INVESTOR OVERVIEW Post First Quarter 2020 One of North America’s largest electric utilities TSX:H WHY INVEST IN HYDRO ONE A unique low-risk opportunity to participate in the transformation of a premium, large scale regulated electric utility • One of the largest electric utilities in North America with significant scale and leadership position across anada’s most populated province. ~5%~5 % Rate Base Growth • One of the strongest investment grade balance sheets in the North American utility sector. • Unique combination of pure-play electric power transmission and local distribution, with no generation or material exposure to commodity prices. EPS Growth Over • Stable and growing cash flows with 99% of business fully rate-regulated in a constructive, transparent and 4 -7%~5% collaborative regulatory environment. 2019 - 2022 • Predictable self-funding organic growth profile with expanding rate base and strong cash flows, together with broad support for refurbishment of aging infrastructure and with ~5% expected rate base CAGR1. No Average Annual external equity required to fund planned growth. ~5%~5% Dividend Growth • Increased $1.0144 annualized dividend with 70% - 80% target payout ratio. • Opportunity for continued dividend growth with rate base expansion, continued consolidation and efficiency realization. Hydro One’s Role in the Ontario Electric Power System Generation Stations Transformer Stations Transmission Lines Distribution Stations Distribution Lines Delivery to Your Home or Business 23 2 1) Compound Annual Growth Rate (CAGR) RECENT DEVELOPMENTS Organization Priorities First Quarter Highlights • First quarter earnings per share (EPS) was $0.38 and adjusted EPS was $0.38, compared to $0.29 and $0.52, respectively, for the same period in 2019. • Hydro One implemented several safety measures and operational changes to ensure employee and customer safety during the COVID-19 pandemic. • Hydro One took steps to assist customers affected by COVID-19 including: creating a Pandemic Relief Fund, extending its Winter Relief program, suspending late fees for all customers, and returning approximately $5 million in security deposits to eligible business customers. • A significant driver of the year-over-year decrease in adjusted quarterly EPS was the retroactive 2018 rate increase recorded in 2019 following the Ontario Energy Board (OEB) decision on the distribution rate application. • The Company received a regulatory decision regarding its 2020-2022 transmission rate application from the OEB. • The Company received the approval of the OEB to proceed with the Orillia Power Distribution Corporation and Peterborough Distribution Inc. acquisitions. • Demonstrating its financial stability and flexibility, Hydro One Inc. successfully issued $1.1 billion of long-term debt at competitive rates. • Ongoing productivity savings of approximately $45 million represent a 29.9% increase year-over-year compared to the first quarter of 2019. • Improved reliability in the transmission segment with an approximate 31% reduction in System Average Interruption Duration Index (SAIDI) in comparison to the first quarter of 2019. • Hydro One and Ontario Power Generation Inc. launched the Ivy harging Network, a new partnership that will create Ontario’s largest and most connected electric vehicle fast-charger network. • Quarterly dividend declared at $0.2536 per share, payable June 30, 2020. 3 3 3 THE VALUE OF HYDRO ONE ABOUT THE COMPANY HOW WE DID IN 2019 WHY INVEST Transmission & Distribution Transmission Distribution Other Stable Operations ~30,000 circuit KMs of transmission lines Revenue Net of Purchased Power Total Assets Stable and growing cash flows with 1% 99% of overall business fully rate- regulated 7% Largest Local Distribution Company in No generation or material Ontario with approximately 1.4 million exposure to commodity prices customers $3,369M 49% 37% $27.1B 50% 56% Combined 2020 Transmission & Distribution Financial Performance Rate Base of $21.6B2 Market Capitalization of ~$15.11 billion Predictable self-funding organic Regulated EBIT Capital Investments growth profile with ~5% expected 1% rate base CAGR through 2022 Regulated and Privatized Operations 37% 44% Attractive 70% - 80% target $1,493M $1,667M 56% dividend payout ratio 99% of revenue from regulated operations 62% Rate Base Annualized dividend of $1.0144 per share Privatization initiative by Province of Ontario to divest majority stake in Hydro One largely complete with post November 2015 IPO (15%), April 2016 secondary (15%), and May 39% Strong balance sheet with 2017 secondary (20%) offerings $20.7B investment grade credit ratings 61% 1) Based on closing share price on March 31st, 2020 4 2) Company estimates subject to change 4 A LOOK AT THE ORGANIZATION Corporate Structure Public Company TSX: H Hydro One Limited Public Debt Issuer Hydro One Inc. Hydro One Networks Inc. Hydro One Remote Communities Inc. Hydro One Telecom Inc. Rate-Regulated Businesses (99% of revenue) Non-Rate-Regulated Business 5 7 5 EXECUTIVE LEADERSHIP TEAM A leadership team with strong operational experience committed to achieving efficiencies at Hydro One Mark Poweska President and CEO Brad Bowness Darlene Bradley Jason Fitzsimmons Paul Harricks David Lebeter Chris Lopez Saylor Millitz-Lee Chief Information Officer Chief Safety Officer Chief Corporate Affairs Chief Legal Officer Chief Operating Officer Chief Financial Officer Chief Human & Customer Care Officer Resources Officer 6 HYDRO ONE’S NEW STR!TEGY Plan, design and build a Be the safest and most Be a trusted partner Advocate for our customers Innovate and grow the and help them make ities roi PrcigatetrS roi ities grid for the future efficient utility business informed decisions We will plan, design and build a We will transform and improve our We will make concerted efforts to We will make it easier to do business We will continue to invest reliable grid taking into account safety culture through robust safety build and grow relationships with with Hydro One by strengthening responsibly in our core transmission changing technologies to prevent analytics as well as grass-roots Indigenous peoples, government the customer experience through and distribution business. future outages. engagement with our employees. and industry partners. innovative customer centric practices. In addition, we will pursue There will be increased focus on grid Field operations will be more We will proactively address incremental regulated and resilience in order to restore power cusoFf s oareA cusoFf empowered to drive efficiency, community concerns and establish We will help our customers make unregulated business opportunities after events. Climate change and productivity and reliability and strong partnerships with our informed decisions with deeper through innovation and our focused sustainability factors will be taken into provided with efficient corporate customers through local investment insights and leverage our position as presence in Ontario. consideration in our planning support. and economic development for the energy experts. We will expand processes to increase resilience and lower our environmental footprint. benefit of Ontarians. access to energy offerings to There will be a focus on efficient become the provider of choice to We will incorporate distributed energy capital delivery to support an our customers. resources to enable customer choice ongoing growing work program. while delivering exceptional value to customers through best-in-class asset management practices. A people focus that inspires employees and prepares the right workforce for evolving needs s blerEna s A regulatory focus to support our strategic vision A technology focus to enhance workforce efficiency 7 HYDRO ONE’S NEW STR!TEGY An Ontario focus, and a plan to enhance value Strategic Priorities Business Outcomes Plan, design and build a grid for the future Improved safety culture where Hydro One employees go home safely every single day Be the safest and most efficient utility Improved reliability above average performance of Canadian utilities Be a trusted partner Enhance Shareholder Value Advocate for our customers and help High satisfaction for Hydro One customers them make informed decisions Innovate and grow the business Sustainable business practices and lower environmental footprint "The roll out of our corporate strategy will involve sticking to our strengths and continuing to champion for our customers and the electricity sector in Ontario. Our main focus has been and will remain operational excellence as we continue to drive performance. We are a leader in Ontario and continue to build relationships with all partners in our region. We are taking a focused lens on creating a brighter, sustainable future for Ontarians, and are steadfast in improving the safety, reliability, affordability, and environmental impacts of our operations.” -Mark Poweska, President and Chief Executive Officer 8 ACHIEVEMENTS AND EFFICIENCIES Paving New Paths in Productivity Savings ($M) 2019 202.3 Generated productivity savings of $202.3 million in 2019 comprised of $84.6 million in OM&A and $117.7 million in capital and totaling a 2018 135.5 nearly half a billion dollars since 2015 $452.2 2017 89.5 Move to Mobile transformed work processes and implemented 2016 24.9 technology that automated the scheduling & dispatching functions Capital OM&A Strategic sourcing initiatives led to price reduction for materials and High Customer Satisfaction (%) Reduced the Fleet by over 10% services as a result