Capital Power Corporation · TSX:CPX
Capital Power — Q3 2012 Earnings Presentation
20 slides from Capital Power's earnings presentation, Nov 1, 2012
Slide 1: Capital Power Analyst Conference Call Q3/12 Review
CAPITAL POWER ANALYST CONFERENCE CALL Q3/12 REVIEW Brian Vaasjo, President & CEO Stuart Lee, SVP & CFO November 1, 2012 Halkirk, AB, Sep/12
Slide 2: Forward-looking information
Forward-looking information Cautionary statement Certain information in this presentation and in responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material fac
Slide 3: Non-GAAP financial measures
Non-GAAP financial measures The Company uses (i) earnings before finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange losses, and gains on acquisitions and disposals (EBITDA), (ii) funds from operations, (iii) funds from operations excluding non-controlli
Slide 4: Q3/12 Summary
Q3/12 Summary Financial performance was in line with our expectations Q3/12 normalized earnings of $0.55 per share increased 28% YOY • Average AB spot power price was $78/MWh in Q3/12, compared to $50/MWh in the first half of the year • Record EBITDA contribution from the AB commercial plants and
Slide 5: Quality Wind set to commence COD
Quality Wind set to commence COD 142 MW facility in B.C. expected to begin commercial operation in early November Final costs are expected to be ~10% below the $455M budget Lower project costs primarily due to strong project management including the impact of up-front planning and project exec
Slide 6: Halkirk Wind project update
Halkirk Wind project update 150 MW facility in AB expected to begin commercial operation on time in mid- Dec/12 Project tracking slightly under $357M budget 100% of foundations installed Majority of turbine components fully erected on foundations Substation energized in Oct/12 6
Slide 7: Q3/12 Operating performance
Q3/12 Operating performance Strong performance across the fleet Plant Availability Q3/12 Q3/11 Alberta Genesee 3 100% 100% Average availability of 97% commercial plants Keephills 3 in Q3/12 unchanged from 100% 100% Q3/11 Joffre 98% 99% Clover Bar 97% 91% A trial R&D project at Energy Centre Gene
Slide 8: Hurricane Sandy
Hurricane Sandy Hurricane Sandy had no material impact to operations Bridgeport facility was pre-emptively taken offline as a safety precaution from Oct 29-30/12 No other impact on our North East U.S. and North Carolina plants Hurricane Sandy – Nasa/Getty Images 8
Slide 9: Q3 Financial Performance / 2012 Outlook
Q3 FINANCIAL PERFORMANCE 2012 OUTLOOK
Slide 10: Financial performance – Q3/12
Financial performance – Q3/12 $M, except per share amounts Q3/12 Q3/11 % Change Revenues and other income(1) $376 $322 17% EBITDA(1,2) $145 $119 22% Earnings per share $0.55 $0.29 90% Normalized earnings per share $0.55 $0.43 28% Funds from operations excluding non- $128 $116 10% controlling interes
Slide 11: Financial performance – YTD 2012
Financial performance – YTD 2012 YTD YTD $M, except per share amounts % Change 2012 2011 Revenues and other income(1) $1,014 $1,048 (3.2%) EBITDA(1,2) $356 $264 35% Earnings (loss) per share $0.65 ($0.27) - Normalized earnings per share $1.06 $0.87 22% Funds from operations excluding non- $298 $264
Slide 12: AB commercial plants & portfolio optimization
AB commercial plants & portfolio optimization Record EBITDA of $113M in Q3/12 was 57% higher YOY Q3 2012 position was largely sold forward at higher rates than 2011 and the Clover Bar peaking units were effectively dispatched to capture upside in pricing Reflects a full quarter of contributions
Slide 13: 2012 Outlook
2012 Outlook If power prices in Q4/12 remain consistent with Q3/12 levels, Capital Power remains on track to meet its revised 2012 annual financial targets • Normalized earnings per share expected to be slightly under the low end of the target range of $1.50 to $1.70 per share 31% unhedged Alber
Slide 14: 2012 Corporate Priorities
2012 CORPORATE PRIORITIES 14
Slide 15: 2012 Corporate priorities
2012 Corporate priorities Deliver strong operational performance from a young, well- maintained generation fleet Operational targets Performance measure 2012 target Q3 YTD Results Status Plant availability average ≥ 91% 92% On track Sustaining capex ≤ $108M $65M On track • Plant maintenance $80M • G
Slide 16: 2012 Corporate priorities (cont'd)
2012 Corporate priorities (cont’d) Enhance value for shareholders by delivering accretive growth from current developments Development and construction targets Performance measure 2012 target Status Quality Wind project Continue on budget $455M and COD expected in early on time with CODs in Q4/12 No
Slide 17: 2012 Corporate priorities (cont'd)
2012 Corporate priorities (cont’d) Deliver on growth in cash flow and normalized EPS Normalized EPS (NEPS) Funds from operations $2.00 $500 $1.50 $1.50 – $1.70 $400 $380 – $420M $298 $1.06 $300 $1.00 $200 $0.50 $100 $0.00 $0 Q3 YTD 2012 T Q3 YTD 2012 T Cash flow per share Dividend coverage ratio $5.
Slide 18: Questions?
QUESTIONS? 18
Slide 19: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for othe
Slide 20: Investor Relations Contacts
Investor Relations Contacts Randy Mah Chris Williams Senior Manager Senior Analyst (780) 392-5305 (780) 392-5105 rmah@capitalpower.com cwilliams@capitalpower.com 20