Meridian Energy Limited · NZX:MEL
Meridian Energy — Investor Presentation (March 2022)
18 slides from Meridian Energy's investor presentation, Mar 8, 2022
Slide 1: Meridian Energy Investor Presentation release
Release For personal use only Stock Exchange Listings NZX (MEL) ASX (MEZ) Meridian Energy Investor Presentation 8 March 2022 Attached is a presentation Meridian Energy is making to the New Zealand Shareholders’ Association. ENDS Neal Barclay Chief Executive Meridian Energy Limited For investor relat
Slide 2: Meridian Energy Presentation 8 March 2022
For personal use only Meridian Energy Presentation 8 MARCH 2022 Construction at Meridian Energy’s latest wind farm, Harapaki, near Napier
Slide 3: About Meridian
About Meridian NZ$13b company, one of NZ’s largest listed companies, 51% Government owned HARAPAKI For personal use only (construction) Largest of five listed NZ retailer generators New Zealand’s largest generator, all production from renewable sources Seven big hydro stations – flexible pla
Slide 4: Governance
Governance Mark Cairns Michelle Henderson Chair of Safety & Safety & Sustainability Sustainability Committee Committee member For personal use only Freightways Chair (1 April) Audit & Risk Committee Sanford Director member Fulton Hogan Director (unlisted) Jan Dawson Nagaja Sanatkumar C
Slide 5: Strategy
Strategy Clean energy for a fairer and healthier world Champion Optimise Grow initiatives 5-year use Strategic only Competitive markets Trading & asset management Retail Sustainability Re-consenting Generation Climate action Financing Flux Grow a clear sustainability leadership NZ’s highest customer
Slide 6: Sustainability
Sustainability Our Material Topics 2030 emissions target (scope 1-3) tCO2e Environmental Social Governance 47,279 actual target For personal use only 50,000 Action on climate change Electricity pricing Sustainability leadership 44,359 Halving 2019 Pipeline of generation Support for vulnerable Good g
Slide 7: Social focus
Social focus Local communities Long term relationships, community relationship For personal use only managers $9M of local project support over 14 years Iwi Recognise the mana whenua of Ngāi Tahu Close association with local rūnaka Focus on strengthening our iwi partnerships KidsCan $1M
Slide 8: Financial performance
Financial performance Double digit shareholder returns every year since Total shareholder return For personal use only 80% listing 60% Sustained earnings through that period 60% High free cash flow, high payout ratio, stable 36% 40% 33% ordinary dividend 20% 19% Balance sheet headroom to fun
Slide 9: Dividends and capital structure
Dividends and capital structure Ordinary dividends generally imputed to around Dividend declared For personal use only CPS 85% Interim ordinary dividend Final ordinary dividend Special dividend Total 25 Active dividend reinvestment plan 21.30 18.91 19.20 19.34 Recent changes to Dividend Policy
Slide 10: Retail initiatives
Retail initiatives Certified Renewable Energy 60 customers now with Meridian’s Certified Renewable For personal use only Energy product Net proceeds of the product will be reinvested back into decarbonisation projects Energy hardship Developing a new and more comprehensive energy hardship solu
Slide 11: NZAS contract termination
NZAS contract termination NZAS consumes For personal use only around 12% of the electricity produced in NZ Current contract terminates 31 December 2024 NZAS makes the purest aluminium in the world NZAS has one of the lowest carbon footprints of an aluminium smelter in the world Compared to a
Slide 12: NZAS contract termination - mitigation
NZAS contract termination - mitigation NZAS contract For personal use only 14 Jan May 21 Aug 21 1 Jan Feb 22 1 Jan 1 Jan 31 Dec investor annual interim 2021 day 2022 results 2023 2024 2024 results Meridian portfolio response Lower South Island on on 1,180 MW completion transmission schedule schedule
Slide 13: Future generation
Future generation Electricity demand in New Zealand could grow by For personal use only up to 150% by 2050 $40b or more of investment in new generation could be needed Existing, aging thermal generation will need to be replaced The market will need to build the equivalent of one Harapaki eve
Slide 14: Renewable development pipeline
Renewable development pipeline Utility scale solar development announced to For personal use only complement battery at Ruākākā Energy Park Assessments continuing on additional solar sites, land option acquired at Bunnythorpe 20 potential new wind and solar development options Meridian’s curre
Slide 15: Harapaki wind farm construction
Harapaki wind farm construction Site located 50km north of Napier on SH5 Will be NZ’s second largest and highest elevated wind For personal use only farm, powering 70,000 households Site enabling and mobilisation works completed in September 2021 A wet spring and early summer has impacted ea
Slide 16: Closing comments
Closing comments Lower NZAS pricing has been absorbed For personal use only Dividend growth with higher FY22 interim dividend Bulk of the MEA sale proceeds are earmarked for future NZ investment Competing hard for retail growth and lots more new generation options are our focus Sound progr
Slide 17: 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 18: Disclaimer
Disclaimer The information in this presentation was prepared by Meridian Energy with they are not defined by GAAP or IFRS, Meridian's calculation of these due care and attention. However, the information is supplied in summary measures may differ from similarly titled measures presented by other For