Investor Presentation January 2016 0 NPI.TO Forward-Looking - PowerPoint PPT Presentation

Executing on Growth Investor Presentation January 2016 0 NPI.TO

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 2014 Annual Report and 2014 Annual Information Form, which are both filed electronically at www.sedar.com and Northland’s website www.northlandpower.ca. 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. 1

Northland Overview  Canadian-based Global Power Producer in business since 1987  Full lifecycle developers, owners, and operators of our facilities  1,338 MW * in operation – diversified across different clean technologies and multiple regions  1,032 MW (692 MW* net) under construction  Generate long-term stable cash flows  98% of revenues from long-term power contracts  Strategic and disciplined organic growth platform  Management has a vested interest through a 35% ownership interest Northland maintains an annual dividend of $1.08 2 * Represents Northland’s economic interest

Diversification by Geography and Technology In operation Under construction Geographic Under Under Regions: Operating* Construction* Technologies: Operating* Construction* Canada 1,316 MW 50 MW Thermal 943 MW - The Netherlands - 360 MW Wind 280 MW 692 MW Germany 22 MW 282 MW Solar 115 MW - Total 1,338 MW 692 MW Total 1,338 MW 692 MW 3 *Represents Northland’s economic interest

Long Term Focus Delivers Value Northland’s full life cycle commitment  Captures development profits and provides stable cash flows over the life of facilities to service the dividend  Preferred by power off-takers and lenders  Ensures quality projects are constructed to achieve performance and reliability origination feasibility signed financial commercial confirmed PPA close operations date Development and construction value Risk/Reward Operations cashflow to create value to service dividends Initial risk Greatest exposure Diminishing risk ADVANCED UNDER OPERATIONS IN DEVELOPMENT DEVELOPMENT CONSTRUCTION Stage 4

Strong and Growing Financial Results Adjusted EBITDA Revenues $800 $500 $700 CAGR: CAGR: $400 $600 28% 31% $500 Millions of $ Millions of $ $300 $400 $200 $300 $200 $100 $100 $0 $0 2012 2013 2014 2015F 2012 2013 2014 2015F Prior Growth Initiatives Have Shown Results Expected to generate $395 to $405 million of Adjusted EBITDA in 2015 5

Development – Our Pipeline Operating Development Construction* Assets* Pipeline Advanced 692 1,338 > 2,200 Development MW MW MW D E G R E E O F P R O J E C T C E R T A I N T Y Highest L o w e s t Evaluate and focus Power contracts Ensure projects Operations and on opportunities in hand are delivered on time, maintenance that meet our and on budget Finalizing supply Thermal 943 MW* investment criteria agreements Wind 280 MW* * Represents Northland’s economic interest Solar 115 MW* Financing 6

Focus on Executing Construction Projects Nordsee One Gemini 332 MW offshore wind farm 600 MW offshore wind farm COD: 2017 COD: End of 2017 60% interest 85% interest Grand Bend Offshore Wind Europe 100 MW onshore wind farm Project Costs: Over € 4 billion Onshore Canada Renewables Project Costs: $384 million COD: 2016 50% interest Management focused on executing 1,032* MW of projects currently under construction 7 * Northland’s economic interest totals 692 MW.

Grand Bend Wind Project Onshore Wind Project Location Southern Ontario Capacity 100 MW Capital Cost $384 million Northland 50/50 partnership with interest First Nations Power 20 years (Feed-In-Tariff) contract COD 2016 Construction - Foundation/excavation Progress work - Directional drilling, trenching, cable installation 8

Gemini – Project Overview Offshore Wind Project Location North Sea, Netherlands Capacity 600 MW (2 sites x 300 MW) Capital Cost € 2.8 billion Northland interest 60% (360 MW) Power contract Fixed price; 15-year contract with the Dutch government Operations & maintenance Siemens (15-year contract) Partners Siemens (20%), Van Oord (10%), HVC (10%) COD 2017 Additional facts Will be largest wind farm in the North Sea and second largest offshore wind farm in the world. 9

Gemini – Project Structure Two party EPC contracting strategy 10 Clear contracting strategy that minimizes interface risk

Gemini – Milestones Milestones Status  Cable manufacturing &  installation  Turbine foundations  (monopiles) manufacturing & installation   Offshore substation  Turbines installation & commissioning 2016  First Power  Full commercial operations 2017 (COD) 11

Gemini – Nacelle October 2015: Completed first nacelle 12 See appendix for more pictures

Gemini – Looking to Operations  Pre-completion revenues expected to commence in 2016  Once all 150 turbines are in operations (expected in 2017), the project is expected to deliver stable cash flows due to: Excellent, proven wind Primarily fixed Operations Fixed Price* resource & Maintenance contracts • High capacity factor with • SDE* mechanism is a • 15-year O&M contracts contract-for-differences average wind speeds of for turbines and balance approximately 10 m/s. that tops up market- of plant maintenance based revenues to (underwater, land • Offshore wind seasonal ~ € 169/MWh for defined substation etc.) profile amount of annual • Long-term O&M production contracts lock in major • Only 80% of P90 portion of operating costs production is required to subject only to annual receive the full subsidy escalation tied to indices Subsidy (TenneT - Fixed price: Utility) € 169/MWh Mar May Oct Market Price (Spot Market) 13 * Stimulering Duurzame Energieproductie (SDE) is a contract with the Dutch government (AAA rated by S & P) that subsidizes market revenue. If the average annual market price is below € 44/MWh the subsidy is reduced by the difference.

Nordsee One – Project Overview Offshore Wind Project Location North Sea, Germany Capacity 332 MW Capital Cost € 1.2 billion Northland interest 85% (282 MW) Power contract A fixed price Feed-in-tariff subsidy for 10 years. Operations & Senvion (10 years) maintenance Partners RWE Innogy (15%) COD 2017 Additional facts Rights to develop two additional projects (Nordsee Two & Three) over the next decade. 14