Meridian Energy Limited · NZX:MEL
Meridian Energy — Shareholder Meeting (2017)
35 slides from Meridian Energy's shareholder meeting presentation, 2017
Slide 1: It's our future. 2017 Annual Shareholder Meeting
IT’S OUR FUTURE. MERIDIAN ENERGY LIMITED 2017 ANNUAL SHAREHOLDER MEETING
Slide 2: Order of business
Order of business. • Chair’s address • Chief Executive’s review • Questions • Resolutions Image: Lake Pukaki headwaters, Canterbury, New Zealand Meridian Energy Limited 2017 Annual Shareholder Meeting 2
Slide 3: Chair's address
Chair’s address. Meridian Energy Limited 2017 Annual Shareholder Meeting 3
Slide 4: Value through sustainability
Value through sustainability. Image: Waterfall, Lake Manapōuri, Southland, New Zealand Meridian Energy Limited 2017 Annual Shareholder Meeting 4
Slide 5: Shareholder highlights
Shareholder highlights. Five successive years of earnings growth Higher dividends every year since listing EBITDAF1 DIVIDENDS DECLARED TOTAL CPS $650M $653M 18.91 18.23 18.38 $618M $584M $585M 13.01 $477M 2012 2013 2014 2015 2016 2017 2014 2015 2016 2017 Financial Year ended 30 June Source: Meridian
Slide 6: Shareholder highlights
Shareholder highlights. Record level of operating cash flow 132% cumulative shareholder return since listing OPERATING CASH FLOW CUMULATIVE TSR1 SINCE LISTING 132% $470M 102% $452M $440M 57% $433M $416M 19% 2013 2014 2015 2016 2017 2014 2015 2016 2017 Financial Year ended 30 June Source: Meridian Fin
Slide 7: New Zealand demand
New Zealand demand. ANNUAL DEMAND CHANGE SINCE 2010 Little demand growth in the last 7 years +2.6% • + Economic growth • + Positive net migration +1.1% • - Industrial and manufacturing closure +0.3% • - Warmer than average temperatures -0.1% -0.9% -0.6% • - Growing impact of technology and -1.7% effic
Slide 8: Offshore opportunities
Offshore opportunities. Image: Logo of Flux Federation, Meridian’s development subsidiary Image: the HVDC Inter-Island transmission line (front) near Wellington, New Zealand Image: Mt Millar wind farm, South Australia Meridian Energy Limited 2017 Annual Shareholder Meeting 8
Slide 9: Transmission pricing
Transmission pricing. Transmission pricing review delayed Image: The HVDC inter-island transmission line (front) near Wellington, New Zealand Meridian Energy Limited 2017 Annual Shareholder Meeting 9
Slide 10: The year ahead
The year ahead. Mark Binns Image: Godley River, Canterbury, New Zealand Neal Barclay Meridian Energy Limited 2017 Annual Shareholder Meeting 10
Slide 11: Chief Executive's review
Chief Executive’s review. Meridian Energy Limited 2017 Annual Shareholder Meeting 11
Slide 12: Our people
Our people. No significant harm injuries and reduction in Progressing towards top quartile employee workplace injury statistics in FY17 engagement RECORDABLE INJURY FREQUENCY RATE1 EMPLOYEE ENGAGEMENT2 % Meridian Australia NZ Top 25% 90.7 88.0 88.0 89.3 1.99 1.86 1.52 1.12 77.9 83.2 86.1 82.9 87.3 87
Slide 13: 2017 financial results
2017 financial results. Underlying Operating Dividend NPAT EBITDAF NPAT cash flow declared $197M $653M $218M $470M 18.91CPS Full year change +6% -6% +0.5% +4% +3% First half change +19% +7% +6% -1% +3% Second half change -10% -21% -5% +9% +3% Source: Meridian Meridian Energy Limited 2017 Annual Shareh
Slide 14: A change in Government – a preliminary view
A change in Government – a preliminary view. Image: The Beehive and Parliament Buildings, Wellington, New Zealand Meridian Energy Limited 2017 Annual Shareholder Meeting 14
Slide 15: New Zealand residential electricity pricing
New Zealand residential electricity pricing. Average residential electricty cost increases AVERAGE RESIDENTIAL ELECTRICITY COST c/kWh below the rate of inflation • 4% increase since June 2013 • Slightly lower than the increase in the consumers price index over the same period 28.59 29.02 29.02 27.91
Slide 16: Tiwai Point aluminium smelter
Tiwai Point aluminium smelter. Image: Aluminium smelter at Tiwai Point, Southland, New Zealand Meridian Energy Limited 2017 Annual Shareholder Meeting 16
Slide 17: Commercial solar
Commercial solar. Image: Commercial solar array, Bloomington, Minnesota, USA Meridian Energy Limited 2017 Annual Shareholder Meeting 17
Slide 18: Powershop offshore
Powershop offshore. ? Meridian Energy Limited 2017 Annual Shareholder Meeting 18
Slide 19: September quarter
September quarter. High August and September 2017 month inflows MERIDIAN'S WAITAKI STORAGE GWh 2,500 • September quarter inflows were 131% of 2,000 average • Meridian’s Waitaki storage now at 121% of 1,500 average 1,000 • Compared to the September quarter last year 500 • 25% lower NZ generation 0 • 10
Slide 20: Final thoughts
Final thoughts. Image: Stream near Lake Manapōuri, Southland, New Zealand Meridian Energy Limited 2017 Annual Shareholder Meeting 20
Slide 21: Questions
Questions. Meridian Energy Limited 2017 Annual Shareholder Meeting 21
Slide 22: Resolutions and voting
Resolutions and voting. Meridian Energy Limited 2017 Annual Shareholder Meeting 22
Slide 23: Postal and proxy vote totals
Postal and proxy vote totals. Resolutions supported by the Board ELECTION OF MARK VERBIEST RE-ELECTION OF MARY DEVINE RE-ELECTION OF STEPHEN REINDLER VOTE TYPE VOTED % VOTED % VOTED % FOR 575,863,755 30.5% 576,220,567 30.5% 575,823,227 30.5% AGAINST 881,322 0.1% 436,933 0.0% 738,319 0.0% DISCRETIONA
Slide 24: Resolution 1
Resolution 1. Election of Mark Verbiest • That Mark Verbiest, who was appointed as a Director of the Company by the Board on 24 March 2017, retires and is eligible for election, be elected as a Director of the Company • This resolution is unanimously supported by the Board Meridian Energy Limited 20
Slide 25: Resolution 2
Resolution 2. Re-election of Mary Devine • That Mary Devine, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company • This resolution is unanimously supported by the Board Meridian Energy Limited 2017 Annual Shareholder Meeting 25
Slide 26: Resolution 3
Resolution 3. Re-election of Stephen Reindler • That Stephen Reindler, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company • This resolution is unanimously supported by the Board Meridian Energy Limited 2017 Annual Shareholder Meeting 26
Slide 27: Resolution 4
Resolution 4. Shareholder proposal • That Meridian investigate other areas of business that reduce CO2 emissions that Meridian can be involved in due to forecast climate change • This resolution is unanimously not supported by the Board Meridian Energy Limited 2017 Annual Shareholder Meeting 27
Slide 28: Resolution 4
Resolution 4. Postal and proxy vote totals VOTE TYPE VOTED % FOR 28,618,914 1.5% AGAINST 1,854,427,196 98.3% DISCRETIONARY1 4,072,480 0.2% ABSTAIN 2,219,305 N/A 1. Discretionary votes held by the Chair, Directors and other proxies Meridian Energy Limited 2017 Annual Shareholder Meeting 28
Slide 29: Resolution 4
Resolution 4. Shareholder proposal • That Meridian investigate other areas of business that reduce CO2 emissions that Meridian can be involved in due to forecast climate change • This resolution is unanimously not supported by the Board Meridian Energy Limited 2017 Annual Shareholder Meeting 29
Slide 30: Resolution 5
Resolution 5. Shareholder proposal • That Meridian lobby the New Zealand Government to support the use of debt-free money to make climate change financially viable, rather than using the proceeds from tax or debt to private bankers, to reduce CO2 emissions in the environment • This resolution is unan
Slide 31: Resolution 5
Resolution 5. Postal and proxy vote totals VOTE TYPE VOTED % FOR 21,516,468 1.1% AGAINST 1,862,011,353 98.7% DISCRETIONARY1 4,017,995 0.2% ABSTAIN 1,792,079 N/A 1. Discretionary votes held by the Chair, Directors and other proxies Meridian Energy Limited 2017 Annual Shareholder Meeting 31
Slide 32: Resolution 5
Resolution 5. Shareholder proposal • That Meridian lobby the New Zealand Government to support the use of debt-free money to make climate change financially viable, rather than using the proceeds from tax or debt to private bankers, to reduce CO2 emissions in the environment • This resolution is unan
Slide 33: Closing
Closing. Meridian Energy Limited 2017 Annual Shareholder Meeting 33
Slide 34: Disclaimer
Disclaimer. The information in this presentation was prepared by Meridian Energy with This presentation contains a number of non-GAAP financial measures, due care and attention. However, the information is supplied in summary including Energy Margin, EBITDAF, Underlying NPAT and gearing. Because form
Slide 35: Thank you
Thank you.