Emera (EMA) Investor Update summary

Strategic growth and guidance update

• Introduced new three-year average EPS growth target of 5%-7% through 2027, based on 2024 consensus.

• Extended 7%-8% rate base growth guidance over five years, now through 2029.

• Adjusted dividend growth rate guidance to 1%-2% to reallocate capital toward high-growth opportunities and reduce payout ratio to ~80% by end of 2027.

• Capital program to focus 75% of investments in Florida, with additional growth in New Mexico and Nova Scotia, supporting electrification, reliability, and decarbonization.

• Dividend growth rate change does not affect the current dividend amount; commitment to dependable, growing dividends remains.

Financial strength and capital allocation

• Achieved significant balance sheet improvements through asset sales, debt reduction, and hybrid note issuance, reducing consolidated debt by ~$2 billion.

• Closed CAD 1.19 billion Labrador-Island Link sale, meeting asset sale funding target and supporting an $8.8 billion capital investment plan for 2024-2026.

• Completed $500 million hybrid note issuance, using proceeds to repay maturing debt and improve credit metrics.

• Targeting cash flow to debt metrics above 12% and holding company debt to total debt ratio below 35%.

• Maintains disciplined approach to capital allocation and portfolio optimization to maximize shareholder value.

Portfolio optimization and future outlook

• Continual portfolio review for capital recycling opportunities, returning to ordinary course discipline after focused asset sale efforts.

• Second asset sale process remains active but is not required to achieve 2024 credit or EPS guidance.

• Funding plan includes internally generated cash, operating company debt, equity, and select asset sales.

• Additional catalysts include pending rate case decisions in New Mexico and Florida, and further fuel securitization in Nova Scotia.

• Emphasizes industry trends such as decarbonization, electrification, and climate resilience as key growth drivers.