Hawaiian Electric Industries · NYSE:HE
Hawaiian Electric Industries — Q4 2024 Earnings Presentation
27 slides from Hawaiian Electric Industries's earnings presentation, Feb 21, 2025
Slide 1: 4Q and Full Year 2024 Financial Results
HEI 4Q and Full Year 2024 Financial Results February 21, 2025
Slide 2: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in
Slide 3: Strong Execution Through a Pivotal Year
Strong Execution Through a Pivotal Year Executed on strategic objectives communicated following the Maui wildfires Signed settlement agreements in the Maui wildfire tort litigation, significantly enhancing clarity to HEI’s path ahead; Favorable Hawaii Supreme Court decision creates clearer line of s
Slide 4: Rapid Advancement of Wildfire Risk Reduction Efforts
Rapid Advancement of Wildfire Risk Reduction Efforts Grid Hardening and Redesign • Replaced or upgraded 2,124 wood poles • Replaced over 20 miles of overhead copper conductor with stronger aluminum conductor • Replaced 3,558 expulsion fuses with firesafe fuses • Replaced 680 lightning arresters with
Slide 5: Enhanced Wildfire Safety Strategy Specifies Path Forward
Enhanced Wildfire Safety Strategy Specifies Path Forward Updated strategy builds upon actions to-date, establishes 3-year action plan to further reduce risk HOW FURTHER RISK REDUCTION WILL BE WHAT WE EXPECT TO INVEST: ACCOMPLISHED1: 1 Identify areas of high risk and drivers of risk Nearly $400 milli
Slide 6: Continued Momentum Toward Resolution of Wildfire Tort Litigation
Continued Momentum Toward Resolution of Wildfire Tort Litigation SUMMARY NEXT STEPS • Final settlement agreements signed in November of 2024, consistent with • Second Circuit Court will review final settlement agreements for final key terms announced in August of 2024 judicial approval • Hawaii Supr
Slide 7: Strategic review process for ASB Completed
Strategic review process for ASB Completed ASB’s 2024 results presented as discontinued operations Core income from discontinued operations1 FY 2024 $79.4 Loss from discontinued operations (GAAP) -$103.5M $72.6 less: Net loss from sale of 90.1% of ASB -$115.8M less: Goodwill impairment recorded in -
Slide 8: FY2024 Financial Performance—Continuing Operations
FY2024 Financial Performance—Continuing Operations FY 2024 EARNINGS EPS Income from continuing operations (GAAP) -$1,322.5M -$10.42 less: wildfire-related expenses -$1,420.7M -$11.19 less: asset Impairment -$26.1M -$0.21 Core1 $124.3M $0.98 Core income from continuing operations1 Core EPS – continui
Slide 9: Maintaining Solid Liquidity as Financing Plan Progresses
Maintaining Solid Liquidity as Financing Plan Progresses LIQUIDITY UPDATE • As of the end of 4Q, the HoldCo and Utility had $566 million (including proceeds from ASB sale), and $184 million of unrestricted cash on hand, respectively – ~$380 million in proceeds from the ASB sale will be used to retir
Slide 10: Q&A
Q&A
Slide 11: Appendix
Appendix —_—e
Slide 12: 4Q24 Financial Performance
4Q24 Financial Performance 4Q 2024 EARNINGS EPS Income from continuing operations (GAAP) $29.2M $0.17 less: wildfire-related expenses -$5.6M -$0.03 Core1 $34.8M $0.20 $75.0 $65.0 Core Net Income1 Core EPS1 $55.0 $37.3 $34.8 $0.34 $45.0 $35.0 $0.20 $25.0 $48.9 $49.0 $0.44 $15.0 $0.28 $5.0 ($5.0) ($11
Slide 13: Full Year Adjusted O&M Excluding Pension (non-GAAP)
Full Year Adjusted O&M Excluding Pension (non-GAAP)1 $ in millions $524.2 GAAP TO NON-GAAP RECONCILIATION OF O&M, $463.8 NET OF EXCLUSIONS 2023 2024 GAAP O&M $533.6 $614.7 (less): Pension1 46.1 49.2 Covered by surcharges 10.6 18.0 Covered by third parties 13.1 17.8 Loss on Sale of 5.6 Receivable 202
Slide 14: Adjusted O&M Excluding Pension (non-GAAP)
Adjusted O&M Excluding Pension (non-GAAP)1 $ in millions $130.5 GAAP TO NON-GAAP RECONCILIATION OF O&M, NET OF EXCLUSIONS 4Q 2023 4Q 2024 $107.9 GAAP O&M $126.4 $158.9 (less): Pension1 11.0 12.5 Covered by surcharges 3.7 5.0 Covered by third parties 3.7 5.2 Loss on Sale of 5.6 Receivable 4Q23 4Q24 A
Slide 15: Utility LTM ROE
Utility LTM ROE ROE (%) 9.5% 0.4% 9.1% 0.2% 1.9% 0.1% 7.3% Allowed Non-recoverable ROE less Actual O&M, PIM Accrual Others, Net Actual Q4 ROE items (i.e. Incentive Structural Depreciation and 2024 compensation, Items Return on Core ROE advertising, charitable Rate Base contributions, etc.) over Reco
Slide 16: 2025 – 2027 Wildfire Safety Strategy (WSS) Details
2025 – 2027 Wildfire Safety Strategy (WSS) Details Identifying areas of high risk and drivers of risk will help inform wildfire mitigation efforts. • Hawaiian Electric developed a geospatial wildfire risk map specific to the utility’s service territory, helping to better understand fire risk on the
Slide 17: Fossil Fuel Cost Risk Sharing
Fossil Fuel Cost Risk Sharing • Symmetrical mechanism • Variations in fossil fuel price above or below baseline shared 98% customers / 2% utility • Applies to utility fossil fuel generation (not IPP generation or non-fossil fuels), includes fuel efficiency impacts • Baseline price: January fuel pric
Slide 18: Status of Key Open Dockets
Status of Key Open Dockets Subject and Description Docket # Latest Development Next Milestone Performance-based regulation 2018-0088 On July 30, 2024, the PUC issued an order providing further guidance Pending the Commission’s order on whether and how to Proceeding to evolve regulatory framework to
Slide 19: Status of Key Open Dockets, Continued
Status of Key Open Dockets, Continued Subject and Description Docket # Latest Development Next Milestone Integrated Grid Planning (IGP) 2018-0165 On September 6, 2024, the PUC issued an order which provided direction Within the next 12 months, Hawaiian Electric shall hold Next phase of long-range pl
Slide 20: Status of Key Open Dockets, Continued
Status of Key Open Dockets, Continued Subject and Description Docket # Latest Development Next Milestone Land Sale Application: Cooke Street Property 2024-0144 On October 8, 2024, the PUC issued a decision and order which approves None An application to request PUC approval to sell certain land in K
Slide 21: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements This presentation made by Hawaiian Electric Industries, Inc. (HEI) and Hawaiian Electric Company, Inc. (Hawaiian Electric) and their subsidiaries contain “forward-looking statements,” which include statements that are predictive in nature, depend
Slide 22: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements • the timing, speed and extent of changes in interest rates and the shape of the yield curve, which could result in higher borrowing costs and changes in market liquidity; • the continued ability of the Company and the Utilities to access the cred
Slide 23: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements • the ability of IPPs to deliver the firm capacity anticipated in their power purchase agreements (PPAs); • the potential that, as IPP contracts near the end of their terms, there may be less economic incentive for the IPPs to make investments in
Slide 24: Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures
Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures HEI management uses certain non-GAAP measures to evaluate the performance of HEI. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies’ core operating activities. Core earnin
Slide 25: Reconciliation of GAAP to Non-GAAP Measures—Hawaiian Electric Industries
Reconciliation of GAAP to Non-GAAP Measures—Hawaiian Electric Industries 25
Slide 26: Reconciliation of GAAP to Non-GAAP Measures—Hawaiian Electric Company
Reconciliation of GAAP to Non-GAAP Measures—Hawaiian Electric Company 26
Slide 27: Reconciliation of GAAP to Non-GAAP Measures—Holding and Other Companies
Reconciliation of GAAP to Non-GAAP Measures—Holding and Other Companies 27
Hawaiian Electric Industries — Q4 2024 Earnings Presentation on 6ix