American States Water Company · NYSE:AWR
American States Water — Shareholder Meeting (April 2025)
23 slides from American States Water's shareholder meeting presentation, Apr 21, 2025
Slide 1: April 2025 Stockholder Outreach
April 2025 Stockholder Outreach NYSE: AWR
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as “anticipate,” “estimate,” “expect,” “intend,” “may,” “should,” “growing,” “a
Slide 3: Non-GAAP Financial Measures
This presentation includes a discussion of certain financial measures that are not prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States, and constitute "non-GAAP financial measures" under SEC rules. These non-GAAP financial measures are derived from consol
Slide 4: Corporate Profile
Corporate Profile AWR is a low volatility water utility with a secure and growing dividend, operating in a constructive regulatory environment in California, along with a growing unregulated contracted services business serving military bases under 50-year contracts Listed on the NYSE: AWR AWR debt
Slide 5: Company Organizational Structure
American States Water Company (AWR) Investor-owned public utility holding company 100% owner of subsidiaries $3.17 earnings per share (EPS) in 2024 Regulated water utility services: 264,600 customer connections in California Golden State Water Company $2.51 per share of 2024 AWR EPS (or 79.2%) Regul
Slide 6: 2024 Financial Highlights
2024 Financial Highlights Reported earnings per share (EPS) for 2024 were $3.17, compared to $3.36 per share recorded for 2023. When compared against adjusted earnings of $2.85 for 2023, EPS increased by $0.32, or 11.2%, primarily driven by rate increases in both the water and electric utilities, an
Slide 7: Long-Term Performance
For the 10-year period ended December 31, 2024, the company has achieved: a compound annual growth rate (CAGR) of 7.3% in its recorded consolidated diluted earnings per share (EPS); and an 8.0% CAGR in its calendar year dividend payments. Over the past five years, the company also achieved: a 6.8% C
Slide 8: Key Developments in 2024
Key Developments in 2024 Water utility general rate case sets new rates for 2025-2027 (received a 38.4% increase in authorized capital investments compared to the last rate cycle). Electric utility general rate case sets new rates for 2023-2026, retroactive to January 1, 2023 (adopted an ROE of 10.0
Slide 9: Key Developments in 2024 (cont.)
Key Developments in 2024 (cont.) Our contracted services subsidiary, ASUS, commenced operations of the water and wastewater systems at two new military bases in April 2024 contributing to ASUS’s earnings in 2024 Naval Air Station Patuxent River (with a contract value of $378 million over 50 years),
Slide 10: Governance Practices Promote Long-Term Focus and Strengthen Accountability
Governance Practices Promote Long-Term Focus and Strengthen Accountability 09 AWR has a “1” rating on Governance from ISS Board Chairman and CEO positions are separated All independent directors except CEO No poison pill AWR received a “For” recommendation on its “Say on Pay” ballot measure for 2025
Slide 11: Environmental Stewardship
Environmental Stewardship We have a sustainability oversight management team, which is responsible for the policies and operational controls of environmental, health, safety and social risks. The nominating and governance committee has oversight responsibilities for our environmental, social and gov
Slide 12: Compensation Philosophy and Design Overview
Compensation Philosophy and Design Overview 4 Principles Compensation Committee annually assesses compensation peer group with independent consultant Compensation peer group reflects reasonably sized peers in relevant industries (utility industry) to establish compensation levels and consistent plan
Slide 13: 75% of CEO's Compensation is at Risk
75% of CEO’s target total direct compensation is at risk, consisting of an annual incentive cash award, and equity awards that are time-vested (RSU) and performance-based (PSU) 75% of CEO’s long-term incentives are tied to performance measures (PSUs) PSU goals for the CEO are based on three-year obj
Slide 14: Executive Compensation Program Designed with Shareholder, Regulator, and Customer Considerations
Annual and long-term incentive goals tailored for each executive officer depending on role Annual incentive (CEO) 60% based on profitability and capital expenditures 20% based on customer complaints, supplier diversity and compliance 20% based on individual performance Long-term incentives (CEO) 19%
Slide 15: Compensation Philosophy and Design Overview (cont.)
Compensation Committee conducts an annual assessment of whether the company’s executive or broad-based compensation programs encourage excessive risk taking Shareholder and customer interests are balanced by weighting a portion of total direct compensation to the achievement of a mix of performance
Slide 16: List of Compensation Peers
W G E P O E E G W E G P O W G E E G G E G E O W List of Compensation Peers ALLETE, Inc. Owing to the limited number of similarly sized highly regulated water utilities (with annual revenues between $100 million and $2.2 billion), a group of utilities was selected as our current peer group based on s
Slide 17: List of Water Utility Peers
List of Water Utility Peers American Water Works Company, Inc. Essential Utilities, Inc. California Water Service Group SJW Group Middlesex Water Company The York Water Company Artesian Resources Corporation $24,262 $9,974 $2,696 $1,637 $940 $470 $325 Presented to the left is a list of the 7 publicl
Slide 18: Peer Comparisons
Peer Comparisons 64 57 91 100 91 100 91 100 91 100 100 50 0 EPS Growth ROE ROIC ROA MC to BV The company’s financial and operational success can also be measured on a relative basis by comparing the company’s performance to that of peer companies. Due to the limited number of public water utility co
Slide 19: Peer Comparisons (cont.)
Peer Comparisons (cont.) -15% -10% -5% 0% 5% 10% 15% 27 55 73 73 3-Yr 5-Yr 7-Yr 10-Yr 100 86 86 71 3-Yr 5-Yr 7-Yr 10-Yr AWR Percentile Rank TSR Percentile Performance vs Peer Groups (25th to 75th percentiles) Compensation Peer Group Water Utility Peer Group Compensation Peer Group Water Utility Peer
Slide 20: Executive Compensation Practices At a Glance
Executive Compensation Practices At a Glance Pay for Performance Absolute and Relative: We link pay to performance and shareholder and customer interests by weighting a portion of total direct compensation to the achievement of a balanced mix of performance metrics, both internal and relative to our
Slide 21: We Ask for Your Vote at Our Annual Meeting
To elect the nominated directors to the Board of Directors; 01 Advisory vote to approve the compensation of our named executive officers; and To ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm. We Ask for Your Vote at Our Annual Meeting 02 03
Slide 22: Computations and Reconciliations of Non-GAAP Financial Measures
Computations and Reconciliations of Non-GAAP Financial Measures Below are the computations and reconciliations of diluted earnings per share from the measure of net income (loss) by business segment to AWR’s consolidated diluted earnings per share for the year ended December 31, 2024 (as disclosed i
Slide 23: American States Water Company
http://www.aswater.com oe*. American States 8. Water Company
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