CAPSTONE INFRASTRUCTURE 2015 OUTLOOK December 19, 2014
2015 Outlook Adjusted EBITDA1 in 2015 anticipated to be approximately 115 million to 125 million. Assumptions include: Lower contribution from Cardinal as it begins operations as a dispatchable plant under new OPA contract. Bristol…
2015 - 2017 Growth Assumptions SIX MEDIUM IMPROVED TERM WIND OUTCOMES FOR BRISTOL WATER PROJECTS WHITECOURT Settlers Landing Projected higher AB Achieve financial Snowy Ridge power pool prices performance through Ganaraska…
Adj. EBITDA Bridge to 2017 Run Rate 5
AFFO1 Bridge to 2017 Run Rate Long-Term Targeted Payout Ratio of 80% 1 - Adjusted Funds from Operations is a non-GAAP financial measure and does not have any standardized meaning prescribed by International Financial Reporting…
Capstones Development Pipeline Operating Assets Run Rate Construction Assets Capacity COD / EBITDA 5 Yr. Avg. Development Assets Stage Capacity Ownership Total Cost CSE Equity Adj. EBITDA (Net) Expected COD (100%) AFFO Skywa y 8 Opera…
Corporate Liquidity Management 8
Corporate Liquidity Management Excluding Bristol Water 9
BRISTOL WATER UPDATE The following observations are those of Capstone Infrastructure. The ultimate decision of whether to accept the UK water regulators final determination on the 2015 2020 business plan resides with Bristol Waters Board…
Bristol Water AMP6 Final Determination Summary Ofwat set allowable total wholesale expenditure of 409 million 14% higher than Draft Determination of 359 million Average household bill falls to 164 in first year, then to 152…
Key Industry Members Ofwat is the economic regulator Ofwats primary duties are to: Protect the interests of consumers Ensure efficient companies are able to finance their functions Ensures the sustainable development of the…
Bristol Water Overview Average SIM Score 11/12-13/14 Average Age of Mains 80 90 80 60 70 40 60 50 20 Source: Ofwat SIM Rankings Source: PR09 Asset Inventory Treatment Complexity W3/W4 Percentage of Upstream Assets 100%…
Competitive Customer Rates Average Water Charges 2014/15 Source: WaterUK, February 2014 14
Customer Input on Business Plan Customer Support BW presented 4 choices Customers opted for improved service levels with small billing impact Support for BWs plan was 92% (acceptable or very acceptable) Scenario Impact on…
External Advisors on Business Plan Keith Harris Independent View of Plan Base Totex Enhancement Expenditures Efficiency, Cost of Capital, Financial, Overall Plan Assurance 16
Final Determination Outcome Industry Bill Decreases 25% Ofwat average bill reduction 4.5% across the industry 20% BW reduced by 20% compared to current bill 15% 10% Industry Average: 4.5% Bristol Water Base Totex Gap 5% 450…
Capstones Key Concerns THREE MAIN AREAS Totex WACC/Small Company Premium Pricing /PAYG 18
Next Steps Established Process Companies have until Feb 12, 2015 to decide whether to accept final determinations Ofwat BW Board of Directors will meet on Feb 5, 2015 Rejection would require Ofwat to refer to the CMA CMA panel…
Capstones Strong Fundamentals High quality, diversified portfolio delivering strong performance Investments in perpetual utilities expected to generate growing cash flow Solid balance sheet Project development pipeline and…
Non-GAAP Performance Measures Definitions (continued) Adjusted Funds from Operations (AFFO) Capstones definition of AFFO measures cash generated by activities of infrastructure business investments which is available for dividends and…
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