Great Plains Energy Incorporated
Great Plains Energy — Merger or Acquisition (January 2018)
27 slides from Great Plains Energy's merger presentation, Jan 10, 2018
Slide 1: Merger to Form Leading Energy Company
MERGER TO FORM LEADING ENERGY COMPANY January 2018 Investor Update Exhibit 99.1
Slide 2: Forward-Looking Statements
January 2018 Investor Update Forward-Looking Statements 2 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,
Slide 3: Recent Focus
January 2018 Investor Update Recent Focus • Merger Approval Update Shareholder Approval – overwhelming support with more than 90 percent of shares voted in favor at each company – November 2017 Received HSR antitrust clearance – December 2017 • Ryan A. Silvey confirmed as Missouri Public Service
Slide 4: Merger Overview
Merger Overview i
Slide 5: Creating A Leading Energy Company
January 2018 Investor Update Creating A Leading Energy Company 5 Merger Drives Value For All Stakeholders Expect to deliver exceptional value through attractive earnings and dividend growth Serving customers and communities with reliable service, clean energy, and fewer and lower rate increases Main
Slide 6: Merger Of Equals
January 2018 Investor Update Merger Of Equals • Creates a leading energy company with a combined equity value of ~$14.5 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 exchang
Slide 7: Stronger Platform For Earnings Growth
January 2018 Investor Update Stronger Platform For Earnings Growth 7 $3.25 [VALUE] [VALUE] 2016A Pro Forma 2021E Targeted Pro Forma EPS Growth1 6%-8% CAGR 1. EPS growth based on Westar Energy 2016 actual EPS of $2.43. Driven by the Following Assumptions: • Merger savings • FERC regulated transmissio
Slide 8: Stronger Platform For Dividend Growth
January 2018 Investor Update Stronger Platform For Dividend Growth 8 $2.19 [VALUE] [VALUE] Pro Forma 2018E Pro Forma 2021E Targeted Pro Forma Dividend Growth 6%-8% CAGR • Initial dividend results in 15% increase for Westar’s shareholders • Initial dividend maintains Great Plains Energy’s current div
Slide 9: Strong Platform For Merger Savings
January 2018 Investor Update Strong Platform For Merger Savings 9 2018E 2019E 2020E 2021E $110.3 $143.5 $149.4 $27.8 Targeted Merger Savings ($mm)1 2016A 2021E Great Plains Energy Westar Pro Forma $1,367 ~$1,100 – $1,200 Targeted O&M Cost Reductions ($mm)2 ~(15%) • Combination provides maximum oppor
Slide 10: Merger investment case: earnings, dividend and rate base growth
January 2018 Investor Update • 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 growth, 60% to
Slide 11: Strong Credit with Capacity for Share Repurchases
January 2018 Investor Update Strong Credit with Capacity for Share Repurchases • Great Plains Energy completed unwind of prior debt and mandatory convertible preferred equity acquisition financing following July 2017 merger of equals announcement • Merger of equals structure with no merger debt resu
Slide 12: Merger Expected To Close Second Quarter of 2018
January 2018 Investor Update Merger Expected To Close Second Quarter of 2018 12 Stakeholder Filed Approval Anticipated Additional Information GXP and WR shareholders Approved November 21, 2017 KCC 2Q18 Docket: 18-KCPE-095-MER MPSC 2Q18 Docket: EM-208-0012 FERC 1Q18 – 2Q18 Docket: EC-171-00
Slide 13: State Merger Procedural Schedules
January 2018 Investor Update State Merger Procedural Schedules 13 Key Dates (2018) Kansas Corporation Commission Missouri Public Service Commission1 January 16 Rebuttal Testimony Due January 22 Public Hearing January 29 Staff/Intervenor Direct Testimony Due February 19 Rebuttal Testimony Due Februar
Slide 14: Regulatory and Legislative Priorities
Regulatory and Legislative Priorities
Slide 15: Regulatory Initiatives
January 2018 Investor Update Regulatory Initiatives Westar General Rate Review Considerations: • Western Plains Wind Farm • Expiration of wholesale contracts currently reflected in rates as offsets to retail cost of service • Expiring production tax credits from initial wind investments • Federal in
Slide 16: Constructive Ratemaking Cost Recovery Mechanisms
January 2018 Investor Update Constructive Ratemaking 16 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
Slide 17: State Commissioners
January 2018 Investor Update State Commissioners 17 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 20
Slide 18: Clean Energy Leader
Clean Energy Leader a
Slide 19: Sustainable Energy Portfolio
January 2018 Investor Update Sustainable Energy Portfolio • Combined wind portfolio will be one of the largest in the United States: ~3,200 MW1 • Renewable energy ~30% of retail sales Emission-free energy (renewable and nuclear) nearly half of retail sales • Well ahead of renewable portfolio standa
Slide 20: Appendix
Appendix i
Slide 21: Projected Merger Savings
January 2018 Investor Update Projected Merger Savings 21 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 Efficie
Slide 22: Creating a Leading Midwest Energy Utility
January 2018 Investor Update Creating a Leading Midwest Energy Utility 22 Source: Company filings, investor presentations, Bloomberg market data as of 12/29/2017. $14.3 $14.3 $12.2 $8.6 $9.9 $9.5 $9.5 $8.1 $5.7 $7.5 $6.6 $6.9 $22.6 $21.1 $19.6 $17.3 $14.9 $14.5 $13.1 $12.7 $12.5 $11.4 $9.8 $9.8 Comb
Slide 23: Compelling Strategic and Geographic Fit
January 2018 Investor Update Compelling Strategic and Geographic Fit 23 • 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 va
Slide 24: Pro Forma Corporate Structure
January 2018 Investor Update Pro Forma Corporate Structure 24 NewCo1 Kansas City Power & Light KCP&L Greater Missouri Operations Great Plains Energy Other Subsidiaries Westar Energy Westar Subsidiaries, notably, KG&E 1. NewCo and operating utilities will be rebranded, with study underway.
Slide 25: Pro Forma Executive Officer Team
January 2018 Investor Update Pro Forma Executive Officer Team President & CEO Terry Bassham EVP Chief Operating Officer Kevin Bryant EVP Strategy & Chief Administrative Officer Greg Greenwood EVP Chief Financial Officer Tony Somma SVP Chief People Officer Jerl Banning SVP Marketing, Public Affairs &
Slide 26: Key Terms
January 2018 Investor Update Key Terms 26 Transaction Structure • All stock merger of equals (100% stock-for-stock tax-free exchange); combined equity value of ~$14.51 billion • New company to be jointly named prior to close Exchange Ratio • Westar Energy: 1:1 • Great Plains Energy: 0.5981:1 Approxi
Slide 27: Investor Relations Information
January 2018 Investor Update Investor Relations Information 27 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)
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