Fortis Inc. · TSX:FTS
Fortis — Shareholder Meeting (May 2022)
46 slides from Fortis's shareholder meeting presentation, May 5, 2022
Slide 1: 2022
1 2022
Slide 2: Annual and Special Meeting of Shareholders
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS 2
Slide 3: Voting Instructions
th VOTING : INSTRUCTIONS FORTIS...
Slide 4: Question Instructions
v7 QUESTION INSTRUCTIONS FORTIS...
Slide 5: Doug Haughey, Chair of the Board
DOUG HAUGHEY CHAIR OF THE BOARD 5
Slide 6: Annual and Special Meeting of Shareholders
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS SUBTITLE 6
Slide 7: Meeting Participants
MEETING PARTICIPANTS DAVID HUTCHENS JOCELYN PERRY JIM REID President and Executive Vice President, Executive Vice President, Chief Executive Officer Chief Financial Officer Chief Legal Officer and Corporate Secretary 7
Slide 8: Meeting Agenda
MAY 5, 2022 MEETING AGENDA Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Advisory Vote on Approach to Executive Compensation Amendment of Employee Share Purchase Plan to Increase Share Reserve Voting Results Management Presentation Questi
Slide 9: Appointment of Secretary and Scrutineers
AGENDA Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Approach to Executive APPOINTMENT OF SECRETARY AND SCRUTINEERS Compensation Employee Share Purchase Plan Amendment Voting Results Management Presentation Question Period 9
Slide 10: Receive Financial Statements for the Year Ended December 31, 2021
AGENDA Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Approach to Executive Compensation RECEIVE FINANCIAL Employee Share Purchase STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 Plan Amendment Voting Results Management Presentation Questi
Slide 11: Voting Procedure
VOTING PROCEDURE 11
Slide 12: Election of Directors
AGENDA ELECTION OF DIRECTORS Appointment of Secretary and Scrutineers Financial Statements Douglas J. Haughey Election of Directors Chair of the Board David G. Hutchens Tracey C. Ball Pierre J. Blouin Appointment of Auditors Approach to Executive Compensation Employee Share Purchase Paul J. Bonavia
Slide 13: Appointment of Auditors
AGENDA Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Approach to Executive Compensation APPOINTMENT OF AUDITORS Employee Share Purchase Plan Amendment Voting Results Management Presentation Question Period 13
Slide 14: Advisory Vote on Approach to Executive Compensation
AGENDA Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Approach to Executive ADVISORY VOTE ON APPROACH TO EXECUTIVE Compensation Employee Share Purchase Plan Amendment Voting Results COMPENSATION Management Presentation Question Period 14
Slide 15: Amendment of ESPP to Increase the Share Reserve
AGENDA Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Approach to Executive Compensation AMENDMENT OF ESPP TO Employee Share Purchase INCREASE THE SHARE RESERVE Plan Amendment Voting Results Management Presentation Question Period 15
Slide 16: Voting Results
AGENDA Appointment of Secretary and Scrutineers Financial Statements Election of Directors Appointment of Auditors Employee Share Purchase Plan Amendment VOTING RESULTS Approach to Executive Compensation Voting Results Management Presentation Question Period 16
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Slide 18: Asking Questions
sit ASKING QUESTIONS FORTIS...
Slide 19: 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 Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looki
Slide 20: David Hutchens, President and CEO
DAVID HUTCHENS PRESIDENT AND CEO 20
Slide 21: Fortis Executive Team
FORTIS EXECUTIVE TEAM JOCELYN PERRY JIM REID GARY SMITH NORA DUKE Executive Vice President, Executive Vice President, Executive Vice President, Executive Vice President, Chief Financial Officer Chief Legal Officer and Operations and Innovation Sustainability and Chief Corporate Secretary Human Resou
Slide 22: Fortis Utility Leadership
FORTIS UTILITY LEADERSHIP Linda Apsey Roger Dall’Antonia Ruth Forbes Charles Freni Susan Gray Scott Hawkes ITC FortisBC FortisTCI Central Hudson UNS Energy FortisOntario Richard Hew Kay Menzies Gary Murray Jason Roberts Janine Sullivan Caribbean Utilities BECOL Newfoundland Power Maritime Electric F
Slide 23: Low Risk, Highly Diversified Value Proposition
LOW RISK, HIGHLY DIVERSIFIED VALUE PROPOSITION 23
Slide 24: Delivering Operational Excellence
DELIVERING OPERATIONAL EXCELLENCE 24
Slide 25: $3.6 Billion in Capital Investments
$3.6 BILLION IN CAPITAL INVESTMENTS $600 MILLION IN CLEANER ENERGY Note: Capital Expenditures represents a Non-U.S. GAAP financial measure. Refer to appendix for the Non-U.S. GAAP reconciliation. 25
Slide 26: Wataynikaneyap Power Transmission Project
WATAYNIKANEYAP POWER TRANSMISSION PROJECT MORE THAN 50% COMPLETE 26
Slide 27: 2050 Net-Zero GHG Emissions Target
2050 NET-ZERO GHG EMISSIONS TARGET 27
Slide 28: Taking Action to Combat Climate Change
TAKING ACTION TO COMBAT CLIMATE CHANGE 28
Slide 29: Creating Opportunities from the Clean Energy Transition
CREATING OPPORTUNITIES FROM THE CLEAN ENERGY TRANSITION 29
Slide 30: Natural Gas at FortisBC Supports Sustainability Goals
NATURAL GAS AT FORTISBC SUPPORTS SUSTAINABILITY GOALS 30
Slide 31: Jocelyn Perry, Chief Financial Officer
JOCELYN PERRY EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER 31
Slide 32: 2021 Reported and Adjusted EPS
2021 REPORTED AND ADJUSTED EPS SUPPORTED BY REGULATED UTILITY GROWTH REPORTED EPS ADJUSTED EPS EXCLUDING FOREIGN EXCHANGE IMPACTS, $2.60 $2.61 $2.57 $2.59 ADJUSTED EPS GREW BY $0.12 OR ~5% IN 2021 2020 2021 2020 2021 Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to appendix for the
Slide 33: Q1 2022 Adjusted Net Earnings of $369 Million
2022 Q1 2022 ADJUSTED NET EARNINGS OF $369 MILLION OR $0.78 CENTS PER COMMON SHARE INCREASE OF $0.01 PER COMMON SHARE COMPARED TO Q1 2021 Note: Adjusted EPS is a Non-U.S. GAAP financial measure. Refer to appendix for the Non-U.S. GAAP reconciliation. 33
Slide 34: Five-Year $20 Billion Capital Plan
FIVE-YEAR $20 BILLION CAPITAL PLAN LOW RISK, HIGHLY EXECUTABLE AND THE LARGEST IN OUR HISTORY Note: The Capital Plan is a forward-looking Non-U.S. GAAP financial measure calculated in the same manner as Capital Expenditures. Refer to appendix for the Non-U.S. GAAP reconciliation. 34
Slide 35: Plan Supports Average Annual Rate Base Growth
PLAN SUPPORTS RATE BASE AVERAGE ANNUAL RATE BASE $41.6B GROWTH OF ~6% $31.1B 2021 2026 Plan 35
Slide 36: Funding Plan Provides Financial Flexibility
FUNDING PLAN PROVIDES FINANCIAL FLEXIBILITY SUPPORTS INVESTMENT-GRADE CREDIT RATINGS 36
Slide 37: Superior Cumulative 20-Year Total Shareholder Return
SUPERIOR CUMULATIVE 20-YEAR TOTAL SHAREHOLDER RETURN 20-YEAR TOTAL AVERAGE ANNUAL TOTAL SHAREHOLDER RETURNS SHAREHOLDER 975% 1-Year 21.8% 5-Year 12.1% RETURN 10-Year 20-Year 10.2% 12.6% 549% 373% 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Note: Cumulative 20-year total shareholder return
Slide 38: Five-Year Performance
FIVE-YEAR PERFORMANCE ANNUAL CAPITAL 5-YEAR CAPITAL EXPENDITURES PLAN INCREASED INCREASED 20% 54% MIDYEAR RATE MARKET CAP BASE INCREASED GREW 74% 28% 38
Slide 39: 48 Years of Consecutive Dividend Increases
48 YEARS OF CONSECUTIVE DIVIDEND INCREASES 6% AVERAGE ANNUAL DIVIDEND GROWTH GUIDANCE THROUGH 2025 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 39
Slide 40: A Premium Energy Delivery Company
A PREMIUM ENERGY DELIVERY COMPANY 40
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Slide 42: Question Period
QUESTION PERIOD 42
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Slide 44: Appendix
APPENDIX SUBTITLE 44
Slide 45: Annual Non-U.S. GAAP Reconciliation
ANNUAL NON -U.S. GAAP RECONCILIATION ($ millions, except as shown) 2021 2020 Net Earnings (1) 1,231 1,209 Adjusting Items: Unrealized gain on mark-to-market of derivatives (2) (12) - May 2020 FERC decision (3) - (27) U.S. tax reform (4) - 13 Adjusted Net Earnings 1,219 1,195 Adjusted Earnings per Sh
Slide 46: Quarterly Non-U.S. GAAP Reconciliation
QUARTERLY NON -U.S. GAAP RECONCILIATION ($ millions, except as shown) Q1 2022 Q1 2021 Net Earnings (1) 350 355 Adjusting Item: Unrealized loss on mark-to-market of derivatives (2) 19 5 Adjusted Net Earnings 369 360 Adjusted Earnings per Share ($) $0.78 $0.77 Capital Expenditures Additions to propert