投资银行在产业中应用

L:UTILITIES_NYDEPT_ONLYPersonalFoldersBLUXTimSchwarzUtilityIndustryPresentation.pptA2XP16SEP20055:55PM1,InvestmentBankingViewoftheUtilityIndustry,21September2005,投资银行在产业中的应用,TableofContents,L:UTILITIES_NYDEPT_ONLYPersonalFoldersBLUXTimSchwarzUtilityIndustryPresentation.pptA2XP16SEP20055:55PM2,Section1,UtilitySectorUpdate,Section2,PerspectivesonRecentStrategicActivity,Section3,EnergyPolicyAct,Section4,TransmissionEnvironmentUpdate,AppendixA,Bio,TimothyR.Schwarz,Section1,UtilitySectorUpdate,L:UTILITIES_NYDEPT_ONLYPersonalFoldersBLUXTimSchwarzUtilityIndustryPresentation.pptA2XP16SEP20055:55PM4,UtilitySectorUpdate,ABraveNewWorldofGrowthisEmerging,L:UTILITIES_NYDEPT_ONLYPersonalFoldersBLUXTimSchwarzUtilityIndustryPresentation.pptA2XP16SEP20055:55PM5,Growthstocksarestartingtomakeacomebackafter5consecutiveyearsoftrailingvaluestocksYear-to-dateperformancesupportsourview,asgrowth,measuredbytheBarraindexes,hasmarginallyoutperformedvalue.MoretellingcouldbethatgrowthhastriumphedovervalueduringeachofthelastsixmonthsHowever,unlikepastreboundsingrowthstocks,weexpectaGARPorientationtodominateduringthiscycleEarningsgrowthanddividendgrowthhavereconnectedafterthelongabsencethatdefinedthe1990s,1,SourceSallforecastvaluesarefortheendoftheindicatedperiod,L:UTILITIES_NYDEPT_ONLYPersonalFoldersBLUXTimSchwarzUtilityIndustryPresentation.pptA2XP16SEP20055:55PM6,WiththeFedtightening10consecutivetimes,U.S.long-terminterestrateshavenotriseninlinewithexpectationsU.S.utilitieshavenotbeenassensitivetointerestratemovementsashistoricallyobservedMorganStanleyforecaststhatthe10and30yearUSTreasurieswillreach4.75%and5.0%,respectively,bytheendoftheyear,2,SourceFactSetandMorganStanleyResearch,SourceBloombergandMorganStanleyResearchandTheWallStreetJournal,L:UTILITIES_NYDEPT_ONLYPersonalFoldersBLUXTimSchwarzUtilityIndustryPresentation.pptA2XP16SEP20055:55PM7,UtilitySectorUpdate,UtilitySectorValuationRelativetoBroaderMarket,3,Currentvaluationsarenotcompellingasthesectoristradingclosetoonestandarddeviationaboveitslong-termaverageonmostmetricsValuationsalsoareunattractiverelativetothebroadermarketUtilitysectortradingat107%oftheSexcludesterminatedtransactionsAnnualamountsbasedonmeanofpercentagepremiumspaidoverunaffectedstockpricewhichisdefinedasstockprice4weekspriortotheearliestofthedealannouncement;announcementofacompetingbid;andmarketrumorsbefore31March2005Includesallannouncedbidsirrespectiveofconsiderationoffered(i.e.,includesallcash,allstockandhybridbids).Excludesoutliers,MEV/2005EEBITDAwithoutsecuritizeddebtis10.4xBasedonequityresearchestimatesLTMP/E(March05)is20.5xLTMEV/EBITDA(March05)is8.6x,L:UTILITIES_NYDEPT_ONLYPersonalFoldersBLUXTimSchwarzUtilityIndustryPresentation.pptA2XP16SEP20055:55PM16,10,(1),(1),(1),(1),(1),(3),(3),Priceperformancesinceannouncement,(4),(5),(2),(2),ComparisonofRecentMMorganStanley,NotesTotalIPOproceedsincludeoverallotmentOverallotmentoptionof1.875MMsharesconsistsof100%secondaryshares,18,TransactionOverview,ITCpricedat$23.00pershare-$2.00abovetheoriginalfilingrangeof$19-21InvestorswereprimarilyattractedtoITCsuniquebusinessmodel,combinationofhighgrowthpotentialanddividendyield,earningsvisibility(automaticraterecoverythroughAttachmentOmechanism),attractiverateofreturnandexperiencedmanagementteamAnextensive10-daymarketingprogramwasundertakenbymanagement,including39one-on-ones,12two-on-ones,2three-on-ones,6conferencecalls,and6groupmeetingsin17citiesManagementachievedaone-on-onehitratioofover90%Theofferingwasover17xoversubscribed(pre-greenshoe)withminimalpricesensitivity,withalmost400institutionalinvestorsintheorderbook,and79investorsplacingordersfor10%ofthetransactionRetailinterestintheofferingwasalmost16MMsharesITCsstockbegantradingonJuly26,2005andopenedatapproximately$27.ITCclosedthedayat$26.40,L:UTILITIES_NYDEPT_ONLYPersonalFoldersBLUXTimSchwarzUtilityIndustryPresentation.pptA2XP