction ranking Ranked 10th out
Slide 7: Operational Excellence Amid COVID-19
Operational Excellence Amid COVID-19 Continued improvement in safety and reliability, despite the challenges of the pandemic Awarded the Edison Electric Institute’s Emergency Response Award for the third time in four years Selected as a Leading Practice Company by the American Gas Association, recog
Slide 8: Outlook for Economic Growth
Outlook for Economic Growth The ingredients are in place for a robust economic recovery Employment has almost fully recovered to pre-pandemic levels, even as many small businesses (e.g., restaurants) are only now reopening Labor shortages already being reported Vaccination is proceeding quickly and
Slide 9: Historic Housing Market
v Historic Housing Market The COVID-19 pandemic has accelerated demand for increasingly scarce housing Source: New Hampshire Housing Finance Authority (NHHFA.org), Housing and Demographic Data, MLS Data (https://www.nhhfa.org/publications-data/housing-and-demographic-data/) Listing Inventory Median
Slide 10: Significant Investment Opportunities
Significant Investment Opportunities Increasing capital investment to support, expand, and modernize the utility system Diversified Five-Year Capital Investment Plan of Approximately $725 Million Disciplined investment plan supporting continued rate base growth in line with historical growth of 6.5%
Slide 11: Investing in Electric and Natural Gas Distribution
Investing in Electric and Natural Gas Distribution Investing in the Clean Energy Transition Achieving Stable Margins and Earnings Growth Long-Term Sustainable Shareholder Value Steady and predictable cash flows coupled with robust investment opportunities 5% - 7% Expected Long-Term EPS Growth 55% -
Slide 12: The Clean Energy Transition
The Clean Energy Transition New England’s transition to a low-carbon future
Slide 13: National Context – Carbon Intensity vs Affordability
National Context – Carbon Intensity vs Affordability State energy-related carbon dioxide emissions and average electricity costs Sources: U.S. Energy Information Administration (EIA), Table 2. State energy-related carbon dioxide emissions by year, adjusted (2018) https://www.eia.gov/environment/emis
Slide 14: Building a Sustainable Future: State Policies and Climate Goals
American Jobs Plan: $2.25 trillion infrastructure plan (proposed) Proposals include investments in clean energy, electric vehicles, improved resiliency of electric grid Building a Sustainable Future State Policies and Climate Goals Massachusetts Maine New Hampshire 2050 Decarbonization Roadmap Net-z
Slide 15: Policy Driven Electrification
Policy Driven Electrification Converting vehicles and buildings to electricity is a key policy focus Electric Vehicles Unitil Customer Mix Electric Heat Pumps 63% Percentage of Unitil customers that have Unitil for their electric service Maine 0% New Hampshire 75% Massachusetts 93% PAGE
Slide 16: Transportation is the Biggest Opportunity
v Transportation is the Biggest Opportunity As other sectors become “cleaner” a growing proportion of carbon emissions are in transportation Carbon Emissions by Sector Source: U.S. Energy Information Administration (EIA), Table 4. 2018 State energy-related carbon dioxide emissions by sector https://
Slide 17: Clean Transportation Alternatives
Clean Transportation Alternatives Unitil is focused on vehicle conversions from petroleum to electricity and natural gas As New England continues to make progress on its emission reduction goals, the transportation sector offers the greatest potential opportunity to make significant gains in the yea
Slide 18: Cold Climate Heat Pumps
Cold Climate Heat Pumps (air source) operate efficiently and deliver reliable heat most days of the year Performance declines with ambient temperature Supplemental heat required during extreme cold when heating capacity may be insufficient Most attractive in new construction with tighter building en
Slide 19: Opportunities for Fuel Switching
v Every 100 homes converted from oil to natural gas is equivalent to removing 55 cars from the road, permanently Opportunities for Fuel Switching High penetration of fuel oil and propane presents opportunities to switch to a fuel that is both cleaner and more affordable Fuels Used for Home Heating S
Slide 20: Renewable Natural Gas and Hydrogen
Renewable Natural Gas (RNG), also known as biomethane or biogas, is a pipeline-quality gas made from organic waste (the gaseous product of the decomposition of organic matter) Hydrogen produced from renewable electricity used to split water into hydrogen and oxygen, also known as “power-to-gas” and
Slide 21: Advancing the Grid: Foundational Objectives
Foundational Objectives Deliver safe and reliable service meeting the expectations of today’s customers, and the needs of a 21st Century economy Engage customers and encourage their active participation in energy markets by enabling the easy adoption of new technologies and services so they can bett
Slide 22: Opportunities – Both Gas and Electric
Opportunities – Both Gas and Electric Unitil is well positioned to benefit from climate policies on both sides of our business Source: Unitil customer data as of 12/31/2020 Source: U.S. Census Bureau, American Community Survey, Selected Housing Characteristics, 2019: ACS 5-Year Estimates Data Profil
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