Attached files
| file | filename |
|---|---|
| EX-99.4 - EXHIBIT 99.4 - CTWS 2017 Q1 EARNINGS - CONNECTICUT WATER SERVICE INC / CT | exhibit994-ctws2017q1earni.htm |
| EX-99.3 - EXHIBIT 99.3 - DIVIDEND INCREASE - CONNECTICUT WATER SERVICE INC / CT | exhibit993-dividendincreas.htm |
| EX-99.2 - EXHIBIT 99.2 - ORGANIZATIONAL MEETING - CONNECTICUT WATER SERVICE INC / CT | exhibit992-organizationalm.htm |
| 8-K - CTWS FORM 8-K 05-15-2017 - CONNECTICUT WATER SERVICE INC / CT | ctws8-kxannualmeetingresul.htm |
Connecticut Water Service, Inc.
2017 Annual Meeting
of Shareholders
May 11, 2017
Connecticut Water Service, Inc.
Carol P. Wallace
Lead Director
CTWS Shareholders
3
• Registered shares held in 48 states, US-VI’s and DC!
• Canada
• Australia
• Japan
• New Zealand
• France
• Mexico
• Bermuda
• Thailand
Information provided by Broadridge Corporate Solutions, Inc.
CTWS Shareholders
4
• 59% Retail Investors
• Typical Shareholder - ~500 shares
– 79% own 50 to 500 shares
– 21% own more than 500 shares
Information provided by Broadridge Corporate Solutions, Inc.
2016 CTWS Board Focus
Delivering Value for Shareholders!
• Growth in Shareholder Value
• Executive Compensation Best
Practices
• Talent Development & Succession
Planning
5
2016 CTWS Board Focus
Delivering Value for Shareholders!
• Enterprise Risk Management
• Board Diversity
• Communities
• Sustainability
Welcome Shareholder
Contact and Feedback!
6
Connecticut Water Service, Inc.
Eric W. Thornburg
President & CEO
Forward Looking Statements
Except for the historical statements and discussions, some statements contained in this
presentation constitute “forward looking statements” within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward
looking statements are based on current expectations and rely on a number of assumptions
concerning future events, and are subject to a number of uncertainties and other factors, many
of which are outside our control, that could cause actual results to differ materially from such
statements.
These forward-looking statements speak only as of the date of this presentation. Connecticut
Water does not assume any obligation to update or revise any forward-looking statement made
in this presentation or that may, from time to time, be made by or on behalf of the Company.
Neither this presentation nor any verbal communication shall constitute an invitation or
inducement to any person to subscribe for or otherwise acquire any Connecticut Water
securities.
For further information regarding risks and uncertainties associated with Connecticut Water’s
business, please refer to Connecticut Water’s annual, quarterly and periodic SEC filings which can
be found on the investor relations page of the company’s website www.ctwater.com and at
www.sec.gov.
Water, the basic ingredient of Life…
Who we are…
Our Mission…
Passionate employees delivering life
sustaining, high quality water
service to families and communities
while providing a fair return to our
shareholders
Our Vision…
To serve our customers,
shareholders and employees at
world class levels
10
Our Values…
• Honesty
• Trust
• Respect
• Service
• Teamwork
• Positive Attitude
• Straight Talk
A Proud Heritage…
• Serving families and
communities since 1849
• Founded in 1956
• Serving 400,000 people
• 79 cities/towns
• 272 Employees
Company Strategy
Shareholders Environment
Customers Employees
Delivering Growth
• University of Connecticut
– 5 mile pipeline complete
– 300 new ‘off campus’ customers
• Heritage Village Water Company
– Closed on February 27, 2017
– 3,000 wastewater & 4,700
water customers
• Avon Water Company
– 4,800 water customers
– Regulatory approvals secured
– Closing this summer
14
Delivering Growth
• Industry leading customer growth since 2012
– 40,000 customers
– 44% growth
• WICA/WISC
– 118 miles of
pipe replaced!
• $66.3 M in CapEx 2016
– Rockville Facility
– Biddeford Facility
15
Delivering for Customers
• World-Class customer satisfaction 16 years
– Maine Satisfaction Index – 92.4%
– Connecticut Satisfaction Index – 92.1%
• Outreach to schools
– Lead
– Tours
• State Operations Center
• Community Engagement
16
Delivering for Employees
• Employee 2020
– Safety & Security!
– Succession Planning & Development!
• Great New Talent!
• Construction Safety Award (13th year)
17
Delivering for the Environment
• Water Drop Challenge
– Incentivized customers to reduce
water usage
– 5,000 customers enrolled
– 30 million gallons saved
• School Program in 2016/17
• Permanently protected 1,400
acres of Mirror Lake watershed
• Rockfall Foundation Award
18
Delivering for Shareholders
• Record Earnings
• Total Shareholder Value
Added
• S&P ‘A’ Credit Rating
Reaffirmed
• NASDAQ Dividend Achiever
• Cyber Security &Enterprise
Risk Management
19
Connecticut Water Service, Inc.
David C. Benoit
Senior Vice President, CFO & Treasurer
2016 Financial Highlights
CTWS Record Net Income & EPS
– $23.4 Million Net Income – 5 Year CAGR 16%
– $2.12 EPS – 5 Year CAGR 10%
– Dividend Increase of 6.2%
– Enterprise Value surpassed $600 million
• Investor Relations Efforts
– Traveled throughout U.S. telling our story
– Attracted institutional positions
– Added analyst coverage - Barclays
Utility Operating Margin
Efficiency Measure
16.0%
22.5% 22.8% 22.0% 22.0%
23.6%
24.4%
25.0%
27.7%
28.6%
29.3%
5%
10%
15%
20%
25%
30%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Utility Operating Income as a percentage of Operating Revenue
Performance
50.4%
19.5% 19.0%
0%
10%
20%
30%
40%
50%
60%
1 year 3 year 5 year
Average Annual 1, 3 & 5-Year
Total Shareholder Return @ 12/31/16
Stable & Growing Dividend
• 5.3% Annualized Cash Dividend Increase on May 11, 2017
• Annual dividend yield 2.3% as of 5/10/17 closing price
• Dividend paid without interruption or reduction for 243 consecutive quarters
• Increased dividend payments for 48 consecutive years
• 2016 Dividend Payout Ratio = 54%
Annual Dividend
$0.865 $0.88
$0.90 $0.92
$0.94
$0.96 $0.98
$1.01
$1.05
$1.115
$1.19
$0.80
$0.90
$1.00
$1.10
$1.20
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Current
Rate
Annualized
On May 11, 2017, the Company’s Board declared a quarterly cash dividend of $0.2975 per common share
payable on June 15, 2017.
2017 Planned Capital Spending
2017 Planned Capital Spending1
WICA/WISC
$22.2MM
Treatment
13.9MM
Non-WICA/WISC
$2.9MM
IT
$3.9MM Other
2
$11.8MM
Facilities
$1.1MM
1 Does not include 2017 completed or pending acquisitions
2 Examples include: well development, gatehouse construction,
tank work
• More than $150
Million of identified
infrastructure
investment (2017 –
2019)1
• ‘Generational’ Spend
on Water Treatment
Facilities
– Rockville 1970
– Biddeford 1884
1st Quarter EPS - 2017 vs. 2016
$0.33
$0.25
$0.03
$0.04
2017 2016
Water Operations Services & Rentals
$0.36
$0.29
Additional Information About the Merger and Where to Find It
In connection with the proposed Merger, CTWS will be filing a registration statement on Form S-4 with the SEC under the Securities Act of
1933 containing separate proxy statement of AWC that also constitutes a prospectus of CTWS (a “Statement/Prospectus”) and other
documents regarding the proposed transaction.
Before making any voting or investment decisions, we urge investors and security holders to read the final Statement/Prospectus
(including all amendments and supplements thereto) and other documents filed with the SEC carefully and in their entirety when they
become available, because they will contain important information about CTWS, AWC and the proposed Merger.
When available, a copy of the final Statement/Prospectus will be mailed to the shareholders of the AWC. Copies of the final
Statement/Prospectus may be obtained free of charge at the SEC's web site at www.sec.gov, or by directing a request to CTWS's Corporate
Secretary, Kristen A. Johnson, at Connecticut Water Service, Inc., 93 West Main Street, Clinton, Connecticut 06413, or by telephone at 1-800-
428-3985, ext. 3056, or on our website at www.ctwater.com. Copies of other documents filed by CTWS with the SEC may also be obtained
free of charge at the SEC's web site or by directing a request to CTWS at the address provided above.
CTWS, AWC and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in
connection with the approval of the proposed Merger. Information regarding CTWS's directors and executive officers and their respective
interests in CTWS by security holdings or otherwise is available in its Annual Report on Form 10-K filed with the SEC on March 13, 2017 and its
Proxy Statement on Schedule 14A filed with the SEC on March 30, 2017. Certain information regarding the directors and executive officers of
AWC is available in its Annual Report for 2015 filed with the PURA and available at the PURA's website, www.ct.gov/pura. Additional
information regarding the interests of such potential participants will be included in the final Statement/Prospectus and registration
statement, and other relevant materials to be filed with the SEC, when they become available, including in connection with the solicitation of
proxies to approve the proposed Merger.
This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities
laws of such jurisdiction. No offer or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10
of the Securities Act of 1933.
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