Fortis Inc. · TSX:FTS
Fortis — FY2014 Earnings Presentation
15 slides from Fortis's earnings presentation, Feb 19, 2015
Slide 1: 2014 Earnings Call
2014 Earnings Call February 19, 2015 1
Slide 2: Donna Hynes, Director, Investor & Public Relations
Donna Hynes Director, Investor & Public Relations Logistics 2
Slide 3: Forward-Looking Information Disclaimer
Fortis Inc. (the "Corporation") includes forward-looking information in this presentation within the meaning of applicable securities laws in Canada (“forward-looking information”). The purpose of the forward-looking information is to provide management’s expectations regarding the Corporation’s fut
Slide 4: Barry Perry, President & CEO
Barry Perry President & CEO Corporate Update 4
Slide 5: 2014: Transformative year
Transformative year Leader in electric and gas utilities in North America Acquired UNS Energy on August 15, 2014 o US$4.5 billion, including assumption of US$2 billion of debt 2014 o Largest acquisition in history of Fortis bolsters assets by one-third o Further diversifies assets geographical
Slide 6: Q4 2014 Focus
Q4 2014 Focus o Integration of UNS Energy o Completion of 2014 $1.7 billion capital expenditure program Q4 2014 o Strategic review of Fortis Properties 6
Slide 7: Positioned for strong performance in 2015
Positioned for strong performance in 2015 Key drivers o Completion of Waneta expansion 2015 o Full year contribution from UNS Energy o Central Hudson rates to be rebased mid-year o FortisAlberta capital tracker 7
Slide 8: Growth Through Investment
Major energy infrastructure projects o $900 million Waneta Expansion nearly complete o $400 million Tilbury Phase 1A commenced o Order in Council received for two potential LNG projects Growth $450 million Tilbury Phase 1B $600 million Woodfibre Through Investment Entering period of signific
Slide 9: Focus
Initial push into U.S. utility business accomplished Focus over the next 12-18 months o Fully integrate UNS Energy Execute capital expenditure program Focus o o Progress LNG opportunities o Complete strategic review of Fortis Properties Well positioned for 2015 and beyond 9
Slide 10: Karl Smith, Executive VP, CFO
Karl Smith Financial Results Executive VP, CFO Regulatory Update 10
Slide 11: Earnings
Q4 Annual ($M, except as noted) 2014 2013 Change 2014 2013 Change Basic Earnings per Common Share $0.44 $0.47 ($0.03) $1.41 $1.74 ($0.33) Net Earnings Attributable to 113 100 13 317 353 (36) Common Shares Adjusting items: Earnings Acquisition-related costs 5 2 90 34 Part VI.1 tax adjustment (23) Exp
Slide 12: Earnings Sensitivity to Foreign Exchange
Earnings Approximately 38% of the total assets of Fortis are now in the United States Sensitivity to Foreign Each 5 cent, or 5%, change in the US dollar-to-Canadian dollar Exchange exchange rate is estimated to have a 4 cent impact on basic earnings per common share 12
Slide 13: Financing
In excess of $1 billion of long-term debt raised in 2014 UNS Energy equity financing complete o $1.8 billion common equity o $600 million preference shares Cash flow from operating activities for 2014 was $982 million Financing Low debt maturity profile Unutilized committed credit faciliti
Slide 14: Regulatory
Central Hudson o General rate application for July 2015 rates o Reforming the Energy Vision (REV) proceeding Regulatory FortisAlberta o 2013-2015 capital tracker o 2013-2014 generic cost of capital proceeding 14
Slide 15: Q&A
Q&A Leader in Electric & Gas Utilities in North America 15