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Investor Presentaiton

L Appendix 48 Adjusted Non-GAAP Earnings (Fourth Quarter) GAAP Non Non-GAAP Non GAAP Variance GAAP Three Months Ended Dec. 31, 2020 (in millions) Unfavorable Weather Move Pension Expense to OG&A (disaggregated with ASU 2017-07) Non-employee Deferred Compensation Disallowance of prior period supply costs Three Months Ended Three Months Ended Dec. 31, Variance 2020 Dec. 31, 2019 % Non-employee Deferred Compensation Move Pension Expense to OG&A (disaggregated with ASU 2017-07) Unfavorable Weather Revenues $313.6 5.7 9.4 $328.7 ($0.1) 0.0% $328.8 Cost of sales 86.0 86.0 3.7 4.5% 82.3 Gross Margin 227.6 5.7 9.4 242.7 (3.8) -1.5% 246.5 GAAP Three Months Ended Dec. 31, 2019 0.7 $328.1 82.3 0.7 245.8 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, Op. Expenses however they OG&A 73.1 0.2 (2.1) 71.2 (10.4) -12.7% 81.6 0.7 1.6 79.3 should not be Prop. & other taxes 42.7 42.7 4.0 10.3% 38.7 38.7 considered a Depreciation 45.3 45.3 2.2 5.1% 43.1 43.1 substitute for Total Op. Exp. 161.1 - 0.2 (2.1) 159.2 (4.2) -2.6% 163.4 0.7 1.6 - 161.1 financial results Op. Income 66.5 5.7 (0.2) 2.1 9.4 83.5 0.4 0.5% 83.1 (0.7) (1.6) 0.7 84.7 and measures Interest expense (24.5) 0.5 (24.0) 0.1 0.4% (24.1) (24.1) Other (Exp.) Inc., net 5.8 0.2 (2.1) 3.9 2.1 113.6% 1.8 0.7 1.6 - (0.5) Pretax Income 47.8 5.7 9.9 63.4 2.6 4.3% 60.8 0.7 60.1 Income tax (Exp)/Ber 5.8 (1.4) (2.5) 1.9 2.2 793.9% (0.3) (0.2) (0.1) determined or calculated in accordance with GAAP. Net Income $53.6 4.3 7.4 $65.3 $4.8 7.9% $60.5 0.5 $60.0 ETA -12.1% 25.3% 25.3% -2.9% 0.5% 25.3% 0.2% Diluted Shares 50.7 50.7 (0.1) -0.2% 50.8 50.8 Diluted EPS $1.06 0.08 0.15 $1.29 $0.10 8.4% $1.19 0.01 $1.18 (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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