Hydro One Limited · TSX:H
Hydro One — Barclays Energy & Power Conference 2016
18 slides from Hydro One's conference presentation, Sep 7, 2016
Slide 1: Barclays Energy & Power Conference
Barclays Energy & Power Conference September 7, 2016 One of North America’s largest electric utilities TSX: H
Slide 2: Disclaimers
Disclaimers DISCLAIMERS In this presentation, all amounts are in Canadian dollars, unless otherwise indicated. Any graphs, tables or other information in this presentation demonstrating the historical performance of the Company or any other entity contained in this presentation are intended only to
Slide 3: Investment Overview
Investment Overview • One of the largest electric utilities in North America, with a market capitalization of +$15 billion • Significant scale and leadership position in Ontario, home to ~38% of Canada’s population • Transmission network serves 96% of Ontario, together with a local distribution netw
Slide 4: Hydro One at a Glance (Full Year 2015)
Hydro One at a Glance (Full Year 2015) Total Revenue (Hydro One Limited) Overview of Regulated Business (Hydro One Inc.) Revenue Net of Purchased Power1 EBIT 40% 49% $3,035M 51% Total Assets $1,222M 60% Unregulated 99% $6.5 Billion Regulated 1% 43% Capital Investments $21.3B Rate Base2 57% 43% 40% $
Slide 5: Preparing to Accelerate Growth
Preparing to Accelerate Growth Corporate Structure Public Company Hydro One Limited TSX: H 100% 100% Public Debt Issuer Hydro One Inc. 100% 100% Hydro One Networks Hydro One Remote Hydro One Telecom Inc. Communities Inc. Inc. Rate-Regulated Businesses Non-Rate-Regulated (99% of revenue) Businesses M
Slide 6: Strategic Focus
Strategic Focus • Reinvigorated focus on integrating customer needs into business decision making • Increased concentration on efficiency and productivity • Accelerating effectiveness and efficiency of capital deployment as stewards of the grid • Making Hydro One a more rewarding and safer place to
Slide 7: Transmission Business
Transmission Business Electric Transmission Network Key Points • One of North America's largest electric transmitters, owning and operating 96% of Ontario’s grid • Transmission produces reliable cash flow with low volatility under Ontario Energy Board (OEB) cost of service regulation • Growing rate
Slide 8: Local Distribution Business (LDC)
Local Distribution Business (LDC) Electric Distribution Footprint Key Points • The largest electric distributor in Ontario, with 1.3 million residential and business customers, and 55 LDC wholesale customers • Distribution is a stable, rate-regulated business operating under OEB cost of service fram
Slide 9: Regulated Capital Investment
Regulated Capital Investment Projected Capital Investments* ($M) Projected Rate Base Growth* $1,643 $1,612 $1,668 $1,750 $1,652 $21,454 $20,279 $19,300 $18,441 $17,626 $16,914 $729 $706 $692 $690 $663 $937 $920 $978 $1,021 $989 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Transmission Dist
Slide 10: Pending Great Lakes Power Transmission Acquisition
Pending Great Lakes Power Transmission Acquisition GLPT Relative to Hydro One Transmission Operations Key Points • “No-action” letter received from the Competition Bureau in July, 2016 • Rare opportunity to expand already significant transmission footprint in Ontario • Increases Hydro One’s transmis
Slide 11: Constructive Rate Regulator (OEB)
Constructive Rate Regulator (OEB) • Transmission and distribution businesses rate-regulated by the Ontario Energy Board (OEB) • Deemed debt / equity ratio of 60% / 40% for both transmission and distribution segments • Hydro One has earned or exceeded its allowed ROE on a consolidated basis over past
Slide 12: The Typical Residential Hydro One End Customer Bill
The Typical Residential Hydro One End Customer Bill End Customer Monthly Electric Bill Breakdown1 Sales Tax Regulatory Charges 12% 3% Local Electric 29% Distribution Charges Hydro One’s Portion of End Customer Customer Electric Bill Total Electric Bill 38% (Delivery Charges) 47% Electricity Transmis
Slide 13: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Significant Available Liquidity ($M) Strong Investment Grade Credit Ratings (LT/ST/Outlook) Shelf Registrations 250 Hydro One Limited Hydro One Inc. (HOI) HOL: Hydro One Inc. Universal Shelf1 S&P A / A-1/ stable $8B 2,300 DBRS A (high) / R-1 (low) / stable HOI: 948
Slide 14: Equity Market Cap Overview
Equity Market Cap Overview • 595 million common shares outstanding, listed on Toronto Stock Exchange (TSX:H) • Equity market capitalization of ~$15 billion and public float of ~$4.5 billion • Average daily trading volume of approximately 1.3 million shares • Equity market capitalization amongst the
Slide 15: Common Share Dividend
Common Share Dividend Dividend Statistics Key Points Yield1 3.24% • Quarterly dividend of $0.21 per share ($0.84 annualized) declared August 11, 2016 Annualized Dividend2 $0.84 / share (1) Based on closing share price on June 30, 2016 (2) Unless indicated otherwise, all dividends paid by Hydro One L
Slide 16: Delivering Sustainable Energy
Delivering Sustainable Energy • Ontario was the first North American jurisdiction to fully eliminate coal electricity generation • Electricity now generated by: nuclear 58%, hydro 23%, natural gas 10%, wind 7%, solar 2% • One of only four utilities in Canada to achieve the Sustainable Energy Company
Slide 17: Why Invest in Hydro One
Why Invest in Hydro One • One of the largest electric utilities in North America with significant scale and leadership position in Canada’s most populated province • Unique combination of electric transmission and local distribution, with no material exposure to commodity prices or generation • 99%
Slide 18: Barclays Energy & Power Conference
Barclays Energy & Power Conference September 7, 2016 One of North America’s largest electric utilities TSX: H