Otter Tail (OTTR) Investor presentation summary

Strategic vision and business model

• Focus on building top-performing companies with a diversified structure anchored by a regulated electric utility and robust manufacturing operations.

• Mission centers on delivering value to shareholders, customers, and employees through operational excellence and growth.

• Core values include integrity, safety, people, performance, and community.

• Strategic diversification enhances consolidated ROE and cash flow, supporting a balanced income and growth model.

• Internally financed growth strategy with no external equity needs through at least 2030.

Financial performance and targets

• Electric utility segment delivers consistent earnings, with a 6-7% CAGR in diluted EPS and a long-term target of 70% earnings mix.

• Manufacturing platform consistently accretive, contributing 30% of consolidated earnings and generating positive free cash flow.

• Long-term EPS growth rate targeted at 7-9%, with a 10-12% total shareholder return (TSR) and a dividend yield of ~3%.

• Dividend growth rate targeted at 6-8%, with 87 consecutive years of payments and a 50-60% payout ratio.

• Strong balance sheet with $706M liquidity and investment grade credit ratings.

Electric platform: growth, investments, and regulatory environment

• Five-year capital spending plan of $1.9B, targeting a 10% rate base CAGR and investments in renewable generation, storage, and transmission.

• Major projects include Solway Solar, Abercrombie Solar, Hoot Lake Battery, and significant regional transmission investments.

• Focus on reliability and affordability during energy transition, with a 90% CO₂ reduction target by 2050.

• Constructive regulatory jurisdictions with timely cost recovery and favorable mechanisms; 90% of capex expected to be recovered through existing channels.

• Customer rates remain well below regional and national averages, supported by renewable tax credits and system-wide recovery.