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

INVESTOR DAY

September 18, 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

NPI.TO

Forward‐Looking Statements Disclaimer g

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 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 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 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 2012 Annual Report and 2012 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

• therwise.

1

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

All figures are presented in Canadian dollars unless otherwise indicated.

Welcome Remarks Welcome Remarks

James Temerty

Our Mission

Our focus remains Our focus remains a commitment to dividend a commitment to dividend sustainability y and long‐term value creation for our shareholders

3

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

Our Strengths g

• Stability and Growth: The track record and ability to

y y deliver high quality results and reliable returns

• Long term focus: Delivering value for shareholders
• Long‐term focus: Delivering value for shareholders

now and into the future by seizing opportunities that create attractive returns and sustainable growth create attractive returns and sustainable growth

• Commitment: Management has a vested interest

through a 41% ownership interest

4

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

Overview Overview

John Brace

Today’s Presentation y Overview

John Brace

President and Chief Executive Officer

Operations

Laura Jehn

Operations

Director of Commercial Operations

Development

Sam Mantenuto et al.

Chief Operating Officer and Chief Development Officer

Break Finance

Paul Bradley

Chief Financial Officer Chief Financial Officer

Wrap Up

John Brace

President and Chief Executive Officer

Q & A Q & A

6

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

Key Messages y g Northland has and will continue to:

• Deliver on our commitments
• Focus on the long‐term
• Be fully vested and accountable – we have

y “skin in the game”

• Be excited about the future
• Be excited about the future

7

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

Our Future is Bright g

Perception

Reality High Payout Ratio  Temporary phenomenon related to development success  Gemini is a robust project with an experienced Europe/Offshore Wind Risk  Gemini is a robust project with an experienced team of partners. This will lead to other

• pportunities in a growing industry and new

hi l i geographical region Raising Large Amounts

• f Equity

 Many options available to minimize/eliminate dilution to shareholders

• f Equity

dilution to shareholders Contract Expiry  Well‐located, well‐positioned plants that are valuable to the grid and host communities; contracts contain extension provisions

8

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

Executing Our Strategy

Our Objectives: Our Results since 2011:

g gy

Generate long‐term stable cash flows and provide regular dividends to shareholders

• Maintained $1.08 per share dividend
• EBITDA grew on average by 22% annually since 2009

Stable performance through diversification across many clean and green t h l i d hi

• Operating thermal, wind, and solar projects in Canada, Europe and U.S.,

with hydro and other clean and green projects in development and construction

• Acquired controlling interest in Canadian Environment Energy

technologies and geographic jurisdictions

• Acquired controlling interest in Canadian Environment Energy

Corporation (holds controlling rights of Kirkland Lake and Cochrane)

Full lifecycle developers,

• North Battleford generating station, Spy Hill generating station, Solar

Rooftop, Mont Louis wind farm, and Ground‐Mount Solar projects

Full lifecycle developers,

• wners and operators
• f our facilities

p, , p j achieved COD

• Started construction of McLean’s Mountain wind farm and next phases
• f Ground‐Mount Solar projects

Strategic and disciplined

• rganic growth platform
• Strong pipeline of advanced development projects: Grand Bend,

remaining Ground‐Mount Solar, Kabinakagami, Frampton

• Enhance development opportunities by engaging First Nations

partnership strategy

9

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

g g p

• Actively developing new projects in key target areas
• New offshore wind project (Gemini) in the Netherlands

Diversification by Geography and Technology y g p y gy

1 Cochrane 32 MW* 2 Kirkland Lake 101 MW* 11 12 14 3 Iroquois Falls 120 MW 4 Kingston 110 MW 5 Panda‐Brandywine 44 MW* 6 Mont Miller 54 MW** 1 2 3 6 9 18 19 6 Mont Miller 54 MW 7 Kavelstorf 7 MW 8 EckolstIädt 15 MW 9 Jardin d’Éole 128 MW 2 4 7 20 13 15 16 17 10 Thorold 265 MW 11 Mont Louis 100 MW 12 Spy Hill 86 MW 5 8 10 13 Roof‐top solar 1 MW* 14 North Battleford 260 MW 15 Ground‐Mount Solar 130 MW*** 16 McLean’s Mountain 30 MW* Under construction Thermal Wind In operation In advanced development Hydro 16 McLean s Mountain 30 MW* 17 Grand Bend 50 MW* 18 Frampton 16 MW* 19 Kabinakagami 12 MW*

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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

*Represents Northland’s economic interest **Sold in 2010 ***Ground‐mount solar: 50 MW in operations, 40 MW under construction, and 40 MW in advanced development

Biomass Solar p 20 Gemini 330 MW*

Diversified EBITDA Portfolio of Assets

2015 ‐ $380‐400M

Germany JardinMont Louis 4% McLean's Mtn 3% Grand Bend

By Facility

Saskatchewan 26%

By Geography

Cochrane 1% Kirkland Lake 2% 1% Jardin 5% 4% 3% Ontario 65% Quebec 8% Other 1% Spy Hill 4% 1% Solar 21% 65%

By Technology

Iroquois Falls 9% North Battleford 22% Wind 15% Solar 21%

By Technology

Kingston 12% Thorold 13% Thermal 64% 21%

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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% 64%

Financial Results

Financial Highlights:

Revenues

Millions

g g

• Maintained $1.08 per share

dividend

$200 $300 $400

• Annual dividend yield > ~7% at

the current share price

$0 $100 $200

• Total assets of more than $2.8B
• Revenues of more than $360M

2009 2012

EBITDA

Millions

• 2012 EBITDA increased by 19%
• ver 2011

$100 $150 $200 $0 $50 2009 2012

12

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

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

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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

Demonstrated the attractiveness of developing our own projects

*Includes common and Class A Shares

Management’s Skin in the Game g

Ownership of Northland Shares p

Board and Retail 31% Board and Management 41% Institutional 28%

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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

Alignment of Management and Shareholder Interests

Pursuing Strategic, Sustainable Growth Opportunities Total Pipeline: > 2,500 MW pp

lowest longer

Development pipeline

>2,200 MW

DEGREE OF CERTAINTY TIME TO COMPLETION

Under construction Projects with contract (PPA)

449 MW* 70 MW*

highest shorter

1,319 MW* Operating

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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

* Represents Northland’s economic interest

Construction Activity

Completed $900M of construction projects in 2013 Completed $900M of construction projects in 2013, another $400M of projects are currently in construction McLean’s Mo ntain Gro nd Mo nt Solar North Battleford McLean’s Mountain Ground‐Mount Solar North Battleford

Commercial operations expected in early 2014

5 sites achieved commercial

• perations in 2013

Achieved commercial

• perations on June 5, 2013

p y

4 sites are currently in construction

16

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

Completed Construction – North Battleford p

North Battleford, Saskatchewan

• 260 MW gas‐fired combined

cycle plant

• $641M final project cost
• 20 year power contract

2010 2011

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

17

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

Completed Construction – Phase 1 Ground‐Mount Solar

Crosby McCann Rideau Lakes

In Operation In Operation In Operation

Si O i Sit O i Si O i

Belleville North Belleville South Burks Falls East*

Site Overview Site Overview Site Overview

In Operation In Operation

Site Overview Completed Panels Site Overview

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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

Site Overview Completed Panels Site Overview

5 x10MW Ground‐Mount Solar sites recently achieved commercial operations

* Burks Falls East site is scheduled to achieve commercial operations by the end of September 2013

Under Construction – Phase 2 Ground‐Mount Solar

Ground‐Mount Solar,

North Burgess

Eastern Ontario

• 3 x 10 MW solar farms (Phase 2)

1 10MW l f (Ph 1) + 1 x 10MW solar farm (Phase 1)

• $200M expected project cost

Glendale

• 20 year power contract
• COD in 2013‐2014
• ~43,000 panels per site
• Project financing underway

Burks Falls West

• Project financing underway

(Phase 2)

• Over 500 construction jobs

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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

Over 500 construction jobs

Under Construction – McLean’s Mountain

McLean’s Mountain

Turbine Foundation Construction

McLean s Mountain Manitoulin Island, Ontario

• 60 MW wind farm
• $190M budgeted project cost
• 20 year power contract

Drill foundation for blasting Excavate and pour mud mat

• COD by mid 2014
• 50/50 partnership with

50/50 partnership with United Chiefs and Councils

• f Mnidoo Mnising

Install Bolt Cage, Re‐bar & Conduit Pour concrete

• Project financing underway

20

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

Concrete cures Backfill operation

First Nations Partnerships p

• Construction and Advanced

l Development Project Partnerships – McLean’s Mountain – Kabinakagami – Grand Bend

• Development Partnerships

– Partnership with ITUM in Quebec Many other relationships across Canada – Many other relationships across Canada

21

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

Producing and Maintaining Stable Cash Flows – Long‐term Focus

Remaining PPA Term for Each Facility

g

Extension options**

Th ld Kingston Iroquois Falls

Weighted average 14.6 years^

(without extension options**)

Extension options**

Kingston Cochrane* Kirkland Lake*

Cochrane* Spy Hill Thorold

Weighted average 16.5 years**

Iroquois Falls Germany Jardin

Germany Mt Louis Kirkland*

e g ted a e age 6.5 yea s

(with extension options**)

Thorold Mont Louis Ground‐Mount Solar***

Ground Mounted Solar** Jardin Germany

North Battleford***

5 10 15 20 25

North Battleford**

*Represents Northland’s economic interest in the facilities ** Facilities with dashed bar graph represent option to extend the power contract for additional period

Spy Hill McLean’s Mtn***

22

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

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
• verall contribution to 2015 forecasted EBITDA

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) N ti ti i t ti i 2015 f d t l d i l – Negotiating price starting in 2015 for gas, wood terms already in place

• Kingston

– Northland has the option to extend term for 5 year minimum after 2017

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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

p y – Parties obligated to negotiate terms of extension in good faith

Sustained Growth

2009 2013 2017

608 MW 1,319 MW 1,800+ MW

24

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

All projects are reported at Northland’s net economic interest

Operations Operations

Laura Jehn

Achieving our Operational Objective

Generate sustainable

g p j

Generate sustainable

• perating income and steady

p g y returns by focusing on effectively managing assets

• ver the long term
• ver the long‐term

26

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

Operations Overview p

• Overview
• Operating Objectives

and Performance and Performance

• Operating Focus for

2013‐2014

• Driving Value through

g g Operations

27

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

Operating Facilities ‐ Thermal p g

Spy Hill, Saskatchewan North Battleford, Saskatchewan Cochrane, Ontario Kirkland Lake, Ontario Kingston Ontario Iroquois Falls Ontario Kingston, Ontario

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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

Iroquois Falls, Ontario Thorold, Ontario

Operating Facilities ‐ Wind p g

Jardin d’Eole, Quebec Mont Louis, Quebec Germany (Eckolstladt and Kavelstorf)

29

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

Operating Facilities ‐ Solar

Crosby McCann Rideau Lakes

p g

Belleville North Belleville South Rooftop, Ontario

30

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

Achieving Operations Excellence g p

Sustainability

• Delivering operating income of over $100M and

Sustainability

Delivering operating income of over $100M and proactively managing revenues, fuel and long‐ term maintenance agreements

Reliability

• Plants achieved an overall availability of 96%

Reliability

Plants achieved an overall availability of 96% during 2012

Continuous I

• Successful at mitigating transportation toll

i h h h f l i l

Improvement

increases through the use of alternative natural gas supply arrangements

Efficiency/

• Executed on Kingston facility’s $6M major

y/ Expertise

Executed on Kingston facility s $6M major maintenance program as scheduled in 2012

Environmental

• S lid en ironmental track record

Stewardship

• Solid environmental track record

Safety

• Cochrane facility has celebrated over 20 years

31

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

without a lost‐time incident

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

32

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

Development Development

Sam Mantenuto

Sustainable Growth, Long‐Term Value , g

Development success Development success is key to creating is key to creating shareholder value

34

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

Development Overview p Overview

Sam Mantenuto

Chief Operating Officer and Chief Development Officer

Gemini

John Brace

Gemini

President and Chief Executive Officer

Renewable

Mike Lord

General Manager, Renewable Power Development

d h k

Thermal

David Cheung Atkinson

General Manager, Thermal Power Development

35

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

Development Priorities p

Quality Projects Quality People Quality Process Yield

Our commitment is to deliver highly accretive projects with acceptable risk profiles p j p p

36

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

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 i h l i i i h h Generation technology is consistent with the company’s philosophy – clean and green, i.e. gas, hydro solar wind

37

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

hydro, solar, wind

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 C lti t lit t iti ti f l

• Cultivate quality opportunities, sometimes for several years

Focus on projects where risks can be understood, quantified and managed Be agile and open to new markets

38

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

Be agile and open to new markets

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

N d f bl

• Need for renewable power
• Jurisdictions addressing the intermittency of increasing renewable generation
• n 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)

39

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

• Demand recovery as the economy improves
• Continued policy drivers

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

40

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

Northland

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

first independently owned gas plants

• Cochrane and Kirkland Lake – 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

41

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

• Gemini, Marmora, Queen’s Quay…. – no different

Development Activity Map p y p

42

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

Development Pipeline p p

2 200 MW PIPELINE Thermal Combined heat and 2,200 MW PIPELINE ~40%

% of Total Pipeline

Combined heat and power, natural gas Wind ~30% Solar ~10% Hydro Pumped storage, run‐of‐river ~20%

43

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

Projects with Power Contracts j

Gemini

600 MW wind farm j $3 8 Project cost: $3.8B COD: 2017 Northland interest: 55%

Grand Bend Ground‐Mount Solar Frampton Kabinakagami

100 MW wind farm Project cost: $385M COD: 2015

50/50 partnership with First Nations

4x 10 MW solar farms Project cost: $240M COD: 2014 24 MW wind farm Project cost:$75M COD: 2015 66% partnership

with Municipality

4x 6 MW hydro projects Project cost: $180M COD: 2017

50/50 partnership with First Nations

44

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

p y

Total Project Costs of ~$5 Billion

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

46

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

Project Gemini: Agenda j g

• Why Northland
• Offshore Wind Overview
• About Gemini

O i – Overview – Project Partners – Key Project Elements y j

• Wind Resource
• Revenue Contract

C t ti E i t S l

• Construction, Equipment Supply
• Operations
• Financing
• Economics
• Project timeline
• Northland’s Role

47

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

• Northland s Role
• Summary

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
• ffshore projects:

48

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

• Two contract structure
• Self construct power export facilities

Offshore Wind Industry

North Sea Offshore Wind North Sea Offshore Wind

(Video)

49

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

Offshore Wind Industry

• Offshore wind capacity is growing:

Renewable Energy Targets p y g g – Currently 5,040 MW in 58 wind farms across 10 countries in Europe

Country Target Offshore Installed UK 18 GW 3 GW

Renewable Energy Targets – 21 offshore wind farms are under construction or in preparation, with a total capacity of over 5 500 MW

UK 18 GW 3 GW Denmark ~2 GW 1 GW Germany 10 GW 280 MW

total capacity of over 5,500 MW (1,500+ turbines) – Renewable energy targets are set at

France 6 GW Netherlands 6 GW 246 MW Belgium 2 GW 380 MW

gy g ambitious levels (totalling ~44 GW vs. ~5 GW currently operating), driving development of offshore wind due to

Source: European Wind Energy Association, Freshfields Bruckhaus Deringer LLP

development of offshore wind due to constraints on land

N th S i d bl f i ll f E

50

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

North Sea wind resources are capable of powering all of Europe – four times over.

Offshore Wind Industry

• Has matured significantly since inception over 15 years ago

M l l d th h i – Many lessons learned through experience

• 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 h l d l f j d i d f h themselves due to scale of projects and magnitude of growth

• 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

Off h i d i d t i t i d t

t i i t ith fi i l t th

51

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

Offshore wind industry is maturing and strategic investors with financial strength

are well positioned to get involved and establish expertise and a presence

Offshore Wind Industry

Construction of Offshore Wind Farm

y

Construction of Offshore Wind Farm

(Video)

52

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

Offshore Wind Industry: Lessons Learned

Historical Industry Issues Gemini Approach

y

Historical Industry Issues Gemini Approach

• Grid connection delays by local

transmission utility

• Build own connection

y

• Multi‐contract approach has

significant interface risk

• 2‐contract structure
• Fixed price, guaranteed schedule and

performance performance

• Inexperienced contractors and owner
• Experienced contractors and owner
• Weather delays
• Weather allowances in fixed price
• Weather delays
• Weather allowances in fixed price

contracts, healthy project contingency, modern purpose‐built installation vessels P itti d l P it i h d

• Permitting delays
• Permits in hand
• Equipment failures
• Modern purpose‐built installation vessels,

fixed‐price contract under warranty and

53

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

fixed‐price contract under warranty and long‐term maintenance contracts

Overview – Highlights g g

• 600 MW (2 sites x 300 MW) offshore wind farm in the Netherlands

( ) – €2.8B (CAD$3.8B) total capital cost – Will be 2nd largest offshore wind farm in the world 150 4 MW Si t bi – 150 x 4 MW Siemens turbines

• 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

54

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

• Electricity for 785,000 Dutch households per annum

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

55

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

NPI

55%

Siemens

20%

HVC

10%

TO

5%

Van Oord

10%

Project Partners – Siemens j

• Siemens is the global leader in offshore wind turbines with more

Figure 1: Market share of Offshore Turbine Manufacturers – 2012 Installations

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

• Siemens is a significant investor in offshore wind projects through

Siemens Project Ventures

Figure 2: Market share of Turbine Manufacturers – cumulative to date

Source: European Wind Energy Association

• 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

56

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 Source: European Wind Energy Association

Project Partners – Van Oord

Van Oord Offshore Experience

j

• Van Oord is a leading international contractor

Belwind I (Belgium) BoP, EPC Contractor (foundations, electrical, infrastructure, marine,

• perations)

165 MW Prinses Amalia Windpark BoP, EPC Contractor (foundations, electrical, infrastructure, marine, 120 MW

g specializing in dredging, marine engineering and offshore projects (wind, oil, and gas)

• Van Oord's offshore wind projects business

(Netherlands)

• perations)

Dan‐Tysk (Germany) Infield cable installation 288 MW Arklow Bank (UK) Foundation and turbine installation 25 MW

• Van Oord s offshore wind projects business

unit offers EPC contracting and construction services to the offshore wind industry Van Oord has furthered its commitment of

(UK) installation Scroby Sands (UK) Foundations and in‐field cable installation 60 MW Horns rev I (Denmark) Foundation Installation 160 MW

– Van Oord has furthered its commitment of this business unit by ordering a purpose built jack‐up vessel and a purpose built cable laying vessel

Burbo Bank (UK) Foundation and turbine installation 90 MW

cable laying vessel

• 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

57

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

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

58

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

Role in Gemini: (1) Developer (2) Providing 5% of the equity in the project

Key Elements: Wind Resource y

• The wind in the North Sea is well‐understood

Gemini and uniform over large areas

• Gemini production forecast based on met

tower located 40 km to the east of the site

Met Tower

Gemini location tower located 40 km to the east of the site – 10+ years of data available – Alpha Ventus project located beside met t h 3 f ti d i tower has 3 years of operations and is exceeding original expectations by 15%

• ver first two full years of operation

N th S h ll t i d – North Sea has an excellent wind resource (~10 m/s annual average wind speed = 60%+ gross capacity factor) Alpha Ventus location

• Third party resource analysis performed

by GL Garrad Hassan and Anemos; both reviewed by Mott McDonald (lenders

59

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

technical advisor)

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

• ffshore wind

O l 80% f P90 d ti i i d t i th f ll b id

• Only 80% of P90 production is required to receive the full subsidy

– 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

60

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

Key Elements: Equipment & Construction q p

T h I f i l l Two party EPC contracting strategy

• Two contract structure where Interface matrix clearly

defines scope split between Balance of Plant and Turbine Supply Agreement

Siemens

• Clear contracting strategy that minimizes interface risk
• Contracting structure is based on a proven concept, as

Prinses Amalia and Belwind I wind farms used a similar

Interface Arrangement

Prinses Amalia and Belwind I wind farms used a similar EPC contracting strategy

Van Oord

61

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

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

62

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

Key Elements: Financing Plan y g

Project Gemini Capital Cost Breakdown ~EUR 2.8B (CAD$3.8B) Total Capital Costs

~70% Senior Debt ~10% Junior Debt ~15‐16% Equity ~4‐5% Pre‐Completion Revenues

Northland 55% Investors Investors European Infrastructure Bank Investors Northland Power (TBD) Siemens 20% Van Oord 10% Commercial Banks Export Credit Agencies Other (TBD) Van Oord 10% HVC 10% Commercial Banks T h Off h 5%

63

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

Typhoon Offshore 5%

*This slide is for illustrative purposes. The financing structure will be finalized at financial close

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

• f the grid assets

g

• Northland will reserve the decision

to invest in the grid assets permanently or divest them after project completion

64

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

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

65

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

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 Fi i l Cl Fi t h lf f 2014 Financial Close 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

66

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

Project Gemini: Northland’s Role j

As lead investor, Northland will: ,

• 1. Be the major voice on further project development, construction and
• perations
• 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

t d l i ti l i ti d t t t th j t stand‐alone organization, logistics and processes to construct the project and operate it after COD

67

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

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

68

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

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

69

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

• Helps ensure Northland s ability to provide dividend over the long‐term

Renewables Renewables

Mike Lord

Renewable Activity Map y p

71

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

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

72

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

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 ~$240M
• Last project expected COD in 2014

p j p

ONTARIO 73

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

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 ~$385M
• E pected COD in 2015
• Expected COD in 2015

ONTARIO 74

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

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 ~$180M*
• Expected COD in 2017

ONTARIO 75

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

*Capital costs are currently under review

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

QUEBEC

Partner: 66/33 equity with the Municipality of Frampton

• Environmental permitting in process
• Capital Cost ~$75M
• Capital Cost $75M
• Expected COD in 2015

76

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

Featured Renewable Projects: Marmora Pumped Storage p g

• 400 MW hydro‐pumped storage

Marmora site today

y p p g project located in Marmora, Ontario

• Supports grid stability
• Uses proven technology
• Ideally located

Artist’s rendering of completed site

• Strong community and multi‐party

political support

ONTARIO 77

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

Renewables Concluding Remarks g

E it d b t th f t !

78

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

Excited about the future!

Thermal Thermal

David Cheung Atkinson

Thermal Activity Map y p

80

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

Topics to Cover p

• Featured Projects

j

– Queen’s Quay – GM Oshawa – Illinois Peakers

81

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

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 T t H d th d f ti d t – OPA, Toronto Hydro agree on the need for new generation downtown – Provincial ministries of Energy, Infrastructure and Finance agree that the project would be beneficial

82

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

– Initial public consultation was very positive; City of Toronto also supportive

Featured Thermal Projects: GM Oshawa, Ontario ,

• 103+ MW, combined

cycle CHP

• Located at the GM Oshawa

l f plant, east of Toronto

• Important project to provide:

Electricity to Ontario – Electricity to Ontario grid, and – Steam to GM

• Strong support from local

stakeholders: GM Ci f O h – GM, City of Oshawa – Neighbouring cities of Pickering, Ajax, Whitby and Scugog – Local members of parliament (all PC) and NDP energy critic

83

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

p ( ) gy

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

84

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

– Investor owned utilities

Thermal Concluding Remarks g

85

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

Excited about the future!

BREAK

86

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

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

• pportunities to be innovative in

i l h i i executing value enhancing transactions

88

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

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

89

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

Overview of Progress Since 2011 g

Outlook in 2011 2013 Expected Outlook for 2014 and Beyond Beyond

$1.08 / Share Annual Dividend (Monthly dividends of Continue to pay dividend well into the future

 

$0.09/share) Creation of significant value f d l i j t Develop up to $360M to $400M EBITDA by 2014 EBITDA $245M to $255M EBITDA $380M to $400M by 2015 full year from developing new projects $ y (annualized basis)

 

Convert classes B, C, All contingent shares converted in Completed Early Northland Share Classes shares and Replacement Rights by 2014 August 2013



p y



Return to below 100% Dividend Payout Ratio* payout ratio by 2014 with current advanced development 105% to 115% of free cash flow**

***

90

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

*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

Overview of Progress Since 2011 (cont’d) g ( )

O tl k i 2011 2013 E t d O tl k f 2014 d B d Outlook in 2011 2013 Expected Outlook for 2014 and Beyond

Expected to raise $1B

• f “debt” and $150M

No capital market i i 2013 d Since 2011 expected to raise $1.2B

• f debt, $110M of equity

(Dividend Re investment Plan) and Capital Raises

• f debt and $150M

to $300M

• f equity over the

next 2 years raises in 2013 expected

• ther than DRIP

 (Dividend Re‐investment Plan) and $120M of preferred shares by end

• f 2014 (excluding Gemini)



Liquidity

• Maintain $250M

line of credit

• Continued access to

capital markets

• Expansion of line of credit to $450M‐ $500M underway
• Continued access to capital markets
• Dividend Reinvestment Program

capital markets Dividend Reinvestment Program



• Active and

comprehensive risk

• Continuous improvement in ERM program

Risk Management comprehensive risk management (ERM)



91

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

CORPORATE AND PROJECT ECONOMICS PROJECT ECONOMICS

92

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

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 $1 08 Annual Dividend $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 S&P Debt Rating BBB–

93

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

S&P Debt Rating Positive Outlook

* As of September 11, 2013

Strong Balance Sheet g

7%

Preferred Shares ENTERPRISE VALUE

1%

Convertible

Debentures/Shares

$3.6B***

S b 2013 VALUE

53%

Equity

at recent $14.56 share price*; 131 illi h **

September 2013

39%

Non‐Recourse Project Debt

131 million shares**

j

94

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

* Closing September 11, 2013 ** Includes Convertible Class A *** Excludes minority interest

Stability and Growth

$700

y

EBITDA by Segment Type*

$500 $600 $700 ions) $200 $300 $400 ed EBITDA ($ milli $0 $100 $200 Adjuste ‐$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

95

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

*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

2012 EBITDA of $179M expected to double by 2014

LIQUIDITY AND DIVIDEND

96

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

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 – $250M currently – expansion to $450M to $500M 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

$1.8B

from

• perating assets

$0.3B

from construction projects

$0.9B

from contracted development projects

Northland s Tax Pools

97

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

Available Future

Liquidity Management q y g

Northland has robust liquidity to service its dividend payments

1.8x Coverage on Gross Dividends

q y p y prior to the commissioning of Project Gemini

2.1x Coverage on C h Di id d

DRIP Dividends

Cash Dividends

Cash Dividends

Free Cash Flows 2014 ‐ 2017 Cash Balance June 30, 2013 Unused Line of Credit June 30, 2013 Line of Credit Expansion Re‐Financing Proceeds from North Battleford Discretionary Development Spending 2014 ‐ 2017 Cash Raised from DRIP Program Total Dividends 2014 ‐ 2017

98

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

This chart has been compiled by management for illustrative purposes based on current financing expectations

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 $111M re‐financed with a project bond January 2013 – North Battleford $542M in process of completing refinancing with a project bond North Battleford $542M in process of completing refinancing with a project bond in September 2013

• Northland’s corporate facility matures in May 2015

$ – $32M drawn as of June 30, 2013 – $125M 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 $205M matures in 2015

– Project operating well; we are exploring potential refinancing opportunities in advance of the maturity Si 2011 N hl d h i ll d d i i d b i i

99

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

Since 2011 Northland has materially decreased its upcoming debt maturities

Illustrative Payout Ratio with Gemini y

• Following COD of North Battleford and Ground‐Mount Solar, Northland’s payout ratio falls below

100% for fiscal year 2014 % y

• Gemini or any large project is likely to temporarily elevate the payout ratio above 100%
• Northland’s investment in Gemini reduces the payout ratio to significantly below 100% once the

project reaches commercial operations and provides significant support to the long‐term perpetuation of the dividend

600 MW Build‐Out Program Gemini Build‐Out

Cash Inflow from Build‐Out Programs

• Cash Inflow from Build‐Out Program

Normal payout ratio level prior to servicing dividends Impact of Gemini far smaller th i t f N th B ttl f d Payout Ratio prior to servicing dividends for growth projects Project Gemini achieves COD than impact of North Battleford and Ground Mount Solar 100% Payout Ratio North Battleford & Ground Mount Solar achieve COD 100% Payout Ratio

100

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

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Status‐Quo Payout Ratio Pro‐Forma (Gemini) This chart has been compiled by management for illustrative purposes based on current financing expectations.

FINANCING PLANS

101

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

Recent and Future Financing g

Successfully Completed Financing

• 2012 Preferred Share Offering
• Phase I Ground‐Mount Solar project

2013 S Hill B d R fi i

• 2013 Spy Hill Bond Re‐financing

Future Financings

• N

th B ttl f d B d R fi i *

• North Battleford Bond Re‐financing*
• McLean’s Mountain wind farm
• Phase II Ground‐Mount Solar projects
• Grand Bend wind farm
• Frampton wind farm
• Kabinakagami hydro facility
• Kabinakagami hydro facility
• Gemini Offshore wind project

N ddi i l i i d f i d d l j l di G i i

102

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

No additional equity required for committed development projects excluding Gemini

* The North Battleford $542M debt is in the preliminary process of being refinanced with a project bond.

Review of Capital Raises 2011 to 2013 p

• At the 2011 Investor Day, Northland expected $1 billion of debt and $150 to $300 million of equity to

y p q y be raised over the subsequent two years to fund the advanced development pipeline

• Current capital raises expected between 2011 and end of Advanced Development Pipeline

(excluding Gemini)

“Debt” “Equity”

Project Debt (excluding refinance) $1,200M ‐ Preferred Shares (non‐dilutive) ‐ $120M DRIP Proceeds (until 2014) ‐ $110M T t l $1 200M $230M

• Northland does not expect further capital markets funding for its current advanced development

pipeline through the end of 2013 (or beyond for all projects except Gemini)

Total $1,200M $230M

pipeline through the end of 2013 (or beyond for all projects except Gemini)

• Credit rating outlook has improved from “stable outlook” to “positive outlook”

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Project Gemini j

• Northland has committed to investing in 55% of Project Gemini’s common

g j equity and for the purchase of shares from the developer (Typhoon Offshore)

• Northland has also indicated an interest in investing in some of the project’s

“Junior Debt” securities (Mezzanine Securities)

• In addition, some of Northland’s investment at financial close represents:

A t t d t b t d t i l ti f – Amounts expected to be returned at commercial operations from pre‐ completion revenues – An investment in transmission assets which may be retained or sold at commercial operations – Management expects to fund these items with bridge debt to be repaid when cash flows are received or when a final investment decision is made when cash flows are received or when a final investment decision is made at commercial operations

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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

Project Gemini j

Project Gemini Capital Cost Breakdown ~EUR 2.8B (CAD$3.8B) Total Capital Costs

~70% Senior Debt ~10% Junior Debt ~15‐16% Equity ~4‐5% Pre‐Completion Revenues

Northland 55% Investors Investors European Infrastructure Bank Investors Northland Power (TBD) Siemens 20% Van Oord 10% Commercial Banks Export Credit Agencies Other (TBD) HVC 10% Typhoon Offshore 5%

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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

Typhoon Offshore 5%

*This slide is for illustrative purposes. The financing structure will be finalized at financial close

Project Gemini j

• Northland’s potential investment is summarized as follows:

p

Total Investment ($CAD millions) Gemini Equity and Share Purchase Price ~ $350 q y Optional Mezzanine Securities ~ $0 – $110 Total Investment Range at Financial Close $350 – $460

• Northland’s Illustrative Financing Plan:

Investment Financing ($CAD millions) Total Investment Range at Financial Close $350 – $460 Bridge loan to Equity Distribution at COD* ($45) Bridge loan for Deferred GridCo Investment ($125) Net “Equity” Funds Required at Financial Close $180 – $290

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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

q y q $ $

* Estimate of pre‐completion revenues

Project Gemini j

• Northland’s “net equity” investment could be funded by a number of

q y y different sources including refinancing proceeds, preferred shares, corporate debt facilities, convertible debentures or common shares

Common Shares $290

Remaining Equity

Preferred Shares or Convertible Debentures $180

Up to $100

Line of Credit ($250M Facility)

Up to $250

Re‐Finance Existing Operating Projects

Up to $50

Potential Sources of Net "Equity" d Net "Equity" Funds

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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

Funds

FINANCE CONCLUSION

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Finance Conclusion

• Northland is committed to maintaining its dividend

g

• Consolidated economics for operating projects continues to be solid
• Northland continues to actively manage risk and pursue a risk
• Northland continues to actively manage risk and pursue a risk‐

managed approach to its business

• Growth from advanced development projects expected to further

Growth from advanced development projects expected to further service current common share dividends well into the future

• Northland has solid resources to manage liquidity and more than

Northland has solid resources to manage liquidity and more than cover dividends as growth projects are completed

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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

Wrap Up Wrap Up

John Brace

Delivering Results You Can Count On g

 Commitment to dividend  Creating value through development  E

ti j t ti d b d t

 Executing projects on time and on budget  Achieving operational excellence and continuing to

enhance facilities’ value throughout their lifespan

 Visible pipeline of exciting and doable growth

• pportunities

 Demonstrated leaders in recognizing, creating and

g g, g seizing opportunity – time and time again

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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

Our Story Remains the Same… y

• We are delivering on our commitments of

We are delivering on our commitments of stability and superior returns over the long term

• We are excited about the future and continuing

to add value for our shareholders

Management’s ownership of more than 41% ensures alignment with shareholder interests

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Q & A

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Appendix Appendix

Operating Facilities p g

Project Location Size Ownership Technology PPA Term Gas Term Thorold ON 265 MW 100% Natural gas cogeneration 2030 2030 Thorold ON 265 MW 100% Natural gas cogeneration 2030 2030 Kingston ON 110 MW 100% Natural gas combined cycle 2017* 2017 Iroquois Falls ON 120 MW 100% Natural gas cogeneration 2021* 2015‐16 Spy Hill SK 86 MW 100% Natural gas peaking plant 2036 n/a^ Panda‐Brandywine MD 230 MW 19% Natural gas combined cycle 2021 2021 Kirkland Lake ON 132 MW 67%** Biomass and natural gas 2015* 2015 Kirkland Lake ON 132 MW 67% combined cycle and peaking 2015 2015 Cochrane ON 42 MW 67%** Biomass and natural gas combined cycle 2015 2016 Mont Louis QC 100 MW 100% Wind 2031 n/a Mont Louis QC 100 MW 100% Wind 2031 n/a Jardin d’Éole QC 128 MW 100% Wind 2029 n/a Kavelstorf and Eckolstadt Germany 22 MW 100% Wind n/a*** n/a / Roof‐top Solar ON 2 MW 75% Solar 2031 n/a North Battleford SK 260 MW 100% Natural gas combined cycle 2033 n/a^ Ground‐Mount Solar (Sites #1 5) ON 50 MW 100% Solar 2033 n/a (Sites #1‐5)

* Facilities have option to extend power contracts ** Northland has an effective 77% residual economic interest in these facilities *** German electricity production is purchased by local power utilities at predetermined prices as required by German legislation ^ SaskPower effectively assumes all natural gas‐price risk under the long‐term PPA

Construction & Development Projects p j

E t d PPA E t d

Under Construction

Project Location Size Ownership Technology Expected COD PPA Term Expected Capital Cost Ground‐Mount Solar (Sites #6‐9) ON 40 MW 100% Solar 2013‐ 2014 20 years $200 million McLean’s Mountain ON 60 MW 50% Wind 2014 20 years $190 million*

Ad d D l t

Project Location Size Ownership Technology Expected COD PPA Term Expected Capital Cost

Ground‐Mount Solar ON 40 MW 100% Solar 2014 20 years $240 million

Advanced Development

(Sites #10‐13) ON 40 MW 100% Solar 2014 20 years $240 million Grand Bend ON 100 MW 50% Wind 2015 20 years $385 million* Frampton QC 24 MW 67% Wind 2015 20 years $75 million* Kabinakagami ON 26 MW <100%* Run‐of‐river hydro 2017 40 years $180 million* Gemini

Netherlands

600 MW 55% Offshore wind 2017 15 years $3.8 billion**

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*Represents full cost of the project (100%). Northland’s ownership interest is estimated to be 50% for Kabinakagami ** Represents full cost of the project (100%), as disclosed in an August 1, 2013 press release available on Northland’s website at www.northlandpower.ca

Corporate & Project Economics p j

Project Thermal 2012 EBITDA 2012 Debt Service 2013* EBITDA 2013* Debt Service Run Rate** EBITDA Run Rate** Debt Service Cochrane*** 1 1M n/a 1M‐2M n/a 7M‐9M^ n/a Cochrane 1.1M n/a 1M 2M n/a 7M 9M n/a Kirkland Lake*** 17.0M n/a 16‐17M n/a 15M‐17M n/a Iroquois Falls 38.4M 0.2M 36M‐37M Less than 1M 36M‐38M Less than 1M 1M Kingston 43.1M 16.9M 51M‐52M n/a 50M‐53M n/a Thorold 58.6M 39.5M 55M‐56M 39M 54M‐56M 39M‐41M Spy Hill 16 3M 9 8M 16M 17M 9M 17M 18M 9M 10M Spy Hill 16.3M 9.8M 16M‐17M 9M 17M‐18M 9M‐10M North Battleford n/a n/a 49M‐50M 20M 90M‐93M 47M‐51M Total Thermal 174.5M 66.4M 224M‐231M 68M 269M‐284M 95M‐102M

* Forecasted EBITDA and debt service costs for 2013 ** Run Rate EBITDA and debt service represents the estimated EBITDA and debt service for facility given no unusual events/external factors. 117

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

Includes current operating facilities, construction projects and advanced development projects (excluding Gemini) *** Northland has an effective 77% residual economic interest in these facilities. The amounts represent the management fees received by Northland which is consistent with disclosure in Northland’s quarterly MD&A. ^ Run rate EBITDA once Cochrane becomes entitled to performance incentive fee

Corporate & Project Economics p j

Project Renewables 2012 EBITDA 2012 Debt Service 2013* EBITDA 2013* Debt Service Run Rate** EBITDA Run Rate** Debt Service Jardin d’Éole 16 1M 14M 18M‐19M 14M 18M‐19M 13M‐14M Jardin d Éole 16.1M 14M 18M 19M 14M 18M 19M 13M 14M Kavelstorf & Eckolstadt 2.9M n/a 2M‐3M n/a 2M‐3M n/a Solar 0.6 M n/a 13M‐14M 8M 32M‐33M 18M‐19M So a 0 6 /a 3 8 3 33 8 9 Mont Louis 12.0M 10M 15M‐16M 10M 15M‐16M 10M‐11M Total Renewables 31.6M 24M 48M‐52M 32M 67M‐71M 41M‐44M

* Forecasted EBITDA and debt service costs for 2013 118

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

Forecasted EBITDA and debt service costs for 2013 ** Run Rate EBITDA and debt service represents the estimated EBITDA and debt service for facility given no unusual events/external factors. Includes current operating facilities, construction projects and advanced development projects (excluding Gemini)

Corporate & Project Economics p j

Project 2012 EBITDA 2012 Debt Service 2013* EBITDA 2013* Debt Service Run Rate** EBITDA Run Rate** Debt Service Panda Brandywine (19% equity) Less than 1M n/a Less than 1M n/a Less than 1M n/a General and Administrative (12.8M) 2.9M^ (13M) 5M^ (13M)‐(14M) 1M^ Administrative Development Expenses (13.7M) n/a (15M)‐(16M) n/a (15M)‐(16M) n/a Total Total Corporate (26.5M) 2.9M

(28M)‐(29M)

5M (28M)‐(30M) 1M

* Forecasted EBITDA and debt service costs for 2013 119

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

Forecasted EBITDA and debt service costs for 2013 ** Run Rate EBITDA and debt service represents the estimated EBITDA and debt service for facility given no unusual events/external factors. Includes current operating facilities, construction projects and advanced development projects (excluding Gemini) ^ Corporate debt service costs includes debenture and letter of credit interest payments

Corporate & Project Economics

Construction

($ millions)

2012 EBITDA 2012 Debt Service 2013* EBITDA 2013* Debt Service Run Rate** EBITDA Run Rate** Debt Service

p j

Ground‐Mount Solar (Sites #6‐9) n/a n/a 1M Less than 1M 25M‐26M 16M‐17M*** McLean’s Mountain n/a n/a n/a n/a 9M‐11M~ 5M‐7M*** Mountain Total Construction ‐ ‐ 1M Less than 1M 34M‐37M 21M‐24M 2012 2012 2013* 2013* Run Rate** Run Rate** Development 2012 EBITDA 2012 Debt Service 2013 EBITDA 2013 Debt Service Run Rate EBITDA Run Rate Debt Service Ground‐Mount Solar (Sites #10‐13) n/a n/a n/a n/a 28M‐29M 18M‐19M*** Grand Bend~ n/a n/a n/a n/a 25M‐27M 13M‐14M*** Frampton~ n/a n/a n/a n/a 6M‐7M 3M‐4M*** Kabinakagami~ n/a n/a n/a n/a 7M‐9M 4M‐6M***

* Forecasted EBITDA and debt service costs for 2013

Total Development ‐ ‐ ‐ ‐ 66M‐72M 38M‐43M

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** Run Rate EBITDA and debt service represents the estimated EBITDA and debt service for facility given no unusual events/external factors. Includes current

• perating facilities, construction projects and advanced development projects (excluding Gemini)

*** Estimated debt service costs for projects that have not yet secured financing ~ Represents Northland’s ownership interest (50% ‐ McLean’s Mountain, Kabinakagami (estimated), Grand Bend) (67% ‐ Frampton)

Corporate & Project Economics

Project 2012 2012 2013* 2013* Run Rate** Run Rate**

p j

Project Group 2012 EBITDA Debt Service 2013* EBITDA Debt Service Run Rate** EBITDA Run Rate** Debt Service Thermal 174.5M 66.4M 224M‐231M 68M 269M‐284M 95M‐102M Renewables 31.6M 24M 48M‐52M 32M 67M‐71M 41M‐44M Corporate (26.5M) 2.9M

(28M)‐(29M)

5M (28M)‐(30M) 1M Construction ‐ ‐ 1M Less than 34M‐37M 21M‐24M Construction ‐ ‐ 1M 1M 34M‐37M 21M‐24M Development ‐ ‐ ‐ ‐ 66M‐72M 38M‐43M TOTAL 179.6M 93.3M 245M‐255M 105M 408M‐434M 196M‐214M

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* Forecasted EBITDA and debt service costs for 2013 ** Run Rate EBITDA and debt service represents the estimated EBITDA and debt service for facility given no unusual events/external factors. Includes current operating facilities, construction projects and advanced development projects (excluding Gemini)

Investor Relations Contacts

Sarah Charuk

Director of Communications 647 288 1105 647.288.1105

Adam Beaumont

Director of Finance Director of Finance 647.288.1929

Barb Bokla Barb Bokla

Manager, Investor Relations 647.288.1438

www.northlandpower.ca

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