Slide 1: Fourth Quarter 2018 Earnings Teleconference
Fourth Quarter 2018 Earnings Teleconference February 21st, 2019
Slide 2: 4Q18 Financial Summary
HYDRO ONE LIMITED 4Q18 FINANCIAL SUMMARY Fourth Quarter YE (millions of dollars, except EPS) 2018 2017 % Change 2018 2017 % Change Revenue Transmission $410 $379 8.2% $1,754 $1,578 11.2% Distribution 1,138 1,049 8.5% 4,422 4,366 1.3% Distribution (Net of Purchased Power) 397 387 2.6% 1,523 1,491 2.2
Slide 3: 4Q18 & YE2018 Financial Highlights
4Q18 & YE2018 FINANCIAL HIGHLIGHTS Favourable weather led to positive earnings while our disciplined approach to capital delivery led to record assets being placed in service Financial Highlights ($M) – 4Q18 Year over Year Comparison Financial Highlights: The quarterly increase of $31 million or 8.2
Slide 4: Achievements and Efficiencies
ACHIEVEMENTS AND EFFICIENCIES Paving New Paths in Productivity Savings ($M) • Generated productivity savings totaling $135.5 million in 2018 totaling $53.3 million 2018 135.5 in OM&A and $82.2 million in capital and totaling a quarter of a billion dollars since $249.9M 2015 2017 89.5 • Move to Mobil
Slide 5: Regulatory Update
REGULATORY UPDATE 2018 – 2022 Distribution Rate Application • Oral hearing related to Hydro One Networks’ application for 2018-2022 distribution rates was held on June 11-28, 2018. • On July 20, 2018, Hydro One submitted its Argument-in-Chief. Intervenors had until August 10, 2018 to respond. Hydro
Slide 6: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY Investment grade balance sheet with one of lowest debt costs in utility sector Significant Available Liquidity ($M) Strong Investment Grade Credit Ratings (LT/ST/Outlook) Shelf Registrations 250 Hydro One Inc. (HOI) Hydro One Limited Hydro One Inc. HOL: Universal S
Slide 7: Common Share Dividends
COMMON SHARE DIVIDENDS Consecutive annual 5% increase to dividend announced on May 15th, 2018 Key Points Dividend Statistics • Quarterly dividend declared at $0.23 per share ($0.92 annualized) Yield1 4.5% • Targeted dividend payout ratio Annualized Dividend2,3 $0.92 / share remains at 70% - 80% of n
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