Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Shareholder Meeting (March 2018)
13 slides from Pinnacle West Capital's shareholder meeting presentation, Mar 29, 2018
Slide 1: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as “estimate,” “predict,” “may,” “
Slide 2: Pinnacle West: Who We Are
Our Energy Sources1 Our Plants APS co-owns and operates power plants in the Southwest, with full operational control and responsibility for: Our Business Pinnacle West operates Arizona Public Service (“APS”), our principal subsidiary PINNACLE WEST: WHO WE ARE We are a vertically integrated, regulate
Slide 3: A strategy to drive value
A strategy to drive VALUE The Core is the foundation for our strategic and business initiatives Consumer Engagement Deliver value-added programs and services that derive from consumer insights and strengthen our brand for the future Flexible Resources Develop new initiatives and businesses that leve
Slide 4: Investment proposition
Investment proposition while also working to ensure Pinnacle West and Arizona have a sustainable energy future Integrating Technology to Modernize the Grid At the forefront of utilities studying and deploying advanced infrastructure to enable reliable and cost-efficient integration of emerging techn
Slide 5: Leadership and performance
Leadership and performance Transformation Our skilled management team has driven exceptional performance since taking over 2010-2017 2002-2009 Don Brandt promoted to CEO (April 2009) Strong management team including Messrs. Hatfield, Bement, Edington, Falck and Schiavoni +346.3% TSR since April 2009
Slide 6: Performance results
Performance results Consistent performance with a strong outlook for the future Dividend Growth Goal Indicated Annual Dividend Rate at Year-End3 Strong earnings performance Track-record of earnings growth Favorable rate case decision in August 2017 supports revenue generation and infrastructure inve
Slide 7: Sustainability
Sustainability APS’s vision is to create a sustainable energy future for Arizona Five critical areas of our sustainability efforts 50% of our diverse energy mix is carbon-free Plan to reduce carbon intensity by 23% over the next 15 years MSCI Environmental Sustainability and Governance A rating1 Mor
Slide 8: Shareholder Engagement
Increased the proportion of performance shares in our CEO’s and Executive Vice Presidents’ 2018 long-term incentive awards from 60% to 70% Revised 2018 metrics in certain key business units to better align with our priorities and emphasize top-quartile or above performance Adopted a formal clawback
Slide 9: Executive Compensation
EXECUTIVE Compensation Following discussions with shareholders in 2017, the Board approved several changes to further align pay and performance Note: For a detailed description of our executive compensation program and award arrangements, please see our 2018 Proxy Statement and related Form 8-Ks. Pe
Slide 10: Determining Performance Goals
Relative Long-Term Metrics Business Unit Performance Earnings Determining Performance Goals Combined rigorous pay-setting approach and performance-based program establishes strong pay and performance alignment Earnings growth impacted by base rate approved by regulators When setting 2017 goals, deci
Slide 11: Positioning for the future: Succession Planning
Structure and Performance Criteria of CEO Award Positioning for the future The Board is focused on succession planning to ensure a sustainable leadership pipeline Succession Planning Context Given our need for specialized experience, we maintain strong management succession planning practices and ar
Slide 12: 2018 Director Nominees
2018 DIRECTOR NOMINEES Our directors possess the deep and diverse skills and experience necessary to provide effective oversight on our strategy and operations Robust Lead Director Role Kathy Munro Serves as liaison between Chairman and independent directors Advises Chairman on appropriate schedule
Slide 13: 2018 Director Nominees
Our directors possess the deep and diverse skills and experience necessary to provide effective oversight on our strategy and operations 2018 DIRECTOR NOMINEES Don Brandt Kathy Munro Principal, Brdgettest, ULC Denis Cortese Rick Fox Independent Consultant Michael Gallagher Dale Klein Humberto Lopez
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