Slide 1: Second Quarter 2018 Earnings Teleconference
Second Quarter 2018 Earnings Teleconference August 14th, 2018
Slide 2: 2Q18 Financial Summary
HYDRO ONE LIMITED 2Q18 FINANCIAL SUMMARY Second Quarter YTD ($ millions) 2018 2017 % Change 2018 2017 % Change Revenue Transmission $430 $361 19.1% $851 $728 16.9% Distribution 1,036 998 3.8% 2,181 2,277 (4.2%) Distribution (Net of Purchased Power) 362 349 3.7% 756 739 2.3% Other 11 12 (8.3%) 21 24
Slide 3: 2Q18 Financial Highlights
2Q18 FINANCIAL HIGHLIGHTS Demonstration of true potential with strong execution, favourable weather, and increased productivity Financial Highlights ($M) – 2Q18 Year over Year Comparison Financial Highlights: 803 Revenue for 2Q18, net of purchased power, increased by 722 11.2% Q2 2017 Q2 2018 Revenu
Slide 4: 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 5: Peterborough Distribution
PETERBOROUGH DISTRIBUTION Ontario Municipal Utility Acquisition • Hydro One reached a definitive agreement with the City of Peterborough to acquire the business and distribution assets of Peterborough Distribution Inc. (PDI) • $105 million purchase price • Approximately 37,000 customers in Peterboro
Slide 6: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY Investment grade balance sheet with one of lowest debt costs in utility sector Significant Available Liquidity ($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 increased to $0.23 per share ($0.92 annualized) Yield1 4.6% • Targeted dividend payout ratio remains at 70% - 80% of net income Annualized Dividend2,3 $0.
Slide 8: Independent Board of Directors
INDEPENDENT BOARD OF DIRECTORS Tom Woods Currently a Director of Bank of America Corporation, Alberta Investment Timothy Hodgson Currently Managing Partner of Alignvest Capital Management. Previously, Management Corporation, Providence St. Joseph’s St. Michael’s Health Care (Board Chair) and Special
Slide 9: 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