Connecticut Water Service — Merger or Acquisition (August 2018)
10 slides from Connecticut Water Service's merger presentation, Aug 6, 2018
Slide 1: Creating a Leading National Water Utility: Revised Merger Terms
Exhibit 99.2 Creating a Leading National Water Utility: Revised Merger Terms August 6, 2018 Exhibit 99.2 Creating a Leading National Water Utility: Revised Merger Terms August 6, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement Regarding 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-l
Slide 3: Creating a Leading National Water Utility
Creating a Leading National Water Utility Geographic Diversity, Local Expertise Transaction Highlights • Incremental scale creates a significantly stronger platform for long-term water utility growth • SJW Group (NYSE:SJW) and Connecticut Water Service, Inc. • Diversifies utility footprint spanning
Slide 4: SJW + CTWS: Largest Water and Wastewater Utility
rd SJW + CTWS: 3 Largest Water and Wastewater Utility 1 Investor-Owned Water Utilities by Enterprise Value ($B) $23.7 $8.8 $3.0 $2.7 $2.6 $1.8 $1.1 $0.9 $0.5 $0.5 2 AWK WTR Pro forma CWT AWR SJW CTWS MSEX YORW ARTNA 3 Investor-Owned Water Utilities by Rate Base ($B) $11.6 $4.1 $1.3 $1.1 $0.8 $0.8 $0
Slide 5: 93% Regulated Earnings Across Diversified Geographic and Regulatory Markets
93% Regulated Earnings Across Diversified Geographic and Regulatory Markets + Unregulated Unregulated Unregulated 9% 5% 7% Net Income by Segment Regulated Regulated Regulated 91% 95% 93% TX ME 8% 15% CT 30% Net Income by CA CA CT State 60% 92% 85% ME 5% TX 5% Note: Based on 2017 net income 5 93% Reg
Slide 6: Revised Transaction Overview
Revised Transaction Overview • Offer price of $70.00/CTWS share in cash • Represents a 33% premium to CTWS’ unaffected share price as of March 14, 2018 Key Terms & • Equity purchase price of $843mm; transaction value of $1,138mm Financing • Financing strategy consistent with SJW’s strong credit prof
Slide 7: Conservative Financing Mix Enables Continued Financial Strength
Conservative Financing Mix Enables Continued Financial Strength • Merger rationale underscores commitment to build a stronger, more stable utility enterprise with greater diversification and operating cash flow • Combined resources create substantial liquidity to fund existing capital requirements a
Slide 8: Clear Path to Close in Q1 2019
Clear Path to Close in Q1 2019 Q3 2018 Q4 2018 Q1 2019 Revised Merger CTWS Shareholder Approval Announcement File Revised Proxy Statement CT PURA, ME PUC, and FCC Develop and Initiate Transition / Integration Plans Expected Transaction Close Note: The California Public Utilities Commission (CPUC) pr
Slide 9: Creating a Leading Water Utility Company
Creating a Leading Water Utility Company • Well positioned to deliver continued superior shareholder returns and best-in- class customer service • More diverse, stable and higher earnings growth profile than could be achieved standalone • Ability to leverage nationwide footprint to pursue attractive
Slide 10: Additional Information
Additional Information Additional Information and Where to Find It This communication may be deemed to be solicitation material in respect of the proposed acquisition of CTWS by SJW. In connection with the proposed transaction, SJW and CTWS intend to file relevant materials with the SEC, including C
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