Alterra presentation - mar

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2. Forward-Looking InformationThis Presentation contains certain forward-looking information within the meaning of Canadian securities laws, which may include, but isnot limited to, statements with respect to future events or future performance, managements expectations regarding Alterras productioncapacity, results of operations, cash flows, revenues and requirements for capital, future demand for and prices of electricity, and Alterrasbusiness prospects and opportunities.These statements reflect the current views of Alterra with respect to future events and are necessarily based upon a number ofassumptions and estimates that, while considered reasonable by Alterra, are inherently subject to significant business, economic, politicaland social uncertainties and contingencies. Many factors, both known and unknown, could cause Alterras actual results, performance orachievements to be materially different from the results, performance or achievements that are or may be expressed or implied by suchforward-looking statements contained in this presentation, and Alterra has made assumptions based on or related to many of thesefactors. Such factors include, without limitation: fluctuations in currency markets (particularly with respect to the Icelandic krona, the U.S.dollar and Canadian dollar); risks related to the technological and operational nature of Alterras business; changes in national or regionalgovernments, legislation, regulation, permitting or taxation; political or economic developments in Canada, the United States, Iceland orother countries where Alterra may carry on business; risks and hazards associated with the business of renewable energy generation;risks relating to the creditworthiness and financial condition of suppliers and other parties which Alterra will deal with; inadequateinsurance or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with and claims by localcommunities and First Nations; availability and costs of equipment and labour; litigation; the success and timely completion of plannedexpansion and development programs; the growth rate in net electricity consumption; support and demand for renewable energy;government initiatives to support the development of renewable energy generation; the reliability of technical data and capital expenditureestimates; and availability of capital to fund development and expansion programs. Forward-looking information and statements are alsobased upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur.Although Alterra has attempted to identify important factors that could cause actual results to differ materially, there may be other factorsthat cause results not to be as anticipated, estimated, described or intended. There can be no assurance that the forward-lookinginformation will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information.Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicablesecurities laws, Alterra does not assume any obligation to update or revise such forward-looking information to reflect new events orcircumstances.2 3. Alterra Power Strategy and AssetsClean energy: permanent, stable cash flow with zero fuel cost/exposure Core infrastructure business once built, permanent valueOur mission: to be a leading global renewable energy companyOur assets today:Geothermal HydroWind570 MW of clean power operated300 MW net ownership 175 MW in Iceland 235 MW144 MW(67% Alterra) + Two large run ofBCs largest wind 16 MW in Nevada river plants in BCfarm (100% Alterra) (40% Alterra) (51% Alterra) Near-Term Pipeline: 156 MW wind, 124 MW hydro and 80 MW geothermal powerplants ready or near-ready for construction by end of 2012 (200 MW net to Alterra) Long-Term Pipeline: 300 MW+ additional Alterra generation on 2016 horizon Assets: Over $900 MM net interest in total assets Management Team: Deep experience in wind, hydro, geothermal3 4. Recent Growth and Performance Alterras recent growth.. Last Quarters Performance: (net interest)(net interest)CAPACITY PRODUCTION350(end of year) 1,800 $36.1 million Revenue3001,600250 1,400 1,200 $20.5 million EBITDA200 GWh MW 1,000150800 600 441 GWh electricity100 50 400 produced 20000- 105% of forecast2009 2010 2011e 2012e2009 20102011e2012eREVENUEEBITDA $120$70 $60 $100 $50Millions USDMillions USD$80 $40$60$30 $20$40 $10$20 $- $-$(10)2009 2010 2011e 2012e2009 2010 2011e2012e 4 5. Balanced Portfolio - Global Exploration and Operations ICELAND: 2 geothermal power plants with 175 MW capacity (67% Alterra) Additional 130 MW of defined expansion plans 80 MW of expansions underway WESTERN CANADA: Toba-Montrose hydro plants with 235 MW capacity (40% Alterra) Dokie wind farm with 144 MW capacity (51% Alterra) 124 MW Upper Toba expansion and 156 MW Dokie 2 expansion WESTERN USA: 16 MW geothermal power plant with expansion potential Excellent government support for geothermal projects 6 other early stage properties CHILE Very large (320 MW) inferred resource discovered at low cost Emerging renewable power market with world-class potential Strong government support for geothermal projects Active exploration concessions covering in excess of 158,000 ha FURTHER GROWTH ASSETS IN ONTARIO, BC, ITALY AND PERU5 6. Assets and Pipeline CapacityProjectGross AXY Share TechnologyOperating (2011)Soda Lake 16 MW16 MWGeothermalSvartsengi75 MW50 MWGeothermalReykjanes 1 & 2100 MW67 MWGeothermalEast Toba & 235 MW94 MWHydroMontroseDokie 1144 MW73 MWWindTotal Capacity570 MW300 MWAnnual Net Generation1,425 GWhOperating Additions (2016)Upper Toba 124 MW 62 MWHydroOntario Solar 50 MW5 MWSolarReykjanes 3 & 4 80 MW 54 MWGeothermalDokie 2156 MW 80 MWWindMcCoy 15 MW 15 MWGeothermalMariposa50 MW 25 MWGeothermalEldvrp 50 MW 34 MWGeothermalOther (e.g. Chile, Iceland)200 MW200 MWGeothermalPipeline Total 725 MW475 MWTotal Capacity1,295 MW 775 MW6 7. BC OpportunityBritish Columbias demand for power is expected togrow significantly in the next 3-5 years LNG plants in Kitimat Mining growth General population growthClean renewable power sourced from IPPs isexpected to be a critical source of new supplyDokie 1 `Alterra is uniquely positioned to benefit from thisnew demand Built and operate largest wind farm and run-of-river plants in British Columbia History of delivering on-time and on-budget Established reputation with First Nations Large portfolio of operations, expansions and development projects Largest IPP in the province7 8. Outstanding Developer Track RecordSuccessful developer track record across renewabletechnologies Proven ability to develop and deliver large new assets at greenfield locations Development teams from all these projects remain substantially intactRecent project successesWindDokie 144 MW2011 CODHydro Toba Montrose 236 MW2010 CODGeothermalReykjanes 100 MW2006 CODNear term organic growth - all near existing operationsWindDokie 2 156 MW COD 2014EHydro Upper Toba124 MW COD 2015EGeothermalReykjanes 3/480 MW COD 2013-14E8 9. Leading Growth Profile Alterra has one of Canadas largest clean energy development pipelines 9005,000 8004,500 7004,000 1533,500 600 1563,000Net MW 500GWh153 2,500 400 1532,000 30073156 73 731,500 94 94 460 20094 94 941,000 100191 212147167 187500 1330 0 20102011201220132014 2015 2016 GEOTHERMAL HYDRO WINDSOLARExisting Generation Capacity Additions Soda LakeDokie 1 ABW Solar Reykjanes 3 Reykjanes 4 EldvrpPipeline HS OrkaDokie 2 Mariposa Toba MontroseUpper Toba9 10. Analyst Coverage and Capital Structure C APITAL S TRUCTURE : PRO- FORMA NET INTEREST MARKET CAPITALIZATION (29 FEB 2012)C$ 293 MM CASH (30 SEP 2011)US$ 41 MM TOTAL ASSETS (30 SEP 2011) US$ 907 MM LONG TERM DEBT (30 SEP 2011) US$ 513 MM FIRM CONTACTEMAILCanaccord Genuity Jared Alexanderjalexander@canaccordgenuity.comCormark SecuritiesMacMurray Whalemwhale@cormark.comJacob SecuritiesJohn McIlveenjmcilveen@jacobsecurities.comMackie Research Capital Matthew Gowing matthew.gowing@researchcapital.comMirabaud Securities Gus Hochschild Bank Financial Jeremy Mersereau jeremy.mersereau@nbfinancial.comPritchard Capital PartnersVeny Aleksandrov valeksandrov@pritchardcapital.comRaymond James SecuritiesSteven Partners Mike Plaster mplaster@salmanpartners.comINDEX COVERAGE S&P/TSX Clean Technology Index RENIXX Renewable Energy Industrial Index10 11. Recent news Succession of positive events: Strong 1Q 2012 (Jul-Sep) results Toba Montrose and Dokie final completions Dokie term conversion Permit for Reykjanes expansion Icelandic Pension Fund sale and option exercise New resource concessions in promising new markets Italy and Peru Toba Montrose and Dokie PPA bumps Homalco First Nation agreement for Bute Inlet project11 12. Looking ahead Looking ahead to 2012: Prepare near-term projects for construction: Dokie 2: installation of new meteorology towers Upper Toba: design optimization Reykjanes: refresh capital / financing plans Prepare for next-phase drilling with partner at Chile Continue long-term project development (BC, Peru, Italy) Opportunistic acquisitions: wind, geothermal and hydro Continue work in British Columbia for positive regulatory/political environment Advance partnership activity: Potential new projects with current partners New geothermal development partners Develop additional financial partners Stay the course / continue the mission12 13. Value Proposition Summary / Next MilestonesVALUE PROPOSITION Core Producing Assets - long term, stable cash flow Diversified Assets - by geograp