Slide 1: Fourth Quarter 2022 Earnings Teleconference
Fourth Quarter 2022 Earnings Teleconference February 14, 2023 One of North America’s largest electric utilities TSX:H
Slide 2: 4Q22 Financial summary
4Q22 Financial summary Fourth Quarter Year to Date (millions of dollars, except earnings per share (EPS)) 2022 2021 % Change 2022 2021 % Change Revenues Transmission 480 421 14.0% 2,077 1,824 13.9% Distribution 1,371 1,347 1.8% 5,660 5,359 5.6% Distribution Revenues (Net of Purchased Power)2 476 433
Slide 3: 4Q22 Financial summary
4Q22 Financial summary The Company appointed David Lebeter as its President and Chief Executive Officer (CEO), demonstrating the depth of talent within the Company Selected Quarterly Financial Highlights: Financial Highlights ($M) – 4Q22 Year over Year Comparison The year-over-year increase of $59 m
Slide 4: Guidance range
Guidance range $2.26 $2.05 $1.75 $0.05 $0.03 $1.67 $0.06 $1.61 2022 EPS 2022 Gain on Sale of 2022 CDM Revenues 2022 Normalized for Normalizing for 2023 2022 Normalized EPS 2027 Surplus Property one-time items Rebase 1 1 Normalizing for 2023 rebase includes 100 basis points over-earn 2 EPS growth doe
Slide 5: Strong balance sheet and liquidity
Strong balance sheet and liquidity (as at December 31, 2022) Investment grade balance sheet with one of lowest debt costs in utility sector Significant available liquidity ($M) Strong investment grade debt ratings (long-term/short-term/outlook) Shelf registrations Hydro One Ltd. (HOL) Hydro One Inc.
Slide 6: Common share dividends
Common share dividends A Growing and Sustainable Dividend4 Key Points • Quarterly dividend declared at $0.2796 per common share ($1.1184 annualized) 0.13 • Targeted dividend payout ratio remains at 70% - 80% of net income 1.1051 1.0525 1.0023 • Attractive and growing dividend supported by stable, 0.
Slide 7: Disclaimers
Disclaimers Forward Looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws that is based on current expectations, estimates, forecasts and projections about Hydro One’s business and the industry in which Hydro One operat