Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Deutsche Bank Securities 10th Annual Electric Power Conference (June 2005)
16 slides from Northwestern Energy's conference presentation, Jun 14, 2005
Slide 1: NorthWestern Energy – Deutsche Bank Electric Power Conference
NorthWestern Energy Deutsche Bank Securities 10 Annual Electric Power Conference The Pierre «New York, NY dune 14, 2005
Slide 2: Mike Hanson, President and CEO
Mike Hanson President and CEO NorthWestern ny
Slide 3: Forward-Looking Statement
Forward-Looking Statement During the course of this presentation today, we will be discussing certain subjects including those pertaining to our strategy, and our discussions may contain forward-looking information. Although our expectations and beliefs are based on reasonable assumptions, actual re
Slide 4: Introduction
introduction Following emergence, NorthWestern is a much stronger company — ¢ Focused on our transmission and distribution utility operations « Strong balance sheet (52% debt to total cap) « Significant free cash flow « Solid earnings growth «Competitive dividend NorthWestern
Slide 5: Company Overview
Company Overview + NorthWestern Corporation, headquartered in Sioux Falls, S.D., is an investor-owned utility and one of the largest providers of electricity and natural gas in the northwest quadrant of the United States + We serve approximately 617,100 customers — 368,200 electric and 248,900 natur
Slide 6: Service Territory
Service Territory LEGEND © Electric Only ‘A Gas Only Gas and Electric — Electric Transmission Lines — casPipatne (omg ‘ed ard upper owned) Eecrc Generating Pant Ds eect Gonerating Plant font cata
Slide 7: Significant Events Since End of Q1 2005
Significant Events Since End of Q7 2005 Regulatory + Stipulation reached with MPSC to recover $4.6 million in natural gas previously disallowed = MPSC had disallowed $10.4 million in natural gas purchases from November 2002 to June 2004 + MPSC Approved Judith Gap Wind Project = First time MPSC appro
Slide 8: Potential Uses of Excess Cash Flow
Potential Uses of Excess Cash Flow Northwestern may use excess cash in one or more of the following areas: « Pay down debt «Increase dividend « Share and/or warrant repurchase « Buy down the Qualifying Facilities contract liability «Invest in transmission «Management considering other strategic uses
Slide 9: NorthWestern's Value Creation Strategy – Grow the Business
NorthWestern’s Value Creation Strategy — Grow the Business + NorthWestern is looking to take advantage of its strategically located position + Opportunities may exist to expand electric and gas transmission infrastructure to meet increased needs + Evaluate strategic opportunities in northwestern U.S
Slide 10: Brian Bird, Chief Financial Officer
Brian Bird Chief Financial Officer North Wes m xy
Slide 11: Value creation levers and cash flow
* Optimize operations + improve regulatory environment $218-$220 “Train andretan erployees Cas malign + Transmission investment * Territory expansion + Energytelated businesses - Be i< 75-$80 $30-$35 Sess 975-98 million $70-875 million “Ascures sssetsales proces of $8570 rilian and uses 2008 cash Ro
Slide 12: 2005 Outlook
2005 Outlook «Projecting earnings from continuing operations of $1.30 to $1.45 per share (basic) = Absent any unusual weather « Bridge from 2004 to 2005 = Significant reduction in interest expense = Reduced G&A expense = Modest increase in margins due to organic growth
Slide 13: Rating Agency Update
Rating Agency Update Rating Outlook Rating Outlook Fitch BB+ Positive N/A N/A Moody’s Bat Stable Ba2 Stable S&P BB Positive BB- Positive Steps necessary for investment grade rating 4. Financial performance track record 2. Asset sales proceeds received 3. Progress on outstanding litigation 4. Pay dow
Slide 14: Solid first quarter 2005 financial results
« Solid first quarter 2005 financial results « Significant cash flow = Will be at desired debt level (50/50 debt to cap) this summer «Reaffirming guidance on basic earnings from continuing operations of $1.30 to $1.45 per share = Absent any unusual weather «Taking steps to attain investment grade ra
Slide 15: Why Own NWEC?
Why Own NWEC? + Significant cash flow from operations = Profitable core business = Significant reduction in interest expense due to debt reduction = Company doesn’t pay any significant cash taxes through 2008 = Stable cap ex = Steady operations + Competitive dividend with opportunity for growth * St
Slide 16: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ GRA PHIC] [LOGO] Deutsche Bank Securities 10 th Annual Electric Power Conference The Pierre • New York, NY June 14, 2005 Mik e Hanson President and CEO [LOGO] For ward-Looking Statement During the course of this presentation today, we will be discuss
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