Atco Ltd. Class I · TSX:ACO.X
Atco Ltd. Class I — Investor Presentation (June 2024)
36 slides from Atco Ltd. Class I's investor presentation, Jun 1, 2024
Slide 1: Disclaimer
DISCLAIMER Due to uncertainty surrounding the application of recent amendments to the Competition Act (Canada), the documents incorporated by reference herein are referenced for historical information purposes only and do not constitute active or current representations of ATCO Ltd. or any of its re
Slide 2: Investor Presentation
Investor Presentation ATCO Ltd. June 1, 2024
Slide 3: Agenda
Investor Presentation Agenda Executive Committee 3 Financial Overview 4 ATCO Group Overview 9 Environment, Sustainability and Governance 13 Structures & Logistics 15 Neltume Ports 20 Ashcor 21 ATCO Land and Development 22 Canadian Utilities Overview 23 ATCO Energy Systems 26 ATCO EnPower 28 Appendix
Slide 4: Executive Committee
Executive Committee Nancy C. Southern Adam M. Beattie M. George Constantinescu Dale Friesen Chair & Chief Executive Officer, President, Structures Executive Vice President Senior Vice President, Corporate Affairs ATCO Ltd. & Chief Transformation Officer & Chief Government Affairs Officer Jim Landon
Slide 5: Continued Growth
Financial Overview 2015 2023 GCOC2 decision Rebasing Continued Growth and global at Alberta commodity Distribution price Utilities declines 2020 LONG-TERM TRACK RECORD OF ADJUSTED EARNINGS GROWTH 2016 COVID-19 Pandemic Alberta THROUGH VARIOUS GLOBAL MACRO-ECONOMIC CYCLES 2008- wildfires 2009 $432 MI
Slide 6: Market Leading Dividend Growth
Financial Overview Market Leading Dividend Growth 31 YEARS OF ANNUAL DIVIDEND INCREASES1 DIVIDENDS DECLARED OF $1.90 PER SHARE IN 2023 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 YEAR 1.ATCO has declared first quarter 2024 dividends of $0.4898 per sha
Slide 7: Total 2023 Adjusted Earnings $432M
Earnings Profile Total 2023 Adjusted Earnings1 Adjusted Earnings ($M) $90M Structures & Logistics3 $90 Structures & Logistics3 Neltume Ports $22 ATCO Corporate & Other3 $5 ATCO Energy Systems3 $302 ATCO EnPower3 $24 2 $22M $432M ATCO Australia3 $32 Neltume CU Corporate & Other3 $(43) Ports Canadian
Slide 8: Q1 2024 Adjusted Earnings $148M
Earnings Profile Q1 2024 Adjusted Earnings1 $25M Adjusted Earnings ($M) Structures Structures & Logistics3 $25 & Logistics3 Neltume Ports $5 ATCO Corporate & Other3 - $5M ATCO Energy Systems3 $116 Neltume ATCO EnPower3 $4 2 Ports $148M ATCO Australia3 $6 CU Corporate & Other3 $(8) Canadian Utilities
Slide 9: Strong Issuer Credit Ratings
Strong Issuer Credit Ratings A (low) BBB+ A (high) A- A A- ATCO Ltd. Investor Presentation 8
Slide 10: ATCO Group Overview
ATCO Group Overview For recent filings and further details please visit: atco.com 9
Slide 11: ATCO Group Overview
ATCO Group Overview Based in Alberta, ATCO is one of Canada’s premier corporations. With approximately 20,000 employees across the world and assets of $25 billion, ATCO is a proven, diversified, and global corporation.1 We are publicly traded on the Toronto Stock Exchange under the tickers ACO.X (no
Slide 12: Organizational Structure
ATCO Group Overview Organizational Structure 100% 40% 100% 52.7% 1 Structures & Logistics Neltume Ports Corporate Business Unit Land and Structures Development Frontec *ATCO Corporate also includes Fresh Bites, the global corporate head office in Calgary, Canada, ATCO licensing fees received, and fi
Slide 13: Strategy
ATCO Group Overview Strategy Our essential services investments offer customers around the world tailored solutions to meet their individual needs and offer investors a stable and growing earnings profile, with exposure to favourable macroeconomic trends and a long-term investment horizon. ATCO Ltd.
Slide 14: 2023 Highlights
Our Commitment to ESG 2023 Highlights ATCO Ltd. Investor Presentation 13
Slide 15: Strategic 2030 ESG Targets
Our Commitment to ESG Strategic 2030 ESG Targets ATCO Ltd. Investor Presentation 14
Slide 16: Structures & Logistics Overview
Structures & Logistics Overview Structures and Logistics is comprised of two business units: 1 2 STRUCTURES FRONTEC Workforce Housing Facility Operations & Maintenance Space Rentals Workforce Lodging & Support Permanent Modular Construction Disaster & Emergency Management Residential Housing Manufac
Slide 17: Adjusted Earnings
Structures & Logistics Adjusted Earnings1 Strong performance driven by expansion of base business earnings. 48% YoY Growth $90M $61M 2022 2023 1. Adjusted earnings is a total of segments measure (as defined in NI 52-112). See Legal Notice – Non-GAAP and Other ATCO Ltd. ATCO Corporate Ltd. Investor P
Slide 18: ATCO Structures
Structures & Logistics ATCO Structures Focus on expansion of base business earnings which contribute two-thirds to three-quarters of our segment earnings and offer attractive stability and serve to enhance earnings quality. Base business earnings are supplemented by large-scale global workforce hous
Slide 19: ATCO Frontec
Structures & Logistics ATCO Frontec Taking care of the details so our customers can focus on their core business. LODGING & SUPPORT SERVICES • Safely operating workforce accommodation facilities in remote locations for energy, mining, construction and government clients. SPECIALIZED SITE SERVICES FO
Slide 20: ATCO Frontec
BHP Jansen Discovery Lodge, Saskatchewan Structures & Logistics ATCO Frontec Leveraging our experience in remote locations and successfully building mutually beneficial partnerships. BHP JANSEN DISCOVERY LODGE CAMP SERVICES CONTRACT • Awarded $86 million contract for Wicehtowak Frontec Services (WFS
Slide 21: Neltume Ports Overview
Neltume Ports Overview DIVERSIFIED BY CARGO TYPE AND GEOGRAPHY • Neltume Ports is a port operator and developer with a diversified portfolio of 18 multi-purpose, bulk cargo and container port facilities and 5 port BY CARGO TYPE IN 2023 BY GEOGRAPHY IN 2023 operations services. 2% • The business cont
Slide 22: Ashcor Overview
Ashcor Overview We develop innovative means to repurpose ash, both “live” ash and reclaimed ash, enabling it to play a vital role in solving infrastructure and environmental challenges. We are a trusted ash expert and a pioneer in our industry. COMMON USES FOR OUR ASH: Ready Mixed Concrete Oil Well
Slide 23: ATCO Land and Development Overview
ATCO Land and Development Overview • Invests in, and holds, high-value land in areas where ATCO’s global expertise, vision, and brand can be leveraged for use by ATCO’s own companies and in conjunction with partners. • The current portfolio1 for ATCO Land and Development includes: • 11 commercial re
Slide 24: Canadian Utilities Overview
Canadian Utilities Overview For the standalone Canadian Utilities Limited Investor Presentation and further details please visit: canadianutilities.com 23
Slide 25: Current Operations and Investments
Canadian Utilities Overview Current Operations and Investments1 ATCO Energy Systems, ATCO EnPower and Retail Energy ATCO Australia ATCO EnPower ATCO Energy Systems (LUMA Energy) $23 B in Assets $3.8 B in Revenues 544,000 m3 Natural Gas Liquids 66,000 Pipelines KM 2 105,000 Electric KM Storage Capaci
Slide 26: Canadian Utilities Strategy
Canadian Utilities Overview Strategy • Build on our core utility businesses and invest in activities aimed at advancing the energy transition and ensuring long-term resiliency. DRIVE CASH FLOW OPTIMIZE NON-REG • Optimize our energy infrastructure assets and add new growth platforms. AND EARNINGS ASS
Slide 27: ATCO Energy Systems Overview
ATCO Energy Systems ATCO Energy Systems Overview Seven utilities delivering essential energy for an evolving world • Safely delivering reliable and affordable energy • Investing to serve growing and changing customer needs • Responsibly leading an equitable energy transition • A trusted partner comm
Slide 28: Capital Investment (3-year Plan)
ATCO Energy Systems Capital Investment (3-year Plan) 2.0 $2.0B $4.3B to $4.7B 1.8 3.5% to $4.3% $1.7B 3 Year Capital Investment Plan1 3 Year Mid Year Rate Base CAGR2 $1.5B 1.6 $1.4B 1.4 $1.2B $0.3B $0.8B 1.2 $1.1B $0.2B 1.0 $0.2B $0.3B $0.4B 0.8 $0.3B $0.4B 0.6 $0.2B $0.3B $0.3B 0.4 $0.2B 0.2 $0.4B
Slide 29: ATCO EnPower Overview
ATCO EnPower ATCO EnPower Overview Canada Natural Gas 117 PJ Storage ATCO EnPower by the Numbers1 NGL Storage 544,000m3 Water 85,200m3d Operated Power 377 MW 117PJ 544,000m3 85,200m3/d Generation Gas Natural Gas Natural Gas Liquids Water Infrastructure Production, 33.3% Processing, & ownership Stora
Slide 30: Renewables – Development Pipeline
ATCO EnPower Renewables – Development Pipeline 9% Project Province Type Total MW 27% 1.3 GW Development 64% Forty Mile Wind Phase 1 Uprating Alberta Wind 23 MW Capacity1 Forty Mile Solar Alberta Solar 220 MW Alberta BESS Projects Alberta Battery 115 MW Craig Lake Wind Alberta Wind 246 MW Hand Hills
Slide 31: Canadian Utilities standalone presentation reference
For the standalone Canadian Utilities Limited Investor Presentation and further details please visit: canadianutilities.com 30
Slide 32: Appendix
Appendix 31
Slide 33: Neltume Ports
Puerto Angamos (PANG) Neltume Ports Our Neltume Ports business continues to focus on growth and the deployment of capital – both in the form of increased ownership in our existing investments and through the pursuit of new investments for our diversified portfolio. Prior Year Current Terminal Port %
Slide 34: Legal Notice
Legal Notice Forward-Looking Information Advisory Statements made by company representatives and information provided in this presentation may be considered forward-looking information. Such information includes, but is not limited to, references to: strategic plans, goals and targets, including the
Slide 35: Legal Notice
Legal Notice Non-GAAP and Other Financial Measure Disclosure Advisory This presentation contains various “total of segments measures” (as such term is defined in NI 52-112), "non-GAAP financial measures" (as such term is defined in NI 52-112) and "non-GAAP ratios" (as such term is defined in NI 52-
Slide 36: ATCO.com Investor Relations
ATCO.com canadianutilities.com Tel: 403.292.7500 Investor Relations InvestorRelations@atco.com 5302 Forand Street SW Calgary, Alberta T3E 8B4 Canada 35