Infratil Limited · NZX:IFT
Infratil — Trustpower — Investor Day (April 2018)
25 slides from Infratil's investor day presentation, Apr 11, 2018
Slide 1: Infratil Investor Day | 11 April 2018
Infratil Investor Day | 11 April 2018 1. Trustpower presentation to Infratil Investor Day 11 April 2018
Slide 2: Trustpower re-positioning post demerger complete
Trustpower re-positioning post demerger complete • A New Zealand focused multi-product platform with scale and growth potential • Divestment of GSP Energy Australian Hydro assets adds value and tightens focus • Completion of King Country Energy take over with King Country Electric Power Trust allows
Slide 3: Trustpower's strategy – to create executable options driving shareholder returns
Trustpower’s strategy – to create executable options driving shareholder returns Bundling Energy and Generation Portfolio Maximising Identifying New Telco Performance Electricity Value Markets Strategic Pillars Shareholder Value Driving action based Meeting our Strong, positive Lean, agile, scalable
Slide 4: Generation portfolio performance
Generation portfolio performance
Slide 5: FY18 Generation volume – drives performance
FY18 Generation volume – drives performance Generation volume 2,000,000 1,500,000 GWh 1,000,000 Generation volume well above long run average, however return to average would out perform 500,000 FY14 – FY16 0 Total NI (Excl KCE) Total SI KCE 5. Trustpower presentation to Infratil Investor Day 11 Apr
Slide 6: Wholesale price and volume risk management – delivers sustainable earnings
Wholesale price and volume risk management – delivers sustainable earnings Well positioned for the start of Trustpower Controlled Storage winter 2017 200 $400 • Geographically distributed 180 Peter C- original graph from $350 generation James T I think $300 • Strong generation throughout the 160 $25
Slide 7: Generation performance focus
Generation performance focus • Emphasis on health & safety, dam/civil safety and maintaining our licence to operate and compliance projects • Sharper focus on enhancement and incremental growth to create earnings uplift • Improving asset management maturity – more predictive and preventative focus f
Slide 8: Bundling energy and telecommunications
Bundling energy and telecommunications
Slide 9: Focus on execution of proven products with increasing customer acceptance
Focus on execution of proven products with increasing customer acceptance Current connections TOTAL CUSTOMERS BY REGION Bay of Plenty Metro Regional 273,000 electricity 24% 44% 38,000 gas 32% 88,000 telco Comment • 2/3rds of all new customers are taking 2 or more products • We continue to see strong
Slide 10: Now the leading multiproduct business – differentiates from competition
Now the leading multiproduct business – differentiates from competition BUNDLE CUSTOMERS BY BUNDLED CUSTOMERS BY TENURE REGION Less than 1 Year 1-3 Years Bay of Plenty Metro Regional 3-5 Years > 5 Years 22% 32% 28% 21% 11% 40% 46% Focused cross sell and retention in FY18 Targeted acquisition • Over
Slide 11: Value based offers outperform discounting
Value based offers outperform discounting Acquisition incentive costs aligned to cost of discounts or cash incentives, however value based offers outperform: • Better sales conversion and lower sales leakage • Lower churn and lower credit risk • Higher energy consumption and larger data plans drivin
Slide 12: Maximising electricity value
Maximising electricity value
Slide 13: Electricity segment – Demonstrates diversity & tenure
Electricity segment – Demonstrates diversity & tenure Electricity only Consumer Market • Electricity segment remains highly competitive with consolidation and failures likely ELECTRICITY CUSTOMER BASE • Balanced portfolio across Commercial, Industrial, BY REGION Government and Consumer • Opportuniti
Slide 14: Meeting our customer needs
Meeting our customer needs
Slide 15: Focus on efficiency, automation and digital solutions
Focus on efficiency, automation and digital solutions • Increase in the numbers of products supplied and associated customer contacts is offset by the migration of customers to non staffed channels, leading to lower staff numbers • Productivity of our staffed workforce has increased from 1 contact c
Slide 16: Automation providing customers with choice
Automation providing customers with choice • 45.7% of all customer contacts are now serviced without human intervention • Chatbot receiving customer satisfaction ratings on par with an agent • Trustpower App released with 29,000 interactions to date and achieving high satisfaction & engagement rates
Slide 17: Growth and industry overview
Growth and industry overview
Slide 18: Evolution of TECT process
Evolution of TECT process TECT Proposal withdrawn • The trustees of the Tauranga Energy Consumer Trust ("TECT") announced, following consultation, they will not be proceeding further with their proposal announced on 25 January 2018 • Under that proposal, the trustees proposed to move all the assets
Slide 19: Key regulatory issues
Key regulatory issues Low emissions economy • Trustpower supports and is well placed to contribute to the transition to 100% renewable electricity by 2035 Electricity price review • The current market structure functions well. The focus should be on barriers for ▪ transition to a low emission econom
Slide 20: Industry consolidation
Industry consolidation Trustpower is well positioned to capitalise on emerging market opportunities • The joint KCE takeover offer by Trustpower and the King Country Electric Power Trust (KCEPT) was successful. Trustpower and KCEPT are now working together to achieve synergies, primarily through the
Slide 21: In summary
In summary • Trustpower repositioned as a New Zealand focused multi-product platform • Multi-product platform delivering for customers and shareholders • Well positioned in an uncertain and changing world for further convergence with proven integration capability 21. Trustpower presentation to Infra
Slide 22: Disclaimer
Disclaimer While all reasonable care has been taken in the preparation of this presentation, Trustpower Limited and its related entities, directors, officers and employees (collectively "Trustpower") do not accept, and expressly disclaim, any liability whatsoever (including for negligence) for any l
Slide 23: Thank You
Thank You
Slide 24: Appendix
Appendix
Slide 25: Generation volumes
Generation volumes FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Long run average MWh MWh MWh MWh MWh MWh MWh MWh MWh MWh MWh MWh MWh MWh Long Term NI Generation 690,401 780,391 546,024 749,931 614,570 779,535 921,240 724,997 566,207 516,092 626,126 758,366 987,184 712,389 Long Te