Slide 1: First Quarter 2019 Earnings Teleconference
First Quarter 2019 Earnings Teleconference May 9th, 2019
Slide 2: 1Q19 Financial Summary
HYDRO ONE LIMITED 1Q19 FINANCIAL SUMMARY First Quarter YE (millions of dollars, except EPS) 2019 2018 % Change 2018 2017 % Change Revenue Transmission $428 $421 1.7% $1,686 $1,578 6.8% Distribution 1,321 1,145 15.4% 4,422 4,366 1.3% Distribution (Net of Purchased Power) 514 394 30.5% 1,523 1,491 2.2
Slide 3: 1Q19 Financial Highlights
1Q19 FINANCIAL HIGHLIGHTS Renewed leadership and strong fundamentals continue to drive momentum while receipt of the distribution rates decision results in earnings catch up Financial Highlights ($M) – 1Q19 Year over Year Comparison Financial Highlights: Revenues Net of Power increased 15.4% during
Slide 4: Achievements and Efficiencies
ACHIEVEMENTS AND EFFICIENCIES Paving New Paths in Productivity Savings ($M) • Generated productivity savings of $135.5 million in 2018 comprised of $53.3 million in 2018 135.5 OM&A and $82.2 million in capital and totaling a quarter of a billion dollars since 2017 89.5 $249.9M 2015 • Move to Mobile
Slide 5: Regulatory Update
REGULATORY UPDATE 2018 – 2022 Distribution Rate Application • On March 7, 2019, the OEB issued its decision, to be implemented on July 1, 2019. • The OEB made reductions to 2018 OM&A ($32.3M or ~6%) and 2018-2022 Capital Expenditures ($300M or ~8%). • Additional capital reductions were made in respe
Slide 6: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY Investment grade balance sheet with one of lowest debt costs in utility sector Significant Available Liquidity ($M) Strong Investment Grade Credit Ratings (LT/ST/Outlook) Shelf Registrations 250 Hydro One Limited Hydro One Inc. (HOI) Hydro One Inc. HOL: 170 Univers
Slide 7: Increased Common Share Dividends
INCREASED COMMON SHARE DIVIDENDS Consecutive annual 5% increase announced on May 9th, 2019 Key Points Dividend Statistics • Quarterly dividend declared at $0.2415 per common share ($0.966 annualized) Yield1 4.7% • Targeted dividend payout ratio remains at 70% - 80% of net income Annualized Dividend2
Slide 8: 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