Contact Energy Limited · NZX:CEN
Contact Energy — Debt Investor Presentation (February 2014)
24 slides from Contact Energy's debt investor presentation, February 2014
Slide 1: 2014 Retail Bond Offer Investor Presentation
2014 Retail Bond Offer Investor Presentation February 2014 Dennis Barnes, Chief Executive Officer Graham Cockroft, Chief Financial Officer
Slide 2: Agenda
Agenda 2 2014 Retail Bond Offer Investor Presentation February 2014 1 This is Contact Dennis Barnes 2 Financial information Graham Cockroft 3 Bond offer information Graham Cockroft
Slide 3: Bond offer
Bond offer 3 2014 Retail Bond Offer Investor Presentation February 2014 • New Offer of unsecured, unsubordinated fixed rate bonds (“2014 Bonds”) • Seeking to raise up to $200m plus up to $50m of oversubscriptions • Offer will incorporate an Exchange Offer for investors that hold bonds maturing in Ma
Slide 4: This is Contact
4 2014 Retail Bond Offer Investor Presentation February 2014 This is Contact Dennis Barnes
Slide 5: Our core business
Our core business 5 2014 Retail Bond Offer Investor Presentation February 2014
Slide 6: Second largest gas and electricity retailer in New Zealand
Second largest gas and electricity retailer in 6 2014 Retail Bond Offer New Zealand Investor Presentation February 2014 • Second largest electricity retailer Electricity sales by customer type and island in New Zealand 10,000 » Approximately 439,500 8,277 8,280 8,253 commercial and residential 8,000
Slide 7: Owner of a diverse and flexible generation portfolio with over 2,200 MW installed capacity
Owner of a diverse and flexible generation 7 2014 Retail Bond Offer portfolio with over 2,200 MW installed capacity Investor Presentation February 2014
Slide 8: Reducing fuel costs and increasing electricity sales
Reducing fuel costs and increasing electricity sales 8 2014 Retail Bond Offer Investor Presentation February 2014 • Holding market share and customers in one of the most competitive retail electricity markets in the world » Commercial and industrial sales offset lower mass market demand » Increasing
Slide 9: 1H14 results
1H14 results 9 2014 Retail Bond Offer Investor Presentation February 2014 6 months ended Variance compared to 31 December 2013 31 December 2012 1 EBITDAF $264m up 4% from $253m Profit for the period $112m up 27% from $88m Earnings per share (cents) 15.3 cps up 25% from 12.2cps Net items excluded fro
Slide 10: Contact will target further efficiencies to drive growth while lower capital expenditure will increase free cashflow
Contact will target further efficiencies to drive 10 2014 Retail Bond Offer growth while lower capital expenditure will increase Investor Presentation free cashflow February 2014 • Leverage asset base Capital expenditure - projected 600 » Complete Te Mihi Whirinaki » Increase production from 500 pur
Slide 11: Financial information
11 Financial information Graham Cockroft
Slide 12: Earnings and cashflow
Earnings and cashflow 12 2014 Retail Bond Offer Investor Presentation February 2014 EBITDAF and NPAT Operating and investing cashflow 600 600 500 500 400 400 $m $m 300 300 200 200 100 100 0 0 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Prof it f or the period (parent) Prof it f or the period (
Slide 13: Balance sheet
Balance sheet 13 2014 Retail Bond Offer Investor Presentation February 2014 Parent total assets and liabilities Parent shareholders' equity and gearing 7.0 4.0 35% 6.0 3.5 30% net debt/(net debt + equity) 3.0 5.0 25% 2.5 4.0 20% $ bn $ bn 2.0 3.0 15% 1.5 2.0 10% 1.0 1.0 0.5 5% 0.0 0.0 0% FY09 FY10 F
Slide 14: Capital structure
Capital structure 14 2014 Retail Bond Offer Investor Presentation February 2014 • BBB (stable outlook) issuer credit rating from S&P since 2002 » Investment grade rating provides Contact with benefits in terms of access to funding markets and cost of funds » Historically, Contact has raised equity t
Slide 15: Funding portfolio
Funding portfolio 15 2014 Retail Bond Offer Investor Presentation February 2014 • Throughout the 2014 refinancing programme, Contact has maintained a diverse funding portfolio and improved the maturity profile • Post 2014 refinancing, the weighted average tenor of funding facilities will be 4.6 year
Slide 16: Bond offer information
16 2014 Retail Bond Offer Investor Presentation February 2014 Bond offer information Unsecured, unsubordinated, fixed rate bonds Maturing 15 May 2019 Graham Cockroft
Slide 17: Key terms
Key terms 17 2014 Retail Bond Offer Investor Presentation February 2014 Issuer Contact Energy Limited Type of Bond Unsecured, unsubordinated, fixed rate bonds (“2014 Bonds”) Maturity Date 15 May 2019 Final Interest Rate to be set via the Rate Setting Mechanism, as outlined in more detail Interest Ra
Slide 18: Offer summary
Offer summary 18 2014 Retail Bond Offer Investor Presentation February 2014 Size Up to $200m with up to $50m of oversubscriptions Existing Bondholders can exchange their 2009 Bonds for 2014 Bonds on a one-for- one basis The potential interest rates at which investors can elect to exchange some or al
Slide 19: How the Interest Rate will be set
How the Interest Rate will be set 19 2014 Retail Bond Offer Investor Presentation February 2014 • Rate Setting Mechanism as described in SDP • Existing Bondholders presented with three options under the Exchange Offer: » Option 1: Tick the box to apply to exchange ALL their 2009 Bonds at the Final I
Slide 20: Example of Interest Rate set
Example of Interest Rate set 20 2014 Retail Bond Offer Investor Presentation February 2014 A single Interest Rate, for the entire Offer, will be set by the Rate Setting Mechanism and all 2014 Bonds will carry this rate In the event Contact wishes to issue $200m of 2014 Bonds: Example A • Contact rec
Slide 21: Timetable
Timetable 21 2014 Retail Bond Offer Investor Presentation February 2014 SDP registered 18 February 2014 Trading halt commences 19 February 2014 Record Date for Exchange Offer 24 February 2014 Offer opens 26 February 2014 Documents mailed to Existing Bondholders 4 March 2014 Exchange Offer closing da
Slide 22: Business highlights
Business highlights 22 2014 Retail Bond Offer Investor Presentation February 2014 Second largest Owner of a Completion of 166 retailer in New diverse and MW (gross) Te Zealand with flexible generation Mihi power station approximately portfolio with over will end the 566,000 2,200 MW current generati
Slide 23: Any questions?
Any questions?
Slide 24: Disclaimer
Disclaimer 24 2014 Retail Bond Offer Investor Presentation February 2014 A simplified disclosure prospectus dated 18 February 2014 has been prepared by Contact Energy Limited (the "Issuer") in respect of fixed rate, unsecured, unsubordinated bonds (“2014 Bonds”) and registered in accordance with sec
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