Capital Power Corporation · TSX:CPX

Capital Power — Q1 2020 Earnings Presentation

16 slides from Capital Power's earnings presentation, May 4, 2020

  1. Slide 1: Q1/20 Analyst Conference Call

    Q1/20 Analyst Conference Call Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO May 4, 2020 [Insert picture of Cardinal Point or Buckthorn for title page; other visual images in presentation to be added] 1

  2. 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

  3. Slide 3: Non-GAAP financial measures

    Non-GAAP financial measures 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 and unrealiz

  4. Slide 4: 2020 Q1 highlights and outlook

    2020 Q1 highlights and outlook  Solid Q1 results – meeting management expectations  Outlook for 2020 confirming financial and dividend guidance  Very strong financial position and liquidity  Effective COVID-19 management – keep employees healthy, reduce risk and keep plants operating  Very good

  5. Slide 5: Managing effectively during COVID-19

    Managing effectively during COVID-19  Implemented business continuity and risk management plans  Health and safety of our employees • Working from home for office and all non-essential plant employees • Numerous hygiene and social distancing protocols adopted in the plants • Functioning very well

  6. Slide 6: Growth and renewable highlights

    Growth and renewable highlights Added 251 MWs in renewables  Completed 150 MW Cardinal Point Wind project on-schedule and on- budget (USD)  Acquired 101 MW Buckthorn Wind in Texas with 15-year weighted average contract life remaining Signed agreement with Vestas for 10-year extension of LTSAs  Co

  7. Slide 7: Financial highlights

    Financial highlights Q1/20 financial results in line with our expectations  Busiest quarter for planned outages reflected in the 91% average availability • Expect to generate positive net cash flows for remainder of the year  Major outage planned for Genesee 2 deferred to 2021 due to COVID-19  Ge

  8. Slide 8: Financial performance – Q1/20

    Financial performance – Q1/20 $M, except per share amounts Q1/20 Q1/19 Change Revenues and other income $533 $397 34% Adjusted EBITDA $234 $202 16% Basic (loss) earnings per share ($0.11) $0.49 (122%) Replace Image Normalized EPS $0.27 $0.29 (7%) Net cash flows from operating activities $103 $196 (4

  9. Slide 9: Portfolio optimization

    Portfolio optimization Alberta commercial portfolio positions  91% of baseload generation hedged for the remainder of 2020 at an average price in mid-$50/MWh  Forward prices for the balance of 2020 are $48/MWh 2021 2022 2023 % sold forward(1) 7% 15% 9% Contracted prices(1) ($/MWh) Low-$60 Low-$50

  10. Slide 10: Very strong financial position and liquidity

    Very strong financial position and liquidity  Strong cash flow generation with majority contracted • Expect to generate $300M+ in discretionary cash flow(1) in 2020 • Majority of cash flows contracted with an average PPA life remaining of 10 years • Contracts with largely investment grade counterpa

  11. Slide 11: Q1/20 performance versus 2020 annual targets

    Q1/20 performance versus 2020 annual targets Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) $90 to $100 $500 to $550 $935 to $985 93% 91% $234 $118 $16 Q1/20 Target Q1/20 Target Q1/20 Target Q1/20 Target No changes to 2020 financial guidance, AFFO expected to be near the

  12. Slide 12: 2020 development and construction targets

    2020 development and construction targets Targets Status Cardinal Point Wind (Illinois, 150  Total USD project cost expected near low end of budget MW) Complete construction range within $289-$301M (CAD), $236-  Completed on-schedule with COD on Mar 16/20 $246M (USD) budget for COD in  Received n

  13. Slide 13: Investment thesis

    Investment thesis Long-term drivers of our business prove resilient  Young fleet with long asset lives with a focus on strong operational performance and optimizing assets  Highly contracted and diversified portfolio by geography and fuel mix  Strong cash flow generation including $300M+ in discr

  14. Slide 14: Questions?

    Capital¢S pital RESPONSIBLE ENERGY FOR TOMORROW Questions?

  15. Slide 15: Forward-looking information

    Forward-looking information These statements are based on certain assumptions and analyses made by the Company in light of Forward-looking information or statements included in this presentation are provided to inform the Company’s shareholders and potential investors about management’s assessment o

  16. Slide 16: Investor Relations

    Q1/20 Analyst Conference Call [Insert picture of Cardinal Point or Buckthorn for title page; other visual images in presentation to be added] Investor Relations Randy Mah 10423 101 Street NW Director, Investor Relations 11th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada T5H 0E9

Capital Power — Q1 2020 Earnings Presentation on 6ix