ENBRIDGE INCOME FUND Designed and Managed for Strength and Stability Fixed Income Investment Community Presentation November 2012 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
INVESTOR VALUE PROPOSITION Moody’s: Baa2 DBRS: BBB (H) Designed and Managed for Strength & Stability 3
CORE STRATEGIES • Optimize operations and value of existing assets – Maximize revenue, improve efficiencies , minimize costs • Grow organically – Extend or expand existing assets • Acquire complimentary infrastructure – From third party or from Enbridge Inc. – Target energy infrastructure with risk-return characteristics in keeping with the Fund’s current profile • Maintain diversified asset base over long-term Core Strategies Remain Unchanged Post Restructuring and the 2011 Asset Drop Down From Enbridge Inc. 4
CURRENT ASSET BASE A Diversified Portfolio of Low Risk Energy Infrastructure Primary Business Throughput Current Revenue Contract Segment Capacity Generation Model Term Expiry 1.6 Bcf/day Gas Transmission Cost of Service 2015 (1.325 Bcf/day firm service) Crude Oil & Cost of Service 255,000 barrels/day N/A Liquids Fixed Transportation 145,000 barrels/day 2023 Fee Transportation Fixed Price PPA’s Green Power 405 MW/Day 2017 - 2031 5 5
NATURAL GAS TRANSMISSION Alliance Canada Solid Fundamentals will Drive Alliance Re-Contracting Post 2015 Liquids Rich Shale Gas Production in Alliance Footprint Strategically Positioned to Gather Rich Gas 9 Montney Duvernay Bakken 6 Bcf / d 3 Current Total Capacity - Alliance Canada Current Firm Service (Tolled) Capacity - Alliance Canada 0 2010 2015 2020 2025 Alliance’s Rich Gas Advantage Competitive toll on dry gas basis, before NGL value is considered • High pressure and dense phase system TC Status Quo 2013 FTR (AB) • Unique ability to cost-effectively transport liquids- TC Restructured 2013 NIT to TC rich gas TC to Dawn Examples all are: AB Receipt Point to Dawn • NGLs processed by Aux Sable in Chicago command APL AB GZ rich gas premium Current: APL TZ (Can) Alliance plus Vector • Lower upstream investment in processing for APL TZ (US) Recontracting Proposal: Alliance plus Vector producers Vector $0.00 $1.00 $2.00 $3.00 • Higher all-in netbacks for high energy gas per MMBtu 6
GREEN POWER GENERATION Diversified Portfolio 2012 Cash Flow Sensitivity Asset Location Capacity Capacity Capacity Pre-Tax Factor Factor Cash Flow 2012 YTD CAFD (P50) (P75) Impact (P75) Ontario Wind Ontario 190 MW 30% 28% ~ $3 MM Talbot Wind Ontario 99 MW 35% 33% ~ $2 MM Actual Sarnia Solar Ontario 80 MW 17% 16% ~ $3 MM Acquisition Magrath Wind Alberta 30 MW 36% 34% Immaterial Assumption Chin Chute Alberta 30 MW 38% 36% Immaterial Wind* Q1 Q2 Q3 YTD Sunbridge Saskatchewan 11 MW 39% 37% Immaterial Wind Assets are Performing Reliably and As Expected 7
CRUDE OIL & LIQUIDS TRANSPORTATION Bakken Production Drives New Investment & Long-Term Growth System Toll Methodology Regulator Recent & Planned Expansion Westpur Cost of Service Formula NEB Capacity Capital Costs In-Service Increase Saskatchewan Cost of Service Formula Saskatchewan Gathering Phase 1 98,000 bpd $36 M 2007 Weyburn Market Based Saskatchewan Phase 2 125,000 bpd ~$158 *M 2010 Virden Market Based Manitoba BEP 145,000 bpd ~$190* M 2013 BEP Long - Term Contract NEB *estimated costs Total Bakken Production (North Dakota, Saskatchewan and Manitoba) 2,000 ‘000 barrels per day 1,500 1,000 500 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Bakken Expansion Program (BEP) 8 8
RECENTLY ANNOUNCED TRANSACTION On October 25, 2012, Enbridge Income Fund announced that it had entered into an agreement to acquire a portfolio of renewable power generation and crude oil storage assets from Enbridge Inc. for an aggregate price of $1.164 billion . The acquisition remains subject to approval of the public (non-Enbridge) shareholders of Enbridge Income Fund Holdings Inc. and other regulatory consents. Shareholder approval will be sought at a meeting to be held December 7, 2012 and, if approved, the transaction would close shortly thereafter. The acquisition is consistent with the Fund’s strategy and investor value proposition 9
RECENTLY ANNOUNCED PENDING ASSET ACQUISITION TRANSACTION Proposed Asset Acquisition Reinforces the Fund’s Low Risk Profile Fort St. John Fort McMurray Alliance Canada Pipeline (50%) Hardisty Contract Terminals Edmonton Hardisty Storage Caverns Chin Chute (33%) Greenwich Calgary Regina Magrath (33%) Cromer SunBridge (50%) Montreal Saskatchewan Ottawa Kincardine Crude Oil Pipeline System Talbot Wind Project Toronto Sarnia Solar Project Tilbury Amherstburg Waste Heat Facility Asset Capacity Contract Structure Remaining Contract Life Hardisty Contract Terminals 7.5 millions barrels Fully Contracted 2-9 years + Additional 15 years (19 above ground tanks) (take-or- pay), 80% of revenue with Enbridge Hardisty Storage Caverns 3.5 million barrels Fully Contracted ~8 years + Additional 15 years (4 below ground caverns & 2 above ground tanks) (take-or- pay) with Enbridge Greenwich Wind Project 99 MW Fixed Price OPA PPA 19 years Amherstburg Solar Project 15 MW Fixed Price OPA PPA 19 years Tilbury Solar Project 5 MW Fixed Price OPA PPA 18 years 10 TOTAL ~ 100% 20+ years
RECENTLY ANNOUNCED TRANSACTION Credit Perspective Portfolio of High Quality, Operating Assets … Long Term fixed price take-or-pay/fee for service off take contracts Strong, investment grade counterparties Fixed price O&M contracts Minimal maintenance capex requirements BBB(H) Rating Re-Affirmed Further diversifies asset base and sources of cash flow Enhances scale Extends average term of contracted assets Reinforces low risk value proposition Accretive to cash flow 11
RECENTLY ANNOUNCED TRANSACTION Financing Plan Equity Financing (50%): $582 Million Public Shareholders EIFH Common Shares: $222 Million (Subscription Receipts issued Nov 14, 2012) v EIFH Common Shares: $55 Million EIF Common Units: $277 Million ECT Preferred Units: $305 Million 10-Year Pre-Payable Term Loan: $582 Million Term Loan Refinancing: TBD Debt Financing (50%): $582 Million Conservative Leverage Given Underlying Business Risk 12
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