Hawaiian Electric Industries : Q4 2024 Hawaiian Electric Industries, Inc. Earnings Conference Call Webcast Slides

Published: 2025-02-21 17:59:11 ET HE

HEI

4Q and Full Year 2024 Financial Results

February 21, 2025

Non-GAAP Financial Information

This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix herein.

Other

See Appendix for definition of Core Earnings and Core EPS.

2

Strong Execution Through a Pivotal Year

Executed on strategic objectives communicated following the Maui wildfires

Signed settlement agreements in the Maui wildfire tort litigation, significantly enhancing clarity to HEI's path ahead; Favorable Hawaii Supreme Court decision creates clearer line of sight toward executing settlement

Numerous actions taken to bolster cash position, with year-end liquidity the strongest in the

company's history

Completed strategic review process announced for American Savings Bank; Proceeds to be used to pay down holding company debt, increasing financial flexibility

Enhanced wildfire safety measures implemented on an expedited basis, reducing risk of ignition from utility equipment

Supporting legislation to (i) create a rapid, low-cost process to provide compensation to victims of future wildfires (SB1201 / HB982); and (ii) support the utility's efforts to procure clean energy (SB1501 / HB974)

3

Rapid Advancement of Wildfire Risk Reduction Efforts

Grid Hardening and Redesign

Situational Awareness

Operational Practices

Stakeholder and Community Partnerships

Substantial

Reduction in Risk

of Ignition from

Utility Equipment

4

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 ACCOMPLISHED1:

WHAT WE EXPECT TO INVEST:

Nearly $400 million in capital invested

2025 - 2027, with approximately $120

million invested in 2025

HOW WE EXPECT TO INVEST:

2025E - 2027E Capital Expenditures by Category

Strengthen

partnerships

Grid

Operational

1%

modernization

practices

13%

8%

Situational

awareness

2%

Harden the

Grid 76%

1. Further detail on each of the five elements of the enhanced Wildfire Safety Strategy can be found in the appendix.

5

Continued Momentum Toward Resolution of Wildfire Tort Litigation

SUMMARY

NEXT STEPS

8/19

10/21

2/6

Expected

9/11

12/16

2nd Circuit Court issues Order that

2nd Circuit grants Motion

Subrogation claimants'

Reply Briefs

Oral arguments

2nd Circuit approval of final

subrogation claimants' exclusive

presenting "reserved

cases officially transferred

submitted in HSC

held in HSC

settlement agreement

remedy for claims is asserting liens

questions" to Hawaii

from 1st Circuit to 2nd Circuit

proceeding

proceeding

First payment in late 2025 /

against policyholders' settlements

Supreme Court ("HSC"}

2024

2025+

early 2026

Aug

Sept

Oct

Nov

Dec

Jan

Feb

8/2 Defendants agree to terms of proposed settlement with individual and class plaintiffs

8/29

Defendants move to transfer subrogation claimants' cases from 1st Circuit to

2nd Circuit (where all other Maui wildfire tort cases are being handled)

9/25

HSC accepts

"reserved questions"

and sets timeline

11/4

Opening Briefs submitted in HSC proceeding. Final settlement agreements signed

2/10

Favorable HSC decision rendered, affirming that subrogation claimants' exclusive remedy for claims is asserting liens against policyholders' settlements

6

Strategic review process for ASB Completed

ASB's 2024 results presented as discontinued operations

Core income from discontinued operations1

FY 2024

Loss from discontinued operations (GAAP)

-$103.5M

$79.4

$72.6

less: Net loss from sale of 90.1% of ASB

-$115.8M

less: Goodwill impairment recorded in

-$66.1M

2Q'24

less: Wildfire expenses

-$0.9M

Core1

$79.4M

2023

2024

Note: Columns may not foot due to rounding.

1. See appendix for reconciliation of "Core" metrics to the equivalent GAAP metric.

7

FY2024 Financial Performance-Continuing Operations

FY 2024

EARNINGS

EPS

Income from continuing operations (GAAP)

-$1,322.5M

-$10.42

less: wildfire-related expenses

-$1,420.7M

-$11.19

less: asset Impairment

-$26.1M

-$0.21

Core1

$124.3M

$0.98

Core income from continuing operations1

Core EPS - continuing operations1

$151.7

$124.3

$1.38

$0.98

$195.1

$180.7

$1.77

$1.42

($43.4)

($56.4)

($0.39)

($0.44)

2023

2024

2023

2024

Utility

Holding Co. & Other

Note: Columns may not foot due to rounding.

1. See appendix for reconciliation of "Core" metrics to the equivalent GAAP metric.

8

Maintaining Solid Liquidity as Financing Plan Progresses

LIQUIDITY UPDATE

1. Borrowing under accounts receivable backed credit facility subject to debt covenant limitations and borrowing base availability.

9

Q&A

Disclaimer

HEI - Hawaiian Electric Industries Inc. published this content on February 21, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 21, 2025 at 22:59:11.766.