Slide 1: Investor Day
hyd 'OQhe INVESTOR DAY
Slide 2: Omar Javed, VP Investor Relations
OMAR JAVED Vice President, Investor Relations Hydro One Limited
Slide 3: Agenda
AGENDA • SS FINANCIAL PERFORMANCE & GROWTH [ ) REGISTRATION & BREAKFAST Chris Lopez, Chief Financial Officer, Hydro One Q & A with Hydro One leadership WELCOME Oma r Javed, VP Investor Relations, Hydro One INTRODUCTION ~~ LUNCH Mark Poweska, President and CEO, Hydro One ENHANCING HYDRO ONE'S SAFETY
Slide 4: Forward-Looking Statements and Information
FORWARD-LOOKING STATEMENTS AND INFORMATION This presentation may contain "lorword~ooking information" within the meaning of applicable securities lows. Words such os " expect", "onlicipote", "intend", "attempt", " may", " pion ", "will", "con", " believe", "seek", "estimate", and variations of such
Slide 5: Investor Day
hyd 'OQhe INVESTOR DAY
Slide 6: Mark Poweska
MARK POWESKA President and Chief Executive Officer Hydro One
Slide 7: Ontario
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Slide 8: Our History
OUR Independent HISTORY Eledricity System Operator Ontario Ontario Eledricity Power Financial Generation Corporation Generator Hydro One Electrical Safety Distribution and Authority Transmission
Slide 9: One of the Largest Pure Play Electric T&D Companies in North America
ONE OF THE LARGEST PURE PLAY ELECTRIC TRANSMISSION AND DISTRIBUTION COMPANIES IN NORTH AMERICA 26o/o 98°/o 1.6M >80 8,800 #ff# 1.4M Leadership in ESG of Ontario's of Ontario's Poles industrial ski lled and residential and distribution transmission customers dedicated business customers customers cap
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Slide 11: Vision & Mission
VISION & MISSION O ur vision is to create a better and brighter future for all . To get there, our mission is energizing life for people and communities through a network built for the possibilities of tomorrow.
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Slide 13: Evolving Our Network
EVOLVING OUR NETWORK IVY CHARGING NETWORK GRID RESILIENCY Building Ontario's largest, most • Invest approximately $10 billion in connected electric vehicle fast- our transmission and distribution charger network with 73 locations systems over the next five years by the end of 2021
Slide 14: New Ontario-Focused Corporate Strategy
NEW ONTARIO-FOCUSED CORPORATE STRATEGY Plan, design Be the safest Be a trusted Advocate for Innovate and and build a and most partner our customers grow the grid for the efficient utility and help them business future make informed decisions
Slide 15: Plan, Design and Build a Grid for the Future
PLAN, DESIGN AND BUILD A GRID FOR THE FUTURE Planned technology investments Best-in-class asset management practices
Slide 16: Be the Safest and Most Efficient Utility
BE THE SAFEST AND MOST EFFICIENT UTILITY Transform and improve our safety culture Disciplined approach to generate efficiencies
Slide 17: Be a Trusted Partner
BE A TRUSTED PARTNER Indigenous peoples Government Industry Communities Customers
Slide 18: Developing and Maintaining Respectful and Positive Relationships
DEVELOPING AND MAINTAINING RESPECTFUL AND POSITIVE RELATIONSHIPS Purchased over Equity partnership Hosted our first-ever Recognized by the $41 million of goods with the Six Nations provincial Indigenous Canadian Council for and services from of the Grand River Business Fair Aboriginal Business and I
Slide 19: Strengthening Relationships with Government and Regulators
STRENGTHENING RELATIONSHIPS WITH GOVERNMENT AND REGULATORS HIGHLIGHTS Meetings with key players in the provincia l government Advocated for reducing red tape with the Ontario Energy Board • Government committing to change the OEB's governance structure
Slide 20: Advocate for Our Customers and Help Them Make Informed Decisions
ADVOCATE FOR OUR CUSTOMERS AND HELP THEM MAKE INFORMED DECISIONS Innovative customer practices: • We a re modernizing our Customer Contact Centre • Launching a dedicated web portal for commercial and industrial customers • 500,000 customers enrolled for proactive real-time, outage alerts
Slide 21: Innovate and Grow the Business for Our Customers and Shareholders
INNOVATE AND GROW THE BUSINESS FOR OUR CUSTOMERS AND SHAREHOLDERS • We will continue to invest in our core transmission and distribution business while pursuing unregulated business opportunities in Ontario • Much of our tran smission and distribution system was built in the 1950s and 1960s • Last y
Slide 22: Growth Opportunities and Future Investments
GROWTH OPPORTUNITIES AND FUTURE INVESTMENTS • 58 local distribution companies in Ontario • Pending decision of our $105 million purchase of Peterborough's electric utility and our $41 million purchase of Orillia Power Distribution Company • $150 million investment • Hydn> Ser..,! °"" in a state-of-t
Slide 23: Pursuing Innovative Unregulated Opportunities
PURSUING INNOVATIVE UNREGULATED OPPORTUNITIES • Unregulated opportunities to diversify our portfolio and respond to changing needs • Hydro One Telecom subsidiary offers fibre-optic capacity to organizations and enhanced suite of cloud services
Slide 24: Bringing Our Strategy to Life
BRINGING OUR STRATEGY TO LIFE Strong leadership to drive our strategy forward and grow shareholder value
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Slide 26: Investor Day
hyd 'OQhe INVESTOR DAY
Slide 27: Darlene Bradley
DARLENE BRADLEY Chief Safety Officer Hydro One
Slide 28: Safety Related Goals
SAFETY RELATED GOALS Stronger safety culture Robust safety analytics Grass-roots employee engagement
Slide 29: Current State
CURRENT STATE 4oF10 most dangerous ~--- occupations • Success in reducing recordable iniuries • Hydro One is committed to eliminating serious iniuries from our organization
Slide 30: Health & Safety Performance
HEALTH & SAFETY PERFORMANCE •Journey to Zero - our commitment to an injury-free workplace • Hydro One has reduced the rate of recordable injuries to our target of less than 1.0 OUR GOAL IS TO MAINTAIN OUR 2019 LEVEL OF PERFORMANCE GOING FORWARD
Slide 31: 10-Year Evolution: Health & Safety Performance
10-YEAR EVOLUTION: HEALTH & SAFETY PERFORMANCE 6_ 6z 3 _ LLJ :::> @2_ °" u... LLJ BENCHMARK ~ l_ BEST 8°" <1 ~ o_ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 32: Safety Improvement Plan
SAFETY IMPROVEMENT PLAN THREE KEY AREAS OF FOCUS • Demonstrating Safety Leadership • Strengthening our Safety Management System • Listening, Learning and Taking Action ZERO SERIOUS INJURIES BY 2024
Slide 33: Listening, Learning and Taking Action
LISTENING, LEARNING AND TAKING ACTION ZERO SERIOUS INJURIES
Slide 34: Uncompromising When It Comes to Safety
UNCOMPROMISING WHEN IT COMES TO SAFETY Our Safety Plan supports our strategic priority to be the sa fest and most efficient utility
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Slide 36: Investor Day 2020
INVESTOR DAY hyd Ohe 2020
Slide 37: David Lebeter
DAVID LEBETER Chief Operating Officer Hydro One
Slide 38: New Ontario-Focused Corporate Strategy
NEW ONTARIO-FOCUSED CORPORATE STRATEGY Plan, design and build Be the safest and most a grid for the future efficient utility
Slide 39: One of the Largest Pure Play Electric T&D Companies in North America
ONE OF THE LARGEST PURE PLAY ELECTRIC TRANSMISSION AND DISTRIBUTION COMPANIES IN NORTH AMERICA ' ' 98% 30,000 123,000 ~1.4M of Ontario's circuit kilometers of circuit kilometers of residential and transmission transmission lines distribution lines business customers capacity served by our local dist
Slide 40: Why Investments Need to Be Made
WHY INVESTMENTS NEED TO BE MADE INVESTING $10 BILLION OVER 5 YEARS AS WE MODERNIZE OUR GRID: • Seizing new opportunities from changing technologies • Electric vehicles • Distributed Generation • Reinvesting in aging infrastructure • Goal of increasing resilience and reliabi lity
Slide 41: Internal, Regulated Growth
INTERNAL, REGULATED GROWTH THAT DRIVES RELIABILITY, RESILIENCE AND RETURNS Planned annual transmi ssion capi tal investments of S1.2 billion to S1.4 billion through 2024 Planned annual distribution capital investments of $690 - 750 million th rough 2024
Slide 42: Using New Technology to Make Our Grid More Resilient
USING NEW TECHNOLOGY TO MAKE OUR GRID MORE RESILIENT
Slide 43: Increasing Reliability Through Forestry
INCREASING RELIABILITY THROUGH FORESTRY
Slide 44: Efficiency Initiatives
EFFICIENCY INITIATIVES ~ ~ Design Efficiently allocate lower cost capital to aging alternatives assets @ ~ Improve grid reliability ICS .-~ C0=0:J ~ Optimize Modernize our our fleet workforce
Slide 45: Protecting Our Critical Infrastructure
PROTECTING OUR CRITICAL INFRASTRUCTURE • C lose coordination with government security agencies • Investing in protection and training • lncreasi ng our monitoring • Working with peers across industries
Slide 46: Powered by Collaboration
POWERED BY COLLABORATION HARNESSING IDEAS AND INNOVATION FOR A MORE EFFICIENT, RELIABLE GRID BY: • Leveraging our first-class workforce • Commi tment to diversity
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Slide 48: Investor Day
hyd 'OQhe INVESTOR DAY
Slide 49: The Power of Partnerships
=a << [ok = le} S THE POWER OF PARTNERSHIPS Ava Hill Former elected Chief of the Six Nations of the Grand River First Nations Jason Fitzsimmons Chief Corporate Affairs & Customer Care Officer Peter Quiring President & CEO Nature Fresh Farms > “a a eo \e) all vw a] > 7s
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Slide 51: Investor Day
hyd 'OQhe INVESTOR DAY
Slide 52: Chris Lopez
CHRIS LOPEZ Chief Financial Officer Hydro One
Slide 53: Enhancing Value, Delivering Results in 2019
ENHANCING VALUE, DELIVERING RESULTS IN 2019 29°/o Totol Shareholder Return H 110tW S&P/ISX C..,.IUitiits lnilu :..=: 31.5" S&P/ISX c.,li1t 221\ S&P 500 lll<iit U1tdit$ I00.1 vs" S&PSOOlnd11 31.5" $1.78 in capitol investments with plans to grow ••••• 11111 2015 201' 2011 2011 2019 ~ 20'11 f 10'22f 10
Slide 54: Enhancing Value, Delivering Results Since the IPO
ENHANCING VALUE, DELIVERING RESULTS SINCE THE IPO Historical and forecasted rate growth 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F - 5%Historical Rate Base Growth - 5%Forecasted Rate Base Growth #tf#5°/o #tf#7°/o #tf#5°/o Historical Rate Historical Ad justed Historical Base Growth EPS G
Slide 55: An Ontario-Focused Growth Strategy
AN ONTARIO- FOCUSED GROWTH STRATEGY Modernizing the grid Sustaining a reliable grid ~ Consolidation with ~ our LDC partners
Slide 56: $10B of Capital Investment Driving Rate Base Growth
$108 OF CAPITAL INVESTMENT DRIVING RATE BASE GROWTH Approximately $28 of Annual Capital Investments 1904 1987 2007 2130 2140 2020F 2021F 2022F 2023F 2024F • Trullllll&ioo OislriWtion Otlt• 57.0B s2.2B 50.98 Cupitol Investments by 2024 • Svstcinmenl Oevelopeme,.. Other
Slide 57: Efficiency Initiatives
EFFICIENCY INITIATIVES OPERATIONAL INI VES ~ Optimize Modernize our our fleet workforce ~ © Strategic Optimal cycle sourcing protocol CIES AT THE ATE OFF r ~?-;.o c:::.i ~~~ 1QJ Leverage in-house In-source customer expertise call centre
Slide 58: Core Rate Base Growth
AN ONTARIO- FOCUSED GROWTH STRATEGY JI nn CORE RATE BASE GROWTH
Slide 59: LDC Consolidation
AN ONTARIO- FOCUSED GROWTH STRATEGY LDC CONSOLIDATION HydroO,,. • Served 640,000 km' '""le• ierritory Other Utility Served
Slide 60: Growth in Our Unregulated Business
AN ONTARIO- FOCUSED GROWTH STRATEGY GROWTH IN OUR UNREGULATED BUSINESS • Telecom • Energy Management Services • Ivy Charg ing Network
Slide 61: Committed to a Strong Balance Sheet
COMMITTED TOA STRONG BALANCE SHEET Hydro One Inc. (liOI l S&P DBRS Moody's A- I AI Oowl I s1obl. A(high) I 1-l (low) /s1able A3 I Primt-2 /s1nble 56.3°/o 12.2o/o Debi to Capilali za tion FFO to Debt $12.68 $1.lB Long Term Debt Recent Debt Issuance Outstanding I I} As al O.Cemb.r 31, 20 19 (2} As al
Slide 62: $1.1 Billion Debt Issuance
COMMlnED TOA STRONG BALANCE SHEET $1.1 BIWON DEBT ISSUANCE 5 YEAR 116% 10 YEAR 2.16% 30 YEAR 2.113 Lowest rates ever achieved in 10 and 30 year borrowings by any corporate issuer in the Canadian debt market
Slide 63: Guidance
2022 GUIDANCE $0.11 $0.02 $0.08 $0.02 2019 Basic 2018 Distribution Normalizing Insurance Merger Related Lake Superior 2019 Normalized 2022 Basic EPS Decision Catch-up to Distribution Costs Link EPS EPS Allowed ROE
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Slide 65: Investor Day
hyd 'OQhe INVESTOR DAY
Slide 66: Mark Poweska
MARK POWESKA President and Chief Executive Officer Hydro One
Slide 67: New Ontario-Focused Corporate Strategy
NEW ONTARIO-FOCUSED CORPORATE STRATEGY Plan, design Be the safest Be a trusted Advocate for Innovate and and build a and most partner our customers grow the grid for the efficient utility and help them business future make informed decisions
Slide 68: INN
INN NS \ \ N PSS SK SS SS Ned.