Northland Power Inc. · TSX:NPI
Northland Power — Investor Presentation (September 2021)
44 slides from Northland Power's investor presentation, September 2021
Slide 1: Northland Power Investor Presentation September 2021
Northland Power Investor Presentation September 2021 1
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 Resilient Operations and a Global Platform • Northland Power is a leading global power producer dedicated to helping the clean energy transition • Over 30 years of success developing, constructing and operating power projects across a range of technologies • Well-diversified portf
Slide 4: Evolution of Northland
Evolution of Northland Offshore Wind has Accelerated Our Growth Net Capacity (MW) Adjusted EBITDA ($Mln) Free Cash Flow/Share 2,266 MW $1,170 $1.73 2,029 MW $765 $1.46 1,345 MW 10% CAGR $363 21% CAGR $1.12 9% CAGR 2014 2017 2020 2014 2017 2020 2014 2017 2020 0% 40% 0% 60% 0% 50% Offshore Wind Offsho
Slide 5: Shareholder Returns
Shareholder Returns Track Record of Strong Returns to Shareholders Annual Dividends (Distributions) per share Total Shareholder Returns $1.20 Peer Group S&P/TSX Capped Utilities Index $0.89 Northland Power 17% 16% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 6: Global Competitive Position
Global Competitive Position Northland is on the Ground in Key Markets Northland Power Offices 6
Slide 7: The Talent to Win
Global Competitive Position The Talent to Win REGIONAL DEVELOPMENT OFFSHORE ONSHORE OFFICES WIND RENEWABLES Toronto Houston Offshore wind engineering and Onshore wind, solar and construction management construction management Mexico City Bogota Hamburg Toronto London Amsterdam Taipei Seoul Tokyo 7
Slide 8: Accelerating Growth: Capital Allocation
Accelerating Growth Northland’s Capital Allocation is Focused on Renewable Growth Northland has the following major business segments Offshore Wind Onshore Renewables Utilities Efficient Natural Gas New Technologies Increase Exposure Increase Exposure Increase Exposure Reduce Exposure Establish Posi
Slide 9: Balancing Long-term Growth with Near-term Cash Flow
Accelerating Growth Balancing Long-term Growth with Near-term Cash Flow 2021 - 2025 2026 - 2030 Focus on providing near-term cash flow Accelerating Growth • Development of onshore renewable projects with shorter • Offshore wind drives significant growth in capacity and incubation periods cash flow •
Slide 10: Doubling the Company by ~2030
Evolution of Northland Doubling the Company (again) by ~2030 Significant offshore wind platform of operating and development projects position Northland as a global leader in offshore wind development 4-5 GW $15-20+ Billion Identified Development Projects1 Potential capital investment over next 5 ye
Slide 11: Sustainability: Commitment to Sustainable Growth
Sustainability Our Commitment to Sustainable Growth Aligning our values with the United Nations Sustainability Development Goals Our Planet Our Community Our People Our Company De-carbonization and footprint A safe, healthy, inspired and Responsible and transparent A positive and contributing commun
Slide 12: Commitment to Develop a Carbon Free World
Sustainability Our Commitment to Develop a Carbon Free World E 4-5 GW of additional energy generation from renewable sources 65% Reduction Carbon intensity across our portfolio S highest A positive and standards of contributing Health & Safety community partner G 30% Continuing emphasis of female on
Slide 13: Portfolio Overview
Portfolio Overview Northland Power 13
Slide 14: Diversified Asset Portfolio
Diversified Asset Portfolio Significant Operating and Development Portfolio North Sea Offshore Wind Baltic Power In Advanced Development Canadian Onshore Assets NY Wind (320 MW) Spain Onshore Renewables Hai Long In Advanced Development EBSA - Regulated La Lucha Solar Utility (130 MW) Helios Solar Te
Slide 15: Northland Operating Assets
Northland Operating Assets Expiry PPA Construction Project Technology Location Gross Capacity Ownership Term (On-time/on-budget) Gemini Offshore Wind Netherlands 600 MW 60% 2032 Nordsee One Offshore Wind Germany 332 MW 85% 2027 Deutsche Bucht Offshore Wind Netherlands 252 MW 100% 2031 (Base Pl
Slide 16: Operations
Operations Wide Breadth of Generation and Utility Experience • Offshore Wind, Onshore Wind, Solar, Gas Turbine, Electricity Transmission, Distribution and Marketing Activities In-House • Industry-leading Generation availability factors and Utility reliability rates across the fleet in 2020 despite C
Slide 17: Offshore Wind
Offshore Wind Northland Power 17
Slide 18: Offshore Wind Platform to Anchor Growth
Growth Strategy Offshore Wind Platform to Anchor Northland’s Growth Significant offshore wind platform of operating and development projects position Northland as a global leader in offshore wind development Europe (Offshore Wind): Baltic Power: up to 1,200 MW Europe (Offshore Wind): Gemini: 600 MW
Slide 19: Europe: Established Offshore Wind Platform
Europe Established Offshore Wind Platform in North Sea 1 Deutsche Bucht COD: 2020 Capacity: 252 MW Ownership: 100% PPA Expiry: 2032 1 Deutsche Bucht 1.2 GW1 2 Gemini Offshore wind Nordsee One 3 in-operation 2 Gemini 3 Nordsee One COD: 2017 COD: 2017 Capacity: 600 MW Capacity: 332 MW Ownership: 60% O
Slide 20: Poland: Baltic Power Offshore Wind Project
Poland Expanded Portfolio with Baltic Power Offshore Wind Project Baltic Power • Acquired 49% interest in mid-stage offshore wind development project with potential for up to 1.2 GW of capacity • Continuation of Northland’s strategy of leveraging its top ten sector position globally to expand offsho
Slide 21: Asia: Growth from the Anchor Project
Asia Growth leading from the anchor project across the region 4.5 GW+1 Japan Offshore wind South Korea in-development Taiwan Taiwan Japan South Korea Hai Long Chiba Dado Ocean 1, 044 MW 600 MW Up to 1,000 MW Early Stage Development Asia Growth Mid/Advanced Stage Development Additional projects 2,000
Slide 22: Taiwan Offshore Wind: Hai Long
Taiwan Offshore Wind Hai Long Key Project Highlights Status: Advanced Development • 40-50 km off the west coast of Taiwan, in Taiwan Straits, located in Changhua County Location: • Water depth between 35 and 50 meters • 10 m/s average wind speed Capacity: 1,044 MW (gross) Taipei Signed 20-year PPA u
Slide 23: Japan and South Korea
Japan and South Korea Developing local partnerships to facilitate opportunities for future offshore wind Japan South Korea • Announced entry into Japanese market with joint • Acquired Dado Offshore Wind Corp. in February 2020 venture in November 2019 • Multiple early-stage development opportunities
Slide 24: Onshore Renewables
Onshore Renewables Northland Power 24
Slide 25: Onshore Renewables to Support Near-term Growth
Growth Strategy Onshore Renewables to Support Near-term Growth Targeted Approach to Developing Onshore Renewables Canada (Gas-Fired): North Battleford: 260 MW Iroquois Falls: 120 MW Canada (Solar): Thorold: 265 MW Ontario Solar: 90 MW Spy Hill: 86 MW Cochrane Solar: 40 MW Kingston: 110 MW Kirkland L
Slide 26: Spain: A Leading Onshore Renewables Portfolio
Spain A Leading Onshore Renewables Portfolio • Acquired a portfolio of 551 MW (net) of onshore renewables with a regulated tariff – ~80% of the portfolio consists of onshore wind assets, with the balance comprising solar PV and Concentrated Solar Power (CSP) • Positions Northland as top 10 owner of
Slide 27: Mexico: La Lucha Solar
Mexico La Lucha Solar • Solar project located in State of Durango, Mexico; ~78 km from the city of Torreon La Lucha • 130 MW solar project with 100% Northland ownership Torreon • First step in Mexico strategy that will focus on commercial and industrial market with a diversified generation portfolio
Slide 28: United States: New York Onshore Wind
United States New York Onshore Wind Project Overview Buffalo New York Albany • Acquired three New York onshore wind development projects in 2020. Projects expand Northland’s North American portfolio by providing investment Ball Hill Bluestone opportunities into the US renewables market NYC High Brid
Slide 29: Colombia: Helios Solar Project
Colombia Helios Solar Project Overview • 16 MW Solar project in Colombia • First development project in Colombia to capitalize on EBSA’s grandfathered rights, allowing it to expand into the energy generation market in Colombia EBSA • Aim is to service the power needs of non-regulated municipal, comm
Slide 30: Utilities
Utilities Northland Power 30
Slide 31: Latin America: EBSA Utility
Latin America EBSA Utility • EBSA provided strategic value to existing asset portfolio Boyaca • Sole distributor to a population of over 1.3 million; proven management team with local expertise • Operates under regulatory framework with an average approved WACC of Duitama approximately 11.5% • RAB i
Slide 32: Latin America: Additional Growth Opportunities
Latin America Additional Growth Opportunities PPAs Small Solar PV Small Hydro Construction + Operations PPAs Utilities and Non-regulated Clients Utility M&A Storage Transmission 32
Slide 33: Financial Overview
Financial Overview Northland Power 33
Slide 34: 2021 Financial Guidance
2021 Financial Guidance Adjusted EBITDA and Free Cash Flow Adjusted EBITDA $1.1 to $1.2 Billion 8% Offshore Wind Free Cash Flow (incl. growth expenditures) 20% 2021E Onshore Renewables Adjusted $1.30 to $1.50 EBITDA Efficient Natural Gas Per Share 12% 60% Utilities Adjusted Free Cash Flow (excl. gro
Slide 35: Funding Plan to Support Growth and Maintain Discipline
Financial Overview Funding Plan to Support Growth and Maintain Discipline Identified Development Green and maintain Significant growth in adj. EBITDA Projects Gross Capital investment grade balance expected on completion of Investment Plan sheet to support growth Identified Development projects Next
Slide 36: Strong Balance Sheet will Support Growth
Strong Balance Sheet will Support Growth Illustrative Capital Funding Plan of Identified Development Project Over Next Five Years Illustrative Capital Funding Plan (2021 – 2025) ~$1B ~$2-3B GREEN CORPORATE DEBT (INCLUDING NORTHLAND COMMON EQUITY + OFFSHORE REVOLVER/HYBRIDS) WIND SELL-DOWNS ~5% ~15%
Slide 37: Green Financing Framework
Green Financing Framework Adding Financial Optionality to Portfolio Green Financing Framework allows Northland to diversify and optimize additional sources of capital to fund growth plan • Northland has advanced several capital markets initiatives to diversify and Allows the issuance of green debt i
Slide 38: Adjusted EBITDA Growth Outlook
Adjusted EBITDA Growth Outlook Identified Projects Alone Expected to Double Adjusted EBITDA Adjusted EBITDA Growth of Identified Projects 2020A More than doubles Baltic Power Nordsee 2/3 Dado Chiba Early to Mid- Stage Iroquois Falls Development (PPA Expiry) Hai Long Projects La Lucha NY Wind Spain P
Slide 39: Key Priorities Over the Next Five Years
Evolution of Northland Key Priorities Over the Next five Years Leverage Strong Position in Offshore Wind 01 Press strong position in offshore wind by sourcing and advancing large scale projects as the sector grows and new markets open up Near-term Growth 02 Secure near-term growth through onshore re
Slide 40: Appendix
Appendix Northland Power 40
Slide 41: Market Summary
Market Summary Key Metrics1 Recent Share Price (TSX: NPI) $41.74 Shares (Common) 225 million Annual Dividend $1.20 2021 EBITDA Guidance $1.1 – $1.2 Billion 2021 FCF/sh Guidance $1.30 – $1.50 2021 Adjusted FCF/sh Guidance $1.60 - $1.70 Total Debt, Net of Cash2 $6.7 billion Preferred Shares (NPI.PR.A,
Slide 42: European Offshore Wind Facility Details
European Offshore Wind Facility Details Gemini Nordsee One Deutsche Bucht Capacity 600 MW 332 MW 252 MW Distance to Shore 85km 40km 95km Wind Turbines 150 x Siemens 4 MW 54 Senvion x 6.15 MW 31 x MHI Vestas 8MW Turbine Foundation Monopile Monopile Monopile Water Depth 28m to 36m 26m to 29m 39m to 41
Slide 43: 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 44: Contact Us
Northland Power Contact US Northland Power 30 St. Clair Avenue West, 12th Floor Toronto, ON Canada M4V 3A1 Wassem Khalil Senior Director Investor Relations & Strategy 4 647.288.1019 Email: investorrelations@northlandpower.com Website: northlandpower.com 44
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