Essential Utilities, Inc. · NYSE:WTRG
Essential Utilities — Shareholder Meeting (May 2018)
20 slides from Essential Utilities's shareholder meeting presentation, May 8, 2018
Slide 1: 2018 Annual Meeting
2018 Annual Meeting AQUA. U May 8, 2018
Slide 2: Dave Smeltzer Retirement
Dave Smeltzer Retirement NYSE: WTR 32-year career with Aqua CFO for 19 years Played a key role in over 300 acquisitions that reshaped the company Helped to pioneer key regulatory mechanisms such as DSIC Named 2009 CFO of the Year by Philadelphia Business Journal
Slide 3: Executive Team Update
Executive Team Update NYSE: WTR Dan Schuller = Appointed CFO, serving as deputy CFO until Dave Smeltzer retirement in October = Previously was EVP, Strategy and Corporate Development since 2015 = Spent 8 years with J.P. Morgan Asset Management - Infrastructure Investments Group Matthew Rhodes = Appo
Slide 4: Forward Looking Statement
Forward Looking Statement This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that
Slide 5: Mission
Y Mission Protecting and providing Earth’s most essential resource. Values NYSE: WTR
Slide 6: Reviewing 2017
Reviewing 2017 * Continued operational excellence * Invested a record $478 million in infrastructure * Executing on strategic growth plan * Strong stock performance and dividend growth * Refined the corporate culture NYSE: WTR
Slide 7: Acquisitions, Net Income Per Share, Dividend Growth
Acquisitions Net Income Per Share • Four water and wastewater deals representing over 1,000 new customers • Municipal pipeline expands with six pending acquisitions due to close in 2018 Infrastructure Dividend Growth Investment • 7% year-over-year dividend growth • 73 years of consecutive years of q
Slide 8: Infrastructure Footprint
Infrastructure Footprint as of December 31, 2017 ( NO NS Ni Ni ‘\ \ + 12,825 21 187 ~ 3,300 +866 ~1,100 Miles of Surface Wastewater Wells Water Vehicles Water Main Water Treatment Storage Filtration Plants Tanks Plants $4.1 Billion in Total Rate Base S J. /\. )\. J. J\. y, NYSE: WTR
Slide 9: Infrastructure Investment
Infrastructure Investment Regulated Operations NYSE: WTR Capital Investment Breakdown 2018 - 2020 Vehicles 2%_ Other 1% Meters 3% Tanks & Boosters 4% Mains & Services 56% 3 YEAR TOTAL= $1.4 billion AQUA
Slide 10: • Driver of growing our foundational • Our primary focus today • Opportunistic pursuit
• Driver of growing our foundational water/wastewater business • Our primary focus today • Opportunistic pursuit of large, regulated utility/infrastructure targets • Complementary to our regulated business • Capitalizes on broader infrastructure renewal
Slide 11: Average of ~17,000 new customers per year
If we include our 2018 projections, from 2015 to 2018, we will average a total of ~17,000 new customers per year , with an average of ~8,600 from acquisitions. 2015 2016 2017 2018P 9,000 Organic Growth 7,168 7,681 Acquisitions 9,581 16,325 10,579 6,658 1,003 # of New Connections # of New Connections
Slide 12: Six municipal acquisitions signed to close in 2018
We have six municipal acquisitions that are signed and slated to close in 2018. Approx. Number of Approx. Purchase Price Acquisition1 Type Customers ($000s) Expected to Close in 2018 System A WW 5,400 $75,100 System B WW 2,100 $29,500 System D W 600 $3,600 System E W / WW 2,987 $12,300 System F WW 3
Slide 13: Operational Excellence and Safety
Operational Excellence and Safety NYSE: WTR AQUA. 13
Slide 14: Helping Communities & Employees
Helping Communities & Employees 1 2 3 4 Volunteering Aqua Work-Life Knowledge Charitable Balance Sharing NYSE: WTR
Slide 15: Customer Communications
Prepared for the residents of Lake Monticello. A. The SR WaterLink Prato by Kove Waiams Customer Communications Water is Essential Ensure clean, infesucnre Investment in safe water so LU ond resources water must be all are at risk. a top priority. communities ‘ can thrive. @MyAquaAmerica ee @MyAquaA
Slide 16: WTR vs SP500 vs XLU
WTR: 30.6% SP500: 19.4% XLU: 8.5 %
Slide 17: Dividend History
Dividend History 7.0% Increase to Annualized Dividend Rate of $0.8188 Effective 9/1/2017 $0.85 $0.80 $0.75 $0.70 4 $0.65 $0.60 4 $0.55 $0.50 $0.45 $0.40 Dividend per Share (annualized) -o7 ae 0.8188 als 4 on . 0.7652 cpec- . -7 07120 - - - - - o 0.6600 - 4 - - - 0.6080 - 0.5600 / 2012 2013 2014 2015
Slide 18: 2018 Guidance
2018 Guidance Customer Growth NYSE: WTR
Slide 19: Questions
Questions AQUA.
Slide 20: For more information contact
For more information contact: Brian Dingerdissen Chief of Staff and Head of Investor Relations 610.645.1191 BJDingerdissen@AquaAmerica.com