Slide 1: Q1/19 Analyst Conference Call
Q1/19 Analyst Conference Call Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO April 29, 2019 capitalpower.com
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
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, and gains or losses on disposals and unre
Slide 4: Q1/19 highlights
Q1/19 highlights A strong quarter highlighted by excellent operational performance Strong operations and financial outlook • Excellent operating performance with 98-100% availability from Alberta, Ontario and BC facilities; overall average availability of 96% • Generated a record quarter of 5,782 GW
Slide 5: United Conservative Party (UCP) wins majority government in AB election
United Conservative Party (UCP) wins majority government in AB election UCP wins 63 of 87 seats; NDP elected in 24 seats to form Official Opposition Election Platform Carbon Tax Initial assessment • Establish Technology Innovation and Emissions • Impact of the carbon tax price reduction will not be
Slide 6: UCP election platform (cont’d)
UCP election platform (cont’d) Election Platform Renewables Initial assessment • End costly subsidies for renewables after • Have experience and success with market- Renewable Electricity Program (REP) 3 and driven renewables in the U.S. welcome market-driven green power Power market design • Consul
Slide 7: Stable outlook in Alberta power prices
Stable outlook in Alberta power prices Q1/19 average spot price nearly doubled YoY Average spot price of $/MWh 80 Quarterly Annual $69/MWh in Q1/19 was $69 the highest quarterly spot 70 price in 2.5 years due to 60 • Unseasonably cold 50 temperatures • Higher natural gas prices 40 $35 • Baseload fac
Slide 8: Q1/19 financial review
Q1/19 financial review • Q1/19 financial results were in-line with management’s expectations • Generated strong AFFO of $117M • Adjusted EBITDA of $202M versus $179M in Q1/18 • Company captured an average realized power price of $58/MWh compared to $47/MWh in Q1/18 Portfolio optimization Q1/19 Q1/18
Slide 9: Financial performance – Q1/19
Financial performance – Q1/19 $M, except per share amounts Q1/19 Q1/18 Change Revenues and other income $397 $313 27% Higher adjusted EBITDA from strong Adjusted EBITDA $202 $179 13% performance in Alberta (higher Basic earnings per share $0.49 $0.30 63% generation & captured price) Normalized EPS $
Slide 10: Portfolio optimization
Portfolio optimization AB commercial portfolio positions 2020 2021 2022 As of date March 31, 2019 The low hedged % on the merchant position % sold forward(1) 24% 2% 2% reflects our higher fundamental power Contracted prices(2) ($/MWh) Low-$50 Low-$70(3) Mid-$50 price view compared to current forward
Slide 11: Q1/19 performance versus 2019 annual targets
Q1/19 performance versus 2019 annual targets 2019 AFFO expected to be in the upper end of the range Facility availability Sustaining capex Adjusted EBITDA AFFO $460 to $510 $80 - $90M $800 to $850M 96% 95% $202M $117 $9M Q1/19 Target Q1/19 Target Q1/19 Target Q1/19 Target capitalpower.com capitalpow
Slide 12: 2019 development & construction targets
2019 development & construction targets Construction 2019 2020 2021 Whitla Wind Cardinal Point Wind (Alberta) (Illinois) • 201.6 MW (Phase 1) • 150 MW • 20-year PPA • 12-year PPA • $315-$325M(1) • $289-$301M • COD in Q4/19 • COD in Mar/20 Other contracted growth • $500 million of committed capital 1
Slide 13: Questions?
Questions? capitalpower.com 13
Slide 14: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to These statements are based on certain assumptions and analyses made by the Company in light of its inform the Company’s shareholders and potential investors about management’s experien
Slide 15: Investor Relations
Investor Relations Randy Mah 10423 101 Street NW Director 11th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada, T5H 0E9 www.capitalpower.com capitalpower.com 15