Otter Tail Corporation · NASDAQ:OTTR
Otter Tail — Shareholder Meeting (April 2020)
36 slides from Otter Tail's shareholder meeting presentation, Apr 20, 2020
Slide 1: Welcome Shareholders
WELCOME SHAREHOLDERS 2020 Annual Shareholder Meeting
Slide 2: Ask a Question
ASK A QUESTION To ask questions, please click on the question icon
Slide 3: Voting Link
VOTING LINK Viewing the Annual Meeting during the webcast: To view the annual meeting during the webcast, please select the black ‘Broadcast’ bar located on the bottom of this screen if viewing on a mobile or tablet, or on the right side of the screen if on a desktop. To start the audio, please sele
Slide 4: Link to Welcome Screen
LINK TO WELCOME SCREEN Click this icon to return on the welcome page 4
Slide 5: Shareholder Business Meeting
@ Broadcast Expand slides to full screen Help Otter Tail Annual Meeting 2020 (04/20/2020 10:30am SHAREHOLDER BUSINESS MEETING ‘OTTER TAIL CORPORATION ANNUAL MEETING OF SHAREHOLDERS ‘April 20,2020, AGENDA 1 2, Welcome and Introduction - Nathan Partaln Shareholder Business Meeting ‘3. Callto Order Not
Slide 6: Shareholder Business Meeting
SHAREHOLDER BUSINESS MEETING OTTER TAIL CORPORATION ANNUAL MEETING OF SHAREHOLDERS April 20, 2020 AGENDA 1. Welcome and Introduction – Nathan Partain 2. Shareholder Business Meeting a. Call to Order b. Notice of Meeting, Existence of a Quorum and Announcements c. Items of Business d. Closing of the
Slide 7: 2020 Annual Shareholder Meeting: Financial Report
2020 ANNUAL SHAREHOLDER MEETING Financial Report – Kevin Moug, SVP & CFO
Slide 8: Forward Looking Statement
FORWARD LOOKING STATEMENT • This presentation contains statements that may be considered forward looking statements. Such statements contain the word “expect,” “anticipates” or words of similar meaning, or speak to management’s expectations regarding the EPS growth goals, sales, total shareholder re
Slide 9: 2019 Highlights
2019 HIGHLIGHTS Financial Summary Highlights • Consolidated EPS of $2.17, up 5.3%. 2019 2018 • Increased the annual dividend rate 4.5% from $1.34 to $1.40. Annual indicated rate for 2020 is $1.48 or 5.7% Operating Revenues (in millions) $919.5 $916.4 increase over the 2019 rate. • Total shareholder
Slide 10: Capital Expenditure Investments
CAPITAL EXPENDITURE INVESTMENTS Expected Capital Expenditures • Electric Platform rate base $450 $400 $16 growth with investments in $350 transmission, wind, solar, $300 natural gas and technology. ($ MILLIONS) $250 $17 $200 $369 $18 $19 $17 • Manufacturing Platform capital $150 $100 consists of mai
Slide 11: Strong Liquidity
STRONG LIQUIDITY Otter Tail Corporation Moody’s Fitch S&P Corporate Credit/Long-term Baa2 BBB- BBB Issuer Default Rating Senior Unsecured Debt N.A. BBB- N.A. Outlook Stable Stable Stable Otter Tail Power Company Moody’s Fitch S&P Corporate Credit/Long-term A3 BBB BBB+ Issuer Default Rating Senior Un
Slide 12: Strong Liquidity
STRONG LIQUIDITY December 31, 2019 April 13, 2020 OTC OTP OTC OTP Total Credit Capacity $170.0 $170.0 $170.0 $170.0 Outstanding Borrowings (6.0) (15.8) Letters of Credit (15.5) (14.1) Unused $164.0 $154.5 $154.2 $155.9 Expiration Date October 31, 2024 October 31, 2024 ▪ $175 million Private Placemen
Slide 13: History of Dividend Growth
HISTORY OF DIVIDEND GROWTH • Consecutive annual dividends without Dividend Growth interruption paid since 1938 $1.40 $1.34 $1.21 $1.23 $1.25 $1.28 • Indicated increase of $.06/share (4.5%) $1.19 • Strong balance sheet, liquidity, cash generation profile and our commitment to enhancing shareholder 79
Slide 14: Investment Highlights
INVESTMENT HIGHLIGHTS Total Shareholder Dividend yield ~ 3% 5-7% EPS growth- based off from 2019 EPS Return Dividend growth in line with EPS growth while maintaining a ~ 8-10% Payout ratio of 60-70% Strong and stable regulated electric operations provide cash flow to Competitive, low cost integrated
Slide 15: Thank You
» | THANK YOU |
Slide 16: 2020 Annual Shareholder Meeting: CEO Report
2020 ANNUAL SHAREHOLDER MEETING CEO Report – Chuck MacFarlane
Slide 17: Best Wishes!
BEST WISHES! Debbie Wilke • Vice President, Accounting, Tax, and Reporting; Otter Tail Corporation. • Began her career with the company in 1980. • Celebrating 40 years in June. • Will retire July 2020. 17
Slide 18: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation contains statements that may be considered forward looking statements. Such statements contain the word “expect,” “anticipates” or words of similar meaning, or speak to management’s expectations regarding the EPS growth goals, sales, total shareholder retu
Slide 19: 2019 Annual Report
2019 ANNUAL REPORT OTTERTAIL
Slide 20: Electric Utility
ELECTRIC SME OrEnian POWER COMPANY
Slide 21: Merricourt Wind Energy Center
MERRICOURT WIND ENERGY CENTER Project Merricourt Wind Energy Center 150 megawatts Description Capacity factor ~ 50% to 55% Schedule 2017 - 2020 OTP cost $258 million
Slide 22: Astoria Station
ASTORIA STATION Project Astoria Station Natural Gas Plant Description 245-megawatt simple cycle unit Schedule 2020 - 2021 OTP cost $158 million
Slide 23: South Dakota Transmission Reliability Project
South Dakota Transmission Reliability SOUTH DAKOTA TRANSMISSION RELIABILITY PROJECT Project 23
Slide 24: Self-Fund Transmission Projects
SELF-FUND TRANSMISSION PROJECTS Project Self-Fund Transmission Projects Description OTP to fund transmission upgrades associated with new generator interconnections. Schedule 2019 - 2021 OTP cost ~$45 million 24
Slide 25: ESG Highlights
ESG HIGHLIGHTS ESG Highlights 2022 Projections By 2022 we 30% 30% 30% expect our carbon dioxide emissions from RENEWABLE CARBON LOWER owned RESOURCES REDUCTION RATES resources to that we own or secure from 2005 levels compared to the through power be 33% lower national residential purchase agreement
Slide 26: Solar Energy
SOLAR ENERGY • Exploring options for solar active projects of approximately 30 megawatts or more, solar plus storage proposals, and self-build options. • Today we have 47 small solar units (667 kilowatts) interconnected.
Slide 27: Integrated Resource Plan
INTEGRATED RESOURCE PLAN 27
Slide 28: Rate Base Growth
RATE BASE GROWTH 2019-2024 CAGR of 8.2% $1.69 $1.74 $1.57 $1.63 $1.42 $1.17 $1.10 2018(A) 2019(A) 2020(F) 2021(F) 2022(F) 2023(F) 2024(F) Rate Base (amounts in billions) 28
Slide 29: Manufacturing Platform
MANUFACTURING PLATFORM ¥, @& northern pipe products VINYLTECH Sone Vi TO. PLASTICS PVCePIPE
Slide 30: Custom Metal Fabricator
CUSTOM METAL FABRICATOR
Slide 31: Custom Plastic Parts Manufacturer
CUSTOM PLASTIC PARTS MANUFACTURER
Slide 32: Plastics Segment
PLASTICS SEGMENT © northern pipe products VINYLTECH Vid PVCePIPE
Slide 33: Strategic Objectives
STRATEGIC OBJECTIVES GROW ACHIEVE DEVELOP OUR OPERATIONAL AND OUR BUSINESSES COMMERCIAL EXCELLENCE TALENT
Slide 34: Thank You
» | THANK YOU |
Slide 35: Ask a Question
ASK A QUESTION To ask questions, please click on the question icon
Slide 36: Thank You
THANK YOU S OTTERTAIL W CORPORATION