Capital Power Corporation · TSX:CPX
Capital Power — Q4 2020 Earnings Presentation
15 slides from Capital Power's earnings presentation, Feb 19, 2021
Slide 1: Q4/20 Analyst Conference Call
Q4/20 Analyst Conference Call February 19, 2021 Brian Vaasjo, President & CEO Sandra Haskins, SVP Finance & CFO
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, gains or losses on disposals and unrealiz
Slide 4: Excellent year in 2020
Excellent year in 2020 Monumental growth including renewable development, repowering / off-coal Growth • Committed ~$1.7B in capital for 7 renewable projects and repowering of Genesee 1&2 • Includes 5 solar development projects confirming competitive capability and more than doubling renewable devel
Slide 5: 2020 performance versus annual targets
2020 performance versus annual targets(1) Target Actual Results Facility availability 93% 95% Significantly exceeded target Sustaining capex ($M) $90 to $100 $73 Below target Adjusted EBITDA ($M) $935 to $985 $955 ~ Slightly below $960 mid-point of range Would be above mid-point of range AFFO
Slide 6: Continued growth in renewable assets
Continued growth in renewable assets 7 projects — 5 solar, 2 wind Adjusted EBITDA from renewables • 427 MW total 27% in 2020 projected to increase to 34% in 2025 • COD in 2021-22 (based on existing projects) • 4 projects with long-term PPAs; in Renewables discussions for potential offtake Natural ga
Slide 7: Alberta commercial portfolio optimization
Alberta commercial portfolio optimization $/MWh $57 $56 2021 2022 2023 $47 $46 % sold forward(1) 29% 27% 21% Contracted prices(1) Low-$60 Mid-$50 Mid-$50 ($/MWh) Current forward prices(2) $70 $61 $53 ($/MWh) Q4/19 Q4/20 Average spot price Average realized price 22% higher realized price of $56MWh Fo
Slide 8: Financial performance – Q4/20
Financial performance – Q4/20 Milder weather and lower dispatch impacted results $M, except per share amounts Q4/20 Q4/19 Change Alberta • Maximized value of credit offsets by deferring usage to future years with Revenues and other income(1) $516 $683 -24% higher carbon taxes • Mild weather and stro
Slide 9: Financial performance – 2020
Financial performance – 2020 $M, except per share amounts 2020 2019 Change Strong adjusted EBITDA Revenues and other income(1) $1,937 $1,963 -1% contributions from asset additions offset by the step Adjusted EBITDA(1) $955 $1,029 -7% down in Arlington’s 2020 toll agreement and one- Basic earnings pe
Slide 10: 2021 operational and financial targets
2021 operational and financial targets Positive outlook in the Alberta power market reinforces financial guidance Facility availability Adjusted EBITDA ($M) 95% 93% 93% $935 to $985 $975 to $1,025 $955 2020 2020 Target 2021 Target 2020 2020 Target 2021 Target AFFO ($M) Sustaining capex ($M) (1) $522
Slide 11: 2021 growth targets
• 7 renewable projects on-budget and on-time with commercial 2021 operations targeted from Q4/21 to Q4/22 growth • Repowering of Genesee 1 and 2 proceeds on-budget and targeted for 2023 and 2024 targets • $500 million committed capital for growth 11
Slide 12: Release of our 2020 Integrated Annual Report
Release of our 2020 Integrated Annual Report Key highlights • Capital Power’s resilience in the face of COVID-19 pandemic • Acceleration of our path to a lower carbon future and net carbon neutrality with Genesee 1&2 repowering and transition off coal in 2023 • Seven new renewable projects, includin
Slide 13: Questions?
Capital¢S pital RESPONSIBLE ENERGY FOR TOMORROW Questions?
Slide 14: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to inform the Company’s the impacts of market designs in our core markets; shareholders and potential investors about management’s assessment of Capital Power’s future plans and operati
Slide 15: Investor Relations
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