Evergy, Inc. · NASDAQ:EVRG
Evergy — Monarch Energy Holding — 2017 Edison Electric Institute Financial Conference
25 slides from Evergy's conference presentation, Nov 3, 2017
Slide 1: Westar Energy and Great Plains Energy Merger of Equals to Form Leading Energy Company
Westar Energy and Great Plains Energy MERGER OF EQUALS TO FORM LEADING ENERGY COMPANY 2017 Edison Electric Institute Financial Conference November 5-8, 2017 Exhibit 99.1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements made in this presentation that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to the ant
Slide 3: Merger Overview
MERGER OVERVIEW
Slide 4: Merger of Equals Creates a Leading Energy Company
Creates a leading energy company with a combined equity value of ~$15 billion1 – a more valuable company for shareholders and a stronger company for customers 100% stock-for-stock, tax-free exchange of shares with no transaction debt and no exchange of cash Exchange Ratio WR: 1:1 (52.5% ownership) G
Slide 5: Strong Platform for Earnings Growth
STRONG PLATFORM FOR EARNINGS GROWTH Targeted Pro Forma EPS Growth1 6%-8% CAGR EPS growth based on Westar Energy 2016 actual EPS of $2.43. Driven By: Merger savings FERC regulated transmission growth Share repurchases 2018 general rate review to reduce regulatory lag 2017 EEI FINANCIAL CONFERENCE
Slide 6: Strong Platform for Dividend Growth
Targeted Pro Forma Dividend Growth 6%-8% CAGR STRONG PLATFORM FOR DIVIDEND GROWTH Illustrative analysis based on most recent Great Plains Energy quarterly dividend payment annualized of $1.10 per share divided by the 0.5981 exchange ratio. 1 Initial dividend results in 15% increase for Westar’s shar
Slide 7: Platform for Significant Merger Savings
PLATFORM FOR SIGNIFICANT MERGER SAVINGS Targeted Merger Savings ($mm)1 Targeted O&M Cost Reductions ($mm)2 Unique combination provides maximum opportunities for efficiency creation, cost savings for customers, and better ability to earn allowed returns Cost savings and ongoing management of O&M expe
Slide 8: Financial Benefits
FINANCIAL BENEFITS 2017 EEI FINANCIAL CONFERENCE Projected significant earnings accretion to Great Plains Energy and Westar Energy Expect to offer top quartile total shareholder return amongst electric utilities: Target EPS growth of 6% to 8%, 2016 to 20211 Target dividend growth in line with EPS gr
Slide 9: Strong Credit Quality and Capacity for Significant Share Repurchases
STRONG CREDIT QUALITY AND CAPACITY FOR SIGNIFICANT SHARE REPURCHASES Great Plains Energy completed unwind of prior debt and mandatory convertible preferred equity acquisition financing following July 2017 merger of equals announcement, with a cost of approximately $150 million Merger of equals struc
Slide 10: Merger Expected to Close in First Half 2018
MERGER EXPECTED TO CLOSE IN FIRST HALF 2018 Stakeholder Filed Approval Anticipated Additional Info. GXP and WR shareholders √ 4Q17 Special shareholder meetings for Westar and Great Plains to be held on November 21, 2017 KCC √ 2Q18 Docket: 18-KCPE-095-MER MPSC √ 2Q18 Docket: EM-208-0012 FERC √ 1Q18 –
Slide 11: Regulatory and Legislative Priorities
REGULATORY AND LEGISLATIVE PRIORITIES
Slide 12: Regulatory Initiatives
REGULATORY INITIATIVES Regulatory Timing 4Q17 1Q18 2Q18 3Q18 4Q18 Merger Approval Westar General Rate Review KCP&L – KS General Rate Review KCP&L – MO General Rate Review GMO General Rate Review Missouri & Kansas Legislative Session Westar General Rate Review Drivers: Westar Plains Wind Farm Expirat
Slide 13: Ratemaking Construct Cost Recovery Mechanisms
Ratemaking Construct Cost Recovery Mechanisms Westar Kansas KCP&L Kansas KCP&L Missouri GMO Missouri Energy Cost Adj. Rider (KS) / Fuel Adj. Clause Rider (MO) √ √ √ √ Pension and OPEB Tracker √ √ √ √ Property Tax Surcharge Rider √ √ Energy Efficiency Cost Recovery Rider √ √ Missouri Energy Efficienc
Slide 14: State Commissioners
STATE COMMISSIONERS Missouri Public Service Commission (MPSC) Kansas Corporation Commission (KCC) Mr. Daniel Y. Hall (D) Chair (since August 2015) Term began: September 2013 Term expires: September 2019 Mr. Pat Apple (R) Chair (since January 2017) Term began: March 2014 Term expires: March 2018 Mr.
Slide 15: Clean Energy Focus
CLEAN ENERGY FOCUS
Slide 16: Combined Sustainable Energy Portfolio
Combined Company Projections Anticipated Emission Reduction 2005 - 2020 Renewables as Percent of Retail Sales 38% 98% 85% NOx ~30% COMBINED SUSTAINABLE ENERGY PORTFOLIO Wind portfolio will be one of the largest in the United States: ~3,200 MW1 Renewable energy ~30% of retail sales Emission-free ener
Slide 17: Appendix
APPENDIX
Slide 18: Projected Merger Savings
PROJECTED MERGER SAVINGs 2016- 2017 2018E 2019E 2020E 2021E 2022E Total NFOM Labor - $38.3 $66.6 $78.1 $83.2 $85.3 $351.5 NFOM Non-Labor - $8.6 $41.4 $55.1 $54.3 $61.1 $220.5 Fuel - $0.7 $1.0 $1.1 $1.3 $2.3 $6.4 Other - $2.2 $7.9 $12.3 $13.3 $13.4 $49.0 Gross Efficiencies - $49.7 $116.9 $146.5 $151.
Slide 19: Transformation into a Leading Midwest Energy Utility
SELECTED MID-CAP UTILITIES BY ENTERPRISE VALUE ($BN) Source: Company filings, investor presentations, Bloomberg market data as of 10/31/2017. SELECTED MID-CAP UTILITIES BY CUSTOMERS (MILLIONS) SELECTED MID-CAP UTILITIES BY RATE BASE ($BN) Combined Company Combined Company TRANSFORMATION INTO A LEADI
Slide 20: Compelling Strategic and Geographic Fit
COMPELLING STRATEGIC AND GEOGRAPHIC FIT Better positioned to meet customer’s energy needs, provide clean energy and optimize investments to achieve improved long-term financial returns Increased scale and jurisdictional diversity with enhanced platform to drive value for shareholders and customers S
Slide 21: Pro Forma Combined Company Corporate Structure
PRO FORMA COMBINED COMPANY corporate structure 2017 EEI FINANCIAL CONFERENCE NewCo Kansas City Power & Light KCP&L Greater Missouri Operations Westar Energy Great Plains Energy Other Subsidiaries Westar Subsidiaries, notably, KG&E
Slide 22: Pro Forma Combined Company Executive Officer Team
PRO FORMA COMBINED COMPANY executive officer team Board of Directors to be comprised equally of Westar Energy and Great Plains Energy board members. Both Mark Ruelle and Terry Bassham will be members of the Board of Directors. Mark Ruelle will serve as the non-executive Chairman of the Board Charles
Slide 23: Key Terms
KEY TERMS Transaction Structure All stock merger of equals (100% stock-for-stock tax-free exchange); combined equity value of ~$15 billion New company to be jointly named prior to close Exchange Ratio Westar Energy: 1:1 Great Plains Energy: 0.5981:1 Approximate Pro Forma Ownership Westar Energy 52.5
Slide 24: Additional Information
ADDITIONAL INFORMATION 2017 EEI FINANCIAL CONFERENCE Additional Information and Where to Find It This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxy, vote or approval, nor shall there be any sale of securities in
Slide 25: Investor Relations Information
Lori Wright Vice President – Corporate Planning, Investor Relations and Treasurer (816) 556-2506 lori.wright@kcpl.com Calvin Girard Senior Manager, Investor Relations (816) 654-1777 calvin.girard@kcpl.com NYSE: Great plains energy (GXP) INVESTOR RELATIONS INFORMATION Cody VandeVelde Director, Invest
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