{ "docId": "019de518-36cb-716e-be22-2ada4cde7f0b", "docSlug": "13f36e1ebab78b40f08022a6ed82eb17", "documentTitle": "Altus Power | Results Presentation Deck | 21 slides", "authorId": "altus-power", "authorName": "Altus Power", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2024-03-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 20, "pageCount": 21, "prevPage": 19, "nextPage": 21, "slideType": "appendix_data", "function": "appendix", "density": "overcrowded", "nDataPoints": 0, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de518-36cb-716e-be22-2ada4cde7f0b/20", "deckHref": "/decks/019de518-36cb-716e-be22-2ada4cde7f0b", "deckJsonHref": "/decks/019de518-36cb-716e-be22-2ada4cde7f0b.json", "deckAnchorHref": "/decks/019de518-36cb-716e-be22-2ada4cde7f0b#slide-20", "components": [ { "bbox": { "h": 0.04, "w": 0.11, "x": 0.85, "y": 0.04 }, "kind": "image", "text": "ALTUSPOWER RENEWABLE ENERGY", "attrs": null, "subkind": "logo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "935643ce-f9d0-4876-bc18-0278b479938f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.92, "x": 0.04, "y": 0.9 }, "kind": "paragraph", "text": "Loss on Extinguishment of Debt, net. When the repayment of debt is accounted for as an extinguishment of debt, loss on extinguishment of debt represents the difference between the reacquisition price of debt and the net carrying amount of the extinguished debt.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "16c5002c-7d58-4d2b-8fb9-f2db6a874a78", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.92, "x": 0.04, "y": 0.48 }, "kind": "paragraph", "text": "Stock-Based Compensation Expense. Stock-based compensation expense is recognized for awards granted under the Legacy Incentive Plans and Omnibus Incentive Plan, as defined in Note 17, \"Stock-Based Compensation,\" to our consolidated financial statements included in our report on Form 10-K for the year ended December 31, 2023.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2f6fcb45-e116-45c5-97b7-d9214515fb7e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.92, "x": 0.04, "y": 0.66 }, "kind": "paragraph", "text": "Gain or Loss on Disposal of Property, Plant and Equipment. In connection with the disposal of assets, the Company recognizes a gain or loss on disposal of property, plant and equipment, which represents the difference between the consideration received and the carrying value of the disposed asset.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4dcc2380-5e97-4366-b350-bc44d699ef7d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.92, "x": 0.04, "y": 0.56 }, "kind": "paragraph", "text": "Fair Value Remeasurement of Contingent Consideration. In connection with various acquisitions, contingent consideration may be payable upon achieving certain conditions. The Company estimates the fair value of contingent consideration using a Monte Carlo simulation model or an expected cash flow approach. Significant assumptions used in the measurement of fair value of contingent consideration associated with various acquisitions include market power rates, estimated volumes of power generation of acquired solar energy facilities, percentage of completion of in-development solar energy facilities, and the risk-adjusted discount rate associated with the business.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "77e5cb47-ea4c-4f1c-b757-02ae26112ec5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.92, "x": 0.04, "y": 0.43 }, "kind": "paragraph", "text": "Acquisition and Entity Formation Costs. Acquisition and entity formation costs represent costs incurred to acquire businesses and form new legal entities. Such costs primarily consist of professional fees for banking, legal, accounting and appraisal services.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8b2451b0-854c-4b41-acd2-a4c21e09c94c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.92, "x": 0.04, "y": 0.29 }, "kind": "paragraph", "text": "Income Tax (Expense) Benefit. We account for income taxes under ASC 740, Income Taxes. As such, we determine deferred tax assets and liabilities based on temporary differences resulting from the different treatment of items for tax and financial reporting purposes. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Additionally, we must assess the likelihood that deferred tax assets will be recovered as deductions from future taxable income. We have a partial valuation allowance on our deferred state tax assets because we believe it is more likely than not that a portion of our deferred state tax assets will not be realized. We evaluate the recoverability of our deferred tax assets on an annual basis.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9b70552f-283f-4c18-8908-b62548358dc7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.92, "x": 0.04, "y": 0.72 }, "kind": "paragraph", "text": "Change in Fair Value of Redeemable Warrant Liability. In connection with the Merger, the Company assumed a redeemable warrant liability composed of publicly listed warrants (the \"Redeemable Warrants\") and warrants issued to CBRE Acquisition Sponsor, LLC in the private placement. In October 2022, the Company redeemed all outstanding Redeemable Warrants. The redeemable warrant liability was remeasured through the date all outstanding Redeemable Warrants were redeemed, and the resulting loss was included in the consolidated statements of operations.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b75ec875-ff63-46a1-a24c-b9d0013c794a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.92, "x": 0.04, "y": 0.11 }, "kind": "paragraph", "text": "Depreciation, Amortization and Accretion Expense. Depreciation expense represents depreciation on solar energy systems that have been placed in service. Depreciation expense is computed using the straight-line composite method over the estimated useful lives of assets. Leasehold improvements are depreciated over the shorter of the estimated useful lives or the remaining term of the lease. Amortization includes third party costs necessary to enter into site lease agreements, third party costs necessary to acquire PPA and NMCA customers and favorable and unfavorable rate revenues contracts. Third party costs necessary to enter into site lease agreements are amortized using the straight-line method ratably over 15-30 years based upon the term of the individual site leases. Third party costs necessary to acquire PPAs and NMCA customers are amortized using the straight-line method ratably over 15-25 years based upon the term of the customer contract. Estimated fair value allocated to the favorable and unfavorable rate PPAs and REC agreements are amortized using the straight-line method over the remaining non-cancelable terms of the respective agreements. Accretion expense includes over time increase of asset retirement obligations associated with solar energy facilities.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bd736466-fbcb-4ecd-ba6e-4549e4082ed4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.77, "x": 0.04, "y": 0.95 }, "kind": "paragraph", "text": "Other (Income) Expense, Net. Other income and expenses primarily represent interest income, state grants, and other miscellaneous items.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bef25ecc-8e65-4320-ad48-b0022d0f9ffc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.92, "x": 0.04, "y": 0.8 }, "kind": "paragraph", "text": "Change in Fair Value of Alignment Shares. Alignment Shares represent Class B common stock of the Company which were issued in connection with the Merger. Class B common stock, par value $0.0001 per share (\"Alignment Shares\") are accounted for as liability-classified derivatives, which were remeasured as of December 31, 2023, and the resulting gain was included in the consolidated statements of operations. The Company estimates the fair value of outstanding Alignment Shares using a Monte Carlo simulation valuation model utilizing a distribution of potential outcomes based on a set of underlying assumptions such as stock price, volatility, and risk-free interest rates.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c06efbff-f25b-40b0-a4a1-9fb9df21c6d5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.02, "x": 0.95, "y": 0.95 }, "kind": "source-note", "text": "20", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0cfe6006-35a4-451a-9218-a9d9957d4e8e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.43, "x": 0.04, "y": 0.04 }, "kind": "title", "text": "Adjusted EBITDA Definitions", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "50994dd2-cb0d-400f-a3ad-ea7c020e4a82", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 21, "from": 11, "beatId": "af98441f-6bb5-4237-bf10-15b47c131aed", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Action", "beatSlug": "aida-action", "evidence": "The appendix and contact information provide additional details and a call to action", "position": 3, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 21, "from": 11, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "20348717-daed-4364-a62d-7e7a47afd16e", "evidence": "The appendix and contact information provide additional details", "position": 2, "objective": "What are the implications of not investing in Altus Power?", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }