Additional Information And Where to Find It In connection with the proposed merger, Wisconsin Energy filed with the Securities and Exchange Commission (SEC) a registration statement on Form S-4 that includes a joint proxy…
Current Investment Thesis An Earn and Return Company with a Low Risk Profile Positive free cash flow Targeted EPS growth of 4%-6% Best in class dividend growth - targeting a dividend payout ratio of 65%-70% of earnings in 2017 In…
Future Investment Thesis An Earn and Return Company with a Low Risk Profile Remain positive free cash flow Targeted EPS growth of 5%-7% Accelerated dividend growth Implies dividend increase of 7-8% from current 2015 dividend at…
A Track Record of Performance Leading Reliability and Customer Satisfaction Named the most reliable utility in the Midwest for the fourth year in a row and seven of the past 10 years Ranked 1 in the Midwest for customer service…
A Track Record of Performance Dramatic Change in Environmental Performance From 2000 to 2015... Power plant capacity up 50% Emissions of nitrogen oxide sulfur dioxide down 80% mercury particulate matter 7
A Track Record of Performance Consistent Earnings and Dividend Growth Wisconsin Energy is the only company in the S&P Electric Index S&P Utilities Index Philadelphia Utility Index Dow Jones Utilities Average that has grown earnings…
A Track Record of Performance Industry Leading Total Shareholder Returns One Three Five Ten Year Year Year Year Wisconsin Energy 32.1% 67.0% 149.9% 317.9% S&P Utilities Index 29.0% 47.9% 87.1% 150.9% S&P Electric Index 31.2% 40.7%…
A Track Record of Performance Summary of Wisconsin Energys Core Business Rate Base and Power the Future Investment at 12/31/14 10.3 Billion Retail Electric and Gas Utilities 0.8 Wisconsin, Michigan, and FERC jurisdictions 2.7 48.5%…
Where We Go From Here Delivering the Future From 2015 through 2024, our plan is to invest 6.6 to 7.2 billion in needed infrastructure projects that will: Renew and modernize our grid Meet new environmental standards Reduce our…
Where We Go From Here Ten-Year Capital Investment in our Retail Utilities (Projected Investment, In millions) 900 800 765 Renewable: 250 - 450M 690 681 670 700 657 647 650 660 660 628 316 590 600 208 227 219 225 260 250 250…
Where We Go From Here Delivering the Future Overview Between 2015 and 2019, we plan to: Rebuild 2,500 miles of electric distribution lines that are more than 50 years old Upgrade our electric infrastructure by replacing: 27,000 power…
Where We Go From Here Major Construction Projects Western Wisconsin gas distribution expansion 175-185 million investment Projected in-service date: fourth quarter, 2015 Projects at our new Oak Creek units Seeking Wisconsin…
Where We Go From Here Growth at American Transmission Company Projected Capital Expenditures Key Assumptions (Millions of Dollars) ATC rate base at year end 2015 is projected to be about 3.1 billion 491 486 ATC projects a need for…
Where We Go From Here DATC Joint venture between Duke Energy and ATC (DATC) Ownership is split 50/50 between Duke and ATC Investment opportunities: Californias Path 15 transmission line (purchased interest) Zephyr Power…
Where We Go From Here Major Segment Earnings for 2013 2015 Projecting earnings per share growth of 4-6% annually from the 2011 base 2013A 2014A(2) 2015E(3) Electric and Gas Utilities 1.67 1.79 1.75 to 1.85 Power the Future (1) 0.72…
Transaction Overview Wisconsin Energy is planning to acquire Integrys for a total consideration of 71.47 per share based on June 20 closing price 18
Strategic Rationale Transaction Overview Acquisition will create the leading electric and natural gas utility in the Midwest Combination will offer significant benefits to customers and shareholders of both companies Meets or exceeds…
Strategic Rationale Operational and Financial Fit Operational Strong geographic fit and complementary operations Majority ownership of ATC Regulatory diversification Financial Double the annual capital spending and increase…
Strategic Rationale Pro Forma Company Overview Combined Service Territory Company Statistics Minnesota 16.9 billion market cap 1.6 million electric customers 2.8 million gas customers 60% ownership of ATC Wisconsin 68,000…
Strategic Rationale Current and Pro Forma Business Mix Regulated Business Mix Current WEC(1) Pro Forma WEC(1) Gas Utility Electric Gas Utility 23% ATC Utility 17% 11% 77% ATC 6% Electric Utility 66% (1) Based on 2014…
Strategic Rationale Key Transaction Components Headquarters Corporate headquarters in metropolitan Milwaukee Continued operating headquarters in Green Bay, Chicago, and Milwaukee Leadership Chairman and CEO: Gale Klappa Other senior…
Financial Summary and Approval Timeline Summary of Financial Terms Overall Integrys transaction value: 9.1 billion (based on June 20, 2014 closing price) 5.8 billion for Integrys shares 3.3 billion of assumed Integrys debt 74%…
Financial Summary and Approval Timeline Dividend Policy Integrys shareholders neutral initially Current dividend policy for WEC shareholders until closing WEC shareholders to receive dividend increase at time of close Expected to be…
Financial Summary and Approval Timeline Approval Timeline Regulatory approval decision dates: Illinois July 6, 2015 Michigan Approved April 23, 2015 Expect Minnesota Commission to review Minnesota application in May Verbal approval…
Integrys Overview Integrys Earnings Breakdown More than 99% of earnings 2014 Net Income By Jurisdiction from regulated businesses* 3% 3% More than 60% of earnings from Wisconsin and FERC Wisconsin Wisconsin Jurisdiction: 22% 2.2…
Integrys Overview Regulated Investment Opportunities Projected investment over 700 million annually Selected Projects by Company 2015 2016 2017 2018 2019 Regulated Electric Weston 3 environmental upgrade * System Modernization and…
Integrys Overview Chicago Gas Infrastructure Investment Twenty-year program to replace gas infrastructure in the City of Chicago Average annual investment over next five years expected to be 350 million Investment recovery covered…
Integrys Overview Wisconsin Public Service Investment Weston 3 plant environmental upgrade Approved by Wisconsin Commission 345 million of total investment expected from 2013-2016 System Modernization and Reliability Project Approved…
Key Takeaways of Transaction Combination creates the leading electric and natural gas utility in the Midwest and a top ten gas distribution company EPS growth of 5-7% coupled with strong dividend growth Larger ownership in ATC brings…
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