American Water Works Company, Inc. · NYSE:AWK
American Water Works — Merger or Acquisition (April 2018)
7 slides from American Water Works's merger presentation, Apr 12, 2018
Slide 1: Acquisition of Pivotal Home Solutions
Acquisition of Pivotal Home Solutions Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements April 2018 Certain statements in this presentation including, without limitation, 2018 earnings guidance, projected long-term earnings growth, the level of future capital expenditures, future dividend growth, estimates regarding the company’s projected financial condition,
Slide 3: Why the Deal Makes Sense
Why the Deal Makes Sense… Opportunistic acquisition that strengthens platform for growth Successful business at AWK for 16 years and Pivotal for 25 years Leverages core competencies Strong customer-focused culture on both sides Strengthened talent pool 2018 EPS neutral EPS accretion gradually grows
Slide 4: Homeowner Services (HOS) + Pivotal: Highly Complementary
Homeowner Services (HOS) + Pivotal : Highly Complementary HOS Pivotal Combined Contract Types * * * Includes District of Columbia
Slide 5: Financial Overview of the Deal
Financial Overview of the Deal Strong Financial Deal Purchase Price $365 million, includes ~$7 million of estimated working capital EBITDA multiple of ~7.5x Opportunistic acquisition above $8.0-$8.6 billion five year capital plan Financed ~50% equity/50% debt Equity forward provides price certainty;
Slide 6: Post Transaction: Delivering a Stronger 7-10% Target Long-Term EPS CAGR
Post Transaction: Delivering a stronger 7 – 10%* Target Long-Term EPS CAGR Affirming 2018 EPS guidance range of $3.22 - $3.32 Pivotal Transaction EPS Neutral in 2018 after certain transition costs No fundamental change to AWK risk profile Total MBB remains < 15% of EPS through 2022 * Anchored off of
Slide 7: Q&A Session
Q&A Session * AMERICAN WATER
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