Slide 1: 2017 Q1 Earnings Call
2017 Q1 Earnings Call May 2, 2017
Slide 2: Forward-Looking Information
Forward-Looking Information Fortis Inc. (“Fortis” or, the “Corporation”) includes forward-looking information in this presentation within the meaning of applicable securities laws including the Private Securities Litigation Reform Act of 1995. Forward-looking information included in this presentatio
Slide 3: Barry Perry, President & CEO
Baa eae Oe (2) Barry Perry President & CEO FORTIS
Slide 4: First Quarter Performance In Line with Plan
First Quarter Performance In Line with Plan Earnings & Cash Flows • Q1 2017 adjusted EPS of $0.69 • An increase of $0.02 compared to Q1 2016 • Earnings growth driven by UNS and accretion from ITC • Tempered by lower earnings at FortisAlberta as well unfavourable foreign exchange associated with US d
Slide 5: Average Annual Dividend Growth Target of ~6% through 2021
Average Annual Dividend Growth Target of ~6% through 2021 $1.53 $1.40 $1.20 $1.24 $1.28 $1.16 $1.12 $1.04 $1.00 $0.82 Average annual dividend growth $0.67 through 2021 targeted at ~6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F Dividend paid per common share
Slide 6: Capital Plan Grows Rate Base to ~$30 Billion in 2021
Capital Plan Grows Rate Base to ~$30 Billion in 2021 ~$13B Five-Year Capital Program 2016 – 2021 Midyear Rate Base (2) $3.0 $2.9 $28.9 $29.6 $28.3 $27.1 $2.4 $2.4 $25.7 $2.3 $24.3 ($ billions ) (1) ($ billions ) (1) (3) (3) 2017F 2018F 2019F 2020F 2021F 2016A 2017F 2018F 2019F 2020F 2021F (4) Other
Slide 7: Progress on Major Capital Projects
Progress on Major Capital Projects Total Forecast Forecast $millions (1) (2) 2017 2018-2021 2017-2021 Forecast ITC Multi-Value Regional Transmission Projects 305 244 549 ITC 34.5 kV to 69 kV Conversion Project 89 369 458 Central Hudson Gas Main Replacement Program 33 169 202 FortisBC Tilbury LNG Fac
Slide 8: Potential Development Opportunities Update
Potential Development Opportunities Update (1) • Potential pipeline expansion to the Woodfibre LNG export site • Project estimate of up to $600 million, not currently in forecast Earliest expected in service date is late 2020 Woodfibre LNG • • Proposed 1,000 MW, bi-directional, high-voltage direct c
Slide 9: Karl Smith, Executive Vice President, Chief Financial Officer
Karl Smith Executive Vice President, Chief Financial Officer
Slide 10: Diversified Portfolio of Utilities Continues to Deliver Quality Performance
Diversified Portfolio of Utilities Continues to Deliver Quality Performance Adjusted EPS Adjusted Earnings $300 $281 $0.70 $0.69 $0.67 $250 ( millions) $200 $190 $0.60 $150 $0.50 $100 2016 2017 2016 2017 Q1 Q1 10
Slide 11: Multiple Drivers of EPS Growth – Q1
Multiple Drivers of EPS Growth – Q1 0.80 0.75 0.01 $2.11 0.01 0.01 0.70 0.01 0.04 0.01 0.01 0.65 ($) 0.60 0.69 0.67 0.55 0.50 (1) (2) (3) 2016 Q1 UNS Aitken Creek ITC WA Share Corp. and Foreign Other 2017 Q1 Adjusted Impact Other Exchange Regulated Adjusted Actual EPS Utilities Actual EPS (1) Inclus
Slide 12: Liquidity and Credit Ratings
Liquidity and Credit Ratings Credit Ratings(1) Consolidated Credit Facilities 7.0 6.0 Fortis Inc. 5.0 3.7 3.8 ($ billions) 4.0 S&P A- / BBB+ 3.0 DBRS BBB (high) 2.0 Moody’s Baa3 (2) 2.2 1.0 1.6 0.0 Dec 31/16 Mar 31/17 Utilized Remaining Capacity (1) In October 2016, following the completion of the a
Slide 13: Continued Regulatory Stability
Continued Regulatory Stability Recent Regulatory Outcomes Agreement/ Regulated Utility Application/Proceeding Outcome Decision Timing ‒ 10.32% base ROE with a high-end zone of ITC Initial MISO Base ROE Complaint September 2016 reasonableness of 11.35% 2016 Application: ROE and Common ‒ Maintained RO
Slide 14: Barry Perry, President & CEO
SD) > ad © - Barry Perry President & CEO
Slide 15: Poised to Deliver Quality Results
Poised to Deliver Quality Results • On track to execute 2017 plan, supported by acquisition of ITC and new UNS rates • Consistent dividend growth • 43 years of consecutive dividend increases • 6% average annual dividend growth guidance through 2021 • Highly diversified regulated utility, focused on
Slide 16: Upcoming Events
Upcoming Events Annual and Special Meeting Thursday, May 4, 2017 9:00 a.m. (Eastern), 10:30 a.m. (Newfoundland) The Holiday Inn St. John's, 180 Portugal Cove Road, St. John's, NL A live webcast of the meeting will be available on the Corporation's website www.fortisinc.com. Save the Date - 2017 Inve
Slide 17: 2017 Q1 Earnings Call
2017 Q1 Earnings Call May 2, 2017
Slide 18: Q1 Results by Segment
Q1 Results by Segment Q1 Variance Analysis By Segment Q1 Q1 2017 Q1 Q1 2016 Q1 (Adjusted) (Millions excluding EPS) 2017 Adj. (Adjusted) 2016 Adj. (Adjusted) Variance Regulated- Independent Electric Transmission (ITC) ITC Holdings 91 - 91 - - - 91 Regulated - US Electric & Gas UNS Energy 41 (7) 34 12
Slide 19: 2017-2021 Five Year Forecast by Segment
2017-2021 Five Year Forecast by Segment 2017 Capital Forecast ($millions) Regulated–Independent Transmission (ITC) 5-Year Capital Forecast Spending ITC 958 Regulated-US Electric & Gas UNS Energy 520 Other 1 Central Hudson 222 12% Regulated-Canadian & Caribbean Electric & Gas FortisBC Gas 467 FortisA
Slide 20: Capital Expenditures Exceeding Expectations
Capital Expenditures Exceeding Expectations 2013-2017 Business Plan Capex 2014-2018 Business Plan Capex 2015-2019 Business Plan Capex $ Millions $ Millions $ Millions 3,000 3,000 3,000 2,500 2,500 2,500 2,000 2,000 2,000 1,500 1,500 1,500 1,000 1,000 1,000 500 500 500 0 0 0 2013 2014 (1) 2015 (1) 20
Slide 21: Opportunities Beyond Base Plan
Opportunities Beyond Base Plan ITC: Lake Erie Connector Prince Newfoundland Edward and Labrador Alberta Island British Columbia Prince Edward FortisOntario: Island Wataynikaneyap Project & British Columbia Municipal Utility Consolidation Ontario Minnesota Ontario FortisBC: New York Tilbury, Woodfibr