Hawaiian Electric Industries · NYSE:HE

Hawaiian Electric Industries — EEI 52nd Financial Conference 2017

73 slides from Hawaiian Electric Industries's conference presentation, Nov 5, 2017

1. Slide 1: EEI 52nd Financial Conference

   EEI 52nd Financial Conference November November 5 - 8, 2017 EEI 52nd Financial Conference November November 5 - 8, 2017

2. Slide 2: Building strength through Leadership

   Kamehameha Schools Bishop Estate from 1999 to 2007. Building strength through Leadership Building strength through Leadership

3. Slide 3: Constance H. Lau

   Constance H. Lau President and Chief Executive Officer Chairman Chairman Hawaiian Electric Industries, Inc. Hawaiian Electric Company, Inc. American Savings Bank, F.S.B. Ms. Lau was named President and Chief Executive Officer (CEO) of Hawaiian Electric Industries, Inc. (HEI) in May 2006. She also serv

4. Slide 4: Alan M. Oshima

   Alan M. Oshima Mr. Oshima will become president and chief executive officer of Haw President and Chief Executive Officer Company, Inc., effective October 1, 2014. Mr. Oshima first joined H Hawaiian Electric Company, Inc. a member of the board of directors in 2008. In 2011, he left the boa Mr. Oshima wa

5. Slide 5: Richard F. Wacker

   Richard F. Wacker President and Chief Executive Officer American Savings Bank, F.S.B. Mr. Wacker was named President and Chief Executive Officer of ASB in November 2010 and serves on the ASB Board. Prior to joining ASB, Mr. Wacker was Chairman of Korea Exchange Bank (KEB), the fifth largest commercial

6. Slide 6: Greg C. Hazelton

   Greg C. Hazelton Executive Vice President and Chief Financial Officer Hawaiian Electric Industries, Inc. On April 2, 2017, Mr. Hazelton succeeded Jim Ajello as HEI’s Executive Vice President and Chief Financial Officer (CFO). Prior to his return to HEI as Senior Vice President, Finance in October 20

7. Slide 7: Clifford H. Chen

   Clifford H. Chen Treasurer, Manager of Investor Relations and Strategic Planning Hawaiian Electric Industries, Inc. Mr. Chen joined HEI in June 2014. Mr. Chen has a strong investment banking/corporate financial markets background, having worked for approximately ten years at UBS Securities, Bank of

8. Slide 8: Tayne S. Y. Sekimura

   Tayne S. Y. Sekimura Senior Vice President & Chief Financial Officer Hawaiian Electric Company, Inc. Ms. Sekimura became Hawaiian Electric’s Senior Vice President & Chief Financial Officer in September 2009. She has held various leadership positions in the company in the areas of Internal Audit, Cor

9. Slide 9: Colton Ching

   Colton Ching Senior Vice President, Planning & Technology Hawaiian Electric Company Colton has been with Hawaiian Electric for more than 25 years, serving in various roles in engineering, planning, strategy, operations, and construction. In his role as Senior Vice President of Planning and Technolog

10. Slide 10: Cautionary statements and risk factors that may affect future results

    Cautionary statements and risk factors that may affect future results This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to d

11. Slide 11: Company Overview

    Company Overview Providing essential electric and financial services ensuring a brighter and greener future for the communities we serve 2 Company Overview Providing essential electric and financial services ensuring a brighter and greener future for the communities we serve 2

12. Slide 12: HEI profile

    HEI profile Subsidiary contributions to net income1 Bank 34% Utility 66% 2 Market capitalization $4.0B 2,3 Total enterprise value $5.6B Capital structure: consolidated common equity to total capitalization 56% LTM 9/30/17 consolidated ROE 8.5% 2 Dividend yield 3.4% 2016 dividend payout ratio 54% 3-y

13. Slide 13: Through our operating subsidiaries, we have a presence on all major islands in Hawaii

    Through our operating subsidiaries, we have a presence on all major islands in Hawaii Maui Electric Customers: 70,872 Utility Kauai 3 Generating capability: 267 MW locations Rate base: $0.43B Oahu 35 Renewable generation2: 37% Bank branches Bank branches1 Molokai 1 Maui 6 Hawaiian Electric Customers

14. Slide 14: Hawaii's economy continues to grow

    Hawaii’s economy continues to grow Year-over-year September 2017 YTD September 2017 change Tourism Arrivals +5.1% +4.9% Expenditures +1.9% +7.1% Unemployment • September 2017 – Hawaii: 2.5%; U.S.: 4.2% • Oahu sales volume YTD September 2017 compared to the prior year: • Oahu single family homes: up

15. Slide 15: HEI financial performance

    HEI financial performance $300 $3.00 5-Year EPS CAGR: GAAP 9.7% / Merger-Spin Adjusted 4.0%1 $2.29 $250 $2.50 Net Income Diluted Earnings (in millions) Per Share (EPS) $200 $2.00 $1.62 $1.63 $1.50 GAAP $1.44 $1.42 $150 $1.75 $1.50 Merger-Spin $1.68 $1.65 Adjusted $100 $1.00 $50 $0.50 $0 $0.00 2011 2

16. Slide 16: HEI ROE

    HEI ROE Consolidated HEI ROE Twelve Months Ended September 30 12.3% (GAAP) 9.5% 8.5% (Core) (GAAP) 2016 2017 Core Earnings Adjustment GAAP 2016 2017 Utility 8.1% 7.2% Bank 9.8% 11.2% See the reconciliation of GAAP to Non-GAAP (Core) measures in this presentation. Note: All ROEs calculated using net

17. Slide 17: HEI total assets and common equity %

    HEI total assets and common equity % Total Assets Common Equity % 1 (in billions) $14 55.6% 55.6% 56.0% $12 55.0% 54.0% $10 53.0% $8 52.9% 52.0% $6 52.0% 51.5% 51.0% 51.0% $4 50.0% $2 49.0% $10.1 $10.3 $11.2 $11.8 $12.4 $12.7 $0 48.0% 2012 2013 2014 2015 2016 9/30/2017 1 Common equity as a percent o

18. Slide 18: Consolidated Net Income 3Q and YTD 9/30 ($ millions)

    Consolidated Net Income 3Q and YTD 9/30 ($ millions) HC Non-Core Adjustments GAAP Net Income Core Net Income (merger/spin-related) $127.1 $47.0 3Q $15.1 $60.1 $63.8 $63.3 $60.1 $47.5 $47.0 $47.5 $65.1 $63.8 $17.6 $15.1 $17.6 ($5.0) $1.2 ($5.0) $203.6 $132.9 $145.4 $132.9 $108.2 YTD 9/30 $94.6 $110.3

19. Slide 19: Consolidated Diluted EPS 3Q and YTD 9/30 ($ per share)

    Consolidated Diluted EPS 3Q and YTD 9/30 ($ per share) HC Non-Core Adjustments GAAP EPS Core EPS (merger/spin-related) $1.17 $0.43 3Q $0.14 $0.55 $0.59 $0.58 $0.55 $0.44 $0.43 $0.44 $0.60 $0.59 $0.16 $0.14 $0.16 ($0.05) $0.01 ($0.05) $1.88 $1.22 $1.34 $1.22 $1.00 YTD $0.87 $1.02 $0.87 9/30 $0.38 $0.

20. Slide 20: YTD 2017 Highlights

    YTD 2017 Highlights  Third quarter financial results in line with full year expectations  Hawaii Electric Light 2016 Test Year  Strong financial performance Interim D&O  Higher net interest income  Filed Maui Electric 2018 Test Year  Strong deposit growth Rate Case  Improving efficiency and c

21. Slide 21: Utility 2017 highlights and priorities

    Utility 2017 highlights and priorities  First proposed base rate request in 6 years for Hawai‘i Electric Light (interim D&O effective 8/31/17) and Hawaiian Electric; Maui Electric filed rate i ncrease in October  Hawai‘i Public Utilities Commission accepted the Power Supply Improvement 2017 Plan w

22. Slide 22: Foundational Framework for Hawaii's Renewable Future

    Foundational Framework for Hawaii’s Renewable Future  Comprehensive & flexible roadmap for Hawaii’s 100% renewable future Power Supply  Details a proposed five-year action plan through 2021 Improvement Plan (PSIP) Update  Accepted July 2017 (Docket No. 2014-0183) Grid Modernization  Tangible vis

23. Slide 23: Rates and Recovery Mechanism Developments

    Rates and Recovery Mechanism Developments  Interim Decision and Order (D&O) effective Aug. 31, 2017 Hawaii Electric Light Rate increase of 3.4% ($9.9 million) Allowed ROE of 9.5% 2016 Rate Case  Sept. 20, 2017: Filed briefs supporting a 9.75% ROE for the final award (Docket No. 2015-0170)  No sta

24. Slide 24: Residential Solar and Other Customer Developments

    Residential Solar and Other Customer Developments  Authorizes activation of new “advanced inverter” functions in PV and storage systems New  Advanced inverters provide support to the electric grid during different types of grid disturbances “Advanced Inverter”  Activating these functions in the n

25. Slide 25: Hawaii's oil situation

    Hawaii’s oil situation Low Sulfur Fuel Oil vs. Crude Oil Price per bbl September 2011 to September 2017 $145 $125 HAWAII OIL PRICES HAWAII OIL PRICES HAWAII OIL PRICES $105 HAWAII OIL PRICES HAWAII OIL PRICES $85 HAWAII OIL PRICES $65 CRUDE OIL PRICES CRUDE OIL PRICES $45 CRUDE OIL PRICES CRUDE OIL

26. Slide 26: Oil is the primary driver of rates in Hawaii

    Oil is the primary driver of rates in Hawaii Fuel Breakdown of Hawaiian Electric Rates 1 Purchased Energy Fossil Fuels Typical Revenue Taxes 40 Residential Purchased Energy Renewables Bill PPAC Expenses December All Other Typical 2012 35 $163.64 Residential Bill 31.8 31.5 Typical October 30.9 Reside

27. Slide 27: Renewable energy can be cost competitive in Hawaii depending on oil price volatility

    Renewable energy can be cost competitive in Hawaii depending on oil price volatility Utility fossil fuel energy cost Contracted renewable energy cost Significant reduction in cost of utilty-scale Subject to volatile oil prices renewables* 0.40 2016+ PPAs Pre-2016 PPAs Proposed and Approved 0.35 Oil

28. Slide 28: Clean energy and reliability projects drive capital investments

    Clean energy and reliability projects drive capital investments (in millions) Year End Rate Base Forecast $3,500 = Top of Range $3,300 = Bottom of Range $3,250 $3,150 $2,940 $3,000 $3,200 $3,070 $2,750 $2,910 $2,833 $2,500 2016 2017 2018 2019 2016 2017 2018 2019 Rate Base Growth2 3% 3-4% 6-8% 3-6% R

29. Slide 29: Utility ROE

    Utility ROE Consolidated Utility ROE Twelve Months Ended September 30, 8.2% (core) 8.1% (GAAP) 7.2% (GAAP) 2016 2017 GAAP Consolidated Utility Hawaiian Electric Hawaii Electric Light Maui Electric 2016 8.1% 7.9% 8.5% 8.4% 2017 7.2% 7.3% 6.5% 7.0% 1 Allowed 9.8% 10.0% 9.5% 9.0% Note: Last base revenu

30. Slide 30: 2016 consolidated utility ROE lag

    2016 consolidated utility ROE lag 0.2 0.2 0.1 0.4 0.2 0.7 0.2 9.8 9.3 0.5 9.3 8.1 1 2 3 4 5 6 7 8 Allowed Non-recoverable Short term RAM Revenue ROE less Plant Adds O&M in excess No return on Interest rate Others, net Actual ROE items (ie. interest accrual delay items 1, 2, 3 Over of test pension as

31. Slide 31: Utility regulatory mechanisms provide financial stability during renewable transition

    Utility regulatory mechanisms provide financial stability during renewable transition Mechanisms What they do Sales decoupling Provides predictable revenue stream by fixing net revenues at level approved in last rate case (revenues not linked to kWh sales) Revenue adjustment Annually adjusts revenue

32. Slide 32: Bank 2017 highlights and priorities

    Bank 2017 highlights and priorities  Continue to grow customer deposits  Expand relationships and build on new e-banking platform  Grow in consumer and commercial/industrial portfolios 2017  Improve credit quality and de-risk loan portfolio  Begin construction of new ASB campus to consolidate a

33. Slide 33: Quality balance sheet

    Quality balance sheet  Overall loan-to-deposit ratio of 81%  100% of ASB loans funded with low-cost core deposits Peer Banks1 ASB 06/30/17 (%) 09/30/17 (%) Core Deposits Loans Loans 62 70 Core Deposits 72 76  Leverage ratio: 8.7%  Tangible common equity to tangible assets: 8.0%  Total capital r

34. Slide 34: Low-risk loan mix

    Low-risk loan mix Total loans at 09/30/17 - $4.7B1 Commercial construction $128 (3%) Commercial real estate $746 (16%) Commercial markets $590 (13%) Residential 1-4 $2,066 (44%) Residential Construction & Lot Loans $32 (<1%) Consumer $211 (5%) HELOC $905 (19%) Note: $ in millions, unless otherwise n

35. Slide 35: Revenue growth driven primarily by net interest income

    Revenue growth driven primarily by net interest income ($ in millions) Total loans $4,740 $4,748 $4,678 Net interest income and noninterest income $70.4 $72.2 $71.4 $18.5 $16.2 $15.2 3Q16 2Q17 3Q17 $51.9 $56.0 $56.2 Total deposits 3Q16 2Q17 3Q17 $5,724 $5,752 $5,381 Net interest income Noninterest i

36. Slide 36: HEI 2017 EPS guidance (as of November 2, 2017)

    HEI 2017 EPS guidance (as of November 2, 2017) HEI EPS: $1.55 - $1.70 per share No new equity issuances through 2018 Utility EPS: $1.17 - $1.27 Bank EPS: $0.58 - $0.60 Key Assumptions: Key Assumptions:  Decoupling model: March 2015 Decision & Order  Net interest income: mid-single digit asset grow

37. Slide 37: HEI financing outlook 2017

    HEI financing outlook 2017* (as of November 2, 2017) 2017 holding company sources & uses of capital (in millions) ~$305M ~$305M Other HC Exp. $15  Expect to maintain strong capital structure above 50% consolidated common equity Debt Maturities to total capitalization in 2017 $125 Debt Issuance $185

38. Slide 38: Appendices

    Appendices 29 Appendices 29

39. Slide 39: 3Q17 utility financial highlights

    3Q17 utility financial highlights (in millions) 3Q17 $60 Utility net income Key utility core earnings drivers, after-tax vs fav/(unfav) 3Q16 Higher RAM revenues 2 $40 Hawaii Electric Light 2016 interim rate increase <1 Net revenues* 2 O&M, excluding net income neutral items (4) $47.0 $47.5 $20 Allow

40. Slide 40: National leader in renewable energy integration and distributed generation

    National leader in renewable energy integration and distributed generation Rapid growth of renewables and Committed to achieving Hawaii’s 100% distributed generation renewable goal by 2045 2016 Renewable Portfolio Standard1 MW 1,200 Consolidated Oahu Maui County Hawaii Island 1,000 26% 19% 37% 54% 8

41. Slide 41: Plant Additions – Baseline by company & Consolidated Major Projects

    Plant Additions – Baseline by company & Consolidated Major Projects (in millions) Major projects = PUC approved projects > $2.5 million $500 5-year (2012-2016) historical average baseline projects: $390 HE: $229 $371 $350 $21 HL: 48 $55 $33 ME: 42 $26 $299 $50 $2 $283 Total $319 $48 $59 $28 $13 $46

42. Slide 42: Power supply improvement plan (PSIP) update

    Power supply improvement plan (PSIP) update Hawaii PUC Docket No. 2014-0183 (closed) Accepted on July 14, 2017  Accelerates achievement of key milestones, including reaching a 48% Renewable Portfolio Standard1 by 2020; mandated goal is 30%  Anticipates reaching 100% Renewable Portfolio Standard1 b

43. Slide 43: Grid Modernization Strategy update

    Grid Modernization Strategy update Hawaii PUC Docket No. 2017-0226  Final grid modernization strategy filed with PUC in August 2017  Customer and stakeholder engagement and interview process used to define grid modernization goals  Enables grid to interconnect DER levels consistent with the accep

44. Slide 44: Components of decoupling

    Components of decoupling Hawaii PUC Docket No. 2008 - 0274 Hawaii PUC Docket No. for the decoupling review: 2013 - 0141 Components 1. Sales Delinks utility revenues from electricity usage decoupling  GAAP revenue = revenue approved in the last rate case (interim or final) via a Revenue Balancing 

45. Slide 45: Components of decoupling

    Components of decoupling Hawaii PUC Docket No. 2008 - 0274 Hawaii PUC Docket No. for the decoupling review: 2013 - 0141 Components 2. RAM Revenue Lesser of: Adjustment  2a - RAM Revenue Adjustment based on the RAM provisions in place prior to Order No. 32735** -or- Allowed  2b - RAM Revenue Adjust

46. Slide 46: Components of decoupling

    Components of decoupling Hawaii PUC Docket No. 2008 - 0274 Hawaii PUC Docket No. for the decoupling review: 2013 - 0141 Components 2a. RAM Revenue RAM for Rate Base – Component 2 Adjustment  Change in rate base compared to test year levels in last rate case, for certain items including annual Deter

47. Slide 47: Components of decoupling

    Components of decoupling Hawaii PUC Docket No. 2008 - 0274 Hawaii PUC Docket No. For the decoupling review: 2013 - 0141 Components 2b. RAM Revenue Cumulative RAM for 2017 RAM Revenue Adjustment – Adjustment  Prior year RAM Cap Target Revenues times GDPPI (2.0% for 2017) + prior year RAM Cap Cap Rev

48. Slide 48: RAM Accrual Schedules

    RAM Accrual Schedules Current Calendar Year Subsequent Calendar Year J F M A M J J A S O N D J F M A M J J A S O N D Normal RAM Prior Year RAM Current Year RAM Subsequent Year RAM Accrual Schedule 1 Calendar Year 2017 Calendar Year 2018 J F M A M J J A S O N D J F M A M J J A S O N D 2018 RAM Oahu S

49. Slide 49: 2017 Impact of Loss of January RAM Revenue Recognition Method

    2017 Impact of Loss of January 1 RAM Revenue Recognition Method Calendar Year Method – Beginning January 2017 • Background: Per the Settlement Agreement with the 10 $40M RAM Revenues Consumer Advocate approved by the Public Utilities 8 9 9 9 9 9 9 Commission in 2013, Hawaiian Electric was allowed to

50. Slide 50: Maui Electric Rate Case: 2018 Test Year

    Maui Electric Rate Case: 2018 Test Year Hawaii PUC Docket No. 2017-0150 Application (10/12/17) Amount requested $30.1M (9.3% increase over revenues at current effective rates) 1 Deprec. & amort. expenses $24.6M Return on average common equity 10.60% with mechanisms Common equity capitalization (%) 5

51. Slide 51: Hawaiian Electric Rate Case: 2017 Test Year

    Hawaiian Electric Rate Case: 2017 Test Year Hawaii PUC Docket No. 2016-0328 Application (12/16/16) Amount requested $106.4M (6.9% increase over revenues at current effective rates) 1 Deprec. & amort. expenses $130.7M Return on average common equity 10.60% with mechanisms Common equity capitalization

52. Slide 52: Hawaii Electric Light Rate Case: 2016 Test Year

    Hawaii Electric Light Rate Case: 2016 Test Year Hawaii PUC Docket No. 2015-0170 Application Settlement Interim D&O (9/19/16) (7/11/17) (eff. 8/31/17) Approximately $9.9M (at 9.5% ROE)-$11.1M (at Approximately $9.9M (at $19.3M Amount requested (6.5% increase over revenues at 9.75% ROE)2 9.5% ROE)3 cu

53. Slide 53: Hawaiian Electric Rate Case: 2011 Test Year

    Hawaiian Electric Rate Case: 2011 Test Year Hawaii PUC Docket No. 2010-0080 Application Interim D&O Adjusted Interim Final D&O (7/30/10) (eff.7/26/11) D&O (eff.5/21/12) (eff.9/1/12) Base Request $74M (4.3% increase) $53.2M2 $58.8M2,3 $58.1M4 New Programs $40M (3.1% increase) (3.4% increase) (3.4% in

54. Slide 54: Maui Electric Rate Case: 2012 Test Year

    Maui Electric Rate Case: 2012 Test Year Hawaii PUC Docket No. 2011-0092 Application Interim D&O Final D&O (7/22/11) (eff.6/1/12) (eff.8/1/13) $27.5M1 $13.1M3 $5.3M4 Base Request (6.7% increase) (3.2% increase) (1.3% increase) $19.8M $19.7M $19.7M Depr. & amort. expenses without mechanisms with mecha

55. Slide 55: Public Utilities Commission of the State of Hawaii

    Public Utilities Commission of the State of Hawaii The Governor, with the consent of the Senate, appoints three full-time commissioners to staggered six-year terms. Commissioners can serve no more than 12 consecutive years. Randall Y. Iwase, Chair (Appointed by Governor David Y. Ige)  Appointed Cha

56. Slide 56: 3Q17 bank financial highlights

    3Q17 bank financial highlights (in millions) Bank net income Key bank earnings drivers, after-tax 3Q17 vs 3Q17 vs fav/(unfav) 2Q17 3Q16 Net interest income -- 3 Provision for loan losses 1 3 $16.7 $17.6 $15.1 Noninterest income (1) (2) Noninterest expense -- (1) 3Q16 2Q17 3Q17 47 3Q17 bank financial

57. Slide 57: Bank 3Q17 performance

    Bank 3Q17 performance Return on assets (%) Net interest margin (%) 1.21 ~3.5 - 3.6 3.69 3.68 3.55 1.07 1.02 1.05 3.47 >0.90 Original ASB ASB Peers YTD Original ASB ASB Peers YTD Target 3Q17 YTD Target 3Q17 YTD ASB Target ASB QTD Annualized ASB YTD Annualized Peers1 High Performing Peers2 Source for

58. Slide 58: Net interest margin

    Net interest margin 4.50 Asset yield % 4.00 4.00 Net interest margin (NIM) % 3.50 3.80 3.80 3.88 3.88 3.88 3.00 3.50 3Q16 4Q16 1Q17 2Q17 3Q17 0.80 3.68 3.68 3.69 Liability cost % 3.57 3.59 0.40 3.00 3Q16 4Q16 1Q17 2Q17 3Q17 0.24 0.22 0.20 0.21 0.20 0.00 3Q16 4Q16 1Q17 2Q17 3Q17 1 2 ASB Peers High Pe

59. Slide 59: Credit quality improving: significant reductions in nonaccrual loans

    Credit quality improving: significant reductions in nonaccrual loans ($ in millions) Net charge-offs1 Nonaccrual loans2 1.11% 0.40% 0.53% 0.51% 0.47% 0.49% 0.43% 0.41% 0.44% 0.50% 0.29% 0.32% 0.49% 0.49% 0.45% 0.40% $52.6 0.20% 0.21% 0.11% 0.04% 0.06% 0.06% 0.08% 0.06% 0.05% 0.04% $5.7 $4.7 $23.3 $2

60. Slide 60: ASB peer group – 2017

    ASB peer group – 2017 * 1st Source Corporation SRCE First Bancorp FBNC Opus Bank OPB Ameris Bancorp ABCB First Busey Corporation BUSE * Oritani Financial Corp. ORIT BancFirst Corporation BANF First Commonwealth Financial Corporation FCF Pacific Premier Bancorp, Inc. PPBI Berkshire Hills Bancorp, Inc

61. Slide 61: Debt maturities & credit ratings

    Debt maturities* & credit ratings ($ in millions) $1,181 $50 $125 ** $75 $96 $50 $50 2017 2018 2019 2020 2021 Thereafter to 2046 HEI Hawaiian Electric Credit Ratings HEI Hawaiian Electric ASB 1 S&P BBB-/Stable/A-3 BBB-/Stable/A-3 BBB/Stable/A-2 2 Moody’s Unrated/Stable/P-3 Baa2/Stable/P-2 n/a 3 Fitc

62. Slide 62: Visitor expenditures

    YTD Hawaii visitor arrivals up 4.9% and visitor expenditures up 7.1% 1400 30.0% Year vs. Year % Change Year vs. Year % Change 1200 15.0% Visitor arrivals (in thousands) 1000 0.0% 800 Monthly Visitor Arrivals -15.0% 600 -30.0% Yr-Yr% Change Visitor Arrivals 400 -45.0% Sep-14 Sep-15 Sep-16 Sep-17 2350

63. Slide 63: Hawaii unemployment rate remains low at 2.5%

    Hawaii unemployment rate remains low at 2.5% 12 Seasonally adjusted 8 Hawaii U.S. US: 4.2% 4 Hawai‘i: 2.5% 0 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 12 Not seasonally Not seasonally adjusted Honolulu County adjusted 8 Maui County Hawaii County: 2.8% Hawaii County

64. Slide 64: Hawaii real estate (September 2008 – September 2017)

    Hawaii real estate (September 2008 – September 2017) Oahu Number of Sales and Median Sales Price $1,000,000 400 $800,000 Number of sales 300 Median price $600,000 200 $400,000 100 $200,000 $0 0 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Number of Sales Median Sales Price M

65. Slide 65: Explanation of HEI's use of certain unaudited non-GAAP measures

    Explanation of HEI’s use of certain unaudited non-GAAP measures HEI and Hawaiian Electric Company management use certain non-GAAP measures to evaluate the performance of HEI and the utility. Management believes these non-GAAP measures provide useful information and are a better indicator of the comp

66. Slide 66: Reconciliation of GAAP to Non-GAAP Measures

    RECONCILIATION OF GAAP' TO NON-GAAP MEASURES Hawaiian Electric Industries, Inc. and Subsidiaries (HEI) 57 Unaudited (S in millions, except per share amounts) 2016 2015 2014 HEI CONSOLIDATED NET INCOME GAAP (as reported) $ 248.3 $ 159.9 168.1 Excluding special items (after-tax): (Income) expenses rel

67. Slide 67: Reconciliation of GAAP to Non-GAAP Measures

    RECONCILIATION OF GAAP! TO NON-GAAP MEASURES ‘Hawaiian Electric Industries, Inc. and Subsidiaries (HED 58 Unaudited ‘Three months ended ‘Nine months ended Septeuber 30 Sepleuaber 30 ($ in millions, except per share amounts) 3017 2016 TT 206 HEI CONSOLIDATED (INCOME) EXPENSES RELATED TO THE TERMINATE

68. Slide 68: Reconciliation of GAAP to Non-GAAP Measures

    RECONCILIATION OF GAAP! TO NON-GAAP MEASURES, Tawatian Electric Company, Ine. and Subsidiaries, ‘Vaated Sin millions) Nine mouths eaded ‘September 30 2017 1s HAWAIIAN ELECTRIC CONSOLIDATED COSTSRELATED TO THE TERMINATED MERGER WITH NEXTERA ENERGY 59 Pre-ax expenses s —-s = s =s 01 Current income tax

69. Slide 69: Cautionary note regarding forward looking statements

    Cautionary note regarding forward looking statements This presentation and other presentations made by Hawaiian Electric Industries, Inc. (HEI) and Hawaiian Electric Company, Inc. (Hawaiian Electric) and their subsidiaries contain “forward-looking statements,” which include statements that are predi

70. Slide 70: have an adverse impact on ASB’s cost of funds); the impacts of the termination

     changes in laws, regulations, market conditions and other factors that result in changes in assumptions used to calculate retirement benefits costs and funding requirements;  the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) and of the rules and

71. Slide 71: assessments (such as Federal Deposit Insurance Corporation assessments), and potential carbon “cap and trade”

     the risks associated with increasing reliance on renewable energy, including the availability and cost of non-fossil fuel supplies for renewable energy generation and the operational impacts of adding intermittent sources of renewable energy to the electric grid;  the growing risk that energy pro

72. Slide 72: the risks associated with the geographic concentration of HEI’s businesses and ASB’s loans, ASB’s

     decisions by the PUC and by other agencies and courts on land use, environmental and other permitting issues (such as required corrective actions, restrictions and penalties that may arise, such as with respect to environmental conditions or RPS);  potential enforcement actions by the Office of t

73. Slide 73: Corporate Headquarters / Institutional Investor inquiries

    Institutional Investor Corporate Headquarters and Securities Analyst Inquiries Hawaiian Electric Industries, Inc. Please direct inquiries to: 1001 Bishop , Suite 2900 Clifford Chen Treasurer & Manager, Investor Relations & Strategic Planning Telephone: 808-543-7384 E-mail: cchen@hei.com Institutiona

Hawaiian Electric Industries — EEI 52nd Financial Conference 2017 on 6ix