Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Shareholder Meeting (April 2024)
30 slides from Northwestern Energy's shareholder meeting presentation, Apr 26, 2024
Slide 1: Annual Meeting of Shareholders April 26, 2024
Annual Meeting of Shareholders April 26, 2024 1
Slide 2: NWE's President & CEO – Brian Bird
NWE’s President & CEO – Brian Bird 2 Brian Bird • Current position since January 2023. • President & Chief Operating Officer 2021-2022 • Vice President & Chief Financial Officer 2003-2021 • Board member since January 2023. • 25-plus years energy and utility industry experience. • Serves on Board of
Slide 3: Thank You and Farewell to Dana
Thank You and Farewell to Dana 3 “In February, Dana Dykhouse announced he would not be seeking re-election to our Board at the end of his annual term, effective today. Dana has served on our Board for the last 15 years; most recently as our independent Board Chair and as the chair of the Human Resou
Slide 4: Experienced & Engaged Board of Directors
Experienced & Engaged Board of Directors 4 Britt Ide • Nominating & Governance, HR • Independent • Joined April 2017 Anthony Clark • Nominating & Governance, HR • Independent • Joined December 2016 Dana Dykhouse • Chairman • Independent • Joined January 2009 Jan Horsfall • SETO (chair), Audit • Inde
Slide 5: Strong Executive Team
Strong Executive Team 5 Brian Bird • President and Chief Executive Officer • Current position since 2023 Crystal Lail • Vice President and Chief Financial Officer • Current position since 2021 (formerly VP and Chief Accounting Officer ’20-’21) Michael Cashell • Vice President – Transmission • Curren
Slide 6: NWE's Auditors – Deloitte & Touche LLP
NWE’s Auditors – Deloitte & Touche LLP 6 • Independent registered public accounting firm • Deloitte provides the following services for more than 20 industries: • Risk & Financial Advisory • Audit & Assurance • Consulting • Tax • Merger & Acquisition • Artificial Intelligence and Analytics • Cloud •
Slide 7: NWE's Board Chair Dana Dykhouse; Meeting Agenda
NWE’s Board Chair 7 Dana Dykhouse • Director since January 30, 2009. • Chief Executive Officer of First PREMIER Bank in Sioux Falls, South Dakota. • Serves on the boards of directors for Junior Achievement of South Dakota, the South Dakota State University Athletic Champions Council, the Sanford Hea
Slide 8: Corporate Secretary's Report
Corporate Secretary’s Report 8 Report • Affidavit of distribution for the proxy materials • Registered holders of common stock of the Company • Establishment of a quorum
Slide 9: Items of Business to be Considered
Items of Business to be Considered 9 Election of Directors • Our Board is nominating nine people to serve as directors for one year. Ratification of Deloitte & Touche LLP, as Independent Registered Public Accounting Firm for 2024 • Our Audit, Finance and Risk Committee oversees the integrity of our
Slide 10: Electronic Voting
Electronic Voting 10 • If you have not voted: Please use the virtual meeting voting platform to cast your vote now. • If you previously voted, but want to change your vote: Please use the virtual meeting voting platform to cast your new vote now.
Slide 11: Forward Looking Statements
Forward Looking Statements 11 Forward Looking Statements During the course of this presentation, there will be forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected
Slide 12: Guiding Principles
"Guiding Principles Vision Mission «| Values Enriching lives Working Safety through a safe together to Excellence and deliver safe, Respect sustainable reliable and Value energy future. affordable Integrity energy Community solutions. Environment
Slide 13: NWE – An Investment for the Long Term
NWE – An Investment for the Long Term 13 • Approved Montana electric & natural gas and South Dakota electric rate reviews aid earnings, cash flow, and balance sheet strength • History of consistent annual dividend growth • 100% pure electric & natural gas utility with over 100 years of operating his
Slide 14: About Our Company
About Our Company 14 775,300 Customers 1,573 Employees 337 Communities in Montana and South Dakota with electric service MT – 221 (127 electric only / 94 combo) SD – 116 (75 electric only / 41 combo) 202 Communities in Montana, South Dakota and Nebraska with gas service MT – 118 (24 gas only / 94 co
Slide 15: About NorthWestern
About NorthWestern 15 Montana Operations Electric 405,500 customers 127 electric only communities and 94 combo communities 25,274 miles – transmission & distribution lines 887 MW maximum capacity owned power generation Natural Gas 212,100 customers 24 gas only communities and 94 combo communities 7,
Slide 16: The NorthWestern Value Proposition
9%-11% Total Growth 11%+ Total Growth Incremental Opportunities: 6% + EPS Growth ~5% Dividend Yield Base Capital Plan: 4%-6% EPS Growth FERC Transmission Incremental generating capacity (subject to successful resource procurement bids) Qualifying Facility and / or Power Purchase Agreement buyo
Slide 17: NorthWestern's Combo Advantage
NorthWestern’s Combo Advantage 17 • Investment in production*, transmission & distribution • Extreme winters necessitate economical gas heating • Energy Choice (Ban the Ban) laws in MT & SD • Access to low & less volatile natural gas pricing • AECO & Henry Hub (Ventura) *Proven reserves only, no exp
Slide 18: A Diversified Electric and Gas Utility
A Diversified Electric and Gas Utility 18 NorthWestern’s ‘80/20’ rules: Approximately 80% Electric and 80% Montana. Over $4.8 billion of rate base investment to serve our customers Data as reported in our 2023 10-K (1) Utility Margin is a non-GAAP Measure. See appendix for additional disclosure. * R
Slide 19: Highly Carbon-Free Portfolio
Highly Carbon-Free Portfolio 19 2023 Delivered megawatt hours (percent carbon-free) NorthWestern: 55% National Average: 41% Based on 0wned and long-term contracted resources Source: U.S. Energy Information Administration – form EIA.gov Table 7.2b Electric Net Generation: U.S. Electric Power Sector 2
Slide 20: Strong Utility Foundation
Strong Utility Foundation 20 Solid and generally improving JD Power Overall Customer Satisfaction Scores Solid electric system reliability Residential rates below national average* Better than average natural gas leaks per mile *NWE rates as of 7/1/2023 (Electric) and December 2023 (Natural Gas)
Slide 21: Hard Assets Providing Real Value
Hard Assets Providing Real Value 21 Compound Annual Growth Rates (CAGR) 2009 – 2023 Net PPE (Gross Property Plant and Equipment less Accumulated Depreciation): 8.35% Market Cap (Equity shares outstanding times stock price): 8.97% Enterprise Value (Market Cap plus debt outstanding): 8.20% We believe
Slide 22: Maintaining Affordability for Our Customers
Maintaining Affordability for Our Customers 22 NorthWestern’s typical electric and natural gas bills are below national average even considering the significant burden of Montana property tax increases and recent severe price pressures, especially for market prices of energy, that have impacted cust
Slide 23: Regulated Utility Five-Year Capital Forecast
$2.5 billion of highly-executable and low-risk capital investment Regulated Utility Five-Year Capital Forecast 23
Slide 24: Best Practices Governance
Best Practices Governance 24 America’s Most Responsible Companies Recognized by Newsweek as one of the most responsible companies in 2023. One of only eleven EEI member utilities selected. Board of Directors Executive Team 5th Best Score Among 50 Publicly Traded North American Utility and Power Comp
Slide 25: Montana Wildfire Mitigation Plan
Montana Wildfire Mitigation Plan 25 Reduction of Ignition Potential System and Environmental Monitoring Enhanced Vegetation Maintenance Enriched Public Communication and Outreach Former plan filed in 2022 with the Montana general rate review • Approved settlement provides enhancement to former wil
Slide 26: 2023 - Year in Review
2023 - Year in Review 26 Recognized by Newsweek as one of “America’s Most Responsible Companies” Operational performance • One of our best safety years on record! • Maintained safe and reliable service while reaching new all-time system peaks for both electric (Montana & South Dakota) and natural g
Slide 27: Conclusion
Conclusion Pure Electric & Gas Utility Solid Utility Foundation Best Practices Corporate Governance Attractive Future Growth Prospects Strong Earnings & Cash Flows 27
Slide 28: Question and Answer
Question and Answer 28 • Please submit questions through the virtual annual meeting website. • We will edit profanity or other inappropriate language. • Questions must: • Be pertinent to meeting matters • Be appropriate • Comply with the meeting rules of conduct • We will answer as many questions as
Slide 29: Preliminary Results
Preliminary Results 29 1. Election of Directors 2. Ratification of Deloitte & Touche LLP, as Independent Registered Public Accounting Firm for 2024 3. Advisory Vote to Approve Named Executive Officer Compensation
Slide 30: Thank you
Thank youDelivering a bright future 30
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