Q1 2022 EARNINGS CONFERENCE CALL May 3, 2022 FORWARD-LOOKING STATEMENT Except for historical information contained here, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "could," "estimate," "expect," "goal," "intend," "may," "outlook," "plan," "possible," "potential," "projected," "should," "will," "would" and similar words and expressions are intended to identi ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I) [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements%3A) Otter Tail Corporation's Q1 2022 net income surged to **$72.0 million**, with diluted EPS at **$1.72**, primarily due to strong Plastics segment performance Consolidated Financial Highlights (Q1 2022 vs Q1 2021) | Financial Metric (in thousands, except per-share data) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Income Statement** | | | | Total Operating Revenues | $374,904 | $261,710 | | Operating Income | $98,299 | $44,199 | | Net Income | $72,003 | $30,329 | | Diluted Earnings Per Share | $1.72 | $0.73 | | **Balance Sheet (as of period end)** | | | | Total Assets | $2,791,741 | $2,754,830 (as of Dec 31, 2021) | | Total Shareholders' Equity | $1,047,138 | $990,777 (as of Dec 31, 2021) | | **Cash Flow Statement** | | | | Net Cash Provided by Operating Activities | $45,416 | $15,270 | [Condensed Notes to Consolidated Financial Statements](index=9&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) Notes detail segment performance, especially Plastics' strong growth, regulatory contingencies, and debt compliance Segment Net Income (in thousands) | Segment | Q1 2022 Net Income | Q1 2021 Net Income | | :--- | :--- | :--- | | Electric | $19,233 | $17,587 | | Manufacturing | $4,084 | $5,385 | | Plastics | $50,846 | $9,147 | | Corporate (Loss) | ($2,160) | ($1,790) | | **Total** | **$72,003** | **$30,329** | - The company is subject to a FERC proceeding regarding transmission Return on Equity (ROE), with a recorded refund liability of **$2.4 million** as of March 31, 2022[37](index=37&type=chunk) - The Regional Haze Rule (RHR) could require significant emission control investments or lead to the early retirement of the Coyote Station coal-fired plant, with potential material financial effects[38](index=38&type=chunk)[41](index=41&type=chunk) - A discretionary contribution of **$20.0 million** was made to the pension plan in February 2022[35](index=35&type=chunk) - As of March 31, 2022, both OTC and its subsidiary OTP were in compliance with all financial covenants required by their debt agreements[32](index=32&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2022 performance to the Plastics segment, maintaining liquidity and advancing renewable energy investments [Consolidated Results](index=23&type=section&id=MD%26A_Consolidated_Results) Consolidated operating revenues increased **43.3%** to **$374.9 million**, with operating income up **122.4%**, driven by higher segment prices Consolidated Results Summary (in thousands) | Metric | Q1 2022 | Q1 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $374,904 | $261,710 | $113,194 | 43.3% | | Operating Income | $98,299 | $44,199 | $54,100 | 122.4% | | Net Income | $72,003 | $30,329 | $41,674 | 137.4% | - The increase in the effective tax rate from **14.8%** to **19.7%** was primarily driven by higher income before taxes, which diluted the impact of tax credits and other permanent differences[79](index=79&type=chunk) [Segment Results](index=23&type=section&id=MD%26A_Segment_Results) The Plastics segment's operating income surged **447.1%** due to price increases, while Electric grew **4.7%**, and Manufacturing declined **21.3%** Electric Segment Operating Income (in thousands) | Metric | Q1 2022 | Q1 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $130,416 | $123,699 | $6,717 | 5.4% | | Operating Income | $27,942 | $26,676 | $1,266 | 4.7% | Manufacturing Segment Operating Income (in thousands) | Metric | Q1 2022 | Q1 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $104,957 | $75,825 | $29,132 | 38.4% | | Operating Income | $5,935 | $7,545 | ($1,610) | (21.3)% | Plastics Segment Operating Income (in thousands) | Metric | Q1 2022 | Q1 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $139,531 | $62,186 | $77,345 | 124.4% | | Operating Income | $68,862 | $12,586 | $56,276 | 447.1% | [Regulatory Rate Matters](index=26&type=section&id=MD%26A_Regulatory_Matters) Regulatory proceedings include the Minnesota Rate Case establishing a **9.48%** ROE, and the IRP proposing renewable energy and Coyote Station withdrawal - The MPUC issued its order on the Minnesota Rate Case, authorizing a **9.48%** return on equity on a **52.5%** equity ratio and approving a revenue decoupling mechanism[101](index=101&type=chunk) - The 2022 Integrated Resource Plan (IRP) outlines a strategy to add significant renewable generation (**150 MW** solar and **100 MW** wind) and to begin the process of withdrawing from the company's **35%** ownership in the coal-fired Coyote Station by year-end 2028[104](index=104&type=chunk)[105](index=105&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company maintains strong liquidity with operating cash flow increasing to **$45.4 million** and **$234.4 million** available from credit facilities Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $45,416 | $15,270 | | Net Cash Used in Investing Activities | ($31,449) | ($49,020) | | Net Cash (Used in) Provided by Financing Activities | ($14,133) | $33,799 | - As of March 31, 2022, the company had a total of **$340 million** in credit lines, with **$97.8 million** outstanding, leaving **$234.4 million** available after accounting for letters of credit[108](index=108&type=chunk) - Dividends of **$0.4125** per share, totaling **$17.2 million**, were paid in the first three months of 2022[116](index=116&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk have occurred since the disclosures in the 2021 Annual Report on Form 10-K - There have been no material changes in market risk since the last Annual Report on Form 10-K[127](index=127&type=chunk) [Controls and Procedures](index=31&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2022, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[128](index=128&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[129](index=129&type=chunk) [PART II - OTHER INFORMATION](index=32&type=section&id=PART%20II) [Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory proceedings, recording liabilities for probable losses as detailed in Note 9 - The company is subject to various legal and regulatory proceedings in the ordinary course of business, with liabilities recorded when a loss is probable and estimable. Material proceedings are detailed in Note 9[130](index=130&type=chunk) [Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes have been made to the risk factors disclosed in the 2021 Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the 2021 Annual Report on Form 10-K[131](index=131&type=chunk) [Exhibits](index=32&type=section&id=ITEM%206.%20Exhibits) Exhibits filed with the Form 10-Q include CEO and CFO certifications and Inline XBRL financial data files - Exhibits filed with the report include CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and Inline XBRL data files[133](index=133&type=chunk)

Financial Data and Key Metrics Changes - The company achieved earnings per share of $1.72, a 136% increase compared to Q1 2021 [7] - Consolidated revenues increased by 43% and net earnings rose by 137%, primarily driven by the plastics segment [25] - The electric segment's net earnings increased by $1.6 million, or 9.4%, over Q1 2021 [31] Business Line Data and Key Metrics Changes - The electric segment's earnings were positively impacted by favorable weather and increased commercial and industrial sales [8] - The manufacturing segment's earnings decreased by $1.3 million due to lower productivity and increased costs [8] - The plastics segment's net earnings increased by $41.7 million compared to Q1 2021, driven by improved sales prices of PVC pipe [36] Market Data and Key Metrics Changes - PVC resin production and supply improved slightly, but prices are expected to increase through July due to rising natural gas prices and a strong export market [10] - Demand for PVC pipe remains strong, with limited inventories contributing to rising sales prices [36][42] Company Strategy and Development Direction - The company is focused on capital investments in generation, transmission, distribution, and technology projects to grow Otter Tail Power [11] - The Hoot Lake solar project is on schedule for completion in 2023, with construction expected to begin in May 2022 [11] - The company aims to reduce carbon emissions from its generation resources by approximately 50% from 2005 levels by 2025 [14] Management's Comments on Operating Environment and Future Outlook - Management noted inflationary pressures on freight and steel costs, but they are monitoring these issues closely [12] - The company expects market conditions to continue impacting profitability in the second half of 2022, with resin prices anticipated to decline after July [43] - The corporate costs are expected to increase in 2022 due to higher incentive compensation costs [44] Other Important Information - The company is exploring additional capacity expansions at its facilities to support organic growth opportunities [29] - The five-year financing plan includes the issuance of long-term debt to support electric segment growth, with no need for external equity [30] Q&A Session Summary Question: Can you talk about the PVC expansion you have in the works? - The first phase involves buying additional land and upgrading existing infrastructure, while the second phase will focus on production line expansion [50] Question: What are your thoughts on the equity bill from PVC profitability? - The company plans to use the equity for organic growth in both utility and manufacturing businesses [51] Question: What is your outlook for the second half of the year for plastic? - Management sees potential pressure from rising interest rates affecting housing starts, but supply chain issues are expected to improve [52][53] Question: Can you discuss the landscape of the PVC business? - The company is in the upper half of competitors in terms of capacity and is exploring organic expansion opportunities [66][72] Question: What is causing the extraordinary expansion of spreads in PVC pricing? - The increase in sales prices is driven by strong demand and supply chain challenges, particularly shortages of additives [78][80] Question: What is the expected normalized full-year earnings for plastics? - Management is reviewing long-term views on resin prices and their impact on normalized earnings for plastics [92][94]

Sidoti Spring 2022 Virtual Conference March 23-24, 2022 FORWARD-LOOKING STATEMENT Except for historical information contained here, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "could," "estimate," "expect," "goal," "intend," "may," "outlook," "plan," "possible," "potential," "projected," "should," "will," "would" and similar words and expressions are intende ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021 or ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 0-53713 OTTER TAIL CORPORATION (Exact name of registrant as specified in its charter) Minnesota (State or other jurisdiction of incorporation or organiza ...

2021 EARNINGS CONFERENCE CALL February 15, 2022 FORWARD-LOOKING STATEMENT Except for historical information contained here, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "could," "estimate," "expect," "goal," "intend," "may," "outlook," "plan," "possible," "potential," "projected," "should," "will," "would" and similar words and expressions are intended to ide ...

Otter Tail Corporation (NASDAQ:OTTR) Q4 2021 Earnings Conference Call February 15, 2022 10:00 AM ET Company Participants Tyler Akerman - Investor Relations Chuck MacFarlane - President and Chief Executive Officer Kevin Moug - Senior Vice President and Chief Financial Officer Conference Call Participants Brian Russo - Sidoti Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the au ...

SIDOTI VIRTUAL INVESTOR CONFERENCE January 19-20, 2022 RGB COLORS FORWARD-LOOKING STATEMENT Except for historical information contained here, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "possible," "potential," "should," "will," "would" and similar words and expressions are intended to identi ...

Part I [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements%3A) Presents Otter Tail Corporation's unaudited consolidated financial statements for Q3 2021, highlighting significant revenue and net income growth from Manufacturing and Plastics [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to **$2.71 billion** by Sep 30, 2021, driven by receivables and inventories, with shareholders' equity reaching **$952.5 million** Consolidated Balance Sheet Highlights (unaudited, in thousands) | | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $334,967 | $234,832 | | **Total Assets** | **$2,713,148** | **$2,578,354** | | **Total Current Liabilities** | $510,087 | $436,786 | | **Total Liabilities** | $1,759,666 | $1,707,388 | | **Total Shareholders' Equity** | **$952,482** | **$870,966** | | **Total Liabilities and Shareholders' Equity** | **$2,713,148** | **$2,578,354** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for the nine months ended Sep 30, 2021, surged **62.1%** to **$125.2 million**, with diluted EPS reaching **$2.99**, fueled by increased operating revenues Consolidated Income Statement Highlights (unaudited, in thousands, except per-share amounts) | | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Total Operating Revenues** | $863,612 | $663,258 | | **Operating Income** | $178,549 | $119,927 | | **Net Income** | **$125,152** | **$77,183** | | **Diluted Earnings Per Share** | **$2.99** | **$1.89** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$154.8 million** for the nine months ended Sep 30, 2021, with investing cash outflow decreasing significantly to **$117.1 million** Consolidated Cash Flow Summary (unaudited, in thousands) | | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $154,752 | $141,276 | | **Net Cash Used in Investing Activities** | ($117,084) | ($222,385) | | **Net Cash (Used in) Provided by Financing Activities** | ($37,559) | $104,814 | | **Net Change in Cash and Cash Equivalents** | $109 | $23,705 | [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment performance, regulatory matters, and debt agreements, with Plastics being the largest net income contributor - The company is organized into three business segments: Electric, Manufacturing, and Plastics[15](index=15&type=chunk)[19](index=19&type=chunk) Net Income by Segment (Nine Months Ended Sep 30, in thousands) | | 2021 | 2020 | | :--- | :--- | :--- | | Electric | $55,547 | $54,225 | | Manufacturing | $15,290 | $8,476 | | Plastics | $60,102 | $20,922 | | Corporate (Loss) | ($5,787) | ($6,440) | | **Total Net Income** | **$125,152** | **$77,183** | - In June 2021, OTP entered into a Note Purchase Agreement to issue **$230 million** in senior unsecured notes in two tranches (November 2021 and May 2022) to refinance existing debt[33](index=33&type=chunk) [Item 2. Management's Discussion and Analysis (MD&A)](index=22&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, emphasizing strong performance in Plastics and Manufacturing segments, stable Electric segment results, and outlining capital expenditure plans and liquidity - The company continues to monitor the impact of COVID-19, noting that while negative effects have eased in 2021, uncertainty remains, particularly regarding potential vaccine mandates for employees[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - Supply shortages and price increases for key raw materials significantly impacted 2021 results. Steel shortages led to higher product prices in the Manufacturing segment, while resin shortages drove up PVC pipe prices and expanded profit margins in the Plastics segment[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - The company filed its 2022 Integrated Resource Plan (IRP), which includes adding **150 MW** of solar generation by **2025** and withdrawing from its ownership of the Coyote Station coal plant by **2028**[135](index=135&type=chunk) [Results of Operations – Quarter to Date (Q3 2021)](index=24&type=section&id=RESULTS%20OF%20OPERATIONS%20%E2%80%93%20QUARTER%20TO%20DATE) Consolidated net income for Q3 2021 rose **46.8%** to **$52.8 million**, primarily driven by exceptional Plastics segment performance, despite a decline in Electric segment operating income Consolidated Results (Q3 2021 vs Q3 2020, in thousands) | | Q3 2021 | Q3 2020 | $ change | % change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $316,294 | $235,755 | $80,539 | 34.2% | | Operating Income | $74,528 | $52,729 | $21,799 | 41.3% | | **Net Income** | **$52,754** | **$35,934** | **$16,820** | **46.8%** | - The Plastics segment's operating revenues increased **77.2%** to **$107.5 million**, driven by a **103.6%** increase in the price per pound of PVC pipe sold, despite a **13.0%** decrease in sales volume[100](index=100&type=chunk) - The Electric segment's operating income decreased by **$5.0 million** (**13.4%**) due to higher production fuel costs and increased operating & maintenance expenses, including costs for new facilities and a planned outage[88](index=88&type=chunk)[95](index=95&type=chunk) [Results of Operations – Year to Date (Nine Months Ended Sep 30, 2021)](index=29&type=section&id=RESULTS%20OF%20OPERATIONS%20%E2%80%93%20YEAR%20TO%20DATE) Consolidated net income for the first nine months of 2021 increased **62.1%** to **$125.2 million**, primarily driven by the Plastics segment's **184.7%** operating income surge Consolidated Results (YTD 2021 vs YTD 2020, in thousands) | | YTD 2021 | YTD 2020 | $ change | % change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $863,612 | $663,258 | $200,354 | 30.2% | | Operating Income | $178,549 | $119,927 | $58,622 | 48.9% | | **Net Income** | **$125,152** | **$77,183** | **$47,969** | **62.1%** | - Plastics segment operating income increased by **$53.0 million** (**184.7%**) due to a **71.1%** increase in the price per pound of PVC pipe sold, which outpaced a **60.3%** increase in resin and input costs[123](index=123&type=chunk)[124](index=124&type=chunk) - Manufacturing segment operating income increased by **$9.2 million** (**75.3%**), driven by a **15.6%** increase in sales volumes and higher material cost pass-throughs[120](index=120&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity with **$229.0 million** available, increased cash from operations, and a **$1.13 billion** capital expenditure plan for 2022-2026 - As of September 30, 2021, the company had total available liquidity of **$229.0 million** from its **$340 million** in credit facilities[138](index=138&type=chunk) Projected Capital Expenditures (2022-2026, in millions) | | Electric Segment | Manufacturing & Plastics | Total | | :--- | :--- | :--- | :--- | | **Total 2022 - 2026** | **$978** | **$153** | **$1,131** | - On September 30, 2021, the company amended and restated its credit agreements, extending the maturity date for both the OTC and OTP facilities to **September 30, 2026**[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk have occurred since the disclosures in the Annual Report on Form 10-K for the year ended December 31, 2020 - There have been no material changes in market risk since the last Annual Report on Form 10-K for the year ended December 31, 2020[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting identified - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2021[159](index=159&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[160](index=160&type=chunk) Part II [Item 1. Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory proceedings, with material matters described in Note 9 and the MD&A section - The company is subject to various legal and regulatory proceedings. Material matters are discussed in Note 9 and the MD&A[161](index=161&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors have occurred since those disclosed in the company's 2020 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the company's 2020 Annual Report on Form 10-K[162](index=162&type=chunk) [Item 6. Exhibits](index=33&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including amended credit agreements and CEO/CFO certifications - Exhibits filed include amended and restated credit agreements for both Otter Tail Corporation and Otter Tail Power Company, dated September 30, 2021[164](index=164&type=chunk) - Standard CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906 are included as exhibits[164](index=164&type=chunk)

Otter Tail Corporation (NASDAQ:OTTR) Q3 2021 Earnings Conference Call November 2, 2021 11:00 AM ET Company Participants Tyler Akerman - Manager of Investor Relations Chuck MacFarlane - President & Chief Executive Officer Kevin Moug - Senior Vice President & Chief Financial Officer Conference Call Participants Brian Russo - Sidoti Sophie Karp - KeyBanc Operator Good morning, and welcome to the Otter Tail Corporation's Q3 2021 Earnings Conference Call. Today's call is being recorded and we will hold a questi ...