Capital Power Corporation · TSX:CPX
Capital Power — Q4 2021 Earnings Presentation
15 slides from Capital Power's earnings presentation, Feb 24, 2022
Slide 1: Q4/21 Analyst Conference Call
Q4/21 Analyst Conference Call Brian Vaasjo, President & CEO Sandra Haskins, SVP Finance & CFO February 24, 2022 1
Slide 2: Forward-looking information
Forward-looking information Cautionary statement Certain information in this presentation and responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information as a result of certain mater
Slide 3: Non-GAAP financial measures and ratios
Non-GAAP financial measures and ratios The Company uses (i) earnings before net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense and depreciation expense from its joint venture interests, gains or losses on disposals a
Slide 4: Accelerating strategic objectives
Accelerating strategic objectives Strategic • Acceleration of our renewable and storage footprint • Success on long-term contracting • Repositioning Genesee 1 & 2 to be most efficient combined cycle units in Alberta Sustainability • Integral to our business including broad compensation linked to ESG
Slide 5: Strategic highlights – executing on growth
Strategic highlights – executing on growth • Advancing Genesee repowering with the integration of battery storage • 6-year tolling agreement extension for Arlington Valley reaffirms our natural gas strategy • Decatur’s combustion turbine upgrades increase contracted capacity and economics • COD of p
Slide 6: Consistent substantial growth in renewables
Consistent substantial growth in renewables (MW) 2000 Halkirk 2 Bear Branch Hunter's Cove Hornet 1500 Enchant Strathmore Whitla 2&3 Buckthorn 1000 Cardinal Whitla New Frontier Bloom 500 Beaufort Macho Springs PDN Halkirk 0 Quality 2016 2017 2018 2019 2020 2021 2022 2023 2024 6
Slide 7: Sustainability commitments – integral to Capital Power
Sustainability commitments – integral to Capital Power • Broad compensation linked to ESG targets • Diversity targets • 30% carbon reduction by 2024 • Employee well being • Successful implementation of sustainable sourcing plan and water management strategy • On track to be off coal in 2023 • Sustai
Slide 8: Substantial progress on advancement of CCUS
Substantial progress on advancement of CCUS Alberta CCUS hub CCS financial support Carbon policy de-risking • Collaboration with Enbridge for • $1.8 - $2.0B project cost for • Required for Genesee CCS to “Open Access Wabamun carbon capture advance Carbon Hub” progressing well • Expect sufficient Fed
Slide 9: Financial highlights – generating strong cash flow
Financial highlights – generating strong cash flow • Record adjusted EBITDA and AFFO in 2021 with equivalent 2022 forecast performance • 8th consecutive annual dividend increase in 2021 with guidance extended to 2025 • TSR of 19% in 2021 consistent with 5-year average • Well managed medium-term risk
Slide 10: 2021 record year in financial performance
2021 record year in financial performance Net cash flows from operating Revenues and other income ($M) Adjusted EBITDA ($M) activities ($M) Q4/21 672 Q4/21 294 Q4/21 185 Q4/20 516 Q4/20 220 Q4/20 159 2021 1,990 2021 1,124 2021 867 2020 1,937 2020 955 2020 611 • Higher AB power price • COD of Whitla
Slide 11: Island Generation contract renewal nearing completion
Island Generation contract renewal nearing completion Sep 2021 Dec 2021 • BC Hydro indicated to BCUC • BC Hydro released final IRP the need for Island – affirmed intention that Generation during long-term EPA for Island transmission repairs Generation not required Current status • $52M impairment re
Slide 12: Alberta portfolio optimization of short- and medium-term commodity price risk
Alberta portfolio optimization of short- and medium-term commodity price risk (All data as of Dec 31/21) 2022 2023 2024 Alberta power market • Demand fully recovered Power from COVID-19 and low oil prices % Sold forward(1) 72% 47% 32% • All-time summer and winter record demand set Contracted power p
Slide 13: 2022 targets – guidance reaffirmed
2022 targets – guidance reaffirmed Sustaining capex ($M) Adjusted EBITDA ($M) 2022 sensitivities $1,090 to $1,110 to Inflationary pressure $105 to $120 $115 $1,140 $1,160 • Modest unmitigated exposure on $80 to $1,124 $90 $975 to operating results $1,025 • Managing construction exposure Interest rat
Slide 14: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to inform the Company’s shareholders These statements are based on certain assumptions and analyses made by the Company considering its and potential investors about management’s assessme
Slide 15: Questions?
Questions? Investor Relations Randy Mah 10423 101 Street NW Director, Investor Relations 11th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada T5H 0E9 15