Connecticut Water Service — Shareholder Meeting (May 2019)
26 slides from Connecticut Water Service's shareholder meeting presentation, May 10, 2019
Slide 1: 2019 Annual Meeting of Shareholders
Connecticut Water Service, Inc. 2019 Annual Meeting of Shareholders May 9, 2019 Exhibit 99.2
Slide 2: David C. Benoit, President & CEO
Connecticut Water Service, Inc. David C. Benoit President & CEO
Slide 3: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as “beli
Slide 4: Water, the basic ingredient of Life…
Water, the basic ingredient of Life…
Slide 5: Who we are… Our Mission… Our Vision…
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
Slide 6: Our Values…
Our Values… Honesty Trust Respect Service Teamwork Positive Attitude Straight Talk
Slide 7: Company Strategy
Company Strategy Shareholders Environment Customers Employees
Slide 8: Delivering for Customers
Delivering for Customers World-Class customer satisfaction Composite Satisfaction Index – 92.4% Settlement Agreement on Rates in CT Targeted recovery of generational investment Passing along benefits of Tax Act Supporting municipalities
Slide 9: Protecting Our Water Resources
Protecting Our Water Resources Partnering with Coastal Mountains Land Trust
Slide 10: Protecting the Resource
Protecting the Resource Cleanups, Plantings, Hikes & Paddles
Slide 11: Delivering for Employees
Delivering for Employees Employee 2020 Safety & Security Succession Planning & Development Construction Safety Award (15th year)
Slide 12: Leadership Development For Everyone
Every employee is a leader when they deliver on the mission, demonstrate our core values Training delivered in 90 minute segments Highly Interactive Minimum class size is 6 3 or more people in 1 Location in ME or CT, can attend a class in other state via video Leadership Development For Everyone Giv
Slide 13: Delivering for Shareholders
Delivering for Shareholders TSR top quartile of utility indices 50 consecutive years of dividend increases True to our mission and our investments
Slide 14: Merger Update
Merger Update Merger agreement remains in effect and companies remain committed to closing the transaction and realizing its many benefits New applications filed in Connecticut (April) and Maine (May) that are responsive to concerns communicated by regulators in connection with the prior application
Slide 15: Merger Update
Merger Update New applications offer comprehensive commitments and additional evidence that merger is in public interest and will deliver benefits to all stakeholders
Slide 16: Robert J. Doffek, CFO, Treasurer and Controller
Connecticut Water Service, Inc. Robert J. Doffek CFO, Treasurer and Controller
Slide 17: 2018 Financial Highlights
2018 Financial Highlights Net Income of $16.7 million including $11 million of costs related to the SJW Group combination $27.7 Million Adjusted Net Income* – 5 Year CAGR 8.6% Dividend Increase of 5.0% Successful Rate Activity in Connecticut allowing recovery of the $36.3 million investment in the n
Slide 18: Utility Operating Margin
Utility Operating Margin Efficiency Measure Utility Operating Income as a percentage of Operating Revenue
Slide 19: Performance: Total Shareholder Return
Performance Average Annual 3, 5 & 10-Year Total Shareholder Return @ 12/31/18
Slide 20: Stable & Growing Dividend
Stable & Growing Dividend 4.8% Annualized Cash Dividend Increase on May 9, 2019 Annual dividend yield 1.8% as of 5/8/19 closing price Dividend paid without interruption or reduction for 255 consecutive quarters Increased dividend payments for 50 consecutive years Annual Dividend On May 9, 2019, the
Slide 21: 2019 Planned Capital Spending
2019 Planned Capital Spending 2019 Planned Capital Spending of $85.7MM WICA/WISC $36.8MM Treatment 11.9MM Non-WICA/WISC $13.6MM IT $4.5MM Other1 $17.7MM Facilities $1.2MM 1 Examples include: well development, gatehouse construction, tank work The 2019 Planned Spending is the largest in the company’s
Slide 22: 1st Quarter Adjusted Net Income 2019 vs. 2018
1st Quarter Adjusted Net Income* 2019 vs. 2018 Increase in revenue partially offset by higher operating and interest costs. *Adjusted Net Income is a non-GAAP financial measure which excludes the impacts of costs related to the SJW Group combination. Q1, 2018 had a net loss of ($1.2) million with me
Slide 23: Thank you for your support
Thank you for your support Your Questions & Feedback…
Slide 24: Appendix
Appendix ConnecticutWater_ Maine We AVON ° HERITAGE VILLAGE ~~~
Slide 25: Use and Definition of Non-GAAP Financial Measures
Use and Definition of Non-GAAP Financial Measures We consider Adjusted Net Income as a key business metric, which is a Non-GAAP financial measure. We define Adjusted Net Income as Net Income excluding certain material items outside of normal business operations. For this Non-GAAP financial measure,
Slide 26: Use and Definition of Non-GAAP Financial Measures
Use and Definition of Non-GAAP Financial Measures The following table provides a reconciliation of Net Income to Non-GAAP Adjusted Net Income for the three months ended March 31, 2019 and 2018 and for the year ended December 31, 2018: For the three months ended March 31st: 2019 2018 Net Income (Loss
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