Meridian Energy Limited · NZX:MEL
Meridian Energy — Shareholder Meeting (October 2019)
30 slides from Meridian Energy's shareholder meeting presentation, Oct 17, 2019
Slide 1: 2019 Annual Shareholder Meeting
2019 Annual Shareholder Meeting 17 OCTOBER 2019
Slide 2: Order of business
Order of business Chair’s address Chief Executive’s review Shareholder questions Resolutions and voting 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 2
Slide 3: Chair's address
Chair’s address 17 OCTOBER 2019 2 0 1 9 AN N U AL S H AR E H O L D E R M E E T I N G 3
Slide 4: Clean energy
Clean energy Clean energy for a fairer and healthier world Net zero carbon across our operations First to launch renewable energy certificates First to report on climate change risks 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 4
Slide 5: Fairer and healthier world
Fairer and healthier world Electricity Price Review Removal of prompt payment discount Initiatives to assist low income households 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 5
Slide 6: Transmission pricing methodology (TPM)
Transmission pricing methodology (TPM) Electricity Authority believes current charging regime is unfair and results in inefficient outcomes Meridian supports the Electricity Authority’s plan to deliver reforms 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 6
Slide 7: Shareholder results
Shareholder results EBITDAF1 A record result $M 900 26% increase in EBITDAF1 838 800 69% increase in net profit after tax 666 New Zealand’s largest listed 700 618 650 657 company 600 500 2015 2016 2017 2018 2019 Financial Year ended 30 June Source: Meridian 1 earnings before interest, tax, d
Slide 8: Your Board
Your Board Standing for re-election Standing for election Resigning Jan Dawson Julia Hoare Steve Reindler (Aug 2018) Michelle Henderson Mary Devine (today) Nagaja Sanatkumar Chris Moller (today) New Chair Mark Verbiest (today) 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E T
Slide 9: Reflections
Reflections 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 9
Slide 10: Acknowledgments
Acknowledgments 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 10
Slide 11: Chief Executive's review
Chief Executive’s review 17 OCTOBER 2019 2 0 1 9 AN N U AL S H AR E H O L D E R M E E T I N G 11
Slide 12: People
People Workforce measures Changes in the Executive 120% FY19 FY18 98% gender pay equity 90% 98% 98% YWCA equal pay award 77% 78% Gender Tick accreditation 60% 45% 42% Targeting 40% of women in 30% 35% 33% leadership and senior specialist 0% positions by 2020 Women in the Women in Engagemen
Slide 13: Safety
Safety Total recordable injury frequency rate1 8 LTI injuries in FY19, highest in 10 years 5.0 Meridian employees Meridian on-site contractors Specialist external advice to ensure 4.0 3.6 4.0 our safety is at the highest level 3.1 3.0 2.7 2.0 1.7 1.8 1.3 1.2 1.0 0.7 0.2 0.0 FY15 FY16 FY17 FY18 F
Slide 14: Our customers
Our customers New Zealand customer connections Customer number and sales volume ICP (000) growth across all segments (except 350 Meridian Powershop Total 302 Agri sales) 300 276 275 277 291 66 74 56 56 59 250 Headlined by 4% sales growth in 220 219 218 225 228 200 both residential and small medi
Slide 15: Drivers of retail value
Drivers of retail value NPS - difference to industry average Increasing NPS1, declining churn Meridian Powershop rates 50 +43 +41 6% lower cost to serve per customer +33 34k Meridian customers migrated to 25 the Flux platform, expecting 60k by higher December 2019 +6 +2 not measured 0 2017 201
Slide 16: Generation
Generation Record hydro generation year NZ average generation price $/MWh despite only 104% of average inflows 140 123 and plant refurbishment 120 100 83 High wholesale electricity prices from 68 80 gas supply issues 60 57 51 40 20 0 2015 2016 2017 2018 2019 Financial Year ended 30 June Source:
Slide 17: Australia
Australia Powershop Australia net customer Strong customer acquisition in FY19 changes following acquisition of further 4,000 electricity gas generation 3,500 3,000 State and Federal default offers 2,500 came into effect in July 2019 2,000 1,500 Wholesale electricity prices are 1,000 volatile
Slide 18: New Zealand's Aluminium Smelter
New Zealand’s Aluminium Smelter Tiwai smelter is 12% of national demand Financial contract with Meridian on NZAS perpetual 12-month termination right Additional 50MW contract signed in May 2018, bringing contract volume to 622MW Aluminium remains a commodity exposed to cycles and Chinese sup
Slide 19: Looking forward
Looking forward Meridian's Waitaki storage Customer growth in all geographies GWh FY2019 FY2018 is continuing 2,500 FY2020 85 year average Wholesale electricity prices remain 2,000 higher than normal as storage is falling 1,500 Gas markets remain tight, further gas field outages are planned 1,
Slide 20: Tribute to our Chair
Tribute to our Chair 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 20
Slide 21: Shareholder questions
Shareholder questions 17 OCTOBER 2019 2 0 1 9 AN N U AL S H AR E H O L D E R M E E T I N G 21
Slide 22: Resolutions and voting
Resolutions and voting 17 OCTOBER 2019 2 0 1 9 AN N U AL S H AR E H O L D E R M E E T I N G 22
Slide 23: Resolution 1: Re-election of Jan Dawson
Resolution 1 Re-election of Jan Dawson That Jan Dawson, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 23
Slide 24: Resolution 2: Election of Julia Hoare
Resolution 2 Election of Julia Hoare That Julia Hoare (appointed as a Director of the Company by the Board with effect from 26 September 2019), who retires and is eligible for election, be elected as a Director of the Company 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI
Slide 25: Resolution 3: Election of Michelle Henderson
Resolution 3 Election of Michelle Henderson That Michelle Henderson (appointed as a Director of the Company by the Board with effect from 16 October 2019) who retires and is eligible for election, be elected as a Director of the Company 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D
Slide 26: Resolution 4: Election of Nagaja Sanatkumar
Resolution 4 Election of Nagaja Sanatkumar That Nagaja Sanatkumar (appointed as a Director of the Company by the Board with effect from 1 January 2020) be elected as a Director of the Company 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 26
Slide 27: Resolution 5: Amendments to the Company's constitution
Resolution 5 Amendments to the Company’s constitution That the Company’s constitution be revoked and a new constitution, in the form presented at the 2019 ASM, be adopted, with effect from the close of the ASM 1 7 O C TO B E R 2 0 1 9 2 0 1 9 A N N U A L S H A R E H O L D E R ME E TI N G 27
Slide 28: Proxy totals
Proxy totals Re-election of Election of Election of Election of Amendments Jan Dawson Julia Hoare Michelle Nagaja to the Henderson Sanatkumar Company’s constitution Postal and online votes already cast For 603,224,289 579,171,322 606,339,810 606,157,720 605,948,087 Against 3,309,136 27,045,360 544,7
Slide 29: Closing
Closing 17 OCTOBER 2019 2 0 1 9 AN N U AL S H AR E H O L D E R M E E T I N G 29
Slide 30: Disclaimer
Disclaimer The information in this presentation was prepared by Meridian Energy This presentation contains a number of non-GAAP financial measures, with due care and attention. However, the information is supplied in including Energy Margin, EBITDAF, Underlying NPAT and gearing. summary form and is