Infratil Limited · NZX:IFT
Infratil — Trustpower — Investor Day (March 2015)
23 slides from Infratil's investor day presentation, Mar 31, 2015
Slide 1: Infratil Investor Day
Infratil Investor Day 31 March 2015
Slide 2: Infratil Investor Day Trustpower Agenda
Infratil Investor Day Trustpower Agenda • Performance developing points of difference • Focus on multi-product retail • Global renewables - a context for growth • Update on Australia and the Renewable Energy Target © Trustpower Limited 2
Slide 3: 2015 performance
2015 performance Execution highlights 2015 financial year • Retail multi-product strategy – takes off 240,000 electricity connections, up 16,000 37,000 telco customers, up 6,000 (69,000 services) 23,000 gas connections, up 9,000 includes 7,300 fibre connections and 52,000 customers with two or more
Slide 4: … and challenges remain
… and challenges remain • Competition remains fierce • NZ demand remains flat – with some potential upside • Tiwai still uncertain • Renewable Energy Target as yet unresolved … Trustpower strategic response © Trustpower Limited 4
Slide 5: … loyalty is key to growth
0% 5% 10% 15% 20% 25% 2012/07 2012/08 © Trustpower Limited 2012/09 2012/10 2012/11 2012/12 2013/01 2013/02 2013/03 2013/04 2013/05 2013/06 NZ Switch Count 2013/07 2013/08 2013/09 2013/10 2013/11 2013/12 Market % Losses 2014/01 … loyalty is key to growth 2014/02 2014/03 2014/04 Trustpower Losses vs M
Slide 6: Multi product – builds loyalty, supports growth
Multi product – builds loyalty, supports growth Market Churn = 19%, TPW Churn = 14%, TPW power and telco = 8% Power only Annualised churn rate 46% lower Power and telco churn Investment in systems and processes is critical 6 © Trustpower Limited
Slide 7: Brand re-launch – provided a growth platform
Brand re-launch – provided a growth platform • Provides a focus for integrated multi- product strategy • Creates awareness and consideration in major metro markets • Provides the platform to redefine the target market – Customers who value Comfort, Connectivity and Convenience 7 © Trustpower Limited
Slide 8: Auckland building brand value…
Auckland building brand value… Auckland energy gains 12,900 • Growth in awareness leads to consideration and sales. © Trustpower Limited 8
Slide 9: Auckland telco brand value takes time…
Auckland telco brand value takes time… Auckland Telco/energy sales 2,600 • Demonstrates opportunity for increased consideration of “bundle”. • Provides the reason for sales engagement. © Trustpower Limited 9
Slide 10: Increasing consideration and the pace of execution – leads to new campaign
Increasing consideration and the pace of execution – leads to new campaign • By bringing together energy and telco Trustpower can offer customer better value - $49 a month for unlimited broadband for a year “Great things happen when you get power and broadband together” © Trustpower Limited 10
Slide 11: Globally renewables are growing….
Globally renewables are growing…. • China - renewables now > 20% of electricity generation • Denmark - wind produced 33% of electricity in 2013 • USA - 2014 wind produced 4.4% of electricity, but >15% in 7 states © Trustpower Limited 11
Slide 12: Not all jurisdictions are equal
Not all jurisdictions are equal Latin America is an emerging growth market Trustpower analysis of Ernst & Young data © Trustpower Limited 12
Slide 13: Hydro power minor outside China
Hydro power minor outside China © Trustpower Limited 13
Slide 14: Wind deployment continues to grow
Wind deployment continues to grow Outside of China and India most deployment Despite the GFC deployment has is in developed nations, this leaves huge continued. potential in the developing nations. © Trustpower Limited 14
Slide 15: Solar is growing faster
Solar is growing faster The rate of deployment is increasing as prices reach grid parity © Trustpower Limited 15
Slide 16: Australian strategy
Australian strategy Renewable Energy Target Wind Similar legal Experience and cultural - 13yrs in NZ structure - 10yrs in Aust Australian Growth Core Support from Competencies: existing NZ -development talent pool - construction - operation Good industry relationships Strategy remains valid subject
Slide 17: Strategy execution - Green State Power
Strategy execution - Green State Power Power Station MW Built Hume 58 1957 • Excellent fit with strategy and NZ Burrinjuck 27.2 1928 operations Keepit 7.2 1960 • Provides platform for further Blayney (Wind) 9.9 2000 Crookwell 4.8 1998 growth Valuation uplift of A$25 million on acquisition Hume Power
Slide 18: Strategy execution - Snowtown stage 2
Strategy execution - Snowtown stage 2 SWF2 SWF2 SWF2 South North Total Capacity (MW) 126 144 270 No. Machines 42 48 90 Net long term annual yield 481 504 985 (GWh) Capacity factor (%) 44 40 42 Cost/MW (A$m) 1.44 1.78 1.63 • Project delivered on time and under budget © Trustpower Limited 18
Slide 19: Renewable target review
Renewable target review 45,000 40,000 35,000 Likely outcome zone 30,000 25,000 20,000 15,000 10,000 5,000 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 REC Generation Committed RECs (Existing So
Slide 20: Trustpower's Australian pipeline options
Trustpower’s Australian pipeline options Wind Farm Status MW Snowtown 1 - SA Operational 100 Snowtown 2 - SA Operational 270 Dundonnell - VIC In DA process 250 - 320 Salt Creek - VIC DA in place – 2015 Expiry 10 - 30 Rye Park - NSW* In DA process Circa 300 New South Wales In DA process Circa 500 Pro
Slide 21: Looking forward
Looking forward • Maintain focus on core operations Seek opportunities to: • Leverage multi-product approach - Customers with two or more products increase from 24% to 40% • Develop and acquire value accretive opportunities in hydro, wind and grid connected solar - focussed on Australasia, and - con
Slide 22: Disclaimer
Disclaimer The information set out below relates to future matters, that are subject to a number of risks and uncertainties (many of which are beyond the control of Trustpower, which may cause the actual results, performance or achievements of Trustpower or the Trustpower Group to be materially diff
Slide 23: Thank you
Thank you trustpower.co.nz