ALLETE: JP Morgan Energy, Power and Renewables Conference – June 2022







JP Morgan Energy, Power & Renewables Conference – June 2022

Forward-looking statement

All statements contained in this presentation and statements that representatives of ALLETE, Inc. may make orally in connection with this presentation that are not historical facts are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in ALLETE, Inc.’s filings with the Securities and Exchange Commission.

ALLETE’s presentation and other communications may include certain financial measures that do not conform to generally accepted accounting principles (GAAP). A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial condition or cash flow that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company’s financial statements.

Non-GAAP financial measures used by the Company may include a presentation of earnings (loss) per share and earnings. ALLETE management believes that non-GAAP financial measures provide useful information to investors by removing the effect of variances in reported GAAP results of operations that are not indicative of changes in the fundamental earning power of Company operations. Management believes that the presentation of non-GAAP financial measures is appropriate and enables investors and analysts to more accurately compare the Company’s ongoing financial performance during the periods presented. Non-GAAP measures to the most directly comparable GAAP measure, if presented, are included in the appendix.

This presentation was prepared as of June 21, 2022, and ALLETE, Inc. undertakes no obligation to update any information or forward-looking statements contained herein. The outlook for 2022 contained in this document has been provided and is as of February 16, 2022.

For more information contact:

Vince Meyer

Director, Investor Relations and Treasury

  1. 723-3952[email protected]

Visit our website at www.allete.com

Relative to its size, ALLETE is the largest renewable energy investor in the country

Solar and wind capacity as a percentage of market cap (MW / market cap in US dollars)¹

50%

46%

ALLETE continues to evolve as a market leader, now ranking #1 in renewable investing

Source: Public company filings, SNL, press releases, Bloomberg market data as of 16 Feb 22

Note: Includes regulated and unregulated net wind and solar generating capacity.

1 Calculated based on net operating capacity held by solar and wind / market capitalization. Excludes development pipelines.

Key US Renewable Energy Sector Trends and ALE Portfolio Overview

3

ALLETE’s sustainability strategy in action is the basis for success

Develop renewable energy sources

  • Currently ranked #1 among investor-owned utilities to invest in renewable energy based on market capitalization
  • Minnesota Power #1 in Minnesota and #2 in the Midwest as a renewable energy provider
  • New Energy, a leading developer of distributed solar power

Reduce global carbon emissions

  • Minnesota Power
    • Decommissioning/inactivity of seven of the nine coal-fired power plants
    • Renewable targets of 50% by the end of 2020 and 70% by 2030
    • Charcoal-freeby 2035 and 100% decarbonized by 2050
  • ALLETE Clean Energy
    • 1,500 MW helping utilities and C&I customers meet their nationwide sustainability goals

Strengthen the electricity grid

  • Invest in infrastructure to manage the delivery of increasing amounts of renewable energy and improve grid resilience and reliability

Adopt innovative solutions

  • Reduce water consumption, invest in more weather-resistant infrastructure, identify alternatives low or zero carbon fuels and carbon capture and sequestration technologies

Workplace

  • 2021 Women on Board Winner for Gender Diversity on Boards
  • Minnesota Power and ALLETE Clean Energy named Yellow Ribbon Companies
  • We actively advance DE&I
  • Proactive and deliberate COVID-19 response

Community

  • Partnership with various suppliers
  • Corporate funding and employee volunteering for those in need – and filling the opportunity gap
  • Total commitment to regional economies and host communities

Clients

  • Well positionedto serve the C&I customer segment
  • Focus on ESG and competitiveness needs of clients
  • Donate level 2 electric vehicle charging stations to business customers

Corporate Sustainability Report Includes TCFD, SASB, EEI and DE&I components

Clean Energy Trends Drive ALLETE 5-7% Growth

objective

ALLETE’s Sustainable Growth Strategy in Action

  • Develop renewable energy sources
  • Reinforcement of the electrical network
  • Develop innovative solutions
  • Reduce global carbon emissions

• Fund growth with substantial cash

Regulated growth 4-5%

  • Minnesota Power IRP – investments in generation, transmission and distribution
  • Improve ROE
  • Superior Water, Light & Power, ATC investments and other regulated opportunities

ALLETE Clean Energy, New Energy & Others growth 15%

  • Leverage existing platform / Optimize portfolio
  • Develop products and services
  • Acquire new customers and geographies
  • Completion of new, mid-term and advanced-stage projects

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Disclaimer

Allete Inc. published this content on June 24, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Jun 24, 2022 12:25:05 UTC.

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ALLETE, INC. Analyst Recommendations

2022 sales 1,498 million

2022 net income 202M

Net debt 2022 1,846 million

PER 2022 ratio 15.5x
2022 return 4.50%
Capitalization 3,263 million
3,263 million
EV / Sales 2022 3.41x
EV / Sales 2023 3.42x
# of employees 1,357
Floating 94.0%


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Trends Technical Analysis ALLETE, INC.

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Tendencies Bearish Bearish Bearish



Evolution of the income statement

Sale

To buy

Medium consensus HOLD
Number of analysts seven
Last closing price $57.75
Average target price $66.57
Average Spread / Target 15.3%