Northland Power Inc. · TSX:NPI
Northland Power — Investor Presentation (June 2018)
30 slides from Northland Power's investor presentation, June 2018
Slide 1: Northland Power Investor Presentation June 2018
Northland Power Investor Presentation June 2018 NPI.TO
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking Statements Disclaimer This written and accompanying oral presentation contains certain forward-looking statements which are provided for the purpose of presenting information about management’s current expectations and plans. Readers are cautioned that such statements may not be appr
Slide 3: Northland Overview: Over 30 Years of Excellence
Northland Overview Over 30 years of successfully developing, constructing and operating independent power projects Well-diversified, 2,458 MW (gross) modern fleet of high-quality assets Over $10 billion of assets constructed since inception and currently under construction Overall availabili
Slide 4: Evolution of Northland
Evolution of Northland Total Gross Total Returns1 (%) Capacity (MW) 1,400% 3,000 July 16, 2009 1,165% 1,200% Renewables (MW) Merger of NPI 2,500 and Income Trust 1,000% Clean Gas and Biomass (MW) 2,000 Northland Returns (%) 800% 1,500 600% April 15, 1997 2,458 MW 1,000 400% Northland IPO 200% 500 0%
Slide 5: Northland's Asset Diversification
Northland’s Asset Diversification In operation Under construction Geography: Operating1 Construction1 Technology: Operating1 Construction1 Canada 1,526 MW - Thermal 1,001 MW - Netherlands 600 MW - Wind 1,326 MW 252 MW Germany 332 MW 252 MW Solar 131 MW - Total (Gross) 2,458 MW 252 MW Total (Gross) 2
Slide 6: Northland's Successes in the Past Year
Northland’s Successes in the Past Year FY 2017: Adj. EBITDA of $765 million, a 22% increase over 2016; and Free Cash Flow per share of $1.46, a 4% increase over 2016 FY 2017: Operating income of $632 million, a 24% increase over 2016 Q1 2018: Adj. EBITDA of $290M (47% ) and Free Cash Flow per
Slide 7: Northland's Strong and Growing Results
Northland’s Strong and Growing Results 2012¹ 2017² Annual Growth Assets $2.5 B $10.2 B 32% Enterprise Value $3.7 B $11.9 B 26% Market Capitalization $2.2 B $4.1 B 14% Operating Capacity (Gross) 1,242 MW 2,458 MW 15% Operating Capacity (Net) 1,005 MW 2,029 MW 15% Share Price $18.67 $23.35 1
Slide 8: Total Shareholder Returns
Total Shareholder Returns Total Shareholder Returns 40% Peer Group* S&P/TSX Capped Utilities Index 30% Northland Power 21% 20% 14% 11% 10% 6% 0% -10% YTD 3-Year 5-Year 10-Year -20% YTD 3-year 5-year 10-year Northland has consistently delivered superior returns to shareholders over the years * Includ
Slide 9: Continued Growth in Financial Results
Continued Growth in Financial Results The following chart illustrates Northland’s growing Adjusted EBITDA and Free Cash Flow Per Share profile Adjusted EBITDA Growth Free Cash Flow Per Share Growth Growth ~200% Growth ~80% 2012A 2014A 2016A 2018F 2020F 2012A 2014A 2016A 2018F 2020F Significant
Slide 10: World Class Offshore Wind Projects
World Class Offshore Wind Projects Gemini Nordsee One 600 MW 332 MW 60% Interest 85% Interest COD Apr 2017 COD Dec 2017 252 MW1 300 MW2 100% Interest 60% Interest COD Late 2019 COD 2024 Deutsche Bucht Hai Long 2 With the successful completion of Gemini and Nordsee One, Management is focused on const
Slide 11: Top Offshore Wind Projects in Operations
Top Offshore Wind Projects in Operations Gemini Project Snapshot Current: Top 15 (Gross MW) COD: • April 2017 Capacity: • 600 MW (gross) 2nd Contract: • 15-year PPA with the Government of Netherlands 630 600 Type: • Offshore wind 576 573 • Alte Leipziger & 504 • Northland 60% Ownership: Hallesche 10
Slide 12: Deutsche Bucht (DeBu) – Construction Update
Deutsche Bucht (DeBu) – Construction Update Location North Sea, Germany DeBu Offshore Capacity 252 MW1 Wind Project Capital Cost €1.3 billion1 Northland Interest 100% (252 MW) Power Contract 13y FIT subsidy under German REA Ops & Maintenance MHI Vestas (~13y) – guarantees high op. availability Comme
Slide 13: Deutsche Bucht (DeBu) – Additional Facts
Deutsche Bucht (DeBu) – Additional Facts Deutsche Bucht Construction Structure (Two Contracts) 1) MHI Vestas 2) Van Oord EPCI Grid Connection Borwin beta (AC/DC) Existing 33 Wind Turbines Cable Supply & (TenneT (Utility)- Not Project’s Responsibility to Construct) Supply & Install Install Foundation
Slide 14: Northland Construction Track Record
Northland Construction Track Record Project Technology MW (gross) COD On/Ahead of Schedule Under Budget Iroquois Falls Gas 120 1997 Mont Miller Onshore Wind 54 2005 Jardin d’Éole Onshore Wind 133 2009 Thorold Gas 265 2010 Mont Louis Onshore Wind 101 2011 Spy Hill Gas 86 2011
Slide 15: Track Record of Innovation and Early Market Penetration
Track Record of Innovation and Early Market Penetration Northland Firsts 1st Canadian IPP to Enter European Largest Project Financing for 1st Offshore Wind Project Financing Offshore Wind Renewables Project1 With Only Commercial Financing One of the First Power Income Trusts One of the First IPPs to
Slide 16: Multiple Development Markets & Technologies
Multiple Development Markets & Technologies Canada & United States Europe South Japan Korea Taiwan Mexico & Latin America Potential Markets Asia Northland Office (Toronto, Mexico City, London, Amsterdam, Hamburg, Taipei) Market and Technology Assessment Criteria Stable Economic Conducive to Long Ter
Slide 17: Taiwan Overview
Taiwan Overview Current Market Themes Site Location FIT Program currently in place to support Water Depth: 0–20 m Water Depth: 20–50 m renewable policy targets Taipei Taiwan Strait City FIT program designed to kick-start offshore wind sector with 20 year FIT contracts Pacific Ocean Current Taiwa
Slide 18: Significant Development Opportunities
Significant Development Opportunities Total Opportunity in Target Markets Identify and qualify potential markets with >150 GW attractive fundamentals Development Pipeline Source and evaluate opportunities that ~6,000 MW meet our investment criteria Construction & Advanced 269 300 Development MW1 MW
Slide 19: Power Markets are Changing
Power Markets are Changing Our industry has changed immensely over the past 10 years Supportive Government Policies – Governments have taken real action to reduce carbon Industry Evolution & Technological Advancement – Renewables are now a cost-effective and feasible alternative to add new power
Slide 20: Global Movement Towards Sustainability
Global Movement Towards Sustainability Source: United Nations Department of Economic and Social Affairs 19
Slide 21: Our Sustainability Pillars
Our Sustainability Pillars Northland’s vision is to be a top clean and green power producer, inspiring our people to achieve a sustainable and prosperous future for all stakeholders We will achieve this through our three strategic pillars: Inspired Top Clean & Green Prosperity for Workforce Powe
Slide 22: Looking Ahead in 2018
Looking Ahead in 2018 Continue to advance and secure Objectives: high quality projects Diversify across locations and technologies Development Be a leading player in the global Focus transition towards decarbonization Continue track record: on-time, on-budget Continue to execute on DeBu Co
Slide 23: Investor Relations Contacts / Appendix
Investor Relations Contacts Appendix 22
Slide 24: Reporting of Non-IFRS Financial Measures
Reporting of Non-IFRS Financial Measures This investor presentation includes references to Northland’s adjusted EBITDA and free cash flow, measures not prescribed by International Financial Reporting Standards (IFRS). Adjusted EBITDA and free cash flow, as presented, may not be comparable to other s
Slide 25: Past and Present Wind Turbines
Past and Present Wind Turbines Wind Turbine Evolution Jardin d’Éole Grand Bend Gemini Nordsee One Deutsche Bucht 12MW Turbine Manufacture: GE Energy Manufacture: Siemens Manufacture: Siemens Manufacture: Senvion Manufacture: MHI Vestas Expected to Rated Power: 1.5 MW Rated Power: 3.0 MW Rated Power:
Slide 26: Producing and Maintaining Stable Cash Flows
Producing and Maintaining Stable Cash Flows Remaining PPA Term for Each Operating Facility Iroquois Falls Iroquois Falls Weighted Average Life of Kingston Nordsee 12.6 years2 One Thorold Jardin Thorold Spy Hill Kirkland Lake1 Cochrane* DeBu Kirkland* Mont Louis Mt Louis Gemini Germany Jardin North B
Slide 27: Operating Facilities
Operating Facilities Gross Northland Project Location Capacity Ownership Technology PPA Term Thorold ON, CA 265 MW 100% Natural gas cogeneration 2030 Iroquois Falls ON, CA 120 MW 100% Natural gas cogeneration 2021 Spy Hill SK, CA 86 MW 100% Natural gas peaking plant 2036 Biomass and natural gas Kirk
Slide 28: European Offshore Wind Facility Details
European Offshore Wind Facility Details Gemini Nordsee One Deutsche Bucht (DeBu) 252 MW (+17 MW Capacity 600 MW 332 MW Demonstrators*) Distance to Shore 85km 40km 95km Wind Turbines 150 x Siemens 4 MW 54 Senvion x 6.15 MW 33 x MHI Vestas 8MW Turbine Foundation Monopile Monopile Monopile* Water Depth
Slide 29: Financial Summary
Financial Summary Key Metrics Recent¹ Share Price (TSX: NPI) $24.27 Shares (Common + Class A) 176 million Institutional Ownership ~38% Management Ownership ~34% Annual Dividend $1.20 Annual Dividend Yield 4.9% Total Debt, Net of Cash $6.5 billion Convertible Debentures (NPI.DB.B, NPI.DB.C) $229 mill
Slide 30: Investor Relations Contacts
Investor Relations Contacts Dhiraj Shangari Manager, Corporate Finance 647.288.5566 Barb Bokla Manager, Investor Relations 647.288.1438 investorrelations@northlandpower.com.comnorthlandpower.com 29