Contact Energy Limited · NZX:CEN
Contact Energy — UBS Australasia Conference 2019
8 slides from Contact Energy's conference presentation, Nov 19, 2019
Slide 1: UBS Australasia Conference
UBS Australasia Conference For personal use only November 2019 Putting our energy where it matters
Slide 2: Disclaimer and important information
Disclaimer and important information 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 material
Slide 3: Further information is available online
FURTHER INFORMATION IS AVAILABLE ONLINE For personal use only This presentation has been abridged from the fulsome international investor roadshow presentation delivered during October https://contact.co.nz/aboutus/investor-centre/reports-and-presentations#Presentations Contact Energy / UBS conferen
Slide 4: Tiwai Point Aluminium Smelter
TIWAI POINT ALUMINIUM SMELTER For personal use only Target completion first quarter 2020 Early Lower South Island transmission • Electricity would flow North, in a curtailment upgrade scenario without grid upgrades. Production • Reduced return on thermal assets and lower > Demand growth +4kT¹ Supp
Slide 5: Carbon Reduction Opportunity
CARBON REDUCTION OPPORTUNITY For personal use only With high renewable penetration, electricity is the solution to reducing carbon emissions, not the problem. Meaningful reductions in carbon emissions are possible with renewable electricity displacing carbon intensive fuels. Sources: Productivity Co
Slide 6: Geothermal Potential
GEOTHERMAL POTENTIAL For personal use only Estimated total Operating free capital cost cash flow yield A world-class geothermal * Assumes debt expertise with funded at current consented = rates with an $75-85/MWh wholesale price. brownfield development potential. ~$1bn ~11 to 12 cps Opportunity in o
Slide 7: Focus on Operational Improvement
FOCUS ON OPERATIONAL IMPROVEMENT For personal use only Maintaining financial discipline Rewarding shareholders Controllable opex and capex costs ($m) Ordinary dividends (cps) 391 39 39 357 301 32 272 260 26 26 23 23 19 15 15 Final dividend 13 16 16 11 11 Interim dividend FY16 FY17 FY18 FY19 FY20 tar
Slide 8: Dividend Policy Certainty
DIVIDEND POLICY CERTAINTY For personal use only Balance sheet capacity Distribution Ordinary policy dividend 376 Headroom to BBB ($m) Ordinary S&P net debt ($m) 39 cps dividend of 2.8x Assuming medium-term EBITDAF of $480m Net debt to EBITDAF At the closing share 968 of expected Operating price on 1