Hawaiian Electric Industries · NYSE:HE
Hawaiian Electric Industries — Merger or Acquisition (June 2015)
20 slides from Hawaiian Electric Industries's merger presentation, Jun 8, 2015
Slide 1: Transaction Update June 2015
Transaction Update June 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and other presentations made by Hawaiian Electric Industries, Inc. (HEI) and Hawaiian Electric Company, Inc. (Hawaiian Electric) and their subsidiaries contain “forward-looking statements,” which include statements that are predictive in nature, depend up
Slide 3: Board Recommendation
Board Recommendation HEI Board recommends a vote FOR the transaction Special Meeting: June 10th, 2015 @ 10:00am 1001 Bishop Street - Suite #805 Honolulu, HI 96813 Proxy Materials sent to all HEI shareholders How to vote: A Proxy via the Internet www.proxyvote.com Automated phone voting system 1-800-
Slide 4: Transaction Summary
Merging with NextEra Energy Inc. (“NextEra”) concurrently with spin-off of ASB Hawaii HEI will be a wholly owned subsidiary of NextEra For each share of HEI, HEI shareholders will receive: 0.2413 shares of NEE (tax-free) $0.50 special dividend Spun-off under ASB Hawaii, Inc. concurrently with HEI me
Slide 5: Transaction Summary (Cont'd)
Transaction Summary (Cont’d) Median of six equity research analyst estimates as of 5/29/2015; excludes benefits of Durbin recapture and DTA Transaction Considerations HEI shareholders to receive NextEra Energy common stock, shares in ASB, and a one-time cash dividend Stock components expected to be
Slide 6: Share breakdown
Share breakdown What will happen to my HEI shares if the merger with What is the estimated combined NextEra Energy and the spin-off of American Savings _ value of these three components? Bank are completed? Mlustrative Value” as of 5/29/15: $24.69 Based on NextEra Energy's trading price of $102.34 o
Slide 7: Dividend Impact
Dividend Impact NextEra Energy has a strong record of growing share value and dividends to shareholders Poised for continued growth A leading bank in Hawai’i with solid profitability and a history of high performance Intends to pay attractive dividends that are expected to grow over time 7
Slide 8: Illustrative annual dividend per HEI share
Mlustrative annual dividend per HEI annual dividend share in 2016 (assumes per share ‘transaction completed in 2015) $1.50 ‘One-time special cash dividend $0.50 {at completion of transaction) Potential dividend on 1/3 of a share of ASB Hawaii in 2016 (estimate as of 4/24/15; assumes 35% dividend pay
Slide 9: HEI, NextEra Energy and ASB Transaction Update Key Milestones
HEI, NextEra Energy and ASB Transaction Update Key Milestones* Status NextEra Energy (NEE) SEC Form S-4 in connection with proposed merger Filed January 8, 2015 NEE and HEI joint Hawaii Public Utilities Commission (PUC) Application for Merger Approval Docket No. 2015-0022 filed January 29, 2015 HEI
Slide 10: Why Hawai'i and Why Hawaiian Electric?
Why Hawai‘i and Why Hawaiian Electric? Clean energy transformation Hawai‘i’s reliance on oil and prolific natural resources creates tremendous opportunity to provide value for customers Postcard from the future Hawaiian Electric is addressing unprecedented renewable integration challenges Ability to
Slide 11: What are the Benefits for Hawai'i?
What are the Benefits for Hawai‘i? Clean, Reliable, Affordable Energy for Customers NextEra Energy is supportive of Hawaiian Electric’s plans and goals We welcome stakeholder input Together we can do more to accelerate and deepen this transformation Commitment to Hawai‘i and Local Communities Hawaii
Slide 12: NextEra Energy's Strengths Accelerate Hawaiian Electric's Clean Energy Transformation
NextEra Energy’s Strengths Accelerate Hawaiian Electric’s Clean Energy Transformation Achieve Industry-Leading Levels of Renewables Transition Generation Portfolio to Cleaner Fuel Sources, including Renewables and LNG Modernize T&D Grid by Developing and Installing New Physical Infrastructure and Te
Slide 13: NEE Has Been a Sustained Growth Story
NEE Has Been a Sustained Growth Story Source: NEE Investor Conference 3/11/2015 13
Slide 14: NEE's Track Record of Generating Shareholder Value
NEE’s Track Record of Generating Shareholder Value Source: NEE Investor Conference 3/11/2015 14
Slide 15: As New NEE Shareholders, HEI Shareholders are buying into a Growth Stock
As New NEE Shareholders, HEI Shareholders are buying into a Growth Stock Source: SNL Financial 5/29/2015 15
Slide 16: Overview of the Bank Separation
Overview of the Bank Separation Company Benefits to Hawaiian Electric Industries Shareholders Spinoff Company: ASB Hawaii, Inc., parent company of American Savings Bank, FSB. Midpoint of recent analysts estimates – $8.00 per share of HEI¹ Additional value creation from the separation: Higher fee inc
Slide 17: Durbin recapture and tax basis step-up
Durbin recapture Prior to July 1, 2013, ASB was exempt from regulatory caps on debit card interchange income under the Durbin Amendment to the Dodd- Frank Act and earned approximately $6 million (after-tax) higher fee income After the spinoff, with consolidated assets below $10 billion, ASB will reg
Slide 18: Bank Valuations Poised to Increase with Rising Interest Rates
Bank Valuations Poised to Increase with Rising Interest Rates Source: SNL Financial 5/29/2015 18
Slide 19: Hawaii 2014 Peer Comparison
Hawaii 2014 Peer Comparison Balance Sheet (in $ billions, as of Dec. 31, 2014) Total Assets 14.8 5.6 4.9 Total Deposits 12.6 4.6 4.1 Total Equity Capital 1.1 0.5 0.6 Full Year 2014 Profitability (%) Net Interest Margin (FTE) 2.85 3.62 3.32 Efficiency Ratio 58.4 66.2 70.4 PTPP ROAA 1.63 1.51 1.14 ROA
Slide 20: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “may,” “will,” “anticipate,” “estimate,” “expect,” “project,” “inte
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