Meridian Energy Limited · NZX:MEL
Meridian Energy — Debt Investor Presentation (March 2023)
28 slides from Meridian Energy's debt investor presentation, Mar 6, 2023
Slide 1: Meridian Energy Limited Green Bond Offer
Meridian Energy Limited Green Bond Offer 6 MARCH 2023 Joint Arranger, Green Bond Co- Joint Arranger, Joint Lead Joint Lead Managers: Ordinator, Joint Lead Manager: Manager:
Slide 2: Important Notice
Important Notice This presentation has been prepared by Meridian Energy Limited (Meridian) in relation to its offer of unsecured, unsubordinated fixed rate green bonds maturing on 20 September 2028 (Green Bonds) (Offer). The Offer of Green Bonds is made in reliance upon the exclusion in clause 19 of
Slide 3: Offer Highlights
Offer Highlights M AR CH 2 02 3 R E TAI L B ON D OFFE R 3
Slide 4: Offer Highlights
Offer Highlights Issuer Meridian Energy Limited (Meridian). 5.5 year unsecured, unsubordinated, fixed rate green bonds (Green Bonds). Description The Green Bonds are Green Debt instruments under Meridian’s Green Finance Framework dated February 2023 (as amended from time to time) and are certified b
Slide 5: About Meridian
About Meridian M AR CH 2 02 3 R E TAI L B ON D OFFE R 5
Slide 6: About Meridian
About Meridian § New Zealand’s largest generator, all production from renewable sources § Seven big hydro stations – flexible plant with the country’s largest storage § Low operating costs and capital needs § Five New Zealand wind farms, with the first built in 2004 § Currently constructing a sixth
Slide 7: New Zealand Electricity Market
New Zealand Electricity Market 31 January 2023 5 major generators (all listed, 1 transmission grid 1 very large industrial user 29 electricity 44 retailers Over 2 million customer 3 majority Govt owned) owner (state owned) (Rio Tinto/Sumitomo distribution businesses consumers smelter), ~13% of natio
Slide 8: New Zealand Electricity Market continued
New Zealand Electricity Market continued § A reliable, affordable and environmentally sustainable electricity system § A well functioning competitive market with a high level of renewable resources and rational competition § Vertical integration is the prevailing market structure § Wholesale and ret
Slide 9: Policy and Regulation
Policy and Regulation Emissions Reduction Plan § Released in May 2022, it sets out how New New Zealand Average Annual Emissions Zealand will meet its first emissions budget for Mt CO2-e 2022-2025 Emissions Reduction Plan 100 § Requires additional emissions reductions of 4% § Plan targets transport a
Slide 10: Renewable Growth
Renewable Growth Annual Market Demand for Generation TWh history range of future growth outcomes 70 $30+ 65 billion of new generation 60 investment by 2050 55 Source: Meridian 50 Harapaki wind farm Carbon neutral, stable 45 on schedule operational emissions 40 7 in 71 35 20 in 282 30 1997 2000 2003
Slide 11: Meridian’s Strategy
Meridian’s Strategy M ARCH 20 23 RE T AI L B ON D OFFE R 11
Slide 12: Meridian’s Renewable Development Pipeline
Meridian’s Renewable Development Pipeline § Deep pipeline of 4.7 GW (11.1 TWh) of development options § Pipeline has doubled in size in the last six months § 1.5 GW secured, 3.2 GW in advanced prospects M ARCH 20 23 RE T AI L B ON D OFFE R 12
Slide 13: Harapaki Wind Farm – Hawke’s Bay
Harapaki Wind Farm – Hawke’s Bay § $448M capital costs § 176MW capacity / 542GWh generation § To power the equivalent of 70,000 homes § Local iwi are an integral part of our team § Sustainability focus to design out emissions § Cyclone Gabrielle impacts still being assessed M ARCH 20 23 RE T AI L B
Slide 14: Portfolio Response to NZAS Contract Termination
Portfolio Response to NZAS Contract Termination M ARCH 20 23 RE T AI L B ON D OFFE R 14
Slide 15: Sustainability at Meridian
Sustainability at Meridian Our Purpose M ARCH 20 23 RE T AI L B ON D OFFE R 15
Slide 16: Our Climate Action Plan
Our Climate Action Plan M ARCH 20 23 RE T AI L B ON D OFFE R 16
Slide 17: Our Leading Sustainability Performance Half by 30
Our Leading Sustainability Performance Half by 30 2030 We are focused on re our gross operationa emissions by half by Where we can’t reduce our operational e * Meridian’s operational emission boundary includes all scope 1, 2 and Green Greenhouse Our Finance Gas Emissions Framework Inventory Half by
Slide 18: Financial Information and Capital Structure
Financial Information and Capital Structure M AR CH 2 02 3 R E TAI L B ON D OFFE R 18
Slide 19: Financial Performance
Financial Performance Meridian's interim reporting date is 31 December and final half year date and financial year end date is 30 June EBITDAF1 (continuing operations) Net Profit after Tax (continuing operations) Capital Expenditure $M Interim Final half-year Total $M Interim Final half-year Total $
Slide 20: Funding
Funding Debt Maturity Profile as at 31 December 2022 § Total borrowings as at 31 December 2022 $M Drawn debt maturing (face value) Available facilities maturing of $1,118M 700 600 § Committed bank facilities of $550M which 500 were undrawn 400 475 § Minimum headroom required in addition 300 75 to fo
Slide 21: Credit Rating and Covenants
Credit Rating and Covenants § Meridian targets a long-term credit rating of Key Metrics Financial Year ended 30 June 2018 2019 2020 2021 2022 BBB+ $M Share capital 1,598 1,599 1,598 1,595 1,671 § Issuer Credit Rating: BBB+/Stable (S&P Retained earnings -1,010 -1,171 -1,542 -1,548 -1,242 Global) Othe
Slide 22: Green Finance Programme
Green Finance Programme M ARCH 20 23 RE T AI L B ON D OFFE R 22
Slide 23: Key Terms and Dates
Key Terms and Dates M AR CH 2 02 3 R E TAI L B ON D OFFE R 23
Slide 24: Key Terms
Key Terms Issuer Meridian Energy Limited (Meridian). 5.5 year, unsecured, unsubordinated, fixed rate green bonds (Green Bonds). Description The Green Bonds are Green Debt instruments under Meridian’s Green Finance Framework dated February 2023 (as amended from time to time) and are certified by the
Slide 25: Key Terms continued
Key Terms continued The Trust Documents contain the following financial covenants: a) the ratio of EBITDA to Interest and Financing Costs must not be less than 2.5 times; b) at all times Debt will not be more than 55% of Debt plus Equity; Financial Covenants c) at all times Equity will not be less t
Slide 26: Key Dates
Key Dates Opening Date Monday, 6 March 2023 Closing Date 11.00am, Thursday, 9 March 2023 Rate Set Date Thursday, 9 March 2023 Issue Date and Allotment Date Monday, 20 March 2023 Expected Date of initial Tuesday, 21 March 2023 quotation on NZX Debt Market 20 March and 20 September of each year up to
Slide 27: Why Meridian?
Why Meridian? quality, high free strong credit balance strong deep scale assets cash flow rating sheet growth renewable headroom outlook development pipeline H2 Renewable energy generation Customer decarbonisation New markets Building on our existing 100% renewable We are committed to providing tang
Slide 28: Disclaimer
Disclaimer The information in this presentation was prepared by Meridian 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 information. To t
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