Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Investor Presentation (August 2022)
43 slides from Canadian Utilities Limited Class A's investor presentation, August 2022
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 Canadian Utilities Limited
Slide 2: Canadian Utilities Limited Investor Presentation
CLI CANADIAN UTILITIES LIMITED ME 4) ATCO company Canadian Utilities Limited Investor | Presentation
Slide 3: Agenda
INVESTOR PRESENTATION Agenda Legal Notice 3 Executive Committee 4 Financial Overview 5 Canadian Utilities Overview 10 Environment, Sustainability and Governance 15 Utilities 19 Energy Infrastructure 25 Retail Energy 37 Appendices 38 Canadian Utilities Investor Presentation
Slide 4: Legal Notice
INVESTOR PRESENTATION Legal Notice Forward-Looking Information Statements made by representatives for ATCO Ltd. and Canadian Utilities Limited and information provided in this presentation may be considered forward-looking statements. By their nature, such statements are subject to numerous known an
Slide 5: Executive Committee
EXECUTIVE COMMITTEE Nancy C. Southern Brian P. Shkrobot Melanie L. Bayley M. George Constantinescu Chair & Chief Executive Officer, Executive Vice President President, ATCO Electric Senior Vice President Canadian Utilities Limited & Chief Financial Officer & Chief Transformation Officer Bob J. Myles
Slide 6: Financial Strength
2016 FINANCIAL STRENGTH —_—_—_—_—_—_—___——— Alberta wildfires Canadian Utilities Limited com LONG-TERM TRACK RECORD OF ADJUSTED EARNINGS GROWTH gay onan gowns THROUGH VARIOUS GLOBAL MACRO-ECONOMIC CYCLES 2008- “tee ‘ $586 MILLION OF ADJUSTED EARNINGS IN 2021 rege as 80 81 82 83 84 85 86 87 88 89 90
Slide 7: Financial Strength
FINANCIAL STRENGTH Canadian Utilities Limited LONGEST TRACK RECORD OF ANNUAL DIVIDEND INCREASES OF ANY CANADIAN PUBLICLY TRADED COMPANY 50 YEARS OF ANNUAL DIVIDEND INCREASES* DIVIDENDS DECLARED OF $1.76 PER SHARE IN 2021 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 9
Slide 8: Canadian Utilities Limited
CANADIAN UTILITIES LIMITED Total 2021 Adjusted Earnings’ $28M Energy Infrastructure $44M Luma Utilities provide strong foundational earnings $591M Utilities ex. LUMA 41. Additional information regarding these total of segments measures is provided in the Other Financial and Non-GAAP Measures section
Slide 9: Debt Maturity Profile: 20-Year Outlook
CANADIAN UTILITIES Debt Maturity Profile: 20-Year Outlook WELL-DISTRIBUTED AND EASILY MANAGEABLE DEBT MATURITY PROFILES 2022 2023 2024 ad 2028 aa 2034 2035 2036 2037 2038 2039 o 2041 =CUInc, =CU Canadian Utilities Investor Presentation
Slide 10: Strong Credit Ratings
STRONG CREDIT RATINGS Cl J CANADIAN UTILITIES Gu LIMITED ‘An arco Company S&P Global Ratings FitchRatings Canadian Utilities Investor Presentation
Slide 11: Canadian Utilities Limited Overview
Canadian Utilities Limited Overview For recent filings and further details please visit: www.canadianutilities.;com C CANADIAN UTILITIES LIMITED Mg 4 ATCO company 10
Slide 12: Canadian Utilities Limited
CANADIAN UTILITIES OVERVIEW Canadian Utilities Limited’ Canadian Utilities is an ATCO company with approximately 4,800 employees and assets of $21 billion. We are publicly traded on the Toronto Stock Exchange under the tickers CU (non-voting) and CU.X (voting). As a diversified global energy infrast
Slide 13: Organizational Structure
CANADIAN UTILITIES OVERVIEW Organizational Structure C CANADIAN UTILITIES Ms LIMITED Canadian Utilities Investor Presentation
Slide 14: Strategy
CANADIAN UTILITIES OVERVIEW Strategy o Build on our core utility business and invest in activities aimed at advancing the energy transition and ensuring long-term resiliency o Optimize our energy infrastructure assets and add new growth platforms o Leverage our expertise in key markets, including Al
Slide 15: Commitment to Sustainability
CANADIAN UTILITIES OVERVIEW Canadian Utilities Commitment to Sustainability For Canadian Utilities, sustainability is more than an aspiration; it is interwoven into our strategy, our day-to-day operations, the products and services we provide, and the fabric of our people. It manifests across our bu
Slide 16: Leader in ESG & Sustainability
OUR COMMITMENT TO ESG Leader in ESG & Sustainability 2021 HIGHLIGHTS 15% DECREASE Direct GHG Emissions in 2021 96% REMOVAL GHG Emissions from our portfolio since 2005 2030 TARGETS LEADER HEALTH & SAFETY Practices and Performance 40% INCREASING Net Economic Benefits to Indigenous Partners by 2030 2Mt
Slide 17: Meeting Changing Consumer Demands
CANADIAN UTILITIES OVERVIEW Meeting Changing Consumer Demands Decarbonization os a Digitalization Canadian Utilities Investor Presentation 16
Slide 18: Investing In Our Utilities Future
CANADIAN UTILITIES OVERVIEW Investing In Our Utilities Future We are answering the call for climate accountability while ensuring the sustainability, affordability, safety, and reliability of our energy system. DIGITIZATION OF THE GRID * Advanced Metering Infrastructure (AMI) for real-time data * Au
Slide 19: Energy Transition: Leading The Way
CANADIAN UTILITIES OVERVIEW Energy Transition: Leading The Way We recognize clean energy as being the future and we're proud to lead the energy transition. OUR ENERGY TRANSITION STRATEGY IS BROKEN DOWN INTO THREE KEY COMPONENTS: Renewable Generation Clean Fuels Energy Storage Investing in Solar Inst
Slide 20: Regulated Utilities
CANADIAN UTILITIES OVERVIEW Regulated Utilities i" *2021 estimated Mid Year Rate Base included in 2021 Management's Discussion and Analysis. Canadian Utilities Investor Presentation 19
Slide 21: Operational Excellence
REGULATED UTILITIES Operational Excellence OVER THE PAST SIX YEARS, WE HAVE REDUCED OUR OPERATIONS AND MAINTENANCE COSTS: $17 per inh $19 Pustomer" ELECTRICITY DISTRIBUTION NATURAL GAS DISTRIBUTION OPERATIONAL EXCELLENCE AND LOWER COSTS BENEFIT OUR CUSTOMERS AND SHARE OWNERS (ree 1. Adjusted for inf
Slide 22: CLI
CLI LINC An ATCO Company 10 YEAR AVERAGE (2012-2021) 10.6% AUC Approved Alberta Utility Peer CU Inc. Average Average Canadian Utilities Investor Presentation
Slide 23: 3-year Capital Investment Plan
REGULATED UTILITIES 3-year Capital Investment Plan EXPECTED MID-YEAR RATE BASE GROWTH (C$ BILLIONS) $14.5B $15.4B a $1.28 2% $2.3B Growth per year $2.9B 2021 2024E mElectricity Transmission m Electricity Distribution m= Natural Gas Distribution Natural Gas Transmission # Int'l Natural Gas Transmissi
Slide 24: JUNE 22, 2020 JUNE 1, 2021
JUNE 22, 2020 JUNE 1, 2021
Slide 25: Utilities International: Key Contract Terms & Objectives
UTILITIES International Key Contract Terms & Objectives 2020 | Preparatory work to enable full transition of operations to LUMA o LUMA is paid a fixed transition fee o Costs incurred by LUMA for purposes of front- end transition are reimbursable Completed June 1, 2021 FRONT END TRANSITION PERIOD SUP
Slide 26: Energy Infrastructure Operating Businesses
CANADIAN UTILITIES OVERVIEW Energy Infrastructure Operating Businesses’ Electricity Generation Canada | 24 MW Electricity Generation Latin America | 47 MW Natural Gas Storage Canada| 101 PJ 1, Above figures represent capacity share in noted assets where partnerships exist. Canadian Utilities Investo
Slide 27: Electricity Generation
ENERGY INFRASTRUCTURE BUSINESSES Electricity Generation KGRTSIAMAERIGR HIGHLY-CONTRACTED PORTFOLIO capacity © RUN-OF-RivER HYDRO “WARE(MW) 1 OLDMAN RIVER 2 Lene-Term 2 VERACRUZ 3s ea x e 89% Merchant @ NATURAL GAS ontractes 28 MW 3 SAN LUIS POTOSI 2 220 MW a eaRRATHA &% 5 OSBORNE 90 @ SOLAR 6 6 EL R
Slide 28: Why Solar?
RENEWABLE GENERATION Why Solar? We continue to pursue solar opportunities as we grow our renewables portfolio. Solar encapsulates our sustainability commitments and aligns with our business strategies. CLIMATE CHANGE & ENVIRONMENT STEWARDSHIP As we look to reduce the carbon intensity of our electric
Slide 29: Solar Partnerships
SOLAR PARTNERSHIPS Sree Vyah (the Old Crow Solar Project) o Completion of Canada's most northerly off-grid solar project on August 23, 2021. o First-of-its-kind 25-year Electricity Purchase Agreement with ATCO Electric Yukon is a model for effective collaboration in the utilities sector. o Vuntut Gw
Slide 30: Empress Solar Project
SOLAR PROJECT Empress Solar Project Empress, Alberta o Acquired the development rights for a 39 MW photovoltaic solar facility near Empress, Alberta (the “Empress Solar Project"). o Electricity from the Empress Solar Project may be sold through a Power Purchase Agreement with uncontracted electricit
Slide 31: Barlow & Deerfoot Solar Projects
SOLAR PROJECTS Barlow & Deerfoot o Canadian Utilities Limited acquired the rights to build two solar installations in Calgary, from DP Energy, a privately held energy developer. o Once completed, the (near Barlow Trail and 114 Avenue SE) and (114 Avenue and 52 Street SE) solar projects will be the l
Slide 32: Storage & Industrial Water
ENERGY INFRASTRUCTURE BUSINESSES Storage & Industrial Water We build, own, and operate energy infrastructure assets across Alberta and the Northwest Territories o Integrated water services including pipeline transportation, storage, water treatment, recycling, and disposal to a number of our industr
Slide 33: Hydrogen & Renewable Natural Gas
Slide 34: Why Hydrogen?
CLEAN FUELS Why Hydrogen? o Weare committed to promoting a more environmentally-sustainable future by providing clean, reliable and affordable energy. o Itcan play a role in affordably decarbonizing the production of heat, particularly in our cold Canadian climate. o Alberta is already a leader in h
Slide 35: Suncor Joint Venture Hydrogen Project
HYDROGEN PROJECT SUNCOR JOINT VENTURE Proposed World-Scale Clean Hydrogen JV Project with Suncor - in Alberta o ATCO/Suncor partnership has received welcome support from Government of Canada and Government of Alberta. o Collaboration between governments and businesses across sectors is critical to p
Slide 36: Clean Energy Innovation Park
HYDROGEN PROJECT Clean Energy Innovation Park ° Western Australia © vecescux news $Y o Australia's first commercial scale \\ oe hydrogen production supply . C se 4 chain. > ® cs yt a es TRANSPORTATION o Approved for $28.7M in funding ‘tomes of sasase% a from the Australian Renewable Qt vate on = Ene
Slide 37: Two Hills RNG Project
RNG PROJECT Two Hills o Canadian Utilities Limited, has partnered with Future Fuel Ltd. to build and operate the “Two Hills" RNG facility in Alberta. o ATCO's first commercial RNG production facility and a strategic investment in the clean fuels leg of our Energy Transition strategy. o Full commerci
Slide 38: Retail Energy
CANADIAN UTILITIES OVERVIEW Retail Energy RETAIL IS COMPRISED OF THREE SEGMENTS: Home Energy Business Energy Large Commercial Energy Cooking Classes & Programs Events & Catering BFK Café Home Products Repair & Maintenance Services Home Management Advice Canadian Utilities Investor Presentation 37
Slide 39: Appendix
Appendix C CANADIAN UTILITIES LIMITED Mm 4 ATCO company 38
Slide 40: Utilities: Electricity Distribution & Transmission
Utilities Electricity Distribution & Transmission We build, own and operate elect distribution and transmission faci o Approximately 11,000 km of transmission lines, in addition to delivering power to, and operating, 3,500 km of distribution lines owned by Rural Electrification Associations, and 60,
Slide 41: Natural Gas Distribution & Transmission
Natural Gas Distribution & Transmission We build, own, and operate natural gas ALBERTA [)} AREA SERVED BY NATURAL GAS DISTRIBUTION distribution facilities in Alberta o Alberta's largest natural gas distribution company o Serves approximately 1.3 million customers in nearly 300 Alberta communities |
Slide 42: Australia Utility
Australia Utility We provide safe and reliable natural gas service to the Perth metropolitan area and the wider Western Australian community o 14,000 km of natural gas distribution pipelines and associated infrastructure o Serves 18 communities and approximately 786,000 customers NORTHERN TERRITORIE
Slide 43: Canadian Utilities Limited Contact
_ CANADIAN UTILITIES LIMITED Fe An ATCO Company a 7 ®www.canadianutilities.com ‘ Tel: 403.292.7500 3 x ™, » A stor Relations “invest orRelations@at 5300 ilinng Street SW Calgary, Alberta T3E 8B4 _ Canada
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