Capital Power Corporation · TSX:CPX

Capital Power — Q3 2021 Earnings Presentation

15 slides from Capital Power's earnings presentation, Oct 27, 2021

  1. Slide 1: Q3/21 Analyst Conference Call

    Q3/21 Analyst Conference Call Brian Vaasjo, President & CEO Sandra Haskins, SVP Finance & CFO October 27, 2021 1

  2. Slide 2: Forward-looking information

    Forward-looking information Cautionary statement Certain information in this presentation and responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information as a result of certain mater

  3. Slide 3: Non-GAAP financial measures

    Non-GAAP financial measures The Company uses (i) earnings before net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense and depreciation expense from its joint venture interests, gains or losses on disposals and unrealiz

  4. Slide 4: Q3/21 highlights and outlook

    Q3/21 highlights and outlook  Q3 results – generally in line with management’s expectations  Unplanned Genesee 2 outage longer than originally anticipated with return to service expected at the end of Nov/21  Update on renewable projects • Cost pressures on Strathmore Solar and Enchant Solar proj

  5. Slide 5: Genesee 2 forced outage

    Genesee 2 forced outage  Generator failure in mid-July; physical damage covered by insurance  Unit undergoing repairs to replace generator and expected to return to operations at end of Nov/21  Utilizing Clover Bar Energy Centre to partially mitigate the Genesee 2 impact  Loss of revenue qualifi

  6. Slide 6: Robustness of Alberta power market

    Robustness of Alberta power market  Hot temperatures, facility outages and demand recovery contributed to average power price of $100/MWh in Q3/21  Forward price for Q4/21 is $99/MWh  Increased hedged positions in 2022-24 at higher hedged prices in 2022-23 versus Q2/21  ~500 MWs (gas peaking, wi

  7. Slide 7: Financial performance – Q3/21

    Financial performance – Q3/21 $M, except per share amounts Q3/21 Q3/20 Change Revenues and other income $377 $453 (17%) Adjusted EBITDA $286 $284 1% Basic earnings per share $0.23 $0.89 (74%) Replace Image Normalized EPS $0.55 $0.66 (17%) Net cash flows from operating activities $347 $258 34% AFFO $

  8. Slide 8: Accounting for Genesee outage

    Accounting for Genesee 2 outage  ~$25M capex spent in Q3/21; $23M (less $2M deductible) accrued in the Income Statement as being recovered through insurance for the capitalized costs  In Q3/21, net impact of $2M deductible to AFFO; no impact to adjusted EBITDA  Incremental capex in Q4/21 will be

  9. Slide 9: Financial performance – Q3/21 YTD

    Financial performance – Q3/21 YTD $M, except per share amounts Q3/21 YTD Q3/20 YTD Change Revenues and other income $1,318 $1,421 (7%) Adjusted EBITDA $830 $735 13% Basic earnings per share $1.10 $0.87 26% Normalized EPS $1.50 $1.09 38% Net cash flows from operating activities $682 $452 51% AFFO(1)

  10. Slide 10: YTD performance versus 2021 annual targets

    YTD performance versus 2021 annual targets Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) $570 to $500 to $620 $99 $1,090 to $80 to $90 $975 to $1,140 $550(1) $1,025 $456 $830 93% 90% Q3/21 YTD Target Q3/21 YTD Target Q3/21 YTD Target Revised Q3/21 YTD Target Revised Guid

  11. Slide 11: ~$1.7B of growth projects under development

    ~$1.7B of growth projects under development 7 renewable projects and Genesee 1&2 repowering adding 985 MWs Budget Current Target Current ($M) Status COD Status Whitla Wind 2 (AB) $165 Q4/21 Whitla Wind 3 (AB) $92 Q4/21 Strathmore Solar (AB) $53(1) $57 Early 2022 Enchant Solar (AB) $102(1) $119 Q4/22

  12. Slide 12: Other activities

    Other activities  Covid-19 continues to be well managed with no impact on operations  Genesee Carbon Conversion Center (GC3) continues on slower development path  Island Generation PPA renewal – negotiating on medium term agreement continues  CCS pre-feed study near completion; overall increasin

  13. Slide 13: Please mark your calendars

    Please mark your calendars Investor Day (virtual) Dec 2, 2021 (am) More details to be announced 13

  14. Slide 14: Forward-looking information

    Forward-looking information Forward-looking information or statements included in this presentation are provided to inform the  electricity, other energy, and carbon prices; Company’s shareholders and potential investors about management’s assessment of Capital Power’s future  performance; plans a

  15. Slide 15: Questions?

    Questions? Investor Relations Randy Mah 10423 101 Street NW Director, Investor Relations 11th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada T5H 0E9 15

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