INVESTOR PRESENTATION MAY 2019
LEGAL DISCLAIMER Statements made by representatives for ATCO Ltd. and 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 results may differ materially from those currently anticipated. ATCO Ltd. and Canadian Utilities Limited disclaim any intention or obligation to update or revise such statements. Due to the nature of the Corporation’s operations, quarterly revenues and earnings are not necessarily indicative of annual results. INVESTOR PRESENTATION MAY 2019
TABLE OF CONTENTS 1 ATCO Group Overview Page 5 2 Canadian Utilities Limited Page 11 Regulated Utility Businesses Page 16 Energy Infrastructure Businesses Page 21 3 Other ATCO Investments Page 31 Structures & Logistics Page 32 Neltume Ports Page 40 Commercial Real Estate Page 49 4 Appendix Page 51 INVESTOR PRESENTATION MAY 2019
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GROUP OVERVIEW 5
ORGANIZATIONAL STRUCTURE ATCO is a diversified global ATCO holding corporation with (TSX: ACO.X / ACO.Y ) approximately 6,000 employees ~$5 billion common and assets of $24 billion. equity capitalization INVESTOR PRESENTATION MAY 2019 6
ATCO FOCUS: GLOBAL ESSENTIAL SERVICES Energy Real Estate Housing Logistics & Water Transportation Agriculture INVESTOR PRESENTATION MAY 2019 7
CONTINUED DIVIDEND GROWTH ATCO Canadian Utilities $1.69 $1.62 per share per share 47 years of annual dividend increases 26 years of annual dividend increases* Longest track record of annual dividend increases of any Canadian publicly traded company* 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 * On April 4, 2019, ATCO declared a second quarter dividend of $0.4048 per share, or $1.62 per share annualized. *On April 4, 2019, Canadian Utilities declared a second quarter dividend of $0.4227 per share, or $1.69 per share annualized. INVESTOR PRESENTATION MAY 2019 8
ATCO CREDIT RATINGS DBRS S&P INVESTOR PRESENTATION MAY 2019 9
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CANADIAN UTILITIES ENERGY INFRASTRUCTURE 11
ORGANIZATIONAL STRUCTURE CU Inc. Canadian Utilities ~$8 billion (TSX: CU / CU.X) debt ~$10 billion common capitalization equity capitalization INVESTOR PRESENTATION MAY 2019 12
HIGH QUALITY EARNINGS 2018 ADJUSTED EARNINGS 86% Regulated Earnings 14% Long-term Contracted Earnings INVESTOR PRESENTATION MAY 2019 13
GROWTH: RECORD ADJUSTED EARNINGS IN 2018 INVESTOR PRESENTATION MAY 2019 14
GROWTH: ADJUSTED EARNINGS Utilities Energy Infrastructure Businesses INVESTOR PRESENTATION MAY 2019 15
UTILITY ADJUSTED EARNINGS INVESTOR PRESENTATION MAY 2019 16
ALBERTA DISTRIBUTION UTILITY ADJUSTED EARNINGS INVESTOR PRESENTATION MAY 2019 17
GROWTH: 2019 – 2021 CAPITAL INVESTMENT INVESTOR PRESENTATION MAY 2019 18
RATE BASE GROWTH Mid-Year Rate Base Regulated Capital Investment Expected to Grow 4% per year $1.2B $1.2B $1.1B $11.9B $12.5B $12.9B $13.4B $1.1B $1.2B $10.3B $1.1B $8.9B $1.5B $2.2B $2.3B 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 2014 2015 2016 2017 2018 2019 2020 2021 INVESTOR PRESENTATION MAY 2019 19
REGULATORY UPDATE Electric Transmission 2018 2019 2020 2021 Hanna Region Decision Decision Decision Development Deferral Expected Expected Expected Application 2018 2019 2020 2021 Electric Transmission Decision Decision Decision 2018 to 2019 General Expected Expected Expected Tariff Application (GTA) 2018 2019 2020 2021 Gas Transmission Decision Decision 2019 to 2020 Decision 2019 to 2020 General GRA filed Expected Expected Expected Rate Application (GRA) 2018 2019 2020 2021 Information Technology Decision Decision Decision Expected Expected Expected Common Matters (2015-?) 2018 2019 2020 2021 2021 to 2022 Generic Decision Decision Decision Expected Expected Expected Cost of Capital (GCOC) 2018 2019 2020 2021 Gas Distribution Australia Decision Decision Decision 2020 to 2024 Access Expected Expected Expected Arrangement (AA5) INVESTOR PRESENTATION MAY 2019 20
ENERGY INFRASTRUCTURE BUSINESSES ELECTRICITY GENERATION ELECTRICITY GENERATION ELECTRICITY GENERATION CANADA AUSTRALIA MEXICO 24 MW 176 MW 41 MW INDUSTRIAL WATER SERVICES HYDROCARBON STORAGE NATURAL GAS STORAGE CANADA CANADA CANADA 85,200 m 3 /day 400,000 m 3 52 PJ INVESTOR PRESENTATION MAY 2019 21
GROWTH: ENERGY INFRASTRUCTURE INVESTOR PRESENTATION MAY 2019 22
GROWTH: ENERGY INFRASTRUCTURE Disciplined capital Higher Alberta recycling with sale Power Market Alberta PowerLine project of U.K. Barking Prices ($/MWh) completed ahead of schedule Power Assets INVESTOR PRESENTATION MAY 2019 23
ALBERTA POWERLINE Fort McMurray West 500 kV Transmission Project Target energization date was June • 2019 on this $1.6 Billion project. Construction was completed and • transmission line was energized three months ahead of schedule in March 2019. This resulted in $13 million of early energization incentive earnings. Strategic review of Canadian • Utilities ownership interest in Alberta PowerLine is underway. * More information is available at www.albertapowerline.com INVESTOR PRESENTATION MAY 2019 24
CANADIAN ELECTRICITY GENERATION SALE On May 27, 2019 Canadian Utilities entered into definitive • agreements to sell the Canadian fossil fuel-based power generation portfolio for approximately $835 million Selling 12 coal-fired and natural gas-fired electricity generation • assets located in Alberta, British Columbia, Saskatchewan and Ontario, with generating capacity of approximately 2,300 MW The sale is expected to close in the second half of 2019, • subject to regulatory approval Proceeds will help to improve balance sheet strength in the • near term INVESTOR PRESENTATION MAY 2019 25
ELECTRICITY GENERATION POST SALE Expanding Renewable Generation Capabilities Highly Contracted Portfolio Merchant 24 MW (10%) Hydro 59 MW (25%) Long-Term Natural Gas Contracted 182 MW 217 MW (75%) (90%) INVESTOR PRESENTATION MAY 2019 26
ELECTRICITY GENERATION POST SALE INVESTOR PRESENTATION MAY 2019 27
STORAGE & INDUSTRIAL WATER GROWTH We build, own and operate non-regulated industrial water, natural gas storage, hydrocarbon storage, and NGL related infrastructure • 85,200 m 3 /day water infrastructure capacity 400,000 m 3 hydrocarbon storage capacity • 52 PJ natural gas storage capacity • • ~ 116 km pipelines Heartland Industrial Water System Industrial Water • Long-term commercial agreement to provide water services commencing in 2020 to Inter Pipeline’s PDH plant Natural Gas & Hydrocarbon Storage Potential to develop up to 40 salt caverns for NGL and hydrocarbon • storage Heartland Salt Caverns INVESTOR PRESENTATION MAY 2019 28
CANADIAN UTILITIES SUMMARY 2018 Adjusted Earnings International Natural Gas Distribution Natural Gas Transmission Natural Gas Distribution Electricity Transmission Electricity Distribution Ongoing Capital High Quality Track Record of Earnings Investment Driving Dividend Growth Utility Asset Growth INVESTOR PRESENTATION MAY 2019 29
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OTHER ATCO INVESTMENTS 31
STRUCTURES & LOGISTICS Modular Structures Workforce Housing & Space Rentals • Permanent modular construction • Mobile office trailers • Relocatable modular buildings Logistics and Facility O&M Services Lodging & Support Services • Facility operations • Lodging, catering • Maintenance services • Maintenance • Emergency management & disaster • Waste management response services INVESTOR PRESENTATION MAY 2019 32
STRUCTURES & LOGISTICS ADJUSTED EARNINGS $15M $6M 2017 2018 INVESTOR PRESENTATION MAY 2019 33
STRUCTURES & LOGISTICS Modular Structures increased rental utilization by 13 per cent 70% 63% 57% 2016 2017 2018 INVESTOR PRESENTATION MAY 2019 34
STRUCTURES & LOGISTICS Winning key Modular Structures contracts LNG Canada Workforce Accommodation • 4,500 person camp construction underway to house construction workers on LNG Canada’s facility in Kitimat, B.C. Coastal Gaslink Pipeline • 3 camps serving providing operational and support services for pipeline workers across northern B.C. • Chico, California fire disaster relief 1,500 person camp for fire disaster relief efforts near Paradise, California Tuscan Ridge Lodge, Paradise, California INVESTOR PRESENTATION MAY 2019 35
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