Waste Management, Inc. · NYSE:WM
Waste Management — Non-Deal Roadshow (September 2011)
26 slides from Waste Management's roadshow presentation, Sep 12, 2011
Slide 1: Waste Management, Inc. Investor Meetings September 2011
Waste Management, Inc. Investor Meetings September 2011
Slide 2: Cautionary Statement
Cautionary Statement Certain statements provided in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are often identified by the words, "will," "may,"
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains non-GAAP financial measures under Regulation G of the Securities Exchange Act of 1934, as amended. The Company believes that these non-GAAP financial measures are useful to investors to assess the Company's performance, results of operations and
Slide 4: Key Industry Strengths
Key Industry Strengths 4 Disciplined pricing Improving return on invested capital is a primary focus A significant portion of revenue has annuity-like characteristics Capital expenditures are controllable and predictable Cash flow is strong and predictable
Slide 5: WM 2010 Revenue Mix by Line of Business
WM 2010 Revenue Mix by Line of Business 5 (CHART) (CHART) Revenue base is well diversified Based on 2010 Gross Revenues
Slide 6: Our Strategy
Our Strategy Continue to focus on price, targeting 50 to 100 basis points above CPI Know more about our customers and how to service them better than anyone else in the industry, through the use of customer focused segmentation and technology Manage the waste stream to extract more value from the ma
Slide 7: Yield and Volume Trends
Yield and Volume Trends Collection and Disposal Operations 7 * Source: United States Department of Labor - Bureau of Labor Statistics (CHART)
Slide 8: Why Customer Focused Growth through Segmentation is Right for WM
Why Customer Focused Growth through Segmentation is Right for WM Customer focused growth through segmentation presents an opportunity to drive significant incremental value by: Improving sales effectiveness with focused and specialized reps that understand customer needs, i.e. one point of contact I
Slide 9: Acquisition of Oakleaf
Acquisition of Oakleaf 9 Acquired Oakleaf effective July 28, 2011 for $425 million* The acquired operations generated approximately $580 million of revenue in 2010 Oakleaf has a substantial base of national accounts customers and these service relationships provide a growth opportunity for WM to inc
Slide 10: How We Extract Value from Material
How We Extract Value from Material Waste-to-energy (energy from waste) Curbside and commercial recycling Landfill-gas-to-energy or to fuel C&D recycling Roof shingle recycling Greenopolis (r) Recycling kiosks and on-line rewards WM LampTracker (r) Fluorescent light bulb recycling ThinkGreenFromHome
Slide 11: Single Stream Recycling
Single Stream Recycling Single Stream Recycling Single-stream recycling increases participation - on average up to 50 percent more recyclable materials Helps lower costs and emissions by reducing transportation while capturing new volume Increases route productivity by 10% to 30% Employs advanced re
Slide 12: Cost Savings Initiatives
Cost Savings Initiatives 12 Investing today to provide long-term benefits Temporarily using consultants to assist with cost reductions and operational efficiencies while we build internal capabilities Focused on: Procurement Routing and Logistics Centralization of Dispatch
Slide 13: Financial Performance and Outlook
Financial Performance and Outlook
Slide 14: How We Measure Ourselves
How We Measure Ourselves Returns are our primary focus In 2005 we made return on invested capital our key long-term focus, changing our Long-Term Incentive Plan accordingly At 10.5% in 2010, our return on invested capital is the best in the industry* Improving margins in each of our businesses Impro
Slide 15: New Project Return Criteria
New Project Return Criteria Collection and Landfill 12% Recycling 15% Waste-to-Energy 11% Organic Growth 17% Note: Return requirements are adjusted based on the risk profile of the investment 15 Minimum Internal Rate of Return by Business Type
Slide 16: 2011 Use of Cash from Operations and Proceeds from Divestitures
2011 Use of Cash from Operations and Proceeds from Divestitures of Businesses* 16 * The reconciliation illustrates a projection of use of cash, assuming full year 2011 Net cash provided by operating activities of $2.6 billion, and this projection is not intended to be representative of how we may el
Slide 17: Cash Dividends Paid Per Share Annually
Cash Dividends Paid Per Share Annually 17 Year 2004 0.75 2005 0.8 2006 0.88 2007 0.96 2008 1.08 2009 1.16 2010 1.26 2011 1.36 * Based upon the price of Waste Management stock as of September 8, 2011 * *The Board of Directors approved an 8.0% increase in the future quarterly dividend rate to $0.34 pe
Slide 18: 2011 Guidance
2011 Guidance Earnings per diluted share, as adjusted, in the range of $2.14 to $2.18* Internal revenue growth from yield in the collection and disposal business of approximately 2.0%, in line with goal of between 50 and 100 bps above CPI Internal revenue growth from volume expected to be between ne
Slide 19: Second Half of 2011 Initiative Impact on EPS
Second Half of 2011 Initiative Impact on EPS We expect to see the following impacts on Q3 earnings with increasing benefit in Q4 and through 2012 We expect that the net benefit from the cost savings program in the second half of 2011 to offset the full year cost of the program Our growth initiatives
Slide 20: Summary
Summary Q2 2011 Net income was $237 million, or $0.50 per diluted share Q2 2011 revenue grew 6.0% primarily from increased recycling volumes, higher commodity prices, acquisitions and yield Net cash provided by operating activities was $478 million We expect that the impact from investments in cost
Slide 21: Annex: Reconciliation of Certain Non-GAAP Measures
Annex Reconciliation of Certain Non-GAAP Measures 21
Slide 22: Reconciliation of Certain Non-GAAP Measures
Reconciliation of Certain Non-GAAP Measures 22 * Adjusted income from operations and adjusted provision for income tax. See remainder of this Annex for the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure
Slide 23: Reconciliation of Certain Non-GAAP Measures
Reconciliation of Certain Non-GAAP Measures 23
Slide 24: Reconciliation of Certain Non-GAAP Measures
Reconciliation of Certain Non-GAAP Measures 24
Slide 25: Reconciliation of Certain Non-GAAP Measures
Reconciliation of Certain Non-GAAP Measures 25
Slide 26: Waste Management, Inc. Investor Meetings September 2011
Waste Management, Inc. Investor Meetings September 2011
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