Annual General Meeting May 25, 2016

Transcription

1 Annual General Meeting May 25, 2016 Agenda 1. Formal meeting 2. Management presentation 3. Q&A period NPI.TO 0

2 Formal Meeting Call to Order Notice of Meeting Quorum and Voting Procedure Presentation of Financial Statements and Auditor s Report Nomination / Election of Directors Re-appointment of Auditors Termination of Formal Meeting 1

3 Board Members James C. Temerty Chairman The Right Honourable John N. Turner, Q.C. Linda L. Bertoldi Marie Bountrogianni Barry Gilmour Russell Goodman 2

5 Forward-Looking Statements Disclaimer This written and accompanying oral presentation contains certain forward-looking statements which are provided for the purpose of presenting information about management s current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as expects, anticipates, plans, believes, estimates, intends, targets, projects, forecasts or negative versions thereof and other similar expressions, or future or conditional verbs such as may, will, should, would and could. These statements may include, without limitation, statements regarding future adjusted EBITDA or adjusted EBITDA, cash flows and dividend payments, the construction, completion, attainment of commercial operations, cost and output of development projects, plans for raising capital, and the future operations, business, financial condition, financial results, priorities, ongoing objectives, strategies and outlook of Northland and its subsidiaries. This information is based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management s current plans, its perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, construction risks, counterparty risks, operational risks, the variability of revenues from generating facilities powered by intermittent renewable resources and the other factors described in the Risks and Uncertainties section of Northland s 2015 Annual Report and 2015 Annual Information Form, which are both filed electronically at and Northland s website Northland s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur. The forward-looking statements contained in this presentation are based on assumptions that were considered reasonable at time of delivery. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. All figures are presented in Canadian dollars unless otherwise indicated. 4

6 Company Overview Growth-oriented international power producer 27 operating facilities in Canada and Europe totaling more than 1,388 MW Well-diversified, modern fleet of high-quality assets Proven operating, development and construction expertise Strong contracted cash flow base supports annual dividend Management has a vested interest through a 35% ownership interest In operation Under construction 5

7 Northland s Evolution 6

8 Our Ambition and Successes Since our merger in 2009, Northland s Board of Directors in consultation with the Leadership team have set objectives to develop high-quality power projects that will drive shareholder value Northland has executed on this strategy through successfully delivering 20 projects into operations since the merger Northland has captured new opportunities in jurisdictions and technologies that leverage our expertise and is consistent with our risk-reward profile 7

9 have continued to deliver Superior Shareholder Returns 1000% 900% 800% 700% 600% 500% 400% 300% 200% 100% 0% April '97 Total Annual Shareholder Return 1-year 33% 5-year 13% 10-year 12% Since inception 13% YEAR Merger Northland delivered a total shareholder return of 33% over the past year and 13% since inception in 1997 Northland Power Peer Group TSX 8

10 $182M Millions of CAD $402M Strong and Growing Financial Results $500 Adjusted EBITDA and Free Cash Flow $400 EBITDA CAGR: 31% $300 $200 $100 $ EBITDA and Free Cash Flow increased by 10% and 11%, respectively, over

11 Evolution of Northland since the 2011 Offshore Wind Europe Nordsee One Gemini Onshore Wind Solar Thermal ,005 MW ,006 MW ,329 MW ,345 MW ,338 MW 2016 F 1,388 MW 2017 F 2,029MW 10 NPI s net economic interest

12 Adjusted EBITDA Diversification Adjusted EBITDA expected to more than double by 2018 Forecasted Adj. EBITDA contribution from offshore wind projects *The above chart is illustrative of managements objectives. They are based upon Northland s operating facilities continuing to perform in a manner consistent with operations in 2015, with additions to Adjusted EBITDA from projects under construction and other adjustments resulting from power contract renewals primarily in Ontario all as described in our MD&A and 2015 AIF. The illustrations do not constitute a financial forecast, projection or guidance and are based upon assumptions that are subject to change. 11

13 Northland s Successes in the Past Year Construction Significant advancements on construction portfolio Financial Results Robust financial performance surpassed the previous year Operations Maintained operational excellence across 27 facilities Development Successfully advanced and positioned projects in the development pipeline 12

14 Executed on Construction Projects Gemini 600 MW offshore wind farm Nordsee One 332 MW offshore wind farm Offshore Wind Europe Project Costs: Over 4 billion COD: % interest COD: End of % interest Gemini 60 kilometers apart Nordsee One Management focused on executing 932MW * of projects currently under construction *Northland s economic interest totals 642 MW. 13

15 Offshore Wind Projects Construction timeline Install Foundations Today Install Offshore Substation Installation of Cable Turbine Installation First Power COD Install Foundations Install Offshore Substation Installation of Cable Turbine Installation First Power COD Construction continues to progress well 14

16 Gemini Pictures Size: 600MW Cost: 2.8 billion NPI Interest: 60% 15 COD: 2017

17 Gemini Offshore Substation Jackets August 2015: Installation of both offshore substation foundations (Jackets) 16

18 Gemini Offshore substation installed on jacket August 2015: Installation of offshore substation on top of jacket 17

19 Gemini Offshore Substation 18

20 Gemini Nacelles, Towers, and Blades at Port 19

21 Gemini Turbine Installation February 2016: First Turbine Installed To date 54 Turbines have been installed 20

22 Nordsee One Pictures Size: 332MW Cost: 1.2 billion NPI Interest: 85% COD:

23 Nordsee One Offshore Substation TenneT offshore substation 22

24 Nordsee One Offshore Substation All foundations installed 23

25 Nordsee One Offshore Substation May 2016 Jacket Foundation installed 24

26 Nordsee One Construction Update Substation jacket Foundations at port Foundations transported to sea Foundation installation Substation jacket 25

27 Executed on Construction Projects Canadian Renewable Projects Grand Bend 100MW wind farm Closed $400 million debt and equity financing Completed installation of all turbines Declared COD on April 19, 2016 Ground-mounted Solar 130MW solar farms Completed final four 10 MW ground-mounted solar facilities in 2015 All ground-mounted solar are now in operation and operating as expected 26

28 Operations Highlights Our operational assets (net generating capacity of 1,388 MW) met or exceeded management s expectations Overall availability of 96% across 27 operating facilities Zero lost time incidents Extended Kirkland Lake power purchase agreement for baseload facility to 2030 and the peaking facility to 2035 KIRKLAND LAKE, ONTARIO 27

29 Development Focus on high quality projects 28

30 Where To Next? Focus on International DeCarbonisation Creates Growth Opportunities Climate change conference in Paris was latest step to achieve a new global climate agreement Different countries agreed to adopt their own targets I.e. Europe indicated plan to reduce greenhouse gas emissions by 40% by 2030 Northland is in a prime strategic position to benefit from this initiative in Europe and across the globe Continue to seek out technologies in jurisdictions where we can apply an early mover advantage 29

31 Where To Next? Development Focus Stable jurisdictions Attractive risk profile Larger, contracted opportunities Primarily organic and late-stage development opportunities 30

32 Building on Corporate Foundation Northland continues to build a corporate foundation to support stable growth and deliver on long-term plan: Enterprise Resource Planning (ERP) system, Enterprise Risk Management (ERM) program, Corporate Social Responsibility (CSR) program, Employee Engagement - Goals/Feedback program 31

33 Looking Ahead in 2016 Objectives Construction Projects Execute well Focus on development pipeline Operations Continue to advance and secure high quality projects Diversifying across locations and technologies Continue and improve excellent operating track record Successful conclusion of Kingston PPA Re-contracting 32

34 Summary We will continue to execute and Measured Growth Sustainable Dividend Management Commitment deliver on our promises. 33

36 Investor Relations Contacts Adam Beaumont Director of Finance Barb Bokla Manager, Investor Relations Sarah Charuk Director of Communications northlandpower.ca 35