Fortis Inc. · TSX:FTS
Fortis — Investor Presentation (June 2023)
13 slides from Fortis's investor presentation, June 2023
Slide 1: Retail Presentation Q2 2023
Retail Presentation Q2 2023 FORTIS...
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 Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looki
Slide 3: A Premium Energy Delivery Business
A PREMIUM ENERGY DELIVERY BUSINESS 93% $4.3 billion transmission & distribution assets 2023F capital expenditures 10 regulated utilities $36 billion in Canada, the U.S. and Caribbean 2023F rate base 3.4 million $29 billion(1) electric and gas customers market capitalization 9,200 9.5% average annual
Slide 4: Driving Sustainable Growth: Our Vision & Strategy
OUR VISION & STRATEGY A Premium North American Utility DRIVING Delivering a Clean Energy Future SUSTAINABLE GROWTH Operational Excellence Financial Strength Diversified Regulated Portfolio Substantially Autonomous Business Model Strong Governance 4
Slide 5: Carbon Emissions Reduction on Track
CARBON EMISSIONS REDUCTION ON TRACK Sustainability Highlights: Achieved 28% GHG Emissions Reduction Since 2019 • Ranked #1 in the Globe & Mail 2022 Board Games 2019 • Released first TCFD and Climate Report in 2022 • Fortis aligned with GRI and SASB • Strong board diversity with 58% female directors
Slide 6: Highly Executable Capital Plan Supports Low-Risk Rate Base Growth of ~6%
HIGHLY EXECUTABLE CAPITAL PLAN SUPPORTS LOW-RISK RATE BASE GROWTH OF ~6% Capital Plan Continued Focus on Rate Base Customer Affordability 35% • Targeting controllable operating cost $46.1B increases below inflation, consistent Transmission with historical practice $34.1B $22.3B • Focused on preventa
Slide 7: Five-Year Plan at a Glance
FIVE-YEAR PLAN AT A GLANCE Average Annual Capital of $4.4B Highly Executable Capital Plan $4.7B $4.6B $4.5B • 99% Regulated $4.3B $4.2B • 83% Smaller Projects • 17% Major Projects • 55% U.S. • 41% Canada • 4% Caribbean 2023F 2024F 2025F 2026F 2027F Regulated - Independent Electric Transmission (ITC)
Slide 8: Long Capex Runway
LONG CAPEX RUNWAY Responding to stakeholder expectations and capitalizing on opportunities to expand & extend growth Business development in existing footprint Connect more renewable generation to the grid Prepare grid for additional electrification Build more renewable generation Invest in technolo
Slide 9: No Discrete Equity Required to Fund 2023-2027 Capital Plan
NO DISCRETE EQUITY REQUIRED TO FUND 2023-2027 CAPITAL PLAN Predictable Funding Plan Capital Plan Funded Primarily with Cash from Operations and Debt at Regulated Subsidiaries • Regulated debt used to repay maturing debt, and fund capital expenditures and operating requirements Net Debt(2) 33% Equity
Slide 10: Q1 Regulatory Highlights
Q1 REGULATORY HIGHLIGHTS Iowa Transmission Right of First Refusal (ROFR) – In March 2023, the Iowa Supreme Court granted certain parties standing to challenge the Iowa ROFR statute, issued a temporary injunction staying enforcement of the ROFR statute, and remanded the matter to the district court t
Slide 11: Dividend Guidance Supported by Long-Term Growth Strategy
DIVIDEND GUIDANCE SUPPORTED BY LONG-TERM GROWTH STRATEGY 49 YEARS of Consecutive Dividend Increases 4-6% Annual Dividend Growth Guidance through 2027 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 22 11
Slide 12: Why Invest in Fortis?
WHY INVEST IN FORTIS? WHY INVEST IN FORTIS? Focused on Geographic & 4-6% SAFE, ENERGY Regulatory ANNUAL DIVIDEND WELL-RUN DELIVERY DIVERSITY Growth Guidance Local Utilities LOW-RISK Virtually ESG Growth All Innovative REGULATED Leader Profile 12
Slide 13: Fortis
FORTIS... 13