Slide 1: Retail Investors Meeting
Industrial Alliance Retail Investors Meeting June 17, 2019
Slide 2: Forward-Looking Information
Forward-Looking Information Fortis includes "forward-looking information" in this presentation within the meaning of applicable Canadian securities laws and "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, collectively referred to as "forw
Slide 3: Fortis: A Highly Regulated Energy Delivery Company
Fortis: A Highly Regulated Energy Delivery Company 3
Slide 4: High Quality & Diverse Utility Portfolio
High Quality & Diverse Utility Portfolio 10 UTILITY OPERATIONS Canada, U.S. & Caribbean 3.3 MILLION UTILITY CUSTOMERS 2.0M Electric & 1.3M Gas ~99% REGULATED UTILITY ASSETS ~93% TRANSMISSION & DISTRIBUTION $ 26.1 BILLION IN MIDYEAR RATE BASE IN 2018 ~65% EARNINGS FROM THE U.S. Note: All information
Slide 5: Our Strategy
Our Strategy S T R AT E G Y 6% Leverage the operating model, footprint of our utilities, operating expertise, reputation and financial Average Annual Dividend Focus on strength to develop growth Growth Target through Growth opportunities 2023 AREAS OF FOCUS: Utility Capital System Sustainability & C
Slide 6: Sustainability: It's How We Do Everything
Sustainability: It’s How We Do Everything Ranked Top Decile on Focused on Delivering Governance Matters(1) Cleaner Energy • Women represent • Carbon Intensity • 60% of Head Office Decreased 63% since 2015 • 42% of Board • Renewable Generation • 1/3 of Executive team Expansion in Arizona 93% of our a
Slide 7: Strong Financial Track Record
Strong Financial Track Record 2018 Key Statistics $2.33 $2.47 $2.51 8,800 Employees $2.11 $1.75 $8.4B Revenues 73% 66% 65% 66% 69% $1.1B Net Earnings Strong Rate Base Growth 2014 2015 2016 2017 2018 Adjusted EPS(2) Dividend Payout Ratio(2) 6% 2018 Rate Base Growth 6% 5-Year Historical(3) (1) 5-year
Slide 8: Consistently Delivering Superior Average Annualized Total Shareholder Returns
Consistently Delivering Superior Average Annualized Total Shareholder Returns 1-Year 5-Year 10-Year 20-Year 28.0% 13.6% 12.0% 13.5% 3.0% 5.0% 7.6% 7.0% 21.9% 8.4% 10.0% 9.1% Fortis S&P/TSX Composite Index S&P/TSX Capped Utilities Index Note: For the period ending May 31, 2019. 8
Slide 9: 2019-2023 Business Plan Highlights
2019-2023 Business Plan Highlights $17.3B 6-7% 6% 5-Year Rate Base Average Annual Capital Plan Growth Dividend Growth Target to 2023 9
Slide 10: Capital Plan Supports 6-7% Average Annual Rate Base Growth
Capital Plan Supports 6-7% Average Annual Rate Base Growth (1) $17.3B 5-Year Capital Plan Rate Base(2) $3.7 $35.5 $3.5 $3.6 $33.4 $32.0 $3.2 $3.3 $30.1 $27.9 $26.1 Billions Billions 2019F 2020F 2021F 2022F 2023F 2018A 2019F 2020F 2021F 2022F 2023F Canadian & Caribbean U.S. (1) Capital expenditures a
Slide 11: Executing on Capital Plan Supporting a Cleaner Energy Future
Executing on Capital Plan Supporting a Cleaner Energy Future FortisBC Obtained TEP Oso Grande Energy Conservation & Leave to Construct 247 MW Wind Project Efficiency Program from OEB Increased to ~$370M Once complete: Expected to: Next steps include: • Renewable energy • Decrease CO2 • Environmental
Slide 12: TEP: Focused on Renewables
TEP: Focused on Renewables TEP’s Resource Transition 30% Renewables by % Renewable Energy 2030 TEP’s Renewable TEP’s Energy Mix Current Target 30% Existing 28% State Standard 15% 13% 2025 2030 2018 2021F (1) Project developed through purchase power agreements. 12
Slide 13: TEP Rate Case Filing
TEP Rate Case Filing Summary of TEP Rate Case Applications 2017 General Rate 2019 Rate Case 2018 Approved Application Requested Application Test Year Test Year June 30, 2015 December 31, 2018 New Rates Effective February 2017 May 1, 2020 Annual Customer Rate Base US$2.0B US$2.7B Rate Increases Non-F
Slide 14: 2019 Regulatory Outlook
2019 Regulatory Outlook MISO Base ROE Complaints • FERC recently established new supportive methodology • Awaiting final decision from FERC Notice of Inquiries (NOIs) issued by FERC in March 2019 to seek stakeholder comments on: • Incentive policies for transmission investment • Methodology for esta
Slide 15: Execution of Funding Plan Supports Investment-Grade Credit Ratings
Execution of Funding Plan Supports Investment-Grade Credit Ratings Investment-Grade Credit Ratings Cash From S&P Global A- / BBB+(3) Operations(1) DBRS BBB (high) Capital 68% Moody’s Baa3 Plan Funding Regulated CFO/Debt > 11% (4) Debt 24% & Improved Holdco Other(2) Waneta Debt / Total Debt 2% Asset
Slide 16: Leader in Dividend Growth With 45 Years of Dividend Increases
Leader in Dividend Growth With 45 Years of Dividend Increases (1) 6% guidance generates annual dividend payment of $2.27 in 2023 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19F 21F 23F Actual dividend paid Forecasted dividend payments (1) Based on an annualized dividend of $
Slide 17: Why Invest In Fortis?
Why Invest In Fortis? Well-Run Utilities Virtually All Regulated Highly Diversified Strong Growth Profile 6% Dividend Guidance Opportunities Beyond Capital Plan 17
Slide 18: Retail Investors Meeting
Industrial Alliance Retail Investors Meeting June 17, 2019