Slide 1: Our Strategy Driving Results
Our Strategy Driving Results 2023 Q4 | Analyst presentation 1
Slide 2: Agenda
Agenda 1. Business Highlights | Avik Dey - President & CEO 2. Financial Review | Sandra Haskins - SVP, Finance & CFO 3. Closing Remarks | Avik Dey - President & CEO 4. Q&A | Management Avik Dey Sandra Haskins President & CEO SVP, Finance & CFO 2
Slide 3: Forward-looking information and Non-GAAP financial measures
Forward-looking Non-GAAP financial information measures and ratios Cautionary statement Certain information in this presentation and responses to questions contain forward-looking The Company uses (i) earnings before net finance expense, income tax expense, information. Actual results could differ m
Slide 4: Territorial Acknowledgement
Territorial Acknowledgement In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the Indigenous Peoples of Turtle Island, or North America. Capital Power’s head office is located within the trad
Slide 5: 2023 Highlights
2023 Highlights Strong financial results, record generation Financial & operating results • Achieved record annual adjusted EBITDA of $1.455B • Record power generation of >32 TWh Strengthening our portfolio • Completed coal to gas conversion of Genesee 3; advanced Genesee 1 and Genesee 2 Repowerin
Slide 6: 2023 Highlights: Achieved financial guidance and credit metrics
2023 Highlights Achieved financial guidance and credit metrics Results consistent with revised Annual Adjusted Quarterly Adjusted EBITDA ($M) EBITDA ($M) adjusted EBITDA guidance $313 • Favorable results from U.S. and Ontario segments $1,455 • Full year contribution of Midland Cogeneration Venture •
Slide 7: Growing through decarbonization and diversification
Growing through decarbonization and diversification 10-year total shareholder return CAGR of 12.5% Coal/Dual Fuel Exposure (% Capacity) Adjusted EBITDA Growth 53% $1,455 44% 11% reduction CAGR $509 9% YE 2013 YE 2023 YE 2013 YE 2023 U.S. Exposure (% Capacity) Dividend Per Share Growth 50% $2.60 45%
Slide 8: Gas critical for reliability and net-zero future
Gas critical for reliability and net-zero future Total installed U.S. capacity (all sectors) 2022 2050 U.S. Capacity (TW) 2.5 2.0 30% 29% 38% 1.5 Estimated 1.0 61% Peak 9% Demand 0.5 33% 0.0 Total 1.1 TW Total: 2.2 TW 2022 2050 • Capacity expected to grow to >2 TW in 2050 to meet growing demand (pea
Slide 9: Increasing capacity and reducing emissions
Increasing capacity 32 380 512 > > + and reducing TWh MW MW emissions Record generation in company history Additional renewable capacity being advanced Additional net capacity Record generation achieved with Total Portfolio Pathway to Net Zero Genesee Repower declining emissions intensity 40 100 3.4
Slide 10: 2024 Operational and Financial Targets
2024 Operational and Financial Targets Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) $180 to $770 to $200 $1,405 to 95% $1,505 $870 93% $1,455 $819 $127 2023 2024T 2023 2024T 2023 2024T 2023 2024T • Strong fleetwide performance – facility availability reflects Genesee Re
Slide 11: Q4/23 results
Q4/23 results Strong fleetwide performance • Revenue and other income before mark-to-market declined due to mild weather and decreased natural gas prices resulting $887M $313M in lower realized power prices on the Alberta commercial portfolio, Goreway, and Arlington Valley -15% yoy +3% yoy Revenues
Slide 12: Full year financial performance
Full year financial performance Record year of Adjusted EBITDA • Revenue and other income before mark-to-market benefitted primarily from optimization activities of our Alberta Commercial $3.718B $1.455B portfolio +11% yoy +8% yoy • Benefits of a diversified fleet demonstrated by strong Revenues and
Slide 13: 2023 Capital Allocation Update
• Maintained FFO / Debt of 20% or higher 2023 Capital Leverage and liquidity • Preserved BBB- / BBB(low) credit rating (S&P / DBRS) • Liquidity of ~$1B (post closing La Paloma, Harquahala) Allocation • Largest acquisition in company’s history Update External • $400M in common equity including priv
Slide 14: Alberta commercial portfolio
Alberta commercial portfolio Reducing volatility and risk through hedging GWh Power Hedged Volume 2024 2025 2026 10,000 Power 9,000 8,000 Hedged volume (GWh) (3) 10,500 9,500 8,000 7,000 Weighted average hedged prices(1) ($/MWh) (3) High-$70s High-$70s High-$70s 6,000 5,000 Forward Alberta power pri
Slide 15: Our Strategic Pillars
Our Strategic Pillars 2024 priorities DELIVER BUILD CREATE 1 Reliable & affordable power today 2 Decarbonized power systems for tomorrow 3 Real net-zero power solutions for customers • Provide safe, reliable generation • Complete $1.35B • Advance low-carbon solutions Genesee Repowering project; to m
Slide 16: Investor Day 2024
• Event hosted at the JW Marriott Edmonton ICE District May 7, 2024 Investor • • Tour of Genesee site Evening reception May 8, 2024 Day2024 • Breakfast and registration • Presentations and Q&A • Lunch 16
Slide 17: Check out our 2023 Integrated Annual Report
Check out our 2023 Integrated Annual Report for full-year highlights and ESG disclosures capitalpower.com/IAR 17
Slide 18: Questions & Answers
Questions & Answers 18
Slide 19: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to inform our • electricity and other energy and carbon prices; shareholders and potential investors about management’s assessment of Capital Power’s future plans and • performance; opera
Slide 20: Investor Relations
Investor Relations Roy Arthur VP, Investor Relations capitalpower.com 1-403-736-3315 investor@capitalpower.com 20