Otter Tail Corporation · NASDAQ:OTTR
Otter Tail — Minnesota Utility Investors 2023 Annual Meeting
15 slides from Otter Tail's conference presentation, Oct 9, 2023
Slide 1: Minnesota Utility Investors 2023 Annual Meeting
Minnesota Utility Investors 2023 Annual Meeting October 9, 2023
Slide 2: Forward-Looking Statement
Forward-Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “f
Slide 3: Company Overview
Company Overview MANUFACTURING PLATFORM ELECTRIC PLATFORM MANUFACTURING SEGMENT PLASTICS SEGMENT Electric Platform Highlights Manufacturing Platform Highlights • Attractive rate base growth • Diversification • Competitive low-cost operations • Enhanced return on equity (ROE) • Constructive regulator
Slide 4: OTTR Investment Theme
OTTR Investment Theme Financial Performance Targets Total Shareholder Return1 8-10% Long-Term EPS Growth Rate 5-7% Dividend Yield ~ 3% Long-Term Targeted Dividend Payout Ratio 55-65% Dividend Growth Rate 5-7% Equity Layer 55-60% 1 Defined as EPS growth rate plus dividend yield Balanced Growth & Inco
Slide 5: History of Dividend Growth
History of Dividend Growth Our Dividend Story Dividend Growth & Payout Ratio CAGR = 5.4% • Paid annual dividend without interruption since 1938 $1.65 $1.75 $1.56 $1.48 • 6.1% increase, or $0.10 per share, indicated $1.23 $1.25 $1.28 $1.34 $1.40 for 2023 • Strong balance sheet, ample liquidity, histo
Slide 6: Electric Platform
Electric Platform OrEnian POWER COMPANY
Slide 7: Electric Operations
Electric Operations • Vertically integrated, regulated utility with generation, transmission and distribution facilities Rate Base • Serve more than 133,000 residential, commercial and industrial customers • Service area encompasses approximately 70,000 square miles of western Minnesota, eastern Nor
Slide 8: Hoot Lake Solar
Hoot Lake Solar Project Hoot Lake Solar Description 49-MW self-build solar Schedule 2020-2023 Otter Tail Power Cost ~ $62 million Project Summary • Qualifies for investment tax credit of 40% after IRA passage • Eligible to meet utility scale portion of MN Solar Energy Standard (1.5% of retail sales)
Slide 9: MISO Long Range Transmission Planning (LRTP)
MISO Long Range Transmission Planning (LRTP) Project MISO LRTP Description LRTP Tranche 1 Transmission Projects Schedule In development Otter Tail Power Cost ~$410 million Project Summary • MISO recently approved its Long Range Transmission Plan which includes two 345kV projects in Otter Tail Power
Slide 10: Wind Repowering
Wind Repowering Project Wind Repowering Description Equipment upgrades at wind facilities Schedule In development Otter Tail Power Cost ~$230 million Project Summary • Upgrade and refurbishment of wind turbines at the Langdon, Ashtabula, Luverne, and Ashtabula III wind energy facilities in 2024 and
Slide 11: Integrated Resource Plan
Integrated Resource Plan Integrated Resource Plan (IRP) • Supplemental IRP filed March 2023, jointly in MN, ND, & SD • Required filing in MN and ND • Preferred 5-year plan, requested authority to: ◦ Add on-site LNG fuel storage at Astoria Station ◦ Add 200 MW of solar generation in 2027-2028 ◦ Comme
Slide 12: Manufacturing Platform
Manufacturing Platform we @®) VINYLTECH TO. PLASTICS Vill BT D northern pipe PVCePIPE products 12
Slide 13: Manufacturing Operations
Manufacturing Operations •Contract metal fabrication – stamping, machining, tube bending, tool & die, laser cutting, welding, painting, assembly. A one stop shop for customer needs •Growth opportunities with existing customer base and expansion with new customers •Ability to pass through commodity e
Slide 14: Plastics Operations
Plastics Operations •Manufactures and sells polyvinyl chloride (PVC) pipe to distributors. Pipe is used in municipal water, rural water, wastewater, and storm drainage systems •Plants located Fargo, ND & Phoenix, AZ •Approximate production capacity of 350 mm lbs. of PVC 14
Slide 15: www.ottertail.com
S OTIERTAIL W CORPORATION www.ottertail.com
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