CBRE Acquisition — Altus Power — Investor Day (May 2024)
76 slides from CBRE Acquisition's investor day presentation, May 14, 2024
Slide 1: Investor Day 2024
INVESTOR DAY 2024
Slide 2: Cautionary Statements and Risk Factors That May Affect Future Results
Cautionary Statements and Risk Factors That May Affect Future Results ‘The following presentation for Altus Power, nc. (‘Altus Power" or the “Company”) has been prepared by Altus Power's management. Any references in this section to “we, “our” or us" shall mean Altus Power. In addition to historical
Slide 3: Investor Day 2024
INVESTOR DAY 2024
Slide 4: Gregg Felton
Gregg Felton Chief Executive Officer
Slide 5: @Y 7,193kwh (© 5,293kwh
@Y 7,193kwh (© 5,293kwh I) 5,497kwh ef ware oT, 3 27,547kwh % acai 1 1,915,000kwh - ——- ey Pa
Slide 6: Electricity To Drive Future Economic Growth
Electricity To Drive Future Economic Growth US Electricity Consumption"? 5,500 B. OF MWh 1.300 — 5,000 B. OF MWh Expected pen Ueor 35% Electrification growth in billions MWh of Everything 4,800 8. OF MW Hi | _CyS AUBSee te. 16% Green Hydrogen 4,000 B. OF MWh ee 11% Crypto/Blockchain 7% Mig, Renaissa
Slide 7: The Advantages Of Commercial Scale Solar
The Advantages Of Commercial Scale Solar Utility Residential Scale Solar Scale Solar Price of Power" W Lower Price @ Higher Price Dollars per kWh He eostto Bale ® Lower Cost @ Higher Cost ROI = ~Lower- ~Lower Return ofinvestment—- RO! por dollars invested _ RO! per dollars invested, ~ 1. Price Of Po
Slide 8: Altus Power Is The Leader In A Rapidly Growing Industry
Altus Power Is The Leader In - 6 Anticipated portfolio A Rapidly Growing Industry’ arose Portfolio as of March 31, 2024 4 NEw BUILD OPPORTUNITY Between 3,500-3,700 MWs Per Year 4 CONSOLIDATION OPPORTUNITY 25,000 MW Currently Installed TOTAL ADDRESSABLE MARKET FOR 6 COMMERCIAL SCALE SOLAR 4.0% 47 LOW
Slide 9: Altus Power Delivers Power At Retail Prices
Altus Power Delivers Power At Retail Prices’ 26 CENTS ($/kWh) Growing Pressure seam On Retail Power Prices Power prices + Grid Investment 18 CENTS ($/kWh) 1% CENTS ($/kWh) 2006 - 201% 2022 2030 F 9% ANNUAL AVERAGE INCREASE { RATE FORECAST* 1. EIA Commercial Utility Rate data 2005-2022 2. Forecast Is
Slide 10: Domestic Supply of Solar Panels
Domestic Supply of Solar Panels ° ~9X Expansior Of US Panel Manufacturing C Capacity Expected from 2023-26 Operating @ Under Construction ‘1 Multiple based on Morgan Stanley Research 2M or asa eee naiceeliecon enna aie
Slide 11: Today You'll Hear From...
Today You'll Hear From... mH Mm Julia Sears Tony Savino Dustin Weber
Slide 12: Investor Day 2024
INVESTOR DAY 2024
Slide 13: Investor Day 2024
INVESTOR DAY 2024
Slide 14: Abhi Parmar
Abhi Parmar Head of Origination, Finance and Deal Structuring
Slide 15: Our Underwriting Principles
Our Underwriting Principles How we underwrite risk and invest capital Production «wn Power Price Credit v_ Engineer Models v Starting Rate Basis v Analysis of Offtaker's Credit Quality vy Annual Escalation v_ Real Estate Analysis v Grid Backstop
Slide 16: Altus Project Economics - Cashflows
Altus Project Economics - Cashflows We like Megawatts - but they come in different shapes and sizes Project A Project B 8.5% Unlevered IRR | 13.5% Levered IRR 8.5% Unlevered IRR 13.5% Levered IRR 1MW Valuation - $2MM ($2.00/watt) 4MW Valuation - $1.3MM ($1.30/watt) T- YEARS 7 } T - YEARS | T - YEARS
Slide 17: Project Cashflows Summary (New Build Project)
Project Cashflows Summary (New Build Project) Illustrative of a IMW new build project’ Capital Stack Summary Asset Annual Summary x 25 years Quantity Production (% kWh) 4,250,000 Price Sole Price (SP/kWh of X) $0.129 Revenue Power Sales $161,000 Opex 08M, insurance, Site Control, ete $ (39,000) Tax
Slide 18: Project Cashflows Summary (Operating Project)
Project Cashflows Summary (Operating Project) Illustrative of a IMW operating project’ Capital Stack Summary Asset Annual Summary x 20 years Quantity Production (x kWh) 1,700,000 Price sale Price (SP/kWh of X) $0.11 Revenue Power Sales $189,000 Tax Equity Opex om, insurance, Site Control, ete $ (39,
Slide 19: Timing of Completion Matters
Timing of Completion Matters’ Illustrative monthly revenue profile pending project completion Project completed in January Project completed in July FEB MAR APR WAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC v $1 million in revenue vy $0.5 million in revenue y $1 mil
Slide 20: Investor Day 2024
INVESTOR DAY 2024
Slide 21: Julia Sears
Julia Sears Chief Digital Officer
Slide 22: Real Problems Demand Real Solutions
Real Problems Demand Real Solutions Driving Sustainable Growth with Intelligent Solutions & A) Community Solar Projects ie Data Al-Driven Solutions Enterprise Insights
Slide 23: Building a Customer-Centric Digital Engine
Building a Customer-Centric Digital Engine 24x7 Team focusing on efficiencies and around the sun development West Coast East Coast Eastern Europe South Asia Southeast Asia
Slide 24: Our Market Position
Our Market Position Altus Power’s growing Community Solar presence Rising Growth Trajectory _ © Commercial @ Commercial & Community Solar
Slide 25: Foundation of Growth Altus Digital Pillars
Foundation of Growth Altus Digital Pillars Our Commitment to a Globalized, Customer-Centric Strategy GREEOEOECE® Unified Client Data Value added Brand Effeciency Platform Relationship is King products “Awareness ~
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Slide 27: We've Digitized the Funnel
We've Digitized the Funnel Streamlining the customer journey from engagement to conversion Social Media Engagement & Target Advertising Audience Discovery Hawaii New Jersey Strategic content to captivate audiences across platforms; employ tailored advertising to attract & guide customers Focus on id
Slide 28: Reducing Acquisition Costs Through Digital Channels
Reducing Acquisition Costs Through Digital Channels A strategic milestone that powers our competitive edge in the market Continuous Reduction In customer acquisition costs
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Slide 30: Customer Breakdown
Customer Breakdown Visualizing Our Diverse Customer Base: Enterprises and Individuals at a Glance INDIVIDUAL CUSTOMERS ENTERPRISE CUSTOMERS 24,000 450
Slide 31: From Inspiration to Ideation
From Inspiration to Ideation The start of Altus IO
Slide 32: Understanding Corporate Energy Goals
Understanding Corporate Energy Goals’ How CEOs view their corporate sustainability initiatives 98% 90% 87% 75% 49% Make business > Publish Sustainability Concerned Employee Renewable Energy more sustainable” Reports’ about UN SDGs? Engagement’ Investment? 1. SHRM (2023, March 27). Survey: ESG Strate
Slide 33: —— ~—b || a a a |
—— ~—b 4 || a a a | powering Every Tenant ' | [Pa a Se | raat ene 4 for Tenuardet and tent a Mal! MES - att aad | | eee °
Slide 34: Welcome to a new era of corporate sustainability
Welcome to a new era of corporate sustainability oan > \
Slide 35: Altus IQ Features
Altus IQ Features Current Capabilities and Future Developments Multiple Building Metering Emissions Offsets Peer Benchmarking Emissions Calculator REC Trading Advanced Reporting Data Health Monitoring Customized Recommendations .. Net Zero Goal Setting Sophisticated Landlord Tools
Slide 36: Altus IQ: Scalable Solutions, Proven Growth
Altus IQ: Scalable Solutions, Proven Growth Before Pilot Ly Buildings After Pilot esata : 449 54 signed | 91 Pending Buildings -
Slide 37: Leveraging Historical Data with AI to Drive Innovation
Leveraging Historical Data with Al to Drive Innovation A Decade Of Data Collection 2010 Initial Expansion 2014 Steady Expansion 2015 Steady Expansion 2021 Steady Expansion 2023 Rapid Growth First solar system energized in Bridgeport, Connecticut Blackstone initial investment First Community Solar pr
Slide 38: Data's Cycle: Driving Solar Adoption
Data’s Cycle: Driving Solar Adoption > More Adoption More Data More More Connections Insights More More ~ Engagemenit _ Automation
Slide 39: Investor Day 2024
INVESTOR DAY 2024
Slide 40: Tony Savino
Tony Savino Chief Construction Officer
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Slide 43: Seis
Seis BS
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Slide 45: a ae
a ae pita
Slide 46: Dan Alcombright, Stepan Dragan, Alana Chain
Dan Alcombright Chief Platform officer © & Stepan Dragan Director of Engineering Alana Chain Managing Director, Energy Optimization
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Slide 48: Project Timeline
Project Timeline Origination thru conclusion Origination & Development (8-18 months) Development & Engineering (6-8 months) Pre-Construction (2-3 months) Construction (4-6 months) Post-Construction (2-3 months) Energy Optimization: Customer Experience © Origination @ Development @ Project Managment
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Slide 53: Near shadings parameter
Near shadings parameter Perspective of the PV-field and surrounding shading scene
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Slide 64: Investor Day 2024
INVESTOR DAY 2024
Slide 65: Dustin Weber
Dustin Weber Chief Financial Officer
Slide 66: The Current Portfolio
The Current Portfolio Market Leader’ In Commercial Scale Solar Largest owner and operator of commercial scale solar Benefits from being the category leader 981 MWs As of March 31, 2024 A diversified portfolio in 25 states with estimated annual generation of 1,160,000,000 kilowatt hours of clean powe
Slide 67: Our Business Model is Beautifully Simple
Our Business Model is Beautifully Simple $196M ARR" PORTFOLIO AS OF MARCH 31, 2024 Annual Recurring Revenue (ARR)' Estimated ARR of $196 million! from our portfolio as of March 31, 2024 Our growing recurring revenue provides increased visibility towards our revenue targets Power price sensitivity Fo
Slide 68: Differentiated Aspects of our Business
Differentiated Aspects of our Business 1 Increasing manufacturing of domestic solar panels’, which will allow us to qualify for increased Investment Tax Credit (ITC) on new builds 2 Deepening of existing customer relationships 3 Strategic debt financing flexibility, maximizing our profitability 1 Ba
Slide 69: Financing Capabilities as a Key Advantage
Financing Capabilities as a Key Advantage @ Long Term Debt 60-70% of asset cost @ Tax Equity’ 30% of asset cost SOURCES OF FINANCING OF NEW BUILDS @ Cash? 0-10% of asset cost — $204 million cosh galance $169 Million Blackstone Construction Facility ~ S115 Mil lgscreopecatis aq carpe dtegavtlver (ora
Slide 70: Our Three Year Vision
Our Three Year Vision Megawatt Growth Fueling Expansion of Revenue and Adjusted EBITDA’ $350M We Expect to Grow Megawatts ie at a 20-30% CAGR? Over the Next 3 Years $250M ° 200M $150M $155M s100m $101M 2, “: — $72M i sso - iam om 2019 2020 2021 2022 2028 20067 1. Adjusted EBITDA is non-GAAP financia
Slide 71: Investor Day 2024
INVESTOR DAY 2024
Slide 72: Appendix
Appendix
Slide 73: The Math of Altus Power - Cashflows
The Math of Altus Power - Cashflows' New Build Asset Snapshot Size (kwdc) 1,000 Production: - 1,250 1,24 1,238 25,714 Production (mwh) 1,250 Sale Price - $0129 ‘$0.13, $0.14 $018 Capex ($/watt) ‘S2mm Power Sales = $161 S164 ‘$168 $4,663 Power Rate ($/kwh) paar (Opex (05M, Insurance, Site Control, et
Slide 74: The Math of Altus Power - Cashflows
The Math of Altus Power - Cashflows' Operating Asset Snapshot ‘Size (lewd) Production (mwh) Copex (S/watt) Power Rate ($/kwh) Power Escalator Opex Opex Escalator 4,000 4,700 $1.30 $39 19.4% ‘$1,300 Tax Equity Proceeds Distribution Buyout S910 1. This project example is for illustrative purposes only
Slide 75: Non-GAAP Definitions
Non-GAAP Definitions We define adjusted EBITDA as net income plus net interest expense, depreciation, amortization and accretion expense, income tax expense or benefit, acquisition and entity formation costs, stock-based compensation expense, and excluding the effect of certain non-recurring items w
Slide 76: Adjusted EBITDA Definitions
Adjusted EBITDA Definitions Interest Expense, Net. Interest expense, net represents interest on our borrowings under our various debt facilities, amortization of debt discounts and deferred financing costs, and unrealized gains and losses on interest rate swaps. Depreciation, Amortization and Accret