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Investor Presentaiton

L GAAP (in millions) Twelve Months Ended Dec. 31, 2020 Appendix 55 Adjusted Non-GAAP Earnings (Full Year) o Unfavorable Weather Move Pension Expense to OG&A (disaggregated with ASU 2017-07) Non-employee Deferred Compensation Disallowance of prior period Osupply costs Non Non-GAAP Non GAAP Variance GAAP Twelve Months Ended Twelve Months Ended Dec. 31, 2020 Variance Dec. 31, 2019 Remove Benefit Related to Unrecognized Tax Benefits Release of Previously Non-employee Deferred Compensation Move Pension Expense to OG&A (disaggregated with |ASU 2017-07) Favorable Weather GAAP Twelve Months Ended Dec. 31, 2019 Revenues $1,198.7 9.8 9.4 $1,217.9 ($32.7) -2.6% $1,250.6 Cost of sales 306.2 306.2 (11.8) -3.7% 318.0 Gross Margin 892.5 9.8 9.4 911.7 (20.9) -2.2% 932.6 1 (7.3) $1,257.9 318.0 (7.3) 939.9 Op. Expenses OG&A 297.1 0.6 2.9 300.6 (22.8) -7.0% 323.4 (2.4) 7.6 318.2 Prop. & other taxes 179.5 179.5 7.6 4.4% 171.9 . 171.9 Depreciation 179.7 179.7 6.8 3.9% 172.9 172.9 Total Op. Exp. 656.3 0.6 2.9 659.8 (8.4) -1.3% 668.2 (2.4) 7.6 663.0 Op. Income 236.2 9.8 (0.6) (2.9) 9.4 251.9 (12.5) -4.7% 264.4 2.4 (7.6) (7.3) 276.9 Interest expense (96.8) 0.5 (96.3) (1.2) -1.3% (95.1) (95.1) Other Inc. (Exp.), net 4.8 0.6 2.9 8.3 2.7 47.8% 5.6 (2.4) 7.6 0.4 Pretax Income 144.2 9.8 9.9 163.9 (11.0) Income Tax Ben.(Exp.) 11.0 (2.5) (2.5) 6.0 Net Income $155.2 7.3 7.4 $169.9 7.1 ($3.9) -6.3% 674.2% -2.2% 174.9 (7.3) 182.2 $173.8 (1.1) (22.8) (22.8) 1.8 19.9 (5.5) $202.1 ETR -7.6% 25.3% 25.3% Diluted Shares Diluted EPS 50.7 $3.06 0.14 0.15 -3.7% 50.7 $3.35 0.6% 25.3% -10.9% (0.1) -0.2% ($0.07) -2.0% 50.8 50.8 $3.42 (0.45) (0.11) $3.98 The adjusted non-GAAP measures presented in the table are being shown to reflect significant items that are non-recurring or variance from normal weather, however they should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. (1) As a result of the adoption of Accounting Standard Update 2017-07 in March 2018, pension and other employee benefit expense is now disaggregated on the GAAP income statement with portions now recorded in both OG&A expense and Other (Expense) Income lines. To facilitate better understanding of trends in year-over-year comparisons, the non-GAAP adjustment above re-aggregates the expense in OG&A - as it was historically presented prior to the ASU 2017-07 (with no impact to net income or earnings per share). NorthWestern Energy Delivering a Bright Future
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