Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Investor Day (September 2019)
31 slides from Canadian Utilities Limited Class A's investor day presentation, Sep 17, 2019
Slide 1: Canadian Utilities Limited Investor Presentation
CLI CANADIAN UTILITIES LIMITED A ME an ATCO company CANADIAN UTILITIES LIMITED INVESTOR PRESENTATION SEPTEMBER 17, 2019
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Statements made by representatives for Canadian Utilities Limited 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 resul
Slide 3: Siegfried Kiefer, President & Chief Executive Officer
CLI CANADIAN UTILITIES LIMITED A ME an ATCO company SIEGFRIED KIEFER PRESIDENT & CHIEF EXECUTIVE OFFICER CANADIAN UTILITIES LIMITED
Slide 4: Introduction: Canadian Utilities Executive Team
INTRODUCTION: CANADIAN UTILITES EXECUTIVE TEAM WAYNE STENSBY DENNIS DECHAMPLAIN SIEGFRIED KIEFER GEORGE LIDGETT PAT CREAGHAN EXECUTIVE VICE PRESIDENT, EXECUTIVE VICE PRESIDENT & PRESIDENT & EXECUTIVE VICE PRESIDENT & MANAGING DIRECTOR & CORPORATE DEVELOPMENT CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE O
Slide 5: Dennis DeChamplain, Executive Vice President & Chief Financial Officer
CLI CANADIAN UTILITIES LIMITED A ME an ATCO company DENNIS DECHAMPLAIN EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER
Slide 6: Track Record of Success: Earnings Growth
TRACK RECORD OF SUCCESS: EARNINGS GROWTH IN 2018, WE SET A NEW RECORD BY GENERATING $607M. This is the third consecutive year we have set a new adjusted earnings record. cane 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 17 18 sia uri
Slide 7: Growth: First Half 2019 Adjusted Earnings
GROWTH: FIRST HALF 2019 ADJUSTED EARNINGS UTILITIES ENERGY INFRASTRUCTURE Sa BUSINESSES & CORPORATE 7 Q2 2018 YTD Q2 2019 YTD Q2 2018 YTD Q2 2019 YTD CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 8: Continued Dividend Growth
CONTINUED DIVIDEND GROWTH $1.69 per share CANADIAN UTILITIES: 47 YEARS OF ANNUAL DIVIDEND INCREASES The longest track record of annual dividend increases of any Canadian publicly traded company* | | 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
Slide 9: Track Record of Success: Canadian Utilities Total Shareholder Return
TRACK RECORD OF SUCCESS: CANADIAN UTILITIES TOTAL SHAREHOLDER RETURN 8, TOTAL RETURN ON $100, 1980-2019 1, SINCE 1980 CU 6, CLASS A SHARES 12.2% CAGR ; TSX COMPOSITE 8.2% CAGR F SINCE 2009 CLASS A SHARES 9.3% CAGR 3, TSX COMPOSITE 6.4% CAGR See 7 TSX 000 SraeartrewnecrorrnrtrwwnerecoSrarmrsrewenesor
Slide 10: Financial Strength: Balance Sheet
FINANCIAL STRENGTH: BALANCE SHEET “CREDIT RATING ¢ CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 11: High Quality Earnings: 2018 Adjusted Earnings
HIGH QUALITY EARNINGS: 2018 ADJUSTED EARNINGS REGULATED EARNINGS 14% LONG-TERM CONTRACTED EARNINGS CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 12: Rate Base Growth
RATE BASE GROWTH REGULATED CAPITAL INVESTMENT ($B) MID-YEAR RATE BASE ($B) EXPECTED TO GROW 4% s YEAR sw 125 $129 nig 2013 2014 «2015 «2016 «2017 2018 2019 2020 2021 2013 = 2014-2015 «2016 «2017 2018 2019 2020 2021 CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 13: Siegfried Kiefer, President & Chief Executive Officer
CLI CANADIAN UTILITIES LIMITED A ME an ATCO company SIEGFRIED KIEFER PRESIDENT & CHIEF EXECUTIVE OFFICER CANADIAN UTILITIES LIMITED
Slide 14: Canadian Utilities Strategy
CANADIAN UTILITIES STRATEGY CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 15: Strategic Priorities: Key to Canadian Utilities' Success
5 STRATEGIC PRIORITIES: KEY TO CANADIAN UTILITIES’ SUCCESS SWS S INNOVATION GROWTH FINANCIAL OPERATIONAL COMMUNITY STRENGTH EXCELLENCE INVOLVEMENT CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 16: Regulated Utilities
REGULATED UTILITIES HLECTRIC TRANSMISSION ; TRIC DISTRIBUTION $5,095M Rate Base $2,585M Rate Base NATURAL GAS DISTRIBUTION NATURAL GAS TRANSMISSION INT'L NATURAL GAS DISTRIBUTION $2,717M Rate Base $1,802M Rate Base $1,211M Rate Base CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 17: Capital Recycling: Canadian Electricity Generation Sale
CAPITAL RECYCLING: CANADIAN ELECTRICITY GENERATION SALE Selling entire Canadian fossil fuel-based power generation portfolio for $835 million 12 coal-fired and natural gas-fired electricity generation assets located in Alberta, British Columbia, Saskatchewan and Ontario, with generating capacity of
Slide 18: Electricity Generation Post Sale
ELECTRICITY GENERATION POST SALE HIGHLY CONTRACTED EXPANDING RENEWABLE PORTFOLIO GENERATION CAPABILITIES MERCHANT 24 MW (10%) LONG-TERM NATURAL GAS 182 MW (75%) CONTRACTED 217 MW (90%) CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 19: Canadian Utilities Direct Greenhouse Gas Emissions
CANADIAN UTILITIES DIRECT GREENHOUSE GAS EMISSIONS DIRECT GHG EMISSIONS (TONNES) 12,000,000 10,000,000 (ELECTRICAL TRANSMISSION & 8,000,000 DISTRIBUTION (PIPELINES AND LIQUIDS 6,000,000 4,000,000 MU INTERNATIONAL POWER GENERATION 2,000,000 MM CANADIAN POWER GENERATION 2018 2018 EXCLUDING CANADIAN PO
Slide 20: Electricity Generation Post Sale
ELECTRICITY GENERATION POST SALE ae @ RUN-OF-RIVER HYDRO seat (wv) 1 OLDMAN RIVER 24 2 VERACRUZ 35 NORTH AMERICA © NATURAL GAS Sie 3 SAN LUIS POTOSI 6 4 KARRATHA 86 5 OSBORNE 90 TOTAL 2m AUSTRALIA CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 21: Capital Recycling: Alberta PowerLine Sale
CAPITAL RECYCLING: ALBERTA POWERLINE SALE ¢ Sold Alberta PowerLine Limited Partnership (APL) for total proceeds of approximately $300 million, and the assumption of approximately $1.4 billion of APL debt ¢ Indigenous communities have an opportunity to obtain up to a 40 per cent equity interest in AP
Slide 22: Capital Investment Approach
CAPITAL INVESTMENT APPROACH ¢ Disciplined and prudent approach a. veg ys TREE REGULATED OR ¢ Utility and utility-like assets: regulated or TRAIT LONG-TERM long-term contracted CONTRACTED ASSETS e A-range credit rating focus GEOGRAPHIC A-RANGE ili i DIVERSIFICATION GREDIT e The ability to leverage ou
Slide 23: Global Trends: Global Electricity Generation
GLOBAL TRENDS: GLOBAL ELECTRICITY GENERATION“ 2018 UTILITY ADAPTS 2050 26,188 TWh TO CHANGES 42,421 TWh WM FUELBASED i RENEWABLES (1) Bloomberg New Energy Outlook 2019 CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 24: Regulatory Update
REGULATORY UPDATE ELECTRIC TRANSMISSION 2019 2020 021 GENERAL TARIFF fr APPLICATION (GTA) GAS TRANSMISSION GENERAL img 2020 2021 RATE APPLICATION (GRA) a 2019 2020 2021 202170 2022 GENERIC COST OF CAPITAL (GCOC) “a oe GAS DISTRIBUTION AUSTRALIA 2019 2020 2021 2020 TO 2024 ACCESS Ga ARRANGEMENT (AA5)
Slide 25: Commitment: Innovation
COMMITMENT 10 INNOVATION CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 26: Commitment to Innovation: Charging Corridor
COMMITMENT TO INNOVATION: CHARGING CORRIDOR CALGARY 20 NEW FAST CHARGERS il | h\ IN- SOUTHERN ALBERTA RED DEER THIS YEAR CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 27: Jandakot
JANDAKOT OPERATIONS CENTRE HYDROGEN STORAGE BATTERY . ) STORAGE FUEL CELL SOLAR + WATER + ELECTROLYSIS = HYDROGEN PELE) CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 [US
Slide 28: Commitment to Innovation: Heartland Water
COMMITMENT TO INNOVATION: HEARTLAND WATER HEARTLAND PUMP STATION ALBERTA, CANADA CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu
Slide 29: Canadian Utilities Summary
$3.6B LONG TERM CONTRACTED CAPITAL INTERNATIONAL NATURAL GAS DISTRIBUTION NATURAL GAS TRANSMISSION NATURAL GAS DISTRIBUTION ELECTRICITY TRANSMISSION ELECTRICITY DISTRIBUTION 2019-2021 ONGOING CAPITAL INVESTMENT DRIVING UTILITY ASSET GROWTH CANADIAN UTILITIES SUMMARY 2018 ADJUSTED EARNINGS REGULATED
Slide 30: Canadian Utilities Limited
CLI CANADIAN UTILITIES LIMITED A ME an ATCO company CANADIAN UTILITIES LIMITED INVESTOR PRESENTATION SEPTEMBER 17, 2019
Slide 31: Investor Relations
ee 7 = ae wwwATCO.com ” Investor Relations www.canadianutilities.com — 5302 Forand Street SW iid emer 403.292.7500 Calgary, AB T3E 8B4 CANADA 0 008) incon ia Qh SEEN i ang CANADIAN UTILITIES INVESTOR PRESENTATION SEPTEMBER 2019 cu