Otter Tail (OTTR) Investor presentation summary

Strategic model and long-term targets

• Diversification pairs an electric utility platform with manufacturing businesses; manufacturing cash flow helps fund utility rate base growth. The model targets 10–12% TSR over long-term cycles.

• Long-term targets include 7–9% EPS growth from a 2028 base year, ~3% dividend yield, 6–8% dividend growth, and a 50–60% payout ratio.

• Target earnings mix is 70% Electric and 30% Manufacturing by 2028, once Plastics earnings normalize; 2028 Plastics earnings assumption is $45M–$50M.

• Strategic diversification and capital efficiency produced 12.3% ROE from 1994–2025, versus 9.8% for the broader utility sector.

Electric platform

• Five-year capital plan targets $1.9B of spending for 2026–2030 and 10% rate base CAGR; long-term Electric EPS growth is expected to approximate rate base CAGR.

• Planned projects include $80M Solway Solar, $450M Abercrombie Solar and $120M Hoot Lake Battery investments, with estimated completion in 2027–2028.

• 2025 electric rates were 19% below the regional average and 34% below the national average; estimated customer bill CAGR from rate base growth is 3–4%.

• Management expects to recover ~90% of five-year capital expenditures through existing riders, rates, MISO tariffs and direct billings to non-utility customers.

• November 2026 Minnesota rate-case request is a $38.7M net revenue increase, or 15.3%, with 10.65% requested ROE; final implementation is expected in H2 2027.

Manufacturing platform

• Manufacturing sales increased from $181.9M in 2005 to $737.3M in 2025, a 7.3% CAGR; net income rose from $18.6M to $128M, a 10.3% CAGR.

• Manufacturing businesses serve diversified end markets with custom metal fabrication, thermoformed plastic products and PVC pipe; priorities include organic growth, efficiency and accretive returns.

• Growth drivers include manufacturing reshoring, OEM outsourcing, power demand, housing needs, infrastructure replacement, and water availability and transport.

• Plastics earnings are normalizing after PVC pipe prices rose sharply beginning in 2021 and declined from late 2022; the long-term 2028 earnings assumption is $45M–$50M.