Hawaiian Electric Industries · NYSE:HE
Hawaiian Electric Industries — EEI Financial Conference 2016
70 slides from Hawaiian Electric Industries's conference presentation, Nov 4, 2016
Slide 1: EEI Financial Conference November 2016
&&*TU'JOBODJBM$POGFSFODF /PWFNCFSm Hawaiian Electric Industries, Inc.
Slide 2: Building strength through Leadership
Building strength through Leadership
Slide 3: Constance H. Lau
Constance H. Lau President and Chief Executive Officer Chairman Chairman Hawaiian Electric Industries, Inc. Hawaiian Electric Company, Inc. American Savings Bank, F.S.B. Ms. Lau was named President and Chief Executive Officer of Hawaiian Electric Industries, Inc. (HEI) in May 2006. She also serves a
Slide 4: Alan M. Oshima
Alan M. Oshima President and Chief Executive Officer Hawaiian Electric Company, Inc. Mr. Oshima was named President and Chief Executive Officer of the Hawaiian Electric Company, Inc. effective Oct. 1, 2014. Mr. Oshima first joined Hawaiian Electric as a member of the board of directors in 2008. In 2
Slide 5: Richard F. Wacker
Richard F. Wacker President and Chief Executive Officer American Savings Bank, F.S.B. Mr. Wacker was named President and Chief Executive Officer of American Savings Bank (ASB) in November 2010 and serves as a director on the ASB Board. Prior to joining ASB, Mr. Wacker was Chairman of Korea Exchange
Slide 6: James A. Ajello
James A. Ajello Executive Vice President and Chief Financial Officer Hawaiian Electric Industries, Inc. Mr. Ajello joined Hawaiian Electric Industries, Inc. in January 2009. Prior to joining HEI, Mr. Ajello was Senior Vice President - Business Development at Reliant Energy, Inc. (Reliant). He joined
Slide 7: Greg C. Hazelton
Greg C. Hazelton Senior Vice President, Finance Hawaiian Electric Industries, Inc. Mr. Hazelton re-joined the Hawaiian Electric Industries, Inc. (HEI) leadership team as Senior Vice President, Finance in October 2016. Prior to assuming his current position at HEI, Mr. Hazelton was NW Natural’s Senio
Slide 8: Tayne S. Y. Sekimura
Tayne S. Y. Sekimura Senior Vice President & Chief Financial Officer Hawaiian Electric Company, Inc. Ms. Sekimura became Hawaiian Electric’s Senior Vice President & Chief Financial Officer in September 2009. She has held various leadership positions in the company in the areas of Internal Audit, Cor
Slide 9: Clifford H. Chen
Clifford H. Chen Treasurer, Manager of Investor Relations and Strategic Planning Hawaiian Electric Industries, Inc. Mr. Chen joined Hawaiian Electric Industries, Inc. in June 2014. Mr. Chen has a strong investment banking/corporate financial markets background, working for approximately 10 years at
Slide 10: 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 11: Forward-looking statements (continued)
• the ability of the Company and the Utilities to access the credit and capital markets (e.g., to obtain commercial paper and other short-term and long-term debt financing, including lines of credit, and, in the case of HEI, to issue common stock) under volatile and challenging market conditions, an
Slide 12: Forward-looking statements (continued)
• capacity and supply constraints or difficulties, especially if generating units (utility-owned or IPP-owned) fail or measures such as demand- side management (DSM), distributed generation (DG), combined heat and power or other firm capacity supply-side resources fall short of achieving their forec
Slide 13: Forward-looking statements (continued)
• federal, state, county and international governmental and regulatory actions, such as existing, new and changes in laws, rules and regulations applicable to HEI, the Utilities and ASB (including changes in taxation, increases in capital requirements, regulatory policy changes, environmental laws a
Slide 14: Forward-looking statements (continued)
• faster than expected loan prepayments that can cause an acceleration of the amortization of premiums on loans and investments and the impairment of mortgage-servicing assets of ASB; • changes in ASB’s loan portfolio credit profile and asset quality which may increase or decrease the required level
Slide 15: Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures
(;3/$1$7,212)+(,¶686(2)&(57$,181$8',7('121*$$30($685(6 +(,DQG+DZDLLDQ(OHFWULF&RPSDQ\PDQDJHPHQWXVHFHUWDLQQRQ*$$3PHDVXUHVWRHYDOXDWHWKHSHUIRUPDQFHRI+(,DQGWKHXWLOLW\ 0DQDJHPHQWEHOLHYHVWKHVHQRQ*$$3PHDVXUHVSURYLGHXVHIXOLQIRUPDWLRQDQGDUHDEHWWHULQGLFDWRURIWKHFRPSDQLHV¶FRUHRSHUDWLQJDFWLYLWLHV &RUHHDUQLQJVDQG
Slide 16: Reconciliation of GAAP to Non-GAAP Measures (HEI)
1 RECONCILIATION OF GAAP TO NON-GAAP MEASURES Hawaiian Electric Industries, Inc. and Subsidiaries (HEI) Unaudited Three months ended September 30 Nine months ended September 30 ($ in millions, except per share amounts) 2016 2015 2016 2015 HEI CONSOLIDATED (INCOME) EXPENSES RELATED TO THE TERMINATED
Slide 17: Reconciliation of GAAP to Non-GAAP Measures (Hawaiian Electric)
1 RECONCILIATION OF GAAP TO NON-GAAP MEASURES Hawaiian Electric Company, Inc. and Subsidiaries Unaudited Three months ended September 30 Nine months ended September 30 ($ in millions) 2016 2015 2016 2015 HAWAIIAN ELECTRIC CONSOLIDATED COSTS RELATED TO THE TERMINATED MERGER WITH NEXTERA ENERGY Pre-ta
Slide 18: Reconciliation of 2016 Non-GAAP Core EPS Guidance to GAAP
RECONCILIATION OF 2016 NON-GAAP (CORE) EPS GUIDANCE TO GAAP EPS GUIDANCE The 2016 reconciling adjustments from GAAP diluted earnings per common share (EPS) to core EPS are limited to the 2016 costs, fees and reimbursements (includes year-to-date actual results through 9/30/16) related to the recentl
Slide 19: Slide 19
Slide 20: Company Overview
Company Overview Providing Essential Electric and Financial Services Ensuring a Brighter and Greener Future for the Communities We Serve 1
Slide 21: YTD 2016 Highlights
YTD 2016 Highlights Third quarter results significantly impacted by the NEE merger termination fee Hawaiian Electric marks 125 years of serving Hawaii Comprehensive Update to Excellent deposit growth Power Supply Improvement and higher net interest Plans income Focused on opportunities to
Slide 22: HEI Profile
HEI Profile Subsidiary Company 1 Contributions to Net Income Bank 28% Utility 72% 2 Market capitalization $3.1B 2 Total enterprise value $4.5B Capital structure: consolidated common equity to total capitalization 56% LTM 3Q16 Consolidated GAAP ROE / Core ROE 12.3% / 9.5% 2 Dividend yield 4.3% 2015 D
Slide 23: Hawaiian Electric Company and American Savings Bank Service Area
Hawaiian Electric Company and American Savings Bank Service Area Utility: 100% Market Share for 95% of state; 2015 Rate Base of $2.75B Bank: 3rd Largest Bank in the State1; ~$6B in assets Maui Electric Kauai 4 Customers: 70,533 Generating capability: 268 MW Oahu 39 IPP firm contract power: 4 MW
Slide 24: HEI Historical Financial Performance (GAAP)
HEI Historical Financial Performance (GAAP) Net Income Diluted Earnings (in millions) 5-Year EPS CAGR: Per Share (EPS) $200 4.4% $2.00 1 $1.62 $1.63 1 $1.50 $1.60 $1.44 $1.42 $150 $1.21 $1.20 $100 $0.80 $50 $0.40 $114 $138 $139 $162 $168 $160 $0 $0.00 2010 2011 2012 2013 2014 2015 ROE 7.8% 9.2% 8.9%
Slide 25: HEI Historical Total Assets and Common Equity %
HEI Historical Total Assets and Common Equity % Total Assets Common Equity % 1 (in billions) $14.0 53.0% 52.8% $12.0 52.5% $10.0 52.0% 51.9% $8.0 51.5% 51.4% 51.4% $6.0 51.0% 50.8% $4.0 50.5% $2.0 50.0% $9.6 $10.2 $10.3 $11.2 $11.8 $0.0 49.5% 2011 2012 2013 2014 2015 6 1 Common equity as a percent o
Slide 26: Oil is the Primary Driver of Volatile Rates in Hawaii
Oil is the Primary Driver of Volatile Rates in Hawaii Breakdown of Hawaiian Electric Rates 1 Typical 40 Residential Bill Dec 2012 $163.64 35 Typical 31.8 Residential 30.9 31.5 Bill October 29.1 30 2016 Typical $130.77 Residential Bill 24.3 12.1 24.1 25 Dec 2009 13.5 12.4 $122.42 22.6 12.6 ¢/kWh 18.7
Slide 27: Reducing Customer Bills By Addressing Every Part of the Bill
Reducing Customer Bills By Addressing Every Part of the Bill 30.0 1 Increase plant efficiency 24.3 Increase “ramp” and “turndown rates” 25.0 Provide less back-up Demand response programs Substitute lower cost fuel and renewables (e.g., LNG) Fuel, 6.8 (28%) Deactivate older generating units 20.0 Purs
Slide 28: Renewable Energy Can Be Cost Competitive in Hawaii
Renewable Energy Can Be Cost Competitive in Hawaii Depending on Oil Price Volatility 0.40 Energy costs subject to volatile oil Renewables: long-term fixed price prices contracts with predetermined escalators 0.35 Solar 0.30 Biomass Energy Cost ($/kWh) 0.25 Wind December 2014 0.20 0.15 Dec 2010 Septe
Slide 29: Committed to Achieve Hawaii's 100% Renewable Energy Goal by 2045
Committed to Achieve Hawaii’s 100% Renewable Energy Goal by 2045 National leader in clean energy Hawaiian Electric achieved 23%1 integration, particularly in renewables in 2015 -- exceeded rooftop PV 2015 RPS target of 15% At times, renewable energy has powered up to ~50% of Working to achie
Slide 30: Clean Energy & Reliability Projects Drive Capital Investments
Clean Energy & Reliability Projects Drive Capital Investments Year End Rate Base Forecast ($ in millions) = Top of Range $3,250 = Bottom of Range $3,070 $3,000 $2,900 $2,950 $2,750 $2,830 $2,750 $2,750 $2,500 2015 2016 2017 2018 Rate Base Growth 0% 3-5% 5-7% 2 Capex (net of CIAC) $319 $340 $470 $500
Slide 31: Plant Additions – Baseline by Co. & Consolidated Major Projects
Plant Additions – Baseline by Co. & Consolidated Major Projects Major Projects = PUC approved projects > $2.5M 5-year (2011-2015) historical average baseline projects: (in millions) HE: $218 $500 HL: $48 ME: $42 $450 Total 308 $390 $400 $371 $350 $21 $350 $33 $26 $55 $299 $50 $300 $48 $2 $59 $28 $24
Slide 32: Rate Case Schedule
Rate Case Schedule As required by decoupling mechanism Hawaiian Electric 2014 Abbreviated Rate Case filed 6/27/14 Maui Electric 2015 Abbreviated Rate Case Filed 12/30/14 Hawaii Electric Light 2016 Test Year Rate Case Filed 9/19/16 Hawaiian Electric 2017 Test Year Rate Case to be filed1 Maui Electric
Slide 33: Utility Regulatory Model Highlights
Utility Regulatory Model Highlights Mechanisms Details of Mechanisms Sales decoupling via Predictable revenue stream a revenue balancing • Net revenues fixed at the level approved in the last rate case account • Revenues are no longer linked to KWH sales/electricity usage Rate adjustment Annual esca
Slide 34: Utility ROE
Utility ROE 1 Consolidated Utility ROE Twelve Months Ended September 30 10% 5% GAAP GAAP 7.9% 8.1% 0% 2015 2016 Consolidated Hawaiian Hawaii Maui Utility Electric Electric Light Electric 2015 7.9% 7.9% 6.3% 9.2%* 2016 8.1% 7.9% 8.5% 8.4% 2 Allowed 9.8% 10.0% 10.0% 9.0% 1 Calculated using net income
Slide 35: 2015 Consolidated Utility ROE Lag
2015 Consolidated Utility ROE Lag 0.5 0.2 0.4 0.4 9.8 0.3 9.1 8.0 1 2 3 4 5 Allowed ROE Non-recoverable PUC D&O ROE less Plant Adds PUC May 2015 No return on Actual items (ie. lowered interest and Over Decoupling Order pension assets 2015 ROE 1 2 incentive rate on RAM Cap treatment of above the comp
Slide 36: HEI ROE
HEI ROE 1 Consolidated ROE Twelve Months Ended September 30 15.0% 12.3% (GAAP) 9.1% (Core) 9.5% (Core) 8.1% (GAAP) 0.0% 2015 2016 Core Earnings Adjustment 2015 2016 GAAP GAAP Utility 7.9% 8.1% Bank 9.5% 9.8% See the reconciliation of GAAP to Non-GAAP (Core) measures preceding this presentation 1 Cal
Slide 37: Power Supply Improvement Plans (PSIP)
Power Supply Improvement Plans (PSIP) Docket No. 2014-0183 (update submitted April 1, 2016) Vision of how our islands could achieve 100% renewable energy by 2045 April 1, 2016 PSIP highlights: Achieves 100% renewable energy for Oahu by 2045, Molokai and Lanai by 2030 and Hawaii Island and Maui
Slide 38: Regulatory Response Framework: Response to D&Os
Regulatory Response Framework: Response to D&Os Regulatory Response Framework Demand Response (DR) Distributed Generation (DG) 2.0 Resource Portfolio Integrated Demand Response Integrated Interconnection Distributed Generation Power Supply Improvement Portfolio Plan (IDRPP) Queue Interconnection Pla
Slide 39: Bank YTD Performance On Track to Meet 2016 Targets
Bank YTD Performance On Track to Meet 2016 Targets Return on Assets (%) Loan Growth (%) 11.1 1.20 8.6 1.05 0.97 mid- ~0.90 0.89 single digit 3.4 -1.7 Target ASB ASB Peers YTD Target ASB ASB Peers YTD 3Q16 YTD 3Q16 YTD Net Interest Margin (%) Net Charge-offs (%) ~0.15 to 0.20 0.19 3.57 3.59 0.20 ~3.5
Slide 40: Quality Balance Sheet
Quality Balance Sheet Overall loan-to-deposit ratio of 88% 100% of ASB loans funded with low-cost core deposits Peer Banks1 ASB 6/30/16 (%) 9/30/16 (%) Core Deposits Loans Core 59 74 Deposits Loans 75 72 Certificates of Deposit 18 Investment Investment Certificates of Securities Securities Depos
Slide 41: Credit quality
Credit quality Quarter Revised Annual Target* (in millions) 0.60% $21.0 0.50% $16 to $19 0.40% $16.0 $12 0.30% $11.0 $7 to $9 0.20% 0.21% 0.15% 0.20% $6 $6.0 0.10% $5.7 0.10% $4.8 $4.8 $3.0 $2.5 $2.3 $1.0 0.00% $1.1 $0.8 $1.7 ($0.9) NCO ~0.15% -0.08% to 0.20% -0.10% ($4.0) 3Q15 4Q15 1Q16 2Q16 3Q16 2
Slide 42: Low Risk Loan Mix
Low Risk Loan Mix Maintaining targeted loan mix to improve interest rate risk Overall asset quality remains strong (Nonperforming assets to total loans and real estate owned of 1.12%) September 30, 2016 Commercial Construction $141 Commercial 3% Residential 1-4 real estate $2,055 $774 44% 16% HE
Slide 43: Nonperforming Assets Ratio
Nonperforming Assets Ratio Percentages Dollars in millions 1.75% $60.0 $53.2 1.50% $48.8 $50.0 $47.7 $47.1 $45.6 1.25% 1.12% $40.0 1.02% 1.03% 1.02% 1.00% 1.00% $30.0 0.75% $20.0 0.50% $10.0 0.25% 0.00% $0.0 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 1 2 ASB Loans Peers High Performing Peers
Slide 44: Pretax Noninterest Income
Pretax Noninterest Income (in millions) $20.0 $18.5 $18.5 $16.8 $16.6 $15.4 $5.7 $5.6 $5.7 $5.7 $5.5 $10.0 $5.9 $5.6 $5.7 $5.3 $5.2 $2.2 $2.1 $2.0 $2.2 $1.4 $2.3 $2.2 $1.0 $1.5 $3.4 $1.2 $0.6 $2.8 $2.4 $1.3 $1.3 $0.0 3Q15 4Q15 1Q16 2Q16 3Q16 Other Income Gains on sale of securities Mortgage banking
Slide 45: In Summary
In Summary HEI remains a strong company that is well- positioned to achieve its goals of providing long- term value for our customers, community, employees and shareholders Hawaiian Electric Company Industry leader for integrating renewables and distributed generation Focused on expanding cu
Slide 46: 2016 Core EPS Guidance
2016 Core EPS Guidance1 (as of November 4, 2016) HEI Core EPS: $1.72 – $1.78 per share No new equity issuances other than DRIP estimated at ~$35 million Utility Core EPS: $1.28 – $1.36 Bank: $0.50 – $0.54 Key Assumptions: Key Assumptions: Decoupling model: March 2015 D&O Net interest income: m
Slide 47: Appendix
Appendix 28
Slide 48: Consolidated 3Q Earnings – Net Income
Consolidated 3Q Earnings – Net Income (in millions) GAAP Net Income HC Non-Core Adjustments Core Net Income $127.1 (merger/spin-related) $47.0 $15.1 $63.3 $50.7 $52.4 $47.0 $43.0 $65.1 $43.0 $63.8 $13.5 $13.5 $15.1 ($5.8) ($4.1) $1.2 * ($1.7) 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 Utility Bank Holding Co (HC
Slide 49: Consolidated 3Q Earnings - EPS
Consolidated 3Q Earnings - EPS GAAP EPS (Diluted) HC Non-Core Adjustments Core EPS (Diluted) Per Share (Diluted) $1.17 (merger/spin-related) $0.43 $0.14 $0.58 $0.47 $0.49 $0.43 $0.40 $0.60 $0.59 $0.40 $0.12 $0.12 $0.14 $0.01* ($0.05) ($0.02) ($0.04) 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 Utility Bank Holding
Slide 50: Debt Maturities & Credit Ratings
Debt Maturities* & Credit Ratings (in millions) $1,400 $1,200 $1,000 $800 $600 $1,141 $400 $200 $50 $125 $75 $96 $50 $50 $0 2017 2018 2019 2020 2021 Thereafter HEI HECO to 2045 Credit Ratings HEI HECO ASB 1 S&P BBB-/Stable/A-3 BBB-/Stable/A-3 BBB/Stable/A-2 2 Moody’s Not rated/Stable/P-3 Baa2/Stable
Slide 51: 3Q16 Utility & Bank Financial Highlights
3Q16 Utility & Bank Financial Highlights (in millions) Utility Net Income Key utility core earnings 3Q16 $90 drivers fav/(unfav) vs ($ in millions after-tax) 3Q15 Net revenues*: Recovery of investments & costs 2 Fuel efficiency (2) $45 Net revenues -- O&M, excluding net income $43 $47 neutral items
Slide 52: Net Interest Margin
Net Interest Margin 4.50 Asset Yield % 4.25 4.00 3.84 3.80 Net Interest Margin (NIM) % 3.76 3.81 3.74 4.00 3.75 3.50 3.25 3.00 3.50 3Q15 4Q15 1Q16 2Q16 3Q16 0.60 Liability Cost % 3.62 3.58 3.57 3.53 3.55 0.40 3.00 0.23 0.23 0.24 0.22 0.22 3Q15 4Q15 1Q16 2Q16 3Q16 0.20 0.00 3Q15 4Q15 1Q16 2Q16 3Q16 1
Slide 53: ASB Peer Group – 2016
ASB Peer Group – 2016 * 1st Source Corporation SRCE Heritage Financial Corporation HFWA Ameris Bancorp ABCB HomeStreet, Inc. HMST BancFirst Corporation BANF Independent Bank Corp. INDB * BBCN Bancorp, Inc. BBCN Independent Bank Group, Inc. IBTX Berkshire Hills Bancorp, Inc. BHLB Lakeland Bancorp, In
Slide 54: Components of Decoupling
Components of Decoupling (Hawaii PUC Docket number: 2008-0274) (Hawaii PUC Docket number for the Decoupling Review: 2013-0141) Components 1. Sales Delinks utility revenues from electricity usage decoupling GAAP revenue = revenue approved in the last rate case (interim or final) via a Revenue Rec
Slide 55: Components of Decoupling
Components of Decoupling (Hawaii PUC Docket number: 2008-0274) (Hawaii PUC Docket number for the Decoupling Review: 2013-0141) Components 2. RAM Revenue Lesser of: Adjustment 2a - RAM Revenue Adjustment based on the RAM provisions in place prior to Allowed Order No. 32735* –or- (Order No. 32735)
Slide 56: Components of Decoupling
Components of Decoupling (Hawaii PUC Docket number: 2008-0274) (Hawaii PUC Docket number for the Decoupling Review: 2013-0141) Components 2a. RAM Revenue RAM for Rate Base – Component 2 Adjustment Change in rate base compared to test year levels in last rate case, for Determined certain items incl
Slide 57: Components of Decoupling
Components of Decoupling (Hawaii PUC Docket number: 2008-0274) (Hawaii PUC Docket number for the Decoupling Review: 2013-0141) Components 2b. RAM Revenue Cumulative RAM for 2016 RAM Revenue Adjustment – Adjustment Prior year RAM Cap Target Revenues times GDPPI (1.5% for 2016) + prior year Cap RAM
Slide 58: Hawai'i Electric Light Rate Case: 2016 Test Year
Hawai‘i Electric Light Rate Case: 2016 Test Year (Hawaii PUC Docket number: 2015-0170) Application (9/19/16) $19.3M Amount requested (6.5% increase over revenues at current effective rates) 1 Deprec. & amort. Expenses $37.8M 10.60% Return on average common with mechanisms equity Common equity capita
Slide 59: Hawai'i Electric Light Rate Case: 2010 Test Year
Hawai‘i Electric Light Rate Case: 2010 Test Year (Hawaii PUC Docket number: 2009-0164) Application Interim D&O Adj Interim D&O3 Final D&O4 (12/9/09) (1/14/11) (1/1/12) (4/9/12) $20.9M1 $6.0M2 $5.2M2 $4.5M2) Amount requested (6% increase) (1.7% increase) (1.5% increase) (1.3% increase) Deprec. & amor
Slide 60: Hawaiian Electric Rate Case: 2011 Test Year
Hawaiian Electric Rate Case: 2011 Test Year (Hawaii PUC Docket number: 2010-0080) Interim Adjusted Application D&O Interim D&O Final D&O (7/30/10) (7/26/11) (5/21/12) (9/1/12) Base Request $74M $53.2M2 $58.8M2,3 $58.1M4 (4.3% increase) (3.1% increase) (3.4% increase) (3.4% increase) $40M New Program
Slide 61: Maui Electric Rate Case: 2012 Test Year
Maui Electric Rate Case: 2012 Test Year (Hawaii PUC Docket number: 2011-0092) Application Interim D&O Final D&O (7/22/11) (6/1/12) ( 8/1/13) Base Request $27.5M1 $13.1M3 $5.3M4 (6.7% increase) (3.2% increase) (1.3% increase) $19.8M $19.7M $19.7M Depr. & amort. expenses Without Mechanism With Mechani
Slide 62: Utility Developments
Utility Developments Hawaii Electric Light Hawaii Electric Light 2016 test year rate case 2016 Rate Case application filed on Sept 19, 2016 (Docket No. 2015-0170) Requested $19.3 million (6.5% increase) Hawaiian Electric Interim decision estimated in Q3 2017 Company Hawaiian Electric Company
Slide 63: Hawaii's Oil Situation
Hawaii’s Oil Situation Low Sulfur Fuel Oil vs. Crude Oil Price per BBL December 2010 to September 2016 $145 $125 HAWAII OIL PRICES $105 HAWAII OIL PRICES HAWAII OIL PRICES $85 $65 $45 CRUDE OIL PRICES $25 Hawaii oil prices based on Hawaiian Electric low sulfur fuel oil inventory prices Crude oil pri
Slide 64: Hawaii Economic Trends
Hawaii Economic Trends Year-over-year Sep YTD Sep percent change 2016 2016 Tourism Arrivals +3.0% +2.6% Expenditures +10.4% +3.7% Unemployment Sep 2016 – Hawaii: 3.3%; U.S.: 5.0% YTD Sep 2016 Oahu single family home sales Real Estate up 5.2% Oahu median single family home price for Sep 2016 up
Slide 65: Outlook for Continued Improvement in Hawaii's Economy
Outlook for Continued Improvement in Hawaii’s Economy Year-over-year percent change unless noted 2015 2016 2017 Real state GDP 3.3 2.0 2.4 Real personal income 3.6 2.2 1.7 Unemployment (%) 3.6 3.1 3.0 Non-farm payroll jobs 1.7 1.4 0.8 Visitor arrivals 4.5 2.3 1.5 Source: University of Hawaii Economi
Slide 66: YTD Hawaii Visitor Arrivals and Expenditures
YTD Hawaii Visitor Arrivals up 2.6% and Visitor Expenditures up 3.7% 1400 30.00% Visitor arrivals (in thousands) Year vs. Year % Change Year vs. Year % Change 1200 15.00% 1000 0.00% Monthly Visitor Arrivals 800 -15.00% 600 -30.00% 400 -45.00% Sep-13 Sep-14 Sep-15 Sep-16 Yr-Yr% Change Visitor Arrival
Slide 67: Hawaii Unemployment Rate Remains Low at 3.3%
Hawaii Unemployment Rate Remains Low at 3.3% 12 Seasonally adjusted 8 US: 5.0% 4 Hawaii: 3.3% 0 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Hawaii U.S. 12 Not seasonally Not adjusted seasonally adjusted 8 Hawaii County: 3.7% Kauai County: 3.3% 4 Maui County: 3.3% Hon
Slide 68: Hawaii Real Estate
Hawaii Real Estate Oahu Number of Sales and Median Sales Price Sep 2009 – Sep 2016 $800,000 400 $600,000 300 Number of sales Median price $400,000 200 $200,000 100 $0 0 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Number of Sales Median Sales Price Median Sales Price Oahu, Maui, Hawaii, K
Slide 69: Public Utilities Commission of the State of Hawaii
Public Utilities Commission of the State of Hawaii The Governor, with the consent of the Senate, appoints three full-time commissioners to staggered six-year terms. Commissioners can serve no more than 12 consecutive years. Randall Y. Iwase, Chair (Appointed by Governor David Y. Ige) Appointed Cha
Slide 70: Corporate Headquarters and Investor Inquiries
HAWAIIAN ELECTRIC INDUSTRIES, INC. Institutional Investor Corporate Headquarters and Securities Analyst Inquiries Hawaiian Electric Industries, Inc. Please direct inquiries to: 1001 Bishop , Suite 2900 Clifford Chen Manager of Investor Relations & Strategic Planning Telephone: 808-543-7384 E-mail: c
Hawaiian Electric Industries — EEI Financial Conference 2016 on 6ix