Fortis Inc. · TSX:FTS
Fortis — Investor Presentation (November 2018)
30 slides from Fortis's investor presentation, November 2018
Slide 1: Empowering, Sustaining and Executing: Board Shareholder Engagement
Empowering, Sustaining and Executing Board Shareholder Engagement November 2018 IN OUR REGULATED ENERGY INFRASTRUCTURE SYSTEMS
Slide 2: Forward-Looking Information
Forward-Looking Information Fortis includes "forward-looking information" in this presentation within the meaning of applicable Canadian securities laws and "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, collectively referred to as "forw
Slide 3: Agenda
AGENDA 1 F O R M A L P R E S E N TAT I O N Business and Strategy Overview Doug Haughey, Fortis Inc. – Chair of the Board Board Structure Doug Haughey, Fortis Inc. – Chair of the Board Corporate Governance Ida Goodreau, Fortis Inc. – Chair of the Governance and Nominating Committee Executive Team Ove
Slide 4: Business & Strategy Overview
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Slide 5: Leading North America Utility
Leading North America Utility B U S I N E S S & S T R AT E G Y OVERVIEW 10 ITC UNS Energy Locally Operated FortisBC Regulated Electric Regulated Gas Utilities FortisAlberta FERC-Regulated Newfoundland Power = 1 Electric Transmission Central Hudson Long-Term Contracted FortisOntario Hydro Generation
Slide 6: High Quality & Diverse Utility Portfolio
High Quality & Diverse Utility Portfolio B U S I N E S S & S T R AT E G Y OVERVIEW ~97% REGULATED UTILITY ASSETS 10 UTILITY OPERATIONS Canada, U.S. & Caribbean $ 26.1 BILLION MIDYEAR 2018 RATE BASE ~60% EARNINGS FROM THE U.S. ~92% TRANSMISSION & DISTRIBUTION 3.3 MILLION UTILITY CUSTOMERS 2.0M Electr
Slide 7: Strategic Initiatives Timeline
Strategic Initiatives Timeline B U S I N E S S & S T R AT E G Y OVERVIEW 1885-2012 2013-2016 2017-Current Focused on Canada U.S. Acquisition Strategy Focused on Organic Growth in North America 7
Slide 8: Proven Strategy
Proven Strategy B U S I N E S S & S T R AT E G Y OVERVIEW S T R AT E G Y 6% Leverage the operating model, footprint of our utilities, operating expertise, Average Annual Dividend reputation and financial strength to Focus on Growth Target through 2023 develop growth opportunities Organic Growth AREA
Slide 9: 2019-2023 Business Plan Highlights
2019-2023 Business Plan Highlights B U S I N E S S & S T R AT E G Y OVERVIEW $17.3B 6-7% 6% 5-Year Rate Base Average Annual Capital Plan Growth Dividend Growth Target to 2023 9
Slide 10: 45 Years of Dividend Growth
45 Years of Dividend Growth B U S I N E S S & S T R AT E G Y OVERVIEW 6% guidance generates annual dividend payment of $2.27 in 2023 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19F 21F 23F Actual dividend paid Forecasted dividend payments 10
Slide 11: Board Structure
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Slide 12: Board Structure
BOARD STRUCTURE Douglas J. Haughey Chair of the Board Barry V. Perry* Tracey C. Ball Pierre J. Blouin Paul J. Bonavia Lawrence T. Borgard Maura J. Clark President & CEO, Chair of the Audit Fortis Committee Margarita K. Dilley Julie A. Dobson Ida J. Goodreau Joseph L. Welch* Jo Mark Zurel Chair of Ce
Slide 13: Committee Structure
Committee Structure BOARD STRUCTURE Governance & Nominating Committee (GNC) Board of Directors Audit Human Resources Committee (AC) Committee (HRC) 13
Slide 14: Strong and Experienced Board of Directors
Strong and Experienced Board of Directors BOARD STRUCTURE Representation on the Board 100% are financially literate 10 of 12 directors are independent Average tenure ~4 years Women 42% 10 have utility/energy experience 11 have governance & risk management experience U.S. Based 50% 9 have executive c
Slide 15: Corporate Governance
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Slide 16: Corporate Governance Approach
Corporate Governance Approach C O R P O R AT E G O V E R N A N C E Committed to best corporate governance practices: Strong Performance Governance Human Audit Responsibility Matrix Board & Nominating Resources Committee • ISS and Glass Lewis Supportive of All Committee Committee Resolutions for Past
Slide 17: Board Assessment and Renewal
Board Assessment and Renewal C O R P O R AT E G O V E R N A N C E Annual Assessment of Board and Committee Process • Comprehensive survey and interviews to assess individual and overall board performance One-on-one Board meeting Comprehensive Director meeting with the without the Chair director surv
Slide 18: Risk Management and Financial Oversight
Risk Management and Financial Oversight C O R P O R AT E G O V E R N A N C E Risk Management Overview • Highly regulated businesses • Board oversees enterprise risk management across the organization Financial Reporting • Independent Audit Committee supported by experienced management • Subsidiaries
Slide 19: Prioritizing Cybersecurity
Prioritizing Cybersecurity C O R P O R AT E G O V E R N A N C E Leadership & Oversight • Oversight by Governance and Nominating Committee • Fortis Inc. Chief Information Officer appointed in 2017 Cyber Risk Management Risk Asset Identity & Threat & Situational • NERC CIP Compliance Management Manage
Slide 20: Sustainability Oversight
Sustainability Oversight C O R P O R AT E G O V E R N A N C E Evolution of Reporting Practices • Oversight by Governance and Nominating Committee • Appointed Nora Duke as executive responsible for sustainability • Enterprise-wide disclosure and communication of key performance indicators (KPIs) and
Slide 21: Environmental Commitment
Environmental Commitment C O R P O R AT E G O V E R N A N C E We delivered 19 times more energy to our 5,700MW customers than we generated in 2017 Wind Energy Connected by ITC 92% Yielding Customer Savings of of our assets are electricity poles, US$600M (1) wires and natural gas lines (1) Based on i
Slide 22: Social Commitment
Social Commitment C O R P O R AT E G O V E R N A N C E 2.5 All Injury Frequency Rate (1) Customers and Stakeholder Engagement 2.0 1.9 • Our subsidiaries continuously engage with local regulators and stakeholders 1.5 1.7 Health and Safety 1.0 • Fortis and its subsidiaries are committed to a culture o
Slide 23: Executive Team Overview
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Slide 24: Strong Executive Team
Strong Executive Team Barry Perry President & CEO EXECUTIVE TEAM OVERVIEW Jocelyn Perry* James Reid* Phonse Delaney Nora Duke James Laurito Gary Smith David Hutchens* EVP, CFO EVP, Chief Legal EVP, Chief Information EVP, Sustainability EVP, Business EVP, Eastern Canadian EVP, Western Utility Officer
Slide 25: Executive Succession Planning
Executive Succession Planning EXECUTIVE TEAM OVERVIEW Effective succession planning process: 7 of 18 senior management appointments over past year: • Annual review of enterprise-wide talent pipeline • EVP, CFO for key executive roles • EVP, Chief Legal Officer • Oversight of talent management progra
Slide 26: Executive Compensation
Executive Compensation EXECUTIVE TEAM OVERVIEW Total Direct Compensation • Compensation Objectives: Base Short-Term Compensation • Fair compensation Incentives (Annual Incentive) • Linked to performance • Aligned with shareholders • Reviewed annually with a comprehensive review biennially by externa
Slide 27: Conclusion
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Slide 28: Board Shareholder Engagement Supportive of Fortis Value Proposition
Board Shareholder Engagement Supportive of Fortis Value Proposition CONCLUSION Board Aligned on Strategy Well-Run Utilities The Board and management are committed to good governance, environmental stewardship and sound Strong Governance Model business practices. We are also Highly Regulated committe
Slide 29: FORTIS...
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Slide 30: FORTIS...
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