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Investor Presentaiton

L (dollars in millions) Appendix 44 Operating to Net Income (Fourth Quarter) Three Months Ended December 31, 2020 2019 Variance Operating Income $ 66.5 $ 84.7 $ (18.2) (21.5)% Interest Expense (24.5) (24.1) (0.4) (1.7)% Other Income / (Expense) 5.8 (0.5) 6.3 1,386.0% Income Before Taxes 47.8 60.1 (12.3) (20.5)% Income Tax Benefit / (Expense) Net Income 5.8 (0.1) 5.9 5,900.0% $ 53.6 $ 60.0 $ (6.4) (10.7)% $0.4 million increase in interest expenses was primarily due to higher borrowings. $6.3 million increase in other expense was due to a $2.9 million decrease in other pension expense, a $1.4 million increase in the value of deferred shares held in a trust for non-employee directors deferred compensation and higher AFUDC. These changes to both pension and value of deferred shares are offset in operating expense with no impact to net income. $5.9 million increase in income tax benefits was primarily due to lower pre-tax income in 2020 as well as higher flow-through repairs deductions and higher production tax credits. NorthWestern Energy Delivering a Bright Future
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