Slide 1: Second Quarter 2017 Earnings Teleconference
Second Quarter 2017 Earnings Teleconference August 8, 2017 One of North America’s largest electric utilities TSX: H
Slide 2: Hydro One Limited – 2Q17 Financial Summary
Hydro One Limited – 2Q17 Financial Summary Second Quarter Year to Date ($ millions) 2017 2016 % Change 2017 2016 % Change Revenue Transmission $361 $381 (5.2%) $728 $767 (5.1%) Distribution 998 1,152 (13.4%) 2,277 2,438 (6.6%) Distribution (Net of Purchased Power) 349 349 - 739 739 - Other 12 13 (7.
Slide 3: 2017 Second Quarter Financial Changes
2017 Second Quarter Financial Changes Key drivers Financial Highlights ($M) – 2Q17 Year over Year Comparison • Revenue, net of power costs, for 2Q17 743 722 decreased 2.8%: Q2 2016 Q2 2017 • Revenue decrease reflects: Pending decision on the transmission rate filing, which is now anticipated in th
Slide 4: Regulatory Update
Regulatory Update 2018 – 2022 Distribution Rate Application • Filing made March 31, 2017 under the Custom Incentive Rate Making approach • 2018 is considered “rebasing” year where a cost of service forward test year rate model is applied • Revenue requirement for ensuing four years determined by i)
Slide 5: Pending Avista Acquisition
Pending Avista Acquisition (C$ in mm)3 Avista Business Overview 2016A Service Area Revenue $1,824 Service territories across WA, OR, ID, AK, and MT EBITDA $570 Vancouver BC AB Net Income $174 SK Seattle Olympia 2016 Rate Base 2016 Rate Base by State WA Portland MT Helena 22% Gas ID Gas, 5% OR Gas, 7
Slide 6: Pending Avista Acquisition: Strategic Rationale & Transaction Details
Pending Avista Acquisition Strategic Rationale & Transaction Details Diversification Allowed ROE Equity Capitalization • Increases geographic, economic, regulatory and asset class diversification ON 8.78% 40.00% • Allowed Equity Adds complementary and growing gas distribution WA 9.50% 48.50% • Retur
Slide 7: Pending Avista Acquisition
Pending Avista Acquisition (C$ in mm) ’16 Rate Base ’16 Rate Base by Geography ’16 Net Income Ontario, Ontario, 100% 100% $17,831 $721 Hydro One $17,831 100% Electric AK, 4% OR, 7% 22% Gas Avista $3,877 ID, 30% $3,877 $174 Avista WA, 59% Service Territory 78% Electric OR, 1% Avista, WA, 11% 3% Gas 1
Slide 8: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Significant Available Liquidity ($M) Strong Investment Grade Credit Ratings (LT/ST/Outlook) Shelf Registrations 250 Hydro One Inc. (HOI) Hydro One Limited HOL: Hydro One Inc. Universal Shelf3 S&P A / A-1/ negative1 $8B 2,300 DBRS A (high) / R-1 (low) / stable 715 H
Slide 9: Common Share Dividend Increased May 4th, 2017
Common Share Dividend Increased May 4th, 2017 Key Points Dividend Statistics Yield1 3.8% • Quarterly dividend increased 5% to $0.22 per share ($0.88 annualized); announced May 4, Annualized Dividend2,3 $0.88 / share 2017 • Targeted dividend payout ratio remains at (1) Based on closing share price on
Slide 10: 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