Slide 1: Investor Overview
Investor Overview Post First Quarter 2016 One of North America’s largest electric utilities TSX: H
Slide 2: Investment Overview
Investment Overview • Hydro One is amongst the largest electric utilities in North America, with a market capitalization of $14 billion • Significant scale and leadership position in Ontario, home to ~38% of Canada’s population • Transmission network serves 96% of Ontario, together with a local dist
Slide 3: Hydro One at a Glance (Full Year 2015)
Hydro One at a Glance (Full Year 2015) Total Revenue (Hydro One Limited) Overview of Regulated Business (Hydro One Inc.) Revenue Net of Purchased Power1 EBIT 40% 49% $3,035M 51% Total Assets $1,222M 60% Unregulated 99% $6.5 Billion Regulated 1% 43% Capital Investments $21.3B Rate Base2 57% 43% 40% $
Slide 4: Corporate and Management Structure
Corporate and Management Structure Corporate Structure Public Company Hydro One Limited TSX: H 100% 100% Public Debt Issuer Hydro One Inc. 100% 100% Hydro One Networks Hydro One Remote Hydro One Telecom Inc. Communities Inc. Inc. Rate-Regulated Businesses Non-Rate-Regulated (99% of revenue) Business
Slide 5: Core Management Priorities
Core Management Priorities • Greater focus on and integration of customers' needs into business decision making • Continuous focus on increased efficiency and productivity • Accelerate effectiveness and efficiency of capital deployment • Make Hydro One a rewarding and safe place to work for our empl
Slide 6: Transmission Business
Transmission Business Transmission Network Key Points • One of North America's largest electric transmitters, owning and operating 96% of Ontario’s network • Transmission produces reliable cash flow with low volatility under Ontario Energy Board (OEB) cost of service regulation • Growing rate base w
Slide 7: Local Distribution Business (LDC)
Local Distribution Business (LDC) Electric Distribution Footprint Key Points • The largest electric distributor in Ontario, with 1.3 million residential and business customers, and 55 LDC wholesale customers • Distribution is a stable, rate-regulated business operating under OEB cost of service mode
Slide 8: Regulated Capital Investment
Regulated Capital Investment Projected Capital Investments* ($M) Projected Rate Base Growth* $1,643 $1,612 $1,668 $1,750 $1,652 $21,454 $20,279 $19,300 $18,441 $17,626 $16,914 $729 $706 $692 $690 $663 $937 $920 $978 $1,021 $989 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Transmission Dist
Slide 9: Two Representative Medium Scale Projects
Two Representative Medium Scale Projects Clarington Transmission Station Toronto Midtown Transmission Reinforcement Key points Key points • Estimated Total Project Cost: $297 million • Estimated Total Project Cost: $123 million • Capital Cost To Date: $142 million • Capital Cost To Date: $101 millio
Slide 10: Pending Great Lakes Power Transmission Acquisition
Pending Great Lakes Power Transmission Acquisition GLPT Relative to Hydro One Transmission Operations Key Points • Rare opportunity to expand already significant transmission footprint in Ontario • Increases Hydro One’s transmission coverage to ~98% of province-wide total capacity • Expected to be e
Slide 11: Regulatory Environment
Regulatory Environment Who: Provincial Government What: Policy, Legislation, Regulations Who: Ontario Energy Board (OEB) What: Independent Electric Utility Price and Service Quality Regulation Who: Independent Electricity System Operator What: Wholesale Power Market Rules, Intermediary,
Slide 12: OEB Framework
OEB Framework • Transmission and distribution businesses regulated by the Ontario Energy Board (OEB) • Deemed debt / equity ratio of 60% / 40% in both transmission and distribution segments • Hydro One has earned or exceeded its allowed ROE on a consolidated basis over past five years 2016 2016 Effe
Slide 13: Understanding the Typical Hydro One End Customer Bill
Understanding the Typical Hydro One End Customer Bill End Customer Monthly Electric Bill Breakdown1 HST Regulatory Charges 12% 3% Local Electric 29% Distribution Charges Hydro One Portion of End Customer Customer Electric Bill Total Electric Bill 38% (Delivery Charges) 47% Electricity Transmission C
Slide 14: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Significant Available Liquidity ($M) Strong Investment Grade Credit Ratings (LT/ST/Outlook) Shelf Registrations 250 Hydro One Limited Hydro One Inc. (HOI) HOL: Hydro One Inc. Universal Shelf1 S&P A / A-1/ stable $8B 2,300 DBRS A (high) / R-1 (low) / stable HOI: 955
Slide 15: Common Share Dividend
Common Share Dividend Dividend Statistics Key Points Yield1 3.5% • Hydro One Limited paid its first quarterly dividend on March 31st, 2016 comprised of: Annualized Dividend2 $0.84 / Share $0.13 proportionate dividend from November (1) Based on closing share price on March 31, 2016 5, 2015 date of
Slide 16: Delivering Sustainable Energy
Delivering Sustainable Energy • Ontario was the first North American jurisdiction to fully eliminate coal electricity generation • Electricity now generated by: nuclear 60%, hydro 24%, natural gas 10%, wind 5%, solar 1% • One of only four utilities in Canada that have achieved the Sustainable Energy
Slide 17: Why Invest in Hydro One
Why Invest in Hydro One • One of the largest electric utilities in North America with significant scale and leadership position in Canada’s most populated province • Unique combination of electric transmission and local distribution, with no material exposure to commodity prices or generation • 99%
Slide 18: Appendix
Appendix One of North America’s Largest Electric Utilities 17 TSX: H
Slide 19: Top Transmission Investment Projects Underway
Top Transmission Investment Projects Underway Development Projects: Project Name Location Type Anticipated Estimated Capital Cost Status In-Service Date Cost To-Date Clarington Transmission Oshawa area New transmission 2018/2019 $297 million $142 million Project is in Station Eastern GTA station pro
Slide 20: Hydro One Limited - Financial Summary
Hydro One Limited - Financial Summary First Quarter Full Year ($ millions) 2016 2015 2015 2014 Revenue Transmission $386 $406 $1,536 $1,588 Distribution (Gross) 1,286 1,389 4,949 4,903 Distribution (Net of Power) 390 419 1,499 1,484 Other 14 13 53 57 Consolidated (Gross) 1,686 1,808 6,538 6,548 Cons
Slide 21: Fully Independent Board of Directors
Fully Independent Board of Directors David Denison, O.C., FCPA, FCA Currently a Director of Royal Bank of Canada (Audit James Hinds Currently a Corporate Director and the former Board Chair of the Committee Chair), Bell Canada, Allison Transmission and of Sinai Health Systems (Vice- Independent Elec
Slide 22: 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
Slide 23: For More Information
For More Information Investor Relations Website: http://www.hydroone.com/InvestorRelations/ Investor Relations Contacts: Bruce Mann Omar Javed Vice President, Investor Relations Director, Investor Relations bruce.mann@hydroone.com ojaved@hydroone.com 416 345 5722 416 345 5943 One of North America’s