Our investment proposition is a simple one. With relatively modest risk, we generate total returns for shareholders that are superior to peers and indices.

Long-term Investment

Long Term Investment

Safety Income, & Growth

Attractive Returns on Equity

Energy infrastructure is a prototypical long-term investment and, by extension, Enbridge is as well. 2008 marked Enbridge's 55th year as a publicly traded company. Over this time period Enbridge's total return, including dividends, has averaged approximately 13% per year, superior to the return of the TSX and driven by our portfolio of quality assets.
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Safety, Income & Growth

Our investment thesis aligns well with investing first principles:

Preserve capital (safety)
Pay dividends (income)
Profitably reinvest capital (growth)

Particular Enbridge attributes assist with this profile:

Safety

Simple business model
Strong competitive positions
95% of business is regulated
Minimal commodity exposure
Robust risk management program

Disciplined investment criteria
85% of revenue derived from:

cost-of-service model
long term contracts
throughput protection

Stable credit rating (A-, Baa1, A)

Income

10 year compound average dividend growth of 9.5%
2009 Dividend increase of 12%
3.7% yield
60-70% payout ratio

Growth

10% plus Five Year EPS CAGR (2007-2012e)
Oil sands infrastructure development
New feeder pipelines
System expansions
New market pipelines

Gas customer additions
New gas pipelines
Cost incentives
Liquified Natural Gas

*all numbers based on calculations as at December 31, 2008

Attractive Returns on Equity

Enbridge pays out 60-70% of earnings in the form of dividends, it retains the other 30-40% for reinvestment in its businesses. This is because there are numerous re-investment opportunities with attractive returns. The following chart highlights consolidated returns. While some of the years include some non-recurring book gains on asset divestments, the Company expects that an approximate 13-14% ROE is achievable on a sustainable basis on average.

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