Meridian Energy Limited · NZX:MEL
Meridian Energy — Investor Presentation (November 2024)
28 slides from Meridian Energy's investor presentation, November 2024
Slide 1: Investor Presentation
MERIDIAN ENERGY LIMITED November 2024 2024 Investor Presentation
Slide 2: Why Meridian?
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 2 Why Meridian? Meridian’s completed Harapaki Wind Farm in Hawke’s Bay
Slide 3: Why Meridian? Leading sustainability performance
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 3 Why Meridian? Leading sustainability performance. Green Finance Climate-related Disclosures Framework Aotearoa New Zealand Climate Standards NZ CS 1, NZ CS 2, NZ CS 3 Greenhouse Gas Emissions Inventory July 2022 1 Report Cover image by nadia
Slide 4: Why Meridian? High quality investment
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 4 Why Meridian? High quality investment. quality, scale high free cash progressive balance sheet strong growth deep assets flow ordinary headroom outlook renewable dividend development pipeline
Slide 5: New Zealand electricity market
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 5 New Zealand electricity market Meridian’s Benmore hydro station in the Mackenzie Basin, South Canterbury
Slide 6: NZ electricity market
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 6 NZ electricity market A reliable, affordable and environmentally sustainable electricity system. A well functioning competitive market with high level of renewable resources and rational competition. Vertical integration is the prevailing ma
Slide 7: NZ electricity market
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 7 New Zealand gas production NZ electricity market PJ 300 actual forecast 250 Hydro generation is managed against limited controlled 200 storage. 150 Bulk of hydro inflow is anti-correlated to winter 100 demand peak. 50 0 Efficient and well-fu
Slide 8: NZ electricity market
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 8 NZ electricity market 5 major generators (all listed, 3 1 transmission grid 29 distribution 1 large industrial user (Rio 40 retail brands 2.3 million majority Govt owned), proposed owner (state owned) businesses (various Tinto smelter), ~13%
Slide 9: NZ electricity market pricing
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 9 NZ electricity market pricing Meridian average generation price Benmore ASX futures settlement price $/MWh $/MWh 30 June 2023 28 June 2024 200 500 31 July 2024 30 August 2024 400 30 September 2024 150 300 100 173 171 200 130 50 89 100 73 64
Slide 10: NZ electricity market decarbonisation opportunity
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 10 NZ electricity market decarbonisation opportunity 2022 greenhouse gas emissions by sector Agriculture 3% 1% Transport 5% 6% Manufacturing & construction 6% Heat production/other 78.4 Industrial processes 8% MtCO2e 53% Waste Electricity gene
Slide 11: NZ electricity market projected demand
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 11 NZ electricity market projected demand Annual NZ Demand for Generation By 2050 New Zealand will require around $30 GWh billion of investment in new renewable generation. 75,000 Consenting under the current Resource 70,000 High Management Ac
Slide 12: About Meridian
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 12 About Meridian Maintenance work at Meridian’s West Wind Farm near Wellington
Slide 13: About Meridian
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 13 About Meridian 374,000 Total shareholder return customers Meridian TSR NZX50 Index 60% 40% 60% 20% 36% 33% 20% 19% 25% 15% 12% 17% 10% 0% -8% -20% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Financial Year ended 30 June Source: M
Slide 14: About Meridian
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 14 About Meridian New Zealand’s largest generator, all production from renewable sources. Seven big hydro stations – flexible plant with the country’s largest storage. With low operating costs and capital needs. Six New Zealand wind farms - pr
Slide 15: 2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 15
Slide 16: 2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 16
Slide 17: Investment in a low carbon future
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 17 Investment in a low carbon future physical -$27M financial +$172M $2B invested into new and existing assets in the last 10 years. Stable returns on assets and equity (3%-5% per annum). New generation investment of $3B to deliver at least 7
Slide 18: Waitaki reconsenting
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 18 Waitaki reconsenting Re-consent application lodged for the Waitaki Hydro Scheme. Will be the largest consent ever granted under the RMA. Waitaki Hydro Scheme consists of eight power stations and provides 18% of this country’s electricity ne
Slide 19: The value of hydro storage
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 19 The value of hydro storage Annual Price Participation 140% History Waitaki chain Manapōuri Wind Solar 130% 120% GWAP/TWAP 110% 100% 90% 80% 70% 60% 50% 2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050 Financial Year ended 30
Slide 20: Future retail value pools
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 20 Future retail value pools Potential annual EBITDAF uplift1 ($M) for Meridian by innovation value pool for 2030 and steady state (assuming 30% market share) Value pool estimate in 2030 Incremental value in pool in 2040 Hypothesis highest val
Slide 21: Meridian's decarbonisation
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 21 Meridian’s decarbonisation ‘Half by 2030’ operational emissions reduction target. Target of net carbon zero by 2050. Continued inclusion in the Dow Jones Asia Pacific Sustainability Index. Meridian Zero electric vehicle charging at Eastbour
Slide 22: Delivering cleaner, cheaper energy
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 22 Delivering cleaner, cheaper energy $5 million Energy Wellbeing Programme helping 5,000 households out of energy hardship. Process Heat Electrification Programme expected to support the removal of 140,000 tCO2e annually by 2030. Solar instal
Slide 23: Ground-breaking agreements with NZAS
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 23 Ground-breaking agreements with NZAS 20-year term has removed uncertainty for the electricity sector and the people of Southland. Agreements include demand response provisions to help manage low hydro storage conditions. Value of demand res
Slide 24: Dividends
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 24 Dividends Total dividends declared Recent change to an operating free cash flow-based cps Ordinary dividends Special dividends dividend policy. 25 FY24 final ordinary dividend of 14.85cps (+25% on 20 2.44 FY23), 80% imputed. 15 FY24 full ye
Slide 25: Financial performance
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 25 Financial performance EBITDAF Net profit after tax (continuing operations) Operating cash flows $M $M $M 1,000 500 800 800 400 600 600 300 400 905 415 451 429 667 400 787 709 783 200 604 692 509 200 431 461 200 100 175 95 0 0 0 2020 2021 20
Slide 26: Financial metrics
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 26 Financial metrics Source: Meridian
Slide 27: Thank you
2024 INVESTOR PRESENTATION November 2024 MERIDIAN ENERGY 27 Thank you Container installation at Meridian’s Ruakākā Battery Energy Storage system near Whangārei
Slide 28: Disclaimer
2024 NOVEMBER PRESENTATION November 2024 MERIDIAN ENERGY 28 Disclaimer The information in this presentation was prepared by Meridian Energy with companies and they should not be considered in isolation from, or construed due care and attention. However, the information is supplied in summary as an a
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