Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — BMO Capital Markets 10th Annual Infrastructure & Utilities Conference (February 2013)
14 slides from Canadian Utilities Limited Class A's conference presentation, Feb 7, 2013
Slide 1: BMO Capital Markets 10th Annual Infrastructure & Utilities Conference
BMO Capital Markets 10th Annual Infrastructure & Utilities Conference Chad Gareau VP, Finance & Treasury February 7, 2013
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: The ATCO Group of Companies
THE ATCO GROUP OF COMPANIES Alberta-based ATCO Group is a $14 billion enterprise engaged in: • Utilities (pipelines, natural gas and electricity transmission and distribution) • Energy (power generation, natural gas gathering, processing, storage and liquids extraction) • Structures & Logistics (man
Slide 4: Organizational Structure
ORGANIZATIONAL STRUCTURE 52.8% 100% 100% 100% 100% 100% 24.5% 75.5% Utilities Energy Australia Structures & Logistics 4
Slide 5: Strategy
STRATEGY Reliable Earnings Mix* • Reliable earnings and cash flows • Opportunities for premium returns 74% • Growing the business through diversification and global expansion 18% • Conservative financial policies 8% • Commitment to strong investment grade credit ratings Regulated and other long term
Slide 6: Growth Capital ($billions)
GROWTH CAPITAL ($billions) ATCO Australia Acquisition Approximately $6 billion ~75% of the 2012-2014 expected growth capital is at ATCO Electric 6
Slide 7: Utilities Segment
UTILITIES SEGMENT • 240,000 customers in 245 communities, primarily in Alberta • 74,000 kms of distribution and transmission power lines in Alberta • $892 million in transmission and distribution capital expenditures in 2011 • Mid-year 2011 transmission rate base of approximately $2 billion • Signif
Slide 8: Hanna Region Transmission Development Project Update
HANNA REGION TRANSMISSION DEVELOPMENT PROJECT UPDATE • Constructing ~355 km of transmission ROW, 6 new substations and upgrading 14 substations • Construction commenced Q1/12 • Estimated completion Q2/13 • ~$735 million capital cost, excluding capitalized interest during construction Hanna Project •
Slide 9: Eastern Alberta Transmission Line Project Update
EASTERN ALBERTA TRANSMISSION LINE PROJECT UPDATE • Constructing ~500km of transmission and converter stations • Regulatory approval received in Nov 2012 • Estimated in-service mid-to-late 2014 • ~$1.6 billion capital cost, excluding capitalized interest during construction EATL Project • $222 millio
Slide 10: Financial Strength
FINANCIAL STRENGTH CU Inc. Balance Sheet* CU Balance Sheet* 35% 35% 59% 53% 6% 12% Debt (net of cash) Preferred Shares Common Equity • ~$1.9B in committed corporate credit facilities • Focused on maintaining financial metrics that mirror approved regulated capitalization ratios at CU Inc. *Based on
Slide 11: Financial Structure
FINANCIAL STRUCTURE 52.8% S&P DBRS Long-term Debt A A 100% Preferred Shares P-2 (high) Pfd-2 (high) 100% S&P DBRS S&P Moody’s Long-term Debt A A (high) Long-term Debt* BBB (positive) Baa2 Preferred Shares P-2 (high) Pfd-2 (high) *Reflect recent S&P and Moody’s rating upgrades *As at September 30, 20
Slide 12: Manageable Debt Maturity Schedule
$MM $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2012 2014 2016 SCHEDULE 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 CU Inc. 2040 2042 2044 CU 2046 MANAGEABLE DEBT MATURITY 2048 2050 2052 2054 2056 2058 2060 2062 12
Slide 13: Finance Plan
FINANCE PLAN • Capital growth will be financed with a combination of cash flow, dividend reinvestment program and prudent access to debt and preferred share markets • Approximately ~$2.5 billion in debt and preferred capital markets financings in last 18 months • Canadian Utilities Limited initiated
Slide 14: Key Points
KEY POINTS CU delivers long term value to investors through: Reliable Earnings & Cash Flows Financial Strength Growth Opportunities 14