Meridian Energy Limited · NZX:MEL
Meridian Energy — FY2025 Earnings Presentation
52 slides from Meridian Energy's earnings presentation, Aug 27, 2025
Slide 1: 2025 Annual Results Presentation
2025 Annual Results Presentation 27 AUGUST 2025 7 cm
Slide 2: Mike Roan – Chief Executive
Mike Roan – Chief Executive The $448M Harapaki Wind Farm in Hawke’s Bay has been fully operational for a year, powering over 70,000 average homes. 2025 ANNUAL RESULTS PRESENTATION 27 AUGUST 2025 PAGE 2
Slide 3: Key points
Key points 1 1Earnings before interest, tax, depreciation, amortisation, unrealised changes in fair value of hedges and asset related adjustments. 2025 ANNUAL RESULTS PRESENTATION 27 AUGUST 2025 PAGE 3
Slide 4: Evolving our strategy
Evolving our strategy 2025 ANNUAL RESULTS PRESENTATION 27 AUGUST 2025 PAGE 4
Slide 5: Our people
Employee engagement Our people 90% 80% 70% Despite challenging operating conditions and intense industry scrutiny, we continue to attract and retain engaged 75% 75% 73% 73% 73% 74% staff. 60% Organisation change from implementing new retail 50% operating model and commencing our digital generation N
Slide 6: Seasonal and structural fuel scarcity
Energy margin Seasonal and structural fuel $M 150 FY25 FY24 scarcity 100 Two 1 in 90 years seasonal droughts: 50 May 2024 to mid-August 2024, inflows 64% of average. January to 2025 to April 2025, inflows 57% of average. 0 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Financial impacts of low
Slide 7: Security of supply
Security of supply 2025 security of supply was underpinned by new, short-term Seasonal energy options transactions with NZAS and Methanex. GWh Huntly Rankines Huntly strategic reserve Huntly E3P Gas peakers 5,000 NZAS DR Pūkaki contingent storage Future security of supply and dry year risk can be ma
Slide 8: Renewable Development Pipeline
Renewable Development Pipeline 2025 ANNUAL RESULTS PRESENTATION 27 AUGUST 2025 PAGE 8
Slide 9: Sector reviews
Sector reviews The final report for the Government review of the electricity sector has been completed by Frontier Economics. Expected to be published alongside a Government response by the end of September. Electricity Authority and Commerce Commission Taskforce is due to make in-principle decision
Slide 10: Scope & GHG emissions
Scope 1 & 2 GHG emissions Emissions tCO2e 1,500 2 14 2 1,000 1 2 Scope 1 reductions from light fleet electrification and SF6 1,191 mitigations. 500 1,020 1,061 643 714 517 Rising Scope 3 emissions from increased purchase of goods and services and share of transmission & distribution losses. 0 2021 2
Slide 11: Our customers
Customer connections Our customers ICP (000) 500 Meridian Powershop Total 405 400 365 363 370 330 142 300 117 117 120 89 Successful transformation of our Retail business. 200 Launch of Smart Hot Water and Four Hours Free plans. 241 248 246 250 263 100 Renewable Energy Certificates and Energy Wellbei
Slide 12: Helen Peters – Acting Chief Financial Officer
Helen Peters – Acting Chief Financial Officer Meridian has secured an additional 45GWh of energy from the Manapōuri Power Scheme each year, enough to power around 6,000 homes. 2025 ANNUAL RESULTS PRESENTATION 27 AUGUST 2025 PAGE 12
Slide 13: Cash flows and EBITDAF
Operating cash flows Cash flows and EBITDAF $M 800 600 52% decrease in operating cash flows, lowest reported cash flows since 2009. 400 667 461 509 23% decrease in energy margin. 200 431 318 32% decrease in EBITDAF. 0 Year ended 30 June 2025 FY25 YoY YoY FY25 YoY YoY 2021 2022 2023 2024 2025 Operati
Slide 14: Dividend
Ordinary dividends declared Dividend cps 25 20 Final ordinary dividend declared of 14.85cps (unchanged 15 from FY24), 73% imputed. 10 21.00 21.00 16.90 17.40 17.90 Brings FY25 full year ordinary dividend declared to 21.00cps 5 (unchanged from FY24), 77% imputed. 0 Dividend reinvestment plan will app
Slide 15: Movement in EBITDAF
Movement in EBITDAF Lowest reported EBITDAF in 10 years. Movement in EBITDAF $M Winter followed by summer drought conditions saw FY25 1,000 hydro generation more 1,000GWh lower than the 10-year average. 800 Significant derivative purchases and demand response calls -294 were needed to manage these d
Slide 16: Energy margin
Energy margin Price growth in mass market, corporate and NZAS sales. Energy margin movement $M financial -$460M physical +$161M Higher generation spot prices helped offset an 11% decrease 1,500 +50 in hydro generation volumes through repeated drought +25 +18 -6 +36 conditions. +32 -297 1,250 With a
Slide 17: Retail customer sales
Retail customer sales Average Total sales North Island South Island Retail sales price ($/MWh) volume sales volume sales volume (GWh) (GWh) (GWh) 2% sales volume growth across mass market segments FY25 (excluding agricultural), North Island weighted. Residential 1,814 1,007 806 6% higher mass market
Slide 18: Generation
Meridian's Waitaki storage Source: Meridian Generation GWh 2,500 FY25 average 2nd wettest 2,000 September to November on record 1,500 98% of average inflows in FY25 masks periods of extreme hydrology, record dry winter and summer, near record wet 1,000 average April to spring. June inflows driest Ja
Slide 19: Operating expenses
Operating expenses Operating expenses $M 300 200 FY25 operating expenses $8M (3%) higher than FY24. 249 281 289 100 207 218 Below the bottom of the February 2025 revised guidance range ($298M-$304M), largely due to lower incentive payments. 0 2021 2022 2023 2024 2025 Movement in FY25 operating costs
Slide 20: Capital expenditure
Capital expenditure Capital expenditure $M 400 Growth Stay in business Total 346 349 46 72 300 193 200 175 FY25 capital expenditure was $156M (45%) lower than FY24, 40 300 80 which included Harapaki milestone payments and the bulk of 102 277 100 Ruakākā BESS investment. 38 135 113 64 Below the botto
Slide 21: FY26 cost guidance
FY26 operating cost guidance Source: Meridian Cost guidance $M 320 Operating expenses include: +3 +4 Kraken implementation and dual billing platform costs. +4 +6 -9 300 +7 NZ Windfarms and Flick integration. +12 316 Oracle implementation successfully completed in FY25. to 280 311 Average staff incen
Slide 22: Below EBITDAF
Net profit after tax (continuing operations) Below EBITDAF $M 500 250 451 429 415 95 $671M decrease in NPBT1 from the net unrealised change in 0 fair value of hedges2 ($98M increase in FY24). NZAS base -250 -452 contract recognition change. $33M Flux impairment, following selection of Kraken as reta
Slide 23: Debt and funding
Debt maturity profile as at 30 June 2025 Debt and funding $M 700 Drawn debt maturing (face value) Available facilities maturing 600 500 243 400 June 2025 total borrowings of $1,569M. 300 250 Total funding facilities of $2,161M, of which $658M were 200 405 383 300 256 undrawn. 100 160 0 0 All facilit
Slide 24: July 2025 operating result
Meridian's Waitaki storage July 2025 operating result GWh 2,500 2,000 1,500 Earnings reversion continues with a strong July result. 1,000 Meridian inflows were 89% of average. 500 Waitaki hydro storage at 89% of average, snow storage at 0 76% of average at 31 July. Jan Feb Mar Apr May Jun Jul Aug Se
Slide 25: Mike Roan – Chief Executive
Mike Roan – Chief Executive Impression of Meridian’s $227M Ruakākā Solar Farm near Whangārei, which will produce enough electricity to power half the homes in Northland when it is completed in early 2027. 2025 ANNUAL RESULTS PRESENTATION 27 AUGUST 2025 PAGE 25
Slide 26: Closing comments
Closing comments FY25 was a perfect storm of record droughts and the extent of New Zealand’s gas decline. Balance sheet strength has underwritten that with an unchanged dividend. Meaningful progress on our strategy with reset of the Retail business, increased asset capacity, five consents secured, a
Slide 27: Questions
be Wheacict UX Meridian Questions
Slide 28: Additional information
Additional information 27 AUGUST 2025
Slide 29: FY26 focus: Grow renewable generation and firming capacity
FY26 focus Grow renewable generation and firming capacity Key initiatives FY26 targets Accelerate Aotearoa NZ’s decarbonisation by delivering Begin construction of 3 new generation developments (incl Ruakākā solar). scale energy projects at pace Consents: gain two and lodge two (more). • Build renew
Slide 30: FY26 focus: Deliver operational excellence
FY26 focus Deliver operational excellence Key initiatives FY26 targets Build operational flex and agility while sustaining excellent Develop and deliver a digitisation strategy, value framework and roadmap, which includes data driven asset management and asset productivity preventative maintenance p
Slide 31: Segment results
Segment results $M Wholesale Retail Other & unallocated Inter-segment Total Financial year ended 30 June 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Contracted sales 672 633 1,431 1,363 - - - - 2,103 1,996 Cost to supply customers (3,669) (3,487) (1,357) (1,326) - - 1,510 1,507 (3,516) (3,306)
Slide 32: EBITDAF reconciliation to the income statement
EBITDAF reconciliation to the income statement Financial year ended 30 June 2025 2024 2025 2024 Income statement ($M) Segment earnings statement ($M) Energy sales to customers 2,429 2,487 Energy margin 982 1,276 Generation revenue 2,354 2,333 Other revenue 52 36 Energy related services revenue 11 11
Slide 33: Six monthly results
Six monthly results $M 1H 2H Total 2025 2024 change 2025 2024 change 2025 2024 change Contracted sales 995 966 29 1,108 1,030 78 2,103 1,996 107 Cost to supply customers (1,565) (1,265) (300) (1,951) (2,041) 90 (3,516) (3,306) (210) Net cost of hedging (15) 51 (66) 91 234 (143) 76 285 (209) Generati
Slide 34: Earnings from continuing operations
Earnings from continuing operations NZ Operations Financial year ended 30 June 2025 2024 2023 2022 2021 $M Contracted sales 2,103 1,996 1,738 1,582 1,433 Cost to supply customers (3,516) (3,306) (1,490) (2,463) (2,896) Net cost of hedging 76 285 (121) 148 271 Generation spot revenue 2,337 2,319 1,02
Slide 35: Retail
Customer connections Retail ICP (000) 500 Meridian Powershop Total 405 400 365 363 370 330 142 300 117 117 120 89 10% increase in customer connections since June 2024. 200 241 248 246 250 263 100 Mass market segment 0 1% increase in residential volumes. Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Source: Mer
Slide 36: Hydrology
Combined catchment inflows Hydrology GWh 16,000 Jun YTD 92 year average 14,000 12,000 10,000 8,000 Inflows 6,000 FY25 inflows were 98% of historical average. 4,000 2,000 July 2025 inflows were 89% of historical average. 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Fin
Slide 37: Generation
Generation volumes Generation GWh 16,000 Hydro Wind Total 13,556 13,903 13,566 12,692 12,752 1,285 1,202 1,441 12,000 1,395 1,809 8,000 Volumes 12,271 12,701 12,125 11,297 10,943 FY25 generation was 6.0% lower than FY24, with lower hydro 4,000 generation and higher wind generation. 0 2021 2022 2023
Slide 38: EBITDAF to NPAT
EBITDAF to NPAT Financial year ended 30 June 2025 2024 EBITDAF 611 905 Depreciation and amortisation -447 -334 Premiums paid on electricity options net of interest -12 -23 Net finance costs -79 -57 Tax -17 -132 Underlying NPAT 56 359 Net change in fair value of hedges* -671 98 Asset related adjustme
Slide 39: Energy margin
Energy margin Energy margin $M 5,000 4,000 2,337 3,000 -2,825 2,000 672 -691 579 1,000 -35 -14 -4 852 -908 1,019 982 0 Mass C&I sales Financial Generation Cost to Cost to Hedging Hedging Contract VAS Market costs Energy market sales contract spot supply supply fixed costs spot close outs margins Mar
Slide 40: Energy margin movement
Energy margin movement Energy margin movement $M 1,500 +18 +39 -102 +36 1,300 +32 -108 1,100 -142 -20 -47 +5 -5 900 1,276 982 700 500 Energy Mass C&I sales Financial Generation Cost to Cost to Hedging Hedging Contract VAS Market costs Energy Margin 30 market sales contract spot supply supply fixed c
Slide 41: Energy margin definition
Energy margin A non-GAAP financial measure representing energy sales Defined as: revenue less energy related expenses and energy Revenues received from sales to customers net of distribution expenses. distribution costs (fees to distribution network companies Used to measure the vertically integrate
Slide 42: Energy margin
Energy margin FY25 FY24 FY23 FY22 FY21 Volume VWAP $M Volume VWAP $M $M $M $M Res, business, agri sales 5,501 $155 852 5,603 $146 820 714 635 592 Corporate and industrial sales 3,921 $148 579 3,908 $139 543 492 422 352 Retail contracted sales 9,422 $152 1,431 9,511 $143 1,363 1,206 1,057 944 NZAS sa
Slide 43: NZAS demand response agreement options
NZAS demand response agreement options Equivalent Exercisable Reduction Usual Usual Ramp- Usual Ramp-Up Usual Ramp-Up reduced from Meridian Ramp- DR Period Down Period Notice Period Period Option consumption demand response Down (equivalent Maximum Calls (equivalent (equivalent (equivalent (MWh per
Slide 44: Funding metrics
Funding metrics Net debt to EBITDAF is the principal metric underpinning S&P credit rating. S&P calculation of Net debt to EBITDAF includes an adjustment for restricted cash. Net debt to EBITDAF Financial year ended 30 June 2025 2024 2023 2022 2021 $M Drawn borrowings 1,531 1,361 1,248 1,167 1,686 L
Slide 45: Fair value movements
Fair value movements Meridian uses derivative instruments to manage interest rate, Net change in fair value of hedges foreign exchange and electricity price risk. $M 800 As forward prices and rates on these instruments move, non- 400 402 cash changes to their carrying value are reflected in NPAT. 0
Slide 46: Proforma income statement
Proforma income statement Proforma income statement Financial year ended 30 June 2025 2024 2023 2022 2021 reported reported reported reported pro forma $M Operating revenue 4,835 4,856 3,222 3,776 4,115 Operating expenses (3,636) (4,102) (2,397) (3,188) (3,634) Depreciation and amortisation (447) (3
Slide 47: Segment earnings statement
Segment earnings statement Segment earnings statement Financial year ended 30 June 2025 2024 2023 2022 2021 $M Energy margin 982 1,276 1,132 1,022 994 Other revenue 52 36 29 27 27 Hosting expense (4) (4) (3) (2) - Energy transmission expense (78) (73) (80) (79) (82) Energy metering expense (52) (49)
Slide 48: Underlying NPAT reconciliation
Underlying NPAT reconciliation UNPAT Financial year ended 30 June 2025 2024 2023 2022 2021 $M Net profit after tax (452) 429 95 664 428 Underlying adjustments Hedging instruments Net unrealised change in fair value of energy hedges 659 (102) 333 (145) (157) Net change in fair value of treasury hedge
Slide 49: Cash flow statement
Cash flow statement Cash flow statement Financial year ended 30 June 2025 2024 2023 2022 2021 $M Receipts from customers 4,983 4,614 3,354 3,934 4,164 Interest received 5 12 11 2 - Payments to suppliers and employees (4,388) (3,719) (2,637) (3,254) (3,472) Interest paid (87) (80) (65) (76) (82) Inco
Slide 50: Balance sheet
Balance sheet Balance sheet Financial year ended 30 June 2025 2024 2023 2022 2021 $M Cash and cash equivalents 123 221 212 363 148 Trade receivables 406 536 334 399 491 Financial instruments 65 233 86 213 192 Other current assets 86 61 60 66 86 Total current assets 680 1,051 692 1,041 917 Property,
Slide 51: Glossary
Glossary Hedging volumes buy-side electricity derivatives excluding the buy-side of virtual asset swaps Average generation price the volume weighted average price received for Meridian’s physical generation Average retail contracted sales price volume weighted average electricity price received from
Slide 52: Disclaimer
Disclaimer The information in this presentation was prepared by Meridian Energy these measures may differ from similarly titled measures presented by with due care and attention. However, the information is supplied in other companies and they should not be considered in isolation from, or summary f