Slide 1: Analyst Conference Call Q3, 2011 Review
Analyst Conference Call Q3, 2011 Review Brian Vaasjo, President & CEO Stuart Lee, SVP & CFO October 26, 2011
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: Corporate updates
Corporate updates Keephills 3 COD on Sep 1/11 of 495 MW jointly-owned facility with TransAlta Most technologically advanced coal-fired plant in Canada Final construction costs in line with our 2011 target Increases our generation portfolio to more than 1,700 MW in the attractive Alberta powe
Slide 4: Q3/11 Highlights
Q3/11 Highlights Q3 financial results in line with expectations Normalized earnings per share of $0.43 in Q3/11 Funds from operations, excluding non-controlling interests in CPILP, of $116M, up 33% YOY Excellent operating performance Average plant availability (excluding CPILP plants) was 97%
Slide 5: Q3/11 Operating performance
Q3/11 Operating performance Q3 Plant YTD Plant Availability Availability Excellent performance Alberta commercial plants Genesee 3 100% 100% Q3/11 97% average Keephills 3 100% 100% availability vs. 93% in Q3/10 Joffre 99% 92% Q3 YTD average availability Clover Bar Energy Centre 91% 74% Taylor Co
Slide 6: Financial performance – Q3/11
Financial performance – Q3/11 $M, except earnings per share Q3/11 Q3/10 % Change Revenues and other income(1) $461 $464 (0.6%) EBITDA(1,2) $160 $62 158% Earnings per share $0.29 $0.74 (61%) Earnings per share (normalized)(2) $0.43 $0.64 (33%) Funds from operations(2) $144 $112 29% Funds from operati
Slide 7: Financial summary – Q3/11
Financial summary – Q3/11 Normalized EPS of $0.43 in line with expectations AB spot power prices averaged $95/MWh in Q3/11, which resulted in higher than anticipated margins for the AB commercial plants and portfolio optimization segment and higher availability incentive revenue for the AB contrac
Slide 8: AB commercial plants and portfolio optimization
AB commercial plants and portfolio optimization Q3/11 realized price for AB portfolio was $74/MWh compared to $95/MWh average AB spot price High average spot price due to increased demand and reduced supply from several plant outages including Company's PPAs held at Sundance and Saskatchewan tie
Slide 9: New England 2011 expectations
New England 2011 expectations Previous 2011 EBITDA guidance (including unrealizied gains) of $51 to $55M If current estimates of forward power prices and spark spreads are consistent with realized prices, we expect the New England facilities to contribute ~$29 to $33M to 2011 EBITDA (excluding u
Slide 10: 2011 corporate priorities
2011 corporate priorities Priority Progress (Q3 YTD) Operational targets • Plant availability of ≥ 94% 94% – CPC capacity-weighted plant availability (one Genesee turnaround planned for 2011) • Maintenance capital of approximately $56M(1) $38M – Plant maintenance and Genesee mine extension Developme
Slide 11: 2011 corporate priorities (cont’d)
2011 corporate priorities (cont’d) Original financial targets(1) (Jan/11) Normalized EPS(2) Funds from operations(3) $1.50 $300 2011 Target YTD Result $1.00 $1.16 $200 $264M $0.50 YTD Result $100 2011 Target $0.87 $257M + $0.00 $0 Cash flow per share Dividend coverage ratio $4.00 2.5 2011 Target YTD
Slide 12: Questions?
Questions? Investor Relations (780) 392-5305 (866) 896-4636 (toll-free) investor@capitalpower.com www.capitalpower.com 12
Slide 13: CPILP results included in CPC consolidated results
Appendix CPILP results included in CPC consolidated results(1) Plus ($M) Less adjustment For the 9-month CPILP Accounting for North CPC results period ending CPC (reported adjustments(2) Carolina without Sep 30/11 Consolidated results) facilities CPILP EBITDA 280.0 111.3 9.3 2.4 180.5 Depreciation (
Slide 14: Forward-looking information
Forward-looking information Certain information in this presentation is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as will, anticipate, believe, plan, intend, target, a
Slide 15: Forward-looking information (cont’d)
Forward-looking information (cont’d) These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. The material fact
Slide 16: Forward-looking information (cont’d)
Forward-looking information (cont’d) This presentation includes the following updates to previously disclosed forward-looking statements: (i) the full year sustaining capital estimate has been updated to add $8 million for land purchases for the Genesee mine; (ii) expectations regarding normalized e
Slide 17: Non-IFRS financial measures
Non-IFRS financial measures The Company uses (i) EBITDA, (ii) funds from operations, (iii) funds from operations excluding non-controlling interests in CPILP, (iv) cash flow per share, (iv) normalized earnings attributable to common shareholders, (v) normalized earnings per share, and (vi) dividend
Slide 18: Non-IFRS financial measures (cont’d)
Non-IFRS financial measures (cont’d) (unaudited, $millions) Three months ended Nine months ended Sept 30, Sept 30, Sept 30, Sept 30, 2011 2010 2011 2010 Revenues $ 414 $ 492 $ 1,309 $ 1,277 Other income 19 21 54 50 Energy purchases and fuel (189) (277) (735) (757) Gross income 244 236 628 570 Other
Slide 19: Non-IFRS financial measures (cont’d)
Non-IFRS financial measures (cont’d) A reconciliation of (i) funds from operations and (ii) funds from operations excluding non-controlling interests in CPILP, to cash flows from operating activities is as follows: (unaudited, $millions) Three months ended Nine months ended Sept 30, Sept 30, Sept 30
Slide 20: Non-IFRS financial measures (cont’d)
Non-IFRS financial measures (cont’d) Normalized earnings and normalized earnings per share The Company uses normalized earnings per share to measure performance by period on a comparable basis. Normalized earnings per share is based on earnings used in the calculation of earnings per share according
Slide 21: Non-IFRS financial measures (cont’d)
Non-IFRS financial measures (cont’d) Dividend Coverage Ratio Capital Power uses the dividend coverage ratio as a measure of the Company’s ability to pay dividends and distributions to its shareholders and CPLP’s exchangeable common limited partnership unitholders from funds it generates from operati