Capital Power Corporation · TSX:CPX

Capital Power — CIBC Institutional Investor Conference 2018

17 slides from Capital Power's conference presentation, Jan 25, 2018

  1. Slide 1: Driving a Sustainable Future

    Driving a Sustainable Future Brian Vaasjo, President & CEO CIBC Institutional Investor Conference January 25, 2018 capitalpower.com

  2. 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 fa

  3. Slide 3: Capital Power well-positioned for yield improvement

    Capital Power well-positioned for yield improvement Solid performance  Operational excellence  Asset optimization  Commodity management Strong growth  Achieved though 2017  Positioned for additional growth Dividend guidance  7% annual guidance through 2020  Based on existing growth Declining

  4. Slide 4: Execution in 2017

    Execution in 2017 Excellent existing operations  Expect to achieve performance targets on our plants  Excellent realized Alberta power price  Continued efforts on reducing carbon footprint Substantial contracted growth and diversification  Executed on renewables strategy  Acquired five thermal

  5. Slide 5: Contracted EBITDA growth

    Contracted EBITDA growth(1-5) $700 $600 Savona and 150 Mile House Decatur East Windsor $500 York Energy Off-coal compensation $400 Bloom ($M) Macho Springs and Beaufort K2 Wind $300 Shepard PD&N $200 Halkirk Quality Wind Island Generation $100 North Carolina Kingsbridge 1 $0 Genesee 1&2 2014 2015 20

  6. Slide 6: Growing AFFO per share

    Growing AFFO(1) per share Acquisitions & addition of Bloom Wind in 2017 strengthen AFFO per share in 2017-18 $4.00 4-year CAGR of ~10% since 2014 $3.50 $3.00 $2.50 (2,3) AFFO/share $2.00 $1.50 $1.00 $0.50 $0.00 2014 2015 2016 2017E 2018T 1) Represents Adjusted FFO (2018 method), less the portion all

  7. Slide 7: Common share dividend guidance

    Common share dividend guidance Targeting 7% annual increase Annualized dividend per share(1,2) $2.05 $1.92 $1.79 $1.67 $1.56 $1.46 $1.36 $1.26 2013 Y/E 2014 Y/E 2015 Y/E 2016 Y/E 2017 Y/E 2018T 2019T 2020T Target annual AFFO payout ratio of 45-55% Well positioned to deliver consistent annual dividen

  8. Slide 8: Geographic profile

    Geographic profile Recent acquisitions & completion of Bloom Wind has increased geographic diversification Breakdown based on Adjusted EBITDA U.S. ON 5% U.S. 13% 20% BC 9% AB ON AB 73% 16% 56% BC 8% 2016(1) 2018 Estimate(1) 1) Percentage breakdown based on Adjusted EBITDA prior to Corporate and unre

  9. Slide 9: New Frontier Wind project

    New Frontier Wind project Development of company’s next U.S. wind farm underway  Location: McHenry County, North Dakota  99 MW capacity using 29 V126-3.45 North Dakota MW Vestas Turbines  Project capital cost US$145M(1)  Project commenced August 2017  COD: December 2018 1) Excludes interest dur

  10. Slide 10: Whitla Wind (phase I) awarded 20-year contract

    Whitla Wind (phase I) awarded 20-year contract  One of three selected by AESO in the 1st round of the Renewable Electricity Program (REP)  REP 1 attracted global participation Alberta  Awarded a 20-year contract for 201.6 MW • Price guaranteed subject to performance • Project capital costs of $31

  11. Slide 11: Path to 2018 AFFO target

    Path to 2018 AFFO target Acquisitions drives 17% net AFFO growth ($M) 1) Represents midpoint of $305 - $345M original guidance range. 2) Represents midpoint of $360 - $400M guidance range. 11 capitalpower.com 11

  12. Slide 12: Looking forward

    Looking forward 2018  Growth in AFFO partially offset by carbon tax  Alberta market clarity and increasing prices  Expect to secure another 1 to 3 contracted windfarm developments  Potential for contracted acquisitions Longer-term  Actions to reduce GHG emissions by 11% (Genesee Performance Sta

  13. Slide 13: Greater geographic diversification

    Greater geographic diversification Geographic breakdown based on Adjusted EBITDA 2015 2017 2020(1) 1) Includes projected growth. capitalpower.com 13

  14. Slide 14: Greater fuel diversification

    Greater fuel diversification Generation type based on Adjusted EBITDA 2015 2017 2020(1) 1) Includes projected growth. capitalpower.com 14

  15. Slide 15: Declining uncertainty in 2018

    Declining uncertainty in 2018 US Tax Reform  Corporate tax rate reduced from 35% to 21%  Base Erosion and Anti-Abuse (BEAT) provision Alberta capacity market design  AESO-led market design process  First auction in 2019 for delivery in mid-2021  Final design expected in mid-2018 Alberta power p

  16. Slide 16: Attractive investment opportunity

    Attractive investment opportunity 2017: Met or exceeded expectations plus tremendous growth 2018: Strong operations, well positioned for Alberta power market upside  Strong contracted growth • Two contracted windfarms underway • Expect to secure an additional 1-3 contracted windfarms • Robust pipel

  17. Slide 17: Investor Relations

    Investor Relations Randy Mah 10423 101 Street NW Senior Manager 10th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada, T5H 0E9 www.capitalpower.com capitalpower.com

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