Contact Energy Limited · NZX:CEN
Contact Energy — Investor Day (March 2020)
8 slides from Contact Energy's investor day presentation, Mar 12, 2020
Slide 1: Queenstown, March 2020
For personal use only Queenstown, March 2020
Slide 2: Disclaimer and important information
Disclaimer and important information For personal use only This presentation may contain projections or forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ material
Slide 3: Snapshot
For personal use only SNAPSHOT It is an owner and operator of low-cost, long-life renewable generation assets and is developing its consented geothermal development options. Contact Energy / Queenstown Investor day / March 2020 All figures at 30 June 2019 or for FY19 year. 3
Slide 4: New Zealand electricity market
For personal use only NEW ZEALAND ELECTRICITY MARKET What does your power bill pay for? GST Retail Levies Meter rentals 13% 13% 3% 0% $2,419 Generation per year 32% cost 39% Transmission and distribution Spot “New Zealand serves as a electricity model for effective energy pool markets and secure pow
Slide 5: Managing supply and demand
For personal use only MANAGING SUPPLY AND DEMAND National quarterly supply and demand (TWh) Flexible thermal 11.6 10.9 production is required 10.2 10.5 Thermal and 0.5 hydro storage 1.1 2.6 3.5 Must-run renewable generation 7.6 Mean hydro inflows* 6.8 5.8 5.6 per annum of Geothermal** seasonal renew
Slide 6: Value drivers
For personal use only VALUE DRIVERS Electricity spot prices ($/MWh) Fixed price sales as a % of mean Fixed sales improves Generation weighted renewable generation earnings predictability from volatile wholesale 400 spot prices 200 Pricing Value from thermal assets 0 by selling at a fixed price Jan-1
Slide 7: Strong investment case
For personal use only STRONG INVESTMENT CASE <IR> Strong cash ESG Shares offer value flow generation and liquidity when CREDENTIALS benchmarked and operational performance Dividend policy Latent potential provides certainty OPEN with world-class ECONOMY geothermal capability Contact Energy / Queenst
Slide 8: Geothermal potential
For personal use only GEOTHERMAL POTENTIAL Opportunity Estimated total Operating free capital cost cash flow yield A world-class in operating free cash flow geothermal from capital deployment into = expertise with consented brownfield development an asset that we have a 60 year track record of manag