Northland Power Inc. · TSX:NPI
Northland Power — Merger or Acquisition (April 2021)
26 slides from Northland Power's merger presentation, Apr 14, 2021
Slide 1: Northland Power – Business Update & Spanish Onshore Renewables Acquisition
Northland Power – Business Update & Spanish Onshore Renewables Acquisition April 14, 2021 Intelligent energy for a greener planet A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authori
Slide 2: Table of Contents
Table of Contents 1. Key Messages & Business Update 2. Recent Events 3. Spanish Onshore Renewables Portfolio Acquisition Highlights 4. Offering Use of Proceeds & Adjusted EBITDA 5. Appendix Northland Power Inc. – Business Update & Spanish Onshore Renewables Acquisition 2
Slide 3: Disclaimers
Disclaimers This presentation is qualified in its entirety by reference to, and must be read in conjunction with, the information contained in the prospectus supplement of Northland Power Inc. (“Northland” or the “Company”) to its base shelf prospectus dated June 16, 2020. Neither the Company nor or
Slide 4: Disclaimers
Disclaimers FUTURE-ORIENTED FINANICAL INFORMATION This presentation contains projected financial information with respect to Northland. Such projected financial information constitutes future oriented financial information, is included for illustrative purposes only and should not be relied upon as
Slide 5: 1. Key Messages & Business Update
1. Key Messages & Business Update Northland Power Inc. – Business Update & Spanish Onshore Renewables Acquisition 5
Slide 6: Key Themes for Northland's Strategy
Key Themes for Northland’s Strategy Resilient Operations & Global Growth Platform Continue to Deliver Superior • 30+ year track record of market leadership and value creation in renewables 1 Value to Shareholders • Accelerating growth with continued focus on offshore wind Resilience and Strength • C
Slide 7: Accelerating Growth
Accelerating Growth Northland’s Capital Allocation Focused on Renewable Growth Offshore Wind Onshore Renewables Utilities Increase Exposure Increase Exposure Increase Exposure Efficient Natural Gas Energy Storage Renewable Green Fuels (e.g. Hydrogen, Renewable Natural Gas) Reduce Exposure Establish
Slide 8: Accelerating Growth (Cont'd)
Accelerating Growth (Cont’d) Balancing Long-Term Growth with Near-Term Cash Flow 2021 – 2025 Objective 2026 – 2030 Objective Accelerating Growth Focus on Providing Near-Term Cash Flow Development of Onshore Renewable Projects Offshore Wind Drives Significant Growth 1 1 with Shorter Incubation Period
Slide 9: Announced Growth Targets
Announced Growth Targets Northland to Double Business by the latter half of the Decade 4 – 5 GW in Identified $15 - $20+ Billion1 in Potential Capital Development Projects focused on offshore Investments over the Next 5 Years wind Double-Digit IRRs on More than Double Adjusted EBITDA to Offs
Slide 10: Northland Strategy Recap
Northland Strategy Recap Key Priorities Over Next Five Years Leverage Strong Position in Offshore Wind 1 Press strong position in offshore wind by sourcing and advancing large-scale projects in key identified target markets Execute Near-Term Growth 2 Secure near-term growth through onshore renewable
Slide 11: 2. Recent Events
2. Recent Events Northland Power Inc. – Business Update & Spanish Onshore Renewables Acquisition 11
Slide 12: Recent Events
Recent Events Development Updates 1. Closed 49% acquisition of Baltic Power (Poland Offshore Wind Project) with partner PKN Orlen on March 24, 2021 and applied for the 25-year CfD contract with expected award by mid-year 2021 2. Accepted NY Wind (Onshore Renewables) 20 year indexed renewable energy
Slide 13: 3. Spanish Onshore Renewables Acquisition Highlights
3. Spanish Onshore Renewables Acquisition Highlights Northland Power Inc. – Business Update & Spanish Onshore Renewables Acquisition 13
Slide 14: Investment Thesis
Investment Thesis A Leading Renewable Power Portfolio in the Spanish Market • Government mandate to achieve 70% renewables by 2030 ― 35 – 40 GW of onshore renewables capacity by 2030 Spanish ― 16.5 GW of new renewable procurement expected over the next 5 years 1 Growth Opportunity ― Alternative off-
Slide 15: Transaction Summary
Transaction Summary Attractive Entry Point with Consistent Investment Grade Financing Plan • €345 million (~$520 million) of cash consideration Purchase Price • Including assumed non-recourse debt of €716 million (~$1,075 million) and implies TEV of €1.1 billion (~$1.6 billion) • Consistent with Nor
Slide 16: High Quality, Long-term Regulated Renewables Portfolio
High Quality, Long-term Regulated Renewables Portfolio Expansion into Spain with an Industry Leading Multi-Technology Portfolio Spanish Portfolio Overview Asset Locations in Spain • Portfolio is 540 MW (net) comprised of onshore renewables with a regulated tariff – ~80% of the portfolio consists of
Slide 17: Attractive Spanish Renewables Market
Attractive Spanish Renewables Market Future Growth Potential with Announced Coal and Nuclear Phase-Outs Supporting Renewables Growth Key Development Areas Spain requires an additional ~80 TWh / ~37 GW of Multiple options for offtake including: Corporate PPAs, renewables to meet its 70% renewable e
Slide 18: Scale Operating Footprint To Expand Platform
Scale Operating Footprint To Expand Platform An Industry Leading Proven Portfolio in Spain • Acquisition places Northland as a top 10 onshore renewable asset owner in Spain ― Spanish Portfolio is one of the largest portfolios in Spain by operational capacity – top 10 overall and a top 5 amongst inte
Slide 19: Pro Forma Impact of Spanish Renewables Transaction
Pro Forma Impact of Spanish Renewables Transaction Portfolio Provides Scale and Diversity in Attractive Growth Market in Europe Pro Forma Net Installed Capacity Total Net Capacity Europe Net Capacity 2,806 MW 2,266 MW 1,434 MW 894 MW Current Pro Forma Current Pro Forma Pro Forma 2021E Adjusted EBITD
Slide 20: Key Transaction Highlights
Key Transaction Highlights Attractive Acquisition Opportunity Providing Re-Entry into European Onshore Renewables • Positions Northland as top 10 owner of operating onshore renewables in Spain and provides better access to growth opportunities locally and elsewhere in Europe Strategically Sound • Im
Slide 21: 4. Financing
4. Financing Northland Power Inc. – Business Update & Spanish Onshore Renewables Acquisition 21
Slide 22: Use of Proceeds of the Offering
Use of Proceeds of the Offering $900 Million Public Offering to Support Spanish Acquisition and Northland’s Identified Development Growth Opportunities April 2021 Proposed Offering Use of Gross Proceeds ~$380M** Equity capital requirements including acquisition ~$520M costs for Baltic Power and expe
Slide 23: 5. Appendix
5. Appendix Northland Power Inc. – Business Update & Spanish Onshore Renewables Acquisition 23
Slide 24: Asset Photos
Asset Photos Onshore Wind Assets (Sample) Carcelen wind farm (50 MW) located in Albacete (east coast of Spain, south of Madrid) Tella wind farm (50 MW) located in Murica (east coast of Spain, south of Madrid) Solar PV Assets (Sample) Casatejada solar PV plant (10 MW) located on the west coast of Spa
Slide 25: Asset Photos (Cont'd)
Asset Photos (Cont’d) CSP (Concentrated Solar Power) Asset (Lebrija) Northland Power Inc. – Business Update & Spanish Onshore Renewables Acquisition 25
Slide 26: Northland Power Investor Relations Contact
Northland Power Wassem Khalil Email: 30 St. Clair Avenue West, Senior Director Investor investorrelations@northlandpower.com 12th Floor Relations & Strategy Website: Toronto, ON Canada M4V 3A1 4 647.288.1019 northlandpower.com 26