Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Investor Presentation (September 2017)
32 slides from Canadian Utilities Limited Class A's investor presentation, September 2017
Slide 1: Investor Presentation September 2017
INVESTOR PRESENTATION SEPTEMBER 2017
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER 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 and unknown risks and uncertainties and therefor
Slide 3: Organizational Structure
ORGANIZATIONAL STRUCTURE 52.8% 100% 100% ATCOenergy CU Inc. GLOBAL BUSINESS UNITS 75.5% 24.5% 100% 100% STRUCTURES & LOGISTICS ELECTRICITY PIPELINES & LIQUIDS A GLOBAL BUSINESS UNIT A GLOBAL BUSINESS UNIT A GLOBAL BUSINESS UNIT Modular Structures Electricity Distribution Natural Gas Distribution Lod
Slide 4: The ATCO Group of Companies
THE ATCO GROUP OF COMPANIES With approximately 7,000 Electricity employees and assets of • 88,000 kms of electric $20 billion, ATCO is a power lines diversified corporation • 18 power plants globally delivering service • 2,480 MW power excellence and innovative generating capacity business solutions
Slide 5: ATCO in Australia
ATCO IN AUSTRALIA Pipelines & Liquids Structures & Logistics ATCO Gas Australia Manufacturing facilities: headquarters Karratha • Perth, Western Australia (193,000 sq. ft.) ATCO Gas Australia service • Brisbane, Queensland area (31,000 sq. ft.) • 14,000 kms of pipelines • 741,000 customers Offices a
Slide 6: Asset Growth
ASSET GROWTH We have doubled in size since 2009 ATCO Canadian Utilities $3.5B $3.5B $6.2B $20B $6.2B $19B $0.3B $10B $9B 2009 Structures Electricity Pipelines 2016 2011 Electricity Pipelines 2016 2009 & Logistics & Liquids 2016 2009 & Liquids 2016 INVESTOR PRESENTATION SEPTEMBER 2017
Slide 7: Regulated Utility Growth
REGULATED UTILITY GROWTH Regulated Normalized Regulated Capital Investment Mid-Year Rate Base Adjusted Earnings $1.1B $12.3B $292M $11.7B $1.5B $10.3B $252M $2.2B $8.9B $225M $198M $7.6B $168M $2.3B $2.2B 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 INVESTOR PRESENTATIO
Slide 8: Growing a High Quality Earnings Base
GROWING A HIGH QUALITY EARNINGS BASE ATCO Canadian Utilities Regulated Adjusted Earnings Regulated Adjusted Earnings 93% 81% 46% 37% 2009 2016 2009 2016 INVESTOR PRESENTATION SEPTEMBER 2017
Slide 9: Continued Dividend Growth
CONTINUED DIVIDEND GROWTH ATCO $0.3275 Canadian Utilities $0.3575 per share per share 24 year track record of Longest track record of increasing common annual dividend increases share dividends* of any Canadian publicly traded company* 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 1
Slide 10: First Half 2017 Adjusted Earnings
FIRST HALF 2017 ADJUSTED EARNINGS ATCO Canadian Utilities $202M $344M $188M $328M H1 2016 H1 2017 H1 2016 H1 2017 INVESTOR PRESENTATION SEPTEMBER 2017
Slide 11: Growing Earnings in 2017
GROWING EARNINGS IN 2017 ATCO Canadian Utilities Global Business Unit Earnings Global Business Unit Earnings $219M $116M $109M $204M $82M $155M $78M $148M $25M $3M H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 Structures & Logistics Electricity Pipelines & Liquids E
Slide 12: Financial Focus for the Future
FINANCIAL FOCUS FOR THE FUTURE We are taking a focused and disciplined approach to purse cost savings and efficiencies in every part of the organization to ensure we deliver the most competitive solution to our customers FINANCIAL PRIORITIES FOR 2017 AND BEYOND OPERATIONAL CONTINUED CAPITAL FINANCIA
Slide 13: Operational Excellence: Structures & Logistics
OPERATIONAL EXCELLENCE: STRUCTURES & LOGISTICS Department of Education & Training 130-student dormitory Manufacturing facility Victoria, Australia Langley, Canada Santiago, Chile Offering complete infrastructure solutions worldwide Diversifying the global Adding projects for workforce Acquiring asse
Slide 14: Continued Capital Investment
CONTINUED CAPITAL INVESTMENT ELECTRIC DISTRIBUTION NATURAL GAS DISTRIBUTION STRUCTURES & LOGISTICS WATER INFRASTRUCTURE ELECTRIC TRANSMISSION NATURAL GAS TRANSMISSION ELECTRICITY GENERATION HYDROCARBON STORAGE REGULATED UTILITY LONG-TERM CONTRACTS INVESTOR PRESENTATION SEPTEMBER 2017
Slide 15: Continued Capital Investment
CONTINUED CAPITAL INVESTMENT $1.8B $1.7B $1.6B Long-term Contracted Capital International Natural Gas Distribution Natural Gas Transmission Natural Gas Distribution Electricity Transmission Electricity Distribution 2017 2018 2019 INVESTOR PRESENTATION SEPTEMBER 2017
Slide 16: Regulated Utility Capital Investment $3.8 Billion (2017–2019)
REGULATED UTILITY CAPITAL INVESTMENT NATURAL GAS NATURAL GAS ELECTRIC DISTRIBUTION ELECTRIC TRANSMISSION DISTRIBUTION TRANSMISSION $3.8 BILLION (2017–2019) INVESTOR PRESENTATION SEPTEMBER 2017
Slide 17: Rate Base Growth
RATE BASE GROWTH Regulated Capital Investment Mid-Year Rate Base $1.3B $1.2B $1.3B $12.3B $11.7B $1.1B $10.3B $1.5B $8.9B $2.2B $7.6B $2.3B $2.2B 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 INVESTOR PRESENTATION SEPTEMBER 2017
Slide 18: Long-Term Contracted Capital Investment $1.3 Billion (2017–2019)
LONG-TERM CONTRACTED CAPITAL INVESTMENT FORT MCMURRAY WEST HYDROCARBON STORAGE DISTRIBUTED GENERATION 500 KV TRANSMISSION $1.3 BILLION (2017–2019) INVESTOR PRESENTATION SEPTEMBER 2017
Slide 19: Alberta PowerLine
ALBERTA POWERLINE Fort McMurray West 500 kV Transmission Project The Alberta Electric System Operator (AESO) undertook a competitive process to develop, design, build, finance, own, operate and maintain the Fort McMurray West 500 kV Transmission Project with a total distance of 500 kms Fort McMurr
Slide 20: Financial Strength: Funding Sources
FINANCIAL STRENGTH: FUNDING SOURCES Canadian Utilities Funding Sources 2011 – 2016 5% 29% 2% 3% 61% Funds Generated Dividend Capital Debt Issues Preferred by Operations Reinvestment Redeployment (net of repayment) Shares (DRIP) INVESTOR PRESENTATION SEPTEMBER 2017
Slide 21: Financial Strength: Balance Sheet
FINANCIAL STRENGTH: BALANCE SHEET 11% • Strong financial position supports access to capital 52% 37% • “A-” credit rating • $3 billion of credit facilities, of which $2.2 billion is available Debt (net of cash) Preferred Shares Equity INVESTOR PRESENTATION SEPTEMBER 2017
Slide 22: Summary
SUMMARY GROWING A HIGH CONTINUED FUTURE CAPITAL FINANCIAL QUALITY EARNINGS DIVIDEND GROWTH INVESTMENT STRENGTH BASE INVESTOR PRESENTATION SEPTEMBER 2017
Slide 23: Appendix
APPENDIX
Slide 24: Structures & Logistics
STRUCTURES & LOGISTICS We offer workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management 7 manufacturing plants globally Nearly 1,000,000 sq ft of manufacturing space Subsidiary: Sustainable Communities INVESTOR PRESENTATION
Slide 25: Electricity Distribution & Transmission
ELECTRICITY DISTRIBUTION & TRANSMISSION We build, own and operate electrical distribution and transmission facilities 224,000 farm, business and residential customers in 245 Alberta communities Approximately 12,000 km of transmission lines and 72,000 km of distribution lines Subsidiaries: AT
Slide 26: Electricity Generation
ELECTRICITY GENERATION We have an ownership position in 16 power generation plants in Alberta, British Columbia, Saskatchewan, Ontario and Mexico Electricity Market Exposure Portfolio: 1,570 MW Contract (68%) 734 MW Merchant (32%) INVESTOR PRESENTATION SEPTEMBER 2017
Slide 27: Electricity Generation
ELECTRICITY GENERATION We operate two power generation facilities with a combined capacity share of 176 MW Provides energy infrastructure for thousands of public sector, domestic and industrial clients across Australia Electricity Market Exposure Portfolio: 176 MW Contract (100%) INVESTOR PRES
Slide 28: Natural Gas Distribution
NATURAL GAS DISTRIBUTION We build, own and operate natural gas distribution facilities in Alberta Alberta’s largest natural gas distribution company Serves more than 1.1 million customers in nearly 300 Alberta communities We build, maintain, and operate 41,000 km of natural gas distribution pi
Slide 29: Natural Gas Transmission
NATURAL GAS TRANSMISSION We build, own and operate key high-pressure natural gas transmission facilities in Alberta Transports clean, efficient energy from producers and other pipelines to utilities, power generators and major industries Owns and operates 9,400 km of pipeline Delivers a peak o
Slide 30: Storage & Industrial Water
STORAGE & INDUSTRIAL WATER We build, own and operate non- regulated industrial water, natural gas storage, hydrocarbon storage, and NGL related infrastructure 85,200 m3/day water infrastructure capacity 200,000 m3 hydrocarbon storage capacity 52 PJ natural gas storage capacity ~ 300 km pipel
Slide 31: International Natural Gas Distribution
INTERNATIONAL NATURAL GAS DISTRIBUTION We provide safe and reliable natural gas service to the Perth metropolitan area and the wider Western Australian community Approximately 741,000 customers 14,000 km of gas distribution pipelines INVESTOR PRESENTATION SEPTEMBER 2017
Slide 32: Investor Relations Contact
www.ATCO.com www.canadianutilities.com Tel: 403.292.7500 Investor Relations 1500, 909 11 Avenue SW Calgary, Alberta T2R 1N6 Canada
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