Slide 1: Q3/15 Analyst Conference Call
CAPITAL POWER Q3/15 Analyst Conference Call October 26, 2015 Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO
Slide 2: Forward-looking information
Forward-looking information Cautionary statement Certain information in this presentation and in responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material fac
Slide 3: Non-GAAP financial measures
Non-GAAP financial measures The Company uses (i) earnings before finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, and gains on disposals (adjusted EBITDA), (ii) funds from operations (FFO), (iii) normalized earnings attributable to co
Slide 4: Q3/15 Highlights
Q3/15 Highlights Solid operating performance with average plant availability of 95% reflecting planned outage at Keephills 3 Normalized EPS of $0.33 ahead of expectations and up 175% compared to $0.12 in Q3/14 FFO of $97M also better than expected and 17% higher than $83M in Q3/14 Based on Y
Slide 5: Q3/15 Operating performance
Q3/15 Operating performance Plant availability Q3/15 Q3/14 Alberta commercial Genesee 3 100% 97% 95% average plants Keephills 3 63% 100% availability in Q3/15 Clover Bar Joffre 88% 100% 97% 95% 63% availability at Shepard 100% N/A Keephills 3 from major Halkirk 97% 91% scheduled outage Alberta c
Slide 6: Q3/15 Financial review
Q3/15 Financial review Normalized EPS of $0.33 and $97M of FFO was higher than expected due to strong portfolio optimization activities Capitalized on temporary increases in forward prices in Jun/15 including locking in forwards for latter half of the year Despite a 59% decline in average AB p
Slide 7: Alberta power market trading
Alberta power market trading Effective portfolio optimization resulted in higher averaged realized price of $61/MWh compared to average AB spot power price of $26/MWh in Q3/15 Average realized power price has exceeded spot power prices ($/MWh) by 24% on average over the past 5.75 years $125 $100 $
Slide 8: Financial performance – Q3/15
Financial performance – Q3/15 $M, except per share amounts Q3/15 Q3/14 Change Revenues $469 $248 89% Adjusted EBITDA (before mark-to-market)(1) $121 $86 41% Basic earnings (loss) per share $0.44 ($0.62) 171% Normalized earnings per share $0.33 $0.12 175% Funds from operations $97 $83 17% Strong Q3/1
Slide 9: Financial performance – Q3/15 YTD
Financial performance – Q3/15 YTD Q3/15 Q3/14 $M, except per share amounts Change YTD YTD Revenues $910 $796 14% Adjusted EBITDA (before mark-to-market)(1) $329 $283 16% Basic earnings (loss) per share $0.40 ($0.12) 433% Normalized earnings per share $0.73 $0.51 43% Funds from operations $275 $260 6
Slide 10: Financial outlook
Financial outlook 2015 FFO guidance was based on average Alberta power price forecast of $44/MWh compared to actual power price of $37/MWh (Q3 YTD) Improvement in 2015 FFO expectation to the mid-point of $365M to $415M guidance range from low end of range Expect Alberta Government to announce
Slide 11: Q3/15 YTD performance vs. annual targets
Q3/15 YTD performance vs. annual targets Operational and financial targets ($M) 100% Plant availability Sustaining capex $100 95% $75 94% 94% 90% $50 $65 $50 85% $25 80% $0 2015 YTD Target 2015 YTD Target Plant operating & maintenance expenses Funds from operations ($M) $200 $180 - $200 ($M) $365 -
Slide 12: 2015 Development & construction targets
2015 Development & construction targets On-time, on-budget and safe development of committed projects K2 Wind (Ontario) Genesee 4&5 (Alberta) Transition from On track; Complete construction for COD in mid-2015 development to continuing site construction preparation work 12
Slide 13: Questions?
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Slide 14: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation and in responses to questions are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information m
Slide 15: Investor Relations Contact
Investor Relations Contact Randy Mah Senior Manager (780) 392-5305 rmah@capitalpower.com Head Office 10th Floor 10423 – 101 Street NW Edmonton, AB T5H 0E9 www.capitalpower.com