Meridian Energy Limited · NZX:MEL
Meridian Energy — NZX Investing In New Zealand event, Singapore 2018
18 slides from Meridian Energy's conference presentation, Oct 17, 2018
Slide 1: Meridian Energy NZX Singapore investor presentation
For personal use only Meridian Energy NZX Singapore investor presentation 17 October 2018 Attached is a presentation Meridian Energy Limited is making at an NZX Investing In New Zealand event being held in Singapore on 18 October 2018. ENDS Neal Barclay Chief Executive Meridian Energy Limited For in
Slide 2: Investing in New Zealand Management Presentation
For personal use only I N V EST I N G I N N E W Z EA L A N D M A N AG E M E NT P R ES E N TAT I O N
Slide 3: The New Zealand Electricity Market
For personal use only THE NEW ZEALAND ELECTRICITY MARKET Meridian Energy Limited Investing in New Zealand October 2018 2
Slide 4: The New Zealand Electricity Market
THE NEW ZEALAND ELECTRICITY MARKET ▪ Delivering a reliable, affordable and environmentally sustainable electricity system For personal use only ▪ A well functioning market, characterised by: “New Zealand serves as a model for effective energy ▪ Quality renewable resources markets and secure power ▪
Slide 5: The New Zealand Electricity Market
THE NEW ZEALAND ELECTRICITY MARKET 5 major generators 33 retailers (all listed) (44 brands) For personal use only 1 big industrial user 1 transmission grid 29 distribution (Rio Tinto/Sumitomo owner (state owned) businesses smelter) (various 2.1 million ownership consumers structures) (41 TWh pa) 201
Slide 6: The New Zealand Electricity Market
THE NEW ZEALAND ELECTRICITY MARKET ▪ New Zealand’s hydro generation is managed against limited controlled storage For personal use only ▪ Bulk of hydro inflow is anti-correlated to winter demand peak ▪ Thermal capacity and fuel storage manages potential hydro inflow deficit and other renewable inter
Slide 7: The New Zealand Electricity Market
THE NEW ZEALAND ELECTRICITY MARKET ▪ Market will be the key enabler of greater NZ 2016 SECTOR EMISSIONS decarbonisation in New Zealand 6% 3% 5% For personal use only Electricity Road transport 17% ▪ 42% of non-agricultural carbon emissions could be Stationary energy* removed over time through electr
Slide 8: The New Zealand Electricity Market
THE NEW ZEALAND ELECTRICITY MARKET ▪ New Zealand Government is conducting a review of REAL RESIDENTIAL ELECTRICITY COST electricity prices c/KWh For personal use only 18 +4% ▪ An initial paper has been released: 15 since 2009 ▪ Energy affordability can be an issue +28% ▪ Low income households need b
Slide 9: Meridian Energy
For personal use only MERIDIAN ENERGY Meridian Energy Limited Investing in New Zealand October 2018 8
Slide 10: About Meridian Energy
ABOUT MERIDIAN ENERGY ▪ NZ$ 8b company, listed in 2013, 51% Government owned For personal use only ▪ Largest and most liquid of five listed New Zealand retailer generators ▪ The only New Zealand electricity company with a customer and asset base diversified across different countries ▪ Strong enviro
Slide 11: About Meridian Energy
ABOUT MERIDIAN ENERGY ▪ New Zealand’s largest generator, all production from renewable sources For personal use only ▪ Seven big hydro stations – flexible plant with the country’s largest storage ▪ With low operating costs and capital needs ▪ Five New Zealand wind farms and proven success operating
Slide 12: Strategic Focus
STRATEGIC FOCUS Champion benefits of competitive Support retail growth & protecting our markets generation legacy For personal use only ▪ Competing vigorously ▪ Contribution of hydro to 100% ▪ Leadership in sustainability in New renewable aspiration Zealand and Australia ▪ Maintaining a best in clas
Slide 13: Shareholder Highlights
SHAREHOLDER HIGHLIGHTS ▪ Five successive years of earnings and dividend EBITDAF $M growth since listing 700 For personal use only 666 650 657 ▪ Double digit shareholder returns every year since 650 listing 618 600 585 ▪ High free cash flow, high payout ratio, progressive ordinary dividend policy 550
Slide 14: New Technologies
NEW TECHNOLOGIES ▪ Solar uptake increasing in New Zealand as economics slowly improve For personal use only ▪ New Zealand residential capacity factors are low (13%-15%) and payback high (13 years) ▪ Commercial solar opportunities are being developed ▪ Grid scale solar unlikely in New Zealand in the
Slide 15: New Technologies
NEW TECHNOLOGIES ▪ Battery value for energy management is in load shifting (high to low price periods) For personal use only ▪ Grid scale unlikely in New Zealand due to large hydro storage ▪ Grid scale possible in Australia with subsidy support ▪ Solar and batteries to achieve residential off-grid i
Slide 16: New Technologies
NEW TECHNOLOGIES ▪ Electric vehicle levels are growing in New Zealand ▪ Government and company fleet conversions For personal use only increasing ▪ Meridian will have converted 80% of its passenger fleet by 2020 ▪ New Zealand uptake dependent on the second- hand import market, so expected to be grad
Slide 17: Meridian's Investment Proposition
For personal use only MERIDIAN'S INVESTMENT PROPOSITION Strong free NZ retail cash flow load Capital Low capital Long term Retail management needs sustainable platform business changes High Income Potential Growth High free Flux Progressive Medium cash flow Powershop ordinary DPS term new payout fra
Slide 18: Disclaimer
DISCLAIMER The information in this presentation was prepared by Meridian Energy with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the informatio
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