Slides
Page 1
Investor Overview Post Fourth Quarter 2025
Page 2
A unique low-risk opportunity to participate in the growth of a premium, large scale regulated electric utility Hydro One investment overview • One of the largest electric utilities in North America with significant scale; largest transmitter and distributor across Canada’s most populated province • Unique combination of pure-play electric power transmission and local distribution, with no generation or material exposure to commodity prices • Stable and growing cash flows with 99% of business fully rate-regulated in a constructive, transparent and collaborative regulatory environment • One of the strongest investment grade balance sheets in the North American utility sector. No external equity required to fund planned growth during current period • Predictable self-funded organic growth profile with expanding rate base and strong cash flows, together with broad support for refurbishment of aging infrastructure • Annualized dividend of $1.3324 per share with 6% average annual dividend growth. Opportunity for continued dividend growth with rate base expansion, continued consolidation and efficiency realization Combined 2026 Transmission & Distribution Rate Base of $30.5B1 Predictable self-funding organic growth profile during current rate period (2023 - 2027) with • ~6% expected rate base CAGR2 • 6% to 8% EPS growth • ~6% Average annual dividend growth Strong balance sheet with investment grade credit ratings Hydro One Investor Overview • 2 1) Company estimates subject to change 2) Compounded Annual Growth Rate
Page 3
91% of Ontario’s transmission capacity1 75% Geography of province served by distribution Transmission Distribution Rate regulated businesses Hydro One’s regulated business operates under a 5-year rate regulated Custom Incentive Rate Making Framework. Business energizes life for people and communities in Ontario, Connecting Power and Possibility Hydro One Investor Overview • 3 1) Based on the network component of the revenue requirement approved by the Ontario Energy Board (OEB). The network component of the revenue requirement is Hydro One’s portion of the transmission revenue requirement attributed to assets that are used for the common benefit of all Hydro One and non-Hydro One customers in the province. Hydro One owns and operates approximately 94% of the transmission system in Ontario when based on the total OEB approved revenue requirement. 2) Revenues, net of purchased power is a non-GAAP financial measure. Non-GAAP financial measures do not have a standardized meaning under United States (U.S.) generally accepted accounting principles (GAAP), which is used to prepare the Company's financial statements and accordingly, these measures might not be comparable to similar financial measures presented by other entities. Additional disclosure in respect of this non-GAAP financial measure is incorporated by reference herein and can be found under the section titled “Non- GAAP Financial Measures” in the Company’s annual management’s discussion and analysis for the year ended December 31, 2025 (Annual MD&A) of the Company, available on SEDAR+ under the Company's profile at. www.sedarplus.com. Transmission Distribution Other Transmission stations in service 312 LDC customers 34 Large directly connected industrial customers 88 Transmission lines (circuit km) ~30,000 Distribution and regulating stations ~1,000 residential and business customers across Ontario ~1.5M Distribution lines (circuit km) ~126,000 LDCs consolidated since 1999 90over • Regulated pure-play transmission and distribution business with no generation • 9,600 skilled employees who live and work across Ontario in support of business • ROE of 9.36% with 40% / 60% deemed equity/debt capital structure through 2027 $4,555M 2025 Revenues, Net of Purchased Power2 53%46% 1% 2025 Rate Base 62% 38% $28.0B
Page 4
A leadership team with strong operational experience committed to executing Hydro One’s strategy Executive leadership team Hydro One Investor Overview • 4 David Lebeter President and CEO Executive Leadership Team Harry Taylor EVP, Chief Financial and Regulatory Officer Megan Telford Chief Operating Officer Teri French EVP, Safety, Operations and Customer Experience Renée McKenzie EVP, Digital and Technology Solutions Lisa Pearson EVP, Corporate Affairs Cassidy MacFarlane General Counsel Gillian Whitebread EVP, Human Resources Ryan Docherty EVP, Capital Portfolio Delivery
Page 5
Our corporate strategy Hydro One Investor Overview • 5
Page 6
41.7% / 45% of women who are executives (VP and above) / board 44% of fleet of sedans/SUVs converted to EVs or hybrids 41% Reduction in operations-driven1 GHG emissions compared to 2018 baseline At Hydro One, we are committed to transmitting and distributing electricity in a safe, and an environmentally and socially responsible manner to meet the needs of customers across Ontario Achieved recordable injury rate of 0.68, per 200,000 hours in 2025, well below the industry benchmark of 1.0 ~$3.4 billion in capital investments in 2025 to expand electricity grid and renew and modernize existing infrastructure Sustainability at Hydro One ~$158 million in Indigenous procurement spend in 2024 (ahead of the target of 5.0% by 2026) Hydro One Investor Overview • 6 Target: 30% female executives & board by 2022 Target: 50% by 2025, 100% by 2030 Target: net-zero by 2050, 30% reduction by 2030 1) Operations-driven emissions are those that Hydro One directly controls, including Scope 1 (direct) emissions and Scope 2 – purchased electricity (indirect) emissions.
Page 7
Capital Plan
Page 8
Capital Plan to support rate base growth • Organic growth continues to be driven by ongoing rate base expansion focused on renewing and modernizing the grid. • Significant volumes of end-of-service-life and aged infrastructure must be replaced or upgraded to maintain reliability and resiliency. • Customers remain broadly supportive of investments to replace aging assets. • No equity issuance is anticipated to fund the current capital investment program, which is expected to be fully self-funded. $11.8 billion 2023 – 2027 JRAP Capital Plan Agreement on ~$11.8 billion in capital expenditure reflects a balanced settlement for all stakeholders1 ~6% Rate Base CAGR Rate base forecast to grow from $23.6 billion in 2022 to $32.1 billion in 2027 Hydro One Investor Overview • 8 1) Reflects settlement agreement approved by the OEB on November 29, 2022. 2) Figures include investments in certain development projects of Hydro One Networks not included in the investment plan approved with JRAP. 2026-2027 years contain Chatham by Lakeshore Transmission Line, Broadband and Waasigan Transmission Line. Historical and Projected Rate Base Growth 2 ($M) Distribution Transmission 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 19,709 20,710 21,689 22,599 23,605 24,985 26,519 28,044 30,536 32,133~5%
Page 9
Ontario Energy Board (OEB) is a consistent, independent regulator with a transparent rate-setting process Constructive rate regulator • Transmission and Distribution businesses rate-regulated by the OEB • Deemed debt / equity ratio of 60% / 40% for both transmission and distribution segments • Reduced regulatory lag through forward-looking test years, revenue decoupling and adjustment mechanisms • JRAP proposal for transmission and distribution under the OEB’s Custom Incentive Rate Making Framework for 2023 – 2027 (5-year term) was successfully settled and approved by the OEB on November 29, 2022 Custom IR 2026 9.36% 2026 $17.1B 2023–27 Rate methodology Allowed ROE1 Expected JRAP rate base2,4 Effective term of application Custom IR 2026 9.36% 2026 $11.2B 2023–27 Rate methodology Allowed ROE1 Expected JRAP rate base3,4 Effective term of application Comments Comments Transmission Custom incentives rates. Application approved November 29, 2022 Distribution Custom incentives rates. Application approved November 29, 2022 1) Allowed ROE for 2023-2027 for JRAP Transmission and Distribution reflects the cost of capital update from the OEB on October 20, 2022. 2) JRAP Transmission rate base excludes 100% of B2M Limited Partnership (LP), Niagara Reinforcement LP, Hydro One Sault Ste. Mar ie LP and new transmission lines. 3) JRAP Distribution rate base excludes LDC acquisitions (Peterborough Distribution Inc., Orillia Power Distribution Corporation, Chapleau Public Utilities Corporation) and Hydro One Remote Communities. 4) Reflects OEB Approved Settlement on November 29, 2022. Hydro One Investor Overview • 9
Page 10
Achievements and efficiencies Generated productivity savings of $254.3 million in 2025 comprised of $68.9 million in OM&A and $185.4 million in capital Paving New Paths in Productivity Savings ($M) $1,456 Efficient processing of work orders within field operations, faster customer re- connections following minor storms, and efficient planning, construction and vegetation clearing Strategic sourcing initiatives led to cost reductions for materials and services by leveraging index and market information along with vendor diversification Managing our Facilities and Real Estate contracts led to incremental revenues and reduced leased costs IPO to 2022 (Pre- JRAP) Hydro One Investor Overview • 10 2019 286.0 2022 2021 2020 2016 2017 2018 373.6 343.9 202.3 135.5 89.5 24.9 Capital OM&A 2023 113.9 2025 149.52024 254.3
Page 11
Growth Update
Page 12
Why Ontario Canada’s electricity demand expected to grow between 120% - 135% from 2021 to 2050 to achieve Net Zero target • Consumer choices, corporate ESG targets and government policies are driving the electrification of transportation, home heating and heavy industry • Technological advancements and focus on decarbonization expected to drive additional connection to new sources/uses of power There has been an acceleration and resurgence in industrial activities in Ontario – affects peak demand (Tx) • 84% of the electricity generated in Ontario in 2024 came from non-emitting sources2, attracting investment • EV battery manufacturing in Windsor, Ontario • Mining activities in northern Ontario • Agricultural development in southern Ontario Ontario continues to take in a large number of new immigrants to Canada – affects the number of connections (Dx) • Immigration targets ~0.4 million for 2026 to 2028 • 58% of new immigrants are selected on economic basis, supporting a knowledge-based economy Ontario contributes to 39% of Canada’s economy in 2024 Average Population and GDP Growth Rates for G7 Countries Canada is among the fastest growing nations within G7 Highest population growth in G71 Among the highest GDP growth in G7 Source: Canada Energy Regulator, World Bank, Government of Canada, Government of Ontario, Statista 1) Based World Bank average 2020-2024 2) Independent Electricity System Operator (IESO). Ontario growth in electricity demand Increased capital investment to enable energy transition and enhance grid stability Hydro One Investor Overview • 12 Note: World Bank data 20120-2024 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Canada Germany France Italy Japan United Kingdom United States % Population GDP
Page 13
Project Name Location Type Length (KM) Estimated Cost ($M) In-service Date St. Clair Transmission Line1 Southwestern Ontario 230 kV 64 472 2027 Waasigan Transmission Line1 Northwestern Ontario 230 kV 360 1,200 2027 Welland Thorold Power Line Southern Ontario 230 kV 18.5 311 2029 Wawa Timmins Power Line4 Northeastern Ontario 500 kV2 260 TBD 20303 Wellington to Preston Transmission Line Southwestern Ontario 230 kV TBD TBD 2031 Greenstone Transmission Line Northwestern Ontario 230 kV TBD TBD 2032 Sudbury to Barrie Transmission Line Central Ontario 500 kV 290 TBD 2032 Bowmanville to Parkway4 Southern Ontario 500 kV TBD TBD Early 2030s Longwood to Lakeshore Transmission Line Southwestern Ontario 500 kV TBD TBD TBD Second Longwood to Lakeshore Transmission Line Southwestern Ontario 500 kV TBD TBD TBD Windsor to Lakeshore Transmission Line Southwestern Ontario 230 kV TBD TBD TBD North Shore Link4 Northeastern Ontario 230 kV ~75 TBD TBD Northeast Power Line4 Northeastern Ontario 500 kV ~200 TBD TBD Durham Kawartha Power Line4 Eastern Ontario 230 kV ~50 TBD TBD Significant portfolio of transmission lines driving rate base growth Hydro One Investor Overview • 13 1) Data as per regulatory filings. 2) 500 kV line, initially energized at 230 kV. 3) The Wawa Timmins Power Line is expected to be in-serviced by the end of 2030 as recommended by the IESO. 4) Wawa Timmins Power Line (formerly Wawa to Porcupine Transmission Line); North Shore Line (formerly Mississagi to Third Line); Northeast Power Line (formerly Hanmer to Mississagi Line); Durham Kawartha Power Line (formerly Greater Toronto Area Least Line), Bowmanville to Parkway (formerly known as Bowmanville to GTA Line).
Page 14
Electric Local Distribution Company (LDC) consolidation • 52 LDCs1 in Ontario • Total rate base of approximately $15B1, of which the largest 5 LDCs account for approximately $11B1 • Hydro One is focused on engaging communities, municipalities and LDCs as partners in a number of ways • Hydro One will likely realize greater synergies than other potential acquirers especially if a target is contiguous to Hydro One’s existing service territory • Hydro One has acquired more than 90 LDCs in Ontario since the year 1999 • Recent acquisitions include Chapleau (2024), Peterborough and Orillia (2020), Woodstock and Haldimand (2015) and Norfolk (2014) Historical Acquisitions • Hydro One can offer Ontario’s fragmented distribution sector significant synergies • Peterborough, Orillia, Woodstock, Haldimand and Norfolk are anticipated or have realized OM&A savings of over 50% Synergy Potential Consolidation Strategy Addressable Market • Hydro One is the largest LDC in Ontario; 54 LDCs are Hydro One transmission or distribution customers • Hydro One has significant scale in Ontario and serves customers through a distribution system spanning 126,000 circuit kilometers Consolidator of Choice Chapleau Hydro Completed transaction Transaction closed on August 1, 2024 1) Excluding Hydro One Networks Inc. Orillia Power Distribution Corporation Transaction closed on September 1, 2020 Peterborough Distribution Inc. Transaction closed on August 1, 2020 Hydro One Investor Overview • 14
Page 15
Financial Update
Page 16
Guidance range $1.75 $1.67 $1.61 $0.06 $0.05 $0.03 2022 EPS 2022 Gain on Sale of Surplus Property 2022 CDM Revenues 2022 Normalized for one-time items Normalizing for 2023 Rebase 2022 Normalized EPS 2027 $2.37 $2.15 1 1) Normalizing for 2023 rebase includes 100 basis points over -earn. 2) EPS growth includes Broadband and East West Tie Transmission Line but does not include, Local Distribution Company Acquisitions, and contributions from 13 out of the 14 transmission lines under development. Growth includes contributions from the Chatham to Lakeshore and Waasigan transmission lines. Note: The forward-looking information in this presentation is based on a variety of factors and assumptions described in the Annual MD&A. Actual results may differ from those predicted by such forward- looking information. See “Disclaimers – Forward Looking Information.” Hydro One Investor Overview • 16
Page 17
0.84 0.87 0.91 0.9545 1.0023 1.0525 1.1051 1.1688 1.239 1.31350.13 2016⁵ 2017 2018 2019 2020 2021 2022 2023 2024 2025 A Growing and Sustainable Dividend4 Common share dividends Providing Shareholder Value • Quarterly dividend declared at $0.3331 per common share ($1.3324 annualized) • Average annual dividend growth rate of ~6% • Attractive and growing dividend supported by stable, regulated cash flows and planned rate base growth • Non-dilutive dividend reinvestment plan (DRIP) in place (shares purchased on open market, not issued from treasury) Expected Quarterly Dividend Dates3 Dividend Statistics Yield1 2.4% Annualized Dividend2,3 $1.3324 / share Declaration date Record date Payment date February 12, 2026 March 11, 2026 March 31, 2026 May 12, 2026 June 10, 2026 June 30, 2026 August 6, 2026 September 9, 2026 September 29, 2026 November 9, 2026 December 9, 2026 December 31, 2026 1) Yield is calculated based on annualized dividend divided by closing share price of the common shares of Hydro One Limited on December 31, 2025. 2) Unless indicated otherwise, all common share dividends are designated as "eligible" dividends for the purpose of the Income T ax Act (Canada). 3) All dividend declarations and related dates are subject to Board approval. 4) Denotes annual cash dividends paid. 5) The first common share dividend declared by Hydro One Limited following the November 5, 2015 initial public offering of its c ommon stock included 13 cents for the post IPO fourth quarter period of November 5 through December 31, 2015. Hydro One Investor Overview • 17
Page 18
Strong balance sheet and liquidity Hydro One Investor Overview • 18 Investment grade balance sheet with one of lowest debt costs in utility sector 1) The Operating Credit Facilities include a pricing adjustment which can increase or decrease Hydro One’s cost of funding based on its performance on certain Sustainability Performance Measures, which are related to Hydro One's sustainability goals. 2) In August 2024, HOL filed a universal short form base shelf prospectus (Universal Base Shelf Prospectus) with securities regulat ory authorities in Canada, which allows it to offer, from time to time in one or more public offerings of debt, equity or other securities, or any combination thereof, and expires in September 2026. As at December 31, 2025, no securities have been issued under the Universal Base Shelf Prospectus. 3) In February 2024, HOI filed a short form base shelf prospectus in connection with its Medium-Term Note (MTN) Program, which expires in March 2026. A new MTN Program prospectus is expected to be filed in the first quarter of 2026. 4) In November 2024, Hydro One Holdings Limited (HOHL) filed a short form base shelf prospectus (HOHL U.S. Debt Shelf Prospectus ) with securities regulatory authorities in the province of Ontario and a registration statement and the U.S., which allows it t o offer, from time to time in one or more public offerings, U.S. debt securities, unconditionally guaranteed by HOL and expires in December 2026. As at December 31, 2025, no securities have been issued under the HOHL U.S. Debt Shelf Prospectus 5) In August 2025, HOI filed a short form base shelf prospectus (HOI U.S. Debt Shelf Prospectus) with securities regulatory authorities in the province of Ontario and a registration statement and the U.S., which allows it to offer, from time to time in one or more public offerings, U.S. debt securities and expires in September 2027. As at December 31, 2025, no securities have been issued under the HOI U.S. Debt Shelf Prospectus. 6) Sustainability and Green bonds (MTN) issued pursuant to Hydro One's Sustainable Financing Framework. 7) Net debt to capitalization is a non-GAAP ratio. See the section titled “Non-GAAP Financial Measures” in the Annual MD&A (available on SEDAR+ under the Company’s profile at www.sedarplus.com) which is incorporated by reference, for a discussion of this non- GAAP ratio and its component elements. 8) Annualized FFO to Net debt is a non-GAAP ratio. See the section titled “Non-GAAP Financial Measures” in the Annual MD&A (available on SEDAR+ under the Company’s profile at www.sedarplus.com ) which is incorporated by reference, for a discussion of this non- GAAP ration and its component elements. Significant available liquidity ($M) Strong investment grade debt ratings (long-term/short-term/outlook) Hydro One Limited (HOL) Hydro One Inc. (HOI) A- / n/a / stable A / A-1 (mid) / stable A / n/a / stable A (high) / R-1 (low) / stable n/a A3 / Prime-2 / stable S&P DBRS Moody’s Shelf registrations HOL Universal shelf2 HOI Medium-Term Note shelf3 Undrawn credit facilities1 Short-term notes payable HOI U.S. Debt shelf5 HOHL U.S. Debt shelf4 3,050 250 100 Weighted-average coupon rate of long-term debt: Weighted-average term of long-term debt (years): Net Debt to Capitalization7: Annualized FFO to Net Debt8: 4.2% 13.7 59.5% 14.2% Debt maturity schedule ($M) 0 200 400 600 800 1000 1200 1400 1600 1800 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 Hydro One Limited Hydro One Inc. Hydro One Inc. Sustainability6 Hydro One Inc. Green6
Page 19
$7.8 billion Proceeds raised under program Green Grid Transmission and Distribution Investments Enable the Greening of the Overall Grid Socio-Economic Benefits Procurement from Indigenous Businesses and access to essential services Hydro One’s Sustainable Financing Framework Overview Hydro One Investor Overview • 19 Under the Framework, Hydro One may issue Sustainability, Green or Social bonds, loans or commercial paper Program aligned with UN Sustainable Development Goals Program developed to support Hydro One’s ESG commitments • Clean Energy Transmission and distribution infrastructure that delivers low-carbon electricity • Energy Efficiency Smart grid technology, energy storage, monitoring equipment • Clean Transportation EVs, hybrids, electric charging stations • Biodiversity Conservation Natural habitat protection initiatives • Climate Change Adaptation Investments to enhance resiliency of electrical grid from extreme weather-related events • Socio-economic Advancement of Indigenous Peoples Procurement from Indigenous Businesses • Access to Essential Services Enabling high-speed broadband internet access to unserved and underserved
Page 20
Equity market cap overview 69% 31% Institutional Retail / Unidentified Approximate Ownership of Public Float 1 Equity Index Inclusions Comments • ~599.8 million common shares outstanding, listed on Toronto Stock Exchange (TSX: H) • Equity market capitalization 2 of ~$32.8 billion and public float of ~$17.3 billion • Equity market capitalization amongst the top 50 of all TSX-listed Canadian companies Approximate Geographic Dispersion of Public Float 1 42% 21% 37% Canada US Rest of World S&P/TSX Composite Index FTSE All-World (Canada) S&P/TSX Composite Low Volatility Index MSCI World (Canada) Dow Jones Canada Select Utilities S&P/TSX Utilities Index S&P/TSX Composite Dividend Index S&P/TSX Composite High Dividend Index S&P/TSX 60 Index S&P/TSX Canadian Dividend Aristocrats Index 1) Provincial Government ownership as at December 31, 2025 was 47.1%. Data source: S&P Global. 2) Based on closing share price of the common shares of Hydro One Limited on December 31, 2025. Hydro One Investor Overview • 20
Page 21
Appendix
Page 22
Financial summary Fourth Quarter Full Year (millions of dollars, except EPS) 2025 2024 % Change 2025 2024 % Change Revenues Transmission 491 505 (2.8%) 2,429 2,269 7.1% Distribution 1,757 1,583 11.0% 6,557 6,175 6.2% Distribution Revenues (net of purchased power)1 470 523 (10.1%) 2,071 2,032 1.9% Other 20 7 185.7% 55 40 37.5% Consolidated 2,268 2,095 8.3% 9,041 8,484 6.6% Consolidated Revenue (net of purchased power)1 981 1,035 (5.2%) 4,555 4,341 4.9% OM&A Costs 258 373 (30.8%) 1,206 1,308 (7.8%) Earnings before financing charges, equity income and income taxes (EBIT) Transmission 260 227 14.5% 1,412 1,240 13.9% Distribution 185 186 (0.5%) 881 809 8.9% Other (9) (37) 75.7% (55) (82) 32.9% Consolidated 436 376 16.0% 2,238 1,967 13.8% Net income 2 233 200 16.5% 1,339 1,156 15.8% Basic EPS $0.39 $0.33 18.2% $2.23 $1.93 15.5% Capital investments 939 799 17.5% 3,366 3,063 9.9% Assets placed in-service Transmission 953 754 26.4% 1,543 1,431 7.8% Distribution 351 342 2.6% 1,338 1,017 31.6% Other 6 4 50.0% 20 15 33.3% Total assets placed in-service 1,310 1,100 19.1% 2,901 2,463 17.8% Financial Statements reported under U.S. GAAP 1) Revenues, Net of Purchased Power is a non-GAAP financial measure. Non-GAAP financial measures do not have a standardized meaning under U.S. GAAP, which is used to prepare the Company's financial statements and accordingly, these measures might not be comparable to similar financial measures presented by other entities. Additional disclosure for this non-GAAP financial measure is incorporated by reference herein and can be found under the section titled “Non-GAAP Financial Measures” in the Annual MD&A available on SEDAR+ under the Company's profile at www.sedarplus.com. 2) Net Income is attributable to common shareholders and is after non-controlling interest. Hydro One Investor Overview • 22
Page 23
Hydro One Limited Acronym Solutions Inc. Hydro One Inc. Hydro One Networks Inc. Hydro One Remote Communities Inc. A look at the organization Corporate structure Public company Public debt issuer Non-rate-regulated business Rate-regulated business (99% of revenue) Hydro One Investor Overview • 23
Page 24
Distribution OEB Approved1 2023-2027 Transmission OEB Approved1 2023-2027 Rebasing Year 2023 2023 Revenue Requirement Determined By Custom Revenue Cap Index (RCI) by Component (%) (A) Inflation Adjustment Factor (B) Less: Productivity Stretch Factor Offset (C) Add: Capital Factor2 (D) Equals: Custom Revenue Cap Index Total Custom Revenue Cap Index (RCI) by Component (%) (A) Inflation Adjustment Factor (B) Less: Productivity Stretch Factor Offset (C) Add: Capital Factor 2 (D) Equals: Custom Revenue Cap Index Total 2023 20243 20254 20268 2027 2023 20245 20256 20267 2027 (A) 2023 revenue requirement of $1,727 million 4.80% 3.60% 3.70% 3.70% (A) 2023 revenue requirement of $1,952 million 5.40% 3.70% 3.50% 3.80% (B) (0.45%) (0.45%) (0.45%) (0.45%) (B) (0.15%) (0.15%) (0.15%) (0.15%) (C) 1.01% 0.85% 1.96% 1.12% (C) 1.27% 1.01% 1.61% 0.08% (D) 5.36% 4.00% 5.21% 4.37% (D) 6.52% 4.56% 4.96% 3.73% Earnings Sharing Method 50% of earnings that exceed allowed ROE by more than 100 basis points in any year of the term of the filing is shared with customers OEB ROE (Cost of Capital) 9.36% through test years (2023-2027) 9.36% through test years (2023-2027) Effective Rate Setting January 1, 2023 January 1, 2023 JRAP – Segmented incentive regulatory construct 1) Source: 2023-2027 Distribution and Transmission Revenue Requirement, Custom Revenue Cap Index Parameters and ROE as approved by the OEB on November 29, 2022. 2) The capital factor will be adjusted each year depending on changes to inflation to ensure that Hydro One recovers the OEB -approved capital related revenue requirement adjusted for productivity. 3) 2024 Distribution revenue requirements and the associated RCI components as approved by the OEB on December 14, 2023. 4) 2025 Distribution revenue requirements and the associated RCI components as approved by the OEB on December 11, 2024. 5) 2024 Transmission revenue requirements and the associated RCI components as approved by the OEB on September 19, 2023. 6) 2025 Transmission revenue requirements and the associated RCI components as approved by the OEB on October 24, 2024. 7) 2026 Transmission revenue requirements and the associated RCI components as approved by the OEB on October 7, 2025. 8) 2026 Distribution revenue requirements and the associated RCI components as approved by the OEB on December 17, 2025. Hydro One Investor Overview • 24
Page 25
Independent board of directors Board of Director full bios are available at: https://www.hydroone.com/about/corporate-information/senior-leadership-and-board. Note: The only non-independent director is David Lebeter, President and CEO of Hydro One Limited. Hydro One Investor Overview • 25 Melissa Sonberg Chair of the Board of Directors Director since 2018 David Hay Director since 2018 Stacey Mowbray Chair of the Human Resources Committee Director since 2020 Mitch Panciuk Director since 2023 Mark Podlasly Director since 2022 Helga Reidel Chair of Audit Committee Director since 2023 Susan Wolburgh Jenah Chair of Governance & Regulatory Committee Director since 2020 Brian Vaasjo Chair of Indigenous Peoples, Safety & Operations Committee Director since 2023 Michael W. Rencheck Director since 2025
Page 26
Regulatory stakeholders Who: Provincial Government, Ministry of Energy What: Policy, legislation, regulations Who: Independent Electricity System Operator What: Wholesale power market rules, intermediary, North American reliability standards Who: Ontario Energy Board What: Independent electric utility price and service quality regulation Who: Canadian Energy Regulator What: Federal regulator, international power lines and substations Who: North American Electric Reliability Corporation What: Continent-wide bulk power reliability standards, certification, monitoring Who: Northeast Power Coordinating Council What: Northeastern North American grid reliability, standards, compliance Hydro One Investor Overview • 26
Page 27
Disclaimers Forward Looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of applicable U.S. securities laws (collectively, “forward-looking information”). Statements containing forward-looking information are made pursuant to the “safe harbour” provisions of applicable Canadian and U.S. securities laws and is based on current expectations, estimates, forecasts and projections about Hydro One Limited’s (Hydro One or the Company) business and the industry in which Hydro One operates and includes beliefs of and assumptions made by management of Hydro One. Such information includes, but is not limited to: statements related to Hydro One’s transmission and distribution regulatory applications, and expected impacts and timing, including allowed ROE; Hydro One’s projected rate base, cash flows and EPS; statements regarding Hydro One’s organic growth profile and expected rate base CAGR; expectations regarding the Company’s deemed equity/debt structure through 2027; expectations regarding future equity and debt issuances, including under the Sustainable Financing Framework; expectations to invest in the modernization of infrastructure and commitment to transmit and distribute electricity in a safe, and environmentally and socially responsible manner to meet the needs of customers across Ontario; statements regarding Hydro One’s projected capital investments, and related plans, funding and expectations; statements related to Hydro One’s ongoing and planned projects, including estimated cost and anticipated in-service dates of capital projects; statements regarding Hydro One’s consolidation strategy, including expectations regarding potential synergies to the Company; statements relating to Hydro One’s strategy, statements about Hydro One’s ongoing and planned sustainability priorities and commitments, including target dates, as they relate to diversity, equity and inclusion, climate change mitigation and adaption, Indigenous and community partnerships and other initiatives and related plans; Hydro One's commitment to achieving 30% female executives and female board members; Hydro One's commitment to achieving a target of 30% reduction of GHG emissions by 2030 and net-zero GHG emissions by 2050 including the Company’s review of its 2030 30% GHG reduction target; Hydro One's commitment to increasing Indigenous procurement spend to 5% of total procurement spend by 2026 including the Company’s review of such target; plans to convert 50% of Hydro One's fleet of sedans and SUVs to electric or hybrid EVs by 2025 and 100% by 2030; expectations regarding Hydro One’s maturing debt and standby credit facilities; expectations to file of a new MTN Program prospectus in the first quarter of 2026; statements related to dividends and expected dividend growth; statements and guidance relating to EPS growth over 2023 to 2027, relative to a normalized 2022 earnings; and statements related to credit ratings. Words such as “aim”, “could”, “would”, “expect”, “anticipate”, “intend”, “attempt”, “may”, “plan”, “will”, “believe”, “seek”, “estimate”, “goal”, “target” and variations of such words and similar expression are intended to identify such forward-looking information. These statements are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict. In particular, the forward-looking information contained in this presentation is based on a variety of factors and assumptions including, but not limited to: no unforeseen changes in the legislative and operating framework for Ontario’s electricity market or for Hydro One specifically; favourable decisions from the OEB and other regulatory bodies concerning outstanding and future rate and other applications; no unexpected delays in obtaining required approvals; no unforeseen changes in rate orders or rate setting methodologies for Hydro One’s distribution and transmission businesses; no unfavourable changes in environmental regulation; the continued use and availability of US GAAP; a stable regulatory environment; no significant changes to Hydro One’s current credit ratings; no unforeseen impacts of new accounting pronouncements; no changes to expectations regarding electricity consumption; no unforeseen changes to economic and market conditions; completion of operating and capital projects that have been deferred; Ontario’s electricity demand will increase moderately compared to 2021 demand and immigration into Ontario will continue to increase; energy generation and supply composition will be favourable and support the achievement of GHG emission reduction targets; new GHG mitigation technologies will become more available and more affordable; Hydro One’s growth and activities will be consistent with the information included in its first joint rate application; the number of Hydro One vehicles and facilities will not change significantly; and no significant event occurring outside the ordinary course of business. These assumptions are based on information currently available to Hydro One including information obtained by Hydro One from third-party sources. Actual results may differ materially from those predicted by such forward-looking information. While Hydro One does not know what impact any of these differences may have, Hydro One’s business and results of operations, financial condition and credit stability may be materially adversely affected if any such differences occur. Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information are discussed in more detail in the sections entitled “Forward Looking Information” and “Risk Factors” in Hydro One Limited’s most recent annual information form and the sections entitled “Risk Management and Risk Factors” and “Forward-Looking Statements and Information” in the Annual MD&A. Hydro One does not intend, and it disclaims any obligation to update any forward-looking information, except as required by law. In this presentation, Hydro One presents information about future rate base growth and potential future capital investments and guidance in respect of 2027 basic earnings per share. The purpose of providing information about future rate base growth, potential future capital investments and financial guidance is to give context to the nature of some of Hydro One’s future plans and may not be appropriate for other purposes. Information about future rate base growth, potential future capital investments and financial guidance, including the various assumptions underlying it, should be read in conjunction with “Forward Looking Information” above and as may be found in Hydro One's filings with the securities regulatory authorities in Canada, which are available under its profile on SEDAR+ at www.sedarplus.com. Hydro One does not intend to update the information about future rate base growth or future capital investments or guidance about 2027 EPS except as required by applicable securities laws. All dollar amounts in this presentation are in Canadian dollars, unless otherwise indicated. Unless otherwise expressly stated herein, all information in this presentation is presented as at December 31, 2025. Hydro One Investor Overview • 27
Page 28
Contact Wassem Khalil Director, Investor Relations Wassem.Khalil@HydroOne.com (416) 345-5943 HydroOne.com/InvestorRelations HydroOne.com