Slide 1: Second Quarter 2023 Earnings Teleconference
Second Quarter 2023 Earnings Teleconference August 9, 2023
Slide 2: 2Q23 Financial summary
2Q23 Financial summary Second Quarter Year to Date (millions of dollars, except earnings per share 2023 2022 % Change 2023 2022 % Change (EPS)) Revenues Transmission 559 516 8.3% 1,114 1,035 7.6% Distribution 1,285 1,314 (2.2%) 2,794 2,831 (1.3%) Distribution Revenues (Net of Purchased Power)1 487 4
Slide 3: 2Q23 Financial summary
2Q23 Financial summary The Company continues to execute on its strategy to support economic growth and a clean energy future in Ontario with progress made with various transmission line projects such as Waasigan, Chatham to Lakeshore and St. Clair. Financial Highlights ($M) – 2Q23 Year over Year Com
Slide 4: 2Q23 Financial summary
2Q23 Financial summary Selected Quarterly Financial Highlights: Regulated Capital Investments ($M) Assets Placed in Distribution OM&A costs increased by $15 million or 8.7% year-over-year primarily Transmission Distribution Service ($M) due to: 19.9% 1 24.5% • Higher corporate support costs mainly a
Slide 5: Strong balance sheet and liquidity
Strong balance sheet and liquidity (as at June 30, 2023) Investment grade balance sheet with one of lowest debt costs in utility sector Significant available liquidity ($M) Strong investment grade debt ratings (long-term/short-term/outlook) Shelf registrations 250 Hydro One Limited (HOL) Hydro One I
Slide 6: Common share dividends
Common share dividends Key Points A Growing and Sustainable Dividend4 • Quarterly dividend declared at $0.2964 per common share ($1.1856 annualized) • Targeted dividend payout ratio remains at 70% - 80% of net income 0.13 • Attractive and growing dividend supported by stable, 1.0525 1.1051 regulated
Slide 7: Disclaimers
Disclaimers Forward Looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws that is based on current expectations, estimates, forecasts and projections about Hydro One’s business and the industry in which Hydro One operat