Slide 1: Q4/15 Analyst Conference Call
CAPITAL POWER Q4/15 Analyst Conference Call February 19, 2016 Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO Beaufort Solar, NC
Slide 2: Forward-looking information
Forward-looking information Cautionary statement Certain information in this presentation and in responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material fac
Slide 3: Non-GAAP financial measures
Non-GAAP financial measures The Company uses (i) earnings before finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, income from joint venture, and gains on disposals (adjusted EBITDA), (ii) funds from operations (FFO), (iii) normalized
Slide 4: 2015 Summary
2015 Summary Solid performance in 2015 with Company meeting or exceeding its annual operating and financial targets • Average plant availability of 95% compared to 94% target • Generated $400M in FFO, at the upper end of $365M-$415M target Continued to strengthen contracted cash flows with the a
Slide 5: Alberta Climate Leadership Plan
Alberta Climate Leadership Plan Accelerated phase-out of coal facilities, replacement with renewables and merchant natural gas Phase out coal-fired power by 2030 and replace at least two-thirds of retired coal generation with renewable power Capital Power is the 1,500 Generation built in AB sinc
Slide 6: Alberta Climate Leadership Plan
Alberta Climate Leadership Plan Compensation for accelerated phase-out of coal facilities Government of Alberta (GOA) committed to avoid “unnecessarily stranding capital” and “treat companies fairly” Believe we will be fairly compensated for early shutdown of Genesee 1 & 2 and our 50% interest i
Slide 7: Genesee 4&5 project
Genesee 4&5 project Next large natural gas-fired facility to be built in Alberta Limited construction activities took place in 2015 due to GOA’s Climate Leadership Plan (CLP) Full notice to proceed (FNTP) deadline with turbine manufacturer has been deferred by up to 90 days from March 1, 2016
Slide 8: Q4/15 Operating performance
Q4/15 Operating performance Plant availability Q4/15 Q4/14 Alberta commercial Genesee 3 100% 74% Outstanding plants Keephills 3 100% 92% operational Clover Bar 97% 90% performance in Joffre 100% 82% Q4/15 with 99% Shepard 98% N/A average plant Halkirk 96% 98% Alberta contracted Genesee 1 99% 100%
Slide 9: Proven track record of high fleet availability
Proven track record of high fleet availability Average annual plant availability of 93% in the past 5 years 18,000 100% 16,000 98% 14,000 12,000 96% Generation 10,000 95% 95% (GWh) 8,000 94% 6,000 93% 92% 4,000 92% 91% 2,000 0 90% 2011 2012 2013 2014 2015 Generation Average plant availability 9
Slide 10: Q4/15 Financial review
Q4/15 Financial review Strong quarter with 99% average plant availability and 23% increase in electricity generation compared to Q4/14 Generated $125M of FFO (highest quarter since Q3/12) Normalized EPS of $0.42 compared to $0.20 in Q4/14 Despite a 30% decline in average Alberta power prices
Slide 11: Alberta power market trading
Alberta power market trading Portfolio optimization activities focused on managing exposure to commodity risks, reducing volatility and creating incremental value Average realized power price(1) has exceeded spot power prices ($/MWh) by 25% on average in the past six years $125 $100 $75 $50 $25 $0
Slide 12: Financial performance – Q4/15
Financial performance – Q4/15 $M, except per share amounts Q4/15 Q4/14 Change Revenues $341 $432 (21%) Adjusted EBITDA (before mark-to-market)(1) $133 $104 28% Basic earnings per share $0.29 $0.40 (28%) Normalized earnings per share $0.42 $0.20 110% Funds from operations $125 $102 23% Generating pla
Slide 13: Financial performance – 2015
Financial performance – 2015 $M, except per share amounts 2015 2014 Change Revenues $1,251 $1,228 2% Adjusted EBITDA (before mark-to-market)(1) $462 $387 19% Basic earnings per share $0.70 $0.28 150% Normalized earnings per share $1.15 $0.72 60% Funds from operations $400 $362 10% 2015 results showe
Slide 14: Financial outlook
Financial outlook 2016 FFO guidance of $380M to $430M based on Alberta baseload plants 100% hedged Alberta portfolio hedged positions As of Dec 31/15 2016 2017 2018 Percentage sold forward 100% 38% 9% Average contracted prices(1) High-$40 Low-$50 Mid-$60 ($/MWh) Average forward prices $35 $40 $5
Slide 15: 2015 Performance and 2016 targets
2015 Performance and 2016 targets Operational and financial targets Plant availability Sustaining capex ($M) 95% $65 $65 94% 94% $62 2015T 2015 2016T 2015T 2015 2016T Plant operating & maintenance expenses ($M) Funds from operations ($M) $365 - $415 $400 $380 - $430 $200 - $220 $180 - $200 $192 2015
Slide 16: 2016 Disciplined growth targets
2016 Disciplined growth targets On-time, on-budget and safe development of committed projects Genesee 4&5 (Alberta) New development Transition from development to Execute a PPA for a new construction development Timing based on clarity with respect to Bloom Wind (180 MW project impact of dec
Slide 17: Questions?
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Slide 18: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation and in responses to questions are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information m
Slide 19: Investor Relations Contact
Investor Relations Contact Randy Mah Senior Manager (780) 392-5305 rmah@capitalpower.com Head Office 10th Floor 10423 – 101 Street NW Edmonton, AB T5H 0E9 www.capitalpower.com