Fortis Inc. · TSX:FTS
Fortis — Investor Presentation (January 2025)
14 slides from Fortis's investor presentation, January 2025
Slide 1: Retail Presentation
RETAIL PRESENTATION January 2025
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: Fortis at a Glance
FORTIS AT A GLANCE TSX/NYSE: FTS 93% transmission and distribution assets 10 regulated utilities in Canada, U.S., and Caribbean 3.5 million electricity and gas customers 9,600 dedicated employees 99% Regulated utility assets $5.2 billion 2025F Capital expenditures $40.7 billion 2025F rate base ~8% a
Slide 4: Our Vision & Strategy
OUR VISION & STRATEGY A Premium North American Utility Delivering a Cleaner Energy Future SUSTAINABLE GROWTH • Operational Excellence • Financial Strength • Diversified Regulated Portfolio • Local Business Model • Strong Governance 4
Slide 5: Reducing Carbon Emissions
REDUCING CARBON EMISSIONS Our planned trajectory to net-zero i 9, Achieved @£22 ————— Actual GHG Emissions Reduction GHG Emissions Reduction Since 2019 ————_ Forecast GHG Emissions Reduction 50% GHG Emissions Reduction Target Illustrative Emissions Reduction 2023 Coal-Free Generation Mix 75% GHG Emi
Slide 6: Five-Year Plan Highlights
FIVE-YEAR PLAN HIGHLIGHTS Capital Rate Funding Dividend Expenditures Base Plan Growth $26B 6.5% >12% 4-6% 2025-2029 2024-2029 Average Cash Flow Annual Dividend Growth Capital Plan CAGR To Debt Metrics Guidance Extended to 2029 $1B ~$14B ~59% ~4% Increase over Increase to $53B Funded by Cash From Q4
Slide 7: Key Transmission Investments
KEY TRANSMISSION INVESTMENTS MISO LRTP Tranche 2.1 • In September 2024, MISO released its final Tranche 2.1 portfolio of projects which includes 24 projects totaling US$21.8B • At least US$3B of capital investment expected at ITC for projects in Michigan and Minnesota where ROFRs are in effect; majo
Slide 8: Opportunities to Expand and Extend Growth Beyond the Plan
OPPORTUNITIES TO EXPAND AND EXTEND GROWTH BEYOND THE PLAN • MISO LRTP Tranche 2.1 • 2023 IRP • Tilbury LNG Expansion • Transmission Investments At least US$3B expected in Investment opportunity of Marine bunkering Supporting delivery of offshore Michigan and Minnesota where ~US$2.5-$5.0B through 203
Slide 9: Long Capex Runway
LONG CAPEX RUNWAY Responding to stakeholder expectations and capitalizing on opportunities to expand & extend growth Connect more renewable Replace aging assets to generation to the grid maintain reliability Build more renewable Invest in technology to ensure C02 generation and provide security and
Slide 10: Balanced Approach to Funding Growth
BALANCED APPROACH TO FUNDING GROWTH $26B Key Highlights Capital Plan • Funding plan largely consistent with 2025-2029 Equity prior year plan Corporation’s DRIP at current participation levels(1) 11% and employee share purchase plans • Equity funded through DRIP program 30% Net Debt • $500M ATM progr
Slide 11: Recent Regulatory Activity
RECENT REGULATORY ACTIVITY MISO Base ROE Transmission ROFR ACC Generic 2025 General Regulatory Lag Docket Rate Application • In 2022, the U.S. Court of Appeals for the D.C. • In 2023, the Iowa District Court ruled that the • In December 2024, a formula rate plan policy • In August 2024, Central Huds
Slide 12: Three-Year Look Back
THREE-YEAR LOOK BACK Adjusted EPS & Rate Base Adjusted Dividend Payout Ratio 41.5 3.3 $3.09 $37.0B 3.1 115% 36.5 $34.1B $30.5B $31.1B 2.9 $2.78 105% 31.5 $2.59 2.7 $2.57 26.5 95% 2.5 21.5 2.3 85% 16.5 2.1 79% 78% 75% 74% 75% 11.5 1.9 6.5 65% 1.7 1.5 1.5 55% 2020 2021 2022 2023 2020 2021 2022 2023 Ad
Slide 13: Dividend Guidance Supported by Long-Term Growth Strategy
DIVIDEND GUIDANCE SUPPORTED BY LONG-TERM GROWTH STRATEGY ~4% Increase in Q4 2024 Dividend 51 Years of Consecutive Increases in Dividends Paid 4-6% Annual Dividend Growth Guidance through 2029 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 24 13 13 13
Slide 14: Why Invest in Fortis?
WHY INVEST IN FORTIS? SUSTAINABLE GROWTH Focused on Executing Strong Robust Transparent Rate Base Growth Transmission Funding Plan Investment Pipeline Cleaner 4-6% Annual Investment-Grade Energy Transition Dividend Growth Credit Ratings LOW-RISK Safe, Well-Run Utilities Regulatory & Constructive Str