Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — CIBC Banff Institutional Investor Conference January 2020
13 slides from Canadian Utilities Limited Class A's conference presentation, January 2020
Slide 1: CIBC Banff Institutional Investor Conference
CIBC BANFF INSITUTIONAL INVESTOR CONFERENCE DENNIS DECHAMPLAIN, EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER JANUARY 2020
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Statements made by representatives for ATCO Ltd. and Canadian Utilities Limited and information provided in this presentation may be considered forward-looking statements. By their nature, such statements are subject to numerous known and unknown risks and uncertainties and therefor
Slide 3: Organizational Structure
ORGANIZATIONAL STRUCTURE (TSX: ACO.X / ACO.Y) ~$6 billion common equity capitalization (TSX: CU / CU.X) ~$11 billion common equity capitalization CIBC BANFF INSTITUTIONAL INVESTOR CONFERENCE – JANUARY 2020 3
Slide 4: Canadian Utilities Energy Infrastructure
CANADIAN UTILITIES ENERGY INFRASTRUCTURE
Slide 5: Regulated Utilities
REGULATED UTILITIES ELECTRIC TRANSMISSION ELECTRIC DISTRIBUTION $5.3B Rate Base $2.7B Rate Base NATURAL GAS DISTRIBUTION NATURAL GAS TRANSMISSION INTERNATIONAL NATURAL GAS $2.8B Rate Base $1.8B Rate Base DISTRIBUTION $1.2B Rate Base CIBC BANFF INSTITUTIONAL INVESTOR CONFERENCE – JANUARY 2020 5
Slide 6: Rate Base Growth
RATE BASE GROWTH Regulated Capital Investment Mid-Year Rate Base Expected to Grow 3%- 4% per year $1.2B $1.2B $1.1B $13.4B $12.9B $1.1B $12.5B $11.9B $1.2B $10.3B $1.1B $8.9B $1.5B $2.2B $2.3B 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 2014 2015 2016 2017 2018 2019 2020 2021 CIBC BANFF INSTIT
Slide 7: Utilities Achieve Top Tier Returns on Equity
UTILITIES ACHIEVE TOP TIER RETURNS ON EQUITY 11.2% 10.9% CU Inc.’s average ROE +2.3% above average AUC approved over last 10 years 8.7% 8.7% (+2.8% over last 3 years) 8.6% 8.4% 10-Year Average 3-Year Average (2009 - 2018) (2016 - 2018) CU Inc. Average Alberta Utility Average (excluding CU) AUC Appro
Slide 8: Energy Infrastructure Businesses
ENERGY INFRASTRUCTURE BUSINESSES ELECTRICITY GENERATION ELECTRICITY GENERATION ELECTRICITY GENERATION CANADA AUSTRALIA MEXICO 24 MW 176 MW 44 MW INDUSTRIAL WATER SERVICES HYDROCARBON STORAGE NATURAL GAS STORAGE CANADA CANADA CANADA 85,200 m3/day 400,000 m3 52 PJ CIBC BANFF INSTITUTIONAL INVESTOR CON
Slide 9: Capital Recycling: Canadian Electricity Generation Sale
CAPITAL RECYCLING: CANADIAN ELECTRICITY GENERATION SALE • Sold our entire Canadian fossil fuel- based power generation portfolio for aggregate proceeds of $821 million in September 2019 • 12 coal-fired and natural gas-fired electricity generation assets located in Alberta, British Columbia, Saskatch
Slide 10: Capital Recycling: Alberta PowerLine Sale
CAPITAL RECYCLING: ALBERTA POWERLINE SALE • Sold Alberta PowerLine Limited Partnership (APL) in December 2019 for total proceeds to CU of approximately $220 million (plus assumption of $1.4 billion of APL debt) • Seven Indigenous communities acquired 40 per cent equity interest in APL • Canadian Uti
Slide 11: Capital Investment Approach
CAPITAL INVESTMENT APPROACH • Disciplined and prudent approach • Utility and utility-like assets: regulated or long-term contracted • “A” range credit rating focus • The ability to leverage our operating model • Geographic diversification: Outside Alberta, North America, Latin America, & Australia C
Slide 12: Continued Dividend Growth
CONTINUED DIVIDEND GROWTH ATCO $1.74 Canadian Utilities $1.74 27 years of annual dividend increases* per share 48 years of annual dividend increases* per share Longest track record of annual dividend increases of any Canadian publicly traded company 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
Slide 13: Investor Relations contact
www.ATCO.com www.canadianutilities.com Tel: 403.292.7500 Investor Relations 5302 Forand Street SW Calgary, Alberta T3E 8B4 Canada investorrelations@atco.com
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