Hawaiian Electric Industries : Q1 2025 Hawaiian Electric Industries, Inc. Earnings Conference Call Webcast Slides

Published: 2025-05-09 17:34:06 ET HE

Published on 05/09/2025 at 17:34

1Q 2025 Financial Results

May 9, 2025

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 comparable GAAP financial measures can be found in the Appendix herein.

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See Appendix for definition of Core Earnings and Core EPS.

Repositioning for the Future

Advancing Our Strategy and Laying the Foundation for Sustainable Growth

Simpler, more focused business

Financial flexibility from 2024 actions

Robust capex cycle ahead

Strong and improving safety profile

Rebasing of target revenues

Continued commitment to decarbonization

Resolution of wildfire tort litigation

Signed settlement agreements and resolution of subrogation issue pave path toward executing settlement and resolving tort litigation

Moving forward as a simpler business, more focused on regulated utility operations, following sale of 90.1% of ASB and ongoing divestiture of Pacific Current

Strengthened financial health and flexibility through cost control, asset-based lending facility,

ASB sale, ATM program and successful equity raise

Significant investments planned in utility's generation and grid, ultimately enhancing the safety, reliability and resilience of the system

Utility's rapid implementation of enhanced wildfire safety measures has significantly reduced wildfire risk

Rebasing of rates could support critical infrastructure investments for resilience, reliability and safety, while balancing the needs of customers, communities and investors

Advancing clean energy and path to 100% RPS and net zero by 2045

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Strong and Improving Investment Thesis, With Proven Execution on Priorities Communicated Following 2023 Wildfires

Recent Legislative Actions

Successful 2025 Legislative Session Outcome Provides Increased Clarity to Path Ahead

Appropriates funds to address the

- Critical step in ensuring the settlement can move forward, and that the State's $807 million obligation is fully funded

State of Hawaii's settlement of claims related to the Maui wildfire tort litigation settlement

Directs the PUC to establish an aggregate liability cap on economic damages from future wildfires

Cap and methodology to be

determined by the PUC

Impacts on credit ratings, borrowing costs, rates, costs to customers and other factors will be considered

Authorizes securitization to finance wildfire safety improvements, supporting customer affordability of critical investments

Supports contracted renewable projects by allowing the state to provide a financial backstop for renewables developers

"Step-in" agreements ensure project owners receive payment, improving project economics and supporting customer affordability

Supports developers' access to reasonably-priced capital, protecting ability to reach State's clean energy targets

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Continued Momentum Toward Resolution of Wildfire Tort Litigation

SUMMARY

Definitive settlement agreements signed in November of 2024, consistent with key terms announced in August of 2024

Favorable Hawaii Supreme Court decision received in February, paving path to final resolution of insurance company claims and finalization of settlement agreements

Decision clarifies that insurers cannot recover against defendants if their policyholders settle with defendants

NEXT STEPS

Second Circuit Court will review definitive settlement agreements for final judicial approval

Hawaii State Legislature passed legislation appropriating the State's contribution to the settlement. Legislation is awaiting Governor Josh Green's signature

Company's first payment under the settlement is expected in early 2026

2024 2025 - 2026

Accomplished

Accomplished

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Expected

2nd Circuit Court approval of final settlement agreement

Company's first payment expected in

early 2026

Disclaimer

HEI - Hawaiian Electric Industries Inc. published this content on May 09, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 09, 2025 at 21:33 UTC.