Slide 1: Q4/18 Analyst Conference Call
Q4/18 Analyst Conference Call Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO February 19, 2019 capitalpower.com
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
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, and gains or losses on disposals (adjuste
Slide 4: Strong execution in 2018
Strong execution in 2018 An excellent year highlighted by additional contracted growth Growth and capital allocation • Secured 12-year contract for Cardinal Point Wind • Acquired Arlington Valley • Completed New Frontier project on-time and below budget • Disposal of minority interest in K2 Wind for
Slide 5: Stable outlook in Alberta power prices
Stable outlook in Alberta power prices Q4/18 average spot price more than doubled YoY Significant step change 70 in 2018 power prices Quarterly Annual • Coal plant retirements / 60 mothballing • Robust demand growth 50 • Higher carbon tax 40 $/MWh 30 20 10 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18
Slide 6: Q4/18 financial review
Q4/18 financial review • Completed two major planned outages at Genesee 3 and Decatur resulting in average facility availability of 94% in Q4/18 • Recorded $159M gain on disposal of minority interest in K2 Wind • Q4/18 Adjusted EBITDA slightly below management’s expectations while AFFO in-line with
Slide 7: Financial performance – Q4/18
Financial performance – Q4/18 $M, except per share amounts Q4/18 Q4/17 Change Revenues and other income $335 $261 28% Adjusted EBITDA Lower Adjusted $166 $172 (3%) EBITDA from ON, (before mark-to-market)(1) BC, and U.S. Basic earnings per share $1.27 ($0.20) 735% contracted assets and higher Normali
Slide 8: Financial performance – 2018
Financial performance – 2018 $M, except per share amounts 2018 2017 Change Revenues and other income $1,394 $1,146 22% Strong growth in Adjusted EBITDA Adjusted EBITDA and AFFO from AB $713 $592 20% (before mark-to-market)(1) contracted facilities and a full year of Basic earnings per share $2.25 $1
Slide 9: Portfolio optimization
Portfolio optimization AB commercial portfolio positions 2019 2020 2021 As of date Dec 31, 2018 Nearly 500 MW (gas peaking, wind) available % sold forward(1) 78% 34% 1% to capture the upside from low natural gas Contracted prices(2) ($/MWh) Mid-$50 Low-$50 Low-$80(3) prices, higher power prices, and
Slide 10: 2018 performance versus annual targets
2018 performance versus annual targets Met or exceeded annual targets Facility O&M Facility availability Sustaining capex ($M) expenses ($M) AFFO ($M) $230 to $250 $85 $360 to $400 $79 $238 95% 95% $397 Actual Target Actual Target Actual Target Actual Target capitalpower.com 10
Slide 11: 2018 development & construction targets
2018 development & construction targets Disciplined growth Targets Results New Frontier Wind – complete within $182M Final project cost slightly below budget budget for COD in Dec 2018 Achieved COD on Dec 21/18 Received net tax equity financing of $125M from J.P. Morgan Returns on project fo
Slide 12: 2019 operational targets
2019 operational targets Deliver strong operational performance from a young, well-maintained generation fleet Facility availability Sustaining capex ($M) $80 - $90 95% 95% $79 2018 2019T 2018 2019T capitalpower.com 12
Slide 13: 2019 financial targets
2019 financial targets Key assumptions • Based on 70% of the Alberta Commercial baseload generation sold forward at an average contracted price in the low-$50/MWh range • Excludes any impacts from $500M of committed capital for growth Adjusted EBITDA(1) Adjusted funds from operations(1) ($M) ($M) $9
Slide 14: 2019 development & construction targets
2019 development & construction targets Construction 2019 2020 2021 Whitla Wind Cardinal Point Wind (Alberta) (Illinois) • 201.6 MW (Phase 1) • 150 MW • 20-year PPA • 12-year PPA • $315-$325M • $289-$301M • COD in Q4/19 • COD in Mar/20 Other contracted growth • $500 million of committed capital capi
Slide 15: Questions?
Questions? capitalpower.com 15
Slide 16: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to These statements are based on certain assumptions and analyses made by the Company in light of its inform the Company’s shareholders and potential investors about management’s experien
Slide 17: Investor Relations
Investor Relations Randy Mah 10423 101 Street NW Director 11th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada, T5H 0E9 www.capitalpower.com capitalpower.com 17