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7/29/2019 AGM Presentation TransCanada
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TransCanada Corporation
Annual Meeting of Shareholders
Russ Girling, President & CEO
April 27, 2012
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Delivering Critical Energy Infrastructure
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Our Mission
To provide reliable supplies of energy
across the continent, safely and responsibly.
We are proud that millions of North Americans
can depend on us for the energy they need.
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Leading North American EnergyInfrastructure Company
One of North Americas Largest Natural GasPipeline Networks
68,500 km (42,500 mi) of pipeline
Average volume of 14 Bcf/d
North Americas 3rd Largest Natural GasStorage Operator
380 Bcf of capacity
Canadas Largest Private SectorPower Generator
20 power plants, 10,900 MW
Premier North American Oil Pipeline System
1.4 million bbl/d ultimate capacity
Enterprise Value ~ $55 billion
4,400 Employees
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1. Maximize the Value of Existing Assets
2. Complete Current $13 Billion Capital Program
3. Maintain Financial Strength and Flexibility
4. Invest in Future Low-Risk Growth Opportunities
Our Priorities
Strategy is Working
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Low-risk energy infrastructure assets
All cost of service or contractedrevenue streams
Generating predictable, long-lifeearnings and cash flow
$10 Billion of Assets Placed In-ServiceSince Second Quarter 2010
($Billions)
Capital Placed
In-Service
Estimated
Annual
EBITDA
Oil Pipelines 6.0 0.7
Gas Pipelines 2.0 0.2
Energy 1.8 0.2
9.8 1.1
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Keystone: a Premier Oil Pipeline System
($Billions)
Capital Placed
In-Service
Estimated
Annual
EBITDA
Oil Pipelines 6.0 0.7
Gas Pipelines 2.0 0.2
Energy 1.8 0.2
9.8 1.1
US$6 billion investment
591,000 bbl/d capacity
530,000 bbl/d or 90 per cent contracted
for an average term of 18 years
Safely transported over 175 million
barrels of oil to date
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Connecting New Gas Supply
($Billions)
Capital Placed
In-Service
Estimated
Annual
EBITDA
Oil Pipelines 6.0 0.7
Gas Pipelines 2.0 0.2
Energy 1.8 0.2
9.8 1.1
Added 1,265 km (787 mi) of
gas pipelines in 2010 and 2011
Cost of service or long-term contracted
Generating predictable, long-life
earnings and cash flow
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Building a Stable Energy Asset Base
($Billions)
Capital Placed
In-Service
Estimated
Annual
EBITDA
Oil Pipelines 6.0 0.7
Gas Pipelines 2.0 0.2
Energy 1.8 0.2
9.8 1.1
Added 1,549 MW of capacity in 2010
and 2011
Long-term contracts with stable,
predictable earnings and cash flow
Strong counterparties
No commodity risk
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Financial Highlights Year ended December 31
2010 2011
Funds Generated from Operations
($Millions)
2010 2011
Earnings per Share
(Comparable)
$1.97$2.22
$3,059$3,488
13% I ncrease 14% I ncrease
Presented in accordance with U.S. GAAP
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Dividends Per Common Share
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12E
$1.76*
$0.80
7% CAGR
Track Record of Dividend Growth
* annualized based on second quarter declaration
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First Quarter 2012 Financial Highlights
$Millions
Per Common
Share
Comparable Earnings 363 $0.52
Funds Generated from Operations 841 $1.19Common Dividends Declared 310 $0.44
Presented in accordance with U.S. GAAP
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Projects in Advanced Stages of Development:Expected In-Service 2012-2015
* TransCanada share in Canadian dollars. Excludes small projects, maintenance capital and interest during construction.
$13 Billion of Critical Energy I nfrastructure Assets
$3.0
$2.2$7.8
Oil Pipelines
Energy
Gas Pipelines
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Expected
Capital Cost
(US$Billions)
Expected
In-Service
Date
Gulf Coast Project 2.3 mid to late 2013
Keystone XL 5.3 late 2014/ early 2015
Marketlink Projects 0.2 late 2014/ early 2015
7.8
Gulf Coast Project proceeding
Keystone XL Presidential Permit applicationimminent
Nebraska re-route well underway
Ultimate capacity 830,000 bbl/d
Contracted over 600,000 bbl/d
Gulf Coast Project and Keystone XL
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6,200 MW, eight unit site with restart of Bruce A Units 1 & 2
$2.4 billion investment (TransCanada share) in Units 1 & 2
Refurbishment of Units 2 & 1 scheduled to be complete in Q2 and Q3 2012
Power sold to the Ontario Power Authority under long-term contract
Bruce Power
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Other Critical Energy Infrastructure Projects
$2.8 billion of gas pipelines, solar and wind energyexpected to come online between 2012-2015
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0
1
2
3
4
5
6
7
2010A 2011A 2015E
Capital Program Drives Growth
Canadian Gas Pipelines U.S. Gas Pipelines Energy & Corporate Oil Pipelines
$Billions
31%
16%
25%
28%
EBI TDA Expected to Grow by $1.6 Billion
42%
21%
24%
13%
51%
25%
24%
Presented in accordance with U.S. GAAP
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Capital Program Drives Growth
0
1
2
3
4
5
2010A 2011A 2015E
Funds Generated from Operations
$3.1$3.5
Capacity to Fund Additional Grow th
$4.5
$Billions
Presented in accordance with U.S. GAAP
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North America Needs SubstantialNew Energy Infrastructure
Source: International Energy Agency (IEA) World Energy Outlook 2010
$1.7
$1.4
$2.8
PowerGas
Oil
Cumulative I nvestment in Energy Supply
I nfrastructure by Fuel($Trillions) ( 2010-2035)
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Oil Pipeline Opportunities
Keystone pipeline system providessignificant platform for long-term growth
Future growth to come from:
Oil sands growth
U.S. shale oil growth
Connecting to new markets
South
East
West
Other transportation services
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Connect Northerngas to market
Connect WCSB gas to
market, including potentialWest Coast export markets
Expand Mexicosgas network
Connect U.S. shalegas to market
Natural Gas Pipeline Opportunities
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Coal PPAs15%
Wind
5%
Natural
Gas
51%
Nuclear
23%
Hydro
5%Solar
1%
Energy Opportunities
Natural gas-fired power generation
Renewables: Hydro, Wind and Solar
Nuclear Refurbishments: Bruce Units 3-8
Power Transmission
Natural Gas Storage
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Infrastructure Re-investment and Safety
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Commitment to Stakeholders
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Plan is Working
Visible Growth Financial Capacity to Fund Capital Program
Expertise to Deliver Results
Significant Long-term Growth Opportunities
Key Takeaways
Growth in Earnings, Cash Flow and Dividends w ill
Generate Superior Total Shareholder Returns
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Delivering Critical Energy Infrastructure
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TransCanada Corporation
Annual Meeting of Shareholders
Russ Girling, President & CEO
April 27, 2012
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