Meridian Energy Limited · NZX:MEL
Meridian Energy — Non-Deal Roadshow (November 2018)
21 slides from Meridian Energy's roadshow presentation, Nov 5, 2018
Slide 1: Meridian Energy Investor Presentation
For personal use only Meridian Energy Investor Presentation 5 November 2018 Attached is a presentation Meridian Energy Limited is making at a series of investor meetings during November 2018. ENDS Neal Barclay Chief Executive Meridian Energy Limited For investor relations queries, please contact: Fo
Slide 2: Meridian Energy Limited Investor Roadshow Presentation
For personal use only MERIDIAN ENERGY LIMITED INVESTOR ROADSHOW PRESENTATION
Slide 3: Economy
For personal use only THE NEW ZEALAND ECONOMY MERIDIAN ENERGY LIMITED INVESTOR ROADSHOW PRESENTATION Meridian Energy Limited Investor Roadshow Presentation 2
Slide 4: Economy
THE NEW ZEALAND ECONOMY Stable, open, market orientated economy For personal use only High ease of doing business and low corruption rankings Seven years of economic expansion, now entering a mature phase Slowing economic growth as housing market, construction and population growth cools Terms of tr
Slide 5: Electricity Market
THE NEW ZEALAND ELECTRICITY MARKET For personal use only Meridian Energy Limited Investor Roadshow Presentation 4
Slide 6: Electricity Market
THE NEW ZEALAND ELECTRICITY MARKET Delivering a reliable, affordable and environmentally sustainable electricity system For personal use only A well functioning market, characterised by: “New Zealand serves as a model Quality renewable resources for effective energy markets and secure power system o
Slide 7: Electricity Market: generators, grid, retailers, generation and consumption mix
THE NEW ZEALAND ELECTRICITY MARKET 5 major generators (all listed) 1 transmission grid 29 distribution 33 retailers For personal use only owner (state owned) businesses (44 brands) (various 1 big industrial user ownership (Rio Tinto/Sumitomo structures) smelter) 2.1 million consumers (41 TWh pa) Sou
Slide 8: Electricity Market: hydro generation and supply balance
THE NEW ZEALAND ELECTRICITY MARKET New Zealand’s hydro generation is For personal use only managed against limited controlled storage Bulk of hydro inflow is anti-correlated to winter demand peak Thermal capacity and fuel storage manages potential hydro inflow deficit and other renewable intermitten
Slide 9: Electricity Market: decarbonisation and demand forecasts
THE NEW ZEALAND ELECTRICITY MARKET Market will be the key enabler of greater NZ 2016 SECTOR EMISSIONS For personal use only decarbonisation in New Zealand 3% 5% 6% 42% of non-agricultural carbon emissions Electricity could be removed over time through Road transport 17% electrification Stationary en
Slide 10: Electricity Market: price review and residential costs
THE NEW ZEALAND ELECTRICITY MARKET New Zealand Government is conducting a REAL RESIDENTIAL ELECTRICITY COST For personal use only review of electricity prices c/KWh 18 An initial paper has been released: +4% Energy affordability can be an issue 15 since 2009 Low income households need better +28% su
Slide 11: Electricity Market: Tiwai smelter
THE NEW ZEALAND ELECTRICITY MARKET Tiwai smelter is 12% of national demand For personal use only CfD contract with Meridian on NZAS perpetual 12-month termination right Meridian’s modelling suggests smelter is currently making healthy cash profits Additional 50MW contract signed in May 18 Aluminium
Slide 12: Meridian Energy
For personal use only MERIDIAN ENERGY Meridian Energy Limited Investor Roadshow Presentation 11
Slide 13: About Meridian Energy
ABOUT MERIDIAN ENERGY NZ$8b company, listed in 2013, 51% For personal use only Government owned Largest and most liquid of five listed New Zealand retailer generators The only New Zealand electricity company with a customer and asset base diversified across different countries Strong environmental,
Slide 14: About Meridian Energy: generation portfolio
ABOUT MERIDIAN ENERGY New Zealand’s largest generator, all For personal use only production from renewable sources Seven big hydro stations – flexible plant with the country’s largest storage With low operating costs and capital needs Five New Zealand wind farms and proven success operating in a hig
Slide 15: Strategic Focus
STRATEGIC FOCUS For personal use only Champion benefits of Support retail growth & protecting competitive markets our generation legacy Competing vigorously Contribution of hydro to 100% Leadership in sustainability in renewable aspiration New Zealand and Australia Maintaining a best in class Suppor
Slide 16: Shareholder Highlights
SHAREHOLDER HIGHLIGHTS Five successive years of earnings and EBITDAF For personal use only $M dividend growth since listing 700 Double digit shareholder returns every year 657 666 650 since listing 650 High free cash flow, high payout ratio, 618 progressive ordinary dividend policy 600 585 Structure
Slide 17: New Technologies: solar
NEW TECHNOLOGIES Solar uptake increasing in New Zealand as For personal use only economics slowly improve New Zealand residential capacity factors are low (13%-15%) and payback high (13 years) Commercial solar opportunities are being developed Grid scale solar unlikely in New Zealand in the near ter
Slide 18: New Technologies: batteries
NEW TECHNOLOGIES Battery value for energy management is in For personal use only load shifting (high to low price periods) Grid scale unlikely in New Zealand due to large hydro storage Grid scale possible in Australia with subsidy support Solar and batteries to achieve residential off-grid in New Ze
Slide 19: New Technologies: electric vehicles
NEW TECHNOLOGIES Electric vehicle levels are growing in New For personal use only Zealand Government and company fleet conversions increasing Meridian will have converted 80% of its passenger fleet by 2020 New Zealand uptake dependent on the second-hand import market, so expected to be gradual Uptak
Slide 20: Meridian's Investment Proposition
MERIDIAN’S INVESTMENT PROPOSITION For personal use only Strong free NZ retail cash flow load Long term Retail Capital Low capital sustainable platform management needs business changes Potential High Income Growth Flux High free Medium Progressive Powershop cash flow term new ordinary DPS franchise
Slide 21: Disclaimer
DISCLAIMER THE INFORMATION IN THIS PRESENTATION WAS PREPARED BY MERIDIAN WITH ANY PURCHASE OF MERIDIAN ENERGY SECURITIES. For personal use only ENERGY WITH DUE CARE AND ATTENTION. HOWEVER, THE INFORMATION THIS PRESENTATION CONTAINS A NUMBER OF NON-GAAP FINANCIAL IS SUPPLIED IN SUMMARY FORM AND IS TH