Meridian Energy Limited · NZX:MEL

Meridian Energy — Non-Deal Roadshow (June 2014)

14 slides from Meridian Energy's roadshow presentation, June 2014

  1. Slide 1: Meridian Energy Broker Roadshow Presentation June 2014

    Meridian Energy BROKER ROADSHOW PRESENTATION JUNE 2014

  2. Slide 2: Disclaimer

    Disclaimer The information in this presentation was prepared by Meridian Energy with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the informatio

  3. Slide 3: Life as a listed company – what's different?

    Life as a listed company – what’s different? § Scrutiny § Awareness of our obligations and meeting Prospectus forecasts § Public accountability § Share price is a measuring stick § Some things don’t change § Safety comes first § Commitment to a better energy future § Communities and lasting r

  4. Slide 4: Since we listed

    Since we listed We announce Listing Inter island 1,100 Australian no changes to 8,000 link upgrade Powershop Government current retail Powershop completed, Australia announces RET energy prices in Australia allowing customers review terms the near term customers greater flows US solar plant sale Nov

  5. Slide 5: How the industry works

    New Zealand Electricity Industry How the industry works DIRECT CONSUMERS $ $ WHOLESALE COMMERCIAL USERS RESIDENTIAL USERS ELECTRICITY MARKET $ GENERATION TRANSMISSION DISTRIBUTION RETAILERS 5 1 29 20 Major generators State-owned national Distribution businesses Electricity retail brands 1 transmissi

  6. Slide 6: How we make money isn't simple, but it works

    How we make money isn’t simple, but it works Selling Selling Buying Buying Selling that electricity to our electricity we electricity from electricity electricity customers generate to the wholesale generated to the the wholesale market for by other wholesale market customers companies market FY14 P

  7. Slide 7: The New Zealand regulatory picture

    The New Zealand regulatory picture Labour-Green Proposed Reforms § There are no more details § The current market structure does not need to be replaced. This is acknowledged by most academics § Political aims can be achieved by other means § Is it an argument around a water tax? Transmission Pr

  8. Slide 8: The Australian regulatory picture

    The Australian regulatory picture Renewable Energy Target (RET) § The RET supports renewable generation development in Australia § The Abbott Government has commenced a review of the RET § This review is expected to be completed later this year § Significant weakening of the RET would impact our

  9. Slide 9: Our contract with the Tiwai smelter

    Our contract with the Tiwai smelter New Zealand Aluminium Smelters (NZAS) § Meridian’s largest customer and New Zealand’s largest electricity user § We do not physically supply NZAS with electricity, rather the contract fixes the price NZAS pays for a set amount of electricity (572MW) § The curre

  10. Slide 10: Generation oversupply in the market

    Generation oversupply in the market Demand NATIONAL DEMAND GWh 3,800 § National electricity demand has declined slightly between 2010 and 2013 3,600 § Demand in 2014 is flat compared to 2013 3,400 § Impacted by a longer term decline in electricity 3,200 consumption in parts of the industrial sect

  11. Slide 11: The hot retail market

    The hot retail market § New Zealand is the most competitive electricity market MARKET ICP SWITCHING (ALL RETAILERS) ICPs in the world in terms of switching1 50,000 § Average retail churn across all retailers is running close 40,000 to 20% 30,000 § This competitive pressure is reflected in our dec

  12. Slide 12: This year's financial performance

    This year’s financial performance February 14 Guidance EBITDAF $NZ 660 700 § “Given performance to date, should inflows from this point 585 +7% 590 600 548 match assumptions in Meridian’s Prospectus, full year 477 500 EBITDAF would exceed the Prospectus forecast by approximately 7%”1 400 300 200 Ana

  13. Slide 13: What we do in the community

    What we do in the community Community Funds § A Community Funds programme to support local projects § $1m of contributions in the past 18 months Sponsorships § A major partnership with KidsCan, providing assistance to low-decile schools across the country § Corporate sponsorships such as South I

  14. Slide 14: What we will be focused on

    What we will be focused on § Ensuring our staff go home safely each day § Meeting our Prospectus forecasts § Tightly managing operating and capital costs § Improving the effectiveness of our customer service and support § Maintaining our best long term generation development options § Generati

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