HAWAIIAN ELECTRIC INDUSTRIES Business Summary

Hawaiian Electric Industries Inc. (HE) operates as a holding company primarily focused on the regulated electric utility sector, serving approximately 95% of Hawaii's population through its subsidiary, Hawaiian Electric Company. Following the strategic divestment of a 90.1% stake in American Savings Bank in December 2024, the company’s revenue model is almost entirely concentrated in its utility segment, generating income through the generation, transmission, and distribution of electricity under a cost-recovery framework overseen by the Hawaii Public Utilities Commission. Revenue growth is driven by the Annual Revenue Adjustment (ARA) mechanism and significant capital expenditures aimed at grid modernization, wildfire mitigation, and achieving the state's mandate of 100% renewable energy by 2045. Direct competitors in the regulated utility space include Pinnacle West Capital, Portland General Electric, IDACORP, and TXNM Energy, with HE holding a unique market position as a regulated monopoly within its isolated island service territories. The company traces its origins to 1891, founded by a consortium of Honolulu businessmen including William W. Hall and Jonathan Austin, inspired by the scientific vision of King David Kalakaua. Current leadership is headed by President and CEO Scott W. H. Seu, a Stanford-educated engineer with over three decades of experience at the firm, and Executive Vice President and CFO Scott DeGhetto, a veteran of Moelis & Company and Credit Suisse with 30 years of utility sector expertise. The utility subsidiary is led by President and CEO Shelee M. T. Kimura, who previously held senior roles at Arthur Andersen. The board is chaired by Admiral Thomas B. Fargo (USN, Ret.), providing deep strategic and risk assessment experience. Notable institutional investors include The Vanguard Group, BlackRock, and T. Rowe Price, who maintain significant positions as the company navigates post-wildfire financial recovery and infrastructure transformation.