Aquila SA · EURONEXT:ALAQU
Aquila SA — Q1 2007 Earnings Presentation
18 slides from Aquila SA's earnings presentation, May 8, 2007
Slide 1: Aquila Inc. Q1 2007 Financial Results Call
Aquila Inc. NYSE: ILA www.aquila.com Rick Green Chief Executive Officer Aquila Q1 2007 Financial Results Call May 8, 2007 Jon Empson Senior Vice President of Regulated Operations Beth Armstrong Senior Vice President & Chief Accounting Officer
Slide 2: Information Concerning Forward-Looking Statements
2 Information Concerning Forward-Looking Statements This presentation and comments we will make contain forward-looking information relating to financial forecasts and key assumptions underlying those forecasts. In connection with the safe harbor provisions of the Private Securities Litigation Refor
Slide 3: Additional Information and Where to Find It
3 ADDITIONAL INFORMATION AND WHERE TO FIND IT This information is not a solicitation of a proxy from any holder of our common stock. In connection with our proposed merger with a subsidiary of Great Plains, Great Plains will file with the Securities and Exchange Commission (“SEC”) a registration sta
Slide 4: First Quarter in Review
4 First Quarter in Review Base load generation availability coupled with colder than normal weather, yielding increased fuel & purchased power costs. These costs continued to pressure our Missouri electric operations. Rate settlements & customer growth partially offset the fuel cost challenges exper
Slide 5: Financial Review
Financial Review Beth Armstrong Senior Vice President & Chief Accounting Officer
Slide 6: Income Statement – 2007 vs. Prior Year
6 Income Statement – 2007 vs. Prior Year
Slide 7: Business Segment EBITDA – 2007 vs. Prior Year
7 Business Segment EBITDA – 2007 vs. Prior Year
Slide 8: Major Performance Drivers - Electric
8 Major Performance Drivers - Electric (17.4) $ 0.7 Other, net (5.5) Unfavorable settlements on contracts within MO Electric hedging program (15.5) High fuel & purchase power costs (3.4) Transmission outage - force majeure (3.0) Replacement power during unplanned & extended plant outages 4.3 Favorab
Slide 9: Major Performance Drivers - Gas
9 Other, net Favorable weather & volume variances Rate relief Significant Variances 2007 vs. 2006 4.0 $ (2.2) 4.4 1.8 $ Q1 2007 Fav/(Unfav) Major Performance Drivers - Gas
Slide 10: Major Performance Drivers - Other
10 Major Performance Drivers - Other (50.2) $ Total EBITDA Variance (35.4) $ 2006 EBITDA from sold businesses Discontinued Operations (14.8) $ Total Continuing Operations (1.4) $ 0.4 Other, net (7.0) Legal & financial advisor fees (4.4) 2006 Reversal of Merchant bad debt allowance 9.6 $ 2006 Exit of
Slide 11: Kansas Electric Sale Net Proceeds
(3 in millions) Kansas Electric Sale Proceeds Received at Closing $ 2918 Less Working Capital Adjustments and Retained Liabilities: Accounts Receivable and Inventory 19.8 Vehicle Lease Buyouts 24 Advisor Fees - Kansas Electric 4.0 Pension Plan and Gas VEBA Funding 45 Working Capital Adjustments and
Slide 12: Deploying Asset Sales Proceeds
12 Deploying Asset Sales Proceeds
Slide 13: Strengthening Our Capital Structure
13 Strengthening Our Capital Structure ($ Millions) Reducing Interest Expense * Excludes LT Gas Improving Our Equity Ratio
Slide 14: Delivering Results
Delivering Results Rick Green Chief Executive Officer
Slide 15: Cost Recovery Key to Improving Returns
15 Cost Recovery Key to Improving Returns $5.1 MM Settlement 50% - 50% 12.0% $7.2 MM 11/2006 Kansas Gas Interim rates in effect 50% - 50% 12.0% $16.3 MM 11/2006 Nebraska Gas 47.5% - 52.5% 47.5% - 52.5% Cap Structure $24.4 MM $94.5 MM Requested 7/2006 7/2006 Filed 11.5% 11.5% ROE 6/2007 Pending Misso
Slide 16: Operational Highlights
16 Operational Highlights Industry 1st Quartile: < 1.2 interruptions * Industry 1st Quartile: < 104 minutes * Industry Target: 75% ** Objective: 97% * 2005 EEI Distribution Reliability Report (Released January 2007); **JD Powers Fewer interruptions Quicker service restoration Timely meter reading To
Slide 17: First Quarter in Review
17 First Quarter in Review Base load generation availability coupled with colder than normal weather, yielding increased fuel & purchased power costs. These costs continued to pressure our Missouri electric operations. Rate settlements & customer growth partially offset the fuel cost challenges expe
Slide 18: Questions & Answers
Questions & Answers Aquila Q1 2007 Financial Results Call