Unitil Corporation · NYSE:UTL
Unitil — Shareholder Meeting (April 2018)
19 slides from Unitil's shareholder meeting presentation, Apr 25, 2018
Slide 1: Annual Meeting of Shareholders: Seamless Balance & Execution
Annual Meeting of Shareholders April 25, 2018 Seamless Balance & Execution 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
Our mission is to provide energy for life—safely, reliably, cost-effectively and responsibly—to a growing number of customers with a high-performing workforce Unitil Corporation is a public utility holding company engaged in the local distribution of natural gas and electricity to residential, comme
Slide 4: A Look Back
A Look Back Chairman of the Board, CEO & President Bob has been a leader and advisor in the energy sector for more than 30 years, serving as Unitil’s Chairman and Chief Executive Officer since 1997. He has provided strong leadership during some of the most challenging times in Company history BOB SC
Slide 5: Timeline of Bob's Leadership
Timeline of Bob’s Leadership 2008 - 2013 Successful Northern Utilities integration overshadowed by financial crisis and Ice Storm 2003 - 2008 Rising costs and slowing sales present headwinds, Northern Utilities acquisition a transformative opportunity 1997 - 2003 Not only was the utility industry re
Slide 6: Growth By Numbers
Growth By Numbers Net Income (in Millions $) Net Utility Plant (in Millions $) Shareholder Equity (in Millions $) 253% INCREASE 370% INCREASE 543% INCREASE * * * *Northern Utilities Acquisition
Slide 7: Market Performance
Market Performance Comparative 5-Year Total Returns Unitil has outperformed both the broader market and utility peers over the past five years 5-Year Total Return Unitil – 113% S&P 500 Utilities – 81% S&P 500 – 108%
Slide 8: Increasing Dividends and Retention
Increasing Dividends and Retention Since incorporation in 1984, Unitil has continuously paid quarterly dividends On January 30, 2018, Unitil announced a $0.02 annual increase in the dividend for the fourth consecutive year to a 2018 annualized dividend level of $1.46 per share Payout ratio has decli
Slide 9: Today: Where We Are
TODAY WHERE WE ARE
Slide 10: 2017 Accomplishments
2017 Accomplishments 6% CAGR 8% CAGR ($ in millions) Gas & Electric Sales Margin Net Income ($ in millions) Record revenues, earnings and customers served in 2017 Outstanding operational performance ensures safe and reliable service expected by customers Exceeded all service quality metrics for safe
Slide 11: Exceeding Customer Expectations
Exceeding Customer Expectations 90% of Unitil customers report being satisfied with their service Ranked #1 in New England for reliable service, being responsive to customer needs, and being a company customers can trust Successfully implemented state of the art Customer Information System (“CIS”) M
Slide 12: Operational Excellence
Operational Excellence Best in class gas emergency response and safety programs Gas emergency response time of >99% to natural gas odor calls, exceeding regulatory standards On going cast iron replacement programs leading the region at 91% modernized 2017 Northeast Gas Association Excellence in Heal
Slide 13: Strong Growth
Strong Growth Gas growth investments including on-the main growth opportunities, system expansion projects, Targeted Area Buildout (TAB) program and infrastructure replacement 60% on the main penetration providing thousands of potential low cost customer conversions Installed approximately 100 miles
Slide 14: Investment and Rate Base Growth
Investment and Rate Base Growth Total capital budget of $104 million in 2018 About 45% recoverable under capital trackers Additional ~30% will be spent on growth projects that add new customers, revenue and expand system for future growth Expect to maintain future rate base growth Lower tax deprecia
Slide 15: Constructive Regulation
Constructive Regulation Consistently achieving equity returns in line with authorized returns of 9.5%-9.8% Constructive regulatory environment supporting investment and growth Significant regulatory activities including completion of two base rate cases in 2018 in addition to long-term rate plans or
Slide 16: Financial Strength
Investment grade rating Standard & Poor’s issuer rating of BBB+ across Unitil Corporation and its subsidiaries Moody’s issuer rating of Baa2 (Unitil Corporation and Granite State) and Baa1 (Unitil Energy, Fitchburg, and Northern Utilities) Major long-term financings completed in Q4 2017 Issued $90 m
Slide 17: Utility Industry Update
Utility Industry Update Natural Gas Foundation fuel for a clean and secure energy future Transmission projects into New England are crucial for keeping costs competitive in the country’s most oil-reliant region Aging infrastructure across New England is in need of replacement to enhance safety and r
Slide 18: Some of New England's Fastest Growing Service Areas
Portland & Southern Maine Portland is the largest city north of Boston Greater Portland is responsible for more than half of the total gross state product Best Places to Live (Money Magazine) Portsmouth and Seacoast NH NH‘s fastest growing area and is a cultural hub located evenly between Boston and
Slide 19: Key Investment Highlights
Key Investment Highlights Regulated local distribution utility business model Growing service areas and customer base Diversified natural gas and electric operations Dividend strength Experienced management team