Contact Energy Limited · NZX:CEN
Contact Energy — Debt Investor Presentation (November 2011)
30 slides from Contact Energy's debt investor presentation, Nov 11, 2011
Slide 1: ASX cover note: Contact Energy Capital Bond Offer roadshow presentation
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 11 November 2011 From Helen Hardy Pages 30 Subject CONTACT ENERGY CAPITAL BOND OFFER – ROADSHOW PRESENTATION Attached herewith is a copy of an announcement released to the NZX by Contact Energy toda
Slide 2: Capital Bond offer - Roadshow presentation
Capital Bond offer For personal use only Roadshow presentation Arranger & Joint Lead Manager Joint Lead Managers Co-Manager November 2011
Slide 3: Overview
Overview For personal use only Offer summary 2 Strategic outlook and overview 4 Financial information 10 The Capital Bonds 16 Offer structure 22 © Contact Energy Limited November 2011 Capital Bond roadshow presentation 2
Slide 4: Offer summary
Offer summary For personal use only Issuer Contact Energy Limited (“Contact Energy”) Use of Proceeds General corporate purposes Ranking The Capital Bonds are unsecured and subordinated to all indebtedness of Contact Energy other than indebtedness ranking equally with, or subordinate to, the Capital
Slide 5: Strategic outlook and overview
Overview For personal use only Offer summary 2 Strategic outlook and overview 4 Financial information 10 The Capital Bonds 16 Offer structure 22 © Contact Energy Limited November 2011 Capital Bond roadshow presentation 4
Slide 6: For personal use only
For personal use only ( © Contact Energy Limited November 2011 Capital Bond roadshow presentation 5
Slide 7: Contact Energy – Existing generation portfolio
Contact Energy – Existing generation portfolio For personal use only © Contact Energy Limited November 2011 Capital Bond roadshow presentation 6
Slide 8: Contact Energy - Retail electricity business
Contact Energy - Retail electricity business For personal use only • Second largest electricity retailer in New Zealand Contact Energy’s load split by customer type and island – Approximately 447,000 customers (sales) – Supplies electricity to commercial and residential 10,000 customers 8,254 – Dive
Slide 9: Contact Energy – Three key strategies for growth
Contact Energy – Three key strategies for growth For personal use only Lower average cost Market share growth of generation – 166 MW Te Mihi in construction Increasing portfolio flexibility – Gas storage – Stratford peakers – Gas portfolio changes © Contact Energy Limited November 2011 Capital Bond
Slide 10: Contact Energy's options position it well for the future
Contact Energy’s options position it well for the future For personal use only • Contact Energy has a geothermal development pipeline of over 400 MW including projects in construction, consented and in exploration – Geothermal generation can be complex to consent requiring world class science and la
Slide 11: Financial information
Overview For personal use only Offer summary 2 Strategic outlook and overview 4 Financial information 10 The Capital Bonds 16 Offer structure 22 © Contact Energy Limited November 2011 Capital Bond roadshow presentation 10
Slide 12: Generation and revenue
Important note regarding financial information: The financial information set out in this section contains some financial and operational data for the entire Contact Energy Group. However, Contact Energy Limited is the sole obligor under the Capital Bonds and no other member of the Contact Energy Gr
Slide 13: Earnings and cashflows
Earnings and cashflows For personal use only EBITDAF and NPAT Operating and investing cashflows 700 500 600 400 500 300 $ million $ million 400 300 200 200 100 100 0 0 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 EBITDAF (parent) EBITDAF (group) Operating cashflow (cash in) (parent) Operating c
Slide 14: Balance sheet
Balance sheet For personal use only Parent total assets and liabilities Parent shareholders’ equity 6,000 3,500 35 3,000 30 5,000 2,500 25 4,000 $ million 2,000 20 $ million % 3,000 1,500 15 2,000 1,000 10 1,000 500 5 0 0 0 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 Total assets* Total liabil
Slide 15: Capital structure
Capital structure For personal use only • BBB (stable outlook) issuer credit rating from Parent capital structure (30 June 2011) Standard and Poor’s since 2002 Borrowings, Shareholders' $1,085m – Benefits in the wholesale electricity and gas markets equity, of maintaining an investment grade credit
Slide 16: Maturity profile
Maturity profile For personal use only • Total borrowings of $1.11 billion at 30 June 2011 Parent maturity profile3 (parent) 700 – Bonds 600 – $550m retail bond (matures 2014) 500 $ million – $100m wholesale bond (matures 2017) 400 300 200 – US Notes 100 – US$330m (NZD equivalent $587m2) 0 FY12 FY13
Slide 17: The Capital Bonds
Overview For personal use only Offer summary 2 Strategic outlook and overview 4 Financial information 10 The Capital Bonds 16 Offer structure 22 © Contact Energy Limited November 2011 Capital Bond roadshow presentation 16
Slide 18: Equity credit
Equity credit For personal use only • Capital Bonds structured to achieve 100% equity credit from Standard & Poor’s – Subordinated – 30 year tenor (Standard & Poor’s requires at least 20 years remaining to gain 100% equity credit) – 0.25% step-up at year five (maximum permitted by Standard & Poor’s
Slide 19: Interest payments
Interest payments For personal use only • Interest rate – The Minimum Interest Rate will be not less than 8% – Interest rate for the period until the first Reset Date (15 February 2017) and the Margin is to be set by bookbuild on 22 November – Interest rate resets every five years at the then Benchm
Slide 20: Redemption
Redemption For personal use only • Redeemable early by Contact Energy – On the first Reset Date (15 February 2017) and any Interest Payment Date thereafter – If a Tax Event, Rating Agency Event or Change of Control Event occurs (see next page) – If there is less than $75 million of Capital Bonds on
Slide 21: Change of control
Change of control For personal use only • A Change of Control Event is, in summary – An entity controls more than 50% of the control of voting rights of Contact Energy (or in the case of Origin Energy 90% or more) • Issuer Call – Contact Energy will have the right to call the Capital Bonds upon a Ch
Slide 22: Comparison of instruments
Comparison of instruments For personal use only Contact Genesis IAG New Zealand Vector Perpetual Capital Bonds Capital Bonds Subordinated Post Notes Capital Shares Bonds Bonds (old Tier I) Form Subordinated Subordinated Subordinated Subordinated Subordinated Preference Debt Debt Debt Debt Debt Share
Slide 23: Offer structure
Overview For personal use only Offer summary 2 Strategic outlook and overview 4 Financial information 10 The Capital Bonds 16 Offer structure 22 © Contact Energy Limited November 2011 Capital Bond roadshow presentation 22
Slide 24: Offer process
Offer process For personal use only • Bookbuild Process – NZX Firms, institutional investors and other approved parties to be invited to participate in the bookbuild process • Firm Offer and Public Pool – Allocations to the Firm Offer and Public Pool (if any) will be determined after the bookbuild p
Slide 25: Offer timetable
Offer timetable For personal use only Prospectus registered Thursday 10 November Roadshow presentations Monday 14 – Wednesday 16 November Bookbuild and Margin and Minimum Rate Set Date Tuesday 22 November (midday) Firm allocations notified Tuesday 22 November Offer opens Wednesday 23 November Offer
Slide 26: Nationwide print and internet advertising campaign
Nationwide print and internet advertising campaign For personal use only © Contact Energy Limited November 2011 Capital Bond roadshow presentation 25
Slide 27: Business highlights
Business highlights For personal use only One of New 560,000+ 166 MWs (gross) Zealand’s largest customers across of geothermal electricity its electricity, gas generation under generators and and LPG construction retailers businesses One of the largest Issuer credit rating Net assets of $3.1 publicl
Slide 28: Questions?
Questions? For personal use only © Contact Energy Limited November 2011
Slide 29: Disclaimer
Disclaimer For personal use only The Offer referred to in this presentation is being made pursuant to a simplified disclosure prospectus dated 9 November 2011 (Offer Document). A copy of the Offer Document may be obtained free of charge from www.contactenergy.co.nz/bonds. This document does not cons
Slide 30: Disclaimer (cont.)
Disclaimer (cont.) For personal use only There are statements in this presentation that are “forward looking statements”. As these forward-looking statements are predictive in nature, they are subject to a number of risks and uncertainties relating to Contact Energy. As a result, actual results and
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