Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 or ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 0-53713 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchang ...

Q2 2022 EARNINGS CONFERENCE CALL August 2, 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 ...

Financial Data and Key Metrics Changes - Otter Tail Corporation achieved diluted earnings per share of $2.05, an increase of 103% over Q2 2021 [8] - Consolidated revenues increased by 40% and net earnings rose by 104% compared to the second quarter of 2021 [25] - The electric segment's net earnings increased by $3.4 million or approximately 22% over Q2 2021 [26] Business Line Data and Key Metrics Changes - The plastics segment's quarterly earnings increased by $41.4 million over Q2 2021, primarily due to an 86% increase in the price per pound of PVC pipe sold [10][32] - The manufacturing segment's net earnings increased by $1.85 million, driven by an 8% increase in sales volumes at BTD [28] - The electric segment's earnings growth was driven by increased commercial and industrial sales and the finalization of the Minnesota Rate Case interim rate refunds [9] Market Data and Key Metrics Changes - Sales prices for PVC pipe continued to increase at a rate higher than raw material price increases, driven by strong demand and limited inventories [23][33] - Supply constraints impacted the availability of PVC resin additives, leading to a 6% decrease in sales volumes compared to the same quarter a year ago [34] Company Strategy and Development Direction - Otter Tail Power is targeting a 50% reduction in carbon emissions from its generation resources by 2025 and 97% by 2050, with over 50% of energy generation expected to be renewable by 2025 [13] - The company plans to invest nearly $1 billion in capital expenditures from 2022 to 2026, with a projected annual rate base growth of approximately 6% [21] - The strategic planning process has led to an expectation of normalized earnings for the plastics segment to be in the range of $36 million to $41 million beginning in 2024 [43] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer demand and economic conditions, noting potential softness in consumer balance sheets as the economy transitions [58] - The company remains confident in its ability to grow earnings per share at a compound annual growth rate of 5% to 7% starting in 2024 [44][109] - Management highlighted the importance of monitoring economic indicators such as housing starts and consumer confidence to remain well-positioned for future changes [41] Other Important Information - The company has no immediate equity needs to support its $1 billion capital expenditure plan due to strong earnings and cash flows from the plastics segment [75] - The purchase of the Ashtabula III wind farm is anticipated to close in January 2023, subject to regulatory approvals [15] Q&A Session Summary Question: Can you repeat the normalized level of net income for the manufacturing businesses? - Management clarified that normalized earnings for the plastics segment are now expected to be in the range of $36 million to $41 million beginning in 2024 [50] Question: What are your thoughts on the economy for manufacturing and consumer demand? - Management noted that demand remains strong, particularly in the recreational vehicle and lawn and garden sectors, but expressed caution regarding potential economic downturns [58] Question: Can you quantify the cash flow windfall from the plastics segment? - Management indicated that the strong earnings from the plastics segment have further strengthened cash flows and liquidity, allowing for continued investment without equity needs [75] Question: What is the timeline for the new transmission spend? - Management anticipates construction completion for the new transmission lines between 2028 and 2030 [68] Question: Are there plans to adjust the business mix back to long-term targets? - Management conducted a review and determined that the current earnings mix aligns with their long-term strategy, despite the challenges in forecasting plastics earnings [101]

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 ...