Otter Tail (OTTR) investor relations material

Strategic vision and business model

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

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

• Commitment to delivering above-average returns for shareholders, quality and value for customers, and an empowering environment for employees.

• Values include integrity, safety, people, performance, and community.

Electric platform performance and growth

• Electric utility serves about 134,000 customers across MN, ND, and SD, with a vertically integrated and regulated structure.

• Five-year capital spending plan of $1.9B, targeting a 10% rate base CAGR from 2025-2030.

• Long-term earnings mix target is 70% electric, with electric EPS growth expected to match rate base CAGR.

• Investments in renewables and storage, including $80M for Solway Solar, $450M for Abercrombie Solar, and $120M for Hoot Lake Battery, all expected to be eligible for tax credits.

• Focus on reliability and affordability during energy transition, targeting a 90% reduction in CO₂ emissions from electric generation by 2050.

Regulatory and customer environment

• Operates in constructive regulatory jurisdictions with favorable cost recovery mechanisms and timely investment recovery.

• Minnesota rate case filed in 2025 seeks a $44.8M net revenue increase and a 10.65% ROE.

• 2025 electric rates projected to be 19% below regional and 34% below national averages.

• Track record of strong project execution, safety, and reliability, with a 2025 SAIDI of 140 and incident rate below peer average.