Uil Co. Ltd. · KRX:049520
Uil — Q1 2009 Earnings Presentation
19 slides from Uil's earnings presentation, May 5, 2009
Slide 1: 1Q 2009 Earnings Conference Call
EXHIBIT 99.1 1Q 2009 Earnings Conference Call May 6, 2009 - transforming investment into future value 1 1Q ’09 Earnings
Slide 2: Important Note to Investors
Important Note to Investors Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management’s intentions, plans, beliefs, expectati
Slide 3: UIL Holdings 1Q 2009 Earnings Call Discussion Topics
UIL Holdings 1Q 2009 Earnings Call Discussion Topics Ш 1Q 2009 Earnings Summary Ш 2009 Strategic Initiatives Ш Capital Expenditures & Rate Base Ш GenConn Update Ш Rate Case Update Ш 1Q 2009 Earnings Detail Ш Financing Plans Ш 2009 Earnings Guidance 3 1Q ’09 Earnings
Slide 4: 1Q 2009 Financial Results - Summary
1Q 2009 Financial Results - Summary 1Q ’09 earnings from continuing operations of $12.0 million, or $0.48 per share, compared to $6.6 million, or $0.26 per share in 1Q ’08 Ш Strong first quarter performance » Significant O&M cuts » First quarter implementing February 4, 2009 distribution rate case d
Slide 5: 2009 Strategic Initiatives
2009 Strategic Initiatives Previously announced - plan for $75-$100 million of equity in 2009 Ш Universal shelf registration in place on March 11, 2009 On track with 2009 revised capital expenditure plan Reported $1.9 billion* 10-year T&D capital expenditure program in November 2008 Ш Program is und
Slide 6: 2009 Capital Expenditure Projections
2009 Capital Expenditure Projections Types of Projects Deferred: Current Capacity $ millions Estimate (1) Ш New substations Distribution $50 - $65 Ш Load relief projects Ш Substation rebuilds Transmission $22 - $28 Total 2009 Projected Infrastructure Capital $75 - - Expenditures $90 Ш Substation rem
Slide 7: Average Rate Base 2007-2009
Average Rate Base 2007-2009 Stranded costs - fully amortized by 2013 Note: 2009 average rate base projections based on the current 2009 capital expenditure estimate 7 1Q ’09 Earnings
Slide 8: GenConn Energy - Peaking Generation
GenConn Energy - Peaking Generation Joint Venture between UI and NRG Project Development Highlights Regulated COS approach Ш ROE, lifetime floor - - 9.75% Locations Devon & Middletown Ш 50/50 debt/equity Approximate Cost $400 Million* Ш 30-year O&M costs reviewed annually Financing Attained April 27
Slide 9: Financings for GenConn
Financings for GenConn On April 27, 2009 - GenConn, UI & NRG closed on $534 million of project financing Ш UI obtained EBL in the amount of $121.5 million, the proceeds of which will fund » EBL its commitments will be repaid as a commercial upon 50% owner of GenConn operation 4Devon, June 2010 4Midd
Slide 10: Rate Case Update
Rate Case Update On February 18, 2009 - UI filed request for reconsideration with the DPUC Ш Clarification on technical issues related to the interest rate tracking mechanism, revenue decoupling provision & other matters Ш The DPUC reopened the proceeding to consider UI’s request Ш On April 22, 2009
Slide 11: 2009 T&D Blended Allowed ROE of 10.1% - 10.2%
2009 T&D Blended Allowed ROE of 10.1% - 10.2% 11 1Q ’09 Earnings
Slide 12: 1Q 2009 Financial Results
1Q 2009 Financial Results Quarter Ended March 31, 2009 2008 Net Income (Loss) ($M) UI Distribution, CTA and Other $ 6.8 $ 2.3 Transmission 6.1 4.8 Total UI Net Income $ 12.9 $ 7.1 UIL Corporate (0.8) (0.4) Total Continuing Operations $ 12.1 $ 6.7 Discontinued Operations - Xcelecom (0.1) (0.1) Total
Slide 13: 1Q 2009 Earnings Details Compared to the Same Period in 2008
1Q 2009 Earnings Details Compared to the Same Period in 2008 Ш 1Q reflects two months of operation of the Revenue EPS Impacts decoupling Distribution rates & $ 0.10 mechanism, $0.03 per share pricing Decoupling 0.03 Ш Uncollectible expense - $0.02 per share attributable Other adjustment 0.01 to Sale
Slide 14: 1Q 2009 Compared to 1Q 2008 - cont.
1Q 2009 Compared to 1Q 2008 - cont. Transmission - - $0.24 per share vs. $0.19 per share in 2008, $0.05 per share increase Ш Earning on: » Higher rate base » Allowed return » Increased equity in the capital structure Ш 1Q ’08 one-time of $0.014 per share due to FERC order increasing 2007 base ROE by
Slide 15: Financing Plans
Financing Plans Debt Ш Successfully remarketed $103.5 million in tax-exempt Pollution Control Revenue Bonds in 1Q ‘09 Ш Refinancing $51 million maturing debt in 2009 Ш DPUC approved an application to remarket $92 million outstanding tax-exempt bonds - redeem & reissue without insurance » $27.5 milli
Slide 16: Financing Plans - cont.
Financing Plans - cont. Liquidity Ш UIL & UI have a revolving credit agreement with a group of banks that extends to December 22, 2011 » The borrowing limit for UI is $175 million, with $50 million of the limit available for UIL » UI had $160 million outstanding as of March 31, 2009 » $122 million o
Slide 17: 2009 Earnings Per Share Guidance as of May 6, 2009
2009 Earnings Per Share Guidance as of May 6, 2009 2008 1Q 2009 The United Illuminating Company $2.03 $0.51 $1.90 - $2.10 Distribution, CTA & Other 1.09 0.27 0.90 - Transmission 0.94 0.24 1.10- 0.95 Corporate 1.05- - (0.12) (0.07) Total Continuing Operations $1.93 $0.48 $1.80 - $2.00 (0.01) - Total
Slide 18: Q&A
Q&A 18 1Q ’09 Earnings
Slide 19: Slide 19