Hawaiian Electric Industries · NYSE:HE
Hawaiian Electric Industries — Q1 2025 Earnings Presentation
25 slides from Hawaiian Electric Industries's earnings presentation, May 9, 2025
Slide 1: HEI 1Q 2025 Financial Results
HEI 1Q 2025 Financial Results May 9, 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, including Core Earnings and Core Net Income. Reconciliations of those non-GAAP financial measures to the most directly compar
Slide 3: Repositioning for the Future
Repositioning for the Future Advancing Our Strategy and Laying the Foundation for Sustainable Growth Signed settlement agreements and resolution of subrogation issue pave path toward Resolution of wildfire tort litigation executing settlement and resolving tort litigation Moving forward as a simpler
Slide 4: Recent Legislative Actions
Recent Legislative Actions Successful 2025 Legislative Session Outcome Provides Increased Clarity to Path Ahead HELPING MAUI WILDFIRE TORT PROTECTING UTILITY’S ABILITY TO LIMITING CUSTOMER BILL IMPACTS OF LITIGATION SETTLEMENT MOVE PROCURE AFFORDABLE CLEAN WILDFIRE INVESTMENTS FORWARD ENERGY House B
Slide 5: Continued Momentum Toward Resolution of Wildfire Tort Litigation
Continued Momentum Toward Resolution of Wildfire Tort Litigation SUMMARY NEXT STEPS • Definitive settlement agreements signed in November of 2024, consistent • Second Circuit Court will review definitive settlement agreements for with key terms announced in August of 2024 final judicial approval • F
Slide 6: 1Q 2025 Financial Performance & Highlights
1Q 2025 Financial Performance & Highlights GAAP Results Include Wildfire Expenses and Loss on Sale 1Q Core EPS—Continuing Operations $0.26 1Q 2025 Earnings EPS $0.23 Income from continuing $26.7M $0.15 $0.40 operations (GAAP) $0.29 less: Maui wildfire expenses -$3.4M -$0.02 ($0.06) less: loss on sal
Slide 7: Maintaining Solid Liquidity as Financing Plan Progresses
Maintaining Solid Liquidity as Financing Plan Progresses LIQUIDITY UPDATE • As of the end of 1Q, the HoldCo and Utility had $492 million (including proceeds from ASB sale, used for debt reduction), and $130 million of unrestricted cash on hand, respectively – In addition, $479 million has been set a
Slide 8: Q&A
Q&A
Slide 9: Appendix
Appendix we
Slide 10: Delivering on Priorities
Delivering on Priorities Executing on Key Messages Communicated Following Maui Wildfires Immediately following 2023 wildfires August 2023 to present 2025 and beyond PRIORITIES COMMUNICATED PRIORITIES EXECUTED ON PRIORITIES GOING FORWARD Dividend suspension and RCF draws following • Execute settlemen
Slide 11: 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: ACCOMPLISHED: 1 Identify areas of high risk and drivers of risk Nearly $400 millio
Slide 12: Rapid Advancement of Wildfire Risk Reduction Efforts
Rapid Advancement of Wildfire Risk Reduction Efforts1 Grid Hardening and Redesign • Replaced or upgraded 2,806 wood poles • Replaced 28 miles of overhead copper conductor with stronger aluminum conductor • Replaced 5,038 expulsion fuses with firesafe fuses • Replaced 1,285 lightning arresters with f
Slide 13: Adjusted O&M Excluding Pension (non-GAAP)
Adjusted O&M Excluding Pension (non-GAAP)1 $ in millions $124.6 $122.0 GAAP TO NON-GAAP RECONCILIATION OF O&M, NET OF EXCLUSIONS 1Q 2024 1Q 2025 GAAP O&M $143.9 $145.7 (less): Pension1 12.3 12.1 Covered by surcharges 3.5 4.9 Covered by third parties 3.5 3.8 Loss on Sale of – 2.9 Receivable 1Q24 1Q25
Slide 14: Utility LTM ROE
Utility LTM ROE ROE (%) 9.5% (0.4%) 9.1% 0.1% (1.8%) (0.4%) 7.0% Allowed Non-recoverable ROE less Actual O&M, PIM Accrual Others, Net Actual Q1 ROE items (i.e. Incentive Structural Depreciation and 2025 compensation, Items Return on Core ROE advertising, charitable Rate Base contributions, etc.) ove
Slide 15: 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 16: 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 17: Status of Key Open Dockets
Status of Key Open Dockets Subject and Description Docket # Latest Developments Next Milestone Performance-based regulation 2018-0088 On February 27, 2025, the Commission issued Order No. 41575, which File consolidated rate case application before end of Proceeding to evolve regulatory framework to
Slide 18: Status of Key Open Dockets, Continued
Status of Key Open Dockets, Continued Subject and Description Docket # Latest Developments Next Milestone Integrated Grid Planning (IGP) 2018-0165 On September 6, 2024, the PUC issued an order which provided direction Within 12 months of September 2024, Hawaiian Electric Next phase of long-range pla
Slide 19: 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 20: 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 21: 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 22: 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 23: Reconciliation of GAAP to Non-GAAP Measures—HEI
Reconciliation of GAAP to Non-GAAP Measures—HEI Three months ended March 31 (in thousands) 2025 2024 Maui windstorm and wildfire related costs Pretax expenses: Legal expenses $ 8,850 $ 14,944 Outside services expenses 124 1,122 Other expenses 5,928 9,336 Interest expense 2,031 4,825 Pretax expenses
Slide 24: Reconciliation of GAAP to Non-GAAP Measures—Hawaiian Electric
Reconciliation of GAAP to Non-GAAP Measures—Hawaiian Electric Three months ended March 31 (in thousands) 2025 2024 Maui windstorm and wildfires related costs Pretax expenses: Legal expenses $ 3,849 $ 10,735 Outside services expenses — 784 Other expenses 5,695 9,141 Interest expenses 1,752 3,907 Pret
Slide 25: Reconciliation of GAAP to Non-GAAP Measures—Holding Company & Other
Reconciliation of GAAP to Non-GAAP Measures—Holding Company & Other Three months ended March 31 (in thousands) 2025 2024 Maui windstorm and wildfires related costs Pretax expenses: Legal expenses $ 5,001 $ 4,209 Outside services expenses 124 338 Other expenses 233 195 Interest expenses 279 918 Preta
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