Contact Energy Limited · NZX:CEN
Contact Energy — UBS Conference 2015
13 slides from Contact Energy's conference presentation, Nov 17, 2015
Slide 1: Initiating change today
Initiating change today Dennis Barnes, Chief Executive Officer UBS Conference 17 November 2015 Presentation Contact Energy Limited
Slide 2: Disclaimer
Disclaimer This presentation may contain projections or forward- EBITDAF, underlying earnings after tax, OCAT and free looking statements regarding a variety of items. Such cash flow are non-GAAP (generally accepted accounting forward-looking statements are based upon current practice) profit measur
Slide 3: Snapshot of Contact
Snapshot of Contact $3.2b 166 MW (gross) 1,066 1 Our net assets are of geothermal generation We employ 1066 New Zealand’s only worth $3.2 billion (at commissioned May 2014 people from underground gas 30 June 2015) Auckland to Wellington storage facility 11 556k 5 22% Contact owns and operates Contac
Slide 4: Current market topics of interest
Current market topics of interest » Otahuhu land sale • Marketing campaign in progress with deadline for offers 18 November » Share buyback • Buyback commenced 22 October; $33m of shares purchased as at 13 November 2015 » Board of directors and AGM • AGM to be held 9 December • Sir Ralph Norris, Vic
Slide 5: Our Purpose – To help New Zealanders live more comfortably with energy
Our Purpose – To help New Zealanders live more comfortably with energy Finding, developing and generating Understanding, winning the energy the market requires and keeping customers Supporting our business UBS Conference Presentation 17 November 2015 Contact Energy Limited 5
Slide 6: Contact has been executing on a change programme over a number of years
Contact has been executing on a change programme over a number of years Finding, Supporting our business developing and Understanding, generating the winning and energy the market keeping customers Ownership and Health and safety requires capital structure » Cost of energy » SAP go-live April » Impr
Slide 7: New technologies and changes in customer behaviours require us to adapt
New technologies and changes in customer behaviours require us to adapt Increased focus on renewable generation Improving economics and competitiveness of new technology Customer expectations around choice, control, certainty and value are requiring deeper relationships Decreasing energy intensity i
Slide 8: Demand growth has returned over the past five quarters
Demand growth has returned over the past five quarters 18,000 16,000 Numbers represents Industrial demand growth over 14,000 the past 15 months NZ electricity demand (GWh) 12,000 Residential 10,000 Source: Transpower/ Commercial Contact 8,000 6,000 4,000 2,000 Agriculture/ 0 Forestry/ Fishing 1974 1
Slide 9: Regulation may struggle to keep pace with changing technology and customer preferences
Regulation may struggle to keep pace with changing technology and customer preferences Contact’s regulatory manifesto provides a framework for pursuing a competitive retail electricity market in New Zealand Five pillars of our regulatory manifesto Simplicity Transparency Access Competition Profitabi
Slide 10: Customer strategy will develop across three horizons
Customer strategy will develop across three horizons Technology and customer expectations require acceleration of our plans and transformation Core activities Insight Products Sales Service Cloud and Customer 3.0 Energy as a partner based Service (EaaS) Customer emerges transformation experience Ena
Slide 11: Partnerships and ventures will be key to developing non-core value propositions
Partnerships and ventures will be key to developing non- core value propositions Our system of record enables us to unlock growth opportunities from non-core products Now: » Core products Basic services & services » Strong cash generation Dual fuel Shift from ‘product-based’ to ‘service-based’ Home
Slide 12: A new set of measures will be used to track progress
A new set of measures will be used to track progress Current measure Future measure Data analytics Customer lifetime value and insight Netback % of HLV customers Designing Share of wallet Share of wallet tomorrow % of dual fuel customers Multiple products Customer Sales volume by experience - Sell N
Slide 13: Summary
Summary Contact’s investments have ensured a robust business with strong cash flow » >7,000 GWh low cost hydro and geothermal generation per annum » Thermal capacity provides risk management and margin above renewable generation » Contact’s consented thermal and geothermal sites and the unique Ahuro