Otter Tail (OTTR) Corporate presentation summary

Portfolio model

• Combines a foundational electric platform with a complementary plastics business, balancing predictable utility earnings with accretive returns and free cash flow.

• Manufacturing businesses are expected to generate free cash flow equal to earnings and fund ~25% of the current utility rate base growth plan.

• Current utility rate base growth plan totals $1.9B, with a 5-year CAGR of 10%.

Plastics platform and market

• Plastics operations have 400M lbs. of nameplate capacity, 250K sq. ft. of manufacturing and warehousing space, and 200+ distribution customers.

• Estimated North American rigid PVC pipe infrastructure-segment market share is ~10%; municipal sales represent ~90% of total sales.

• Municipal pipe sales are estimated to split 50/50 between new and replacement demand; long-term drivers include housing and lot development and aging infrastructure replacement.

• Market drivers include ~$421B of needed infrastructure investment over 20 years, a U.S. housing shortfall of ~4M homes, and data-center-related water infrastructure investment.

• Product applications span water transmission and distribution, wastewater, storm drainage, irrigation, reclaimed water, and residential and commercial plumbing.

Growth and earnings profile

• Growth strategy targets incremental capacity and efficiency improvements at existing facilities, expanding offerings in higher-demand areas such as large-diameter pipe.

• Vinyltech’s Phase 2 expansion added ~25M lbs. of Plastics segment nameplate capacity with limited capital investment, while improving flexibility and reliability.

• PVC pipe prices have trended down since late 2022; the earnings profile shows $24M for the 2018–2020 average, $170M for 2021–2025, $128M for 2026F adjusted net income, and $45M–$50M for 2028F.

• Revised 2026 Plastics earnings guidance midpoint is $51M; the $77M after-tax legal settlement adjustment results in a $128M adjusted midpoint.