Slide 1: Second Quarter 2015 Earnings Call
Second Quarter 2015 Earnings Call July 31, 2015
Slide 2: Logistics
Logistics Donna Hynes Director, Investor & Public Relations
Slide 3: Forward-Looking Statement
Forward‐Looking Statement Fortis Inc. (the "Corporation") includes forward‐looking information in this presentation within the meaning of applicable securities laws in Canada (“forward‐looking information”). The purpose of the forward‐looking information is to provide management’s expectations regar
Slide 4: Corporate Update
Corporate Update Barry Perry President and CEO
Slide 5: Q2 Performance – Record earnings
Q2 2015 • Q2 Performance – Record earnings – Gains on sale of non‐core assets – UNS Energy a key driver – Contribution from Waneta generating station – Strong performance from other regulated utilities • Q2 Focus – Execute $2.2 billion annual capital expenditure program – Sell non‐core assets 5
Slide 6: Positioned for strong performance in 2015
2015 • Positioned for strong performance in 2015 • Key drivers – UNS Energy full year contribution – Central Hudson new rates July 1, 2015 – Waneta generating station online early April – FortisAlberta growth 6
Slide 7: Significant Organic Growth
Significant Organic Growth 5‐year horizon 2015 ‐ 2019 – Capex over $9 billion, including $2.2 billion in 2015 – Potential LNG projects Tilbury Phase 1B expansion Pipeline expansion to Woodfibre LNG site – Rate base CAGR ≈ 6.5% Including potential LNG projects ≈ 7.5% 7
Slide 8: Focused and Well Positioned
Focused and Well Positioned • Fortis has successfully navigated a period of transformative change – Expansion into US regulated utility market – Waneta generating station online – Sale of non‐core assets • Near term focus – Execute capital expenditure program – Navigate significant regulatory procee
Slide 9: Financial & Regulatory Update
Financial & Regulatory Update Karl Smith Executive VP, Chief Financial Officer
Slide 10: Earnings
Earnings Q2 ($M, except as noted) 2015 2014 Change Basic Earnings per Common Share $0.88 $0.22 $0.66 Net Earnings to Common Equity Shareholders 244 47 197 Adjusting Items: Net gain regarding divestiture of non-core assets (123) - (123) UNS Energy acquisition-related costs - 14 (14) F/X loss Belize E
Slide 11: Financing
Financing • Net proceeds from sales of non‐core assets – Repay credit facility borrowings – Completes financing of UNS Energy acquisition • Over $200 million of long‐term debt issued in Q2 2015 • US$180 million equity injection into TEP – TEP pro forma equity thickness nearly 50% 11
Slide 12: Liquidity
Liquidity • Q2 2015 operating cash flow increased 46% to $468 million • Low debt maturity profile • Unutilized committed credit facilities $2 billion • Strong access to capital. Investment‐grade credit ratings • Consolidated capital structure 36% common, 9% preferred, 55% debt 12
Slide 13: Regulatory
Regulatory • Central Hudson – 3‐year rate plan commenced July 1, 2015 – Reforming the Energy Vision proceeding • FortisAlberta – Capital Tracker application 2016/2017 – Generic Cost of Capital proceeding 2016/2017 • FortisBC Energy to file application to review 2016 benchmark ROE and common equity t
Slide 14: Q&A
Q&A Leader in Electric and Gas Utilities in North America