Contact Energy Limited · NZX:CEN
Contact Energy — Non-Deal Roadshow (October 2019)
12 slides from Contact Energy's roadshow presentation, Oct 10, 2019
Slide 1: Governance Roadshow
For personal use only G OV E R NA N C E ROA D S H OW Auckland, Wellington, Sydney OCTOBER 2019 1
Slide 2: Corporate Governance Principles
C O R P O R AT E G OV E R NA N C E P R I N C I P L E S For personal use only E F F E C T I V E C O R P O R AT E G O V E R N A N C E I S A N I M P O R TA N T I N G R E D I E N T F O R T H E L O N G - T E R M S U C C E S S O F C O M PA N I E S A N D T H E I R I N V E S T O R S Oversight of Strategy &
Slide 3: Board of Directors
B OA R D O F D I R E C TO R S For personal use only THE BOARD REPRESENT THE INTERESTS OF THEIR SHAREHOLDERS AND MAKE C R I T I C A L D E C I S I O N S A B O U T A C O M P A N Y ' S L E A D E R S H I P, I T S S T R A T E G Y, A N D T H E R I S K S T H AT C O U L D C R E AT E O B S TA C L E S T O I T
Slide 4: Board of Directors cont.
B OA R D O F D I R E C TO R S For personal use only C O N T. STRATEGIC FOCUS EXPERTISE Customer Next generation customer experience Wholesale Energy sector, including regulation, generation and renewable energy Physical infrastructure Capital markets – investment community knowledge and connections
Slide 5: Board Composition
B OA R D C O M P O S I T I O N REGULAR PERFORMANCE REVIEWS, COMPLEMENTED BY A ROBUST SELECTION PROCESS, For personal use only E N S U R E A L I G N M E N T O F T H E B O A R D ’ S S K I L L S W I T H T H E C O M PA N Y ’ S S T R AT E G I C F O C U S Board of 3. VOTING PROCESS 1. DIRECTOR CHANGES Dir
Slide 6: Oversight of Strategy & Risk
OV E R S I G H T O F S T R AT E G Y & R I S K R I S K M A N A G E M E N T F R A M E W O R K E N A B L E S T H E B O A R D T O S E T A N A P P R O P R I AT E R I S K For personal use only S T R AT E G Y A N D E N S U R E T H AT R I S K I S M A N A G E D T H R O U G H T H E O R G A N I S AT I O N Boar
Slide 7: Governance Structures
G OV E R NA N C E S T RU C T U R E S T O E M P O W E R S H A R E H O L D E R S A N D E N S U R E A C C O U N TA B I L I T Y For personal use only SHAREHOLDERS Two-way communication • Giving shareholders a voice and a vote on governance matters • Annual meeting where shareholders can BOARD OF DIRECTO
Slide 8: Incoming Chief Executive
INCOMING CHIEF EXECUTIVE PROVEN LEADER WITH A STRONG TRACK RECORD IN RENEWABLE ENERGY For personal use only EXECUTIVE REMUNERATION ($000s) MICHAEL FUGE 2,473 • Mike will join Contact in Q1 2020 after an 2,500 403 Equity 2,024 Long-term incentive extensive international search 2,000 242 345 Equity •
Slide 9: Executive Management Team
E X E C U T I V E M A NAG E M E N T T E A M C O N TA C T I S L E D B Y A N E X P E R I E N C E D A N D D I V E R S E L E A D E R S H I P T E A M W H O I S For personal use only COMMITTED TO OUR CUSTOMERS, SHAREHOLDERS AND PEOPLE • Two new appointments delivering a diverse capability set and mix of t
Slide 10: Why Own Contact?
W H Y OW N C O N TAC T ? T H E I N V E S T M E N T O P P O R T U N I T Y I N O U R C O R E M A R K E T S I S S I G N I F I C A N T, W I T H For personal use only GOOD VISIBILITY ON PROJECTS TO DELIVER CASHFLOW GROWTH Latent potential with Strong cash ESG credentials world-class flow generation geoth
Slide 11: Strong Financial Track Record
S T RO N G F I NA N C I A L T R AC K R E C O R D For personal use only EBITDAF ($m) OPERATING FREE CASH FLOW ($m) DISTRIBUTIONS ($m) 557 Buyback 525 523 518 Special 501 481 Ordinary 338 353 341 367 305 301 286 280 229 100 186 191 186 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 F
Slide 12: Distribution Policy
D I S T R I BU T I O N P O L I C Y DISTRIBUTION POLICY PROVIDES CLARITY TO INVESTORS AND DRIVES For personal use only A S T R O N G C A P I TA L D I S C I P L I N E FY19 Balance sheet Distribution policy Ordinary dividend capacity Ordinary dividend of 376 2.8x 100% = 39cps Net debt to EBITDAF² 968 $