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 manufacturing platforms.

• Strategic diversification enhances consolidated ROE and cash flow, with no external equity needs through 2030.

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

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

Financial performance and targets

• Achieved long-term ROE of 12.1%, outperforming the utility sector average of 9.8% since 1994.

• 2025 EPS guidance midpoint is $6.47, with a projected ROE of 15.1–15.7%.

• Targeting 10–12% total shareholder return (TSR) and 7–9% long-term EPS growth.

• Dividend growth rate targeted at 6–8% with a payout ratio of 50–60%.

• 86 consecutive years of dividend payments, with a 2025 indicated dividend of $2.10.

Electric platform highlights

• Serves 134,000 customers across MN, ND, and SD with a vertically integrated utility.

• Five-year capital spending plan of $1.9B, targeting a 10% rate base CAGR through 2030.

• Investments in renewable generation, storage, and transmission to support clean energy and grid reliability.

• Targeting 68% renewable energy generation and a 62% reduction in carbon emissions by 2030 (from 2005 levels).

• Constructive regulatory environment with timely cost recovery and favorable mechanisms.