Investor Presentation

November 2012

1

Forward Looking Information 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 instatements 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, cash flows and dividend payments, the construction, completion, attainment ofcommercial operations cost and output of development projects plans for raising capital and the operations businesscommercial operations, cost and output of development projects, plans for raising capital, and  the operations, business, financial condition, 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 asother 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 2011 Annual Report and 2011 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 theevents anticipated by the forward‐looking statements will transpire or occur The forward‐looking statements contained in thisevents 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.

2

Northland Overview

Develop Build Own OperateFinance

Canadian‐based Independent Power Producer since 1987

Well‐diversified across many clean and green technologies and geographical jurisdictions

Full lifecycle developers, owners and operators of our facilities

Strategic and disciplined organic growth platformStrategic and disciplined organic growth platform 

Stable, long‐term contracted (non‐merchant) projects with creditworthy counterpartiescreditworthy counterparties

S&P debt rating BBB– positive outlook 

Focus on contracted low risk cash flow streams little interest in

3

Focus on contracted low risk cash flow streams; little interest in taking positions on commodities, FX and interest rates

Stability and Growth

Stability GrowthCommitment to $1.08/share  annual dividend

Development Pipeline consists of construction and development assets

1,005MW in operating assets

15.3*‐year weighted average PPA life11%

11%$2.0 billion in available tax pools

Long average tenure of management

11%

2,800MWLong average tenure of management team

Exceptional environmental, health 78%

and safety records

Management ownership: 37%↑**320MW In Construction

4* Includes operating projects and projects under construction. For operating projects only, the weighted average PPA life is 13.6 years.** Includes conversion of merger shares

3 0MW In Construction280MW Advanced Development2,200MW Development Pipeline

Diversified by Geography and Technologyh1. Cochrane 32 MW*

2. Iroquois Falls 120 MW

3 Kirkland Lake 99 MW*

Germany

10

3. Kirkland Lake 99 MW

4. Thorold 265 MW

5. Kingston 110 MW

11

6. North Battleford 260 MW

7. Spy Hill 86 MW CANADA

8. Jardin d’Éole 128 MW

9. Mont Louis 100 MW

l f

Quebec 8

9

6

710. Kavelstorf  7MW

11. Eckolstädt 14 MW

12. Brandywine 44 MW**Saskatchewan

Ontario

1 23

513

14

y

13. Rooftop 1 MW**

14. Ground Mount 60MW

4

12UNITED STATES

5

Maryland

Under constructionIn operation

12

* Represents Northland’s 75% economic interest** Represents Northland’s ownership interest

Natural Gas

Biomass 

Solar

Wind

UNITED STATES

5

Long Term Focus Delivers ValueNorthland’s full life cycle focus

Captures development profits and provides stable cash flows over the life of facilities to service the dividend. Preferred by power off‐takers. Ensures quality projects are constructed to achieve performance and reliability. 

origination feasibilityconfirmed

signedPPA

financialclose

commercial operations date

kRisk

OPERATIONSIN DEVELOPMENT ADVANCEDDEVELOPMENT

UNDERCONSTRUCTION

6

Development andconstruction valueOperations cashflow to create value to service dividends

Initial riskGreatest exposureDiminishing risk

DEVELOPMENT CONSTRUCTION

Diversified Portfolio of Assets

2011 ‐ $151M 2015 ‐ $360‐400M

Saskatchewan2%

Quebec

Saskatchewan26%

Quebec

EBITDA – by Geography

Ontario85%

11%Other2% Ontario

65%

Quebec8%

Other1%

Wind 17% Solar

EBITDA – by Technology

Thermal87%

Wind 13%

Thermal

Solar17%

Hydro2%

7

Thermal64%

Diversified Portfolio of Assets

EBITDA – by Facility

2011 ‐ $151M 2015 ‐ $360‐400MSpy Hill2%

Cochrane*1% Kirkland Lake*

Germany1% Jardin Mt Louis

4%

Manitoulin2%

Grand Bend6%

2011  $151M 2015  $360‐400M

Th ld

2% 1%

Germany2% Cochrane*

1%

Kirkland Lake*3%

1%5% 4% 6%

SolarThorold36% Jardin

9%

Mt Louis2%

Spy Hill4%

1%17%

Kabinakagami2%

Iroquois FallsKi t

2%

Iroquois Falls10%

North Battleford21%

2%

q23%Kingston

24% Kingston11%Thorold

13%

8

Stability of Cash Flows

Iroquois Falls

Remaining PPA Term for Each Facility

Weighted average***Cochrane*Ki kl d*

Spy Hill

Thorold

Kingstong g

Iroquois Falls

KingstonKirkland*

G

Kirkland*

Cochrane*

Spy Hill

Thorold

GermanyJardin

Jardin

Germany

Mt LouisMont Louis

Ground Mounted Solar**

North Battleford**

Ground Mounted Solar**

Spy Hill

North Battleford**

Weighted average PPA life is 15.3 years***0 5 10 15 20 25 30

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*Managed facilities** Projects currently under construction*** The weighted average PPA life is weighted by respective MW capacity. The weighted average PPA life of 15.3 years includes projects currently under 

construction. For operating projects only, the weighted average PPA life is 13.6 years.

Strong Balance Sheet

S&P Debt RatingBBB– Positive Outlook 

(October 29 2012)

7%Preferred Shares

1%

(October 29, 2012)

ENTERPRISEVALUE

1%Convertible Debentures/Shares

$3.7BILLIONN b 2012

VALUE

November 201231%Non‐RecourseProject Debt60%

EquityEquityat recent $18.75 share price*; 

118 million shares**

10* Closing November 12, 2012** Represents shares recognized for accounting purposes which includes Convertible Class A, Class C Shares and Replacement Rights. 

Full In‐house Capabilities

Project OriginationProject 

Origination

Concept EngineeringConcept 

Engineering

Fuel and Electricity 

Management

Fuel and Electricity 

Management

100 Corporate & Project Financing

Corporate & Project Financing

Operations & Asset 

Management

Operations & Asset 

Management100%NORTHLANDIN HOUSEIN‐HOUSE

Permitting ManagementPermitting 

Management

CommunityCommunity

Construction ManagementConstruction Management

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Community RelationsCommunity Relations

Growth Pipeline

ConstructionConstruction

Ad d D lConstructionAdvanced DevelopmentD l t

Advanced Development

Development

ConstructionDevelopmentAdvanced DevelopmentDevelopment

12

Development12

Construction and Development Pipeline

20%d /

320MW ‐ In Construction280MW ‐ Advanced Development

Hydro /Pumped Storage

2,200MW ‐ Development Pipeline

20%WindWind

2 800Construction and

55%Natural Gas

2,800MW

5%Solar

Development Pipeline

Solar

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Projects Under Construction

O t k f

North Battleford, Saskatchewan, CanadaOn track for Q2 2013 completion

260MWgas‐fired combined cycle plant

20‐yearPPA

$677MExpected project cost

ConstructionConstructionKiewit

COD guaranteeQ4 2013

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Q4 2013

Projects Under Construction

E t d

Ground Mounted Solar, Ontario, CanadaExpected completion Q1‐Q3 2013 

60MWX6 10MW ground mo nt solar farmsmount solar farms

20‐yearPPA

$285MExpected project cost

Construction

Aecon – Miwel

15

Construction: On‐time, On‐budget

Northland’s track record is on‐time, on‐budget project delivery

Facility COD Location MW Budget (M)

Actual (M)

%Under

OnTime

I i F ll i l 1997 ON 110 $158 $151 4 18%Iroquois Falls cogeneration plant 1997 ON 110 $158 $151 4.18%

Iroquois Falls gas turbine replacement 2003 ON 80 $24 $23 2.13%

Kirkland Lake peaker facility 2004 ON 30 $30 $30 1.33%p y

Mont Miller wind farm 2005 QC 54 $98 $93 5.11%

Jardin d’Éole wind farm 2009 QC 128 $268 $268 0.22%

Thorold cogeneration facility 2010 ON 265 $520 $509 2.12%

Mont Louis wind farm 2011 QC 100 $181 $173 4.42%

Spy Hill peaker facility 2011 SK 86 $141 $137 2.83%Spy Hill peaker facility 2011 SK 86 $141 $137 2.83%

North Battleford and six ground mount solar projects currently under construction are within budget and on schedule

16

Disciplined Development

Power Sales Long‐term power contractsCreditworthy counterpartiesPredictable economicsPower off‐taker assumes fuel risks, where fuel cannot be otherwise hedged

Project Financing Non‐recourse single projectFully amortizingFully amortizingTerm matched to PPAInterest rate and FX hedging

C i Fi d iConstruction Fixed price guaranteePenalty provisions

Equipment and Supply Fixed price guaranteeComprehensive maintenance contracts

Insurance Comprehensive insurance program“Loss prevention” mindsets

17

Loss prevention  mindsets

Advanced Development Projects

Mclean’s Mountain60MW*  $190MGrand Bend

00 $38 COD 2013100MW * $385M 

COD 2014

280MW*under contract

Frampton24MW * $75M

COD 2015

Kabinakagami26MW* $180M

Ground mount solar70MW*  $325M

COD 2015

26MW   $180M

COD 2015COD  2013 ‐2014 

Total Project Costs ~$1.2 billion

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Total Project Costs  $1.2 billion

* Represents total installed capacity of projects in advanced development.

Ground‐Mounted Solar – Future Phases  Ontario, Canada

70MW: 7 projects x 10MW

Total project costs $325M 

Target in‐service dates 2013 ‐2014

Development ChecklistPower contract obtained Solar panel supply

Development Checklist

Construction contractor Land Secured I t ti tInterconnection assessmentReceipt of final permitsFinancing

19

g

McLean’s Mountain on Manitoulin Island

60MW wind farm

Total project cost ~$190M

Ontario, Canada

50/50 partnership with First Nations

i i d l 20 3Target in‐service date ‐ late 2013North Manitoulin 

Island

Development ChecklistPower contract obtained Turbine supplyConstruction contractorConstruction contractor Land Secured Wind assessmentInterconnection assessment  Receipt of final permitsFinancing

20

Financing

Grand BendOntario, Canada100MW wind project

Total project cost ~$385M

Target in‐service date ‐ late 2014

Poised to leverage a strong relationship with local First Nations to a successful partnership

D l t Ch kli tPower contract obtained Turbine supply

Development Checklist

pp yConstruction contractor Land Secured Wind assessmentInterconnection assessment Receipt of final permits

21

Receipt of final permitsFinancing

Development Pipeline

Combined Heat and PowerNatural Gas

Hydro – Run‐of‐RiverHydro – Pumped storage

Wind

Solar

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2,200 MW PIPELINE

Marmora Pumped Storage  

400MW Hydro pumped storage facility

Ontario, Canada

Stores off‐peak power for            on‐peak use

Supports grid stability

Proven technology

Ideal site

Unprecedented community support

23Artist’s rendering of completed project.

Financial Summary 

Recent Share Price (TSX: NPI) $18.75Shares Outstanding 128MFloat (Common + Class A) 115MInstitutional Ownership ~30%

$Annual Dividend $1.08Annual Dividend Yield 5.8%

Total Debt Net of Cash $968MTotal Debt, Net of Cash $968MConvertible Debentures (NPI.DB.A) $32MPreferred Shares (NPI.PR.A, NPI.PR.C) $263M

24

Preferred Shares (NPI.PR.A, NPI.PR.C) $263MMarket Capitalization (Common only) $1,602MEnterprise Value $3,739M

Financial Highlights and Forecast Growth

Forecasted EBITDA GrowthHighlights

Revenue of more than $350 million 

$300M

$400M Over $2.3 billion in total assetsSuccessfully raised $1.4 billion in financing between 2007‐2012

$100M

$200M

gGrowth initiatives have demonstrated results (September 30, 2012 YTD EBITDA increased by 

$M2011 2012 2013 2014 2015

25% vs. 2011)

Strong Stable Cash FlowsDiversified cash flows over five geographically separate regions and regulatory jurisdictions2011 EBITDA ($151M)

forecasted to more than $2.0 billion in available tax pools results in minimal cash taxes for foreseeable futureL id

forecasted to more than DOUBLE by 2014

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Long term power contracts reside with creditworthy counterparties

Industry‐leading Returns

Since its 1997 IPO, Northland Power has delivered a compounded annual return to investors of 13.1% doubling the TSX total return

600%Northland Power5 year 

annual return to investors of 13.1% doubling the TSX total return

Merger10 year l k

400%

500% TSX

Peer Group*

outlookg

outlook

300%

400%

NPI Annual Total Return

100%

200%Post Merger:  30.7%5 Year:  17.5%10 year:  14.3%

0%

100%

April '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

ySince Inception:  13.1%

26

April '97

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

* Peer Group includes TransAlta Corp., Capital Power Corp., Algonquin Power & Utilities Corp, Brookfield Renewable Energy Partners, Boralex Inc., Innergex Renewable Energy Inc. 

Liquidity Management

1. Consistent and predictable annual free cash flow

2. Line of Credit ‐ $250 million total

3. Continued access to capital markets3. Continued access to capital markets

4. Development expenses and discretionary capital expenditures

f l h f f bl f5. No meaningful cash taxes for foreseeable future

$962Mfrom construction projects

$1.1Bfrom contracted projects

$1Bfrom operating assets

AVAILABLE FUTURE Northland’s Tax Pools

27

$2.0B $1.1B

DRIP – A Win‐Win Opportunity

6. Dividend Reinvestment Plan (DRIP)For management – a key liquidity tool enablingFor management  a key liquidity tool, enabling Northland to raise growth capital at a low costFor shareholders a convenient means to purchaseFor shareholders – a convenient means to purchase additional shares at a discounted price without incurring brokerage commissionsincurring brokerage commissions Since inception, the DRIP has raised $25.2 million at a negligible transaction costs and has an overalla negligible transaction costs and has an overall participation rate of ~26%

Features of DRIP*Features of DRIP

Type of Plan Treasury or Market PurchasesIssue price from treasury Discounted to 5 day weighted average price

di %

28* See www.northlandpower.ca for more details.

Current discount 5%

Why Invest in Northland? 

Stability: The track record, commitment and ability d li h h ld l i $to deliver shareholder value. Commitment to $1.08 

annual dividend.

Strong and Visible Growth Opportunities: An exciting portfolio of attractive, strategic development projects.

Experienced Team: Strong, seasoned people atExperienced Team: Strong, seasoned people at every level.

Management’s ownership of more than 37% ensures alignment with shareholder interests

29

AppendixAppendix

30

Operating Projects

Project Loc. Size Ownership Technology PPAterm

Gas Term

Iroquois Falls ON 120 MW 100% Natural gas cogeneration 2021 2015‐2016

Kingston ON 110 MW 100% Natural gas combined cycle 2017 2017

Thorold ON 265 MW 100% Natural gas cogeneration 2030  2030

Spy Hill SK 86 MW 100% Natural gas peaking plant 2036 n/a

PandaBrandywine MD 230 MW 19% Natural gas combined cycle 2021 2021

Jardin d’Éole QC 128 MW 100% Wind 2029 n/a

K l f & GKavelstorf &Eckolstadt

Germ‐any 22 MW 100% Wind n/a* n/a

Mont Louis QC 100 MW 100% Wind 2031 n/a

l f f l /Solar Rooftop ON 2 MW 75% Rooftop solar 2031 n/a

Kirkland Lake ON 132 MW ** Biomass & natural gas combined cycleand peaking 2015 2015

C h ON 42 MW ** Bi & t l bi d l 2015 2016

31

Cochrane ON 42 MW ** Biomass & natural gas combined cycle  2015 2016

* German electricity production is purchased by local power utilities as required by German legislation at predetermined prices.** Northland manages these facilities under contract, however Northland has an effective 75% residual economic interest in these facilities.

Construction & Development Projects

ProjectConstruction Loc. Size Ownership Technology Expected 

CODPPATerm

Expected Capital CostConstruction COD Term Capital Cost

North Battleford SK 260 MW 100% Natural gas 

combined cycle Q2 2013 20 year $677M 

Ground Mount $Ground Mount Solar ‐ I ON 60 MW 100% Ground mount solar 2013 20 year $285M

Development

McLean’s Mtn ON 60 MW <100% Wind Late 2013 20 year $190M *

Ground MountSolar ‐ II ON 70 MW 100% Ground mount solar 2013‐

2014 20 year $325M

Kabinakagami ON 26 MW <100% Run‐of‐river hydro 2015 40 year $180M *

Grand Bend ON 100 MW <100% Wind 2014 20 year $385M

Frampton QC 24 MW <100% Wind 2015 20 year $75M *

32*   Represents full cost of the project (100%).  Northlands estimated ownership interest is (50% Manitoulin, Kabinakagami, and 67% Frampton)

Experienced ManagementManagement owns approximately 37% of Northland equity.

Management has over 200+ years of experience in 

the energy industry with average tenure of 16 years

John BracePresident and Chief Executive Officer

Joined 1988

of Northland equity. average tenure of 16 years. . 

James Temerty Chairman

Formed Northland 1987

Michael ShadboltVice President and 

Sam MantenutoChief Operating Officer and Chief 

Tony AndersonChief Investment Officer

Paul BradleyChief Financial Officer

d General CounselJoined 2011

Development OfficerJoined 1997

Joined 1989Joined 2011

33

Jim CipollaVice President, Gas and Electricity Marketing

Joined 1999

Dino GlioscaVice President, Engineering

Joined 1987

David G. DougallVice President, Operations

Joined 1990

Investor Relations ContactsInvestor Relations Contacts

Ad B tAdam BeaumontDirector of Finance

647.288.1929

investorrelations@northlandpower.ca

www.northlandpower.ca

Barb BoklaManager, Investor Relations 

647 288 1438647.288.1438

34