ENBRIDGE INCOME FUND HOLDINGS INC. Designed and Managed for Strength and Stability

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1 ENBRIDGE INCOME FUND HOLDINGS INC. Designed and Managed for Strength and Stability TD Energy Conference July 9, 2013 John Whelen President 1

2 FORWARD LOOKING STATEMENTS This presentation includes certain forward looking information ( FLI ) to provide Enbridge Income Fund Holdings Inc. ( EIFH ) shareholders and potential investors with information about EIFH and its investee, Enbridge Income Fund (the Fund ), management's assessment of their future plans and operations, which may not be appropriate for other purposes. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Although we believe that the FLI in this presentation is reasonable based on the information available today and the processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. FLI inherently involves a variety of assumptions, known and unknown risks, uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in our FLI and the FLI relating to the Fund. Material assumptions include: expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; availability and price of labour and pipeline construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approvals for the Fund s projects; anticipated in-service dates and weather. Our FLI is subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, construction schedules, weather, economic conditions, exchange rates, interest rates and commodity prices, including but not limited to those discussed more extensively in our filings and the filings of the Fund with Canadian securities regulators. The impact of any one risk, uncertainty or factor on any particular FLI is not determinable with certainty as these are interdependent and the future course of action of EIFH and the Fund depends on management's assessment of all information available at the relevant time. Except to the extent required by law, neither EIFH nor the Fund assumes any obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this presentation is expressly qualified in its entirety by these cautionary statements. This presentation may make reference to certain financial measures, such as cash available for distribution, which are not recognized under GAAP. Reconciliations to the most closely related GAAP measures are included in the MD&A filings and/or Supplementary Financial Information available on our website or in the slides that accompany this presentation, if applicable. 2

3 COMPANY SNAPSHOT Ticker Symbol: TSX: ENF Enbridge Inc. Enterprise Value: ~$5.0 Billion 80.1% 19.9% Public Market Capitalization: ~$1.4 Billion Dividend Frequency: Monthly Annualized Dividend Per Share: $1.335 CDN Current Dividend Yield: ~5.5% 10 year Dividend/Distribution Growth Rate ~5% Green Power Generation (the Fund) Liquids Transportation & Storage 85.6% Common Unit Interest* 14.4% Common Unit Interest Natural Gas Transmission 52.3% Preferred Unit Interest * Through its investment in ENF and common and preferred units of Enbridge Income Fund, Enbridge Inc. currently retains a 67% interest in the Fund. 3

4 IMPLEMENTATION PROGRESS The Fund has undergone a substantial transformation since restructuring in Executed 2 significant acquisitions of infrastructure from Enbridge Inc. $1.2 B renewable power generation facilities (October 2011) $1.2 B crude oil storage and renewable power facilities (December 2012) Completed $190 M expansion of crude oil transportation system (March 2013) Substantially grew and diversified asset base and market capitalization December 2010 June 2013 Enterprise Value ($B) Public Market Float ($B) Public Debt Outstanding ($B) ENF Monthly Dividend ( /share)

5 LOW RISK BUSINESS MODEL Our business model is predicated on long-lived energy transportation and generation assets supported by low risk tolling constructs. Solid long-term supply and demand fundamentals Strong contractual support Disciplined growth Prudent financial policies Fund Distribution Payout ~80% Leverage ~50% Minimal Market Price Risk* *Commodity price, foreign exchange and interest rate exposure are substantially mitigated. 5

6 CURRENT ASSET PORTFOLIO The Fund owns a diversified portfolio of low risk energy infrastructure assets across three business lines Proforma CAFD* * Cash Available for Distribution (CAFD) before corporate expenses, pro forma the acquisition of crude oil storage and renewable energy assets acquired in December 2012 as if these assets were owned by the Fund from January 1,

7 GREEN POWER Renewable Generation Facilities The Fund is now one of Canada s largest suppliers of environmentally friendly electric power. Western Assets Whitecourt (under construction) Asset Capacity (net) Avg. Remaining Contract Length Greenwich Wind 190 MW 17 Years Ontario Wind 99 MW 19 Years Talbot Wind 99 MW 19 Years Magrath Wind 10 MW 12 Years Chin Chute Wind 10 MW 5 Years Sunbridge Wind 6 MW 10 Years Ontario Assets Sarnia Solar 80 MW 18 Years Amherstburg Solar 15 MW 19 Years Tilbury Solar 5 MW 18 Years NRGreen Waste Heat 20 MW 15 Years Total 534 MW ~17 Years Wtd. Avg. The price of all power sold at these facilities has been fixed under long-term power purchase agreements (PPAs) or hedge contracts. 7

8 LIQUIDS TRANSPORTATION & STORAGE Saskatchewan System Toll structures provide cash flow stability. Bakken production is driving new investment and long-term growth. Crude Oil Pipelines Asset Current Toll Methodology Capacity (kbpd) Saskatchewan Gathering System Cost of Service 255 Weyburn System Market Based 47 Virden System Market Based 37 Westspur System Fee for Service 1 - with downside protection Bakken Expansion Pipeline Long Term Take or Pay 145 Operational Storage kbbls Bakken Expansion Pipeline MMbpd Pending ratification by NEB Total Bakken Production North Dakota, Saskatchewan, & Manitoba Source: Enbridge Inc. 8 8

9 LIQUIDS TRANSPORTATION & STORAGE Hardisty Contract Storage Virtually all of the revenue generated by these facilities is locked-in through long-term fixed price contracts. Regional Infrastructure Oil Sands Athabasca Cheecham Kirby Lake Stonefell Edmonton Hardisty Asset Capacity Description Contract Structure Remaining Contract Life Hardisty Contract Terminals 7.5 MMbbls 18 crude oil storage tanks 1 condensate storage tanks Take-or-Pay ~ 80% of revenue 2-9 years + additional 15 years with Enbridge Inc. Hardisty Storage Caverns 3.5 MMbbls 4 underground storage caverns 2 above ground tanks Take-or-Pay ~100% of Revenue ~8 years + additional 15 years with Enbridge Inc. 9

10 NATURAL GAS TRANSMISSION Alliance Canada 970 1,005 Btu/cf Alliance Canada has consistently delivered close to 1.6 bcf/day of liquids-rich gas to premium markets in the U.S. 1,100-1,200 Btu/cf Annual Historical Throughput 1,020 1,200 Btu/cf Very Rich Gas: > 1,400 Btu/cf Rich Gas: 1,050 < 1,400 Btu/cf Lean Gas: < 1,050 Btu/cf 1,425 1,528 Btu/cf Approximately ~99% of Alliance s firm service capacity is contracted through December

11 NATURAL GAS TRANSMISSION Alliance Canada 1,100-1,200 Btu/cf 970 1,005 Btu/cf 1,020 1,200 Btu/cf Alliance s geographic footprint and unique ability to cost effectively deliver liquids rich-natural gas, positions it well for re-contracting. Competitive Strengths: Footprint in growing rich-gas production regions Unique ability to transport liquids rich-gas Reduced field capital requirements for Producers Access to premium liquids markets Cost competitive gas transportation to key delivery points 1,425 1,528 Btu/cf Very Rich Gas: > 1,400 Btu/cf Rich Gas: 1,050 < 1,400 Btu/cf Lean Gas: < 1,050 Btu/cf Source: Enbridge Inc

12 STRONG SPONSORSHIP ENF benefits from the ownership and sponsorship of Enbridge Inc. Economic and Strategic Alignment Enbridge Inc. retains ~67% economic interest in the Company Operational Expertise Asset operations Risk management systems and processes Project construction management Infrastructure Development and Investment Expertise Enbridge is one of North America s most successful developers and operators of energy infrastructure Over $49B in consolidated assets; $28B in secured projects ( ) 12

13 STRATEGIES Our strategies are straight forward and focused on delivering a growing, predictable stream of distributable cash flow to investors. Optimize operations and value of existing assets Ensure safe, reliable operations Maximize revenue, improve efficiencies, minimize costs Grow organically Extend or expand existing assets Acquire complimentary infrastructure From third party; from Enbridge Inc. Target energy infrastructure with risk-return characteristics in keeping with the Fund s current profile Maintain diversified asset base over long-term 13

14 DIVIDEND GROWTH Consistent execution has driven steady and predictable growth, in keeping with our value proposition. Per Share $1.40 Dividends/Distributions to Investors $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $ e* * 2013 annualized dividend Taxable Distribution paid by Enbridge Income Fund prior to restructuring in December 2010 Eligible Dividend paid by Enbridge Income Fund Holdings Inc. post restructuring 14

15 INVESTOR VALUE PROPOSITION Designed and managed for strength and stability. Low Risk Business Model Diversified Asset Base High Payout of Predictable Cash Flows Strong Sponsor Enbridge Income Fund Holdings Inc. (ENF) 15

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