Meridian Energy Limited · NZX:MEL
Meridian Energy — Debt Investor Presentation (March 2024)
28 slides from Meridian Energy's debt investor presentation, March 2024
Slide 1: Green Bond Offer
Meridian Energy Limited Green Bond Offer Joint Arranger, Green Bond Co- Joint Arranger, Joint Lead Joint Lead Managers: Ordinator, Joint Lead Manager: Manager: MARCH 2024
Slide 2: Important Notice
Important Notice This presentation has been prepared by Meridian Energy Limited (Meridian) in relation to its offer of unsecured, unsubordinated fixed rate green bonds maturing on 21 March 2030 (Green Bonds) (Offer). The Offer of Green Bonds is made in reliance upon the exclusion in clause 19 of sch
Slide 3: Offer Highlights
Offer Highlights M AR CH 2 02 4 R E TAI L B ON D OFFE R 3
Slide 4: Offer Highlights
Offer Highlights Issuer Meridian Energy Limited (Meridian). 6 year unsecured, unsubordinated, fixed rate green bonds (Green Bonds). Description The Green Bonds are Green Debt instruments under Meridian’s Green Finance Framework dated February 2023 (as amended from time to time) and are certified by
Slide 5: About Meridian
About Meridian M AR CH 2 02 4 R E TAI L B ON D OFFE R 5
Slide 6: About Meridian
About Meridian § New Zealand’s largest generator, all production from renewable sources 372,000 customers § Seven big hydro stations – flexible plant with the country’s largest storage § Low stay in business capital requirements § Five New Zealand wind farms, with the first built in 2004 § Currently
Slide 7: New Zealand Electricity Market
New Zealand Electricity Market 31 January 2024 5 major generators (all listed, 3 1 transmission grid 1 very large industrial user 29 electricity 40 retailers Over 2 million customer majority Government owned) owner (state owned) (Rio Tinto/Sumitomo distribution businesses consumers smelter), ~13% of
Slide 8: New Zealand Electricity Market continued
New Zealand Electricity Market continued § A reliable, affordable and environmentally sustainable electricity system § A well functioning competitive market with a high level of renewable resources and rational competition § Vertical integration is the prevailing market structure § Wholesale and ret
Slide 9: Energy Policies from the New Coalition Government
Energy Policies from the New Coalition Government Energy policy § Cease work on Onslow pumped hydro § Repeal offshore oil and gas exploration ban § Net Zero by 2050 reiterated with doubling of renewable electricity included Climate change § Stop the current review of Emissions Trading Scheme § Maint
Slide 10: Energy Policies from the New Coalition Government continued
Energy Policies from the New Coalition Government continued Hydrogen and other fuels § Plan for transitional low carbon fuels including hydrogen infrastructure § A Hydrogen National Policy Statement to be introduced to provide investment certainty Resource Management Act (RMA) reform § Repeal Natura
Slide 11: Renewable Growth
Renewable Growth Annual Market Demand for Generation TWh history range of future growth outcomes 70 $30+ 65 billion of new generation 60 investment by 2050 55 Source: Meridian 50 Harapaki wind farm Carbon neutral, stable 45 on schedule operational emissions 40 7 in 71 35 20 in 282 30 1997 2000 2003
Slide 12: Meridian's Strategy
Our strategy Meridian’s map Strategy Te kaupapa Our purpose Clean energy for a fairer and healthier world Te rautaki Our strategy An all-encompassing focus on climate action Te kaupapa matua Our priorities Grow renewable Deliver cleaner, Deliver operational Grow capability generation cheaper energy
Slide 13: Meridian's Renewable Development Pipeline
Meridian’s Renewable Development Pipeline § 4.9GW (11TWh) of development options § 2.1GW secured, 2.8GW in advanced prospects M ARCH 20 24 RE T AI L B ON D OFFE R 13
Slide 14: Harapaki Wind Farm – Hawke's Bay
Harapaki Wind Farm – Hawke’s Bay § $448M capital costs § 176MW capacity / 542GWh generation § To power the equivalent of 70,000 homes § Local iwi are an integral part of our team § Sustainability focus to design out emissions § 20 turbines commissioned M ARCH 20 24 RE T AI L B ON D OFFE R 14
Slide 15: Portfolio Response
Portfolio Response NZAS contract termination toresponse portfolio NZAS Contract Termination 14 JAN 2021 1 JAN 2022 1 JAN 2023 1 JAN 2024 31 DEC 2024 NZAS contract May 21 Investor Day August 21 Annual Results Feb 22 Interim Results August 22 Annual Results Feb 23 Interim Results August 23 Annual Resu
Slide 16: Climate Action Plan
Climate Action Plan Our Meridian’s purpose of Clean energy for a fairer and healthier world is at purpose the centre of everything we do on our journey to a resilient, net zero future. Our Renewable Customer Managing our emissions priorities generation decarbonisation and ensuring resilience Our key
Slide 17: Our Leading Sustainability Performance
Our Leading Sustainability Performance Half by 30 2030 We are focuse our gross ope emissions by h Where we can’t reduce our ope * Meridian’s operational emission boundary includes al Green Greenhouse Our Finance Gas Emissions Framework Inventory Half by 30 Report focus areas Land Transport This plan
Slide 18: Financial Information and Capital Structure
Financial Information and Capital Structure M AR CH 2 02 4 R E TAI L B ON D OFFE R 18
Slide 19: Financial Performance
Financial Performance Meridian's interim reporting date is 31 December and final half year date and financial year end date is 30 June EBITDAF1 Net Profit after Tax (continuing operations) Capital Expenditure (NZ Operations) $M Interim Final half-year Total $M Interim Final half-year Total $M Interi
Slide 20: Funding
Funding § Diverse sources of funding Debt Maturity Profile as at 31 December 2023 $M 600 § Total borrowings as at 31 December 2023 Drawn debt maturing (face value) Available facilities maturing 125 of $1,391M1 400 § Committed bank facilities of $650M, of which $601M were undrawn 200 75 435 120 439 2
Slide 21: Credit Rating and Covenants
Credit Rating and Covenants § Meridian targets a long-term credit rating of Key Metrics 2019 2020 2021 2022 2023 BBB+ Financial Year ended 30 June $M Share capital 1,599 1,598 1,595 1,671 1,700 § Issuer Credit Rating: BBB+/Stable (S&P Global Retained earnings -1,171 -1,542 -1,548 -1,242 -1,600 Ratin
Slide 22: Green Finance Programme
Green Finance Programme M ARCH 20 24 RE T AI L B ON D OFFE R 22
Slide 23: Key Terms and Dates
Key Terms and Dates M AR CH 2 02 4 R E TAI L B ON D OFFE R 23
Slide 24: Key Terms
Key Terms Issuer Meridian Energy Limited (Meridian). 6 year, unsecured, unsubordinated, fixed rate green bonds (Green Bonds). Description The Green Bonds are Green Debt instruments under Meridian’s Green Finance Framework dated February 2023 (as amended from time to time) and are certified by the Cl
Slide 25: Key Terms continued
Key Terms continued The Trust Documents contain the following financial covenants: a) the ratio of EBITDA of the Group to Interest and Financing Costs must not be less than 2.5 times; b) at all times Debt will not be more than 55% of Debt plus Equity; Financial Covenants c) at all times Equity will
Slide 26: Key Dates
Key Dates Opening Date Monday, 11 March 2024 Closing Date 11.00am NZDT, Thursday, 14 March 2024 Rate Set Date Thursday, 14 March 2024 Issue Date and Allotment Date Thursday, 21 March 2024 Expected Date of initial Friday, 22 March 2024 quotation on NZX Debt Market 21 March and 21 September of each ye
Slide 27: Why Meridian?
Why Meridian? quality, high free strong credit balance strong deep scale assets cash flow rating sheet growth renewable headroom outlook development pipeline H2 Renewable energy generation Customer decarbonisation New markets Building on our existing 100% renewable We are committed to providing tang
Slide 28: Disclaimer
Disclaimer The information in this presentation was prepared by Meridian with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the information. To t
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