Meridian Energy Limited · NZX:MEL

Meridian Energy — Investor Presentation (March 2022)

17 slides from Meridian Energy's investor presentation, Mar 8, 2022

  1. Slide 1: Meridian Energy Presentation

    Meridian Energy Presentation 8 MARCH 2022 Construction at Meridian Energy’s latest wind farm, Harapaki, near Napier

  2. Slide 2: About Meridian

    About Meridian  NZ$13b company, one of NZ’s largest listed companies, 51% Government owned HARAPAKI (construction)  Largest of five listed NZ retailer generators  New Zealand’s largest generator, all production from renewable sources  Seven big hydro stations – flexible plant with the country’s

  3. Slide 3: Governance

    Governance Mark Cairns Michelle Henderson  Chair of Safety &  Safety & Sustainability Sustainability Committee Committee member  Freightways Chair (1 April)  Audit & Risk Committee  Sanford Director member  Fulton Hogan Director (unlisted) Jan Dawson Nagaja Sanatkumar  Chair of People &  Peo

  4. Slide 4: Strategic initiatives

    Strategy Clean energy for a fairer and healthier world Champion Optimise Grow initiatives Strategic Competitive markets Trading & asset management Retail Sustainability Re-consenting Generation Climate action Financing Flux Grow a clear sustainability leadership NZ’s highest customer satisfaction po

  5. Slide 5: Sustainability

    Sustainability Our Material Topics 2030 emissions target (scope 1-3) tCO2e Environmental Social Governance 47,279 actual target 50,000 Action on climate change Electricity pricing Sustainability leadership 44,359 Halving 2019 Pipeline of generation Support for vulnerable Good governance, ethical 40,

  6. Slide 6: Social focus

    Social focus Local communities  Long term relationships, community relationship managers  $9M of local project support over 14 years Iwi  Recognise the mana whenua of Ngāi Tahu  Close association with local rūnaka  Focus on strengthening our iwi partnerships KidsCan  $1M annual contribution to

  7. Slide 7: Financial performance

    Financial performance  Double digit shareholder returns every year since Total shareholder return 80% listing 60%  Sustained earnings through that period 60%  High free cash flow, high payout ratio, stable 36% 40% 33% ordinary dividend 20% 19%  Balance sheet headroom to fund potentially 20% 15%

  8. Slide 8: Dividends and capital structure

    Dividends and capital structure  Ordinary dividends generally imputed to around Dividend declared CPS 85% Interim ordinary dividend Final ordinary dividend Special dividend Total 25  Active dividend reinvestment plan 21.30 18.91 19.20 19.34  Recent changes to Dividend Policy: 20 18.23 18.38 4.88

  9. Slide 9: Retail initiatives

    Retail initiatives Certified Renewable Energy  60 customers now with Meridian’s Certified Renewable Energy product  Net proceeds of the product will be reinvested back into decarbonisation projects Energy hardship  Developing a new and more comprehensive energy hardship solution  To be trialled

  10. Slide 10: NZAS contract termination

    NZAS contract termination NZAS consumes around 12% of the electricity produced in NZ  Current contract terminates 31 December 2024  NZAS makes the purest aluminium in the world  NZAS has one of the lowest carbon footprints of an aluminium smelter in the world  Compared to a coal-fired smelter, N

  11. Slide 11: NZAS contract termination - mitigation

    NZAS contract termination - mitigation NZAS contract 14 Jan May 21 Aug 21 1 Jan Feb 22 1 Jan 1 Jan 31 Dec investor annual interim 2021 day 2022 results 2023 2024 2024 results Meridian portfolio response Lower South Island on on 1,180 MW completion transmission schedule schedule capacity North Island

  12. Slide 12: Future generation

    Future generation  Electricity demand in New Zealand could grow by up to 150% by 2050  $40b or more of investment in new generation could be needed  Existing, aging thermal generation will need to be replaced  The market will need to build the equivalent of one Harapaki every year at a minimum 

  13. Slide 13: Renewable development pipeline

    Renewable development pipeline  Utility scale solar development announced to complement battery at Ruākākā Energy Park  Assessments continuing on additional solar sites, land option acquired at Bunnythorpe  20 potential new wind and solar development options Meridian’s current development Mainten

  14. Slide 14: Harapaki wind farm construction

    Harapaki wind farm construction  Site located 50km north of Napier on SH5  Will be NZ’s second largest and highest elevated wind farm, powering 70,000 households  Site enabling and mobilisation works completed in September 2021  A wet spring and early summer has impacted earthworks and slowed pr

  15. Slide 15: Closing comments

    Closing comments  Lower NZAS pricing has been absorbed  Dividend growth with higher FY22 interim dividend  Bulk of the MEA sale proceeds are earmarked for future NZ investment  Competing hard for retail growth and lots more new generation options are our focus  Sound progress on development of

  16. Slide 16: Glossary

    Glossary Hedging volumes buy-side electricity derivatives excluding the buy-side of virtual asset swaps Average generation price the volume weighted average price received for Meridian’s physical generation Average retail contracted sales price volume weighted average electricity price received from

  17. Slide 17: Disclaimer

    Disclaimer The information in this presentation was prepared by Meridian Energy with they are not defined by GAAP or IFRS, Meridian's calculation of these due care and attention. However, the information is supplied in summary measures may differ from similarly titled measures presented by other for

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