Mercury Nz Ltd. · NZX:MCY
Mercury Nz — UBS Australasia Conference 2022
24 slides from Mercury Nz's conference presentation, Nov 15, 2022
Slide 1: UBS Australasia Conference Presentation news release
STOCK EXCHANGE LISTINGS: NEW ZEALAND (MCY) / AUSTRALIA (MCY) For personal use only NEWS RELEASE UBS Australasia Conference Presentation 15 November 2022 – Attached is a presentation to be given today at the UBS Australasia Conference. ENDS Howard Thomas General Counsel and Company Secretary Mercury
Slide 2: UBS Conference - Sydney
UBS Conference - Sydney. 15 NOVEMBER 2022 For personal u WILLIAMMEEK =———s« | GEOFF SMITS ancia Treasury Manager Mercury
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Mercury NZ Limited and its group of companies ('Company”) for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. Information in this presentation has been prepared by the C
Slide 4: For personal use only
For personal use only w We are a 100% renewable NZ electricity generator and multi- product utility retailer of electricity, gas, broadband and mobile services focused on delivering wonderful solutions for New Zealanders at home, at work and on the move. oS
Slide 5: Mercury at a glance
MERCURY AT A GLANCE > Vertically integrated 100% renewable generator and national energy and telco retailer GEOTHERMAL WIND, 2,550GWh 1,570GWh HYDRO > New Zealand's second largest gentailer by 4,5006Wh value, NZ's largest wind generator and NZ's largest electricity retailer by customer market share
Slide 6: Our FY24 objectives & 2030 goals
OUR FY24 OBJECTIVES & 2030 GOALS THRIVING TODay Increase the value of our business to S#00M- $800M Enhance our re Unleash the licence to operate full potential of our through collaborative people through work with our transforming stakeholders, culture. Be an adaptive and Create executable resilient
Slide 7: Long term industry trends
LONG TERM INDUSTRY TRENDS SECTOR EARNINGS 3 CAGR: 2.5% a Be re =< a =a a & of egoEevexeexErgeeogy Soe eee ESS S SE SHES SSRVSLSRKKRRERERS RESIDENTIAL PRICE =——_Lines 40 Energy —Lines and Energy £ 230 2 oc | _ 320 £ 510 2 io} eaonaAme oR weSoaN SegEgSaeaeseeEoe ag SRRERREBSRRRRSERS Financial Year (en
Slide 8: Long-term sustainability of natural resources and assets
We manage for the long-term sustainability of the natural resources and assets that we rely on. A leader in the ultra-long-term management of both physical and natural assets. For personal use only N oS
Slide 9: Complementary portfolio of assets - hydro, geothermal & wind
COMPLEMENTARY PORTFOLIO OF ASSETS — HYDRO, GEOTHERMAL & WIND HYDRO ASSETS: 1,112 MW! - ~4,060GWh pa (mean inflows) Pv: ri = oy a 7MW Ohakuri Tl2MW (1941) 335 GWh 405 GWh (1964) (1961) 5IMW Arapuni 198MW Karapiro: 96MW 240 GWh 870 GWh 535 GWh (1961) (1929) (1946) ni 360MW 875 GWh (1952 & 1970) ‘84MW
Slide 10: Complementary portfolio of assets - hydro, geothermal & wind
COMPLEMENTARY PORTFOLIO OF ASSETS — HYDRO, GEOTHERMAL & WIND WIND ASSETS: 448MW - ~1,585GWh pa (mean wind) ro | Turitea North TI9MW Mahinerangi 36MW Tararua 160MW. 470 GWh 100 GWh 560 GWh (2021) (zon) (1999) Waipipi 133MW 455 GWh (2021) UNDER CONSTRUCTION 146MW — ~520 GWh pa (mean wind) Turitea Sout
Slide 11: Leading our sector in financial performance and shareholder returns
For personal use only 10 Leading our sector in terms of financial performance and shareholder returns.
Slide 12: Mercury's long term track record
nN MERCURY'S LONG TERM TRACK RECORD FY23F is normalised for derivative unwind EBITDAF actose Manans, Norske and Tit transactions, OPEX! = Operating expenditure = One-off costs DISTRIBUTIONS Share buyback _m Special dividend 800 Yy 400 400 = Final dividend Interim dividend 600 Y ¥ E 400 E E 200 7 ‘ b
Slide 13: FY23 guidance
12 FY23 GUIDANCE > Headline FY23 EBITDAF guidance of $620m on 4,500GWh of hydro generation (normalised EBITDAF of $795m!), subject to hydrological volatility, wholesale market conditions and any material adverse events, significant one-off expenses or other unforeseeable circumstances >FY23 ordinary
Slide 14: Long term goal to be New Zealand's leading energy brand
Long term goal to be New Zealand's leading energy brand. For personal use only = ®
Slide 15: Retail business growing, integration underway
4 RETAIL BUSINESS GROWING, INTEGRATION UNDERWAY >NZ scale retail business made up of 574k electricity connections, 96k gas customers (includes some LPG), 119k telco customers (mostly broadband) and 14k mobile customers. > Steady connection growth in energy and telco since Trustpower retail acquisiti
Slide 16: Playing a leading role in New Zealand's transition to a low carbon economy
For personal use only 15 Playing a leading role in New Zealand's successful transition to a low carbon economy. Creating executable options for new growth. oS
Slide 17: Renewable generation development
16 RENEWABLE GENERATION DEVELOPMENT Our Development Pipeline - >2,000MW, >6,000GWh Diverse and robust pipeline including on-shore wind, battery, and geothermal options > On-shore Wind Pipeline: advancing several wind farm opportunities in the North and South Island - securing new sites, on-site moni
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Slide 19: Capital structure flexibility enables renewable growth
18 CAPITAL STRUCTURE FLEXIBILITY ENABLES RENEWABLE GROWTH > Debt / EBITDAF peaked in FY22, reducing to a forecast of ~2.2x! in FY23 driven by an increase in forecast EBITDAF@ with full year contributions from Turitea North WF, ex-Tilt WFs and Trustpower retail business. > S&P Global credit rating of
Slide 20: Enhancing our license to operate
Enhancing our license to operate through collaborative work with our stakeholders. Recognised as a leader within our industry, with our sector seen as a positive contributor to New Zealand. For personal use only = 0 oS
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Slide 23: Mercury's competitive advantage
MERCURY'S COMPETITIVE ADVANTAGE 100% renewable generation > Three low-cost complementary fuel sources in peaking/firming hydro, baseload geothermal, and high-quality wind generation o Superior asset location > Predominantly North Island located generation near major load centres; hydro system inflow
Slide 24: For further information
For personal use only FOR FURTHER INFORMATION > WILLIAM MEEK| CHIEF FINANCIAL OFFICER +64 21 666 265 INVESTOR@MERCURY.CO.NZ