Quanta Services, Inc. · NYSE:PWR
Quanta Services — Merger or Acquisition (September 2021)
29 slides from Quanta Services's merger presentation, Sep 2, 2021
Slide 1: Creating An Industry-Leading Energy Transition and Renewable Energy Solutions Platform
To Acquire Creating An Industry-Leading Energy Transition and Renewable Energy Solutions Platform Investor Investor Presentation Presentation Date, 2021 September 2, 2021
Slide 2: Notice to Investors
NOTICE TO INVESTORS This presentation (and oral statements regarding the subject matter of this presentation) includes forward-looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking stat
Slide 3: Introduction
INTRODUCTION Conference Call Hosts Duke Austin – President & Chief Executive Officer Derrick Jensen – Chief Financial Officer Jayshree Desai – Chief Corporate Development Officer Conference Call Agenda • Introduction • Strategic Rationale • Blattner Company and Industry Overview • Transaction Summar
Slide 4: Strategic Rationale
STRATEGIC RATIONALE Premium Solutions Provider to the Renewable Energy Industry With A Market Leading Position & Attractive Financial Profile 1 Enhanced alignment with energy transition trends and access to the attractive wind, solar and energy storage markets, which are poised for significant decad
Slide 5: Blattner Company Overview
BLATTNEBFI COMPANY OVERVIEW wan ona
Slide 6: Blattner Company Overview
BLATTNER COMPANY OVERVIEW Leading and Premier Partner for Renewable Energy Projects • Headquartered in Avon, MN, owned and operated by the Blattner Family since its founding in 1907 • Entered the renewable energy market in 1997 and became 100% renewable energy focused in 2006 • Blattner Company is t
Slide 7: Blattner ESG Alignment
BLATTNER ESG ALIGNMENT Strong Alignment That Enhances Quanta’s Already Favorable ESG Profile • Quanta and Blattner have strong ESG alignment and we believe Blattner’s pure play profile of building renewable energy projects will enhance Quanta’s already favorable ESG profile United Nations Commitment
Slide 8: Access to Large and Growing Renewables Market
ACCESS TO LARGE AND GROWING RENEWABLES MARKET The U.S. Renewables Market is Poised for Decades-Long Growth Supported by Macro Trends in Respect of De-carbonization, Electrification and Levelized Cost of Energy Wind and Solar Generation Capacity Additions(1) U.S. Electricity Generation from Selected
Slide 9: Blattner - Market Leader & Premier Partner
BLATTNER - MARKET LEADER & PREMIER PARTNER Key Operating Segments Overview Blattner typically performs work on a portfolio of 30-40 projects per year Wind(2) Solar Storage(3) # of Projects(1) +90 17 +300 2020 Total Revenue = $2.4 Billion (all time) 100% from Repeat Customers MWs Installed(1) +12,200
Slide 10: Market Leading Renewables Solutions Platform
MARKET LEADING RENEWABLES SOLUTIONS PLATFORM Extensive Renewables Experience & Diversification Across Technology and Geography Top Wind GW by State(1) Top Solar GW by State(2) 16.6 3.7 3.6 5.9 3.8 3.4 2.9 Headquarters Wind Projects 0.9 0.6 0.5 Solar Projects Storage Projects TX OK CA IA OR CA TX GA
Slide 11: Deep Relationships with Leading Renewables Developers
DEEP RELATIONSHIPS WITH LEADING RENEWABLES DEVELOPERS Blattner Has Strong & Longstanding Relationships That Have Driven Repeat Business Select Customers Revenues from Repeat Customers 94% 100% 96% 100% Wind 80% 60% Solar 40% 20% 0% 2019A 2020A 2021E Storage Repeat Customer Revenue Page 11
Slide 12: Complementary Infrastructure Solutions
COMPLEMENTARY INFRASTRUCTURE SOLUTIONS Comprehensive Solutions That Enable Energy Transition and A Carbon Neutral Economy Electric Power Renewables Storm Energized EV Front-End Utility Scale Utility Scale Utility Scale Transmission Substation Distribution Restoration Services Infrastructure Services
Slide 13: Uniquely Positioned for Utility & Renewable Investment
UNIQUELY POSITIONED FOR UTILITY & RENEWABLE INVESTMENT Regulated Utilities Are In Early Stages of Growing Their Renewable Generation Investments $59B Capital Plan Focused On Clean Energy Transition Capital Plan: 2021-2025 (2021-2025) $37 Billion • Evercore ISI Research estimates that ~20% of utility
Slide 14: Transaction Summary & Financial Overview
TRANSACTION SUMMARY & FINANCIAL OVERVIEW Page 14
Slide 15: Transaction Summary
TRANSACTION SUMMARY Will Create Industry Leading Energy Transition and Renewable Energy Infrastructure Solutions Platform • Upfront purchase price of $2.7 billion, subject to closing adjustment, plus three-year earn-out of up to $300 million Transaction • Approximately $2.36 billion in cash and 3.3
Slide 16: Blattner Historical and Estimated and Quanta Pro Forma Financial Summary
BLATTNER HISTORICAL AND ESTIMATED AND QUANTA PRO FORMA FINANCIAL SUMMARY Strong Growth, Profitability, and Backlog Revenues EBITDA(1) 2020 Pro Forma FYE 2020 Pro Forma +20% +50% $mm CAGR $mm CAGR Revenues = $13.6B Backlog(1) = $17.0B $2,500-$2,700 $300-$330 $2,376 $291 11% $1,781 18% $133 57% 65% 24
Slide 17: 2022 Financial Expectations
2022 FINANCIAL EXPECTATIONS Meaningful Contribution to Revenue, Adjusted EBITDA and Adjusted Earnings Per Share 2022 Guidance Range Low Mid High Est. Revenues ($ B) $2.5 $2.6 $2.7 Est. Adjusted $250 $270 $290 EBITDA(1) ($ MM) Est. Adj. EPS Contribution(1) (Not $0.80 $0.90 $1.00 Accretion) (1) Refer
Slide 18: Multi-Year Expectations
MULTI-YEAR EXPECTATIONS Significant Growth and Financial Contribution Opportunity • Quanta and Blattner believe there is significant opportunity for growth over the near and longer-term, which could provide meaningful incremental financial contributions to Quanta • Quanta has made prudent assumption
Slide 19: Why Blattner Is a Great Fit for Quanta
WHY BLATTNER IS A GREAT FIT FOR QUANTA Blattner is Strongly Aligned with Quanta’s Strategies for Sustainable Success • Enhances alignment with energy transition trends and access to renewable energy markets, which are poised for significant growth Compelling • Gives Quanta a leading infrastructure s
Slide 20: Connect With Quanta Services Investor Relations
Connect With Quanta Services Investor Relations @QuantaIR QuantaServicesIR Investor Contact Corporate Office Kip Rupp, CFA, IRC 2800 Post Oak Blvd., Suite 2600 Vice President – Investor Relations Houston, TX 77056 713-341-7260 713-629-7600 investors@quantaservices.com www.quantaservices.com Page 20
Slide 21: Appendix
APPENDIX @® srarTNeAl Page 21 wo ene
Slide 22: Blattner Media Announcement
BLATTNER MEDIA ANNOUNCEMENT Page 22
Slide 23: Reconciliation Tables and Forward-Looking Statement Disclaimers
APPENDIX RECONCILIATION TABLES AND FORWARD-LOOKING STATEMENT DISCLAIMERS
Slide 24: Reconciliation of Non-GAAP Financial Measures: EBITDA and Adjusted EBITDA
Quanta Services, Inc. and Blattner Holding Company RECONCILIATION OF NON-GAAP FINANCIAL MEASURES EBITDA AND ADJUSTED EBITDA {in thousands) (Unaudited) Year Ended December 31, 2020 Pro Forma Quanta Blattner Combined Net income from continuing operations attributable to common stock (as defined by GAA
Slide 25: Blattner Reconciliation of EBITDA
Blattner Holding Company RECONCILIATION OF NON-GAAP FINANCIAL MEASURE EBITDA (in thousands) (Unaudited) Year Ended December 31, 2019 2020 Net income $ 120,277 $ 279,200 Interest expense 1,329 1,205 Interest income (3,451) (5,003) Depreciation expense 14,671 15,821 EBITDA CS srarrnem Page 25 QUANTA
Slide 26: Reconciliation of Non-GAAP Financial Measure: Backlog
Quanta Services, Inc. and Blattner Holding Company RECONCILIATION OF NON-GAAP FINANCIAL MEASURE BACKLOG {in millions) (Unaudited) December 31, 2020 Pro Forma Quanta Blattner Combined Electric Power Infrastructure Solutions Remaining performance obligations s 3548 S$ —s 3.548 Estimated orders under M
Slide 27: Estimated Non-GAAP Financial Measures
ESTIMATED NON-GAAP FINANCIAL MEASURES Quanta is unable to provide a reconciliation of Blattner’s estimated adjusted EBITDA or estimated adjusted diluted earnings per share attributable to common stock to estimated net income attributable to common stock and diluted earnings per share attributable to
Slide 28: Cautionary Statement About Forward-Looking Statements
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS This presentation (and oral statements regarding the subject matter of this presentation) contains forward-looking statements intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of
Slide 29: Cautionary Statement About Forward-Looking Statements
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS • The successful closing of the acquisition of Blattner; • Quarterly variations in operating results, liquidity, financial condition, cash flows, capital requirements and reinvestment opportunities, including the ongoing and potential impact to Q
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