Mercury Nz Ltd. · NZX:MCY
Mercury Nz — Non-Deal Roadshow (December 2018)
22 slides from Mercury Nz's roadshow presentation, Dec 3, 2018
Slide 1: Governance Roadshow Presentation – December 2018 (news release)
STOCK EXCHANGE LISTINGS: NEW ZEALAND (MCY) / AUSTRALIA (MCY) For personal use only NEWS RELEASE Governance Roadshow Presentation – December 2018 3 December 2018 – Mercury will present a series of investor meetings during December 2018. The presentation materials are attached. ENDS For further inform
Slide 2: Governance Roadshow
Mercury For personal use only Governance Roadshow JOAN WITHERS JAMES MILLER Chair Director 3 December 2018
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 Market Capitalisation of 100% RENEWABLE GENERATOR, RETAILER AND METERING PROVIDER 85,000 $4.6b1 ~6,800GWh generation per annum from OWNERS WITH CROWN AS flexible hydro and baseload geothermal 2nd largest NZ gentailer MAJORITY OWNER ~390,000 customers 10th la
Slide 5: Mercury at a Glance
MERCURY AT A GLANCE For personal use only 4 MERCURY
Slide 6: Our Mission
For personal use only 5 OUR MISSION
Slide 7: Executing Our Strategy
EXECUTING OUR STRATEGY > Our priorities are aligned to our five pillars of sustainable business performance: For personal use only 6 OUR STRATEGY
Slide 8: Strategic Drivers & FY2018 Outcomes: Delivering Customer Advocacy
19.8% 6.4% Total churn2 63% STRATEGIC DRIVERS & FY2018 OUTCOMES Mercury brand FY2017: 17.7% Customer trader churn2 Market: 21.0% satisfaction3 DELIVERING CUSTOMER ADVOCACY FY2017: 4.4% FY2017: 64% For personal use only Market: 8.1% > Relative churn advantage > Mercury brand trader churn1 significant
Slide 9: Strategic Drivers & FY2018 Outcomes: Leveraging Core Strengths
1.06 94% 0.87 LWAP/GWAP2 FY2017: 1.05 Geothermal STRATEGIC DRIVERS & FY2018 OUTCOMES FY2018 TRIFR1 availability3 FY2017: 1.05 FY2017: 96% LEVERAGING CORE STRENGTHS For personal use only Market4: ~97% > Goal of zero-harm > No high-severity incidents; TRIFR1 at 0.87 (down from 1.05 in FY2017) > High-l
Slide 10: Strategic Drivers & FY2018 Outcomes: Delivering Sustainable Growth
15.1cps Total Ordinary STRATEGIC DRIVERS & FY2018 OUTCOMES 19.99% Dividend $50m Tilt FY2017: 14.6cps Share Buyback DELIVERING SUSTAINABLE GROWTH acquisition of 15.6m shares For personal use only > Managing cost > Opex flat versus FY2017 at $214m for fifth year running > Investing in growth > Acquire
Slide 11: Mercury's Financial Track Record
MERCURY’S FINANCIAL TRACK RECORD EBITDAF DISTRIBUTIONS For personal use only OPEX Operating expenditure One-off costs Interim dividend Final dividend 600 CAGR: ~3% 600 Special dividend Share buyback 600 400 400 400 10 years of ordinary dividend growth Flat from FY2014 $m $m $m 200 200 200 0 0 0 2009
Slide 12: Continuous Focus on Prudent Capital Management
CONTINUOUS FOCUS ON PRUDENT CAPITAL MANAGEMENT For personal use only 11 MERCURY
Slide 13: Stable Capital Structure
STABLE CAPITAL STRUCTURE > BBB+ rating is key reference point for dividend policy and an efficient and sustainable capital structure For personal use only > S&P re-affirmed Mercury’s credit rating of BBB+/stable on 11 December 2017 > One-notch upgrade given majority Crown ownership > Capital structu
Slide 14: Board of Directors
For personal use only BOARD OF DIRECTORS
Slide 15: Board of Directors
BOARD OF DIRECTORS > Committed to maintaining the highest standards of business For personal use only behaviour and accountability > Board recognised in Corporate Confidence Index (CCI) in critical areas such as effective board, high standard of corporate governance and appropriate board composition
Slide 16: Board of Directors: Skills, Development and Succession
BOARD OF DIRECTORS For personal use only Skills matrix / gaps and strengths1 Ongoing professional development > Detailed skills requirements developed against > Keeping up to date on core skills and emerging business strategies and future direction trends through ongoing training, e.g. > Balancing i
Slide 17: Leadership Team
For personal use only LEADERSHIP TEAM
Slide 18: Leadership Team
LEADERSHIP TEAM > Composition of Leadership Team aligned with strategic LEADERSHIP TEAM TENURE IN COMPANY For personal use only priorities > Range of tenures across Leadership Team balances retention of institutional knowledge with diverse perspectives and capabilities > HRC provides thought partner
Slide 19: Remuneration
REMUNERATION > Executive short-term incentive KPIs are aligned with our strategy For personal use only > Long-term incentives are aligned with the enhancement of shareholder value over a multi-year period > New Zealand REM incorporates balanced incentives at an order of magnitude different to intern
Slide 20: Risk Management
RISK MANAGEMENT > Comprehensive approach encompassing financial, strategic, environmental, operational, regulatory, reputational, For personal use only social and governance risks from internal and external sources 19 KEY GOVERNANCE MATTERS
Slide 21: Ownership
OWNERSHIP > Listed on NZX and ASX in May 2013 For personal use only > Approximately 85,000 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 > Eight independent Directors -
Slide 22: For Further Information
For personal use only FOR FURTHER INFORMATION >> TIM THOMPSON | HEAD OF TREASURY & INVESTOR RELATIONS T. +64 275 173 470 E. INVESTOR@MERCURY.CO.NZ