Forward-Looking Information

Transcription

1 C OPage M P A1 N Y P R E S E N T A T I O N / F e b r u a r y

2 Forward-Looking Information This presentation contains certain forward-looking information within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, management s expectations regarding Alterra s production capacity, results of operations, requirements for capital, future demand for and prices of electricity, timing and cost of construction and COD for the Jimmie Creek project, dividend potential, power generating capacities and Alterra s business prospects and opportunities. These statements reflect the current views of Alterra with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by Alterra, are inherently subject to significant business, economic, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause Alterra s actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this presentation, and Alterra has made assumptions based on or related to many of these factors. Such factors include, without limitation: fluctuations in currency markets (particularly with respect to the Icelandic krona, the U.S. dollar and Canadian dollar); risks related to the technological and operational nature of Alterra s business; changes in national or regional governments, legislation, regulation, permitting or taxation; political or economic developments in Canada, the United States, Iceland or other countries where Alterra may carry on business; risks and hazards associated with the business of renewable energy generation; risks relating to the creditworthiness and financial condition of suppliers and other parties which Alterra will deal with; inadequate insurance or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with and claims by local communities and First Nations; availability and costs of equipment and labour; litigation; the success and timely completion of planned expansion and development programs; the growth rate in net electricity consumption; support and demand for renewable energy; government initiatives to support the development of renewable energy generation; delays or cost overruns in the construction of our projects; imprecision of estimations of resources; fluctuations in weather; the reliability of technical data and capital expenditure estimates; and availability of capital to fund development and expansion programs and such other risks identified under the heading Risk Factors in our Annual Information Form for the year ended December 31, Forward-looking information and statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur. Although Alterra has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicable securities laws, Alterra does not assume any obligation to update or revise such forward-looking information to reflect new events or circumstances. Page 2

3 Alterra Power Company Mission Company Mission Dokie 1 Wind Farm Mission to be a leading global renewable power company through: Successful origination and development of new utility-scale projects Opportunistic acquisitions of other renewable power projects and development assets Excellence in production and safety as a premier operator/manager Shannon Wind Farm Substation Page 3

4 Alterra Power Quick Facts Quick Facts Incentivized shareholder base: 35% management-owned; remainder retail / institutional Large expansion in progress: Shannon operations began in December; Jimmie Creek in summer 2016 Historically exceeding base case P50 generation: 100.5% in 2014, 100.9% in 2015 Exceptionally long contract life: 23 years in North America (18 years including Iceland) Access to capital: Almost $1.0 billion raised in last 18 months; high availability of capital for asset class Toba Montrose Hydro Facility Page 4

5 Alterra Power Asset Map Global Partners: Axium Infrastructure Starwood Energy Group Energy Development Corporation (EDC) Jarðvarmi Graziella Green Power Generating Capacity: Today 349 MW Owned 757 MW Operated Summer MW Owned 819 MW Operated Page 5

6 Alterra Power Project Characteristics Geography / Technology Focus New project development / acquisition by Alterra: Location: Focus on North America and other locations with: Strong power markets / offtakes Robust resource Sufficient transmission capacity Strong contractual law framework Technology: Focus on proven, core renewable technologies Wind / Hydro / Solar / Geothermal Deep Alterra expertise in each technology Shannon turbines, September 2015 Development Construction Operating Wind Hydro Geothermal Solar Page 6 TOTAL ~4,000 MW 62 MW 757 MW NET INTEREST 32 MW 349 MW

7 Alterra Power Global Fleet Alterra Power Plants / Remaining Contract Life Operations Toba Montrose Hydro Capacity: 235 MW Contract: 29 years Ownership: 40% Alterra Svartsengi Geothermal Capacity: 74 MW Contract: Multiple Ownership: 66.6% Alterra Dokie Wind Capacity: 144 MW Contract: 20 years Ownership: 25.5% Alterra Reykjanes Geothermal Capacity: 100 MW Contract: Multiple Ownership: 66.6% Alterra Shannon Wind Capacity: 204 MW Contract: 13 years Ownership: 50% Alterra Current Construction Jimmie Creek Hydro Capacity: 62 MW Contract: 40 years Ownership: 51% Alterra Page 7

8 Alterra Power Reliable Project Construction Construction Track Record Alterra has completed every one of its projects on-time and on-budget Leadership teams that delivered those projects remain substantially in place (except Svartsengi) Jimmie Creek project is projected to come in ahead of schedule and under budget Plant Capacity Commercial Ops On-Time On-Budget Jimmie Creek 62 MW 2016E Shannon 204 MW 2015 Dokie 144 MW 2011 Toba Montrose 235 MW 2010 Reykjanes 100 MW 2006 Svartsengi 74 MW 1978 Shannon Construction (now completed) Page 8 Jimmie Creek Construction

9 Alterra Power Construction Completed Shannon Project Commercial operations commenced 10 December 2015 Tax equity investment closed concurrent with the start of operations Initial return of capital (US$3.5 million) received in late December Location Technology Capacity Estimated annual generation Ownership Clay County, Texas Wind 204 MW 794 GWh 50% Alterra Financial close June 2015 Project cost US $340 MM COD 10 December 2015 Shannon turbines under construction (now completed) Page 9

10 Alterra Power Current Construction Jimmie Creek Project Penstock and powerhouse construction complete Intake construction to be completed in Q All equipment manufactured and delivered Turbine-generator installation and commissioning underway On schedule and budget Location Technology Capacity Estimated annual generation Ownership Contract length British Columbia Hydro 62 MW 159 GWh 51% Alterra 40 years Financing closed October 2014 Project cost (est.) $227 MM Projected COD 3Q 2016 Jimmie Creek powerhouse under construction Page 10

11 Alterra Power Next Phase of Growth Development Projects / Activities British Columbia Iceland USA Chile Other Hydro Tahumming (15 MW) South Toba (50 MW) Fir Point Pumped Storage (1,000 MW) Bute Inlet (1,000 MW) Wind Dokie 2 (156 MW) Coastal Wind Knob Hill Hydro Hvalá (55 MW) Bulandsvirkjun (150 MW) Brúarvirkjun (10 MW) Skúfnavatnavirkjun (10 MW) Geothermal Reykjanes 3+4 (80 MW) Eldvörp (50 MW) Krýsuvik (500 MW) Wind Several large projects in progress Solar Soda Lake (40 MW) Mid-to late-stage assets Geothermal Mariposa (320 MW inferred) Drilling projected to begin late 2016 Solar Mid- to late-stage assets Geothermal Peru Five early-stage projects Italy / Tuscany Roccastrada Mensano Page 11

12 Alterra Power Next Phase of Growth 2016 Growth Goals Advance several large-scale projects in the USA that will utilize the recently extended Production Tax Credit and Investment Tax Credit programs Complete construction of Jimmie Creek project On schedule to begin operations in Summer 2016 Advance small hydro opportunities in British Columbia Active development of Icelandic assets in improved power market Commence primary drilling operations at Mariposa / Chile Program scheduled to begin in late 2016; ~US$50 million budget (funded by partner) Page 12

13 Alterra Power Iceland Assets 2016 Goals in Iceland Advance development of growth assets: Hydro: Hvalá 55 MW Brúarvirkjun 10 MW Geothermal: Reykjanes IV 30 MW Eldvörp 30 MW Other development projects include hydro / wind / geothermal Optimize / increase current generation Complete Reykjanes field maintenance program / commence re-injection Complete Svartsengi drilling program and new effluent pipeline Refinance holding company bonds (US$120 MM) Prepare exploratory deep drilling program at Reykjanes field Expansion of Blue Lagoon resort facility (30% owned); no capital injection required Page 13

14 Alterra Power Value to our Shareholders Value Proposition Yield + Growth Combination: Reliable existing fleet + continuous new projects added globally Valued Asset Class: Large, utility-scale renewable power assets with consistent cash flow streams Core Management Skills: Strong recent track record as developer / constructor / operator Capital / Financing: Proven ability to raise new capital efficiently Quality of Cash Flows: Predictable, long-term contracted revenue Exceptionally long average contract life Primarily AAA-rated offtake Resource Life: Essentially permanent resources to drive long asset life Healthy Diversification: Multiple geographies and proven clean energy technologies Upsides for current investors: Significant operational growth phase near realization (Shannon + Jimmie Creek = 50% growth) Extension of USA Production Tax Credits fosters significant growth opportunities through 2021 Growing stable of development assets is rapidly advancing Potential to commence regular dividends in near term Increased attractiveness of asset class to infrastructure investors Page 14

15 Alterra Power Management Management Structure / Profiles Ross Beaty, Executive Chairman 40 years experience as entrepreneur in minerals and renewables Founded Alterra (Magma) in 2008 FINANCE / TRANSACTION LEADERS Lynda Freeman, CFO 12+ years finance experience Multiple closed transactions John Carson, CEO 15+ years experience in finance and renewable business leadership Billions of $ in closed transactions DEVELOPMENT / OPERATIONS LEADERS Paul Rapp, VP Wind + Geothermal Power 20+ years power experience Delivered Shannon + Dokie projects Jon Schintler, VP Project Finance 12+ years finance experience Led Jimmie/Shannon/AMP financings Jay Sutton, VP Hydro Power 15+ years infrastructure experience Delivered Toba and Jimmie projects Shannon Webber, General Counsel 12+ years legal experience Key role: Jimmie/Shannon/AMP Murray Kroeker, VP Solar Power / Eng. 25+ years renewables experience Delivered ABW project Ásgeir Margeirsson, CEO, Iceland business 20+ years geothermal experience Former COO of Reykjavik Energy Page 15

16 Alterra Power Premier Clean Energy Producer Page 16