Otter Tail Corporation · NASDAQ:OTTR
Otter Tail — Minnesota Utility Investors Annual Meeting 2024
17 slides from Otter Tail's conference presentation, Oct 15, 2024
Slide 1: Minnesota Utility Investors Annual Meeting
Minnesota Utility Investors Annual Meeting October 15, 2024
Slide 2: Forward-Looking Statement
Forward-Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “can,” “could,” “estimate,” “expe
Slide 3: Company Overview
Company Overview MANUFACTURING PLATFORM ELECTRIC PLATFORM MANUFACTURING SEGMENT PLASTICS SEGMENT PLATFORM HIGHLIGHTS Electric Platform Manufacturing Platform • Attractive rate base growth • Enhanced consolidated ROE • Constructive regulatory environments • Organic growth opportunities • Affordable c
Slide 4: OTTR Investment Targets
OTTR Investment Targets Balanced Growth and Income Total Shareholder Return Strategy 8-10% Dividend Growth • Attractive rate base growth at our electric utility with a proven track Rate record of converting rate base growth into earnings growth 5-7% • Manufacturing and Plastics Long-Term EPS Dividen
Slide 5: Earnings Per Share Growth
Earnings Per Share Growth $7.00 $6.92 $6.78 26.1% Consolidated EPS (5YR CAGR) $4.23 $2.17 $2.34 8.3% $2.53 $2.47 Consolidated EPS $2.12 w/o Plastics* $1.89 $1.66 $1.67 (5YR CAGR) 2019 2020 2021 2022 2023 2024 Guidance Midpoint *Consolidated EPS w/o Plastics is a non-GAAP financial measure management
Slide 6: Electric Platform
Electric Platform OrEnian POWER COMPANY
Slide 7: Electric Operations
Electric Operations Operating Revenue (in millions)* • Vertically integrated, regulated utility with generation, transmission and $549.7 $528.4 distribution facilities $517.0 • Serve more than 133,000 residential, commercial and industrial customers • Service area encompasses approximately 70,000 sq
Slide 8: Rate Base Growth
Rate Base Growth Rate Base $1.3B of Capital Spending from 2024 to 2028 $ in billions Renewables, 37% Existing Rates, 33% Rate Case, 9% $2.52 $2.35 Capital Recovery $2.20 Spending Mechanism Other, 14% $2.08 $1.89 $1.74 Transmission, 34% Distribution, 15% Riders, 58% 7.7% e C AGR of Bas 2018 to 2023 R
Slide 9: Wind Repowering
Wind Repowering Project Wind Repowering Description Equipment upgrades at wind facilities Est. Completion Date 2024 and 2025 Otter Tail Power Investment ~ $230 million Recovery Mechanism Riders Project Summary • Develop and perform equipment upgrades at the Langdon, Ashtabula, Luverne and Ashtabula
Slide 10: MISO Long Range Transmission Planning (LRTP)
MISO Long Range Transmission Planning (LRTP) Project MISO LRTP Description LRTP Tranche 1 Transmission Projects Est. Completion Date 2032 Otter Tail Power Investment ~ $420 million Recovery Mechanism MISO Tariff Project Summary • MISO's approved Long Range Transmission Plan includes two 345 kV proje
Slide 11: Affordability
Affordability Average Summer Residential Rate in Cents per kWh Otter Tail Power's 2023 rates: 16.0 15% below regional average USA 30% below national average 14.6 13.6 13.2 13.2 13.1 We expect to continue to keep customer bills Regional 13.1 low through: 12.7 12.4 • Inflation Reduction Act tax credit
Slide 12: Manufacturing Platform
Manufacturing Platform we @®) VINYLTECH TO. PLASTICS Vill BT D northern pipe PVCePIPE products 12
Slide 13: Manufacturing Operations
Manufacturing Operations Operating Revenue (in millions) • Contract metal fabrication – stamping, machining, tube bending, tool & die, laser cutting, welding, painting, assembly. A one stop shop for customer needs $398.0 $402.8 $389.6 • Growth opportunities with existing customer base and expansion
Slide 14: Manufacturing Locations
Manufacturing Locations 14
Slide 15: Plastics Operations
Plastics Operations Operating Revenue (in millions) $512.5 • Manufactures and sells polyvinyl chloride (PVC) pipe to $455.2 distributors. Pipe is used in municipal water, rural water, $418.0 wastewater and storm drainage systems • Plants located in Fargo, ND & Phoenix, AZ • Approximate production ca
Slide 16: Plastics Locations
Plastics Locations Northern Pipe Products (NPP) Located in Fargo, North Dakota • 18 US states served, including: Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Texas, Washington, Wisconsin and Wyoming • 4 Cana
Slide 17: www.ottertail.com
S OTIERTAIL W CORPORATION www.ottertail.com
Otter Tail — Minnesota Utility Investors Annual Meeting 2024 on 6ix