Uil Co. Ltd. · KRX:049520
Uil — Q2 2011 Earnings Presentation
21 slides from Uil's earnings presentation, Aug 4, 2011
Slide 1: 2Q '11 Earnings Conference Call
Exhibit 99.1 2Q ‘11 Earnings Conference Call August 5, 2011 1
Slide 2: Note to Investors
Note to Investors Safe Harbor Provision 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, belief
Slide 3: 2011 Highlights
2011 Highlights Increase in net income for the quarter and YTD Ø 2Q ’11 consolidated earnings of $14.2M, or $0.28 per diluted share, an increase of $2.7M or 23% Ø YTD ’11 consolidated earnings of $66.2M, or $1.30 per diluted share, net income significantly up from YTD ’10 mainly due to inclusion of
Slide 4: Integration
Integration Integration of all operating companies is well underway Exit from transition services agreement is on schedule Expected $11.6M of Identified Savings ($M) 4
Slide 5: Gas Operations
Gas Operations Ø 2011 multi-media campaign - launched in April › Cost savings associated with natural gas heating use compared to other energy sources › Momentum of interest in conversions - even in off-peak heating season Ø Historical customer additions(1) 2009 2010 Heating conversions 5,535 5,728
Slide 6: Executing on Capital Expenditure Program
Executing on Capital Expenditure Program Ø On course with aggressive $2.2B base capital expenditure plan for 2011-2019 › Distribution - $1.2B › Transmission - $0.5B › Gas - $0.4B (2011-2015) › GenConn equity investment - $0.1B Ø Investing in Connecticut portion of New England East West Solution proj
Slide 7: GenConn Energy
GenConn Energy 50/50 Joint Venture between UI and NRG Ø Began operating in the ISO-NE markets in June ‘11 Picture as of June 2011 Ø Both GenConn Devon & Middletown are now operating in the ISO-NE markets 7
Slide 8: Regulatory Update
Regulatory Update SCG Potential Overearnings Generic ROE Proceeding SCG/CNG Rate Case Appeals DPUC schedule has not been updated Ø On 3/24/11, CNG, SCG & the OCC filed a motion with UI Electric Decoupling the DPUC to reopen the CNG & SCG rate cases for the purposes of reviewing and approving a settl
Slide 9: Legislative Highlights
Legislative Highlights Session ended June 8th Ø UIL was actively engaged in legislative process Highlights of Public Act 11-80 Ø Department of Energy & Environmental Protection (DEEP) was created, effective July 1 › Merged the Department of Environmental Protection and the Department of Public Utili
Slide 10: Economic Update
Economic Update Economic recovery has been extremely slow over the past 2 years Ø Not a typical recovery - moving sideways CT labor markets continue to weaken despite domestic economic recovery Ø June labor data for CT “fell short of expectations” Non-seasonally adjusted unemployment rate as of June
Slide 11: 2Q & YTD '11 Financial Results by Business
2Q & YTD ’11 Financial Results by Business Net Income ($M) 2Q ’11 vs. 2Q ’10 * YTD ‘11 vs. YTD ’10 * * 2010 - fees associated with acquisition, 2011 - interest on Oct. ’10 issuance of $450M of public debt 11
Slide 12: 2Q & YTD '11 Financial Results - Details
2Q & YTD ‘11 Financial Results - Details Electric distribution, CTA, GenConn & other Ø 15% increase in net income for the quarter & 12% increase on a YTD basis › Increase in earnings primarily attributable to income from the investment in GenConn, partially offset by lower CTA rate base › Both GenCo
Slide 13: Debt Maturity
Debt Maturity Near-Term Debt Maturities ($M) * $3 ** UI Pollution Control Revenue Bonds SCG, CNG & Berkshire UI Equity Bridge Loan repaid in July UIL Debt retired in Feb Berkshire note repaid in May Based on current plans - expect no need for external equity at least through 2013 * $30M to be refina
Slide 14: Assumptions
Assumptions › Regulated businesses are expected to earn the allowed return on an aggregate basis › GenConn expected to earn $0.12-$0.14 per share › CTA earnings are expected to decline by $0.07-$0.09 per share from 2010 as rate base continues to be amortized › Incorporates full year of gas distribut
Slide 15: Q&A
Q&A 15
Slide 16: Appendix
Appendix 16
Slide 17: UIL CapEx Profile
UIL CapEx Profile $M The annual long-term capital spending will be updated in the Fall of 2011 *2010 Gas distribution capex reflects the full year amount; UIL ownership was for 6 weeks effective with the closing on the acquisition. ** Updated - February 23, 2011 *** Information as of November 2010,
Slide 18: 2011 Electric Distribution & Transmission Capex Detail
2011 Electric Distribution & Transmission Capex Detail Electric distribution investments Electric transmission investments 12% 20% 19% 27% 4% 26% 31% 50% 11% 18
Slide 19: 2011 Gas Distribution Capex Detail
2011 Gas Distribution Capex Detail Gas distribution investments 3% 8% 22% 8% 12% 47% 19
Slide 20: Near-Term Average Rate Base Profile
Near-Term Average Rate Base Profile Rate Base (Excluding GenConn Equity Investments): $2,309 37% 38% 38% 40% 42% 43% 1% 2% 23% 23% 23% 7% 5% 22% 23% 22% 39% 40% 36% 38% 28% 30% Electric distribution Electric transmission CTA Gas distribution* GenConn Equity Investments: UI’s 50% Share ($M): 2010A 20
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