Atco Ltd. Class I · TSX:ACO.X
Atco Ltd. Class I — Investor Presentation (March 2023)
38 slides from Atco Ltd. Class I's investor presentation, March 2023
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 ATCO Ltd. or any of its re
Slide 2: Investor Presentation ATCO Ltd.
Investor Presentation ATCO Ltd.
Slide 3: Agenda
INVESTOR PRESENTATION Agenda Executive Leadership Introduction 3 Financial Overview 4 ATCO Group Overview 8 Environment, Sustainability and Governance 12 Structures & Logistics 14 Neltume Ports 21 Aschor 22 ATCO Land and Development 23 Canadian Utilities Overview 24 Utilities 27 Energy Infrastructur
Slide 4: Executive Committee
EXECUTIVE COMMITTEE Nancy C. Southern Katie J. Patrick Adam M. Beattie M. George Constantinescu Chair & Chief Executive Officer, Executive Vice President, President, Structures Senior Vice President ATCO Ltd. Chief Financial & Investment Officer & Chief Transformation Officer Dale Friesen Jim Landon
Slide 5: Continued Growth
2015 FINANCIAL STRENGTH CGOC2 decision and global Continued Growth 2013 commodity price declines 2020 Calgary 2016 COVID-19 Floods Pandemic LONG-TERM TRACK RECORD OF ADJUSTED EARNINGS GROWTH Alberta wildfires THROUGH VARIOUS GLOBAL MACRO-ECONOMIC CYCLES 2008- 2009 Financial $423 MILLION IN ADJUSTED
Slide 6: Market Leading Dividend Growth
FINANCIAL STRENGTH Market Leading Dividend Growth 30 YEARS OF ANNUAL DIVIDEND INCREASES* DIVIDENDS DECLARED OF $1.85 PER SHARE IN 2022 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 YEAR *ATCO has declared first quarter 2023 dividends of $0.4756 per share,
Slide 7: Total 2022 Adjusted Earnings
STABLE, DIVERSIFIED EARNINGS $14M Neltume Ports Total 2022 $61M Adjusted Structures & Logistics Earnings1 Global portfolio of assets across energy, utilities, shelter, logistics, transportation, real estate and water creates a diversified stream of earnings. $423M $348M Canadian Utilities 1. For add
Slide 8: Strong Credit Ratings
STRONG CREDIT RATINGS A (low) BBB+ BBB+ A (high) A- A- A BBB+ A- ATCO Ltd. Investor Presentation 7
Slide 9: ATCO Group Overview
ATCO Group Overview For recent filings and further details please visit: atco.com 8
Slide 10: Overview
ATCO GROUP OVERVIEW Overview Based in Alberta, ATCO is one of Canada’s premier corporations. With approximately 7,600 employees and assets of $24 billion, ATCO is a proven, diversified, and global corporation. 1 We are publicly traded on the Toronto Stock Exchange under the tickers ACO.X (non-voting
Slide 11: Organizational Structure
ATCO GROUP OVERVIEW Organizational Structure 100% 40% 100% 52.9% STRUCTURES & LOGISTICS Business Unit NELTUME PORTS CORPORATE 1 (TSX: CU / CU.X) LAND & STRUCTURES DEVELOPMENT ~$10 billion common equity capitalization as of Dec 31, 2022. 2 FRONTEC 1. ATCO Land and Development Ltd. includes commercial
Slide 12: Strategy
ATCO GROUP OVERVIEW Strategy ENERGY LOGISTICS & TRANSPORTATION Our essential services investments offer customers around the world tailored solutions to meet their individual needs and offer investors a stable and growing SHELTER WATER earnings profile, with exposure to favourable macroeconomic tren
Slide 13: ATCO's Commitment to Sustainability
OUR COMMITMENT TO ESG OUR STRATEGIC FOCUS ATCO’s Commitment to Sustainability ESSENTIAL SERVICES FOR LIFE AND PROSPERITY For ATCO, sustainability is more than an aspiration; it is interwoven into our strategy, our day-to-day operations, the ENERGY TRANSITION products and services we provide, and the
Slide 14: Strategic 2030 ESG Targets
OUR COMMITMENT TO ESG Strategic 2030 ESG Targets ATCO Ltd. Investor Presentation 13
Slide 15: Structures & Logistics Overview
ATCO GROUP OVERVIEW Structures & Logistics Overview Structures and Logistics is comprised of two business units: 1 2 STRUCTURES FRONTEC Workforce Housing Operational Support Services Space Rentals Disaster & Emergency Management Permanent Modular Construction Remote Accommodations / Camps Manufactur
Slide 16: ATCO Structures & Logistics Adjusted Earnings
ATCO GROUP OVERVIEW ATCO Structures & Logistics Adjusted Earnings1 15% YoY Growth $61M $53M 2021 2022 1. For additional information about adjusted earnings, please see the “Legal Notice” slide. ATCO Ltd. ATCO Corporate Ltd. Investor Presentation 15 15
Slide 17: ATCO Structures: Workforce Housing
Trans Mountain Expansion Project Camp, Valemount, BC ATCO GROUP OVERVIEW ATCO Structures: Workforce Housing Streamlining our manufacturing platform to scale quickly and profitably when needed to capture workforce housing contracts. FLORIDA STATE GOVERNMENT SUPPORT ACCOMMODATIONS • Executed a $12 mil
Slide 18: ATCO Structures: Space Rentals
Bechtel Pluto Train II, Australia ATCO GROUP OVERVIEW ATCO Structures: Space Rentals We continue to expand our space rental fleet in existing space rental geographies and through continued strategic expansion in targeted regions of Canada and the US. BECHTEL PLUTO TRAIN II • Awarded a $37 million sp
Slide 19: ATCO Structures: Permanent Modular Construction
Triple M manufacturing facility, Lethbridge, Alberta ATCO GROUP OVERVIEW ATCO Structures: Permanent Modular Construction Diversifying our global customer base into non-traditional modular markets such as public education facilities, high density urban residential housing, hotels, and hospitals. TRIP
Slide 20: ATCO Frontec
ATCO GROUP OVERVIEW ATCO Frontec Taking care of the details so our customers can focus on their core business. LODGING & SUPPORT SERVICES • Safely operating accommodation facilities during even the most challenging times (COVID-19, etc.), increasing client confidence and camp occupancies. SPECIALIZE
Slide 21: ATCO Frontec
Mewata Armoury, Department of National Defence ATCO GROUP OVERVIEW ATCO Frontec Leveraging our experience in remote locations and successfully building mutually beneficial partnerships. DEFENCE CONSTRUCTION CANADA (DCC) • Secured two Facility Maintenance and Site Services contracts with DCC to maint
Slide 22: Neltume Ports
ATCO GROUP OVERVIEW Neltume Ports DIVERSIFIED BY CARGO TYPE AND GEOGRAPHY • ATCO acquired a 40% ownership interest in Neltume Ports in 2018. BY CARGO TYPE IN 2022 BY GEOGRAPHY IN 2022 • Neltume Ports is a port operator and developer with a diversified portfolio of 17 multi-purpose, bulk 3% cargo and
Slide 23: Ashcor
ATCO GROUP OVERVIEW Ashcor We develop innovative means to repurpose ash, both “live” ash and reclaimed ash, enabling it to play a vital role in solving infrastructure and environmental challenges. We are a trusted ash expert and a pioneer in our industry. COMMON USES FOR OUR ASH: Ready Mixed Concret
Slide 24: ATCO Land and Development
ATCO GROUP OVERVIEW ATCO Land and Development • Invests in, and holds, high-value land in areas where ATCO’s global expertise, vision, and brand can be leveraged for use by ATCO’s own companies and in conjunction with partners. • The current portfolio for ATCO Land and Development includes: • 11 com
Slide 25: Canadian Utilities Overview
Canadian Utilities Overview For the standalone Canadian Utilities Limited Investor Presentation and further details please visit: canadianutilities.com 24
Slide 26: Canadian Utilities Limited
CANADIAN UTILITIES OVERVIEW Canadian Utilities Limited Canadian Utilities is an ATCO company with approximately 5,000 employees and assets of $22 billion.1 We are publicly traded on the Toronto Stock Exchange under the tickers CU (non-voting) and CU.X (voting). As a diversified global energy infrast
Slide 27: Strategy
CANADIAN UTILITIES OVERVIEW Strategy DRIVE CASH FLOW OPTIMIZE NON-REG • Build on our core utility business and invest in activities aimed at advancing the energy AND EARNINGS ASSETS AND GROW transition and ensuring long-term resiliency. • Optimize our energy infrastructure assets and add new growth
Slide 28: Regulated Utilities
CANADIAN UTILITIES OVERVIEW Regulated Utilities Electricity Transmission | $5.1B Rate Base Electricity Distribution | $3.0B Rate Base Natural Gas Distribution | $3.0B Rate Base Natural Gas Transmission | $2.5B Rate Base Int’l Natural Gas Distribution | $1.3B Rate Base Int’l Electricity Operations |
Slide 29: Regulated Utilities: Returns On Equity
CANADIAN UTILITIES OVERVIEW Regulated Utilities: Returns On Equity 10 YEAR AVERAGE (2012-2021) CU INC. IS COMPRISED OF OUR ALBERTA UTILITY COMPANIES AND ACHIEVES TOP-TIER RETURNS ON EQUITY CU Inc.’s average ROE is 2.1% above average AUC approved over last 10 years. 10.6% 8.5% 9.1% AUC Approved Alber
Slide 30: Energy Infrastructure Businesses
CANADIAN UTILITIES OVERVIEW Energy Infrastructure Businesses Electricity Generation Canada | 256 MW Electricity Generation Australia | 177 MW Electricity Generation Latin America | 47 MW Industrial Water Services Canada | 85,200 m3/day Hydrocarbon Storage Canada | 550,000 m3 Natural Gas Storage Cana
Slide 31: Energy Transition: Leading The Way
CANADIAN UTILITIES OVERVIEW Energy Transition: Leading The Way We recognize clean energy as being the future and we’re proud to lead the energy transition. OUR ENERGY TRANSITION STRATEGY IS BROKEN DOWN INTO THREE KEY COMPONENTS: Renewable Generation Clean Fuels Energy Storage • Investing in solar an
Slide 32: Retail Energy
CANADIAN UTILITIES OVERVIEW Retail Energy RETAIL IS COMPRISED OF THREE SEGMENTS: Home Energy Cooking Classes & Programs Home Products Business Energy Events & Catering Repair & Maintenance Services Large Commercial Energy BFK Café Home Management Advice ATCOenergy offers flexible electricity and nat
Slide 33: Canadian Utilities standalone presentation
For the standalone Canadian Utilities Limited Investor Presentation and further details please visit: canadianutilities.com 32
Slide 34: Appendix
Appendix 33
Slide 35: Neltume Port – Further Information
Puerto Angamos (PANG) APPENDIX NELTUME PORT – FURTHER INFORMATION1 Terminal Port % Ownership Country Type Key Cargo Terminal Puerto Arica 50% CHL Container Mixed Terminal Puerto Angamos 40% CHL Multi Copper Terminal Graneles del Norte 40% CHL Dry Bulk Coal/Copper Montecon (MON) Puerto Mejillones 50%
Slide 36: Legal Notice
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 tho
Slide 37: Legal Notice
Legal Notice Other Financial Measure Disclosure Advisory This presentation includes references to consolidated adjusted earnings, which is considered to be a “total of segments measure” as that term is defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. The most d
Slide 38: ATCO.com Investor Relations
ATCO.com canadianutilities.com Tel: 403.292.7500 Investor Relations InvestorRelations@atco.com 5302 Forand Street SW Calgary, Alberta T3E 8B4 Canada 37