Northland Power Inc. · TSX:NPI
Northland Power — Shareholder Meeting (June 2017)
26 slides from Northland Power's shareholder meeting presentation, Jun 5, 2017
Slide 1: Annual General Meeting
Annual General Meeting Agenda 1. Formal meeting June 5, 2017 2. Management presentation 3. Q&A period 0
Slide 2: Formal Meeting
Formal Meeting Call to Order Notice of Meeting Quorum and Voting Procedure Presentation of Financial Statements and Auditor’s Report Nomination / Election of Directors Re-appointment of Auditors Termination of Formal Meeting 1
Slide 3: Board Members
Board Members James C. Temerty The Right Honourable Linda L. Bertoldi Chairman John N. Turner, Q.C. Marie Bountrogianni Barry Gilmour Russell Goodman 2
Slide 4: Annual General Meeting Agenda
Annual General Meeting Agenda 1. Formal meeting June 5, 2017 2. Management presentation 3. Q&A period 3
Slide 5: Forward-Looking Statements Disclaimer
Forward-Looking Statements Disclaimer This written and accompanying oral presentation contains certain forward-looking statements which are provided for the purpose of presenting information about management’s current expectations and plans. Readers are cautioned that such statements may not be appr
Slide 6: Evolution of Northland
Evolution of Northland Grown from a local Canadian-based developer to a full life-cycle International Power Producer Total Shareholder Return Total Gross (Since IPO, %)1 Capacity (MW) 1,200% Renewables (MW) 1,070% 3,000 1,000% Clean Gas and Biomass (MW) 2,480 MW 2,500 1 Northland Returns (%) 800% 2,
Slide 7: Company Overview
Company Overview Growth-oriented international power producer with 30-Year track record 27 operating facilities with a gross capacity of 2,119MW (net 1,754MW) Well-diversified, modern fleet of high-quality assets Enterprise value over $10.6 billion World class and proven operating, develop
Slide 8: Northland's Successes in the Past Year
Northland’s Successes in the Past Year Financial • Another year of robust financial performance that surpassed the Results previous year • Canadian portfolio: Grand Bend commercial operations • European portfolio: Construction • Gemini commence full commercial operations and • Significant advancemen
Slide 9: Northland is an Offshore Wind Leader
Northland is an Offshore Wind Leader Northland’s transformation into a global player in power generation Installed the most MW in 2016 in the Europe offshore wind market Northland has captured new opportunities in jurisdictions and technologies that leverage our expertise and is consistent wit
Slide 10: With Our Strong and Growing Financial Results…
With Our Strong and Growing Financial Results… Key Financial Metrics 2012 2016 CAGR F/(U) Revenue $362M $1,100M 32% ↑ Adjusted EBITDA $179M $627M 37% ↑ Free Cash Flow $64M $242M 40% ↑ Free Cash Flow / Share $0.55 $1.40 26% ↑ Over the last 5 years, financial Metrics continue to demonstrate significan
Slide 11: …We Continue To Deliver Superior Shareholder Returns
…We Continue To Deliver Superior Shareholder Returns Shareholder Return Comparison 1200% Total Annual Shareholder Return1 Merger Northland Power 1000% 1-year 12% 5-year 12% 800% 10-year 13% 600% Since inception 13% Peer Group2 400% IPO TSX 200% 0% April '97 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Slide 12: Strategic Review Overview
Strategic Review Overview Northland Exploring Strategic Alternatives In July 2016, Northland announced a strategic review led by its Board of Directors, experienced advisors CIBC and J.P. Morgan and the management team The objective of the review is to assess whether Northland’s current business
Slide 13: World Class Offshore Projects
World Class Offshore Projects Gemini Nordsee One 600 MW 332 MW COD: April 2017 COD: End of 2017 60% Interest 85% Interest COD: End of 2019 Project Capital Costs: Over €5B 100% Interest DeBu Nordsee Gemini One DeBu 60 kilometers apart 252 MW With Gemini construction completed in April 2017, Managemen
Slide 14: Gemini – Project Overview
Gemini – Project Overview Gemini Location North Sea, Netherlands Capacity 600 MW (2 sites x 300 MW) Capital Cost €2.8 billion Northland 60% (360 MW) Interest Power Fixed price; 15-year contract Contract with the Dutch government 2015 2016 2017 Install Today Operations & Foundations Siemens (15-year
Slide 15: Nordsee One – Project Overview
Nordsee One – Project Overview Nordsee One Location North Sea, Germany Capacity 332 MW Capital Cost €1.2 billion Northland 85% (282 MW) Interest Power A fixed price Feed-in-tariff Contract subsidy for 10 years. 2015 2016 2017 Install Today Senvion (10 years) – Foundations Operations & guarantees hig
Slide 16: DeBu – Project Overview
CONSTRUCTION PERIOD DeBu – Project Overview Highlights DeBu Northland continues to expand its leading European Location North Sea, Germany Offshore Wind platform Capital deployment with returns consistent with Capacity 252 MW Northland’s investment criteria Opportunity to take advantage of les
Slide 17: DeBu – Project Overview (continued…)
DeBu – Project Overview (continued…) Construction Contract Overview DeBu (WTG Supplier) (BoP Contractor) Proposed Construction Contract Scope 1) MHI Vestas 2) Van Oord EPCI WTG Cable Supply & Grid Connection Borwin beta (AC/DC) Existing Supply & Install Install (TenneT - Not Project’s Responsibility
Slide 18: Construction Track Record
Construction Track Record Project Technology Ahead of Schedule Under Budget Iroquois Falls Gas Mont Miller Onshore Wind Jardin d’Éole Onshore Wind Thorold Gas Mont Louis Onshore Wind Spy Hill Gas North Battleford Gas Northland Solar Solar Cochrane Solar Solar 1 McL
Slide 19: Significant Development Opportunities
Significant Development Opportunities Total Opportunity in Target Markets Identify and qualify potential >150 GW markets with attractive fundamentals Development Pipeline Source and evaluate opportunities ~6,000MW that meet our investment criteria Advanced Development 252 MW Includes power contracts
Slide 20: Multiple Development Markets & Technologies
Multiple Development Markets & Technologies CANADA AND THE UNITED STATES EUROPE MEXICO AND LATIN AMERICA Market and Technology ASIA Assessment Criteria Long Term Revenue Stable Economic Conducive to Credit Worthy Off- Attractive Project Stability and Political Project Finance Takers Returns Jurisdic
Slide 21: Operations Highlights
Operations Highlights Operational assets with a gross generating capacity of 2,119MW (1,754 MW (net)) met or exceeded management’s expectations Overall availability of 95% across 27 operating facilities Zero lost time incidents Resolution of the Global Adjustment court case defending signifi
Slide 22: Adjusted EBITDA and Free Cash Flow/Share Growth
Adjusted EBITBA and Free Cash Flow /Share Growth The following chart illustrates Northland’s growing EBITDA and Free Cash Flow Per Share profile Adjusted EBITDA Growth Free Cash Flow Per Share Growth $1,400M Growth in Adjusted $3M Growth in $1,200M EBITDA: ~80% FCF/Share: ~60% $2M $1,000M $2M $800
Slide 23: Looking Ahead in 2017
Looking Ahead in 2017 Objectives • Continue to execute Nordsee One construction well Construction Projects • Achieve financial close and begin construction on DeBu Focus on Development • Continue to advance and secure high quality projects Pipeline • Diversifying across locations and technologies Op
Slide 24: Summary
Summary As we head into our 30th year, Northland’s will continue to focus on… Project Performance Robust Execution Optimization Growth …and delivering on our promises. 23
Slide 25: Annual General Meeting
Annual General Meeting Agenda 1. Formal meeting June 5, 2017 2. Management presentation 3. Q&A period 24
Slide 26: Investor Relations Contacts
Investor Relations Contacts Adam Beaumont Director of Finance 647.288.1929 Barb Bokla Manager, Investor Relations 647.288.1438 Sarah Charuk Director of Communications 647.288.1105 investorrelations@northlandpower.ca northlandpower.ca 25