Otter Tail Corporation · NASDAQ:OTTR
Otter Tail — Investor Presentation (August 2004)
30 slides from Otter Tail's investor presentation, August 2004
Slide 1: Minnesota Utility Investors Regional Meeting
Minnesota Utility Investors Regional Meeting John Erickson, President & CEO
Slide 2: Topics
Topics z Who We Are z Operating Company Review z Otter Tail Power Company z Financial Performance z Stock Performance z Profiles: Idaho Pacific, ShoreMaster 2
Slide 3: Forward-looking Statements
Forward-looking Statements Except for historical information, all other information provided in this presentation consists of “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These “forward- looking statements” are subject to risks and uncertai
Slide 4: Otter Tail Corporation business segments
OTTERTAIL CORPORATION MANUFACTURING aaa rane aes es MANUFACTURING. INC. Better Through Design VINYLTECH Vil PVC *PIPE OTHER BUSINESSES Construction Staveces wovsees invowmariow Srsrems
Slide 5: Health Services
Health Services z Sales and Service of Diagnostic Medical Equipment z Philips Dealer – 5-State Region z Headquarters – Fargo, ND z Primarily Mobile Imaging z CT, MRI, PET, etc. z Regional Offices: Osseo, MN; Sioux Falls, SD; Houston, TX DMS Health Group: 431 Employees 5
Slide 6: Manufacturing
Manufacturing z Metal Fabrication – Stamping, Machining, Tube Bending z Detroit Lakes, MN – 345 Employees z Frame Straightening Equipment z Alexandria, MN – 48 Employees z Wind Tower Manufacturing z West Fargo, ND – 130 Employees 6
Slide 7: Manufacturing
Manufacturing z Waterfront Equipment z Fergus Falls, MN – 277 Employees z Structural Steel Fabrication z St. George, UT – 144 Employees z Thermoformed Plastic Products z Minneapolis, MN – 204 Employees 7
Slide 8: Plastics
Plastics z PVC and Polyethylene Pipe z Fargo, ND – 114 Employees z PVC Pipe Production z Phoenix, AZ – 64 Employees 8
Slide 9: Other Businesses
Other Businesses z Flatbed Trucking z Fargo, ND – 150 Employees z Mechanical and Prime Contracting z Kansas City, MO – 131 Employees z Electrical Contracting and Construction z Moorhead, MN – 338 Employees z Telecommunications z Parkers Prairie, MN – 24 Employees 9
Slide 10: Electric
Electric z Electric Utility z Fergus Falls, MN – 699 Employees z 3 Coal-Fired Steam Plants Solway - CT z 6 Hydroelectric Plants Edgeley- z 4 Combustion Turbine ---Wind Generators z Wind Energy, Other 10
Slide 11: Priorities
Priorities z Reliability z Price z Customer Service z Safety 11
Slide 12: Reliability
Reliability 20-Year Rolling Average Outage 90 Minutes of outage per 90 88 86 87 87 customer 87 86 87 86 84 86 85 82 80 82 78 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 12
Slide 13: Price
Price z Last Rate Increase: z MN – 1986 z SD – 1986 z ND – 1982 z 2003 Average Residential Rate: z Otter Tail Power Company – 6.63 cents per kwh z National – 8.71 cents per kwh 13
Slide 14: Customer Service
Customer Service z High Customer Satisfaction Ratings zRaising the Bar: The Power of One 14
Slide 15: Safety
Safety OSHA Reportable Injuries 9 8 Rate per 100 Employees 7 6 EEI 5 4 3 OTP 2 1 0 1997 1998 1999 2000 2001 2002 2003 15
Slide 16: Financial and Stock Performance
Financial and Stock Performance 16
Slide 17: Net Earnings by Segment
Net Earnings by Segment 2003 Earnings 2002 Earnings Manuf Other Health 10% (7)% Manuf Other 6% 10% (1)% Health 10% Plastics 5% Electric Electric Plastics 69% 86% 12% 17
Slide 18: 2003-2004 In Review
2003-2004 In Review z Challenging Times z Recap z Revenues Up z Earnings Down z Dividends Up z Stock Price Flat 18
Slide 19: 2003-2004 In Perspective
2003-2004 In Perspective z Earnings Down z OTPCO – Strong Year in 2003 z Solid Balance Sheet z Strong Credit Ratings z Good Returns on Capital z Stock Performance – Mixed 19
Slide 20: Stock Return and Performance
Stock Return and Performance Growth of $1,000 investment in OTTR Common Stock made Dec. 31, 1993 Value on July 30, 2004 Shareholder value has grown at a compounded $3,000 annual rate of approximately 8.3% over the past 10 ½ years. $2,406 $2,500 $2,000 $1,500 $1,000 $500 $- 1994 1995 1996 1997 1998 1
Slide 21: Proxy Graph Extended to 6/30/2004
Proxy Graph Extended to 6/30/2004 Comparison of Cumulative Total Return Between OTC, EEI and NASDAQ 12/31/1998 - 06/30/2004 $250 $200 OTC $150 EEI $100 NASDAQ $50 $0 1998 1999 2000 2001 2002 2003 06/30/04 Assumes $100 invested on 12/31/98 21
Slide 22: Dividend History
Dividend History Dividends Per Share $1.10* $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2004 *2004 Indicated Annual Rate 22
Slide 23: Profile – Idaho Pacific Holdings, Inc.
Profile – Idaho Pacific Holdings, Inc. z Potato Processing - Dehydrated z Primary Products: Granules, Flakes and Flour z Customers: Snack Food, Foodservice, Baking z 380 Employees at 3 Plant Locations 23
Slide 24: Idaho Pacific Plant Locations
Idaho Pacific Plant Locations Idaho Pacific Corp. Ririe, Idaho Idaho Pacific CO Corp. Center, Colorado AgraWest Foods Prince Edward Island, Canada 24
Slide 25: Good Fit For Otter Tail Corporation
Good Fit For Otter Tail Corporation Idaho Pacific Holdings: z Sound Strategy z Entrepreneurial Leadership Retained z Meets Financial Criteria z Right Size: $46 Million Revenues 25
Slide 26: Profile – ShoreMaster, Inc.
Profile – ShoreMaster, Inc. z Waterfront Equipment Manufacturer z Fergus Falls, MN and Camdenton, MO z Northern and Southern Tiers, Coast to Coast z 277 Employees 26
Slide 27: ShoreMaster Products
ShoreMaster Products z Residential Docks and Equipment z Commercial Marina Systems 27
Slide 28: Ongoing Growth
Ongoing Growth z New Fergus Falls Production Facility z Camdenton Rotomolding Facility z New Product Development 28
Slide 29: In Closing
In Closing Strategy + People 29
Slide 30: Thank You!
FT OTIERTAIL W CORPORATION Thank You!