Allied Waste Industries — Merger or Acquisition (September 2008)
20 slides from Allied Waste Industries's merger presentation, Sep 16, 2008
Slide 1: Allied Waste Industries Investor Presentation
Allied Waste Industries ¥ Investor Presentation September 2008 ALLIED WASTE Sa:
Slide 2: Discussion of Forward-Looking Statements
Discussion of Forward-Looking Statements Information Regarding Forward-Looking Statements Certain statements and information included within this presentation, as it relates to Allied Waste and/or its proposed merger with Republic Services, constitute “forward-looking statements” within the meaning
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It This communication is being made in respect of the proposed business combination involving Republic and Allied. In connection with the proposed transaction, Republic filed with the SEC a Registration Statement on Form S-4 containing a Joint Proxy Statement
Slide 4: Presentation Agenda
Presentation Agenda Company profile and competitive strengths Successfully rebuilt operating and financial performance Historical actions and impacts Gains reflected in financial results Update on proposed merger of Allied Waste and Republic Services
Slide 5: Profile of Allied Waste
Profile of Allied Waste 2nd largest non-hazardous solid waste company in the US Operations span 122 markets across 38 states and Puerto Rico Vertically integrated, providing collection, transfer, recycling and disposal services through a network of: 291 collection companies 161 transfer stations 158
Slide 6: Strong Position in Major U.S. Markets
Strong Position in Major U.S. Markets
Slide 7: Diversified Operations Provide Stable Revenues and Cash Flow
Diversified Operations Provide Stable Revenues and Cash Flow Revenue by Region Revenue by Line of Business Other Recycling-Recycling- Collection 2% Commodity 3% 4% East Other Commercial West 27% 5% 26% 26% Transfer 7% Landfill 14% Midwest Roll-off South 21% 23% 22% Residential 20% · Based on 2007 Re
Slide 8: Expertise in Developing Landfill Capacity
Expertise in Developing Landfill Capacity Approximately 57% of waste Landfill Capacity (millions of tons) generated in the U.S. is 3,500 disposed of in landfills Permitted Probable Greenfield development of a 3,000 new landfill can require 10 or more years before a site is 2,500 operational 2,000 Cu
Slide 9: The Rebuilt Strength of Allied Waste
The Rebuilt Strength of Allied Waste
Slide 10: Demonstrated Gains in Business Performance
Demonstrated Gains in Business Performance Change in Price (includes fuel recovery fee) Improved operating results 7.0% 6.5% AW Integrated best practices 6.0% Consistent investment in the business 5.5% Building durable capabilities in the 5.0% organization RSG 4.5% Centralized pricing focused on 4.0
Slide 11: Merger Review and Update
Merger Review and Update
Slide 12: Compelling Merger Rationale
Compelling Merger Rationale National scope and scale, with stronger growth platform Improved vertical integration through large network of landfills Complementary geographies, assets and cultures, with shared commitment to customer service Significant corporate and operational synergies Approximatel
Slide 13: National Footprint
National Footprint Approximately 54% of Revenue from Sun Belt States
Slide 14: Well-Diversified in Customers, Revenue Mix and Geography
Well-Diversified in Customers, Revenue Mix and Geography Republic Pro Forma Recycling Other Transfer & 7% 3% Recycling Other Disposal Permanent 18% 4% Roll-Off 7% Transfer & 13%Disposal Permanent C & D 20% 7% Roll-Off 14% Commercial Residential 28% C & D 24% 7% $3.2 billion Allied Recycling Other 7%
Slide 15: Targeting $150+ Million in Synergies
Targeting $150+ Million in Synergies Approximately $75 million of Approximately $75 million of savings from SG&A savings from field operations Corporate Phase 1 focus Close RSG headquarters and Internalize volumes currently integrate operations in Phoenix delivered to third-party landfills Field Ope
Slide 16: Commitment to Seamless Integration
Commitment to Seamless Integration Integration planning already well underway Outside consultant retained to facilitate and measure results 17 integration teams comprised of functional experts from both companies are already working Focus on maintaining high level of customer service Process will be
Slide 17: Additional Opportunities to Drive Value
Additional Opportunities to Drive Value National accounts Merger strengthens operating platform and value equation National account market estimated at $3 billion Purchasing and maintenance Combined company will have annual capital expenditures of over $1 billion that can be impacted through central
Slide 18: Timeline to Merger Close
Timeline to Merger Close Department of Justice Review Received DOJ second request on Aug 23 Targeting mid-September response by company DOJ has 30 days to issue a decision or request an extension Initial SEC comments on proxy statement have been received Company response has been filed for review Co
Slide 19: Merger Creates Unique Benefits for All Stakeholders
Merger Creates Unique Benefits for All Stakeholders Shareholder Benefits Significant achievable cost synergies Strengthens vertical integration Improved capital structure with investment grade credit rating Dividend policy and cash return strategy Customer Benefits Unmatched customer service Greater
Slide 20: Questions and Answers
A \Xue “Questions and Answers ALLIED WASTE
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