Manitoba HydroCorporate Update

Presentation to Moody’s Investors ServiceMay 16, 2012

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AgendaD Financial Results

D Capital Overview

C Power Sale Agreements

C Liquidity & Projected Financing

C Financial Targets

C Rates

C Energy Jobs Fund

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Financial Results

ManitobaHydro

Financial ResultsIncome Statement for the Fiscal Years Ended March 31st ($ are in millions)

Revenues(net of cost of gas)

Expenses

Net Income

Actual2011

Projected2012

Forecast2013

Rate Increases:ElectricityGas (Distribution)

Financial Ratios:Debt! EquityInterest Co~erage

2.9%*0.8%

73:271.27

2.0%0.0%

74:261.10

3.5%2.0%

76:241.05

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* Rolled-back to 1.9%.

4

$1,758 $1,706 $1,858

1,608 1,641 1,827

$150 $65 $31

Capital Overview

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Major Generation and Transmission Projects

El 200 MW Wuskwatim G.S. (20 12/13) $1.4 billion

o Bipole III (20 17/18) $3.3 billion

o 695 MW Keeyask G.S. (2019/20) $5.6 billion

o 1,485 MW Conawapa G.S. (2024/25) $7.8 billion

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Capital Expenditures (CEF11-2)

$2,500

$2,000

$1,500 Conawapa

0,C0

$1,000 Bipole Ill

kwatimPointdu Bois

$500 Other Major

$0

Fiscal Year Ending

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Power Sale Agreements

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Power Sale Agreements

D 375 MW! 500 MW Sale to Northern StatesPower

Starting in 2015 (10 years

D 250 MW Sale to Minnesota PowerStarting in 2020 (15 years)

ci soo MW Sale to Wisconsin Public ServiceStarting in 2018 (15 years)

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Liquidity & Projected Financing

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Cash Flow from Operations (IFF11-2)

Current Outlook eBase Capital

600

nU,C0

400S

2012 2013 2014 2015 2016 2017 2018 2019 2020

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Projected New Debt FinancingRequirements (IFF11-2)

2200

2000

1800

1600

1400

U)

5 1200

1000

800

600

400

200

02012 2015 2016 2018 2019 2020 2021 2022

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Financial Targets

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Equity Ratio

IFF1 1 -2 Target

35%

30%

25:70rr ii20/0

II10:1111 iiIi

‘-‘en, ‘Sb’ $~ %MI,c~ •~ It• • • • ••• • •v#•V######~v~ $‘~

Fiscal Year Ending

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Interest Coverage Ratio

IFF11-2 Target

1.80

1.60

1.40

1.20 ~1111111.00 1111110.80 1111110.60 1111110.40 1111110.20 1111110.00

n_tn rfrfflflflflWqf•Fiscal Year Ending

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Rates

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Average Retail Price of ElectricityTen Lowest Cost Provinces! States in North America

8.0

7.5.14

7.0 6.82 6.83 6.84 6.91 6.94

6.426.5 6.2 —C

6.0 5.81

5.5

— 5.04.

r ,~é

0~~44>

Source: US Dept of Energy (November 2011) & Edison Electric Survey (July 2011)(Exchange rate: 1 US$ = 1 Cdn)

AManitobaHydro 18

Utility Rate Changes

Cumulative Current2006 2007 2008 2009 2010 2011 2012Increases Rates Index

Manitoba0.0% 2.2% 5.0% 2.9% 2.8% * 2.0% 2.0% 18.1% 100%Hydra Interim

Approved

10.5% 7.1%BC Hydra 1.5% 2.1% 2.8% 9.7% 7.3% Interim- Interim- 48.4% 119%

Approved Approved

Hydro 5.3% 1.9% 2.9% 1.2% 0.4% (0.4%) (0.5%) 11.1% 108%Quebec

NewBrunswick 6.9% 5.9% 3.0% 3.0% 3.0% 0.0% 0.0% 23.7% 172%Pawer

Nova Scotia8.7% 3.8% 0.0% 9.3% 0.0% 6.1% 8.6% 42.0% 189%Pawer

SaskPower 4.9% 4.2% 0.0% 8.5% 4.5% 0.0% 0.0% 23.9% 149%

* Rolled-back to 1.9%

Manitoba 19Hydro

Energy Jobs Fund

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Energy Jobs FundD Announced in the April 2012 Budget.C Comprised of a $30-million fund “to ensure

Manitoba businesses can take full advantage ofthe economic opportunities that will come withthe biggest expansion of Manitoba Hydro indecades.”

C The legislation is referred to as Bill 13,The Renewable Energy Jobs Act.

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Questions?

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