Slide 1: 4Q15 Earnings Teleconference
4Q15 Earnings Teleconference February 12, 2016 One of North America’s largest electric utilities TSX: H
Slide 2: Hydro One Limited - Financial Summary
Hydro One Limited - Financial Summary ($ millions) 4Q15 4Q14 Change FY15 FY14 Change Revenue Transmission $361 $382 (5)% $1,536 $1,588 (3%) Distribution 1,148 1,268 (9)% 4,949 4,903 1% Distribution (Net of Power) 362 375 (3%) 1,499 1,484 1% Other 13 12 8% 53 57 (7%) Consolidated 1,522 1,662 (8%) 6,5
Slide 3: Great Lakes Power Transmission Acquisition
Great Lakes Power Transmission Acquisition GLP 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 accretive
Slide 4: Core Priorities
Core Priorities • Greater focus on customers' needs and better integration of them into business decision making • Adapt to the emerging technology landscape in our industry and position our business appropriately to win • Focus continuously on increased efficiency and productivity, and accelerate e
Slide 5: 2015 Fourth Quarter Financial Highlights
2015 Fourth Quarter Financial Highlights Financial Highlights – 4Q Year over Year Comparison Key Points • Unseasonably mild weather in In millions $CAD 4Q15 Q4 2015 Q4 2014 736 769 • Brampton divestiture as of August 31, 2014 479 • Timing of operating costs in 375 332 FY14 and storm related costs in
Slide 6: Net Income and Earnings Per Share
Net Income and Earnings Per Share In millions $CAD 4Q15 FY2015 Net Income $147 $713 Preferred Dividend - 13 Non-controlling interest 4 10 Net Income to Common 143 690 Shareholders Earnings Per Share $0.26 $1.39 Adjusted Earnings Per Share $0.24 $1.16 • Under GAAP, Earnings Per Share (unadjusted) req
Slide 7: Capital Investments and Rate Base Growth
Capital Investments and Rate Base Growth In millions $CAD 4Q15 4Q14 Change FY15 FY14 Change Capital Investments $451 $478 (6%) $1,663 $1,530 9% Transmission 251 265 (5%) 943 845 12% Distribution 198 211 (6%) 711 680 5% Other 2 2 0% 9 5 80% FY15 Rate Base Growth Transmission Distribution Key Points •
Slide 8: Strong Balance Sheet and Liquidity at 12/31/2015
Strong Balance Sheet and Liquidity at 12/31/2015 Significant Available Liquidity ($M) 250 Hydro One Ltd. Hydro One Inc. 3,500 2,300 1,491 Medium Term Note Shelf Undrawn Credit Facilities Commercial Paper Outstanding (Renewed 12/14/15) (Under $1.5Bn CP Program) Strong Investment Grade Credit Ratings
Slide 9: Common Share Dividend
Common Share Dividend Dividend Statistics Key Points • Hydro One Limited declared a quarterly dividend Yield1 3.8% of $0.34 to be paid on March 31st, 2016 Annualized Dividend $0.84 / Share • $0.34 dividend comprised of: $0.13 proportionate dividend from date of IPO to end Payout ratio on 2015 Net
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