Mercury Nz Ltd. · NZX:MCY
Mercury Nz — Non-Deal Roadshow (December 2017)
21 slides from Mercury Nz's roadshow presentation, Dec 12, 2017
Slide 1: Governance Roadshow Presentation – December 2017
STOCK EXCHANGE LISTINGS: NEW ZEALAND (MCY) / AUSTRALIA (MCY) For personal use only NEWS RELEASE Governance Roadshow Presentation – December 2017 12 December 2017 – Mercury will present a series of investor meetings during December 2017. 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 12 December 2017
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 ~7,000GWh 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: Our Mission
For personal use only 4 OUR MISSION
Slide 6: How Mercury Sustains and Grows Value
For personal use only HOW MERCURY SUSTAINS AND GROWS VALUE 5 OUR BUSINESS
Slide 7: Strategic Drivers & FY2017 Outcomes: Delivering Customer Advocacy
STRATEGIC DRIVERS & FY2017 OUTCOMES DELIVERING CUSTOMER ADVOCACY For personal use only > Below market customer churn > Trader churn1 of 5.7%2 versus market at 7.1% > Increasing customer satisfaction > Customer satisfaction3 of 64%, up 4% from FY2016 > Award winning ‘Energy Made Wonderful’ campaign >
Slide 8: Strategic Drivers & FY2017 Outcomes: Leveraging Core Strengths
STRATEGIC DRIVERS & FY2017 OUTCOMES LEVERAGING CORE STRENGTHS For personal use only > Goal of zero-harm > 95% of employees agreed that Mercury is committed to the Health and Safety of its people1 > One serious injury incident in FY2017 due to office-based stair fall > Increasing employee engagement
Slide 9: Strategic Drivers & FY2017 Outcomes: Delivering Sustainable Growth
STRATEGIC DRIVERS & FY2017 OUTCOMES DELIVERING SUSTAINABLE GROWTH For personal use only > Managing cost > Operating costs flat for the 4th consecutive year > Investing in growth > Strategic review of future growth options > Generation development options ready > Minimal growth capex in FY2017 > Grow
Slide 10: Mercury's Financial Track Record
MERCURY’S FINANCIAL TRACK RECORD EBITDAF Interim dividend Final dividend OPEX Operating Expenditure One-off costs DISTRIBUTIONS For personal use only 600 600 600 Special dividend Share buyback CAGR: ~5% 500 500 400 400 Flat from FY2014 400 9 years of ordinary dividend growth $m $m $m 300 300 200 200
Slide 11: 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 Dividend Policy is to make Key ratio for stand alone S&P distribution
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 > Key governance focus for 2017 included: > Board skills and experience > Enhanced sustainability reporting > Appointment of Scott St John made to complement skills of e
Slide 14: Board of Directors
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 15: Leadership Team
For personal use only 14 LEADERSHIP TEAM
Slide 16: Leadership Team
LEADERSHIP TEAM > Composition of Leadership Team aligned with strategic For personal use only priorities LEADERSHIP TEAM TENURE IN COMPANY > Range of tenures across Leadership Team balances retention of institutional knowledge with diverse perspectives and capabilities > HRC provides thought partner
Slide 17: Risk Management
RISK MANAGEMENT > Comprehensive approach encompassing financial, For personal use only strategic, environmental, operational, regulatory, reputational, social and governance risks from internal and external sources > Board insurance committee formed in FY2018 for: > Deep dive into key risks facing t
Slide 18: 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 > Approach to embedding sustainability reflected in the foundations of the business: wellbeing (of our people and customers), kait
Slide 19: Remuneration
REMUNERATION > Executive short-term incentive KPIs are aligned with For personal use only our strategy and What Matters Most > Scorecard for variable component covers: Target area FY2018 Weighting % Financial: EBITDAF 30 People 20 Customer 20 Wellbeing 20 Long-term Platform 10 > Long-term incentives
Slide 20: Ownership
OWNERSHIP > Listed on NZX and ASX in May 2013 For personal use only > Currently more than 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 Direc
Slide 21: 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