Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Investor Presentation (March 2024)
42 slides from Canadian Utilities Limited Class A's investor presentation, March 2024
Slide 1: Disclaimer
DISCLAIMER Due to uncertainty surrounding the application of recent amendments to the Competition Act (Canada), the documents incorporated by reference herein are referenced for historical information purposes only and do not constitute active or current representations of Canadian Utilities Limited
Slide 2: Investor Presentation March 2024
CLI CANADIAN UTILITIES LIMITED ME 4) ATCO company Investor | Presentation Canadian Utilities Limited March 2024
Slide 3: Agenda
Investor Presentation Agenda Executive Committee 3 Financial Overview 4 Canadian Utilities Overview 9 Environment, Sustainability and Governance 13 ATCO Energy Systems 15 ATCO EnPower 23 Appendix 35 Legal Notice 39 Canadian Utilities Investor Presentation
Slide 4: Executive Committee
Executive Committee 0068 Q Nancy C. Southern Melanie Bayley M. George Constantinescu John Ivulich Chair & Chief Executive Officer, President, ATCO Electric Executive Vice President Chief Executive Officer & Country Chair, Canadian Utilities Limited & Chief Transformation Officer ATCO Australia Bob J
Slide 5: Financial Overview: Operational Stability
Financial Overview 2015 ecoc? Operational Stability wae, commodity price declines LONG-TERM TRACK RECORD OF STABILITY AND RECURRING EARNINGS THROUGH VARIOUS GLOBAL MACRO-ECONOMIC CYCLES 2008- $596 MILLION OF ADJUSTED EARNINGS IN 2023! ie LL 2023 Rebasing at Alberta Distribution Utilities 2020 COVvID
Slide 6: Financial Overview: Continued Growth
Financial Overview Continued Growth LONGEST TRACK RECORD OF ANNUAL DIVIDEND INCREASES OF ANY CANADIAN PUBLICLY TRADED COMPANY 52 YEARS OF ANNUAL DIVIDEND INCREASES" DIVIDENDS DECLARED OF $1.79 PER SHARE IN 2023 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01
Slide 7: Earnings Profile
Earnings Profile Total 2023 Adjusted Earnings’ ATCO Energy Systems $50M ATCO Enpover’ Electricity (Distribution & Transmission)* $312 Natural Gas (Distribution & Transmission) 4 $2 ATCO Gas Australia (International Gas Distribution) + $73 LUMA Energy (International Electricity Operations) 4 $48 ATCO
Slide 8: Debt Profile
Debt Profile Debt Maturity Profile: 20-Year Outlook WELL-DISTRIBUTED AND EASILY MANAGEABLE DEBT MATURITY PROFILES 2024 oo 2028 oo 2034 2035 2036 2037 2038 2039 oo 2041 2042 2043 mCU Inc. 1, As at December 31, 2023. Canadian Utilities Investor Presentation
Slide 9: Credit Ratings
Credit Ratings Strong Credit Ratings and Access to Capital cu An ATCO Company C CANADIAN UTILITIES Gees LIMITED An ATCO Company 1, As at December 31, 2023. $207M Cash on Balance Sheet! $2.1B Available Credit Capacity! HIGH Investor Demand for Recent Debenture Offerings Canadian Utilities Investor Pr
Slide 10: Canadian Utilities Limited Overview
Canadian Utilities Limited Overview For recent filings and further details please visit: canadianutilities.com
Slide 11: Canadian Utilities Overview
Canadian Utilities Overview Current Operations and Investments! ATCO EnPower International Electricity Operations $23B $3.8B in Assets in Revenues $596M $1.48 Adjusted Capital Earnings? Expenditures 1. For the year ended December 31, 2023. 2. Adjusted earnings is a total of segments measure (as defi
Slide 12: Organizational Structure
Canadian Utilities Overview Organizational Structure COU ores C—__ LIMITED n ATCO Compal | | | 100% 100% 100% ATCO Energy Systems ATCO EnPower CLI Ae aren ME ATCO corny Corporate Canadian Utilities Investor Presentation
Slide 13: Strategy
Canadian Utilities Overview Strategy Build on our core utility businesses and invest in activities aimed at advancing the energy transition and ensuring long-term resiliency. Optimize our energy infrastructure assets and add new growth platforms. Leverage our expertise in key markets, including Nort
Slide 14: Our Commitment to ESG
Our C ment to ESG Canadian Utilities Commitment to Sustainability For Canadian Utilities, sustainability is more than an aspiration; it is interwoven into our strategy, our day-to-day operations, the products and services we provide, and the fabric of our people. Our enduring and holistic commitment
Slide 15: Strategic 2030 ESG Targets
Our Commitment to ESG Strategic 2030 ESG Targets Supporting the energy transition and reducing GHG emissions - @. aR : Reduce GHG emissions to Reduce our customers’ GHG emissions ‘Own, develop or manage over Derive 20 per cent of revenues from ‘earnings intensity by 30 per cent by 2 million tonnes t
Slide 16: ATCO Energy Systems Business Overview
ATCO Energy Systems Business Overview TW in ib THT *2023 Mid-Year Rate Base is described in Canadian Utilities Limited's Management's Discussion and Analysis for ‘the year-ended December 31, 2023. Canadian Utilities Investor Presentation 15
Slide 17: Operational Excellence
ATCO Energy Systems Operational Excellence SINCE 2013, WE HAVE REDUCED OUR OPERATIONS AND MAINTENANCE COSTS: $29 pet inn $39 Pustomer! ELECTRICITY DISTRIBUTION NATURAL GAS DISTRIBUTION OPERATIONAL EXCELLENCE AND LOWER COSTS BENEFIT OUR CUSTOMERS AND SHARE OWNERS 1. Adjusted for inflation and as of D
Slide 18: Average ROE versus peers
CLI LINC An ATCO Company 10 YEAR AVERAGE (2013-2022) 10.6% AUC Approved Alberta Utility Peer CU Inc. Average? Average’ Canadian Utilities Investor Presentation 7
Slide 19: • • • • • 𝑅𝑂𝐸𝑡 𝑡 𝑡 𝑏𝑎𝑠𝑒 • o • • •
• • • • • 𝑅𝑂𝐸𝑡 𝑡 𝑡 𝑏𝑎𝑠𝑒 • o • • • •
Slide 20: Mid-Year Rate Base Growth (3-year Plan)
ATCO Energy Systems Mid-Year Rate Base Growth (3-year Plan) 3.0% to 4.4% $16.7B to $17.4B Growth $1.7B per year $15.4B $2.9B to $3.2B $3.3B to $3.4B $5.3B $3.5B to $3.8B 2023 2026E mElectricity Distribution Electricity Transmission Natural Gas Distribution Natural Gas Transmission int'l Natural Gas
Slide 21: Alberta Advantage
ATCO Energy Systems Alberta Advantage iy ALBERTA HIGHLIGHTS #1 province with 4.0% population growth from July 1, 2022 to June 30, 2023 Highest provincial GDP growth in 2023 and highest for GDP per Capita Highest Median After-Tax Income in Canada #3 province in year-over-year housing starts for Novem
Slide 22: JUNE 22, 2020 JUNE 1, 2021 NOVEMBER 30, 2022
JUNE 22, 2020 JUNE 1, 2021 NOVEMBER 30, 2022
Slide 23: LUMA Energy Key Contract Terms & Objectives
ATCO Energy Systems LUMA Energy Key Contract Terms & Objectives 2020 2021 NOVEMBER 30, 2022 | | | FRONT END TRANSITION PERIOD SUPPLEMENTAL AGREMENT (18-MONTHS) SUPPLEMENTAL AGREMENT EXTENSION O&M SERVICES AGREEMENT PERIOD* + LUMA assumes + LUMA continues to >) Preparatory work to enable Fixed fee fo
Slide 24: ATCO EnPower Business Overview
ATCO EnPower Business Overview *Operating assets based on total capacity as of December 31, 2023. Canadian Utilities Investor Presentation 23
Slide 25: Renewables — Alberta Solar: Barlow & Deerfoot
ATCO EnPower Renewables — Alberta Solar Barlow & Deerfoot * In September 2023, the Chiniki and Goodstoney First Nations and Canadian Utilities announced a partnership agreement for the Deerfoot and Barlow solar projects, the largest solar installations in an urban centre in Western Canada. * Under t
Slide 26: Renewables — Alberta Solar: Empress
ATCO EnPower Renewables — Alberta Solar Empress + Located south of the village of Empress, Alberta, near the Alberta-Saskatchewan border, the Empress solar project covers 280 acres and has a generating capacity of 38.5 MW of energy. * The Empress project reached full commercial operations in the fou
Slide 27: Renewables — Canadian Operating Assets
ATCO EnPower Renewables — Canadian Operating Assets a Capacity Total MW Contract Asset Province Type Total MW! Ownership P Contracted / Share Length Merchant 377 MW Operating 649 150 MW Capacity! fo Forty Mile Wind y Contracted 15 Years Phase 1 Alberta Wind 202 MW 100% 202 MW (Microsoft); 52 MW (203
Slide 28: Renewables - Development Pipeline
ATCO EnPower Renewables - Development Pipeline Project Province Type Total MW Forty Mile Wind Phase 1 Uprating Alberta Wind 23 MW Development Capacity! Forty Mile Solar Alberta Solar 220 MW. Alberta BESS Projects Alberta Battery 115 MW Craig Lake Wind Alberta Wind 246 MW Hand Hills Wind Alberta Wind
Slide 29: Renewables — Development Pipeline Timeline
ATCO EnPower Renewables —- Development Pipeline Timeline COD & Installed Capacities (MW)! Forty Mile Wind Uprating et 23 ew Forty Mile Solar 220 ww Alberta OES Projects ES 5.00 Craig Lake Wind ee 246 ww Hand Hills Wind YT 120 mw Hand Hills Solar 120 ww Kitscoty Wind At 174 ww Forty Mile Wind Phase 2
Slide 30: Canadian Hydrogen Demand
ATCO EnPower Canadian Hydrogen Demand Significant and growing demand for hydrogen exists within the domestic Canadian market; supported by corporate and operational decarbonization targets, fuel switching, and policy drivers that are increasing demand for clean hydrogen. 2040 Canadian H2 Demand Dist
Slide 31: ATCO's Hydrogen Strategy and Approach
ATCO EnPower ATCO's Hydrogen Strategy and Approach Four demand pillars underpin ATCO's approach to hydrogen project development: ATCO's hydrogen strategy: Prioritizes large volume low carbon fuel demand across 3 local demand pillars Utility Decarbonization Commercial/residential heat Power generatio
Slide 32: Heartland Hydrogen Production Site
Heartland Hydrogen Production Site ✓ • • ✓ ✓ ✓ • • 1 • 3 • • ✓ • • • • • 2 • 4 • • • •
Slide 33: Key Milestones
Key Milestone 2024 2025 …… 2029 • • • • • • • • • • •
Slide 34: Competitiveness and Value Proposition
ATCO EnPower Competitiveness and Value Proposition The Heartland Hydrogen project will offer low cost, low carbon intensity clean hydrogen by early 2029 supported by vertically integrated and secured carbon sequestration. ESG Consideratio * Ensuring a focus on sustainability is interwoven into the o
Slide 35: Why Invest?
Why Invest? Regulated Utilities create a stable base of recurring cash flow and dividends and are critical to successful energy transition globally. Non-regulated opportunities in renewable electricity G3 generation, clean fuels, and energy storage provide an opportunity for higher-than-utility grow
Slide 36: Appendix
Appendix 35
Slide 37: Electricity Distribution & Transmission
Appendix Electricity Distribution & Transmission We build, own and operate elect distribution and transmission facilities. ° Approximately 11,000 km of transmission lines, in addition to delivering power to, and operating 3,500- km's of distribution lines owned by Rural Electrification Associations,
Slide 38: Natural Gas Distribution & Transmission
Appendix Natural Gas Distribution & Transmission We build, own, and operate natural gas ALBERTA {I} AREA SERVED BY NATURAL GAS DISTRIBUTION A a = distribution facilities in Alberta. o Alberta's largest natural gas distribution company. o Serves approximately 1.3 million customers in over 300 Alberta
Slide 39: Australia Utility
Appendix Australia Utility We provide safe and reliable natural gas service to the Perth metropolitan area and the wider Western Australian community. o 14,700 km of natural gas distribution pipelines and associated infrastructure. o Serves 18 communities and approximately 803,000 customers. *Portfo
Slide 40: Legal Notice: Forward-Looking Information Advisory
Legal Notice Forward-Looking Information Advisory Statements made by company representatives and information provided in this presentation may be considered forward-looking information, Such information includes, but is not limited to, references to: strategic plans, goals and targets, including the
Slide 41: Legal Notice: Other Financial Measure Disclosure Advisory
Legal Notice Other Financial Measure Disclosure Advisory This presentation contains various "total of segments measures" (as such term is defined in NI 52-112), and “non-GAAP financial measures” (as such term is defined in NI 52-112). NI 52-112 defines a “total of segments measure" as a financial me
Slide 42: Canadian Utilities Limited Investor Relations
_ CANADIAN UTILITIES LIMITED Fe An ATCO Company a » ww. canadianutilities.com ‘ Tel: 403.292.7500 F x ™, > nvestor Relations , Teagan 5302 nd Street S = Calgary, Alberta T3E 8B4 _ Canada
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