INVESTOR DAY September 18, 2013 NPI.TO D E L I V E R I N G O N O U R - PowerPoint PPT Presentation

Creating Long ‐ Term Value g g Recently announced conversion of all remaining Class B and y g C Shares and contingent Replacement Rights ahead of plan and with fewer projects than anticipated  Earn ‐ out was a feature of the 2009 merger  Signifies Northland’s ability to develop and build high quality projects g y p g q y p j  Portion of value created went to earn ‐ out  All future value from projects in development goes 100% to  All future value from projects in development goes 100% to all shareholders  Board and management holds 41%* interest in the company  Board and management holds 41%* interest in the company Demonstrated the attractiveness of developing our own projects Demonstrated the attractiveness of developing our own projects *Includes common and Class A Shares D E L I V E R I N G O N O U R C O M M I T M E N T S 13

Management’s Skin in the Game g Ownership of Northland Shares p Retail 31% Board and Board and Management 41% Institutional 28% Alignment of Management and Shareholder Interests D E L I V E R I N G O N O U R C O M M I T M E N T S 14

Pursuing Strategic, Sustainable Growth Opportunities pp Total Pipeline: > 2,500 MW longer lowest Development pipeline >2,200 MW TIME TO COMPLETION DEGREE OF CERTAINTY Projects with contract (PPA) 449 MW* U nder construction 70 MW* shorter highest 1,319 MW* Operating * Represents Northland’s economic interest D E L I V E R I N G O N O U R C O M M I T M E N T S 15

Construction Activity Completed $900 M of construction projects in 2013, Completed $900 M of construction projects in 2013 another $400 M of projects are currently in construction North Battleford North Battleford Gro nd Mo nt Solar Ground ‐ Mount Solar McLean’s Mo ntain McLean’s Mountain 5 sites achieved commercial Achieved commercial Commercial operations operations in 2013 operations on June 5, 2013 expected in early 2014 p y 4 sites are currently in construction D E L I V E R I N G O N O U R C O M M I T M E N T S 16

Completed Construction – North Battleford p North Battleford, Saskatchewan  260 MW gas ‐ fired combined cycle plant 2011  $641 M final project cost 2010  20 year power contract 20 year power contract  On budget, on time ‐ > COD June 5, 2013 COD June 5, 2013  Zero lost ‐ time incidents August 2013 Completed – On Time, On Budget D E L I V E R I N G O N O U R C O M M I T M E N T S 17

Completed Construction – Phase 1 Ground ‐ Mount Solar Crosby In Operation McCann In Operation Rideau Lakes In Operation Si Site Overview O i Site Overview Sit O i Si Site Overview O i Burks Falls East* Belleville North Belleville South In Operation In Operation Site Overview Site Overview Completed Panels Completed Panels Site Overview Site Overview * Burks Falls East site is scheduled to achieve commercial operations by the end of September 2013 5 x10MW Ground ‐ Mount Solar sites recently achieved commercial operations D E L I V E R I N G O N O U R C O M M I T M E N T S 18

Under Construction – Phase 2 Ground ‐ Mount Solar Ground ‐ Mount Solar, North Burgess Eastern Ontario  3 x 10 MW solar farms (Phase 2) + 1 x 10MW solar farm (Phase 1) 1 10MW l f (Ph 1)  $200 M expected project cost Glendale  20 year power contract  COD in 2013 ‐ 2014  ~43,000 panels per site Burks Falls West  Project financing underway  Project financing underway (Phase 2)  Over 500 construction jobs Over 500 construction jobs D E L I V E R I N G O N O U R C O M M I T M E N T S 19

Under Construction – McLean’s Mountain Turbine Foundation Construction McLean’s Mountain McLean s Mountain Manitoulin Island, Ontario  60 MW wind farm  $190 M budgeted project cost Drill foundation for blasting Excavate and pour mud mat  20 year power contract  COD by mid 2014  50/50 partnership with 50/50 partnership with United Chiefs and Councils Install Bolt Cage, Re ‐ bar & Conduit Pour concrete of Mnidoo Mnising  Project financing underway Backfill operation Concrete cures D E L I V E R I N G O N O U R C O M M I T M E N T S 20

First Nations Partnerships p  Construction and Advanced Development Project l Partnerships – McLean’s Mountain – Kabinakagami – Grand Bend  Development Partnerships – Partnership with ITUM in Quebec – Many other relationships across Canada Many other relationships across Canada D E L I V E R I N G O N O U R C O M M I T M E N T S 21

Producing and Maintaining Stable Cash Flows – Long ‐ term Focus g Remaining PPA Term for Each Facility Extension options ** Extension options ** Iroquois Falls Cochrane* Weighted average 14.6 years^ Kirkland Lake* (without extension options**) Kingston Kingston Thorold Th ld Iroquois Falls Spy Hill Germany Jardin Cochrane* Weighted average 16.5 years** e g ted a e age 6.5 yea s Thorold (with extension options**) Kirkland* Mont Louis Mt Louis Ground ‐ Mount Solar*** Germany Germany Jardin North Battleford*** Ground Mounted Solar** McLean’s Mtn*** North Battleford** Spy Hill 0 5 10 15 20 25 *Represents Northland’s economic interest in the facilities ** Facilities with dashed bar graph represent option to extend the power contract for additional period g p p p p f p *** Projects currently under construction ^ The weighted average PPA life is weighted by respective MW capacity. The weighted average PPA life of 14.6 years includes projects currently under construction. For operating projects only, the weighted average PPA life is 14.3 years. The thickness of each bar represents each facilities respective overall contribution to 2015 forecasted EBITDA D E L I V E R I N G O N O U R C O M M I T M E N T S 22

Contract Negotiations g  Re ‐ contracting of NUG power purchase contracts per 2011 Ontario Ministry g p p p y directive : – Negotiating new power contract for: • Cochrane • Cochrane – Current PPA matures 2015, meeting with Ontario Power Authority (fall 2013) – Ontario Power Authority offering 20 year terms subject to price negotiation – Negotiating existing power contract terms for: g g g p • Kirkland Lake – Contract in place for additional 15 years (2030) – Negotiating price starting in 2015 for gas, wood terms already in place N ti ti i t ti i 2015 f d t l d i l • Kingston – Northland has the option to extend term for 5 year minimum after 2017 p y – Parties obligated to negotiate terms of extension in good faith D E L I V E R I N G O N O U R C O M M I T M E N T S 23

Sustained Growth 2009 2013 2017 1,800+ 1,319 608 MW MW MW All projects are reported at Northland’s net economic interest D E L I V E R I N G O N O U R C O M M I T M E N T S 24

Operations Operations Laura Jehn

Achieving our Operational Objective g p j Generate sustainable Generate sustainable operating income and steady p g y returns by focusing on effectively managing assets over the long term over the long ‐ term D E L I V E R I N G O N O U R C O M M I T M E N T S 26

Operations Overview p  Overview  Operating Objectives and Performance and Performance  Operating Focus for 2013 ‐ 2014  Driving Value through g g Operations D E L I V E R I N G O N O U R C O M M I T M E N T S 27

Operating Facilities ‐ Thermal p g Spy Hill, Saskatchewan North Battleford, Saskatchewan Cochrane, Ontario Kirkland Lake, Ontario Kingston Ontario Kingston, Ontario Iroquois Falls Ontario Iroquois Falls, Ontario Thorold, Ontario D E L I V E R I N G O N O U R C O M M I T M E N T S 28

Operating Facilities ‐ Wind p g Jardin d’Eole, Quebec Mont Louis, Quebec Germany (Eckolstladt and Kavelstorf) D E L I V E R I N G O N O U R C O M M I T M E N T S 29

Operating Facilities ‐ Solar p g McCann Rideau Lakes Crosby Rooftop, Ontario Belleville South Belleville North D E L I V E R I N G O N O U R C O M M I T M E N T S 30

Achieving Operations Excellence g p  Delivering operating income of over $100 M and Delivering operating income of over $100 M and Sustainability Sustainability proactively managing revenues, fuel and long ‐ term maintenance agreements  Plants achieved an overall availability of 96% Reliability Reliability Plants achieved an overall availability of 96% during 2012 Continuous  Successful at mitigating transportation toll Improvement I i increases through the use of alternative natural h h h f l i l gas supply arrangements Efficiency/ y/  Executed on Kingston facility’s $6 M major Executed on Kingston facility s $6 M major Expertise maintenance program as scheduled in 2012 Environmental  S lid en ironmental track record  Solid environmental track record Stewardship Safety  Cochrane facility has celebrated over 20 years without a lost ‐ time incident D E L I V E R I N G O N O U R C O M M I T M E N T S 31

Operations Focus for 2013 ‐ 2014 p  Supporting new development on all projects pp g p p j  Locking into long ‐ term energy gas contracts and optimizing gas management savings g g  Providing development, start ‐ up and commissioning assistance and commissioning assistance – McLean’s Mountain Wind Farm – Ground Mount ‐ Solar (all phases) ( p ) – Gemini Offshore Wind  Executing on contract re ‐ negotiations Executing on contract re negotiations D E L I V E R I N G O N O U R C O M M I T M E N T S 32

Development Development Sam Mantenuto

Sustainable Growth, Long ‐ Term Value , g Development success Development success is key to creating is key to creating shareholder value D E L I V E R I N G O N O U R C O M M I T M E N T S 34

Development Overview p Sam Mantenuto Overview Chief Operating Officer and Chief Development Officer John Brace Gemini Gemini President and Chief Executive Officer Mike Lord Renewable General Manager, Renewable Power Development David Cheung Atkinson d h k Thermal General Manager, Thermal Power Development D E L I V E R I N G O N O U R C O M M I T M E N T S 35

Development Priorities p Quality Quality Quality Yield Projects People Process Our commitment is to deliver highly accretive projects with acceptable risk profiles p j p p D E L I V E R I N G O N O U R C O M M I T M E N T S 36

Proven Strategy – Build on What Has Worked Well  Develop projects that meet our investment criteria: p p j In jurisdictions with political, legal and electricity market stability and where projects can secure non ‐ market stability and where projects can secure non recourse project financing Focus on opportunities that have attractive returns; Focus on opportunities that have attractive returns; predictable cash flows; and manageable risks • Ability to obtain long term contracts with credit • Ability to obtain long ‐ term contracts with credit worthy off ‐ takers G Generation technology is consistent with the i h l i i i h h company’s philosophy – clean and green, i.e. gas, hydro solar wind hydro, solar, wind D E L I V E R I N G O N O U R C O M M I T M E N T S 37

Proven Strategy – Build on What Has Worked Well  Build and advance portfolio of quality projects with a likelihood of success: p q y p j Position ourselves by being strategic with the ability to be opportunistic as well Prioritize jurisdictions based on short and long ‐ term opportunities • Demand and policy drivers Focus in areas where we can compete – Independent Power Producer (IPP) friendly Strict investment criteria Consider timing of the opportunity: • Greenfield development or acquiring a project in development Develop with the long ‐ term in mind • Cultivate quality opportunities, sometimes for several years C lti t lit t iti ti f l Focus on projects where risks can be understood, quantified and managed Be agile and open to new markets Be agile and open to new markets D E L I V E R I N G O N O U R C O M M I T M E N T S 38

Prospecting for Success p g Canada and the U.S. continue to be two major markets for Northland:  North America’s recent economic decline and current state of nominal demand growth has generally led to an oversupply of power generation, limiting opportunities for new IPP generation underpinned by long ‐ term contracts However: – Near ‐ term opportunities result from: • Local economic development • Local economic development • Load growth in specific areas • Localized transmission constraints creating pockets of undersupply • Need for renewable power N d f bl • Jurisdictions addressing the intermittency of increasing renewable generation on the system – Mid ‐ to longer ‐ term opportunities result from: • Retirement of a significant amount of coal generation (Current natural gas prices make it an attractive replacement fuel for coal) • Demand recovery as the economy improves • Continued policy drivers D E L I V E R I N G O N O U R C O M M I T M E N T S 39

Prospecting for Success p g Prospecting beyond Canada and the U.S. – proceeding cautiously p g y p g y and prudently  There are other countries that offer opportunities that meet Northland’s investment criteria and where Northland can be successful  Certain demand and policy drivers and situation factors are better in other countries than in North America at this time countries than in North America at this time – More long ‐ term PPAs are available in overseas jurisdictions given state of affairs in North America – Less competition and greater opportunities often mean higher returns. Conversely, greater competition and fewer opportunities lead to lower returns in North America  Presence in Germany and more recently the Netherlands is increasing the amount of deal flow (quality projects) outside of North America available to Northland D E L I V E R I N G O N O U R C O M M I T M E N T S 40

Continuing to Deliver… g  We have: A strategy and an attractive pipeline A solid reputation and are well positioned to create even greater successes Continually demonstrated that we can find quality opportunities by being strategic and opportunistic. Examples include: • Cochrane and Kirkland Lake • Cochrane and Kirkland Lake – first independently owned gas plants first independently owned gas plants in Ontario • Thorold – created a renewed opportunity for cogeneration in Ontario pp y g • Quebec Wind – new market, new technology • North Battleford – new market, large project, remote location • Ontario FIT – smart bidding and fast acting • Spy Hill – pure competition • Gemini, Marmora, Queen’s Quay…. – no different D E L I V E R I N G O N O U R C O M M I T M E N T S 41

Development Activity Map p y p D E L I V E R I N G O N O U R C O M M I T M E N T S 42

Development Pipeline p p 2 200 MW PIPELINE 2,200 MW PIPELINE % of Total Pipeline Thermal ~40% Combined heat and Combined heat and power, natural gas ~30% Wind ~10% Solar Hydro ~20% Pumped storage, run ‐ of ‐ river D E L I V E R I N G O N O U R C O M M I T M E N T S 43

Projects with Power Contracts j Gemini 600 MW wind farm Project cost: $3.8B j $3 8 COD: 2017 Northland interest: 55% Ground ‐ Mount Grand Bend Frampton Kabinakagami Solar 100 MW wind farm 4x 10 MW solar farms 24 MW wind farm 4x 6 MW hydro projects Project cost: $385M Project cost: $240M Project cost:$75M Project cost: $180M COD: 2015 COD: 2014 COD: 2015 COD: 2017 66% partnership 50/50 partnership 50/50 partnership with First Nations with Municipality p y with First Nations Total Project Costs of ~$5 Billion D E L I V E R I N G O N O U R C O M M I T M E N T S 44

Gemini Offshore Wind Gemini Offshore Wind John Brace

One Reason We’re Excited About the Future A solid opportunity in a A solid opportunity in a maturing industry that enables maturing industry that enables Northland to utilize development expertise to create value for shareholders D E L I V E R I N G O N O U R C O M M I T M E N T S 46

Project Gemini: Agenda j g  Why Northland  Offshore Wind Overview  About Gemini – Overview O i – Project Partners – Key Project Elements y j • Wind Resource • Revenue Contract • Construction, Equipment Supply C t ti E i t S l • Operations • Financing • Economics • Project timeline  Northland’s Role  Northland s Role  Summary D E L I V E R I N G O N O U R C O M M I T M E N T S 47

Project Gemini: Why Are We Involved? j y  It is a solid project with robust and attractive returns   Development is already well advanced: Development is already well advanced:   PPA   Turbine Supply     EPC EPC   Permits  Financing In progress   It is in a maturing market of large opportunity It is in a maturing market of large opportunity  It has an attractive long term “PPA” with a credit worthy counterparty  It has strong partners with substantial experience in offshore wind and a large local presence in the Netherlands. Each partner brings key skill sets to the table: in the Netherlands. Each partner brings key skill sets to the table:  Siemens  Van Oord  HVC HVC  Typhoon  It has an implementation plan that avoids the difficulties experienced by some other offshore projects:  Two contract structure  Self construct power export facilities D E L I V E R I N G O N O U R C O M M I T M E N T S 48

Offshore Wind Industry North Sea Offshore Wind North Sea Offshore Wind (Video) D E L I V E R I N G O N O U R C O M M I T M E N T S 49

Offshore Wind Industry  Offshore wind capacity is growing : p y g g Renewable Energy Targets Renewable Energy Targets – Currently 5,040 MW in 58 wind farms Offshore Country Target Installed across 10 countries in Europe UK UK 18 GW 18 GW 3 GW 3 GW – 21 offshore wind farms are under Denmark ~2 GW 1 GW construction or in preparation, with a Germany 10 GW 280 MW total capacity of over 5 500 MW total capacity of over 5,500 MW France 6 GW 0 (1,500+ turbines) Netherlands 6 GW 246 MW – Renewable energy targets are set at gy g Belgium 2 GW 380 MW ambitious levels (totalling ~44 GW vs. Source: European Wind Energy Association, Freshfields Bruckhaus Deringer LLP ~5 GW currently operating), driving development of offshore wind due to development of offshore wind due to constraints on land N North Sea wind resources are capable of powering all of Europe – th S i d bl f i ll f E four times over. D E L I V E R I N G O N O U R C O M M I T M E N T S 50

Offshore Wind Industry  Has matured significantly since inception over 15 years ago – Many lessons learned through experience M l l d th h i • E.g. London Array, the largest offshore wind farm in the world (630 MW), recently delivered on ‐ time and on budget  New sources of capital required to fuel growth – Traditional utility players who use on ‐ balance ‐ sheet financing can’t meet growth targets themselves due to scale of projects and magnitude of growth h l d l f j d i d f h  Independent Power Producers’ (like Northland Power) access to project financing markets are key to future expansion y p – Nine projects financed between 2010 and 2012 with non ‐ recourse project debt, involving almost 20 commercial banks – Five multilateral financing institutions involved, including the European Investment Bank, the UK Green Investment Bank, and various export credit agencies Offshore wind industry is maturing and strategic investors with financial strength Off h i d i d t i t i d t t i i t ith fi i l t th are well positioned to get involved and establish expertise and a presence D E L I V E R I N G O N O U R C O M M I T M E N T S 51

Offshore Wind Industry y Construction of Offshore Wind Farm Construction of Offshore Wind Farm (Video) D E L I V E R I N G O N O U R C O M M I T M E N T S 52

Offshore Wind Industry: Lessons Learned y Historical Industry Issues Historical Industry Issues Gemini Approach Gemini Approach  Grid connection delays by local  Build own connection transmission utility y  2 ‐ contract structure  Multi ‐ contract approach has • Fixed price, guaranteed schedule and significant interface risk performance performance  Inexperienced contractors and owner  Experienced contractors and owner  Weather delays  Weather delays  Weather allowances in fixed price  Weather allowances in fixed price contracts, healthy project contingency, modern purpose ‐ built installation vessels  Permitting delays  Permits in hand P itti d l P it i h d  Equipment failures  Modern purpose ‐ built installation vessels, fixed ‐ price contract under warranty and fixed ‐ price contract under warranty and long ‐ term maintenance contracts D E L I V E R I N G O N O U R C O M M I T M E N T S 53

Overview – Highlights g g  600 MW (2 sites x 300 MW) offshore wind farm in the Netherlands ( ) – €2.8 B (CAD$3.8 B ) total capital cost – Will be 2 nd largest offshore wind farm in the world – 150 x 4 MW Siemens turbines 150 4 MW Si t bi  85 km off the North East coast of the Netherlands  Water depth 28 ‐ 36 m  Excellent, proven wind resource with average wind speeds of approximately 10 m/s speeds of approximately 10 m/s  15 year revenue contract with the Dutch government that continues to strongly support offshore wind that continues to strongly support offshore wind  Estimated annual production 2,600 GWh  Electricity for 785 000 Dutch households per annum  Electricity for 785,000 Dutch households per annum D E L I V E R I N G O N O U R C O M M I T M E N T S 54

Overview – Gemini Development History p y  2010 – Typhoon acquires the rights to Project Gemini from Bard and commences development  2012 – Northland commences preliminary due diligence on offshore wind in general  2013 – Northland commences due diligence on Gemini  2013 – Northland announces intent to acquire 55% interest and act as lead investor in the Gemini project, other partners in project include: – Siemens – supplier of offshore wind turbines and long ‐ term maintenance contract and availability guarantees; – Van Oord Dredging and Marine Contractors B.V. (Van Oord) – Dutch marine contractor with international operations and track record in offshore wind farm construction – Typhoon Offshore B.V. (TO) – an experienced Dutch developer of offshore wind projects; – HVC N.V . – a joint venture of 48 Dutch municipalities and six water regulatory authorities  Gemini has been in development by a team of 25 people for over 2 years p y p p y Project Gemini HVC TO NPI Siemens Van Oord 10% 5% 55% 20% 10% D E L I V E R I N G O N O U R C O M M I T M E N T S 55

Project Partners – Siemens j Figure 1: Market share of Offshore Turbine Manufacturers – 2012 Installations  Siemens is the global leader in offshore wind turbines with more than 1.4GW installed (500 turbines) and 20 years of offshore wind experience  Siemens supplied the recently opened London Array pp y p y – at 630 MW the world’s largest offshore wind farm  Siemens are currently supplying turbines to seven projects currently under construction with total capacity over 2,500 MW currently under construction with total capacity over 2,500 MW Source: European Wind Energy Association  Siemens is a significant investor in offshore wind projects through Figure 2: Market share of Turbine Siemens Project Ventures Manufacturers – cumulative to date  In Project Gemini, Siemens will play the following roles : 1. Supplier and installer of the turbines (150 x 4MW) 2. Provider of long ‐ term (15 years) operation and maintenance of the turbines 3. Equity investor, providing 20% of the equity in the project Source: European Wind Energy Association D E L I V E R I N G O N O U R C O M M I T M E N T S 56

Project Partners – Van Oord j Van Oord Offshore Experience  Van Oord is a leading international contractor g BoP, EPC Contractor (foundations, specializing in dredging, marine engineering Belwind I electrical, infrastructure, marine, 165 MW (Belgium) operations) and offshore projects (wind, oil, and gas) Prinses Amalia BoP, EPC Contractor (foundations,  Van Oord s offshore wind projects business  Van Oord's offshore wind projects business Windpark electrical, infrastructure, marine, 120 MW (Netherlands) operations) unit offers EPC contracting and construction Dan ‐ Tysk Infield cable installation 288 MW (Germany) services to the offshore wind industry Arklow Bank Foundation and turbine 25 MW – Van Oord has furthered its commitment of Van Oord has furthered its commitment of (UK) (UK) installation installation Scroby Sands Foundations and in ‐ field cable this business unit by ordering a purpose 60 MW (UK) installation built jack ‐ up vessel and a purpose built Horns rev I Foundation Installation 160 MW (Denmark) cable laying vessel cable laying vessel Burbo Bank Foundation and turbine 90 MW (UK) installation  In Project Gemini, Van Oord will play the following roles : 1. EPC/Balance of Plant contractor 2. Equity investor, providing 10% of the equity in the project D E L I V E R I N G O N O U R C O M M I T M E N T S 57

Project Partners – Others j NV HVC (“HVC”)  Energy utility owned by 48 participating Dutch municipalities and 6 regulatory water authorities. Active renewable energy production from wind, waste, biomass, solar and geothermal sources  Mission is to contribute to a sustainable living environment by providing environmentally g y p g y responsible waste management services and the production and delivery of sustainable energy  Other than project Gemini, HVC is shareholder in the German offshore wind farm Borkum West II  Role in Gemini: (1) Supported development (2) Providing 10% of the equity in the project Typhoon Offshore (“TO”) Typhoon Offshore ( TO )  Dedicated team of 25 seasoned professionals with direct offshore experience. For example: Belwind I, Scira, Prinses Amalia (formerly known as Q7)  The team was involved with the development financing and/or commissioning of over 20  The team was involved with the development, financing and/or commissioning of over 20 renewable energy infrastructure projects with a total capacity of approximately 1 GW and a transaction value of around EUR 2 billion  Role in Gemini: (1) Developer (2) Providing 5% of the equity in the project Role in Gemini: (1) Developer (2) Providing 5% of the equity in the project D E L I V E R I N G O N O U R C O M M I T M E N T S 58

Key Elements: Wind Resource y  The wind in the North Sea is well ‐ understood Gemini Gemini and uniform over large areas location  Gemini production forecast based on met Met Tower tower located 40 km to the east of the site tower located 40 km to the east of the site – 10+ years of data available – Alpha Ventus project located beside met tower has 3 years of operations and is t h 3 f ti d i exceeding original expectations by 15% over first two full years of operation – North Sea has an excellent wind resource N th S h ll t i d Alpha Ventus (~10 m/s annual average wind location speed = 60%+ gross capacity factor )  Third party resource analysis performed by GL Garrad Hassan and Anemos; both reviewed by Mott McDonald (lenders technical advisor) D E L I V E R I N G O N O U R C O M M I T M E N T S 59

Key Elements: PPA ‐ SDE Revenue Contract y  Stimulering Duurzame Energieproductie (SDE) is a contract with the Dutch g g p ( ) government (AAA rated by S & P) that subsidizes market revenue – Awarded to Gemini in 2010 through a competitive tender process – 15 year term from COD 15 year term from COD – SDE mechanism is a contract ‐ for ‐ differences that tops up market ‐ based revenues to €168.90/MWh for defined amount of annual production – Dutch government continues to be committed to renewables and offshore wind  Only 80% of P90 production is required to receive the full subsidy O l 80% f P90 d ti i i d t i th f ll b id – Reduces project exposure to wind resource – Shortfalls from P50, reduce revenue based on the market price, rather , p , than the much higher SDE price  Physical electricity sales handled under a separate contract D E L I V E R I N G O N O U R C O M M I T M E N T S 60

Key Elements: Equipment & Construction q p Two party EPC contracting strategy  Two contract structure where Interface matrix clearly T h I f i l l defines scope split between Balance of Plant and Siemens Turbine Supply Agreement  Clear contracting strategy that minimizes interface risk Interface Arrangement  Contracting structure is based on a proven concept, as Prinses Amalia and Belwind I wind farms used a similar Prinses Amalia and Belwind I wind farms used a similar Van Oord EPC contracting strategy D E L I V E R I N G O N O U R C O M M I T M E N T S 61

Key Elements: Operations & Maintenance y p  Siemens will provide operations and p p maintenance on the turbines under a 15 year contract and also provide an y p availability guarantee – Locks in major portion of O & M j p costs subject only to annual escalation tied to indices  Non ‐ turbine maintenance will be largely contracted largely contracted D E L I V E R I N G O N O U R C O M M I T M E N T S 62

Key Elements: Financing Plan y g Project Gemini Capital Cost Breakdown ~EUR 2.8 B (CAD$3.8 B ) Total Capital Costs ~4 ‐ 5% Pre ‐ Completion ~70% ~10% ~15 ‐ 16% Equity Senior Debt Junior Debt Revenues Investors Investors Investors European Northland Power Northland 55% Infrastructure Bank (TBD) Export Credit Siemens 20% Other (TBD) Agencies Van Oord 10% Van Oord 10% Commercial Banks Commercial Banks HVC 10% Typhoon Offshore 5% T h Off h 5% *This slide is for illustrative purposes. The financing structure will be finalized at financial close D E L I V E R I N G O N O U R C O M M I T M E N T S 63

Key Elements: Grid Assets y Ability to retain or sell non ‐ core Grid assets at completion: y p  Several other offshore wind farms have either not included grid assets (built by others) or have subsequently divested them  At completion these are lower risk, lower return assets – but with high potential value to financial investors  Gemini will be structured to allow for potential future monetization of the grid assets g  Northland will reserve the decision to invest in the grid assets permanently or divest them after project completion D E L I V E R I N G O N O U R C O M M I T M E N T S 64

Key Elements: Economics y  Offshore wind industry continues to be de ‐ risked and y returns continue to remain robust  Gemini is forecast to meet return expectations which  Gemini is forecast to meet return expectations which reflect historical experience of Northland projects – mid teen returns with potential upside from that level mid ‐ teen returns with potential upside from that level  Gemini will be highly accretive to Northland’s cash flow throughout operating life D E L I V E R I N G O N O U R C O M M I T M E N T S 65

Key Elements: Project Plan Timeline y j Gemini is in the advanced stage of development: g p  PPA in place  Turbine supply and EPC deals agreed, contract paperwork near final Turbine supply and EPC deals agreed, contract paperwork near final  Permits in hand  Financing underway  Financing underway Milestone Timing Financial Close Fi i l Cl Fi t h lf f 2014 First half of 2014 Planned Start of Construction Late 2014 Foundations installed 2015 ‐ 2016 Turbines installed 2015 ‐ 2017 First power to shore 2016 Commissioning and Commercial Operations (COD) 2017 D E L I V E R I N G O N O U R C O M M I T M E N T S 66

Project Gemini: Northland’s Role j As lead investor, Northland will: , 1. Be the major voice on further project development, construction and operations 2. Help to finalize drafting of major contracts (BOP, TSA, BSA, LTSA); commercial terms are virtually final 3. Take a leading role in project financing activities to financial close 4. Coordinate hiring of senior project employees (CEO, CFO, CTO) and set up stand ‐ alone organization, logistics and processes to construct the project t d l i ti l i ti d t t t th j t and operate it after COD D E L I V E R I N G O N O U R C O M M I T M E N T S 67

Project Gemini: Northland’s Role (cont’d) j ( ) Northland is devoting significant, senior resource to ensure project success g g , p j  Northland’s Chief Investment Officer (Tony Anderson) has overall responsibility for Northland’s involvement in the project and is devoting 100% of his time to Gemini from a base in Amsterdam  Other senior Northland personnel are spending up to 75% of their time in Amsterdam as required Amsterdam, as required  Northland has established a committee of its board to monitor the project through to financial close and beyond g y  Other members of Northland’s team working on Gemini have direct offshore wind experience D E L I V E R I N G O N O U R C O M M I T M E N T S 68

Project Gemini: Summary j y  Gemini project is well advanced with an experienced group of quality partners p j p g p q y p  Northland has invested a considerable amount of time to understand the project risks and take steps to mitigate them where possible (e.g., two ‐ contract construction strategy) )  Gemini provides robust, attractive returns with a reasonable level of risk based on: based on: – Highly predictable wind resource/production – Long ‐ term contracted revenue stream with AAA counterparty – Advancements in offshore wind construction – Project debt amortizing over SDE contract term  Opens windows to opportunities for future growth prospects in an active sector (European & Offshore Wind)  Helps ensure Northland’s ability to provide dividend over the long term  Helps ensure Northland s ability to provide dividend over the long ‐ term D E L I V E R I N G O N O U R C O M M I T M E N T S 69

Renewables Renewables Mike Lord

Renewable Activity Map y p D E L I V E R I N G O N O U R C O M M I T M E N T S 71

Topics to Cover p  Featured Projects j – Ontario Ground ‐ Mount Solar – Grand Bend Wind Farm – Kabinakagami Hydro Generating Station – Frampton Wind Farm – Marmora Pumped Storage D E L I V E R I N G O N O U R C O M M I T M E N T S 72

Featured Renewable Projects: Ground ‐ Mount Solar  Signed 20 year power contract g y p  40 MW (4 x 10MW) of Ground ‐ mount solar Feed ‐ in ‐ Tariff (FIT) projects located near Cochrane, Ontario  Final Phase of portfolio of 13 x 10MW projects  Environmental permitting complete and construction mobilizing  Capital Cost ~$240 M  Last project expected COD in 2014 p j p ONTARIO D E L I V E R I N G O N O U R C O M M I T M E N T S 73

Featured Renewable Projects: Grand Bend Wind Farm  Signed 20 year power contract g y p  100 MW project (net interest of 50 MW) in Ontario  Partner: 50/50 equity with Aamjiwnaang and Walpole Island First Nations Partner: 50/50 equity with Aamjiwnaang and Walpole Island First Nations  Environmental permitting (i.e. Renewable Energy Approval, or REA) in advanced stages – REA has been deemed complete by the Ministry of Environment – Expect final permit in 2014 – Expect final permit in 2014  Capital Cost ~$385 M  E pected COD in 2015  Expected COD in 2015 ONTARIO D E L I V E R I N G O N O U R C O M M I T M E N T S 74

Featured Renewable Projects: Kabinakagami Hydro Generating Station g y g  Signed 40 year FIT contract g y  26 MW project (net interest of 13 MW) in Ontario – 4 x 6.5MW run ‐ of ‐ river hydro facilities  Partner: 50/50 equity with Constance Lake First Nations  Environmental Assessment well advanced  Construction contractor and equipment supplier selection in process  Capital Cost ~$180 M*  Expected COD in 2017 ONTARIO *Capital costs are currently under review D E L I V E R I N G O N O U R C O M M I T M E N T S 75

Featured Renewable Projects: Frampton Wind Farm p  Signed 20 year power purchase agreement g y p p g  24 MW project (net interest of 16 MW) in Quebec  Partner: 66/33 equity with the Municipality of Frampton Partner: 66/33 equity with the Municipality of Frampton  Environmental permitting in process QUEBEC  Capital Cost ~$75M  Capital Cost $75M  Expected COD in 2015 D E L I V E R I N G O N O U R C O M M I T M E N T S 76

Featured Renewable Projects: Marmora Pumped Storage p g Marmora site today  400 MW hydro ‐ pumped storage y p p g project located in Marmora, Ontario  Supports grid stability  Uses proven technology Artist’s rendering of completed site  Ideally located  Strong community and multi ‐ party political support ONTARIO D E L I V E R I N G O N O U R C O M M I T M E N T S 77

Renewables Concluding Remarks g E Excited about the future! it d b t th f t ! D E L I V E R I N G O N O U R C O M M I T M E N T S 78

Thermal Thermal David Cheung Atkinson

Thermal Activity Map y p D E L I V E R I N G O N O U R C O M M I T M E N T S 80

Topics to Cover p  Featured Projects j – Queen’s Quay – GM Oshawa – Illinois Peakers D E L I V E R I N G O N O U R C O M M I T M E N T S 81

Featured Thermal Projects: Queen’s Quay, Ontario Q Q y,  94 MW, gas ‐ fired g cogeneration  Located on LCBO land on the Toronto waterfront Toronto waterfront  Important project to provide: – Electricity to downtown y Toronto, and – Hot water to Waterfront Toronto and LCBO developments  Strong support from stakeholders – OPA, Toronto Hydro agree on the need for new generation downtown OPA T t H d th d f ti d t – Provincial ministries of Energy, Infrastructure and Finance agree that the project would be beneficial – Initial public consultation was very positive; City of Toronto also supportive D E L I V E R I N G O N O U R C O M M I T M E N T S 82

Featured Thermal Projects: GM Oshawa, Ontario ,  103+ MW, combined cycle CHP  Located at the GM Oshawa plant, east of Toronto l f  Important project to provide: – Electricity to Ontario Electricity to Ontario grid, and – Steam to GM  Strong support from local stakeholders: – GM, City of Oshawa GM Ci f O h – Neighbouring cities of Pickering, Ajax, Whitby and Scugog – Local members of parliament (all PC) and NDP energy critic p ( ) gy D E L I V E R I N G O N O U R C O M M I T M E N T S 83

Featured Thermal Projects: Annawan and Garden Prairie, Illinois ,  Two sites under option, each 112.8 MW p – Design currently includes reciprocating engines  Located in northern Illinois on border between PJM and MISO regions  Important project to: Important project to: – Provide power to meet intermittent need – Serve multiple, smaller off ‐ takers – Mitigate forecasted shortfall in 2017 ‐ 2018 timeframe.  Many discussions with potential off ‐ takers Many discussions with potential off takers – Co ‐ ops and municipal utilities – Marketers – Investor owned utilities D E L I V E R I N G O N O U R C O M M I T M E N T S 84

Thermal Concluding Remarks g Excited about the future! D E L I V E R I N G O N O U R C O M M I T M E N T S 85

BREAK D E L I V E R I N G O N O U R C O M M I T M E N T S 86

Financial Financial Paul Bradley

Finance Our goal in the finance group is to Our goal in the finance group is to continue to create long ‐ term value for shareholders through prudent financial management minimizing risk to long management, minimizing risk to long ‐ term cash flows and seizing g opportunities to be innovative in executing value enhancing transactions i l h i i D E L I V E R I N G O N O U R C O M M I T M E N T S 88

Finance Discussion 1. Overview of Progress since 2011 g 2. Corporate and Project Economics 3. Liquidity & Dividend 4. Financing Plans g 5. Project Gemini 6. Finance Conclusion D E L I V E R I N G O N O U R C O M M I T M E N T S 89

Overview of Progress Since 2011 g Outlook for 2014 and Outlook in 2011 2013 Expected Beyond Beyond $1.08 / Share Annual Dividend Continue to pay dividend   (Monthly dividends of well into the future $0.09/share) EBITDA EBITDA $380 M to $400 M Develop up to $360 M to Creation of significant value $245 M to $255 M by 2015 full year $400 M EBITDA by 2014 $ y f from developing new projects d l i j t   (annualized basis) All contingent Convert classes B, C, shares converted in Completed Early p y Northland Share Classes shares and Replacement  August 2013 Rights by 2014  Return to below 100% payout ratio by 2014 with 105% to 115% of  *** Dividend Payout Ratio* current advanced free cash flow** development *Payout ratio is shown based on gross dividends (excluding the effect of dividends reinvested through the DRIP) **Updated forecast following Northland’s 2013 Second Quarter Financial Report *** Subject to equity requirements of development successes D E L I V E R I N G O N O U R C O M M I T M E N T S 90

Overview of Progress Since 2011 (cont’d) g ( ) Outlook in 2011 O tl k i 2011 2013 E 2013 Expected t d O tl Outlook for 2014 and Beyond k f 2014 d B d Since 2011 expected to raise $1.2 B Expected to raise $1 B of debt, $110 M of equity No capital market of debt and $150 M of “debt” and $150 M (Dividend Re investment Plan) and (Dividend Re ‐ investment Plan) and raises in 2013 expected i i 2013 d Capital Raises to $300 M $120 M of preferred shares by end other than DRIP of equity over the of 2014 (excluding Gemini)  next 2 years  Maintain $250 M Expansion of line of credit to $450 M ‐ $500 M underway • • line of credit Continued access to capital markets • Continued access to Liquidity • Dividend Reinvestment Program Dividend Reinvestment Program capital markets capital markets •  Active and Continuous improvement in ERM program • • comprehensive risk comprehensive risk Risk Management  management (ERM) D E L I V E R I N G O N O U R C O M M I T M E N T S 91

CORPORATE AND PROJECT ECONOMICS PROJECT ECONOMICS D E L I V E R I N G O N O U R C O M M I T M E N T S 92

Financial Summary and Highlights y g g FINANCIAL SUMMARY Recent Share Price (TSX: NPI) $14.56 Shares (Common + Class A) 131 million Institutional Ownership ~28% Management Ownership ~41% Annual Dividend Annual Dividend $1 08 $1.08 Annual Dividend Yield 7.4% Total Debt, Net of Cash $1,345 million Convertible Debentures (NPI.DB.A) $16 million Preferred Shares (NPI.PR.A, NPI.PR.C) $262 million Market Capitalization (Common + Class A) $1,910 million Enterprise Value $3,576 million BBB– S&P Debt Rating S&P Debt Rating Positive Outlook * As of September 11, 2013 D E L I V E R I N G O N O U R C O M M I T M E N T S 93

Strong Balance Sheet g 7% Preferred Shares 1% Convertible ENTERPRISE Debentures/Shares VALUE VALUE $3.6 B *** 53% Equity at recent $14.56 share price*; 131 million shares** 131 illi h ** S September 2013 b 2013 39% Non ‐ Recourse Project Debt j * Closing September 11, 2013 ** Includes Convertible Class A *** Excludes minority interest D E L I V E R I N G O N O U R C O M M I T M E N T S 94

Stability and Growth y EBITDA by Segment Type* $700 $700 $600 ions) $500 ed EBITDA ($ milli $400 $300 $200 $200 Adjuste $100 $0 ‐ $100 ** 2012 2013F 2014F 2015F Illustrative Run Rate Corporate / Other Original NUGs Managed Thermal Renewables Gemini or Equivalent Development Projects Consolidated Adjusted EBITDA 2012 EBITDA of $179M expected to double by 2014 2012 EBITDA of $179M expected to double by 2014 *Includes only projects in operation and those projects currently under construction and with signed power contracts ** $70 million of EBITDA subject to PPA renegotiations & extensions D E L I V E R I N G O N O U R C O M M I T M E N T S 95

LIQUIDITY AND DIVIDEND D E L I V E R I N G O N O U R C O M M I T M E N T S 96

Liquidity Management q y g Northland’s key tools to manage liquidity : y g q y 1. Consistent and predictable annual free cash flow from operating facilities 2. Line of Credit – $250 M currently – expansion to $450 M to $500 M underway 3. Continued access to capital markets 4. Development expenses and discretionary capital expenditures 5. Dividend Re ‐ Investment Plan 5. Dividend Re Investment Plan 6. No meaningful cash taxes until after current decade Northland s Tax Pools Northland’s Tax Pools $1.8B $0.3B $0.9B from from from contracted operating assets construction projects development projects Available Future D E L I V E R I N G O N O U R C O M M I T M E N T S 97

Liquidity Management q y g Northland has robust liquidity to service its dividend payments q y p y prior to the commissioning of Project Gemini 1.8x Coverage on Gross Dividends 2.1x Coverage on C Cash Dividends h Di id d DRIP Dividends Cash Dividends Free Cash Flows Cash Balance Unused Line of Line of Credit Re ‐ Financing Discretionary Cash Raised from Total Dividends 2014 ‐ 2017 June 30, 2013 Credit Expansion Proceeds from Development DRIP Program 2014 ‐ 2017 June 30, 2013 North Battleford Spending 2014 ‐ 2017 This chart has been compiled by management for illustrative purposes based on current financing expectations D E L I V E R I N G O N O U R C O M M I T M E N T S 98

Upcoming Debt Maturities p g  Two of Northland’s largest project financings have been or are expected to be g p j g p imminently re ‐ financed – Spy Hill $111 M re ‐ financed with a project bond January 2013 – North Battleford $542 M in process of completing refinancing with a project bond North Battleford $542 M in process of completing refinancing with a project bond in September 2013  Northland’s corporate facility matures in May 2015 – $32 M drawn as of June 30, 2013 $ – $125 M supporting LCs as of June 30, 2013  Northland is in the process of renegotiating the line of credit to increase Northland is in the process of renegotiating the line of credit to increase and extend terms  Thorold’s bank tranche of non ‐ recourse project debt of $205 M matures in 2015 – Project operating well; we are exploring potential refinancing opportunities in advance of the maturity Since 2011 Northland has materially decreased its upcoming debt maturities Si 2011 N hl d h i ll d d i i d b i i D E L I V E R I N G O N O U R C O M M I T M E N T S 99