Meridian Energy Limited · NZX:MEL

Meridian Energy — Shareholder Meeting (December 2012)

23 slides from Meridian Energy's shareholder meeting presentation, Dec 7, 2012

  1. Slide 1: Annual Public Meeting for the Year Ended 30 June 2012

    ANNUAL PUBLIC MEETING FOR THE YEAR ENDED 30 JUNE 2012 7 DECEMBER 2012

  2. Slide 2: Agenda

    MERIDIAN ENERGY LIMITED Chris Moller, Chair  Introduction  Overview  2012 Financial Performance  Key Developments in 2012 Mark Binns, Chief Executive  Health & Safety  Key Drivers of 2012 Performance  Strategy Execution  Community & Environment  Current Issues  Outlook Questions and Answer

  3. Slide 3: Largest generator in New Zealand

    MERIDIAN ENERGY LIMITED INSTALLED GENERATION CAPACITY (MW) (Source: MED 2012 Energy Data File)  Largest generator in New Zealand – 28% of New 6% 6% 28% Zealand’s generation capacity 16%  Vertically integrated energy company  Focuses on generating electricity from renewable sources 22% 22%  Retai

  4. Slide 4: 2012 Financial Performance

    MERIDIAN ENERGY LIMITED GROUP PROFIT 74.6 2012 106.1  Net Profit after Tax was $75m compared to $303m in FY Financial Year End 30 June 303.1 2011 219.0 2011. Last year’s result included the gain on sale of the 2010 184.0 251.9 89.3 Tekapo stations of $157m1 2009 195.0 128.6 2008 104.5  Underlying

  5. Slide 5: Key Developments in 2012

    MERIDIAN ENERGY LIMITED  Commencement of new Chief Executive  IPO preparation  Rio Tinto discussions  Focus on core business  Hayes wind and Mokihinui hydro projects exited  Mill Creek and Mt Mercer wind projects approved ANNUAL PUBLIC MEETING FOR THE YEAR ENDED 30 JUNE 2012 7 DECEMBER 2012 5

  6. Slide 6: Health and Safety: Lost-Time Frequency Rates

    MERIDIAN ENERGY LIMITED  Improved health and safety metrics that outperform industry benchmarks LOST-TIME FREQUENCY RATES (MERIDIAN EMPLOYEE INCIDENTS PER MILLION HOURS WORKED) Meridian Employee Incidents per Million 7  Culture of zero harm using the Zero Incident 6 Industry Average 5 Programme 4

  7. Slide 7: Meridian Energy Limited Annual Public Meeting

    MERIDIAN ENERGY LIMITED ANNUAL PUBLIC MEETING FOR THE YEAR ENDED 30 JUNE 2012 7 DECEMBER 2012 7

  8. Slide 8: Total Inflows into Waitaki and Waiau Catchments

    MERIDIAN ENERGY LIMITED TOTAL INFLOWS INTO MERIDIAN'S WAITAKI AND WAIAU CATCHMENTS 22,000 Key 21,000 1 Hydro Generation Volume 2009 (excluding generation from Tekapo 20,000 10,764GWh1 Hydro Stations) 19,000 $48.53/MWh2 2 Average Wholesale Electricity Sales Price Received (Hydro & 18,000 Wind) for Ge

  9. Slide 9: New Zealand Physical Generation Volumes

    MERIDIAN ENERGY LIMITED NEW ZEALAND PHYSICAL GENERATION VOLUMES Record low inflows managed by: 2012 9,790 1,206 Financial Year Ended 30 June  Taking a conservative approach to hydro generation 2011 12,629 1,023 12,857 1,005  Using improved liquidity in the ASX market and 2010 2009 11,720 516 incre

  10. Slide 10: Electricity Demand Growth

    MERIDIAN ENERGY LIMITED ELECTRICITY DEMAND GROWTH (SOURCE MED) (Source MED - FORECAST AS AT NOV 2011)  There has been low growth in demand for electricity 60% 50% over the last 5 years driven by global economic Cumulative Growth (%) 40% conditions 30% 20%  Completed a review of the New Zealand dev

  11. Slide 11: Retail ICP Numbers and Contracted Sales

    MERIDIAN ENERGY LIMITED MERIDIAN ICP NUMBERS  Retail EBITDAF per MWh of contracted sales improved by 2012 116,580 35,369 122,834 12,521 Financial Year Ended 30 June $5.90 per MWh, assuming a fixed purchase price for 2011 109,565 21,169 129,651 12,391 electricity of $85/MWh 2010 89,596 7,119 149,226

  12. Slide 12: Strategy Execution

    MERIDIAN ENERGY LIMITED  Retail profitability improvements through better understanding of customer value and providing excellent service  Mill Creek construction commenced, an ideally situated wind farm with low unit cost  A strong focus on operational efficiency throughout the business  Progra

  13. Slide 13: Construction of the Macarthur wind farm progressing to plan

    MERIDIAN ENERGY LIMITED  Construction of the Macarthur wind farm progressing to plan  Foundations complete on all 140 turbines and first power has been exported. Full commissioning is expected in July 2013  Mt Millar generation volumes increased by 9% over FY 2011  Mt Mercer construction commenc

  14. Slide 14: Community and Environment

    MERIDIAN ENERGY LIMITED  Community Fund Programme granted $560,763 to community projects in FY 2012  National sponsorship totalled $1.4 million, including the Royal NZ Ballet, South Island Rowing & Living Legends community tree planting  Consecutive 2011 and 2012 Sustainable 60 Awards for work in

  15. Slide 15: Current Issues: NZAS Contract and Transmission Pricing

    MERIDIAN ENERGY LIMITED NZAS Contract  In 2007 Meridian and Rio Tinto subsidiary New Zealand Aluminium Smelters Ltd (NZAS) signed a contract that comes into effect on 1 January 2013. The new contract is a financial contract, which replaces the existing physical supply contract  Rio Tinto has reque

  16. Slide 16: Government Share Offer Programme and Outlook for 2013

    MERIDIAN ENERGY LIMITED Government Share Offer Programme  Meridian is ready when the Government decides it wishes to proceed with the next SOE sale after Mighty River Power. We have undertaken a company-wide due diligence and have a team in place ready to engage with Treasury Current performance 

  17. Slide 17: Meridian Energy Limited Annual Public Meeting

    MERIDIAN ENERGY LIMITED ANNUAL PUBLIC MEETING FOR THE YEAR ENDED 30 JUNE 2012 7 DECEMBER 2012 17

  18. Slide 18: Meridian Energy Limited Annual Public Meeting

    MERIDIAN ENERGY LIMITED ANNUAL PUBLIC MEETING FOR THE YEAR ENDED 30 JUNE 2012 7 DECEMBER 2012 18

  19. Slide 19: Energy Margin

    MERIDIAN ENERGY LIMITED Contracted Revenue Acquired Net Spot Exposure Generation Costs 2,400 2,200 2,000 302.2 1,800 1,600 1,400 1,328.3 $ M'illions 1,200 1,107.7 1,000 800 373.2 330.6 600 400 729.5 605.3 200 - Retail Wholesale Cost of Meridian Acquired Cost to Energy Margin Contracted Sales Contrac

  20. Slide 20: Energy Margin Movement 2011 to 2012

    MERIDIAN ENERGY LIMITED 1,500 Last Year Adjustments Contracted Revenue Acquired Net Spot Exposure Generation Costs 1,400 1,300 254.6 1,200 1,100 698.8 1,000 $ Millions 900 44.1 560.3 28.1 22.5 4.1 800 253.0 700 920.2 848.0 600 729.5 500 400 Energy Margin Tekapo NZAS Adjusted Retail Wholesale Cost of

  21. Slide 21: Segment Results

    MERIDIAN ENERGY LIMITED Record low hydrology conditions experienced during the year were the dominant driver of reduced profitability, however improvements were realised in underlying profitability of the retail segment and in our international and subsidiary segments ANNUAL PUBLIC MEETING FOR THE Y

  22. Slide 22: Disclaimer

    MERIDIAN ENERGY LIMITED  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 materially from those stated in any for

  23. Slide 23: Annual Public Meeting for the Year Ended 30 June 2012

    ANNUAL PUBLIC MEETING FOR THE YEAR ENDED 30 JUNE 2012 7 DECEMBER 2012

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