Atco Ltd. Class I · TSX:ACO.X
Atco Ltd. Class I — Investor Presentation (January 2024)
35 slides from Atco Ltd. Class I's investor presentation, January 2024
Slide 1: Disclaimer
DISCLAIMER Due to uncertainty surrounding the application of recent amendments to the Competition Act (Canada), the documents incorporated by reference herein are referenced for historical information purposes only and do not constitute active or current representations of ATCO Ltd. or any of its re
Slide 2: Investor Presentation
Investor Presentation ATCO Ltd. January 2024
Slide 3: Agenda
INVESTOR PRESENTATION Agenda Executive Leadership Introduction 3 Financial Overview 4 ATCO Group Overview 8 Environment, Sustainability and Governance 12 Structures & Logistics 14 Neltume Ports 19 Ashcor 20 ATCO Land and Development 21 Canadian Utilities Overview 22 ATCO Energy Systems 25 ATCO EnPow
Slide 4: Executive Committee
EXECUTIVE COMMITTEE Nancy C. Southern Adam M. Beattie M. George Constantinescu Dale Friesen Chair & Chief Executive Officer, President, Structures Executive Vice President Senior Vice President, Corporate Affairs ATCO Ltd. & Chief Transformation Officer & Chief Government Affairs Officer Jim Landon
Slide 5: Continued Growth
2015 FINANCIAL STRENGTH GCOC2 decision and global Continued Growth 2013 commodity price declines 2020 Calgary 2016 COVID-19 Floods Pandemic LONG-TERM TRACK RECORD OF ADJUSTED EARNINGS GROWTH Alberta wildfires THROUGH VARIOUS GLOBAL MACRO-ECONOMIC CYCLES 2008- 2009 Financial $423 MILLION IN ADJUSTED
Slide 6: Market Leading Dividend Growth
FINANCIAL STRENGTH Market Leading Dividend Growth 31 YEARS OF ANNUAL DIVIDEND INCREASES* DIVIDENDS DECLARED OF $1.90 PER SHARE IN 2023 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 YEAR *ATCO has declared first quarter 2024 dividends of $0.4898 per shar
Slide 7: Total 2022 Adjusted Earnings
STABLE, DIVERSIFIED EARNINGS $14M Neltume Ports Total 2022 $61M Adjusted Structures & Logistics Earnings1 Global portfolio of assets across energy, utilities, shelter, logistics, transportation, real estate and water creates a diversified stream of earnings. $423M $348M Canadian Utilities 1. Adjuste
Slide 8: Strong Issuer Credit Ratings
STRONG ISSUER CREDIT RATINGS A (low) BBB+ A (high) A- A A- ATCO Ltd. Investor Presentation 7
Slide 9: ATCO Group Overview
ATCO Group Overview For recent filings and further details please visit: atco.com 8
Slide 10: Overview
ATCO GROUP OVERVIEW Overview Based in Alberta, ATCO is one of Canada’s premier corporations. With approximately 7,600 employees and assets of $24 billion, ATCO is a proven, diversified, and global corporation.1 We are publicly traded on the Toronto Stock Exchange under the tickers ACO.X (non-voting)
Slide 11: Organizational Structure
ATCO GROUP OVERVIEW Organizational Structure 100% 40% 100% 52.9% 3 Structures & Logistics Neltume Ports Corporate Business Unit 1 Land and Structures Development 2 Frontec 1. ATCO Land and Development is a commercial real estate business that holds investments for sale, lease or development. 2. Ashc
Slide 12: Strategy
ATCO GROUP OVERVIEW Strategy ENERGY LOGISTICS & TRANSPORTATION Our essential services investments offer customers around the world tailored solutions to meet their individual needs and offer investors a stable and growing SHELTER WATER earnings profile, with exposure to favourable macroeconomic tren
Slide 13: ATCO's Commitment to Sustainability
OUR COMMITMENT TO ESG OUR STRATEGIC FOCUS ATCO’s Commitment to Sustainability ESSENTIAL SERVICES FOR LIFE AND PROSPERITY For ATCO, sustainability is more than an aspiration; it is interwoven into our strategy, our day-to-day operations, the ENERGY TRANSITION products and services we provide, and the
Slide 14: Strategic 2030 ESG Targets
OUR COMMITMENT TO ESG Strategic 2030 ESG Targets ATCO Ltd. Investor Presentation 13
Slide 15: Structures & Logistics Overview
ATCO GROUP OVERVIEW Structures & Logistics Overview Structures and Logistics is comprised of two business units: 1 2 STRUCTURES FRONTEC Workforce Housing Operational Support Services Space Rentals Disaster & Emergency Management Permanent Modular Construction Remote Accommodations / Camps Manufactur
Slide 16: ATCO Structures & Logistics Adjusted Earnings
ATCO GROUP OVERVIEW ATCO Structures & Logistics Adjusted Earnings1 15% YoY Growth $61M $53M 2021 2022 1. Adjusted earnings is a total of segments measure (as defined in NI 52-112). ATCO Ltd. ATCO Corporate Ltd. Investor Presentation 15 15 See Legal Notice for additional information.
Slide 17: ATCO Structures
ATCO GROUP OVERVIEW ATCO Structures Focus on expansion of base business earnings which contribute two-thirds to three-quarters of our segment earnings and are less cyclical compared to large workforce projects. Global Space Rentals Global Space Rentals Metrics 2022 2021 Number of units 22,433 19,684
Slide 18: ATCO Frontec
ATCO GROUP OVERVIEW ATCO Frontec Taking care of the details so our customers can focus on their core business. LODGING & SUPPORT SERVICES • Safely operating workforce accommodation facilities in remote locations for energy, mining, construction and government clients. SPECIALIZED SITE SERVICES FOR M
Slide 19: ATCO Frontec
BHP Jansen Discovery Lodge, Saskatchewan ATCO GROUP OVERVIEW ATCO Frontec Leveraging our experience in remote locations and successfully building mutually beneficial partnerships. BHP JANSEN DISCOVERY LODGE CAMP SERVICES CONTRACT • Awarded $86 million contract for Wicehtowak Frontec Services (WFS),
Slide 20: Neltume Ports
ATCO GROUP OVERVIEW Neltume Ports DIVERSIFIED BY CARGO TYPE AND GEOGRAPHY • Neltume Ports is a port operator and developer with a diversified portfolio of 18 multi-purpose, bulk BY CARGO TYPE IN 2022 BY GEOGRAPHY IN 2022 cargo and container port facilities and 5 port operations services. 3% • The bu
Slide 21: Ashcor
ATCO GROUP OVERVIEW Ashcor We develop innovative means to repurpose ash, both “live” ash and reclaimed ash, enabling it to play a vital role in solving infrastructure and environmental challenges. We are a trusted ash expert and a pioneer in our industry. COMMON USES FOR OUR ASH: Ready Mixed Concret
Slide 22: ATCO Land and Development
ATCO GROUP OVERVIEW ATCO Land and Development • Invests in, and holds, high-value land in areas where ATCO’s global expertise, vision, and brand can be leveraged for use by ATCO’s own companies and in conjunction with partners. • The current portfolio1 for ATCO Land and Development includes: • 11 co
Slide 23: Canadian Utilities Overview
Canadian Utilities Overview For the standalone Canadian Utilities Limited Investor Presentation and further details please visit: canadianutilities.com 22
Slide 24: Current Operations and Investments
CANADIAN UTILITIES OVERVIEW Current Operations and Investments1 Utilities, Energy Infrastructure and Retail Energy Utilities & Energy Infrastructure Energy Infrastructure Utilities $22 B in Assets $4 B in Revenues 544,000 m3 Natural Gas Liquids 64,700 Pipelines KM 105,000 Electric KM Storage Capacit
Slide 25: Strategy
CANADIAN UTILITIES OVERVIEW Strategy • Build on our core utility businesses and invest in activities aimed at advancing the energy transition and ensuring long-term resiliency. DRIVE CASH FLOW OPTIMIZE NON-REG • Optimize our energy infrastructure assets and add new growth AND EARNINGS ASSETS AND GRO
Slide 26: ATCO Energy Systems
CANADIAN UTILITIES OVERVIEW ATCO Energy Systems Electricity Transmission | $5.1B Rate Base Electricity Distribution | $3.0B Rate Base Natural Gas Distribution | $3.0B Rate Base Natural Gas Transmission | $2.5B Rate Base Int’l Natural Gas Distribution | $1.3B Rate Base Int’l Electricity Operations |
Slide 27: Returns On Equity
REGULATED UTILITIES Returns On Equity 10 YEAR AVERAGE (2013-2022) CU INC. IS COMPRISED OF OUR ALBERTA UTILITY COMPANIES AND ACHIEVES TOP-TIER RETURNS ON EQUITY CU Inc.’s average ROE was 2.2% above the average AUC approved ROE over last 10 years. 10.6% 8.4% 9.1% AUC Approved Alberta Utility Peer CU I
Slide 28: ATCO EnPower Businesses
CANADIAN UTILITIES OVERVIEW ATCO EnPower Businesses Electricity Generation Canada | 256 MW Electricity Generation Australia | 177 MW Electricity Generation Latin America | 47 MW Industrial Water Services Canada | 85,200 m3/day Hydrocarbon Storage Canada | 550,000 m3 Natural Gas Storage Canada | 117
Slide 29: Energy Transition: Leading The Way
CANADIAN UTILITIES OVERVIEW Energy Transition: Leading The Way At ATCO EnPower, we recognize clean energy as being the future and we’re proud to lead the energy transition. ATCO Renewables ATCO Next Energy • Investing in solar and wind infrastructure to build on our • Our proposed world-scale clean
Slide 30: For the standalone Canadian Utilities Limited Investor Presentation
For the standalone Canadian Utilities Limited Investor Presentation and further details please visit: canadianutilities.com 29
Slide 31: Appendix
Appendix 30
Slide 32: Neltume Ports – Further Information
Puerto Angamos (PANG) NELTUME PORTS – FURTHER INFORMATION Prior Year Current Terminal Port % Ownership1 % Ownership2 Country Type Key Cargo Terminal Puerto Arica 50% 50% CHL Container Mixed Terminal Puerto Angamos 40% 50% CHL Multi Copper Terminal Graneles del Norte 40% 50% CHL Dry Bulk Coal/Copper
Slide 33: Legal Notice
Legal Notice Forward-Looking Information Advisory Statements made by company representatives and information provided in this presentation may be considered forward-looking information. Such information includes, but is not limited to, references to: strategic plans, goals and targets, including ATC
Slide 34: Legal Notice
Legal Notice Other Financial Measure Disclosure Advisory This presentation includes references to adjusted earnings, which is a total of segments measure, as that term is defined in NI 52-112. Adjusted earnings are earnings attributable to the Class I non-voting and Class II voting shares after adju
Slide 35: ATCO.com canadianutilities.com Tel: 403.292.7500
ATCO.com canadianutilities.com Tel: 403.292.7500 Investor Relations InvestorRelations@atco.com 5302 Forand Street SW Calgary, Alberta T3E 8B4 Canada 34