7 November 2013 Annual Shareholders’...
Transcript of 7 November 2013 Annual Shareholders’...
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7 November 2013
Annual Shareholders’ Meeting
Smart thinking.
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Your Board of Directors
ANNUAL SHAREHOLDERS’ MEETING
Joan Withers Trevor Janes Mike Allen Prue Flacks
James Miller Tania Simpson Keith Smith
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Agenda
ANNUAL SHAREHOLDERS’ MEETING
Chair’s Address
Chief Executive’s Review
Ordinary Business and Resolutions
Other Business
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Your Company
ANNUAL SHAREHOLDERS’ MEETING
> One of New Zealand’s largest electricity
companies
> Supply nearly 1-in-5 New Zealand homes and
businesses
> More than 90% of electricity production from
renewable sources
> One of the world’s largest geothermal power
station owners
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Highlights of FY2013
ANNUAL SHAREHOLDERS’ MEETING
> Transition to a listed company
> Financial results above IPO forecast
> Consumer brands innovation
> Direct control of international geothermal
> Commissioning of Ngatamariki
geothermal power station
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Dividend
ANNUAL SHAREHOLDERS’ MEETING
> Fully imputed final dividend of
7.2 cents per share
> Continuous review of capital
management
> Expect an interim dividend of
5.2 cents per share in March
0
50
100
150
200
250
2010 2011 2012 2013 2014F$
m
Financial Year
Declared dividends
Final
Interim
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Share price performance
ANNUAL SHAREHOLDERS’ MEETING
2.00
2.50
3.00
3.50
4.00
4.50
5.00
2.00
2.10
2.20
2.30
2.40
2.50
2.60
2.70
May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13
Yie
ld (
%)
sh
are
pri
ce
($
)
Mighty River Power share price 10 Year Government Bond Yield
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Looking ahead
ANNUAL SHAREHOLDERS’ MEETING
> Delivering shareholder value
> Highly-competitive market
> Regulatory predictability sought
> International geothermal growth
> Continue to review capital management
> Commence selection programme for
successor to our Chief Executive
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Chief Executive’s review
ANNUAL SHAREHOLDERS’ MEETING
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Your Management Team
ANNUAL SHAREHOLDERS’ MEETING
Doug Heffernan William Meek James Munro Matthew Olde
Marlene Strawson Mark Trigg Fraser Whineray
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FY2013 highlights
CHIEF EXECUTIVE’S REVIEW
> FY2013 financial results outperform IPO
forecasts
> Financial results held up despite
Waikato drought
> Consumer brands innovation and
growth
> Ngatamariki Geothermal Power Station
online
> Direct control of investments in US and
Chile geothermal business
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Health and Safety
CHIEF EXECUTIVE’S REVIEW
> ‘Zero harm’ aspiration
> Improving Total
Recordable Injury
Frequency Rate
performance
> Focus with contractors on
early identification of risks
0.0
0.5
1.0
1.5
2.0
2.5
FY2009 FY2010 FY2011 FY2012 FY2013
Total Recordable Injury Frequency Rate
per 100,000 hours
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People and partnerships
CHIEF EXECUTIVE’S REVIEW
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People and partnerships
CHIEF EXECUTIVE’S REVIEW
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People and partnerships
CHIEF EXECUTIVE’S REVIEW
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Financial highlights
CHIEF EXECUTIVE’S REVIEW
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FY2013 outperformed IPO forecasts
CHIEF EXECUTIVE’S REVIEW
0
50
100
150
200
250
300
350
400
450
EBITDAF Net Profit UnderlyingEarnings
Free CashFlow
CapitalExpenditure
Total DeclaredDividend
$m
IPO Forecasts
FY2013
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Capital expenditure
CHIEF EXECUTIVE’S REVIEW
> Completed $1.4 billion geothermal development programme
> Continue to invest $53-$103 million growing business and $72 million into our
existing assets in FY2014
0
50
100
150
200
250
300
350
400
450
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014F
$m
Growth
Reinvestment
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Updated FY2014 Guidance
CHIEF EXECUTIVE’S REVIEW
Year ending 30 June 2014
$m New forecast IPO forecast $m change
EBITDAF 498 498 No change
Net Profit for the year > 195m 160 > +35
Underlying Earnings 175 -185 138 +37 to +47
Adjusted Net Profit 175 -185 170 +5 to +15
Operating Cash Flow 300 - 320 328 -8 to -28
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Generation
CHIEF EXECUTIVE’S REVIEW
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4F
GW
h
Financial Year
Geothermal Hydro Thermal
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CHIEF EXECUTIVE’S REVIEW
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Consumer brands
CHIEF EXECUTIVE'S REVIEW
> Sell to 1-in-5
New Zealand
homes and
businesses
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Our market share
CHIEF EXECUTIVE’S REVIEW
-
50
100
150
200
250
300
350
400
450
0%
5%
10%
15%
20%
25%
2008 2009 2010 2011 2012 2013
(‘000)
Financial Year
Customer numbers
& share of sales volume
Customers (RHS)
Share of Sales Volumesexcl. Tiwai (LHS)
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CHIEF EXECUTIVE'S REVIEW
Good Energy Monitor
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GLO-BUG
CHIEF EXECUTIVE’S REVIEW
0.0
0.5
1.0
1.5
2.0
2.5
FY11 FY12 FY13
Dis
co
nn
ec
tio
n r
ate
(%
) p
.a
Mercury residential
disconnection rate
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Demand and supply
CHIEF EXECUTIVE’S REVIEW
> Excluding industrial, demand
flat over last six years
> Meridian Tiwai negotiations
more positive than expected
> Renewables continue to
displace thermal
15,000
30,000
45,000
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
GW
h
National demand
National Consumption
National Consumption excluding allDirect Connections
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A well-functioning market
CHIEF EXECUTIVE'S REVIEW
> Current market structure has led to
highly-competitive markets which
has resulted in world-best outcomes
> Competitive retail pricing
> Increased renewable
investment
> Improved security of supply
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Outlook
CHIEF EXECUTIVE'S REVIEW
> Flexible generation portfolio compensates for low hydro conditions in Q1
FY2014
> Remain comfortable in FY2014 IPO forecasts
> 27% growth in EBITDAF and 8% growth in total dividends
> Profit figures higher by some $35 million (non-cash accounting changes)
> For FY2015 expect to return to normal hydro year and full-year impact from
Ngatamariki
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Ordinary business and
resolutions
ANNUAL SHAREHOLDERS’ MEETING
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Resolution 1
ORDINARY BUSINESS AND RESOLUTIONS
> Re-election of Joan Withers
Postal and Proxy Voting
For 947,660,200
Against 2,552,525
Discretionary 1,070,850
Abstain 389,844
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Resolution 2
ORDINARY BUSINESS AND RESOLUTIONS
> Re-election of Keith Smith
Postal and Proxy Voting
For 943,839,602
Against 6,215,926
Discretionary 1,145,820
Abstain 472,071
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Resolution 3
ORDINARY BUSINESS AND RESOLUTIONS
> Re-election of Tania Simpson
Postal and Proxy Voting
For 947,195,520
Against 2,721,048
Discretionary 1,162,220
Abstain 594,631
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Resolution 4
ORDINARY BUSINESS AND RESOLUTIONS
> Directors’ fees to increase by $85,000 for a new director
Postal and Proxy Voting
For 943,655,487
Against 6,529,827
Discretionary 1,072,605
Abstain 415,500
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Voting
ANNUAL SHAREHOLDERS’ MEETING
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Questions
ANNUAL SHAREHOLDERS’ MEETING
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Please join us for afternoon tea
at the conclusion of the meeting.
ANNUAL SHAREHOLDERS’ MEETING