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Economic Scorecard
The Economic Performance Scorecard reports the progress we made in 2011 from the previous year in key CSR economic performance areas that are of highest importance to us as a company and to our stakeholders. It also includes a detailed commentary to provide context and data. Click here to download a PDF copy of the Scorecard.We hope that you find this Scorecard informative. We welcome your feedback.
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Objectives |
2011 Results |
2010 Results |
Challenges |
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1. Deliver superior long-term value to Enbridge shareholders as measured by Total Shareholder Return (TSR) |
40% TSR in 2011 (for more details, please see Part 1 of the Economic Scorecard Commentary below) |
20% TSR (for more details, please see the 2011 CSR report) |
Enbridge’s value proposition is based on maintaining a reliable business model. However, Enbridge’s business activities are subject to various risks. For details about Enbridge’s risk profile, please see the section titled ‘Risks’ below, as well as GRI Performance Indicator section ‘EC2’. For additional details on Enbridge’s risk management practices and principal risks, please see the Risk Management section of Enbridge Inc.’s 2011 Annual Report. |
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2. Demonstrate high-quality |
11% growth to $1.48 in adjusted earnings per common share (for more details, please see Part 2 of the Economic Scorecard Commentary below) |
13% growth to $1.33 in adjusted earnings per common share (for more details, please see the 2011 CSR Report) |
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3. Payout a high proportion of |
$0.98 per common share, an increase of 15% from 2010 (for more details, please see Part 3 of the Economic Scorecard Commentary below) |
$0.85 per common share, up 15% from 2009 year (for more details, please see the 2011 CSR Report) |
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4. Establish a long-term track |
Invested $13.0 million in more than 550 charitable, non-profit and community organizations (for more details, please see Part 4 of the Economic Scorecard Commentary below) |
Invested $11.5 million in more than 350 charitable, non-profit and community organizations (for more details, please see the 2011 CSR Report) |
Economic Scorecard Commentary - 2011
Note: Where relevant, figures in this commentary section have been adjusted to account for the 2-for-1 stock split that took effect on May 20, 2011.
1. DELIVER SUPERIOR LONG-TERM VALUE TO ENBRIDGE SHAREHOLDERS AS MEASURED BY TOTAL SHAREHOLDER RETURN (TSR)1.
During 2011, Enbridge achieved a solid 40 per cent TSR as a result of the company’s continued growth prospects, increasing dividend, and its lower risk profile when compared to its Peer Group2 and the broader market index. Enbridge’s Peer Group averaged a TSR performance of 11 per cent during 2011, while the TSX index actually lost ground during 2011. Further, over a longer term horizon (three, five and 10 years), Enbridge has consistently outperformed both the TSX index and the Peer Group as indicated in the chart below.
2. DEMONSTRATE HIGH-QUALITY AND SUSTAINABLE EARNINGS PER SHARE GROWTH.
The diversity of Enbridge’s businesses and strategic positioning of its assets contribute to the reliability of the company’s growth. Adjusted earnings3 per share (EPS) grew 11 per cent in 2011, and are expected to grow by 10+ per cent per year on average through the middle of the decade. In addition, Enbridge’s track record for EPS growth over the last decade has averaged close to 10 per cent per year as indicated in the chart below.
*2012 earnings per share guidance range: $1.58 to $1.74.
3. Adjusted Earnings: This document contains references to adjusted earnings/( loss), which represent earnings or loss applicable to common shareholders adjusted for non-recurring or non-operating factors on both a consolidated and segmented basis. Management believes that the presentation of adjusted earnings/(loss) provides useful information to investors and shareholders as it provides increased transparency and predictive value. Management uses adjusted earnings/(loss) to set targets, assess performance of the company and set the company’s dividend payout target. Adjusted earnings/(loss) and adjusted earnings/(loss) for each of the segments are not measures that have a standardized meaning prescribed by Canadian GAAP and are not considered GAAP measures; therefore, these measures may not be comparable with similar measures presented by other issuers. See the Non-GAAP Reconciliations section on page 76 of the 2011 year end Management Discussion & Analysis for a reconciliation of the GAAP and non-GAAP measures.
3. PAYOUT A HIGH PROPORTION OF EARNINGS IN THE FORM OF A GROWING DIVIDENE STREAM TO ENBRIDGE SHAREHOLDERS.
Enbridge’s record in this category is unmatched in its sector. The 15 per cent dividend increase the company announced in December 2011 was its 17th consecutive annual increase. Over the last decade, Enbridge’s dividend growth has significantly outperformed that of its peers and the company is focused on continuing this performance. It is expected that dividend growth will track or exceed earnings growth through the middle of the decade.
4. ESTABLISH A LONG-TERM TRACK RECORD OF GROWTH IN SUPPORTING THE COMMUNITIES IN WHICH ENBIRDGE OPERATES.
In 2011, Enbridge invested $13 million in charities, non-profit and community organizations. This investment amount is growing with corporate earnings, and represents approximately 1 per cent of Enbridge’s profits.
