Slide 1: A Gas Fueled Milestone
A Gas Fueled Milestone 2024 Q2 | Analyst presentation
Slide 2: Agenda
Agenda Business Highlights | Avik Dey - President & CEO Financial Review | Sandra Haskins - SVP, Finance & CFO AB Regulatory Update | Pauline McLean - SVP, External Relations and Chief Legal Officer Closing Remarks | Avik Dey - President & CEO Q&A | Management 2
Slide 3: Forward-looking information and Non-GAAP financial measures
Forward-looking Non-GAAP financial information measures and ratios Cautionary statement Capital Power uses (i) earnings before net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance Certain information in this presentation and r
Slide 4: Territorial Acknowledgement
Territorial Acknowledgement In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the Indigenous Peoples of Turtle Island, or North America. Capital Power’s head office is located within the trad
Slide 5: Q2 2024 Highlights
Q2 2024 Highlights Executing on our strategic focus Deliver 9 • Generation of ~9 TWh across our strategically positioned fleet ~ Terawatt • Newly acquired U.S. assets continue to perform, enhancing diversification • Asset maintenance on track; ~50% of budgeted outage days completed hours Generated B
Slide 6: Genesee Repowering – Project Update
Genesee Repowering – Project Update Increased capacity and significantly lower carbon intensity Genesee Capacity (for each Unit) Complete Ongoing Legacy Simple Cycle Combined Repowering 1 • Simple cycle COD – units 1 & 2 complete dual fuel Commercial Cycle Completion capacity Operations Completion U
Slide 7: Ontario Assets
Ontario Assets Stable operations; construction proceeding Goreway generation on BESS at Goreway and York Uprate projects at Goreway pace for record year are mobilized for and York on-time and despite turnarounds construction in Q3 2024 favorable relative to budget 7
Slide 8: U.S. Asset Update and U.S. Portfolio Contribution
U.S. Asset Update U.S. Portfolio Contribution Generation by facility geography M&A driving portfolio diversification 34% • ~52% of generation in Q2 2024 39% Q2 2023 47% Q2 2024 • ~43% of adjusted EBITDA in Q2 2024 52% Alberta Rest of Canada U.S. 13% Strong fundamentals driving performance: 14% • Str
Slide 9: U.S. Asset Highlights
U.S. Asset Highlights Record U.S. generation achieved Total U.S. Portfolio: through M&A and strong demand Q2 ~4.5TWh (~87% thermal); 10 Facilities 39 ~ 4,175 MW Generation - MCV (GWh) ~ 1550 . TWh 1450 Generation Capacity Q2 2024 Thermal Generation 1350 1250 U.S. Thermal Capacity and Acreage 1150 6
Slide 10: Q2 2024 Results - Overview
Q2 2024 Results - Overview Cash flows impacted by outages and lower captured prices in Alberta Adjusted EBITDA is lower year over year due to: $ 705 M Revenues and $ 323 M Adjusted • • Lower generation and captured power prices in Alberta Full recognition of off-coal compensation (end of 2023) other
Slide 11: H1 2024 Results - Overview
H1 2024 Results - Overview Cash flows impacted by outages and lower prices in Alberta H1 Adjusted EBITDA is lower year over year due to the same factors impacting Q2 results AFFO is lower driven by: $ 1,621M Revenues and $ 602 M Adjusted other income(1) EBITDA • Lower adjusted EBITDA • Higher sustai
Slide 12: Q2 2024 Results – Adjusted EBITDA Breakdown
Q2 2024 Results – Adjusted EBITDA Breakdown U.S. diversification reduces adjusted EBITDA volatility Adjusted EBITDA1 $166 $157 $122 $88 $80 $82 (27%) +78% +3% Alberta U.S. Rest of Canda Q2 2023 Q2 2024 1. Adjusted EBITDA is a non-GAAP financial measure. 12
Slide 13: Strong historical dividend per share growth
Strong historical dividend per share growth: 6% Dividend increase 2.61 1.26 Dividend per share 7% CAGR 2013 2024 11th consecutive annual dividend increase 13
Slide 14: Hybrid bond issuance
Hybrid bond issuance First 30-year hybrid in Canada • Cost-effective financing with economic savings of ~$3.4M per annum (initial 10 years)1 • Effective interest rate of ~7.7%2 450 000 000 $ , , CAN 8.125% 30NC10 Initial reset: June 5, 2034 | Maturity date: June 5, 2054 1. On an after-tax basis rela
Slide 15: Q2 2024 YTD vs. 2024 Targets
Q2 2024 YTD vs. 2024 Targets Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) 93% 92% YTD $770 to $870 $1,310 to $180 to $1,410 $200 $602 YTD $320 YTD $81 YTD Q2/24 YTD 2024T Q2/24 YTD 2024T Q2/24 YTD 2024T Q2/24 YTD 2024T • The updated adjusted EBITDA guidance range is dri
Slide 16: Restructured Energy Market (REM) Overview
Restructured Energy Alberta Market (REM) Regulatory Overview Update On July 11, 2024, the Minister of Affordability and Utilities announced policy decisions re: technical design of the Restructured Energy Market (REM). Specific policy direction: • Introduction of day ahead market • Price to be dete
Slide 17: Key Takeaways for Alberta
Key Takeaways Alberta for Alberta Regulatory • Preserves Alberta’s competitive Energy Only Market Update • Enhances price and operational certainty with day ahead market • Competition based ensuring price signals are based on market participant’s competitive offers • Improves upon interim market rul
Slide 18: Key Takeaways for Capital Power
Key Takeaways for Alberta Capital Power Regulatory Trading & origination portfolio Update • Continued ability to actively trade power Investment certainty for CPX • Similar structure to existing market design • Supports continued investment in Alberta market opportunities (e.g., data centres) Albert
Slide 19: Questions & Answers
Questions & Answers 19
Slide 20: Forward-looking information
Forward-looking information Forward-looking information or statements included in this MD&A are provided to inform our shareholders and • electricity and other energy and carbon prices; potential investors about management’s assessment of Capital Power’s future plans and operations. This • performan
Slide 21: Investor Relations
Investor Relations Roy Arthur VP, Investor Relations capitalpower.com 1-403-736-3315 investor@capitalpower.com 21