Contact Energy Limited · NZX:CEN
Contact Energy — UBS Conference 2014
12 slides from Contact Energy's conference presentation, Jun 19, 2014
Slide 1: ASX cover note: CEN Presentation at UBS Conference
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 19 June 2014 From Helen Hardy Pages 12 Subject CEN Presentation at UBS Conference Attached herewith is a copy of an announcement released to the NZX by Contact Energy today. Origin Energy holds 53.0
Slide 2: UBS Conference
For personal use only UBS Conference Dennis Barnes Chief Executive Officer 19 June 2014
Slide 3: Disclaimer
Disclaimer 2 For personal use only This presentation may contain projections or forward looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in
Slide 4: February 2014
For personal use only 3 February 2014
Slide 5: Business set up to deliver stable cashflows
Business set up to deliver stable cashflows 4 Focus on efficiency and lower capital expenditure will increase free cashflow For personal use only Second largest gas and electricity Flexible portfolio allows management of retailer in New Zealand variable operating conditions Electricity sales 1 Conta
Slide 6: Current capital investment programme has come to an end
Current capital investment programme has come 5 to an end Te Mihi Power Station commissioned Retail transformation live For personal use only • 166MW geothermal power station • SAP ‘go-live’ in the retail business April 2014 commissioned May 2014 » Completes the SAP transformation of » Maximises res
Slide 7: Methanol linked gas prices have supported transition from gas to geothermal and wind
Methanol linked gas prices and a lack of long-term 6 gas certainty have supported a transition from gas generation to geothermal and wind For personal use only Sources of gas demand 1 New Zealand non-hydro energy supply 2 250 (based on GWh of generation) 100% Coal 90% 200 80% Other 70% demand Gas 15
Slide 8: Gas production has remained stable, with no major gas discoveries
Gas production has remained stable, despite 7 extensive exploration, with no major gas discoveries for many years For personal use only 1 Gas production by field Years of remaining reserves (P50) 1 16 200 180 14 Other 160 12 Mangahewa 140 Kupe 10 Production (PJ) Years 120 Kapuni 8 100 6 Maui 80 4 60
Slide 9: Thermal generation remains critical to supporting wind and hydro volatility
Thermal generation remains critical to supporting 8 wind and hydro volatility Contact has retained options to maximise the value of future gas contracts, For personal use only with decisions driven by the market value of capacity • Contact remains without any significant contracted gas for the 2015
Slide 10: A stable regulatory environment is important
A stable regulatory environment is important 9 given the long-term nature of our business For personal use only • Labour-Green proposed reforms » New Zealand election to be held 20 September 2014 » Opposition policies include a proposal to remove the wholesale market to reduce electricity prices » T
Slide 11: Summary
Summary 10 For personal use only • Current capital and refinancing programme complete • Strong operational focus continues • Competitive advantage in investment in fuel and plant flexibility and enterprise wide systems • Tauhara – next most competitive generation development in New Zealand
Slide 12: Any questions?
For personal use only Any questions?