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

Executing on Growth Investor Presentation May 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 2015 Annual Report and 2015 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  1,388 MW * in operation (thermal, wind, and solar facilities)  932 MW (642 MW* net) under construction Stability Growth Commitment  Well-diversified geographically and by   Developing thermal, Management has a technologies wind, and solar vested interest projects in North through a 35%  Generate long-term America, Europe, and ownership interest stable cash flows Mexico.  98% of revenues from long-term power contracts 2 * Represents Northland’s economic interest

Northland’s Asset Diversification In operation Under construction Geographic Under Under Regions: Operating* Construction* Technologies: Operating* Construction* Canada 1,366 MW - Thermal 943 MW - The Netherlands - 360 MW Wind 330 MW 642 MW Germany 22 MW 282 MW Solar 115 MW - Total 1,388 MW 642 MW Total 1,388 MW 642 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

Development – Our Pipeline Operating Development Construction* Assets* Pipeline Advanced 642 1,388 > 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 330 MW* * Represents Northland’s economic interest Solar 115 MW* Financing 5

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 Nordsee One 60 kilometers apart Offshore Wind Europe Project Costs: Over € 4 billion Gemini Management focused on executing 932MW * of projects currently under construction 6 * Northland’s economic interest totals 642 MW.

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, pre-completion revenues started in March 2016 7

Gemini – Milestones Milestones Status OHVS 2016 Focus  Cable manufacturing &  installation BU ZE  Turbine foundations  (monopiles) manufacturing & installation   Offshore substation  Turbines installation & Offshore  commissioning Onshore Substantially  First Power Completed HDD TenneT LHVS prior to 2016  Full commercial operations 2017 (COD) 8

Gemini – Turbine Installation February 2016: First Turbine Installed 9

Gemini – Offshore Substation 10

Gemini – Nacelles, Towers, and Blades at Port 11 See appendix for more pictures

Gemini – Looking to Operations  Gemini started to generate operating revenues in March 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 average wind speeds of contract-for-differences for turbines and balance that tops up market- approximately 10 m/s. of plant maintenance based revenues to (underwater, land • Offshore wind seasonal ~ € 169/MWh for defined substation etc.) profile amount of annual • Guarantees 95% production availability Subsidy (TenneT - Fixed price: Utility) € 169/MWh Market Price (Spot Market) Mar May Oct 12 * 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) – guarantees maintenance high operating availability Partners RWE Innogy (15%) COD 2017 Additional facts Rights to develop two additional projects (Nordsee Two & Three) over the next decade. 13

Nordsee One – Construction Update Milestones Status Cable  Manufacturing Started  Installation 2016 Turbine Foundations (Monopiles)  Manufacturing Completed  Installation Completed Offshore Substation  Manufacturing Started  Installation Summer 2016 Turbines  Manufacturing To be started  Installation (First Power) 2017 COD 2017 Foundation installation 14

Nordsee One – Foundation Installation 15 First foundation installed in December 2015

Nordsee One – Offshore Substation 16

Nordsee One – Construction Update As at December 2015 Monopiles and Transition Pieces at port 17

Nordsee One – Construction Update Substation jacket Foundations transported to sea Foundation installation Substation jacket installed May 2016 All Foundations installed April 2016 18