Meridian Energy Limited · NZX:MEL
Meridian Energy — Investor Presentation (November 2024)
29 slides from Meridian Energy's investor presentation, Nov 1, 2024
Slide 1: Meridian Energy Investor Presentation release
Release Stock Exchange Listings NZX (MEL) ASX (MEZ) Meridian Energy Investor Presentation 1 November 2024 Attached is a presentation Meridian Energy will be making at a series of investor meetings during November. For personal use only ENDS Neal Barclay Chief Executive Meridian Energy Limited For in
Slide 2: 2024 Investor Presentation
MERIDIAN ENERGY LIMITED November 2024 2024 For personal use only Investor Presentation
Slide 3: Why Meridian?
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 2 Why Meridian? For personal use only Meridian’s completed Harapaki Wind Farm in Hawke’s Bay
Slide 4: Leading sustainability performance
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 3 Why Meridian? For personal use only Leading sustainability performance. Green Finance Climate-related Disclosures Framework Aotearoa New Zealand Climate Standards NZ CS 1, NZ CS 2, NZ CS 3 Greenhouse Gas Emissions Inventory July 2022 1 Repor
Slide 5: High quality investment
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 4 Why Meridian? For personal use only High quality investment. quality, scale high free cash progressive balance sheet strong growth deep assets flow ordinary headroom outlook renewable dividend development pipeline
Slide 6: New Zealand electricity market
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 5 New Zealand electricity market For personal use only Meridian’s Benmore hydro station in the Mackenzie Basin, South Canterbury
Slide 7: NZ electricity market
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 6 NZ electricity market For personal use only A reliable, affordable and environmentally sustainable electricity system. A well functioning competitive market with high level of renewable resources and rational competition. Vertical integratio
Slide 8: New Zealand gas production and hydro storage
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 7 New Zealand gas production NZ electricity market PJ 300 actual forecast 250 For personal use only Hydro generation is managed against limited controlled 200 storage. 150 Bulk of hydro inflow is anti-correlated to winter 100 demand peak. 50 0
Slide 9: NZ electricity market structure
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 8 NZ electricity market For personal use only 5 major generators (all listed, 3 1 transmission grid 29 distribution 1 large industrial user (Rio 40 retail brands 2.3 million majority Govt owned), proposed owner (state owned) businesses (variou
Slide 10: NZ electricity market pricing
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 9 NZ electricity market pricing Meridian average generation price Benmore ASX futures settlement price $/MWh $/MWh 30 June 2023 28 June 2024 For personal use only 200 500 31 July 2024 30 August 2024 400 30 September 2024 150 300 100 173 171 20
Slide 11: NZ electricity market decarbonisation opportunity
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 10 NZ electricity market decarbonisation opportunity 2022 greenhouse gas emissions by sector For personal use only Agriculture 3% 1% Transport 5% 6% Manufacturing & construction 6% Heat production/other 78.4 Industrial processes 8% MtCO2e 53%
Slide 12: NZ electricity market projected demand
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 11 NZ electricity market projected demand Annual NZ Demand for Generation For personal use only By 2050 New Zealand will require around $30 GWh billion of investment in new renewable generation. 75,000 Consenting under the current Resource 70,
Slide 13: About Meridian
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 12 About Meridian For personal use only Maintenance work at Meridian’s West Wind Farm near Wellington
Slide 14: About Meridian: total shareholder return
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 13 About Meridian 374,000 Total shareholder return For personal use only customers Meridian TSR NZX50 Index 60% 40% 60% 20% 36% 33% 20% 19% 25% 15% 12% 17% 10% 0% -8% -20% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Financial Year e
Slide 15: About Meridian
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 14 About Meridian For personal use only New Zealand’s largest generator, all production from renewable sources. Seven big hydro stations – flexible plant with the country’s largest storage. With low operating costs and capital needs. Six New Z
Slide 16: For personal use only
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 15 For personal use only
Slide 17: For personal use only
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 16 For personal use only
Slide 18: Investment in a low carbon future
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 17 Investment in a low carbon future physical -$27M financial +$172M $2B invested into new and existing assets in the last 10 For personal use only years. Stable returns on assets and equity (3%-5% per annum). New generation investment of $3B
Slide 19: Waitaki reconsenting
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 18 Waitaki reconsenting For personal use only Re-consent application lodged for the Waitaki Hydro Scheme. Will be the largest consent ever granted under the RMA. Waitaki Hydro Scheme consists of eight power stations and provides 18% of this co
Slide 20: The value of hydro storage
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 19 The value of hydro storage Annual Price Participation For personal use only 140% History Waitaki chain Manapōuri Wind Solar 130% 120% GWAP/TWAP 110% 100% 90% 80% 70% 60% 50% 2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050 F
Slide 21: Future retail value pools
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 20 Future retail value pools Potential annual EBITDAF uplift1 ($M) for Meridian by innovation value pool for 2030 and steady state (assuming 30% market share) For personal use only Value pool estimate in 2030 Incremental value in pool in 2040
Slide 22: Meridian's decarbonisation
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 21 Meridian’s decarbonisation For personal use only ‘Half by 2030’ operational emissions reduction target. Target of net carbon zero by 2050. Continued inclusion in the Dow Jones Asia Pacific Sustainability Index. Meridian Zero electric vehicl
Slide 23: Delivering cleaner, cheaper energy
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 22 Delivering cleaner, cheaper energy For personal use only $5 million Energy Wellbeing Programme helping 5,000 households out of energy hardship. Process Heat Electrification Programme expected to support the removal of 140,000 tCO2e annually
Slide 24: Ground-breaking agreements with NZAS
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 23 Ground-breaking agreements with NZAS For personal use only 20-year term has removed uncertainty for the electricity sector and the people of Southland. Agreements include demand response provisions to help manage low hydro storage condition
Slide 25: Dividends
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 24 Dividends Total dividends declared For personal use only Recent change to an operating free cash flow-based cps Ordinary dividends Special dividends dividend policy. 25 FY24 final ordinary dividend of 14.85cps (+25% on 20 2.44 FY23), 80% im
Slide 26: Financial performance
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 25 Financial performance EBITDAF Net profit after tax (continuing operations) Operating cash flows $M $M $M For personal use only 1,000 500 800 800 400 600 600 300 400 905 415 451 429 667 400 787 709 783 200 604 692 509 200 431 461 200 100 175
Slide 27: Financial metrics
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 26 Financial metrics For personal use only Source: Meridian
Slide 28: Thank you
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 27 Thank you For personal use only Container installation at Meridian’s Ruakākā Battery Energy Storage system near Whangārei
Slide 29: Disclaimer
2024 NOVEMBER PRESENTATION November 2024 MERIDIAN ENERGY 28 Disclaimer The information in this presentation was prepared by Meridian Energy with companies and they should not be considered in isolation from, or construed For personal use only due care and attention. However, the information is suppl
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