PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements%3A) This section presents Otter Tail Corporation's unaudited consolidated financial statements and accompanying notes for the periods ended June 30, 2021 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$2.67 billion** as of June 30, 2021, from **$2.58 billion** at year-end 2020, with shareholders' equity growing to **$915.1 million** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $304,901 | $234,832 | | **Total Noncurrent Assets** | $2,366,686 | $2,343,522 | | **Total Assets** | **$2,671,587** | **$2,578,354** | | **Total Current Liabilities** | $483,484 | $436,786 | | **Total Noncurrent Liabilities** | $648,440 | $646,170 | | **Total Shareholders' Equity** | $915,123 | $870,966 | | **Total Liabilities and Shareholders' Equity** | **$2,671,587** | **$2,578,354** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for the six months ended June 30, 2021, rose to **$72.4 million** from **$41.2 million** year-over-year, driven by increased operating revenues Consolidated Income Statement Highlights (in thousands, except per-share amounts) | Metric | Q2 2021 | Q2 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $285,608 | $192,756 | $547,318 | $427,503 | | **Operating Income** | $59,822 | $27,909 | $104,021 | $67,198 | | **Net Income** | $42,069 | $16,981 | $72,398 | $41,249 | | **Diluted EPS** | $1.01 | $0.42 | $1.73 | $1.02 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$68.6 million** for the six months ended June 30, 2021, with net cash used in investing activities decreasing to **$76.4 million** Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $68,574 | $73,901 | | **Net Cash Used in Investing Activities** | ($76,403) | ($121,005) | | **Net Cash Provided by Financing Activities** | $8,146 | $65,417 | | **Net Change in Cash and Cash Equivalents** | $317 | $18,313 | [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and segment performance, highlighting significant net income growth in the Plastics and Manufacturing segments - The company is a diverse business with three segments: Electric (regulated utility), Manufacturing (metal fabrication, plastic products), and Plastics (PVC pipe)[16](index=16&type=chunk) Net Income by Segment - Six Months Ended June 30 (in thousands) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Electric | $33,019 | $29,488 | | Manufacturing | $11,089 | $5,165 | | Plastics | $31,692 | $10,579 | | Corporate (Loss) | ($3,402) | ($3,983) | | **Total Net Income** | **$72,398** | **$41,249** | - On June 10, 2021, Otter Tail Power Company (OTP) entered an agreement to issue **$230 million** in senior unsecured notes in two tranches (**$140 million** in Nov 2021, **$90 million** in May 2022) to refinance existing debt[32](index=32&type=chunk) - The company is subject to a FERC ROE complaint, with a recorded refund liability of **$3.5 million** as of June 30, 2021, pending judicial review[41](index=41&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant financial performance improvement in Q2 and H1 2021, driven by strong results in the Manufacturing and Plastics segments, alongside the company's strong liquidity and debt covenant compliance - The impact of COVID-19 began to ease in Q1 2021, with the Manufacturing segment recovering and the Plastics segment seeing increased demand and margins, though uncertainty remains[70](index=70&type=chunk)[71](index=71&type=chunk) - Supply shortages of steel and resin have led to significantly increased prices, with higher resin prices expanding gross profit margins in the Plastics segment, a dynamic not expected to persist at current levels into 2022[72](index=72&type=chunk)[74](index=74&type=chunk) [Results of Operations – Quarter to Date](index=23&type=section&id=RESULTS%20OF%20OPERATIONS%20%E2%80%93%20QUARTER%20TO%20DATE) For Q2 2021, consolidated net income surged **147.7%** to **$42.1 million**, driven by a **48.2%** increase in operating revenues from the Plastics and Manufacturing segments Consolidated Results - Q2 2021 vs Q2 2020 (in thousands) | Metric | 2021 | 2020 | $ change | % change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $285,608 | $192,756 | $92,852 | 48.2% | | **Operating Income** | $59,822 | $27,909 | $31,913 | 114.3% | | **Net Income** | $42,069 | $16,981 | $25,088 | 147.7% | - Plastics segment operating revenues increased **95.5%** in Q2 2021 due to a **73.9%** increase in PVC pipe price per pound and a **12.4%** increase in sales volumes, leading to a **330.6%** increase in operating income[94](index=94&type=chunk) - Manufacturing segment operating revenues grew **83.4%** in Q2 2021, driven by a **52.4%** increase in sales volumes at BTD and the pass-through of **$12.0 million** in higher material costs[90](index=90&type=chunk) [Results of Operations – Year to Date](index=27&type=section&id=RESULTS%20OF%20OPERATIONS%20%E2%80%93%20YEAR%20TO%20DATE) For the first six months of 2021, consolidated net income increased **75.5%** to **$72.4 million**, primarily driven by the Plastics segment's operating income nearly tripling Consolidated Results - Six Months 2021 vs 2020 (in thousands) | Metric | 2021 | 2020 | $ change | % change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $547,318 | $427,503 | $119,815 | 28.0% | | **Operating Income** | $104,021 | $67,198 | $36,823 | 54.8% | | **Net Income** | $72,398 | $41,249 | $31,149 | 75.5% | - Plastics segment YTD operating revenues increased **65.5%** due to a **54.8%** increase in PVC pipe price per pound and a **6.9%** increase in sales volumes, resulting in a **196.2%** increase in operating income[115](index=115&type=chunk) - Manufacturing segment YTD operating revenues increased **39.9%**, driven by a **21.7%** increase in sales volumes and passing through **$16.4 million** in higher material costs, leading to a **108.0%** increase in operating income[111](index=111&type=chunk) [Regulatory Rate Matters](index=30&type=section&id=REGULATORY%20RATE%20MATTERS) The company is actively managing several regulatory filings, including a Minnesota rate case where OTP revised its requested annual revenue increase to **$8.2 million** - In its Minnesota rate case, OTP lowered its requested annual revenue increase from **$14.5 million** to **$8.2 million**, primarily due to lower depreciation expense and reduced postretirement benefit costs[119](index=119&type=chunk)[121](index=121&type=chunk) - An interim annual rate increase of **$6.9 million** was approved in Minnesota, effective January 1, 2021[120](index=120&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=LIQUIDITY) The company maintains a strong financial condition with **$199.4 million** available under its **$340 million** credit facilities and full compliance with all debt covenants Credit Facility Status as of June 30, 2021 (in thousands) | Facility | Line Limit | Amount Outstanding | Amount Available | | :--- | :--- | :--- | :--- | | OTC Credit Agreement | $170,000 | $59,245 | $110,755 | | OTP Credit Agreement | $170,000 | $68,712 | $88,617 | | **Total** | **$340,000** | **$127,957** | **$199,372** | - Net cash from operating activities decreased by **$5.3 million** for H1 2021 compared to H1 2020, as an increase in net income was offset by higher working capital requirements in the Manufacturing and Plastics segments[128](index=128&type=chunk) - As of June 30, 2021, the company was in compliance with all financial covenants, including its Debt to Total Capitalization ratio (**0.49** vs. **0.60** limit for OTC; **0.48** vs. **0.60** limit for OTP)[141](index=141&type=chunk)[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes in its market risk from the disclosures provided in its Annual Report on Form 10-K for the year ended December 31, 2020 - There have been no material changes in market risk since the year-end 2020 Form 10-K[145](index=145&type=chunk) [Controls and Procedures](index=34&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2021 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2021[146](index=146&type=chunk) - No material changes were made to internal control over financial reporting during the quarter ended June 30, 2021[147](index=147&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory proceedings in the ordinary course of business, with material matters described elsewhere in the report - The company is subject to various legal and regulatory proceedings in the ordinary course of business, with material matters described elsewhere in the report[148](index=148&type=chunk) [Risk Factors](index=35&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - There have been no material changes to the risk factors disclosed in the 2020 Annual Report on Form 10-K[149](index=149&type=chunk) [Exhibits](index=35&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the report, including a Note Purchase Agreement and certifications by the CEO and CFO - The report includes exhibits such as a Note Purchase Agreement dated June 10, 2021, and CEO/CFO certifications[151](index=151&type=chunk)

Financial Performance & Guidance - Q2 2021 operating revenues increased to $2856 million from $1928 million in Q2 2020[8] - Q2 2021 net income increased to $421 million from $169 million in Q2 2020[8] - Q2 2021 diluted EPS was $101 compared to $042 in Q2 2020[8] - The company raised its 2021 diluted earnings per share guidance range to $350-$365 from $247-$262[8] - The midpoint of the new EPS guidance range is $103 higher than the midpoint of the previous range[8] Segment Performance - Electric Segment earnings increased by $21 million due to increased retail revenues and the commercial operation of Merricourt & Astoria Station being fully covered in rates[9] - Manufacturing Segment earnings increased by $55 million due to increased sales across all end markets and increased scrap metal revenues[9] - Plastics Segment earnings increased by $174 million, driven by higher pipe prices and improved operating margins due to PVC resin supply constraints[10] Strategic Initiatives & Investments - The company's target earnings contributions are 70-75% from the Electric platform and 25-30% from the Manufacturing platform[6] - Capital spending of $653 million is planned from 2021 to 2025, with $138 million (21%) allocated to renewable resource additions and $138 million (21%) to regional transmission additions and replacements[43, 44] - The Astoria Station natural gas plant, a 245-MW simple-cycle unit, was completed at a cost of $1525 million and committed in the MISO market on April 30, 2021[25, 26, 27] Cleaner Energy Future - By 2023, the company's customers will receive approximately 35% of their energy from renewable resources[19] - Carbon emissions from owned generation resources are targeted to be 50% lower than 2005 levels by 2025 and 97% below 2005 levels by 2050[19] - Otter Tail Power Company achieved a 43% reduction in CO2 emissions from 2005 to 2020[17]

Otter Tail Corporation (NASDAQ:OTTR) Q2 2021 Earnings Conference Call August 3, 2021 11:00 AM ET Company Participants Loren Hanson - Investor Relations Chuck MacFarlane - President and CEO Kevin Moug - Senior Vice President and Chief Financial Officer Conference Call Participants Chris Ellinghaus - Siebert Williams Brian Russo - Sidoti Sophie Karp - KeyBanc Operator Good morning, and welcome to the Otter Tail Corporation's Q2 2021 Earnings Conference Call. Today's call is being recorded and we will hold a q ...

Otter Tail Corporation (NASDAQ:OTTR) Q1 2021 Earnings Conference Call May 4, 2021 11:00 AM ET Company Participants Loren Hanson - Investor Relations Chuck MacFarlane - President and CEO Kevin Moug - CFO Conference Call Participants Chris Ellinghaus - Siebert Williams Brian Russo - Sidoti Operator Good morning, and welcome to the Otter Tail Corporation's Q1 2021 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] I will now turn the call over to the company for their opening com ...

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 ended March 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 organizati ...

SIDOTI SPRING VIRTUAL INVESTOR CONFERENCE March 24-25, 2021 RGB COLORS FORWARD-LOOKING STATEMENT This presentation contains statements that may be considered forward-looking statements. The words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "possible," "potential," "should," "will," "would" and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. For ...

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, 2020 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 ...

Otter Tail Corporation (NASDAQ:OTTR) Q4 2020 Earnings Conference Call February 16, 2021 11:00 AM ET Company Participants Loren Hanson - Investor Relations Chuck MacFarlane - President & Chief Executive Officer Kevin Moug - Senior Vice President & Chief Financial Officer Conference Call Participants Sophie Karp - KeyBanc Brian Russo - Sidoti Tate Sullivan - Maxim Group Operator Good morning, and welcome to Otter Tail Corporation's 2020 Earnings Conference Call. Today's call is being recorded and we will hold ...