Slide 1: Q1/16 Analyst Conference Call
CAPITAL POWER Q1/16 Analyst Conference Call April 25, 2016 Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO 1
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 gains or losses, finance expense from joint venture, and gains or losses on disposals (adjusted EBITDA), (ii) funds from operations, (iii
Slide 4: Q1/16 Highlights
Q1/16 Highlights Solid operating and financial performance in-line with expectations • 97% average plant availability Terminated our Buyer role for Sundance C PPA on Mar 24/16 • Increased Alberta commercial hedge positions in 2017-20 • Expected to produce positive impacts to Adjusted EBITDA Bl
Slide 5: Alberta Climate Leadership Plan
Alberta Climate Leadership Plan Updates Alberta government appointed Terry Boston as the coal phase-out facilitator to oversee the transition away from coal-fired generation by 2030 Facilitator tasked with presenting options that will strive to maintain the reliability of Alberta’s electricity g
Slide 6: Q1/16 Operating performance
Q1/16 Operating performance Plant availability Q1/16 Q1/15 Alberta commercial Genesee 3 99% 100% Excellent operating plants Keephills 3 90% 100% performance with Clover Bar 99% 97% average availability Joffre 89% 99% of 97% Shepard 100% 80% Halkirk 99% 99% Q1/16 performance Alberta contracted Ge
Slide 7: Q1/16 Financial review
Q1/16 Financial review Generated $109M of FFO, comparable to $108M in Q1/15 Normalized EPS of $0.33 compared to $0.32 in Q1/15 Despite a 38% decline in average Alberta power prices in Q1 year- over-year, hedging program captured a 189% higher realized average power price versus spot price Port
Slide 8: Financial performance – Q1/16
Financial performance – Q1/16 $M, except per share amounts Q1/16 Q1/15 Change Revenues $341 $358 (5%) Adjusted EBITDA (before mark-to-market)(1,2) $128 $116 10% Basic earnings (loss) per share $(0.11) $0.41 (127%) Normalized earnings per share $0.33 $0.32 3% Funds from operations $109 $108 1% Additi
Slide 9: Impacts from Sundance PPA termination
Impacts from Sundance PPA termination Alberta commercial hedging profile Termination of our Buyer role in Sundance C PPA has significantly increased our baseload hedging profile from 2015 year-end Significant forward sales resulting from increased marketing liquidity due to the PPA terminations
Slide 10: Strong financial coverage
Strong financial coverage Operating margin(1) to financial obligations(2) and dividends(3) 150% Contracted + merchant ($70/MWh) 140% 130% 120% Contracted + merchant (Forwards(4)) 110% Contracted + merchant ($40/MWh) 100% Contracted margin 90% Minimum AB power prices required to cover financial 80% o
Slide 11: Q1/16 performance versus annual targets
Q1/16 performance versus annual targets Operational and financial targets Plant availability Sustaining capex ($M) 97% $65 94% $8 Q1/16 2016T Q1/16 2016T Plant operating & Funds from operations ($M) maintenance expenses ($M) $380 - $430 $200 - $220 $52 $109 Q1/16 2016T Q1/16 2016T On-track to meet 2
Slide 12: 2016 Disciplined growth targets
2016 Disciplined growth targets Genesee 4&5 (Alberta) Target Q1/16 Status Construction timing based on clarity Awaiting further clarification on with respect to impact of decisions implementation of CLP and impacts from the Alberta Government’s on current Alberta assets Climate Leadership Plan a
Slide 13: 2016 Disciplined growth targets
2016 Disciplined growth targets New developments Target Q1/16 Status Execute a contract for the Bloom Wind (178 MW project in output of a new development Kansas) • 10-year fixed price contract covering 100% of the output • Cost of $358M (CDN$) • construction begins in Q3/16 with COD targeted in
Slide 14: Questions?
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Slide 15: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation and in responses to questions 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 m
Slide 16: Investor Relations Contact
Investor Relations Contact Randy Mah Head Office Senior Manager 10th Floor (780) 392-5305 10423 – 101 Street NW rmah@capitalpower.com Edmonton, AB T5H 0E9 www.capitalpower.com