Capital Power Corporation · TSX:CPX
Capital Power — Q2 2021 Earnings Presentation
15 slides from Capital Power's earnings presentation, Jul 30, 2021
Slide 1: Q2/21 Analyst Conference Call
Q2/21 Analyst Conference Call Brian Vaasjo, President & CEO Sandra Haskins, SVP Finance & CFO July 30, 2021 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
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
Slide 4: Q2/21 highlights and outlook
Q2/21 highlights and outlook Strong Q2 results – significantly exceeded management’s expectations Alberta power market continues to be robust with positive outlook Updated 2021 financial guidance with ranges above the top end of original targets despite Genesee 2 forced outage that started in
Slide 5: Genesee 2 forced outage
Genesee 2 forced outage Generator failure in mid-July Outage expected to last 6 weeks with return to operations in Q3/21 Utilizing Clover Bar Energy Centre to partially mitigate the Genesee 2 impact Opportunity to advance scheduled future work • Eliminates need for 3-week planned outage in O
Slide 6: Solid track record with 8th year of stable dividend growth
Solid track record with 8th year of stable dividend growth Annualized dividend $2.30 per share(1,2) $2.05 $2.19 5% $1.92 ~7% $1.79 $1.67 $1.56 $1.46 $1.36 $1.26 42% 50% 45% 45% 35% 40% ~40% Payout(3) Payout Payout Payout Payout Payout Payout 2013 Y/E 2014 Y/E 2015 Y/E 2016 Y/E 2017 Y/E 2018 Y/E 2019
Slide 7: Recontracting of Island Generation
Recontracting of Island Generation BC Hydro’s draft Integrated Resource Plan (IRP) states intention to not recontract the long-term EPA expiring in Apr/22 Actively participating in IRP review process • Retained technical experts familiar with BC Hydro’s utility resource planning and transmission
Slide 8: Successful financings to fund growth initiatives
Successful financings to fund growth initiatives Completed successful equity offering of ~7.5 million common shares (including exercise of over-allotment option) in June for total gross proceeds of $288M • Share price has rebounded from the $38.45 issue price following closing of offering Execut
Slide 9: Robustness of Alberta power market
Robustness of Alberta power market Above average temperatures in June contributed to average power price of $105/MWh in Q2/21 2021 forward price for last half of the year is $94/MWh $105 $/MWh AB hedged positions 2022 2023 2024 $75 % sold forward(1) 42% 30% 15% $53 Contracted prices(1) High-$50
Slide 10: Financial performance – Q2/21
Financial performance – Q2/21 $M, except per share amounts Q2/21 Q2/20 Change Revenues and other income $387 $435 (11%) Adjusted EBITDA $241 $217 11% Basic earnings per share $0.05 $0.10 (50%) Replace Image Normalized EPS $0.32 $0.17 88% Net cash flows from operating activities $129 $91 42% AFFO(1)
Slide 11: Financial performance – Q2/21 YTD
Financial performance – Q2/21 YTD $M, except per share amounts Q2/21 YTD Q2/20 YTD Change Revenues and other income $941 $968 (3%) Adjusted EBITDA $544 $451 21% Basic earnings (loss) per share $0.88 ($0.02) 4500% Normalized EPS $0.95 $0.44 116% Net cash flows from operating activities $335 $194 73%
Slide 12: YTD performance versus 2021 annual targets
YTD performance versus 2021 annual targets Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) $570 to $500 to $620 $1,090 to $80 to $90 $975 to $1,140 $550(1) $1,025 93% $47 $544 $250 90% Q2/21 YTD Target Q2/21 YTD Target Q2/21 YTD Target Revised Q2/21 YTD Target Revised Targ
Slide 13: Disciplined growth
7 Renewable Projects • Remain on-budget and on-time with target CODs from Q4/21 to Q4/22 Repowering of Genesee 1 and 2 Disciplined growth • All regulatory approvals have been received • Construction expected to begin Q3/21 • Target CODs in 2023 and 2024 with plan to be off coal in 2023 $500M committ
Slide 14: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to inform the • electricity and other energy prices and carbon prices; Company’s shareholders and potential investors about management’s assessment of Capital Power’s future • performance
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