Aquila SA · EURONEXT:ALAQU
Aquila SA — Shareholder Meeting (May 2007)
19 slides from Aquila SA's shareholder meeting presentation, May 2, 2007
Slide 1: 2007 Annual Shareholder Meeting
Aquila 2007 Annual Shareholder Meeting May 2, 2007
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 In connection with the proposed merger of Aquila and a subsidiary of Great Plains Energy Incorporated, Great Plains will file with the SEC a registration statement on Form S-4, containing a joint proxy statement/ prospectus and other relevant materials.
Slide 4: Discussion Agenda
4 Discussion Agenda Shareholder Discussion Formal Meeting Business Elect Directors Ratify Auditors Utility Performance Review of Proposed Transactions Next Steps
Slide 5: Annual Meeting Business
5 Annual Meeting Business Elect Directors Ratify Auditors
Slide 6: Key Points
6 Key Points We have a tradition of strong utility operations. Our repositioning added shareholder value. Capital investment requirements continue. Proposed transactions enhance value. Dividend Investment grade company with lower risk profile Compatible growth story Synergies & tax benefits
Slide 7: Building Shareholder Value
7 Building Shareholder Value 2002 Present Closed Elwood settlement Closed Everest sale Closed Minnesota sale Closed Missouri sale Closed Michigan sale Completed debt tender Prepaid term loan Closed Kansas sale Exited non-core businesses Contracted sales of $4.6 billion of non- utility assets Termina
Slide 8: Strengthening Our Capital Structure
8 Strengthening Our Capital Structure ($ Millions) Reducing Interest Expense * Excludes LT Gas Improving Our Equity Ratio
Slide 9: Cost Recovery Key to Improving Returns
9 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 Missou
Slide 10: O&M Efficiencies Achieved to Date
10 O&M Efficiencies Achieved to Date Operating and Maintenance Expenses 2005-2007 Estimated Corporate Direct Expense Savings of $39.5 million
Slide 11: Capital Requirements Continue
11 Capital Requirements Continue
Slide 12: Operational Highlights
12 Operational Highlights Industry 1st Quartile: < 1.2 interruptions * Industry 1st Quartile: < 104 minutes * Industry Average: 75% ** Objective: 97% * 2005 EEI Distribution Reliability Report (Released January 2007); **JD Powers Fewer interruptions Quicker service restoration Timely meter reading T
Slide 13: Environmental Efforts
13 Environmental Efforts Significant investments Ongoing efforts – tire burning, bio-diesel, wind Power of Trees Program Weatherization Program
Slide 14: Proposed Transactions
14 Proposed Transactions
Slide 15: Robust Auction Process
15 Robust Auction Process 60% stock / 40% cash $4.15 - $4.60 Strategic party E 100% Stock (potential 20% cash option) $4.15 - $4.60 Strategic party D 100% Cash $4.50 Strategic party C 100% Stock $4.50 - $4.95 Strategic party B 100% Cash $4.50 - $5.00 Financial party partnering with Strategic party A
Slide 16: Auction Results
16 Auction Results Black Hills Asset Transaction BH to acquire gas utility properties in CO, IA, NE, & KS and the electric utility property in CO Asset sale consideration: $940 million in cash, subject to closing adjustments Great Plains Merger Transaction & Consideration Per ILA share: $1.80 cash +
Slide 17: Transaction Next Steps
17 Transaction Next Steps May/June 2007 File preliminary joint proxy File definitive joint proxy, including Q1 2007 financial results July/August 2007 Mail proxy, pending SEC review Shareholder vote
Slide 18: Key Points
18 Key Points We have a tradition of strong utility operations. Our repositioning added shareholder value. Capital investment requirements continue. Proposed transactions enhance value.
Slide 19: Aquila
Aquila Annual Shareholder Meeting May 2, 2007