Investor presentation 4 August 2015 Dennis Barnes, Chief Executive Officer Graham Cockroft, Chief Financial Officer
Presentation team Dennis Barnes Chief Executive Officer Dennis Barnes was appointed Chief Executive Officer in April 2011. Prior to joining Contact, he was General Manager Energy Risk Management at Origin, based in Sydney. Dennis…
1. New Zealand electricity market overview
New Zealand Electricity & Gas Industry Structure Geothermal G Large Business C E Gas U N S E T R Small Hydro Business O A Wholesale electricity Electricity retailers Transmission Distribution M T market* E I Coal R O…
Industry dominated by highly hedged, vertically integrated companies with the five largest companies now all publicly listed Retail electricity market share by customer number Generation market share by volume (GWh) Other Other 4%…
Key features of the New Zealand Electricity Market Hydro, geothermal and wind provide over 80% of generation High level of renewable generation New Zealand is highly pluvial with thermal generation balancing intermittency of renewable…
New Zealand has added subsidy free renewable generation, which in a period of flat demand, has displaced fossil fuels National electricity demand* New Zealand energy supply * (based on GWh of generation) 40 100% Coal 90% Gas…
2. Contact overview
Contact is one of New Zealands largest listed companies and a leading integrated energy company Upstream FuelFuel Generation Wholesale/Retail Retailer Generator Flexible and diverse fuel Flexible generation portfolio Leading…
Contacts operations National focus with 12 power stations totalling 2,359 MW capacity Otahuhu 400 MW 1,699 GWh Ohaaki 50 MW 269 GWh Te Rapa 44 MW Te Mihi Clyde Whirinaki Ahuroa 201 GWh 166 MW 432 MW 155 MW 17.0 PJ 218…
Business set up to deliver stable cash flows Focus on efficiency and lower capital expenditure expected to increase free cash flow Second largest gas and electricity Flexible portfolio allows management of retailer in New Zealand…
Earnings and cash flow Group EBITDAF and NPAT Group operating and investing cashflow 700 600 600 500 500 400 400 m m 300 300 200 200 100 100 0 0 FY10 FY11 FY12 FY13 FY14 1H14 1H15 FY10 FY11 FY12 FY13 FY14 1H14…
Contacts capital investments have positioned it well for the New Zealand market Upstream FuelFuel Generation Wholesale/Retail Retailer Generator Largely renewable fuel Flexible generation portfolio Significant retail customer…
A number of important events are now behind us Aug 2015 Tiwai contract extended June 2015 367m special dividend paid May 2015 Review of international growth options completed; 367m special dividend announced Jan 2015 New, flexible…
3. Business performance update
1H15 free cash flow up 51% reflecting strong cash generating business Statutory profit down 54% to 51m primarily due to an unfavourable movement in the fair value of financial instruments and transitional costs from the Retail…
1H15 business performance Retail volumes remained stable; increased share of growing small business market offset residential customer losses National demand increased 2.9% with increased irrigation load and cooler temperatures…
Contact has completed a review and has announced a revised distribution policy 100% UEAT Distribution policy revised to reflect the expectation that Contact will have long term limited capital requirements in the near term. average…
Updates Results for the year ended 30 June 2014
Contact to supply a portion of Tiwais electricity On 3 August 2015 Meridian Energy announced that it had extended the existing Electricity Agreement with New Zealand Aluminium Smelters Ltd (NZAS) Contact also announced it had signed a…
FY15 earnings guidance Contact will report its results for the year ended 30 June 2015 on 17th August 2015 EBITDAF1 for FY15 is expected to be approximately 525m Underlying Earnings after Tax1 expected to be approximately 161m…
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