Infratil Limited · NZX:IFT
Infratil — Trustpower — Investor Day (April 2014)
25 slides from Infratil's investor day presentation, Apr 4, 2014
Slide 1: Infratil Investor Day
Infratil Investor Day 4 April 2014
Slide 2: Infratil Investor Day Trustpower Agenda
Infratil Investor Day Trustpower Agenda • Performance developing points of difference • Focus on retail • Update on Australia © Trustpower Limited
Slide 3: Highlights 2014 financial year
Highlights 2014 financial year • Acquisition of EDNZ accelerates retail multi-product strategy - 224,000 electricity customers - 54,300 telco services - 13,500 gas • Re-brand and launch into new geographies - Ready for metro launch • Significant progress on Snowtown Stage 2 wind farm • Completion of
Slide 4: Consistent performance focus
Consistent performance focus EBITDAF Return on adjusted capital © Trustpower Limited
Slide 5: … and there are challenges
… and there are challenges • Demand remains flat • Government’s MoM programme – provides greater sector choice for investors • Labour / Green policy risk … TRUSTPOWER response © Trustpower Limited
Slide 6: Re-launching the Brand – a point of difference
Re-launching the Brand – a point of difference • Stable, trustworthy and reliable • NZ owned and operated company • NZ based call centre • Excellent customer service • Rewards loyalty via Friends Gold (55% of customers) • Community involvement “So it comes down to customer service and what they do w
Slide 7: Building brand value
Building brand value INTEGRATION Contact Energy Genesis Energy FUNCTIONAL CARE Pulse Energy Mercury Energy Meridian Energy Power Shop POWER COMPANY © Trustpower Limited
Slide 8: Retail success – also means doing the basics well
Retail success – also means doing the basics well • Profitable customers that stay with you for a long time • Upsell must add value and / or increase loyalty • Cash is king and therefore processes must be excellent - meter to cash - credit and debt • Churn increases cost to serve © Trustpower Limite
Slide 9: … loyalty is key to growth
… loyalty is key to growth Trustpower Switches vs Market 30% 50,000 45,000 Count of Market Switches 25% 40,000 Annualised Loss % 20% 35,000 30,000 15% 25,000 20,000 10% 15,000 5% 10,000 5,000 0% 0 Market Switch Count Market % Switches Trustpower % Switches © Trustpower Limited
Slide 10: Multi product – builds loyalty, supports growth
Multi product – builds loyalty, supports growth 2010* 5%6% 89% 2014* 9% 11% One Product Two Products 80% Three + Products 2019* 13% 20% 67% *Indicative split © Trustpower Limited
Slide 11: Multi-product success factors
Multi-product success factors Success based on 3 key factors: 1. Trustpower brand equity: trusted, reliable, NZ owned/operated 2. Providing a great deal 3. Excellent customer service “Why pay it in four places if you can pay it in one place. One phone call.” “One stop shop customer service.” © Trust
Slide 12: Entering new metro-markets
Entering new metro-markets © Trustpower Limited
Slide 13: Auckland campaign starts Monday
Auckland campaign starts Monday © Trustpower Limited
Slide 14: Trustpower’s Australian strategy
Trustpower’s Australian strategy Renewable Energy Target Wind Similar legal Experience and cultural - 13yrs in NZ structure - 10yrs in Aust Australian Growth Core Support from Competencies: existing NZ -development talent pool - construction - operation Good industry relationships Snowtown Stage 2 i
Slide 15: Renewable target review
Renewable target review 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - REC Generation Committed RECs (Existing Sources) Committed RECs (New Sources) Banked Recs Pessimistic Banked Effective Target Pessimistic Target © Trustpower Limited
Slide 16: Trustpower’s Australian pipeline options
Trustpower’s Australian pipeline options Wind Farm Status MW Snowtown 1 - SA Operational 100 Snowtown 2 - SA Under construction 270 Dundonnell - VIC In DA process 250 - 320 Salt Creek - VIC DA in place – 2015 Expiry 10 - 30 Rye Park - NSW* In DA process Circa 300 New South Wales In DA process Circa
Slide 17: Snowtown Stage 2 project attributes
Snowtown Stage 2 project attributes © Trustpower Limited
Slide 18: Snowtown Stage 2 project status
Snowtown Stage 2 project status Number % Status 275kV Transmission Complete (28km) Blyth West Substation Complete WTG Erection 67 74% On target WTG Operating 55 61% On target © Trustpower Limited
Slide 19: Lifting hub and blades
Lifting hub and blades © Trustpower Limited
Slide 20: Fitting hub to nacelle
Fitting hub to nacelle © Trustpower Limited
Slide 21: Fitting hub to nacelle
Fitting hub to nacelle © Trustpower Limited
Slide 22: Turbine complete
Turbine complete © Trustpower Limited
Slide 23: Snowtown Stage 2 impact on Trustpower
Snowtown Stage 2 impact on Trustpower * Exchange rate of NZD/AUD 0.8500 assumed ** Includes impact of wind shading on Snowtown Stage 1 © Trustpower Limited
Slide 24: Completion of Snowtown 2 creates options
Completion of Snowtown 2 creates options • Sell and recycle • Partial sell down • Hold and harvest
Slide 25: Disclaimer
Disclaimer The information set out above relates to future matters, that are subject to a number of risks and uncertainties (many of which are beyond the control of Trustpower) which may cause the actual results, performance or achievements of Trustpower or the Trustpower Group to be materially diff