Slide 1: 2016 Fourth Quarter Financial & Strategic Update
2016 Fourth Quarter Financial & Strategic Update Q4 Earnings Call 17 February 2017 Al Monaco, President & CEO John Whelen, Executive Vice President & CFO
Slide 2: Legal Notice
Legal Notice This presentation includes certain forward looking statements and information (FLI) to provide shareholders of Enbridge Inc. (“Enbridge” or the “Company”) and Enbridge Income Fund Holdings Inc. (“ENF”) and potential investors with information about Enbridge, ENF and their respective sub
Slide 3: Agenda
Agenda • 2016 year in review • Business update • Financial results • Spectra transaction status • Investor outreach plan SLIDE 3
Slide 4: Strong 2016 Positions Us Well for 2017 and Beyond
Strong 2016 Positions Us Well for 2017 and Beyond • Delivered on #1 priority of safety and operational reliability • Solid financial results in a challenging environment • Liquids business remains strong into 2017 and beyond • $27B growth capital program on track • New secured growth - Hohe See Wind
Slide 5: 2016 Financial Highlights
2016 Financial Highlights Overcame challenging environment to deliver on 2016 guidance Adjusted EBIT1 ACFFO1 Adjusted Earnings1 $ Millions $ Millions, except per share $ Millions, except per share +$74* amounts amounts $4,662 +$74* $4,156 $3,713 +$26* $2,078 $3,154 $1,866 2015 2016 2015 2016 2015 20
Slide 6: Record Mainline Throughput in 2016
Record Mainline Throughput in 2016 System expected to remain near capacity through 2019 Ex-Western Canada Throughput & Capacity kbpd L3R restores line to original 3,500 capacity Line 67 Line 67 horsepower horsepower expansion to 800 kbpd 3,000 expansion to 570 kbpd 2,500 2,000 1,500 1,000 500 - 2014
Slide 7: Liquids Pipelines - Strategic and Competitive Position
Liquids Pipelines - Strategic and Competitive Position Production growth with limited ❶ alternative takeaway capacity ❹ ~400 kbpd of low risk, highly executable, phased expansion Illustrative timing of incremental capacity expansions (kbpd) 400 ❷Predictable, stable tolls IJT Benchmark Toll $6 0 2019
Slide 8: Current Stand Alone Growth Capital Program (2015 – 2019)
Current Stand Alone Growth Capital Program (2015 – 2019) Project execution advancing well $27B Projects in Service1 Capital Budget Commentary 2015 15 Projects Placed in Service $7.7B 1% under budget 2016 6 Projects Placed in Service $2.1B 11% over budget $15B Projects in Execution Projects in Execut
Slide 9: Project Status Update
Project Status Update Regional Oil Sands Line 3 Replacement Bakken Pipeline System Hohe See Wind Optimization Program Wood Buffalo Extension • In service date set for • Received Government of • Closed on acquisition on • Construction to begin December 2017 Canada approval February 15, 2017 August 20
Slide 10: Context for Renewable Power Business
Context for Renewable Power Business Renewables platform aligns with Enbridge’s strategy and value proposition Strategic Fit Renewable Power Generation Footprint (Net MWs, Operational Assets) • Source of long-term growth 2000 • Competitive with other fuels • Development and operational expertise Val
Slide 11: Hohe See Wind Project
Hohe See Wind Project Attractive investment in Offshore Wind project with strong returns Offshore Wind Fundamentals • One of the fastest growing global energy segments • Strong commercial underpinnings Hohe See Expansion 112 MWs • Well developed supply chain Hohe See 497 MWs Hohe See Investment Capa
Slide 12: Q4 and FY 2016 Segmented Adjusted EBIT Variance
Q4 and FY 2016 Segmented Adjusted EBIT* Variance Delivered on 2016 guidance range of $4.4B to $4.8B driven by strong performance across our lines of business ADJUSTED EBIT* ($ MILLIONS) Q4 FY 2015 Consolidated Adjusted EBIT 1,118 4,156 Liquids Pipelines +62 +574 Gas Distribution +22 +48 Gas Pipeline
Slide 13: Q4 and FY 2016 ACFFO Variance
Q4 and FY 2016 ACFFO* Variance Delivered on 2016 guidance range of $3.80 to $4.50 driven by strong, sustainable cash generating performance from assets and investments ($ MILLIONS) Q4 FY 2015 ACFFO* 876 3,154 Consolidated Adjusted EBIT* +80 +506 Depreciation and amortization +23 +216 Maintenance cap
Slide 14: ENF & Fund Group Q4 and FY Results
ENF & Fund Group Q4 and FY Results Delivered on Fund Group ACFFO guidance of $1.75 to $2.05B ($ MILLIONS, Except per share amounts) Q4 2016 Q4 Variance FY 2016 FY Variance EIPLP ACFFO* 543 +34 2,051 +1,065 Fund and ECT operating, administrative and interest expense (52) +1 (214) (62) Fund Group ACFF
Slide 15: ENF & Fund Group 2017 Guidance
ENF & Fund Group 2017 Guidance Continued strong ACFFO and dividend growth ENF Dividend Per Share Fund Group ACFFO ACFFO GROWTH DRIVERS $2.50 $2.1B Liquids Pipelines ++ $1.9B Gas Pipelines ~ $2.05 $2.00 Green Power ~ $1.50 OTHER ACFFO ASSUMPTIONS Maintenance Capital $90 – 140M $1.00 Current Income Ta
Slide 16: Strong Balance Sheet and Financial Flexibility
Strong Balance Sheet and Financial Flexibility $5.0B of equity equivalent capital raised through public markets in 2016; Asset monetizations on track to meet or exceed $2B target 2016 Capital Markets Funding $2B Near Term Asset Monetization Canadian dollars $ billions $ billions (nominal) (CAD)3 Pri
Slide 17: The Premier North American Energy Infrastructure Asset Base
The Premier North American Energy Infrastructure Asset Base Spanning Key Supply Basins and Demand Markets • $165B enterprise value • Highest quality liquids and natural gas franchises • Low-risk business model • Strong balance sheet; access to capital • $26B combined secured growth + $48B developmen
Slide 18: Enbridge/Spectra Combination - Transaction Timeline
Enbridge/Spectra Combination - Transaction Timeline On track for expected Q1 2017 close 1. Shareholder Approval Completed transaction milestone In progress transaction milestone Enbridge Shareholder Vote Spectra Shareholder Vote > 98% FOR Announcement 2. Regulatory Clearance Transport Canada Ont
Slide 19: Enbridge & Spectra Energy - Integration Planning
Enbridge & Spectra Energy - Integration Planning Actively preparing for operational integration; Confident synergy targets can be achieved Joint integration planning Forecast annual run rate synergies by 2019 • Operationally ready for seamless Day 1 • Focus on ‘First 100 Days’ • Robust longer-term i
Slide 20: Investor Outreach Plan
Investor Outreach Plan Fulsome information updates post-closing First Quarter 2017 Second Quarter 2017 Fourth Quarter 2017 • Transaction close • Q1 Results (May) • Q3 Results - Dividend announcement • Enbridge Days investor conferences - 2017 guidance - Roll-out of strategic plan • Post-close invest
Slide 21: Q&A
Q&A