Atco Ltd. Class I · TSX:ACO.X
Atco Ltd. Class I — Scotiabank Energy Infrastructure Conference 2016
34 slides from Atco Ltd. Class I's conference presentation, November 2016
Slide 1: Investor Presentation November 2016
Investor Presentation November 2016 1
Slide 2: Slide 2
Slide 3: Legal Disclaimer
LEGAL DISCLAIMER Statements made by representatives for ATCO Ltd. 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 therefore actual results may differ mat
Slide 4: The ATCO Group of Companies
THE ATCO GROUP OF COMPANIES With approximately 7,000 employees and assets of $20 billion, ATCO is a diversified global corporation delivering service excellence and innovative business solutions in: Structures & Logistics Electricity Pipelines & Liquids • Operations on 4 continents • 87,000 kms of e
Slide 5: Outlook
OUTLOOK ATCO is taking a focused and disciplined approach to pursue cost savings and efficiencies in every part of the organization to ensure we deliver the most competitive solutions to our customers CORPORATE PRIORITIES FOR 2016 AND BEYOND OPERATIONAL CONTINUED CAPITAL CUSTOMER FOCUSED INNOVATION
Slide 6: Growing a High Quality Earnings Base
GROWING A HIGH QUALITY EARNINGS BASE 2010 TOTAL ASSETS 2016E TOTAL ASSETS $20B Regulated Utility Assets Non-Regulated Assets • Assets have grown at a remarkable pace driven by $10.5 billion investment in our Regulated Utilities • We have maintained our financial strength during this period of high R
Slide 7: Growing a High Quality Earnings Base
GROWING A HIGH QUALITY EARNINGS BASE
Slide 8: Growing a High Quality Earnings Base
GROWING A HIGH QUALITY EARNINGS BASE
Slide 9: Continued Dividend Growth
CONTINUED DIVIDEND GROWTH $1.14 PER SHARE ATCO: 23 year track record of increasing ry common share — dividends PTT | = 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 8 4 15 16 ATCO
Slide 10: Continued Dividend Growth
CONTINUED DIVIDEND GROWTH Canadian Utilities: $1.30 PER SHARE 44 year track record of increasing common share dividends 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 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 ATCO
Slide 11: Growing Earnings
GROWING EARNINGS ATCO Adjusted Earnings CU Adjusted Earnings Realizing Positive Earnings Impacts from the 2015 Restructuring
Slide 12: Strategic Growth Platforms
STRATEGIC GROWTH PLATFORMS GROWING REGULATED SUSTAINABLE & LONG TERM UTILITY DIVERSIFIED CONTRACTS CAPITAL EARNINGS INVESTMENT
Slide 13: Future Regulated Capital Investments
FUTURE REGULATED CAPITAL INVESTMENTS
Slide 14: Future Long-Term Contracted Capital Investment
FUTURE LONG-TERM CONTRACTED CAPITAL INVESTMENT
Slide 15: Utilities – Regulatory Update
UTILITIES – REGULATORY UPDATE Regulatory Development Summary Timing GCOC ROE remains at 8.3% in 2016 and increases to AUC decision received in 8.5% in 2017; Equity thickness set at 37% for Q3/16 ATCO Alberta Utilities PBR 2 Main items for decision include: Length of term AUC decision expected in (be
Slide 16: Global Operations: Structures & Logistics
GLOBAL OPERATIONS: STRUCTURES & LOGISTICS Offering complete infrastructure solutions worldwide • Adding projects for workforce housing accommodations and modular buildings • Improving the profitability of our Lodging business • Acquiring assets and expanding geographically • Implementing businesswid
Slide 17: Maintaining Financial Strength: Balance Sheet
MAINTAINING FINANCIAL STRENGTH: BALANCE SHEET Credit Rating Ample Liquidity Cash $0.8B $1.6B FGO Lines of Credit $3.4B Strong financial position supports access to capital at attractive rates 2015
Slide 18: Maintaining Financial Strength: Funding Sources
MAINTAINING FINANCIAL STRENGTH: FUNDING SOURCES Canadian Utilities Funding Sources 2011-2015 58% 30% 6% 4% 2% Funds Generated Capital Redeployment Debt Issues (net of DRIP Preferred Shares by Operations repayments)
Slide 19: Summary
SUMMARY GROWING HIGH CONTINUED MAINTAINING QUALITY DIVIDEND TAWESTMENT FINANCIAL EARNINGS BASE GROWTH STRENGTH ATCO
Slide 20: Slide 20
Slide 21: Appendix
Appendix 21
Slide 22: Organizational Structure
ORGANIZATIONAL STRUCTURE 75.5% | ATCO 52.9%
Slide 23: ATCO Electric
ATCO ELECTRIC Builds, owns and operates electrical transmission and distribution facilities • 224,000 farm, business and residential customers in 245 Alberta communities • Approximately 11,000 km of transmission lines and 76,000 km of distribution lines • Subsidiaries: • ATCO Electric Yukon • Northl
Slide 24: ATCO Power
ATCO POWER Ownership position in 13 power generation plants in Alberta, British Columbia, Saskatchewan and Ontario • Electricity Market Exposure Portfolio: • 1,552 MW Contract (68%) • 734 MW Merchant (32%)
Slide 25: ATCO Power Australia
ATCO POWER AUSTRALIA Operates two power generation facilities with a combined capacity of 266 MW • Osborne Combined-Cycle Facility Adelaide, South Australia • Karratha Gas-fired Generating Station Karratha, Western Australia
Slide 26: ATCO Gas
ATCO GAS Builds, owns and operates natural gas distribution facilities in Alberta • Alberta’s largest natural gas distribution company • Serves more than 1.1 million customers in nearly 300 Alberta Fort communities McMurray • Builds, maintains and operates more than 40,000 km of natural gas Grand Pr
Slide 27: ATCO Gas Australia
ATCO GAS AUSTRALIA Provides safe, reliable natural gas service to the Perth metropolitan area and the wider Western Australian community • Approximately 725,000 customers • 14,000 km of gas distribution pipelines • Offers a variety of natural gas powered alternatives for businesses: • Air conditioni
Slide 28: ATCO Pipelines
ATCO PIPELINES Builds, owns and operates key high-pressure natural gas transmission facilities in Alberta ALBERTA • Transports clean, efficient energy from producers and other pipelines to utilities, power generators and major industries Fort McMurray • Owns and operates ~ 8,500 km of pipeline Grand
Slide 29: ATCO Energy Solutions
ATCO ENERGY SOLUTIONS Builds, owns and operates non-regulated industrial water, natural gas storage, hydrocarbon storage, and NGL related infrastructure • 60,000 m3/day water infrastructure capacity • 52 PJ natural gas storage capacity • 400,000 m3 hydrocarbon storage capacity • 1,490 mmcf/day licen
Slide 30: Climate Change and the Environment
CLIMATE CHANGE AND THE ENVIRONMENT Coal Phase-out in Alberta by 2030 • ATCO is actively engaged in determining fair compensation and timeline with the Department of Energy Acceleration of Renewable Generation • ATCO is exploring renewable technologies and is well positioned to provide many solutions
Slide 31: Climate Leadership Plan
CLIMATE LEADERSHIP PLAN INTER-TIES: BC, SASK, MANITOBA, NWT PPAs Balancing Poo! Role RENEWABLE INCENTIVES Hydro, Wind, Solar, Biomass COMMUNITY IMPACTS ATCO
Slide 32: Large Scale Hydroelectric Potential
LARGE SCALE HYDROELECTRIC POTENTIAL
Slide 33: Our Solutions to Ensure a Clean Energy Future
OUR SOLUTIONS TO ENSURE A CLEAN ENERGY FUTURE
Slide 34: ATCO.com | Tel: 403.292.7500
ATCO.com I Tel: 403.292.7500 Investor Relations 1500, 909 – 11 Avenue SW Calgary, Alberta T2R 1N6 CANADA 34
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