Investor Presentation Canadian Utilities Limited March 2026 Legal notice Forward-looking information advisory Certain statements made by company representatives and information provided in this presentation may be considered forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", "goals", "targets", "strategy", "future", "potential" and similar expressions. Such in ...

Core Insights - H2O America reported a revenue increase driven by rate adjustments and higher water supply revenues, but faced higher production expenses and operational costs, impacting net income [1][2][3] Financial Performance - The company achieved full-year 2025 diluted EPS of $2.92 and adjusted diluted EPS of $2.99, compared to $2.87 and $2.95 in 2024, respectively, with the adjusted result near the top of the guidance range [3] - Adjusted EPS increased by $0.04 year-over-year, with revenue rising by $1.42 per share, primarily from rate increases and higher pass-through water supply revenues [2][3] Capital Expenditure and Growth Plans - H2O America expanded its five-year capital expenditure plan to $2.7 billion, a 31% increase, focusing on pipeline replacement, PFAS treatment costs, and Texas investments [6][8] - The company plans to raise $100 million to $125 million in equity in 2026 to fund its standalone capital program [5][11] Rate Base and EPS Guidance - The estimated consolidated rate base is projected to grow from nearly $2.8 billion at year-end 2025 to $5.1 billion by year-end 2030, indicating a 13% compound annual growth rate [9] - For 2026, standalone EPS guidance is set at $3.08 to $3.18, excluding impacts from pending acquisitions [11][12] Acquisition Updates - H2O America is pursuing the acquisition of Quadvest for approximately $540 million, with a planned close in mid-2026, which could increase its Texas customer base significantly [5][15] - The Cibolo Valley Wastewater Treatment Plant acquisition is also in progress, expected to close in Q4 2026 [16] Regulatory Developments - The company is actively engaging in regulatory mechanisms across its operating states, including California's cost of capital deferral and Connecticut's Water Quality and Treatment Adjustment [17][19] - In Texas, new legislation aims to streamline rate case processes and enhance infrastructure surcharge applications [20] Affordability Initiatives - H2O America emphasizes affordability, with average bills being 1% or less of median household income, and plans to expand customer assistance programs [22]

Q4 2025 EARNINGS CONFERENCE CALL February 12, 2026 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-looking information"). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business ...

Financial Data and Key Metrics Changes - Q4 consolidated adjusted EBITDA was $248.6 million, down 5.2% from the prior year [37] - Fourth quarter adjusted net earnings were $45.2 million, down from $81.3 million in 2023 [39] - Full-year adjusted net earnings were $232.1 million, down from $279.4 million in 2023 [40] - Adjusted net earnings per share for Q4 were $0.06 versus $0.12 in the prior year [42] - Year-end GAAP debt was approximately $8.05 billion, with expectations to reduce it by an estimated $1.95 billion from the sale of the renewables business [45] Business Line Data and Key Metrics Changes - Regulated adjusted EBITDA was $234.4 million in Q4, up 2.4% from 2023 [38] - Full-year regulated adjusted EBITDA was $940.2 million, up 4.2% from 2023 [38] - The decline in consolidated adjusted EBITDA was primarily due to a lower dividend from Atlantica and certain corporate allocations [38] Market Data and Key Metrics Changes - The company completed the sale of its renewables business for approximately $2.1 billion, reflecting a significant transition to a pure-play regulated utility [22][26] - The rate base increased to approximately $7.8 billion from $7.2 billion a year earlier, driven by spending and invested capital [46] Company Strategy and Development Direction - The company aims to improve operational efficiency and customer service while focusing on its regulated utilities [22][25] - The leadership transition is expected to bring a renewed focus on creating sustainable value and improving returns on equity [11][17] - The company is committed to achieving its authorized return on equity of 9.2% and addressing regulatory lag [23][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to accelerate performance and earnings, particularly as a pure-play regulated utility [51][54] - The company views 2025 as a transition year with opportunities for growth above peer averages [52] - Management acknowledged challenges related to customer service and billing issues stemming from the implementation of a new IT platform [32][90] Other Important Information - The company has engaged a national firm to search for a permanent CFO following Darren Myers' departure [20] - The transition to a pure-play regulated utility is seen as a critical milestone in the company's strategic review [22] Q&A Session Summary Question: Optimization of the utility platform - Management highlighted efforts to reduce overhead and improve accountability within utilities as key focus areas for operational efficiency [58][59] Question: Long-term EPS growth potential - Management indicated that the targeted dividend payout ratio of 60% to 70% could be achieved in a few years, with potential for acceleration under new leadership [62][63] Question: Hydro sales process - Management confirmed plans to go to market within the half year for the Hydro sales process, emphasizing no dilutive transactions [69] Question: Rate base growth and adjustments - Management clarified that the increase in rate base was primarily due to IT platform investments, with no significant further adjustments expected [72] Question: Transition expenses related to renewables - Management noted that some costs related to exiting the renewables business would persist into 2025 but are not expected to be ongoing [76] Question: Customer service technology platform issues - Management acknowledged the challenges faced with the new SAP implementation but expressed confidence in future improvements [90][91] Question: Key areas of focus for the new CEO - The new CEO emphasized aligning stakeholders and focusing on areas with quick opportunities for productive capital deployment [96][97] Question: Regulatory strategy and ROE gap - Management discussed the importance of managing cost structures internally to bridge the gap between realized and allowed ROEs [112][114]