Algonquin Power & Utilities Corp. · TSX:AQN
Algonquin Power & Utilities — Q3 2021 Earnings Presentation
23 slides from Algonquin Power & Utilities's earnings presentation, Nov 12, 2021
Slide 1: Q3 2021 Earnings Conference Call
Q3 2021 Earnings Conference Call November 12, 2021 10:00 a.m. ET
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain written statements included herein and/or oral statements made in connection with the presentation contained herein constitute “forward-looking information” within the meaning of applicable securities laws in each of the provinces of Canada and the respective polic
Slide 3: Speakers and Agenda
Speakers and Agenda Arun Banskota Arthur Kacprzak Amelia Tsang President and Chief Financial Officer Vice President, Chief Executive Officer Investor Relations Introductory Remarks…………….………………............................................. Amelia Tsang Q3 2021 Strategic Achievements.……................
Slide 4: Strategic Achievements
Q3 2021 Earnings Conference Call Strategic Achievements
Slide 5: Strategic Achievements
Strategic Achievements Solid Key Financial Metrics • Q3 2021 Adjusted EBITDA1 of $252.0 million – a 27% year-over-year increase • Q3 2021 Adjusted Net EPS1 of $0.15 – in line with Q3 2020 • Growth through acquisitions and related investment opportunities No material earnings impact by the pandem
Slide 6: Regulated Services Group - Growth
Regulated Services Group - Growth • Agreement to Acquire Kentucky Power and AEP Kentucky Transmission Company, Inc. (the “Acquisition”) • Provides services to ~228,000 active customer connections in twenty Eastern Kentucky counties • Total purchase price of ~$2.8 billion including assumption of ~$1.
Slide 7: Strategic Rationale – Greening the Fleet
Strategic Rationale – Greening the Fleet • Significant opportunities to transition the existing fossil fuel generation with renewable sources • Expiring Rockport unit power agreement and expected transfer or retirement (for rate-making purposes in Kentucky) of Kentucky Power’s 50% ownership interest
Slide 8: Strategic Rationale – ROE Playbook
Strategic Rationale – ROE Playbook • Successful track record of identifying, securing regulatory approvals and closing acquisitions • Extensive experience in managing the integration of multi-modality utilities • Strive to share learnings and best practices among our utilities with aim of driving co
Slide 9: Regulated Services Group – Operational Excellence
Regulated Services Group – Operational Excellence • Safety and reliability key priorities • Achieved milestone of over 650 days and over 9 million hours without a single lost time injury • Caldor Fire Update • Operations have returned to normal • Continue to evaluate investments needed to support sy
Slide 10: Three Pillar Foundation – Sustainability
Three Pillar Foundation – Sustainability • Net-Zero Target for Scope 1 & 2 Emissions by 2050 • Extension of Company’s decades’ long commitment to sustainability • Environmental stewardship at forefront of Company’s strategic direction • Track Record of Environmental Stewardship • Empire: • Reduced e
Slide 11: Financial Performance
Q3 2021 Earnings Conference Call Financial Performance
Slide 12: Financial Performance
Financial Performance Three Months Ended September 30 All figures are in $ millions except per share data 2021 2020 Variance Adjusted Net Earnings1 97.6 88.1 11% Per share 1 0.15 0.15 --% Adjusted EBITDA1 252.0 197.9 27% Adjusted Funds from Operations1 170.2 148.0 15% Dividend per share 0.1706 0.155
Slide 13: Financial Update – Kentucky Power Acquisition Financing
Financial Update – Kentucky Power Acquisition Financing • Financing plan is designed to maintain Algonquin’s investment grade credit ratings • Concurrent C$800M bought deal common share offering; offering is expected to satisfy the common equity needs for the Acquisition • Remainder of the cash purc
Slide 14: Financial Update
Financial Update • Expected Capital Deployment in 2021 of Over $4 billion On Track • Total capital deployed as of end Q3 2021: ~$3.4B • Delivered ~1,400 MW since Aug 2020 of new renewable generation capacity from 2020 construction pipeline • 2021 Adjusted Net EPS Guidance Update • Expect to continue
Slide 15: Advancing our Strategic Plan
Q3 2021 Earnings Conference Call Advancing our Strategic Plan
Slide 16: Advancing our Strategic Plan
Advancing our Strategic Plan Well positioned to contribute and benefit from decarbonization transition • Regulated Services Group • Renewable Energy group Identified Pipeline of Prospective 3.4 GW Greenfield Opportunities • Not included in $9.4 billion capital investment plan from 2021 through 2
Slide 17: Concluding Remarks
Concluding Remarks Continue to successfully execute on Three strategic pillars provide key Strive to create long-term largest construction program in foundation as we continue to build shareholder value through delivery Company’s history the business of earnings and dividend growth Robust investment
Slide 18: Q&A
Q&A =. Algonquin | Liberty: 5 3 =
Slide 19: Appendix
Q3 2021 Earnings Conference Call Appendix
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA to Net Earnings The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted EBITDA an
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Adjusted Net Earnings to Net Earnings The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Net
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Adjusted Funds from Operations to Cash Flows from Operating Activities The following table is derived from and should be read in conjunction with the consolidated statement of operations and consolidated statement of cash flows. This supplementary disclo
Slide 23: Corporate Information and Contact Information
Corporate Information Head Office Greater Toronto Area, Ontario Toronto Stock Exchange AQN, AQN.PR.A, AQN.PR.D New York Stock Exchange AQN, AQNA, AQNB, AQNU Shares Outstanding* 627,795,347 Share Price* $14.43 Market Capitalization* $9.1 B Dividend** $0.6824 per share annually * Shares outstanding, c
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