ENBRIDGE INCOME FUND HOLDINGS INC. Designed and Managed for Strength and Stability Investment Community Presentation December 2013 1 1
FORWARD LOOKING STATEMENTS This presentation includes certain forward looking information (“FLI”) to provide Enbridge Income Fund Holdings Inc. (“EIFH”) shareholders and potential investors with information about EIFH and its investee, Enbridge Income Fund (the “Fund”), management's assessment of their future plans and operations, which may not be appropriate for other purposes. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Although we believe that the FLI in this presentation is reasonable based on the information available today and the processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. FLI inherently involves a variety of assumptions, known and unknown risks, uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in our FLI and the FLI relating to the Fund. Material assumptions include: expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; availability and price of labour and pipeline construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approvals for the Fund’s projects; anticipated in-service dates and weather. Our FLI is subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, construction schedules, weather, economic conditions, exchange rates, interest rates and commodity prices, including but not limited to those discussed more extensively in our filings and the filings of the Fund with Canadian securities regulators. The impact of any one risk, uncertainty or factor on any particular FLI is not determinable with certainty as these are interdependent and the future course of action of EIFH and the Fund depends on management's assessment of all information available at the relevant time. Except to the extent required by law, neither EIFH nor the Fund assumes any obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this presentation is expressly qualified in its entirety by these cautionary statements. This presentation may make reference to certain financial measures, such as cash available for distribution, which are not recognized under GAAP. Reconciliations to the most closely related GAAP measures are included in the MD&A filings and/or Supplementary Financial Information available on our website or in the slides that accompany this presentation, if applicable. 2 2
COMPANY SNAPSHOT ENF is a growing player in the Canadian energy sector. We are designed and managed for strength and stability. TSX: ENF Ticker Symbol: ~$1.3 Billion Market Capitalization: ~$5.0 Billion Enterprise Value: Monthly Dividend Frequency: 2013e Annualized $1.3752 CDN Dividend Per Share: ~6.0% Dividend Yield: 10 year Dividend ~5.0% Growth Rate Dividend Reinvestment Yes Plan (DRIP): 3 3 As at November 30, 2013.
VALUE PROPOSITION Our Fund is designed and managed to provide steady and predictable cashflow in all market conditions. Low Risk Business Model Diversified Asset Base High Payout of Predictable Cash Flows Strong Sponsor 4 4
RECENT DEVELOPMENTS Significant Acquisitions Recently acquired assets fit well with our value proposition. All assets are underpinned by long term fixed price contracts. Acquisition Year Facility Location Gross Capacity Acquisition Cost 2011 Ontario Wind Ontario 190 MW Talbot Wind Ontario 99 MW Sarnia Solar Ontario 80 MW $1.2 B 2012 Greenwich Wind Ontario 99 MW Amherstburg Solar Ontario 15 MW Tilbury Solar Ontario 5 MW Hardisty Contract Storage Alberta 11 million barrels $1.2 B Benefits of Acquisitions • Immediately accretive • Supported dividend increases • Increased scale and diversification of asset base • Reinforces the Fund’s low risk value proposition • Increased liquidity and access to capital markets 5 5 • Continued strategic alignment with Enbridge Inc.
RECENT DEVELOPMENTS Organic Growth Bakken Expansion Project supported by strong supply and demand fundamentals and low risk contract structure. Bakken Expansion Project – In-service Q1 2013 Bakken Expansion Pipeline – On time and on budget – Capital cost ~ $190 M – 145,000 bpd of initial capacity – Low cost expansion potential – Take or pay contracts – Pass through of operating costs 6 6
ASSET PORTFOLIO We have built a diversified portfolio of low risk energy infrastructure assets across our three business lines. 7 7 7
SOURCES OF CASHFLOW GENERATION Our cashflow has become increasingly diversified through acquisitions and organic growth. Green Power Generation Liquids Transportation & Storage Natural Gas Transmission Current CAFD 2 2010 CAFD 1 4% 20% 46% 34% 62% 34% ~ $350 MM ~ $120 MM 1 Cashflow from operating assets before working capital adjustments and corporate expenses, less maintenance capex, plus distributions from Alliance and NRGreen 8 8 2 Cash Available for Distribution (CAFD) before Corporate expenses, pro forma the acquisition of crude oil storage and renewable energy assets acquired in December 2012 as it these assets were owned by the Fund from January 1, 2012. CAFD is a non-GAAP measure.
GREEN POWER Renewable Generation Facilities One of Canada’s largest suppliers of environmentally friendly electric power. Western Assets Asset Location Capacity Whitecourt (under construction) Greenwich Wind Ontario 99 MW Ontario Wind Ontario 190 MW Talbot Wind Ontario 99 MW Magrath Wind Alberta 30 MW Chin Chute Wind Alberta 30 MW Sunbridge Wind Saskatchewan 11 MW Sarnia Solar Ontario 80 MW Amherstburg Solar Ontario 15 MW Ontario Assets Tilbury Solar Ontario 5 MW NRGreen Waste Heat Saskatchewan 20 MW 9 9
GREEN POWER Renewable Generation Facilities Commercial arrangements support stability of cashflow. • Power Price Risk – Eliminated through long-term, fixed price Power Purchase Agreements • Demand Risk – Virtually eliminated through long-term Power Purchase Agreements • Energy Supply Risk – Substantially mitigated through diversification of assets by location and resource Gross Avg. Remaining Facility Generating Interest Contract Length Capacity Ontario Wind 190 MW 100% 15 Years Talbot 99 MW 100% 18 Years Greenwich 99 MW 100% 18 Years Magrath 30 MW 33% 11 Years Greenwich Wind Project Chin Chute 30 MW 33% 4 Years SunBridge 11 MW 50% 9 Years Sarnia 80 MW 100% 16 years Amherstburg 15 MW 100% 18 Years Tilbury 5 MW 100% 17 Years NRG Waste Heat 20 MW 50% 15 Years ~15 Years TOTAL 579 MW Wtg. Average Amherstburg Solar 10 10
LIQUIDS TRANSPORTATION & STORAGE Saskatchewan System Our crude oil gathering system provides a vital link to U.S. markets for producers in Saskatchewan, Manitoba and North Dakota. Capacity Assets (kbpd) Saskatchewan Gathering 255 Weyburn System 47 Virden System 37 Westspur System 255 Bakken Expansion Pipeline 145 Operational Storage 445 kbbls Bakken Expansion Pipeline 11 11
LIQUIDS TRANSPORTATION & STORAGE Saskatchewan System Bakken production is driving new investment and long-term growth. Toll structures provide stability and predictability. Current Toll Asset Regulator Methodology Saskatchewan Gathering Cost of Service Saskatchewan Weyburn System Market Based Saskatchewan Virden System Market Based Manitoba Fee for Service 1 Westspur System NEB - downside protection Bakken Expansion Pipeline Long Term Take or Pay NEB 1 Pending ratification by NEB Forecast Bakken Production North Dakota, Saskatchewan & Manitoba MMbpd 2.0 1.6 1.2 0.8 0.4 0.0 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Base Case High Case Bakken Expansion Pipeline 12 12 12
LIQUIDS TRANSPORTATION & STORAGE Hardisty Contract Storage Our contract storage assets are located at a key crude oil pipeline hub in Western Canada. Regional Infrastructure Athabasca Oil Sands Cheecham Kirby Lake Stonefell Edmonton Hardisty Asset Capacity Description • Hardisty Contract 18 crude oil storage tanks 7.5 million barrels • Terminals 1 condensate storage tank • Hardisty Storage 4 underground caverns 3.5 million barrels • Caverns 2 above ground crude oil tanks 13 13
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