Enbridge Income Fund Holdings Inc. Positioned for Industry Leading Growth May 2015
Forward Looking Statements Designed for Strength and Stability 3
Operating as Designed Recently completed 1.76 B acquisition and 12.1% dividend increase Largest drop down in the Funds history and third in the past 4 years Acquired assets performing as expected Acquisition attributes consistent…
Alliance Pipeline U.S. Successful re-contracting strategy Alliance Pipeline U.S. Benefits Increased stake in key natural gas and NGL infrastructure Connectivity to prolific liquids-rich Bakken play Expansion capability to 2.1…
Southern Lights Pipeline Long-term contracted low-risk cash flow Southern Lights Benefits Scheduled quarterly distributions for 25 years Key supply source for Oil Sands diluent demand Enbridge Inc. to continue to fund maintenance…
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Transformational Drop Down Opportunity Projected dividend growth of 10% per year Enbridge Inc. has proposed to transfer its Canadian Liquids Pipelines business and remaining Canadian renewable assets to the Fund. Canadian Liquids…
Transformational Drop Down Opportunity Enhances ENFs value proposition Value Drivers Transformational, creating best-in-class Canadian liquids infrastructure entity Higher future dividend growth (10%) and transparency Strong…
Transformational Drop Down Opportunity Canadian Liquids Pipeline Assets - Mainline Asset description Six adjacent pipelines originating in western Canada that deliver into the US system Lines 7, 8, 9, 10 and 11 that deliver into…
Transformational Drop Down Opportunity Canadian Liquids Pipeline Assets Regional Pipelines Asset description Wood Buffalo Pipeline Waupisoo Pipeline Athabasca Pipeline Woodland Pipeline 50% Norealis Pipeline Athabasca Twin…
Transformational Drop Down Opportunity Transparent, reliable and low-risk embedded growth capital plan Alberta Regional Norealis Pipeline 15B Surmont Phase 2 Expansion Woodland Pipeline Extension By in-service date AOC…
Transformational Drop Down Opportunity Canadian Liquids Pipeline Assets Renewable Assets Initial Capacity Wind Assets Ownership In-Service Date Commercial Contracts (MW) Long term production hedge for 75% Blackspring Ridge 300…
ENF Expected DPS Growth Meaningful and visible dividend growth Currently 1% annual growth, supplemented with ad hoc drop downs Enbridge anticipates approximately 10% 2015 2019 DPS CAGR 1.54* 2015 2019e * Expected…
Strengthening Valuation ENFs valuation has improved and is trading in-line with peer group September 30, 2014 December 31, 2014 4.5% 4.1% 4.1% 4.1% 3.8% Peer Avg. = 3.9% 3.7% 3.7% 3.5% Peer Avg. = 3.5% 3.2% Dividend Yield…
Enhanced Market Liquidity Annual Average Daily Trading Volumes ENFs Liquidity continues to improve Increasing presence in the Canadian equity market Growing public float providing increased trading liquidity 130,000 Recent…
Established Value Proposition Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor 18
Strong Total Shareholder Returns Total Shareholder Return 5 year ENF Midstream Peer Avg TSX Comp. 350 Sept 2014 ENF CAGR = 24.5% Dec 2012 Dec 2012 Oct 2011 Announces 12.1% Acquires crude oil 8.0% dividend dividend increase…
Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor
Diversified Asset Base Low risk energy infrastructure assets Natural Gas Transmission Liquids Transportation and Storage Green Power Generation 22
Liquids Transportation and Storage Strategically located Western Canadian crude oil infrastructure Capacity Pipeline Assets (kbpd) Saskatchewan Gathering 255 Weyburn System 47 Westspur System 255 Bakken Expansion Pipeline…
Green Power One of Canadas largest suppliers of environmentally friendly power Western Assets Asset Location Capacity Interest Greenwich Wind Ontario 99 MW 100% Ontario Wind Ontario 190 MW 100% Talbot Wind Ontario 99 MW 100%…
Natural Gas Transmission Alliance Pipeline is well positioned to capture WCSB & Bakken liquids rich gas supply growth Revenue Uplift Opportunity Post 2015 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 2007 2008 2009 2010…
Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor
Low Risk Business Model Mitigate risk where possible Market Price Risk* Cash Available for Distribution Strong contractual support (CAFD) CAD ( million) Solid underlying fundamentals Disciplined growth Prudent financial…
Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor
Strong Distribution Growth Enbridge Income Fund distributions to Common Unitholders 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expected distribution paid by…
Strong Dividend Growth Long term dividend growth exceeding plan 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Taxable Distribution paid by Enbridge Income Fund prior…
Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor
Strong Sponsorship ENF benefits from the sponsorship of Enbridge Inc. Strategic Alignment Operational Expertise Asset operations Risk management systems and processes Project development costs and construction management…
Contact Information: Perry Schuldhaus, President Phone: (403) 508-3159 Email: perry.schuldhausenbridge.com http://www.enbridgeincomefund.com 33
Appendix
Current Asset Base Contract Profile Revenue generation models reinforce stability of cash flows Business Current Revenue Primary Contract Term Throughput Capacity Segment Generation Model* Expiry Fixed Price Green Power 530…
Current Ownership Structure Enbridge Income Fund Holdings Inc. (ENF) Enbridge Income Fund* Economic Economic Outstanding Units Outstanding Units** Interest Interest Public - Common Shares 56,349,000 80.1% ENF - Common Units…
Contract Life Supported by long-term contracts Contract Life Current Asset Base (years) Green Energy Assets 11 Saskatchewan Gathering 201 Westspur Pipeline 8 Weyburn Pipeline 202 Cromer Rail Interconnect 5 Bakken Pipeline 8…
Natural Gas Transmission 100% of targeted capacity has been re-contracted CDN + US 5-year 5-year New Services Offering is an attractive /MCF CDN at PAR Current 2013 New Firm Receipt Service - Z1 to ATP 0.42 0.42 market-focused…
Growing Liquidity Acquisitions and project related financing have increased trading liquidity and access to capital Active Publicly Traded Common Shares Long-term Outstanding Debt Debt* Term 3.0 2.5 200,000 Avg. Daily…
Fixed Incentive Fee Calculation - Based on Distribution from EIF Calculation as of Q1 2015 Incentive Fee = Base Incentive Amount + 25% x (Incentive Eligible Amount/75%) x (1-Tax Rate) (Incentive Eligible Amount (1.89-…
Illustrative EIF Funding Composition Potential Total Value of Transaction = 28 Billion* 10 Billion ** Equity: Transaction Day On-going (2016-2018) Preferred Units to ENB 16 billion 2 billion EIFH Common Shares to ENB 0.2 billion 0.6…
Strong Sell Side Support ENF 12-Month target prices and recommendations Broker/Analyst Current Target Price Recommendation BMO Capital Markets, Carl L. Kirst Research Restricted CIBC World Markets, David Noseworthy 46.00 Buy Credit…
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