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Investor Presentaiton

L Appendix Non-GAAP Financial Measures (2 of 3) Use of Non-GAAP Financial Measures - Dividend Payout Ratio to GAAP and Non-GAAP diluted EPS 44 64 (per share) Dividend per Share Reported GAAP diluted EPS 2011 2012 2013 2014 2015 2016 2017 $ 1.44 $ 1.48 $ 1.52 $ $ 2.53 $ 2.66 69 $ 2.46 $ Dividend Payout Ratio - GAAP diluted EPS 56.9% 55.6% 61.8% 1.60 $ 1.92 $ 2.00 2.99 $ 3.17 $ 3.39 53.5% 60.6% 59.0% 69 69 69 69 69 2018 2020 $ 2.40 3.98 $ 3.06 57.8% 2.10 $ 2.20 $ 2.30 3.34 $ 3.92 $ 62.9% 56.1% 2019 78.4% Reported Non-GAAP diluted EPS $ Dividend Payout Ratio - Non-GAAP diluted EPS 2.41 59.8% $ 2.37 62.4% $ 2.50 $ 60.8% 2.68 $ 59.7% 3.15 $ 61.0% 3.30 60.6% $ 3.30 S 3.39 $ 63.6% 64.9% 3.42 67.3% $ 3.35 71.6% Use of Non-GAAP Financial Measures - Return on Average Equity for GAAP and Non-GAAP Earnings (per share) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GAAP Net Income ($M's) $ Average Quarterly Equity (SM's) $ Return On Average Equity (ROAE) - GAAP Earnings 11.0% 92.6 $ 98.4 $ 94.0 842.8 $ 895.9 $ 991.1 11.0% 9.5% $ 120.7 $ 1,119.3 10.8% 9.9% $ 151.2 $ 164.2 S 162.7 $ 1,520.2 $ 1,632.3 $ 1,720.4 10.1% $ 197.0 $ 202.1 $ 155.2 $ 1,875.7 $ 1,998.8 $ 2,056.9 9.5% 10.5% 10.1% 7.5% Reported Non-GAAP diluted EPS $2.41 $2.37 $2.50 $2.68 $3.15 $3.30 $3.30 $3.39 $3.42 $3.35 Average Diluted Shares (M) 36.5 37.0 38.2 39.3 47.6 48.5 48.7 50.2 50.8 50.7 Calculated Non-GAAP Adjusted Net Income (SM's) $88.2 $87.7 $94.9 $105.3 $150.3 $160.2 Return on Average Equity (ROAE) - Non-GAAP Earnings 10.5% 9.8% 9.6% 9.4% 9.9% 9.8% $160.6 9.3% $170.8 $174.3 $170.4 9.1% 8.7% 8.3% Net Operating Losses (NOL's): The expected tax rate and the expected availability of NOLS are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please consult the "Risk Factors" section of our most recent 10-K filed with the SEC. NorthWestern Energy Delivering a Bright Future
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