Fortis Inc. · TSX:FTS
Fortis — Wolfe Research Utilities & Energy Conference 2019
15 slides from Fortis's conference presentation, October 2019
Slide 1: Wolfe Research Utilities & Energy Conference
WORKING TOGETHER POWERING GROWTH Wolfe Research Utilities & Energy Conference October 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 Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looki
Slide 3: Timeline
TIMELINE 1885-2012 2013-2016 2017-Current Focused on Canada U.S. Acquisition Strategy Focused on Growth in North America 3
Slide 4: A Geographically Diverse Energy Delivery Business
A Geographically Diverse Energy Delivery Business 4
Slide 5: High Quality Portfolio Operations
HIGH QUALITY PORTFOLIO 10 OPERATIONS Canada, U.S. & Caribbean 3.3M CUSTOMERS 2.0M Electric & 1.3M Gas ~99% REGULATED UTILITY ASSETS ~93% TRANSMISSION & DISTRIBUTION $28B 2019F RATE BASE ~66% EARNINGS FROM THE U.S. Note: All information as at June 30, 2019 5
Slide 6: Focused Strategy
FOCUSED STRATEGY STRATEGY Leverage the operating model, 6% footprint of our businesses, operating expertise, reputation Average Annual Dividend and financial strength to execute Focused on Growth Target through 2024 on growth opportunities Growth AREAS OF FOCUS: Capital Customer & Sustainability & S
Slide 7: Superior Average Annualized Total Shareholder Returns
SUPERIOR AVERAGE ANNUALIZED TOTAL SHAREHOLDER RETURNS 1-Year 5-Year 10-Year 20-Year 38.5% 14.3% 12.5% 14.1% 32.9% 10.4% 9.9% 10.1% 7.0% 5.3% 7.0% 7.1% Fortis S&P/TSX Capped Utilities Index S&P/TSX Composite Index Note: As at September 30, 2019 7
Slide 8: 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 • FortisBC GHG emission goal set to reduce • 60% of Head Office customer‘s energy use by 30% by 2030 • 42% of Board • TEP will reach 28% renewable power by 2021
Slide 9: Our New Five-Year Plan
OUR NEW FIVE-YEAR PLAN $18.3B ~7% ~6% CAPITAL RATE BASE DIVIDEND PLAN GROWTH GROWTH GUIDANCE 9
Slide 10: Low Risk, Highly Executable $18.3B Capital Plan
LOW RISK, HIGHLY EXECUTABLE $18.3B CAPITAL PLAN Sustaining(1) 59% Growth(2) 27% U.S. 54% Canada 41% Smaller Projects 80% Other(3) 14% Caribbean 5% Major Projects(4) 20% (1) Capital expenditures required to ensure continued and enhanced performance, reliability and safety. (2) Capital expenditures re
Slide 11: 2020-2024 Rate Base
2020-2024 RATE BASE(1) $38.4 $36.8 Rate base grows over $34.5 $10B $32.5 $30.7 $28.0 to $38.4B during 5-year period Rate base CAGR of ~7% 2019F 2020F 2021F 2022F 2023F 2024F Regulated - Canadian & Caribbean Electric & Gas Regulated - U.S. Electric & Gas Regulated - Independent Electric Transmission
Slide 12: Outperforming Historical Capital Plans
OUTPERFORMING HISTORICAL CAPITAL PLANS 2016 INVESTOR DAY(1) 2017 INVESTOR DAY 2018 INVESTOR DAY $19.3B $18.8B $17.3B $18.2B $14.5B $12.9B 2017-2021 CAPITAL PLAN 2018-2022 CAPITAL PLAN 2019-2023 CAPITAL PLAN ORIGINAL PLAN ACTUAL/CURRENT FORECAST (1) Released in conjunction with Q3 2016 earnings 12
Slide 13: 2020-2024 Funding Plan
2020-2024 FUNDING PLAN Cash From Operations(1) 73% Debt Primarily at Operating Utilities 5-Year Subsidiary Balance Sheets Reflects Approved Levels Capital Plan of Improved Credit Metrics $18.3B Maintaining Investment-Grade Credit Ratings Ample Liquidity Debt(2) 24% ATM(3) 3% (1) Cash from operations
Slide 14: Dividend Guidance Supported by Growth Strategy
DIVIDEND GUIDANCE SUPPORTED BY GROWTH STRATEGY $2.5 6% 46 YEARS $2.0 AVERAGE ANNUAL OF CONSECUTIVE $1.5 DIVIDEND DIVIDEND INCREASES GROWTH GUIDANCE $1.0 EXTENDED TO 2024 $0.5 7273 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20F 22F 24F Dividend payments Forecast Dividend Pay
Slide 15: Why Invest in Fortis?
WHY INVEST IN FORTIS? WELL-RUN HIGHLY FOCUSED ON STRONG VIRTUALLY ESG 6% INNOVATIVE BUSINESSES DIVERSIFIED ENERGY GROWTH ALL LEADER DIVIDEND DELIVERY PROFILE REGULATED GUIDANCE 15
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