California Water Service Group · NYSE:CWT
California Water Service — Shareholder Meeting (May 2024)
23 slides from California Water Service's shareholder meeting presentation, May 29, 2024
Slide 1: Best and Brightest: 2024 Annual Stockholders Meeting
Best and Brightest 2024 Annual Stockholders Meeting May 29, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("Act"). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" tr
Slide 3: Marty Kropelnicki, Chairman of the Board
Marty Kropelnicki Chairman of the Board
Slide 4: Meeting Agenda
Meeting Agenda • Welcome • Voting matters • Proposal 1: Election of Directors • Proposal 2: Advisory vote on executive compensation • Proposal 3: Ratification of Deloitte & Touche LLP as independent auditors for 2024 • Proposal 4: Approval of Group’s 2024 Equity Incentive Plan • Inspector of Electio
Slide 5: Directors with Diverse Backgrounds
Directors with Diverse Backgrounds Scott L. Morris Charles R. Patton Jeffrey Kightlinger Gregory E. Aliff Shelly M. Esque Thomas M. Krummel, M.D. Lead Independent Director Former Executive Vice President, Principal and Owner of Acequia Former Vice Chairman and Former Vice President and Emile Homan a
Slide 6: 2024 Annual Meeting of Stockholders
2024 Annual Meeting of Stockholders 5
Slide 7: Chairman and CEO Presentation
Chairman and CEO Presentation 6
Slide 8: Our Mission, Purpose and Operating Imperatives
Our Mission: to be the leading provider of sustainable water and wastewater services Our Purpose: To enhance the quality of life for our customers, communities, employees, and stockholders Our Operating Imperatives: • Affordable and excellent service • Sustainability and community impact • Public he
Slide 9: Business At-A-Glance
Business At-A-Glance OPERATIONS PEOPLE • Serving California, • 1,266 Employees Washington, Hawaii, New • Serving 2.1+ million people Mexico, and Texas • 556,000+ service connections • 250 water quality standards • Contributing $1.5+ million annually to met/surpassed per year community organizations
Slide 10: 2023 Highlights
2023 Highlights • Officer Lineup • Execution in core business • Support for customers & communities • ESG progress • Financial performance • Steady growth 9
Slide 11: Leadership Team
Leadership Team Shawn Bunting Jim Lynch Shilen Patel Shannon Dean Sophie James Ken Jenkins SVP, General Counsel & SVP, CFO & Treasurer Chief Business SVP, Customer Service & VP, Water Quality & Chief Water Resource Business Development Development Officer Chief Sustainability Officer Environmental A
Slide 12: Successful Execution in Core Business in 2023
Successful Execution in Core Business in 2023 • Invested $383.7 million in water system infrastructure including: • 26 water quality treatment plants • 16 panel boards and generators • 91 storage tanks and tank-related projects • 159,822 feet of water mains replaced • Established a multifunctional t
Slide 13: Recognition Highlights
Recognition Highlights Our greatest reward is fulfilling our mission, but we want to highlight some of the recognition we received during 2023. These awards wouldn’t be possible without the dedication and hard work of our employee team throughout our organization. 12
Slide 14: Support for Customers & Communities
Support for Customers & Communities Contributed Helped customers Secured $4.3 Led 19 community $1.56 million receive more than million in grants emergency to charitable $2 million from to minimize rate response exercises organizations the state and federal impacts of critical for first responders wo
Slide 15: ESG Progress
ESG Progress We invested more We committed to a We completed a We provided Increased than $4.4 million science-aligned Scope targeted Water unconscious spending in water 1 and 2 greenhouse Supply Reliability bias training to with diverse conservation gas emissions Study. 95+% of our suppliers to reb
Slide 16: Financial Performance
Financial Performance Lack of timely decision from the California Public Utilities Commission on our 2021 General Rate Case (GRC) precluded us from recovering significant costs we incurred while providing safe, reliable water services. Nevertheless, in 2023, we: • Increased annual dividend by 4.0%,
Slide 17: 2023 Financial Results
2023 Financial Results (Given the delay in regulatory approval of Cal Water’s 2021 GRC) YTD YTD (Amounts are in millions, except for EPS) Variance Dec 31, 2022 Dec 31, 2023 Operating Revenue $846.4 $794.6 (6.1%) Operating Expenses $718.8 $717.5 (0.2%) Net Interest Expense $44.3 $49.8 12.4% Net Incom
Slide 18: CWT 20-Year Total Return on Investment
CWT 20-Year Total Return on Investment On $100 stock purchase on Jan. 1, 2004, with dividends reinvested CWT – Total Return 535.1% S&P 500 – Total Return 533.8% 17
Slide 19: Capital Investment and Depreciation
Capital Investment and Depreciation (in millions) Capital Investment Depreciation $450 2015-2023 TOTAL CAGR = 9.87% $384 $400 CapEx $365 $350 $328 $300 3x DEPRECIATION $259 $272 $274 $299 $293 $250 $229 $200 $177 $150 $131 $118 $116 $100 $109 $121 $133 $115 $89 $99 $84 $50 $77 $61 $61 $64 $55 $58 $0
Slide 20: Estimated Regulated Rate Base of CWT
Estimated Regulated Rate Base of CWT (in billions) $3.0 $2.76 $2.50 $2.5 CAGR = 11.22% $2.25 $1.95 $2.0 $1.82 $1.61 $1.5 $1.26 $1.24 $1.06 $1.12 $1.0 $0.5 $0.0 2016 2017 2018 2019 2020 2021 2022 *2023 *2024 *2025 *2023-2025 Rate Base Estimates include filed proposal in 2021 California General Rate C
Slide 21: Our Priorities for 2024
Our Priorities for 2024 • Implement the 2021 GRC approved in March 2024 • Continue moving forward with our infrastructure improvement plan and filing the 2024 California GRC • Continue to execute to our core business strategy • Continue emergency response planning, including wildfire readiness • Com
Slide 22: Questions?
Questions? 21
Slide 23: This concludes the 96th Annual Meeting of Stockholders
This concludes the 96th Annual Meeting of Stockholders May 29, 2024
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