Capital Power Corporation · TSX:CPX
Capital Power — Q1 2012 Earnings Presentation
18 slides from Capital Power's earnings presentation, Apr 30, 2012
Slide 1: Analyst Conference Call Q1 2012 Review
CAPITAL POWER ANALYST CONFERENCE CALL Q1 2012 REVIEW Brian Vaasjo, President & CEO Stuart Lee, SVP & CFO April 30, 2012 1
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 losses, and gains on acquisitions and disposals (EBITDA), (ii) funds from operations, (iii) funds from operations excluding non-controlli
Slide 4: Q1 Summary
Q1 Summary Excellent operating performance with average plant availability of 97% High availability in the mid-upper 90% range across the fleet with the exception of Genesee 3 (G3) G3 came back on-line in mid-January after a two-month outage Q1 financial results were in line with expectations, d
Slide 5: Q1/12 Operating performance
Q1/12 Operating performance Plant Availability Q1/12 Q1/11 Alberta Genesee 3 84% 100% Excellent fleet commercial Keephills 3 95% N/A availability in Q1/12 with plants Joffre 94% 99% 97% average availability Clover Bar Energy versus 93% in Q1/11 Centre 98% 54% Alberta Genesee 1 97% 92% Achieved h
Slide 6: Q1 Financial performance, 2012 Outlook
Q1 Financial performance 2012 Outlook
Slide 7: Financial performance – Q1/12
Financial performance – Q1/12 $M, except per share amounts Q1/12 Q1/11 % Change Revenues and other income(1) $366 $376 (2.7%) EBITDA(1,2) $139 $72 93% Earnings per share $0.66 $0.06 n.m. Normalized earnings per share $0.46 $0.34 35% Funds from operations excluding non- $116 $83 40% controlling inter
Slide 8: AB commercial plants & portfolio optimization
AB commercial plants & portfolio optimization EBITDA of $87M in Q1/12, up 129% over prior year Increase primarily driven by two components: Strong portfolio optimization performance driven by strategies to sell forward length at prices higher than the spot market compared to weak performance in Q1
Slide 9: AB commercial portfolio positions
AB commercial portfolio positions Alberta portfolio hedged positions for AB baseload plants and Sundance PPA (% sold forward) Apr-Dec 2012 2013 2014 Hedged positions (% hedged) 73% 20% 5% Average hedged prices Mid-$60/MWh Mid-$60/MWh Low-$60/MWh 9
Slide 10: Financing update
Financing update Launched Dividend Re-investment Plan (DRIP) in Jan/12 • Initial participation rate was ~28% for the Company’s Q1/12 dividend • Exceeds long-term participation rate expectation of 20-25% Filed a Canadian base shelf prospectus in Feb/12 to raise up to $2B collectively in common sh
Slide 11: 2012 Outlook
2012 Outlook Normalized EPS is now expected to be slightly under the low end of the $1.50 - $1.70 target range based on revised forecast power prices and spark spreads • Revised Alberta forward power prices of $68/MWh compared to original forecast of $74/MWh New England facilities are now expect
Slide 12: 2012 Corporate Priorities
2012 CORPORATE PRIORITIES 12
Slide 13: 2012 Corporate priorities
2012 Corporate priorities Deliver strong operational performance from a young, well- maintained generation fleet Operational targets Performance measure 2012 target Status Plant availability average ≥ 91% On track Sustaining capex ≤ $108M On track • Plant maintenance $80M • Genesee mine maintenance
Slide 14: 2012 Corporate priorities (cont'd)
2012 Corporate priorities (cont’d) Enhance value for shareholders by delivering accretive growth from current developments Development and construction targets Performance measure 2012 target Quality Wind and Halkirk wind projects Continue on time and on budget with CODs expected in Q4/12 Port Dover
Slide 15: 2012 Corporate priorities (cont'd)
2012 Corporate priorities (cont’d) Deliver on substantial growth in cash flow and normalized EPS Normalized EPS Funds from operations $2.00 $500 $1.50 $1.50 – $1.70 $400 $380 – $420M $300 $1.00 $0.46 $200 $0.50 $116 $100 $0.00 $0 Q1 2012 T Q1 2012 T Cash flow per share Dividend coverage ratio $5.00
Slide 16: Questions?
QUESTIONS? 16
Slide 17: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation 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 may not be appropriate for othe
Slide 18: Investor Relations contacts
Investor Relations contacts Randy Mah Senior Manager (780) 392-5305 rmah@capitalpower.com www.capitalpower.com Chris Williams Senior Analyst (780) 392-5105 cwilliams@capitalpower.com www.capitalpower.com 18