Balanced, focused, disciplined and well positioned

Throughout 2014, we remained focused on executing our strategy by delivering safe, reliable transmission and distribution services to The City of Calgary, while working to grow our competitive generation assets and retail business in Alberta.

Our net earnings from continuing operations were $155 million and we continued to deliver value to our shareholder through a $60 million dividend paid to The City of Calgary. We have always been focused on managing our costs, so with the downturn in the economy at the end of 2014, we were well positioned to weather these market conditions. We remain focused on delivering strong value for our customers and shareholder.

We thank you for your continued support and hope you find our financial report informative.

$410MAdjusted EBITDA

$4.8B Total Assets (up 6% from 2013)

$155MNet Earnings

Financial overview

The story of ENMAX in 2014 is about building for tomorrow while tackling the challenges and opportunities of today – and through it all, delivering value for our customers and our Shareholder.

$3.3BTotal Revenue

$60MDividends to the City paid in 2014

$386Mfunds from operations (increase of 7.3%)

Overall highlights

(millions of dollars, except where otherwise noted)	2014	2013
Revenues	3,348.3	3,416.6
Operating margin⁽¹⁾	767.7	818.4
Comparable net earnings⁽¹⁾	339.0	299.4
Net earnings	155.0	352.5
Net earnings from continuing operations	155.0	173.4
Adjusted earnings before interest, income tax, depreciation and amortization (Adjusted EBITDA)⁽¹⁾	410.0	377.7
Earnings before interest and income taxes (EBIT)⁽¹⁾	201.4	204.5
Funds from operations ⁽¹⁾	386.0	359.7
Cash flow from operations ⁽¹⁾	434.3	204.7
Total assets	4,841.6	4,565.5
Return on assets ⁽²⁾	7.1%	7.0%
Return on equity ⁽³⁾	7.4%	7.9%
Total recordable injury frequency (TRIF) ⁽⁴⁾	0.49	0.90
Capital additions	616.2	502.3
Electricity sold to customers (Gigawatt hours [GWh])	20,653	20,889
Employees (#) ⁽⁵⁾	1,900	1,846

(1) Non-GAAP financial measure. See discussion that follows in the Management’s Discussion & Analysis (MD&A).

(2) Return on assets (ROA) is equal to net earnings before after-tax interest charges divided by average total assets (adjusted for capital assets under construction and current liabilities) for the year. ROA excludes Kettles impairment of $29.8 million in Q4 2014 and the $175.9 million gain on sale of Envision recorded in Q2 2013.

(3) Return on equity (ROE) is equal to net earnings divided by average shareholder’s equity for the year. ROE excludes Kettles impairment of $29.8 million in Q4 2014 and the $175.9 million gain on sale of Envision recorded in Q2 2013.

(4) TRIF indicates the rate of injuries at ENMAX, including lost-time incidents, restricted work injuries and medical aids. It is calculated as the number of injuries multiplied by 200,000 (approximate number of hours worked by 100 workers in a year) divided by total number of hours worked.

(5) Employee count is total employees.

All customers are free to purchase natural gas services from the default supply provider or from a retailer of their choice and to purchase electricity services from the regulated rate provider or from a retailer of their choice. The delivery of natural gas and electricity to you is not affected by your choice. If you change who you purchase natural gas services or electricity services from, you will continue receiving natural gas and electricity from the distribution company in your service area. For a current list of retailers you may choose from, visit www.ucahelps.alberta.ca or call 310-4822 (toll free in Alberta).

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