Contact Energy Limited · NZX:CEN
Contact Energy — Debt Investor Presentation (September 2022)
24 slides from Contact Energy's debt investor presentation, Sep 27, 2022
Slide 1: Contact Energy Limited Retail Green Bond Offer
Contact Energy Limited Retail Green Bond Offer Joint Lead Managers: Investor presentation 27 September 2022 1
Slide 2: Disclaimer and important information
Disclaimer and important information Important Notice affiliates or agents (a) accept any responsibility or liability whatsoever for any loss arising from this presentation or its contents, or otherwise arising in connection with the Offer or any person’s This presentation has been prepared by Conta
Slide 3: Presenters
Contact Presenters Matthew Forbes Acting Chief Financial Officer Will Thomson Corporate Treasurer 3
Slide 4: Agenda
Agenda Offer Highlights 5 Electricity Market Overview 6-9 Contact Energy Strategy 10-14 Financial Performance Update 15 Capital Structure & Funding 16-19 Key Terms and Dates 20-23 4
Slide 5: Offer Highlights
Offer Highlights $200m 5.5 year Senior Debt Issuance with up to $50m Tenor maturing Sits above capital bonds and equity oversubscriptions 11 April 2028 Fixed Green BBB Interest rate for duration Certified with the CBI under Contact’s Issue Credit Rating with of bond for bond holders Green Borrowing
Slide 6: Introduction to Contact
Introduction to Contact Presented by Matthew Forbes Acting Chief Financial Officer Electricity Market Overview Contact Energy Strategy Financial Performance Update 6
Slide 7: New Zealand enjoys a reliable, affordable and environmentally sustainable electricity system
New Zealand enjoys a reliable, affordable and environmentally sustainable electricity system¹ Competitive Regulated monopolies Competitive Spot 4 electricity pool 1 29 7 2.2 Major generators National Distribution Retailers Million consumers transmission businesses over 50k connections grid operator
Slide 8: New Zealand's electricity supply is highly renewable
New Zealand’s electricity supply is highly renewable Contact has played a leading role by developing geothermal resources and reducing thermal generation Electricity generation carbon emissions (units of CO2e) Current national quarterly supply and demand (TWh) Measured at the station grid entry poin
Slide 9: Carbon Reduction Opportunity
Carbon Reduction Opportunity With high renewable penetration, electricity is the solution to reducing carbon emissions, not the problem Greenhouse gas emissions by sector Paris agreement target, Mt CO2e Our future energy profile Renewable Total 52 2 electricity as % of electricity total energy use*
Slide 10: Our strategy to lead New Zealand's decarbonisation
Our strategy to lead New Zealand’s decarbonisation Strategic Grow Grow renewable Decarbonise Create outstanding theme demand development our portfolio customer experiences Objective Attract new industrial demand with Build renewable generation and Lead an orderly transition Create NZ's leading energ
Slide 11: Contact believes it is well positioned to enable New Zealand's decarbonisation
Contact believes it is well positioned to enable New Zealand’s decarbonisation 2/ New Zealand’s best renewable development pipeline 1/ Distinctive capabilities 3/ Leading New Zealand's thermal Deep understanding of energy applications generation transition Geothermal +2.9TWh Wind Solar target Unique
Slide 12: Our Assets
Our Assets 2017 - 2021 generation by station and type (five-year average) Where we are Te Huka 3 (51MW) Under construction. Target ~430 online final quarter 2024 Tauhara (168MW) Under construction Target 8.6TWh online second half 2023 Average ~1,400 3,774GWh generated FY17 to FY21 3,251GWh Roxburgh
Slide 13: Market Leading Geothermal Development Pipeline
Market Leading Goethermal Development Pipeline In line with core markets and capability Geothermal generation potential (TWh p.a) Potential geothermal development projects 0.2 Current Generation 2.8 3.3 0.3 Tauhara Te Huka Tauhara 1.4 (168MW) (51.4MW) GeoFutures (under construction) (Target 168MW) T
Slide 14: Te Huka Investment
Te Huka Investment Contact is investing to deliver renewable energy Te Huka development key metrics Estimated MW (net export to grid) 51.4MW Estimated forward capital expenditure (cash)¹ ~$272m Estimated plant capacity factor/ annual generation 95% / ~430GWh p.a. Expected low carbon 0.03T of C02e/MW
Slide 15: Financial Performance
Financial Performance High quality, long-life generation assets support strong operating cash flow Operating earnings (EBITDAF) Operating free cash flow ($m) Average operating cash flow for the preceding four financial years 332 324 325 326 100% 322 309 80% 550 Dividend level 520 as a % of preceedin
Slide 16: Capital Structure & Funding
Capital Structure & Funding Presented by Will Thomson Corporate Treasurer Funding 16
Slide 17: Funding Portfolio
Funding Portfolio Funding maturity profile Sources of funding (at 31 August 2022, including new retail Green Bonds) (at 31 August 2022) Balanced debt portfolio with diverse sources of funding; comprising bank 400 debt, domestic bonds and USPP 350 17% 15% 300 All bank facilities have been 3% 250 conv
Slide 18: Capital Structure
Capital Structure Contact continues to target a BBB credit rating Spot year end Net debt to EBITDAF (x) Capital Employed ($m) & Gearing* (%) 3.1 35 2.3 2.4 31 28 23 23 1.5 1.2 4,209 3,831 3,775 3,771 3,633 1,482 1,049 931 1,154 706 FY18 FY19 FY20 FY21 FY22 2,727 2,782 2,621 2,927 2,840 • Provides be
Slide 19: Green Borrowing Programme
Green Borrowing Programme 19
Slide 20: Key Terms and Dates
Key Terms and Dates 20
Slide 21: Key Terms
Key Terms Issuer Contact Energy Limited. Description Unsecured, unsubordinated, fixed rate, interest bearing debt obligations of Contact. Issue Amount Up to NZ$200,000,000 (with the ability to accept oversubscriptions of up to NZ$50,000,000 at Contact’s discretion. Tenor 5.5 years maturing Tuesday,
Slide 22: Key Terms
Key Terms The proceeds from the issue of the Green Bonds will be used by Contact for the financing and refinancing of renewable Purpose generation and other eligible green assets in accordance with the terms of the Green Borrowing Programme Framework. Guarantors None. The Green Bonds rank equally an
Slide 23: Key Dates
Key Dates Offer opens Tuesday, 27 September Indicative pricing and terms sheet released Closing Date (11am) Friday, 30 September Rate Set Date 2022 Tuesday, 11 October Issue Date Wednesday, 12 October Expected Quotation Date 2023 Wednesday, 11 January First Interest Payment Date 2028 Tuesday, 11 Apr
Slide 24: Thank you
Thank you
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