Northland Power Inc. · TSX:NPI
Northland Power — Investor Presentation (November 2019)
42 slides from Northland Power's investor presentation, November 2019
Slide 1: Northland Power Investor Presentation November 2019
Northland Power Investor Presentation November 2019 TSX: NPI
Slide 2: 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 3: Northland Overview
Northland Overview • Global developer, owner and operator of sustainable infrastructure assets • Over 30 years of successfully developing, constructing and operating power projects over full lifecycle • Well-diversified, modern fleet of high-quality assets • Power Generating Assets: 2.4+ GW global f
Slide 4: Northland's Strategy
Northland’s Strategy 1 Creating high-quality projects underpinned by revenue contracts that deliver predictable cash flows Northland’s business strategy is centered on 2 Excellence in managing projects and establishing a operating facilities, always seeking significant global opportunities to enhanc
Slide 5: Focused on Sustainability
Focused on Sustainability • We seek to achieve a sustainable and prosperous future for all of our stakeholders • We will achieve this through: Inspired Top Clean & Green Prosperity for Workforce Developer Stakeholders • Prioritizing health and • Focusing on clean and green • Supporting sustainable s
Slide 6: Track Record of Strong Returns to Shareholders
Track Record of Strong Returns to Shareholders Annual Dividends (Distributions) Per Share (Unit) Since 1997 Total Shareholder Return2 Peer Group* S&P/TSX Capped Utilities Index Northland Power $1.20 2 1 $1.12 3 4 $1.10 $1.08 $1.08 $1.08 $1.08 $1.08 $1.08 $1.08 $1.08 $1.08 $1.08 $1.09 $1.05 $0.98 $0.
Slide 7: Track Record of Corporate Growth
Track Record of Corporate Growth 2013¹ 2018² Annual Growth Assets $3.0 B $10.5 B 28% Enterprise Value $4.1 B $12.7 B 25% Market Capitalization $2.2 B $5.3 B 19% Operating Capacity (Gross) 1,556 MW 2,429 MW 9% Operating Capacity (Net) 1,329 MW 2,014 MW 9% Share Price $15.48 $27.11 16%³ #
Slide 8: Track Record of Growth in Financial Results
Track Record of Growth in Financial Results Northland’s growth in Adjusted EBITDA and Free Cash Flow Year-to-date 2019 results building on the momentum Per Share has been substantial and success achieved in 2018 Adjusted EBITDA Growth 1,000 800 Q3 2019 Q3 2018 Change Energy Volumes (GWh) 2,058 1,777
Slide 9: Track Record of Financial Stewardship
Track Record of Financial Stewardship • Prudent use of leverage and liquidity • Northland has a BBB (Stable) investment grade credit rating by S&P • Strong S&P FFO1-to-Debt, well above minimum threshold • Healthy corporate debt level relative to IPP industry, to support flexibility • Prudent use of
Slide 10: 2019 Financial guidance - Continuing the growth
2019 Financial guidance - Continuing the growth Expect to continue the growth in Adjusted EBITDA and Free Cash Flow Per Share in 2019 Operating Capacity by Technology (Net MW) Solar, 5% Adjusted EBITDA Gas & Biomass, 40% $950 to $1,000 Offshore Wind, 2019E Million 40% Onshore Wind, 15% Free Cash Flo
Slide 11: Portfolio Overview
Portfolio Overview
Slide 12: Diversified Asset Portfolio
Diversified Asset Portfolio North America Europe Asia Deutsche Bucht Hai Long In In Construction Advanced Development South Korea Japan Taiwan La Lucha In Construction South America EBSA - Technology: Operating Under Construction & Regulated Utility3 Development Offshore Wind 932 MW 2,093 MW Onshore
Slide 13: Optimization of Existing Portfolio
Optimization of Existing Portfolio Maximize cash flows from existing assets • Apply in house expertise to optimize performance of operating Internalize Expertise assets and enhance value Leverage in-house knowledge to support development and Utilize Technology construction • Leverage “big data” to o
Slide 14: Looking Ahead – Business Objectives
Looking Ahead – Business Objectives 1 • Maintain excellent operating track record • Maintain excellent health, safety and environmental record • Continue to optimize operating portfolio 2 • Continue track record of on-time, on-budget execution • Execute on Deutsche Bucht construction • Execute on La
Slide 15: EBSA Acquisition Highlights & Strategic Rationale
Empresa de Energía de Boyacá (“EBSA”) Acquisition Highlights & Strategic Rationale
Slide 16: EBSA Acquisition Summary
EBSA Acquisition Summary • Northland announced acquisition of EBSA on September 9, 2019, adding a high quality regulated utility in Colombia • Acquisition represents a further pivot in Northland’s long-term global growth strategy and introduces a new line of business • EBSA provides strategic value
Slide 17: Acquisition Highlights and Investment Thesis
Acquisition Highlights and Investment Thesis • 3rd largest population in the region with a growing middle class and attractive GDP growth profile with real GDP growth averaging 3.5% over the past 10 years Expands Northland’s • Member of the OECD and a creditworthy jurisdiction that has maintained an
Slide 18: Colombian Market Overview
Colombian Market Overview Investment 1 Creditworthy jurisdiction with established legal and regulatory frameworks • Colombia is a member of the OECD Grade: • Colombia is among the top 3 economies to do business in Latin America2 Baa2 / BBB- / BBB1 since 2011 US$14 bn 2 Solid macroeconomic fundamenta
Slide 19: Premier Regulated Utility
Premier Regulated Utility Asset Highlights Geographic Location • Sole distribution company in Boyacá, operating in 123 Business municipalities with 1.3 million residents Boyacá Overview • Currently serving electricity needs for approximately 480,000 customers Duitama • Distribution Tunja Sogamoso −
Slide 20: Platform for Growth in Latin America
Platform for Growth in Latin America EBSA is one of a few energy companies in Colombia with grandfathered rights which allow for vertical integration and participation in all segments of the electricity supply chain Distribution • In addition to the growth in the distribution segment approved by reg
Slide 21: Construction Overview
Construction Overview Northland Power Inc. – Corporate Presentation 20
Slide 22: Track Record of On-time and On-Budget Project Delivery
Track Record of On-time and On-Budget Project Delivery Project Technology MW (Gross) COD On/Ahead of Schedule Under Budget Iroquois Falls Gas 120 1997 Mont Miller Onshore Wind 54 2005 Jardin d’Éole Onshore Wind 133 2009 Thorold Gas 265 2010 Mont Louis Onshore Wind 101 2011 Spy Hi
Slide 23: Global Reach – European Offshore Wind Success
Global Reach – European Offshore Wind Success Successfully constructed and operating two offshore wind projects with third project under construction 1.2 GW1 Gemini GEMINI 600 MW 600 MW 60% Net Northland Interest COD2 April 2017 European offshore Completed on time and on budget Wind Power NORDSEE No
Slide 24: Deutsche Bucht – Construction Progressing on Schedule
Deutsche Bucht – Construction Progressing on Schedule Key Project Highlights Background Information Location: North Sea, Germany • In 2015, Northland acquired 100% interest in offshore development project Model FC/COD: May 2017 / December 2019 Deutsche Bucht • Northland developed, financed and has l
Slide 25: Deutsche Bucht – Project Timeline
Deutsche Bucht – Project Timeline Current Project Status • Project currently under construction • Installed and commissioned offshore substation and installed 31 turbines with first power realized at the end of July 2019 • The 2 demonstrator projects utilizing mono-bucket foundations are currently b
Slide 26: Global Reach – Latin American Development
Global Reach – Latin American Development Initial investment into Mexico with La Lucha Solar project; opportunities for potential developments across countries and technologies La Lucha GEMINI 130 MW 600 MW 130 MW1 First investment in Mexico targeting commercial and industrial offtake In Constructio
Slide 27: La Lucha – Mexican Solar
La Lucha – Mexican Solar Key Project Highlights Background Information Location: Durango, Mexico • Develop, construct and operate 130 MW solar project in the state of Durango, Model FID/COD: May 2019 / H2 2020 Mexico • First step in Mexico strategy that will focus on commercial and industrial market
Slide 28: Development Overview
Development Overview
Slide 29: Power Markets are Changing
Power Markets are Changing Our industry has evolved over the past 10 years • Supportive Government Policies – Governments have taken real action to reduce carbon footprint • Industry Evolution & Technological Advancement – Renewables are now a cost-effective and feasible alternative to add new power
Slide 30: Adapting to Change - Enhancing our Development Pipeline
Adapting to Change - Enhancing our Development Pipeline Focus on current projects under advanced development, while increasing pipeline of future development opportunities Opportunity Set • Offshore wind opportunities in multiple regions Global Development Offices • Decarbonization and denuclearizat
Slide 31: Global Reach – Additional Development Opportunities
Global Reach – Additional Development Opportunities Multiple renewable power opportunities across jurisdictions and technologies NORTH AMERICA North America Mature markets for renewable and thermal power projects Opportunity for bulk storage EUROPE Europe Significant offshore wind presence Further p
Slide 32: Global Reach – Asian Offshore Wind Development
Global Reach – Asian Offshore Wind Development Successfully secured 1,044 MW of grid allocation offshore wind in Taiwan Looking for additional opportunities in Japan and South Korea 1.0 GW 1 Hai Long HAI LONG 60% Net Northland Interest 1,044 MW 1,044 Construction expected to be completed by MW Asia
Slide 33: Taiwan – Hai Long Offshore Wind
Taiwan – Hai Long Offshore Wind Project Overview Key Project Highlights Status: Advanced Development • Northland and its partner Yushan Energy continue to advance development and work to execute PPAs1 for two remaining projects • 40-50 km off the west coast of Taiwan, in • Hai Long awarded 1,044 MW
Slide 34: Northland's Visible Pipeline of Growth Opportunities
Northland’s Visible Pipeline of Growth Opportunities Business Plan provides platform for significant Adjusted EBITDA growth Visible Growth Business Plan Deutsche Bucht 2020 + Hai Long 2026 La Lucha 2020 Additional Growth through ~60% 2026 ~30% Growth1 $891M Growth1 2018 Actual 2020 Forecast 2026 For
Slide 35: Northland - A Compelling Investment
Northland - A Compelling Investment 1 High quality globally diversified asset portfolio offering exposure across multiple technologies 2 Northland’s Experienced management team with a track record of delivering on commitments business strategy is centered on establishing a 3 significant global Track
Slide 36: Appendix
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Slide 37: Reporting of Non-IFRS Financial Measures
Reporting of Non-IFRS Financial Measures This investor presentation includes references to Northland’s adjusted EBITDA and free cash flow, measures not prescribed by International Financial Reporting Standards (IFRS). Adjusted EBITDA and free cash flow, as presented, may not be comparable to other s
Slide 38: Market Summary
Market Summary Key Metrics1 Recent Share Price (TSX: NPI) $27.11 Shares (Common + Subscription Receipts + Class A) 195 million Annual Dividend $1.20 2019 EBITDA Guidance $950 – $1,000 million 2019 FCF/sh Guidance $1.65 – $1.80 /sh Total Debt, Net of Cash2 $6.0 billion Convertible Debentures (NPI.DB.
Slide 39: European Offshore Wind Facility Details
European Offshore Wind Facility Details Gemini Nordsee One Deutsche Bucht Capacity 600 MW 332 MW 269 MW Distance to Shore 85km 40km 95km Wind Turbines 150 x Siemens 4 MW 54 Senvion x 6.15 MW 33 x MHI Vestas 8MW Turbine Foundation Monopile Monopile Monopile1 Water Depth 28m to 36m 26m to 29m 39m to 4
Slide 40: Operating Facilities
Operating Facilities Gross Northland Project Location Technology PPA Term Capacity Ownership Thorold ON, CA 265 MW 100% Natural gas combined cycle 2030 Iroquois Falls ON, CA 120 MW 100% Natural gas combined cycle 2021 Spy Hill SK, CA 86 MW 100% Natural gas peaking plant 2036 Biomass and natural gas
Slide 41: Producing and Maintaining Stable Cash Flows
Producing and Maintaining Stable Cash Flows Remaining PPA Term for Each Facility MW Weighted Average MW Weighted Average PPA ~11.1 yrs1 PPA ~14.3 yrs1 • Stable long-term cash flows from Remaining PPA Term (Excl. Hai Long) (Incl. Hai Long) contracted revenues • MW weighted average PPA life ~11.1 year
Slide 42: Northland Power Investor Relations Contact
Northland Power Wassem Khalil Email: 30 St. Clair Avenue West, Senior Director Investor investorrelations@northlandpower.com 12th Floor Relations & Strategy Website: 4 Toronto, ON Canada M4V 3A1 647.288.1019 northlandpower.com 41
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