Evergy, Inc. · NASDAQ:EVRG
Evergy — Monarch Energy Holding — Merger or Acquisition (September 2017)
20 slides from Evergy's merger presentation, Sep 26, 2017
Slide 1: At the Forefront of Transformation and Value Creation
Exhibit 99.1 Great Plains Energy At the Forefront of Transformation i) and Value Creation Sopp GREAT PLAINS ENERGY
Slide 2: Forward-Looking Statements
SEPTEMBER 2017 INVESTOR PRESENTATION 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 lim
Slide 3: Strategic Priorities for Value Creation
STRATEGIC PRIORITIES FOR VALUE CREATION 3 SEPTEMBER 2017 INVESTOR PRESENTATION Continue to promote the economic strength of the region, enhance the customer experience and grow earnings BEST-IN-CLASS OPERATIONS IN A GROWING SERVICE TERRITORY CUSTOMER ENGAGEMENT TARGETED INVESTMENTS Disciplined execu
Slide 4: Great Plains Energy and Westar Energy Merger of Equals
GREAT PLAINS ENERGY AND WESTAR ENERGY MERGER OF EQUALS SEPTEMBER 2017 INVESTOR PRESENTATION Combined Service Area1 Key Operating Metrics Great Plains Energy Westar Energy Combined Rate Base ($billion)2 $6.6 $6.5 $13.1 Electric Customers 860,100 701,000 1,561,100 Owned Generation Capacity (MW) 6,524
Slide 5: Compelling Strategic and Geographic Fit
COMPELLING STRATEGIC AND GEOGRAPHIC FIT SEPTEMBER 2017 INVESTOR PRESENTATION Better positioned to meet customer’s energy needs, provide clean energy and optimize investments to achieve improved long-term financial returns Increased scale and jurisdictional diversity with enhanced platform to drive v
Slide 6: Substantial Financial Benefits
Significant earnings accretion to Great Plains Energy Expect to offer top tier value proposition: EPS growth of 6% to 8%, 2016 to 20211 Dividend growth in line with EPS growth, targeting 60% to 70% payout ratio Opportunity to enhance earnings growth by leveraging strong pro forma cash flow for inves
Slide 7: Targeted Pro Forma EPS Growth
Targeted Pro Forma EPS Growth1 6%-8% CAGR STRONG PRO FORMA EARNINGS GROWTH SEPTEMBER 2017 INVESTOR PRESENTATION DRIVEN BY: Anticipated general rate case filings to reduce regulatory lag Merger savings FERC regulated transmission growth opportunities Share repurchases EPS growth based on Westar Energ
Slide 8: Targeted Pro Forma Dividend Growth
Targeted Pro Forma Dividend Growth 6%-8% CAGR STRONGER PLATFORM FOR DIVIDEND GROWTH SEPTEMBER 2017 INVESTOR PRESENTATION Initial dividend maintains Great Plains Energy’s current dividend policy Targeted annual dividend growth in line with EPS growth while targeting payout ratio of 60% to 70% Illustr
Slide 9: Significant Merger Savings
Merger Savings ($ Millions)1 O&M Cost ($ Millions)2 SIGNIFICANT MERGER SAVINGS SEPTEMBER 2017 INVESTOR PRESENTATION ~(15)% Unique combination provides maximum opportunities for efficiencies; cost savings for customers; better ability to earn allowed returns in all jurisdictions Cost savings and ongo
Slide 10: Transition Towards Sustainable Energy Portfolio
TRANSITION TOWARDS SUSTAINABLE ENERGY PORTFOLIO 2017 2018 2019 New Wind Additions1 Added 581 MW of new wind generation Plant Retirement Retired 48 MW of coal generation Plan to retire 816 MW and 720 MW of coal and natural gas generation, respectively Plan to retire 97 MW of natural gas generation SE
Slide 11: Merger Timeline Update
MERGER TIMELINE UPDATE SEPTEMBER 2017 INVESTOR PRESENTATION Approvals and Timing Stakeholder Filed Approval Anticipated Great Plains Energy and Westar Energy shareholders √ 4Q17 KCC √ 1Q18 – 2Q18 MPSC √ 1Q18 – 2Q18 FERC √ 4Q17 – 1Q18 NRC √ 4Q17 – 1Q18 U.S. DOJ/FTC (Hart-Scott-Rodino) 3Q17 – 4Q17 4Q1
Slide 12: Appendix
APPENDIX SEPTEMBER 2017 INVESTOR PRESENTATION
Slide 13: Key Terms
KEY TERMS SEPTEMBER 2017 INVESTOR PRESENTATION Transaction Structure All stock merger of equals (100% stock-for-stock tax-free exchange); combined equity value of ~$14 billion New company to be jointly named prior to close Exchange Ratio Westar Energy: 1:1 Great Plains Energy: 0.5981:1 Approximate P
Slide 14: Pro Forma Corporate Structure
PRO FORMA CORPORATE STRUCTURE SEPTEMBER 2017 INVESTOR PRESENTATION New name to be jointly determined prior to merger close. Monarch Energy Holding, Inc. 1 Kansas City Power & Light Company (KCP&L) KCP&L Greater Missouri Operations Company Westar Energy, Inc. Great Plains Energy Other Subsidiaries We
Slide 15: Strengthened Credit Profile
STRENGTHENED CREDIT PROFILE SEPTEMBER 2017 INVESTOR PRESENTATION Merger of equals structure with no merger-related debt results in a strengthened credit profile and positive rating agency action Moody’s upgraded Great Plains Energy to Baa2 from Baa3 with stable outlook S&P affirmed ratings of BBB an
Slide 16: State Commissioners
STATE COMMISSIONERS SEPTEMBER 2017 INVESTOR PRESENTATION 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: Mar
Slide 17: Serving a Growing Region
SERVING A GROWING REGION YTD July 30 Housing Permits Jobs numbers are up: 73 consecutive months of job growth through July 2017 Unemployment numbers are down: Unemployment rate of 4.3% in July 2017 compared with 5.0% in 2016 Employment Figures 10% Improving residential real estate and jobs market le
Slide 18: Transource Energy, LLC
TRANSOURCE ENERGY, LLC SEPTEMBER 2017 INVESTOR PRESENTATION Joint venture between Great Plains Energy (13.5%) and AEP (86.5%) structured to pursue competitive transmission projects1 Total project portfolio over $600 million Positioned for sustainable, long-term growth in competitive transmission mar
Slide 19: Additional Information
ADDITIONAL INFORMATION SEPTEMBER 2017 INVESTOR PRESENTATION Additional Information and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxy, vote or approval, nor shall there be any sale of secur
Slide 20: Investor Relations Information
INVESTOR RELATIONS INFORMATION SEPTEMBER 2017 INVESTOR PRESENTATION 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 (
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