Mercury Nz Ltd. · NZX:MCY
Mercury Nz — Non-Deal Roadshow (December 2016)
23 slides from Mercury Nz's roadshow presentation, Dec 5, 2016
Slide 1: News Release: Governance Roadshow Presentation – December 2016
STOCK EXCHANGE LISTINGS: NEW ZEALAND (MCY) / AUSTRALIA (MCY) For personal use only NEWS RELEASE Governance Roadshow Presentation – December 2016 5 December 2016 Mercury will present at a series of investor meetings during December 2016. The presentation materials are attached. ENDS For further infor
Slide 2: Governance Roadshow
Mercury For personal use only Governance Roadshow JOAN WITHERS JAMES MILLER Chair Director 5 December 2016
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Mercury NZ Limited and its group of companies (“Company”) for informational purposes. This disclaimer For personal use only applies to this document and the verbal or written comments of any person presenting it. Information in this presentation has
Slide 4: Mercury at a Glance
MERCURY AT A GLANCE For personal use only Coming together under one brand, INTEGRATED ELECTRICITY GENERATOR / RETAILER TOP 10 MERCURY with average annual generation of NZX LISTED COMPANY Bringing together our 6,800GWh close to major load centres with market capitalisation of $4.0b and heritage and o
Slide 5: Our Purpose, Goal and Strategy
OUR PURPOSE OUR GOAL Inspiring New Zealanders to enjoy energy in more To be New Zealand’s leading energy brand For personal use only wonderful ways Inspiring New Zealanders OUR STRATEGY We want to inspire New Zealanders by delivering value, Mercury will create long term value for our owners by: inno
Slide 6: How Mercury Sustains and Grows Value
HOW MERCURY SUSTAINS AND GROWS VALUE For personal use only 5
Slide 7: Progress on Strategy – One Brand
PROGRESS ON STRATEGY – ONE BRAND > Move to one brand, Mercury, on 29 July 2016 For personal use only > Significant strategic step – collective energy and focus behind a single brand for the first time > New brand brings together near century-long heritage with our customer-driven innovation > Mercur
Slide 8: Progress on Strategy
PROGRESS ON STRATEGY > Delivering customer advocacy > Increased customer satisfaction For personal use only > Rewarding customer loyalty through > 62% of Mercury customers are highly satisfied Airpoints and Free Power Days versus 47% for other major brands1 Creating long > Making it easier for custo
Slide 9: Leadership Team
For personal use only 8 LEADERSHIP TEAM
Slide 10: Leadership Team
LEADERSHIP TEAM > Composition of Leadership Team aligned with strategic For personal use only priorities LEADERSHIP TEAM TENURE IN COMPANY > Appointments of Chief Marketing Officer and GM Digital Services in June 2016 to deliver greater product and service innovation to customers > Range of tenures
Slide 11: Fraser Whineray – Chief Executive
FRASER WHINERAY – CHIEF EXECUTIVE For personal use only > Joined Mercury in 2008; Chief Executive since September 2014 > Active and high-profile role in advocacy for New Zealand energy sector: > Showcasing value and benefits for consumers > Building political and regulatory support for desirable mar
Slide 12: Board of Directors
For personal use only 11 BOARD OF DIRECTORS
Slide 13: Board of Directors
BOARD OF DIRECTORS > Committed to maintaining the highest standards of business For personal use only behaviour and accountability > Regular reviews of the Company‟s governance structures to ensure consistent best practice (NZX, ASX and international best practice recommendations) > Developing the p
Slide 14: Board of Directors
BOARD OF DIRECTORS For personal use only Skills matrix / gaps and strengths Ongoing professional development > Derived from business foundations and future > Keeping up to date on core skills and emerging directions trends > Balancing industry knowledge with management > Continuing and extending lea
Slide 15: ESG
ESG > Board and management committed to developing reporting on factors material For personal use only to the business, its ultra-long term sustainability and prosperity > Core ESG factors make up what we recognise as the foundations of the business – wellbeing (of our people and customers) and kait
Slide 16: Risk Management
RISK MANAGEMENT For personal use only > Comprehensive approach encompassing financial, strategic, environmental, operational, regulatory, reputational, social and governance risks from internal and external sources > Thematic topics examined in 2016: > Compliance processes > Contract management > We
Slide 17: Health & Safety
HEALTH & SAFETY TOTAL RECORDABLE INJURY FREQUENCY RATE For personal use only > Zero harm is our well-being goal (TRIFR) > FY2016 demonstrates continued improvement in (per 200,000 hours; includes onsite employees and contractors) achieving our goal 2.0 Low Severity Incidents > no high severity incid
Slide 18: People
PEOPLE > We are investing in leveraging and building capability; over 2016 we For personal use only delivered > A company-wide foundation management programme > Unconscious bias training for leaders > Depth of succession talent utilised for internal opportunities > Diversity and inclusion is an inte
Slide 19: Remuneration
REMUNERATION > Improved disclosure in line with NZSA For personal use only recommendations > Scorecard for variable component covers: Target area Weighting % Financial: EBITDAF 30 Customer Satisfaction 30 Health & Safety 20 Employee Engagement 20 > New Zealand REM incorporates balanced incentives, a
Slide 20: Financial Track Record
FINANCIAL TRACK RECORD For personal use only ENERGY MARGIN EBITDAF 700 700 600 600 500 500 400 400 $m $m 300 300 200 200 100 100 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 UNDERLYING EARNINGS FREE CASH FLOW 700 700 600 600 500 500 400 400 $m $m 300 300 200 200 100 100
Slide 21: Capital Management
CAPITAL MANAGEMENT For personal use only FREE CASH FLOW (FCF) Net Cash Flow from Operating Activities less normalised stay-in-business capital expenditure BALANCE SHEET ORDINARY DIVIDENDS INVESTMENT IN GROWTH SPECIAL DISTRIBUTIONS Key ratio for stand alone S&P Dividend Policy is to make rating of „b
Slide 22: Dividends
DIVIDENDS > FY2016 fully imputed ordinary final dividend of 8.6cps For personal use only DIVIDEND Interim Final Specials Ordinary guidance > Ordinary dividend for FY2016 up 2% to 14.3cps, in line with guidance 25 > FY2016 non-imputed special dividend of 4.0cps > Increasing total distributions to 100
Slide 23: Ownership
OWNERSHIP > Listed on NZX and ASX in May 2013 For personal use only > Currently more than 90,000 shareholders with Crown as majority owner > Public Finance Act and Company‟s constitution require at least 51% Crown ownership > No other person may hold more than 10% of shares > Seven independent Direc