THE LONG RUN MERIDIAN ENERGY LIMITED 2018 ANNUAL SHAREHOLDER MEETING
ORDER OF BUSINESS � C H A I R ’ S A D D R E S S � C H I E F EXE C U T I V E ’ S R E V I E W � Q U E S T ION S � R E S O L U T I ON S Meridian Energy Limited 2018 Annual Shareholder Meeting 2
CHAIR’S ADDRESS Meridian Energy Limited 2018 Annual Shareholder Meeting 3
COALITION GOVERNMENT � Government is looking to ensure New NZ 2016 SECTOR EMISSIONS 3% Zealand delivers a low emissions 5% 6% economy Electricity 17% Road transport � Electrification offers the opportunity to Stationary energy* remove up to 32 million tonnes of Agricultural carbon Industrial processes 20% 49% Waste 32 million *manufacturing (including milk tonnes processing), construction and commercial sectors and domestic heating Source: Ministry for the Environment Meridian Energy Limited 2018 Annual Shareholder Meeting 4
ELECTRICITY PRICE REVIEW � New Zealand electricity market is one of the best performing in the world � Reinforced by the World Energy Council and New Zealand Productivity Commission Source: World Energy Council Meridian Energy Limited 2018 Annual Shareholder Meeting 5
AUSTRALIA � State and Federal Government reviews RESIDENTIAL PRICE AUSTRALIA NEW COMPARISON ZEALAND of electricity price transparency and Average 2018 prices, 40.76 29.03 affordability Nominal, NZD c/kWh NZD c/kWh Including GST � Australia is struggling to transition to a 2008-2018 5.1% per 1.4% per decarbonised energy system due to Average annual increase, annum annum political instability Real, Including GST Source: ACCC, Ministry of Business, Innovation and Employment, Meridian Meridian Energy Limited 2018 Annual Shareholder Meeting 6
SHAREHOLDER HIGHLIGHTS � FY18 EBITDAF 1 1.4% higher than FY17 TOTAL SHAREHOLDER RETURN % 2014 2015 2016 2017 2018 33% 35% 31% � Dividends paid during FY18 1.9% higher 30% 25% than FY17 19% 17% 20% 14% 15% � Total shareholder return in FY18 of 14% 10% 5% 0% � Capital management programme 2014 2015 2016 2017 2018 Financial Year ended 30 June extended to 2022 Source: Meridian 1 Earnings before interest, tax, depreciation, amortisation and changes in fair value of hedges and other significant items Meridian Energy Limited 2018 Annual Shareholder Meeting 7
OUR PEOPLE � Neal Barclay, new Chief Executive since 1 January 2018 � Resignation of Stephen Reindler, Director since 2008 � Institute of Directors Future Director Meridian Energy Limited 2018 Annual Shareholder Meeting 8
CHIEF EXECUTIVE’S REVIEW Meridian Energy Limited 2018 Annual Shareholder Meeting 9
SUSTAINABILITY LEADERSHIP � Renewable generation supports our authentic sustainability leadership � 90% electric Meridian passenger fleet by 2020 � Seeking hydro insurance products from cleaner forms of fuel � Net carbon zero across our operations � Standout green credentials in Australia Meridian Energy Limited 2018 Annual Shareholder Meeting 10
OUR PEOPLE � Unrelenting commitment to the safety and wellbeing of our people � Committed to achieving gender pay parity, currently 98% � Rainbow Tick accreditation supports our diversity and inclusion � Voluntary increase in paid parental leave to 22 weeks Meridian Energy Limited 2018 Annual Shareholder Meeting 11
FINANCIAL PERFORMANCE � Two significant dry periods during FY18 MERIDIAN'S WAITAKI STORAGE GWh FY2018 Average 2,500 � Lowest generation volumes since 2013 2,000 � Improved electricity hedge markets 1,500 � Delivering on our strategy of growing in 1,000 retail and overseas 500 01-Jul 01-Sep 01-Nov 01-Jan 01-Mar 01-May Source: Meridian Meridian Energy Limited 2018 Annual Shareholder Meeting 12
OUR CUSTOMERS � Customer connections grew by 14,000 NEW ZEALAND CUSTOMER NUMBERS ICP (000) during FY18 300 � Disconnection rate has reduced by 80% 290 in the last five years 280 291 270 � Meridian is replacing prompt payment 277 277 276 275 260 discounts with a guaranteed discount not tied to a due date 250 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Source: Meridian � Transitioning Meridian customers onto our Flux Federation software platform Meridian Energy Limited 2018 Annual Shareholder Meeting 13
NEW ZEALAND ALUMINUM SMELTERS � Meridian is supporting NZAS with an additional 50MW energy solution � A good sign that NZAS are investing in increased production at Tiwai Point Meridian Energy Limited 2018 Annual Shareholder Meeting 14
RETAIL ELECTRICITY PRICES REAL RESIDENTIAL ELECTRICITY COST � Mostly supportive of the Electricity Price c/KWh Energy and other component Lines component Review Panel’s findings 19 +4% 17 since � 55% of New Zealanders considered 2009 15 switching electricity retailer in the last +28% 13 year since 2009 11 9 � Energy hardship is a complex social 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Financial Year ended 30 June issue Source: Ministry of Business, Innovation and Employment Meridian Energy Limited 2018 Annual Shareholder Meeting 15
DEMAND OUTLOOK FOR THE SECTOR IN NZ � Medium term demand growth looks to DEMAND FORECASTS TWh NZ Historical Demand be similar to current modest growth, 90 Transpower however: 80 MBIE - High MBIE - Low 70 Productivity Comm. - High � Current thermal generation is aging Productivity Comm. - Low 60 Meridian - High 50 � Policy momentum for Net Zero Carbon Meridian - Low 40 New Zealand by 2050 30 1998 2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050 � These factors are reflected in higher Source: Meridian longer term demand growth forecasts � A more balanced RMA framework is needed Meridian Energy Limited 2018 Annual Shareholder Meeting 16
OFFSHORE � Volatile Australian electricity market has seen customer growth stop � New hydro assets and renewable offtake agreements acquired � Retail gas launched in Victoria � Customer growth of 38% in the Powershop UK customers since July 2018 Meridian’s new Australian hydro assets, from top, Hume, Burrinjuck, Keepit Meridian Energy Limited 2018 Annual Shareholder Meeting 17
CONCLUDING COMMENTS � Current storage is slightly below MERIDIAN'S WAITAKI STORAGE GWh 2,500 average 2,000 � Stronger national focus on climate 1,500 action will benefit the electricity sector 1,000 and Meridian 500 � Fundamentals of the business remain 0 strong 1-Jan 1-Mar 1-May 1-Jul 1-Sep 1-Nov Average 1979- 2015 2016 2017 2018 Source: Meridian Meridian Energy Limited 2018 Annual Shareholder Meeting 18
QUESTIONS Meridian Energy Limited 2018 Annual Shareholder Meeting 19
RESOLUTIONS AND VOTING Meridian Energy Limited 2018 Annual Shareholder Meeting 20
VOTE TOTALS RE-ELECTION OF RE-ELECTION OF RE-ELECTION OF MARK CAIRNS ANAKE GOODALL PETER WILSON POSTAL AND ONLINE VOTES ALREADY CAST FOR 584,210,583 586,381,265 583,768,375 AGAINST 2,878,427 671,008 3,263,480 ABSTAIN 1,806,196 1,808,183 1,837,801 VOTES APPOINTED TO PROXIES NOT YET CAST 1 1,312,450,737 1,312,485,487 1,312,476,287 TOTAL 1,901,345,943 1,901,345,943 1,901,345,943 1 Votes held by the Chair, Directors and other proxies Meridian Energy Limited 2018 Annual Shareholder Meeting 21
RESOLUTION 1 Re-election of Mark Cairns � That Mark Cairns, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company Meridian Energy Limited 2018 Annual Shareholder Meeting 22
RESOLUTION 2 Re-election of Anake Goodall � That Anake Goodall, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company Meridian Energy Limited 2018 Annual Shareholder Meeting 23
RESOLUTION 3 Re-election of Peter Wilson � That Peter Wilson, who retires by rotation and is eligible for re-election, be re-elected as a Director of the Company Meridian Energy Limited 2018 Annual Shareholder Meeting 24
CLOSING Meridian Energy Limited 2018 Annual Shareholder Meeting Meridian Energy Limited 2018 Annual Shareholder Meeting 25 25
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