Republic Services, Inc. · NYSE:RSG
Republic Services — Merger or Acquisition (June 2008)
16 slides from Republic Services's merger presentation, Jun 23, 2008
Slide 1: Creating an Environmental Services Leader
Creating an Environmental Services Leader June 23, 2008
Slide 2: Discussion of Forward-Looking Statements
Discussion of Forward-Looking Statements Information Regarding Forward-Looking Statements Certain statements and information included herein constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995 these forward-looking statements are
Slide 3: Compelling Strategic and Financial Merger Rationale
Compelling Strategic and Financial Merger Rationale National scope and scale, with stronger platform for profitable growth Improved vertical integration through large network of landfills Complementary geographies, assets and cultures, with shared commitment to customer service Significant corporate
Slide 4: Snapshot of the Combined Company
Snapshot of the Combined Company 1 1 Combined (pro forma) Assets Landfill 58 161 219 Transfer 94 161 255 Collection 136 291 427 Recycling 33 53 86 Employees 13,000 23,000 36,000 Revenue $3.2 billion $6.1 billion $9.3 billion Name: Republic Services HQ: Phoenix Ticker: RSG Board: 11 directors; five f
Slide 5: Transaction Overview
Transaction Overview Transaction: Friendly, negotiated merger of Republic Services and Allied Waste Consideration: 100% stock Exchange Ratio: 0.45 shares of Republic Services stock per share of Allied Waste stock Synergies: $150mm run rate operating synergies achieved by year 3 Anticipated Closing:
Slide 6: Well-Diversified in Customers, Revenue Mix and Geography
Other Transfer & Disposal Commercial Residential C & D Permanent Roll-Off Recycling 0.04 0.2 0.27 0.21 0.07 0.14 0.07 Commercial Roll-off Residential Transfer & Disposal Other Recycling Residential 0.26 0.21 0.2 0.21 0.05 0.07 Other Transfer & Disposal Commercial Residential C & D Permanent Roll-Off
Slide 7: #2 Waste Management Company by Revenue
value WCA 0.2 Waste Industries 0.3 Waste Services 0.5 Casella Waste 0.6 BFI Canada 0.9 Waste Connection 1.1 Waste Connections 1 Republic Services 3.2 Allied Waste 6.1 Waste Management 11.8 1.5 #2 Waste Management Company by Revenue value value WCA Waste 0.2 Waste Industries 0.3 Waste Services 0.5 Ca
Slide 8: National Footprint
National Footprint Approximately 54% of Revenue from Sun Belt States Headquarters - Phoenix, AZ
Slide 9: Driving Shareholder Value
Driving Shareholder Value Customers Employees Shareholders Establish service standards Employ best practices Strive to continually improve business processes Provide a challenging environment that fosters an entrepreneurial spirit Foster a team setting that rewards individuals for team achievements
Slide 10: Creating Long-Term Financial Benefits
Creating Long-Term Financial Benefits Approximately $150 million in annual net operating synergies Attractive dividend policy Strong capital structure, with indicative investment grade status Accretive to both EPS and CFPS
Slide 11: Approximately $150 million in Achievable Cost Synergies
Approximately $150 million in Achievable Cost Synergies
Slide 12: Strong Cash Flow Provides Financial Flexibility
Strong Cash Flow Provides Financial Flexibility Dividend policy Maintain Current Dividend Policy Future moderate increases will be considered Invest for internal growth Most efficient means to growth Debt reduction Maintain strong capital structure Republic will maintain its consistent balanced, con
Slide 13: Commitment to Seamless Integration
Commitment to Seamless Integration Focus on maintaining high level of customer service Integration plan has been and will be a collaborative effort Process will be completed in a timely manner Result will be "best people, best practices" Management Safety Procurement and purchasing Repair and mainte
Slide 14: Merger Creates Unique Benefits for All Stakeholders
Merger Creates Unique Benefits for All Stakeholders Shareholder Benefits Significant achievable cost synergies Accelerate ability to meet strategic objectives Optimal capital structure with investment grade credit rating Attractive dividend policy Customer Benefits Unmatched customer service Greater
Slide 15: Creating an Environmental Services Leader
Creating an Environmental Services Leader June 23, 2008
Slide 16: Additional Information and Where to Find It
Additional Information and Where to Find It This communication is being made in respect of the proposed business combination involving Republic and Allied. In connection with the proposed transaction, Republic plans to file with the SEC a Registration Statement on Form S-4 containing a Joint Proxy S
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