(Deep drilling rig at Reykjanes: Fall 2016) 2 0 1 6 R E S ULTS CO NF E R ENCE CA LL 16 March 2017 www.alterrapower.ca TSX : AXY Page | 1
Forward-Looking Information Cautionary Note Regarding Forward Looking Information This presentation contains certain forward-looking information and statements and within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking information. Examples of such information in this presentation include, but are not limited to, statements with respect to future events or future performance, successful development, financing (including construction debt, tax equity and sponsor interest sales) and construction of our pre-operational projects and properties, Alterra Power Corp.'s (“ Alterra ”) successful acquisition from or partnership with the owners of projects currently owned by other developers, the success of Alterra's project acquisition, development and expansion programs and greenfield development efforts, all statements regarding the Company’s plans and expectations for the declaration of future dividends, including the timing and amount thereof, whether the wind development projects actually or ultimately qualify for all, or a portion of, the production tax credits, prospective generation, results of operations, and financial position, and the information found on the "Outlook" slide. These statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include, among others, the expected power generation from our operations, the success and timely completion of planned development, expansion and construction programs, and modeling and budgeting based on historical trends, whether Alterra's on-site and off-site early-stage construction activities will be sufficient to qualify the wind development projects for the full value of the PTCs; rules, regulation or other guidance may be promulgated pursuant to the Internal Revenue Code of 1986 (as the same may be amended, updated or otherwise modified from time to time) that could jeopardize or otherwise impede the effectiveness of such on-site and off-site early-stage construction activities qualifying such projects for the full value of the PTCs and securing tax equity financing on such basis, our use of proceeds from any equity financings is as currently forecasted, the expected timing for realizing the output capacity of the well, if any, due to the conceptual nature of the deep drilling preliminary output potential, the risk that there has been insufficient testing to define geothermal resource, assumptions concerning temperature and underground fluids, current conditions and expected future developments. Forward- looking statements and information also involve known and unknown risks that may cause actual results to differ materially from those expressed by such statements or information, and the Company has made assumptions and estimates based on or related to many of these factors. These risks include volatility of renewable energy resources, inherent risks in operating and constructing power plants and development programs related to the same, contractual risks related to credit facilities, partnership and power purchase agreements, prospective power, currency and commodity price fluctuations, the implementation of lower corporate tax rates may impede our ability to obtain sufficient amounts of tax equity investment or achieve desired economic returns, successful closing of the acquisition of certain of the wind development projects including without limitation successful completion of due diligence on such projects, negotiation of definitive purchase agreements, satisfaction or waiver of all conditions precedent thereto and the approval of Alterra's Board of Directors, future issuances of equity securities, health, safety, social and environmental risks and risks related to reliance on third parties. Additional risks, assumptions and influential factors are set out in the Company's management discussion analysis and Alterra's most recent annual information form, copies of which are available on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially, given the inherent uncertainties in such forward-looking statements and information, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against undue reliance on any such forward-looking statements or information, which apply only as of their dates. Other than as specifically required by law, Alterra undertakes no obligation to update any forward-looking statements or information to reflect new information. www.alterrapower.ca TSX : AXY Page | 2
Agenda / Participants • Ross Beaty Introduction Executive Chairman • John Carson CEO • Financials Lynda Freeman CFO • Operations Jay Sutton VP Operations • Paul Rapp VP Development • Murray Kroeker VP Engineering & Safety • John Carson – Re-Introduction of Team – Restatement of Mission CEO – Looking Ahead www.alterrapower.ca TSX : AXY Page | 3
Alterra Power 2016 Results Call Financials | Lynda Freeman, CFO 2016 Annual Consolidated Results: Consolidated Results ($MM) 2016 2015 Revenue 60.8 57.8 Gross profit 12.0 16.1 Equity income from investments 14.7 22.1 Other income (expenses) (17.6) (59.3) Income (loss) before tax 9.1 (21.1) Adjusted EBITDA* 48.5 46.4 • Consolidated revenue was $3.0 MM higher compared to prior year primarily due to strengthening of the Icelandic krona (ISK) • Gross profit declined $4.1MM predominantly due to an increase in power purchases undertaken to mitigate the lower output from Reykjanes • The decrease in equity income is primarily due to the recognition of a non-cash gain at Shannon related to the power hedge in 2015, partially offset by the part-year results of Jimmie Creek, and improved results from the Blue Lagoon • Other income (expenses) improved by $41.7 MM due to increased aluminum prices driving up the value of the Company’s aluminum - linked contracts (“embedded derivatives”) and favourable exchange rates movements • Adjusted EBITDA increased by $2.1 MM on a consolidated basis primarily due to the addition of the Shannon and Jimmie Creek projects, and improved results from the Blue Lagoon * Here and elsewhere, “Adjusted EBITDA" is a non-IFRS measure (refer to slide 27 for the "Cautionary Note Regarding Non-IFRS Measures”). www.alterrapower.ca TSX : AXY Page | 4
Alterra Power 2016 Results Call Financials | Lynda Freeman, CFO 2016 Annual Comparative Information ( Net Interest)* ($000) For the year ended December 31, 2016 Toba Jimmie Development HS Orka Montrose Dokie 1 Shannon Creek and head Total (25.5%) (50%) (51%) (66.6%) (40%) office Generation (MWh) 747,544 291,779 71,258 340,039 41,514 - 1,492,134 Revenue 40,517 22,383 6,299 6,049 4,886 - 80,134 Adjusted EBITDA 18,993 17,043 4,385 998 4,135 (6,567) 38,987 For the year ended December 31, 2015 Toba Development HS Orka Montrose Dokie 1 Shannon Soda Lake and head Total (25.5%) (50%) (100%) (a) (66.6%) (40%) office Generation (MWh) 818,488 316,976 86,648 19,192 6,991 - 1,248,295 Revenue 38,219 24,738 7,906 273 449 - 71,585 Adjusted EBITDA 18,800 18,825 5,735 35 152 (6,564) 36,983 (a) The Soda Lake facility was sold on January 30, 2015 • Generation increased 20% with the addition of the Shannon and Jimmie Creek projects, offsetting lower-than-expected generation at HS Orka, Dokie 1 and Toba Montrose (still above plan at 103%) • Lower than average wind speeds affected much of North America (including Dokie and Shannon) • Revenue increased 12% predominantly due to strengthening ISK and revenue from new projects (Shannon and Jimmie Creek) • Adjusted EBITDA increased by 5% primarily due to the additions of the new Shannon and Jimmie Creek projects * Here and elsewhere, “Net Interest" is a non -IFRS measure (refer to Slide 27 for the "Cautionary Note Regarding Non- IFRS Measures”). www.alterrapower.ca TSX : AXY Page | 5
Alterra Power 2016 Results Call Financials | Lynda Freeman, CFO 2016 Annual Comparative Information (Net Interest) 2016 2015 Production (GWh) 900 750 600 450 300 150 HS Orka Toba Dokie 1 Shannon Jimmie Creek Montrose Revenue EBITDA 50.0 25.0 40.0 20.0 30.0 15.0 20.0 10.0 10.0 5.0 HS Orka Toba Dokie 1 Shannon Jimmie Creek HS Orka Toba Dokie 1 Shannon Jimmie Creek Montrose Montrose www.alterrapower.ca TSX : AXY Page | 6
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