Meridian Energy Limited Annual Shareholder Meeting

PG 1

Meridian Energy Limited Annual Shareholder Meeting
26 October 2017
Please find attached the following announcements that will be delivered at Meridian’s Annual Shareholder
Meeting today at 10.00am in Wellington:
a) Chair’s address
b) Chief Executive’s address
c) The presentation to shareholders.

ENDS

Mark Binns
Chief Executive
Meridian Energy Limited


For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Polly Atkins
External Communications Specialist
021 530 768

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2017 ANNUAL SHAREHOLDER MEETING - CHAIR’S ADDRESS

SLIDE THREE: Chairman’s Address
I will now move to my Chairman’s address.

An important part of a Board’s role, in conjunction with Management, is to identify
trends that are likely to reshape, or significantly alter, the Company’s position to the
benefit or detriment of its shareholders.

The electricity industry of course faces a number of such trends, whether it is the
continuing reduction of the costs of renewable technologies, the rise of batteries as a
means of solving some of the problems of renewable energy’s intermittency, or the
growth of electric vehicles.

Many of the world’s major economies are managing a transition from fossil fuel
generation to renewable sources, which is leading to tectonic shifts in market
dynamics that will play out in New Zealand over time.

In addition, investors are becoming increasingly engaged, and indeed activist, about
sustainability issues, demanding improved performance and reporting in respect of
environmental, social and governance issues.

SLIDE FOUR: Value through Sustainability
Meridian was established as a company with a portfolio of renewable generation
assets, so it is unsurprising that sustainability has always been at the core of our
ethos.

There is no doubt though, that there is an accelerating recognition that sustainable
environmental practises and relationships with stakeholders, are imperative for a
company to remain relevant over the long term and represent a good investment.

We are also seeing large institutional shareholders being prepared to publicly take
action when the companies they invest in are perceived not to be up to the required

sustainable mark.

When members of the management team are presenting at investor road shows,
both in New Zealand and overseas, there are more and more questions around
sustainability matters and we expect this trend will continue.

Accordingly the timing has been opportune for us to review and refresh Meridian’s
sustainability framework.

We have taken the lead from the United Nations Sustainable Development Goals to
which the New Zealand Government, our majority shareholder, has committed, along
with one hundred and ninety-two other countries.

The UN has set seventeen goals that can transform our world and we believe we
can contribute in a significant way to a number of these, particularly in the areas of
affordable, clean energy and in the reduction of New Zealand’s carbon footprint.

Our integrated annual report this year is designed to explain the contribution we are
making to these goals and I hope you will take the time to read it, if you have not
already done so.

It clearly demonstrates that your Company is operating at the leading edge of
sustainability in everything that it does.

SLIDE FIVE: Shareholder highlights (1)
Moving from sustainability to our financial performance, in August, Meridian
announced another strong result for twenty seventeen, despite encountering
significant hydrology challenges in the second half of the year.

This is the fifth consecutive year of growth in earnings before interest, tax,
depreciation, amortisation, changes in fair value of hedges and other significant
items.

And dividend payments to shareholders have increased every year since listing.

SLIDE SIX: Shareholder highlights (2)
These distributions have been made possible by the record levels of operating cash
flows the Company has generated as shown in the graph on this slide.

This in turn drives the Company’s total shareholder return, being the change in the
share price plus dividends paid.

Since listing, Meridian’s total shareholder return is one hundred and thirty two
percent, including a further seventeen percent delivered in the last financial year.

This achievement is particularly pleasing when compared with the increase in the
NZX50 Gross Index of ten percent and an increase in the MSCI, an index for all of
the world’s share markets, which increased by fifteen percent.

Accordingly Meridian’s shareholders have done well against both the national and
international benchmarks.

While it would be nice to take all of the credit for this, the strong share price
performance is partially attributable to the continued low interest rate environment
that prevails around the world, given that Meridian is primarily a yield stock.

The cash dividend yield of six point four percent, based on the share price as at 30
June, remains highly appealing to investors when compared to the interest rates
available in the United Kingdom, Europe, the United States, Australia, and, of
course, here in New Zealand.

The fact that, as a country, we have a relatively stable economy, political system,
market and industry structure, adds to the attractiveness of quality stocks in New
Zealand.

However just how long the current low interest rate environment lasts is a matter of
constant conjecture by economic experts but at some point, the cycle will turn and
there may be some impact on global stock markets as investors once again focus on
growth.

SLIDE SEVEN: New Zealand demand
However growth is not exactly the term that one would apply to New Zealand’s
energy demand.

As can be seen on the graph, there has been no consistent pattern in demand since
twenty eleven and indeed, in the year to thirty June, energy consumption was down
zero point six percent on the prior year, largely due to low irrigation loads on the east
coast of the South Island.
However trying to back out climatic conditions and determine any long term trend is
difficult, given the number of variables at play.

On the one hand strong economic growth and immigration, both suggest that
underlying conditions are positive but conversely this is being offset, at least in part,
by industrial and manufacturing closures, warmer than average temperatures and
improving technology and efficiency gains of appliances.

For instance, the television you buy today is, on average, sixty seven percent more
efficient in its power consumption compared to fifteen years ago.

Similarly refrigerators are now twenty five percent more efficient.

The big energy efficiency mover for the future will be LED lighting, which has the
ability to deliver eighty five percent efficiency gains compared with traditional lighting.

The net result of these technology improvements is that the average Kiwi household
is using six percent less electricity than it did in two thousand and two.

Taking all of these factors into account, we still believe economic growth, electric
vehicles and more intensive use of appliances will drive overall underlying demand

up by between half and one percent (or between two hundred and four hundred
Giga Watt hours) per annum into the future.

So we remain of the view that the right time for additional generation capacity will
probably be in a window between twenty twenty-one and twenty twenty-three, but
clearly the assumptions on which this projection is made will need to be constantly
reviewed.

SLIDE EIGHT: Offshore opportunities
Recognising that the New Zealand market has limited growth options and market
participants are fighting over largely static customer numbers, maintaining and
growing profitability in our main market is dependent on providing customers with
relevant products at good prices and top service levels, while containing costs.

We have managed to achieve this in recent years, but it is an ongoing challenge and
we remain focussed on looking for new avenues for potential growth domestically,
including such things as the demand expected to be created for charging electric
vehicles and batteries.

Offshore Meridian has been involved in Australia for more than a decade and this
market provides us with opportunities, because it is going through a period of intense
disruption.

However, this disruption brings with it risks, particularly as a result of there being no
bi-partisan political consensus to creating a cohesive energy policy in Australia.

The market currently faces an environment of volatile wholesale and retail prices and
the potential threat of re-regulation of retail prices in some states

Our Powershop retail business now has one hundred thousand Australian customers
and we are investigating the viability of supporting further retail growth, through
entering into Power Purchase Agreements with renewable developers on the eastern
seaboard.

Indicative pricing to date has been very encouraging, both in solar and wind, and we
are seeing prices significantly cheaper than where they were two years ago; indeed
in the case of solar, they have halved.

Our other avenue for international growth is to monetise our Flux Federation,
formerly Powershop, platform in other parts of the world.

In twenty fifteen the Company agreed to franchise the platform to nPower, one of the
largest energy retailers in the United Kingdom.

nPower’s satisfaction with the product has led to Meridian engaging with nPower’s
German parent, Innogy, with a view to franchising the platform in other European
countries.

It will take some time for us to evaluate this opportunity in terms of resource
requirements and ensure that it can be undertaken on acceptable commercial terms.

Nevertheless, we aim to make an ‘in-principle’ decision by early next year, but a final
commitment by both parties, assuming there is agreement, could take until the
middle of twenty eighteen.

In short Meridian will continue to pursue earnings growth outside of New Zealand but
in a highly disciplined manner.

SLIDE NINE: Transmission Pricing
The one significant disappointment for the year was the fact that the Transmission
Pricing Review was not brought to a conclusion by the Electricity Authority.

However, we remain confident that the case for change is compelling and that the
Authority will re-engage on the issue over the next year and, when it does, it will do
so with our full support.

SLIDE TEN: The Year Ahead
Looking to the year ahead, the most notable matter we have immediately in front of
us is the transition to a new Chief Executive.

Sadly, although all good things have to come to an end, Mark Binns will cease his
employment with Meridian at the end of the calendar year, but the transition to Chief
Executive – Designate, Neal Barclay, is already well underway.

The Board is delighted with how Neal’s appointment has been received, both
internally and externally.

Mark joined Meridian for the challenge of preparing us for what was New Zealand’s
largest Initial Public Offering (IPO).

The process was an outstanding success and since listing, shareholders have
enjoyed a total return, including share price appreciation and dividends paid, of one
hundred and thirty two percent during the period of Mark’s stewardship.

On behalf of the Board, Management and all staff, I want to publicly thank Mark for
the outstanding job he has done in leading Meridian through this crucial period of
transformation.

Neal’s credentials for the role are exceptionally strong having already served nine
years with the Company, during which time he has held the roles of Chief Financial
Officer, General Manager (Markets and Production) and more lately, General
Manager (Retail).

Accordingly the Board is confident that Neal’s leadership skills and deep industry
and Company knowledge will ensure that Meridian does not miss a beat during the
transition period.

From an operational point of view, the Company got away to a slow start due to
entering the year with depleted water reserves following the lowest ever hydro
inflows between February and June; however, perversely there has been above
average rainfall since July, not only in our catchments, but across the total country,
which has seen wholesale and forward prices fall significantly.

Consequently the start of the year has not been optimal, but weather patterns can,
and do, change quickly.

In addition we have a great Trading team, ably led by Mike Roan, to manage the
vagaries of the weather, demand and water resources, just as they did in the first
half of this calendar year.

In conclusion, I would like to thank the members of Meridian’s Board, Management,
employees, customers, Iwi and in particular Ngāi Tahu, business partners and our
communities for their continued support.

And of course, sincere thanks to you our shareholders for continuing to invest in
Meridian.

I now invite Mark Binns to address you for the last time.

ENDS

2017 ANNUAL SHAREHOLDER MEETING – CHIEF EXECUTIVE’S ADDRESS

SLIDE ELEVEN: Chief Executive Review
Thank you Chris
Kia ora koutou
Ladies and Gentlemen
This is the last time I will address shareholders but it will not be the last time I attend
this meeting. Next time I will be sitting with you, with the advantage, of course, that I
know all the awkward questions to ask!
So I will spend most of my time talking about some of the things I will want to hear
when I am on the other side of the podium next year.
First, let me introduce you to Meridian’s executive team – stand up team [note those
present who will be in the front row to your left].
Chris has commented on the year already – I will be brief.
SLIDE TWELVE: Our People
How did we perform in terms of looking after our people? Our safety numbers were
good. We had no serious harm injuries and our TRIFR was half the previous year’s
number. Numbers cannot measure attitude and that has to be the thing that a CE
has to worry about – are we doing safety in a ‘paint by numbers’ way or do we have
a deep underlying concern for safety for our people and others on our sites and
offices?
I would not be so arrogant to say we are at the top of the league – but I believe
safety is a deeply embedded part of our culture.
Employee engagement remained strong this year. Yes – we have the best, lowest
cost generation assets in NZ – but that isn’t enough to sustain performance. I’m
proud of our engaged, focussed and talented staff, which is essential for any
company to perform well over the long term.
You will note that in New Zealand we are on the cusp of the Top 25% of the ‘IBM
Best Places to Work’ and we would like to exceed that benchmark.

SLIDE THIRTEEN: 2017 Financial Results
We can be proud of the numbers for the 2017 financial year, given we were tested
with the lowest inflows on record in the February to June period. At the half year, we
were $20m ahead at the EBITDAF level against the previous year – unfortunately
the dry that followed saw us give $17m of that back, as we took hedge cover for our
position. This is the second bad hydrology sequence in the six years I have been
with the Company and I can assure you we are getting better and better at handling
them.
Our EBITDAF saw a slight improvement on last year – the fifth year in a row of
improvement, which enabled us to increase our total dividend to shareholders by
3%.
But that is all consigned to history – sitting where you are, you are more interested in
the future. So here’s some thoughts on what I will want to be hearing next year.
SLIDE FOURTEEN: A Change in Government
Starting at the macro level, we now have a new Government with different priorities
and approach to the previous one. I have read the Coalition Agreement (didn’t take
long) and there are aspects that will have implications for the electricity sector.
In a positive sense, the commitment to take a leadership position in the conversion
of the Government car fleet to electric by 2025/26, where practicable, has to be a
positive. We are well on the way to achieving our own goal of having 50% of our
passenger car fleet electric by June 2018.
The coalition has committed to an independent Climate Change Commission to
advise on the setting of carbon reduction targets and to hold the Government
accountable for delivery. At the time, the Commissioner for the Environment
proposed this in July, Meridian publicly came out in support of this initiative.
Meridian believes that Climate Change is real and tangible action over the next year
should be welcomed by shareholders, given Meridian’s commitment to NZ growing
renewables.
On the water front, we are supportive of the emphasis on water quality and there
would be few New Zealanders in disagreement with the intent. However the devil is

always in the detail – so understanding the framework within which this will be
considered, is important.
As anticipated, there will not be any resource rentals for water in this parliamentary
term. I take from this wording that there is an intent to consider the matter and
potentially go into the next election with some form of proposal.
Meridian has always said that fresh water is an issue that needs to be resolved in a
holistic way: it cannot be done piecemeal and there are a lot of stakeholders
involved, including iwi “rights and interests” – which remain outstanding.
This is a complex issue and this time next year we will hopefully know how the
Government intends to approach the issue, given its material importance to the New
Zealand economy. Meridian has always been supportive of a holistic, equitable
solution for New Zealanders.
SLIDE FIFTEEN: New Zealand Residential Electricity Pricing
I would also hope that the Government will have completed its full scale review into
retail power pricing. Retail prices have two large components – the price of
electricity itself – which we make – and the grid and network charges for transporting
it – which we merely pass on.
As you can see from the graph, electricity itself has gone up at a compound 1.0%
p.a. over the last 4 years, about bang on inflation. Levels of competition have kept
price increases low and are likely to continue doing so. If the Government wanted to
look at some sacred cows for efficiency gains, it may pay them to look at the number
of network companies in New Zealand – 29 compared to 5 in the State of Victoria,
with a comparable population to New Zealand. The level of inefficiency that such a
number drives into electricity costs is significant.
They also might like to look at Low Fixed Charges for Low Users – a well-intentioned
policy that was meant to help lower income households on the premise that these
households were low users – but when you see a number of people here at
Meridian, for example, who don’t fall into low income households, qualify for this
break – you know it is misdirected.

So there is a lot of detail in terms of Coalition proposals that Meridian (and others)
are keen to engage on with the Government, but overall we are positive on what has
been flagged to date.
SLIDE SIXTEEN: Tiwai Point Aluminium Smelter
Narrowing it down a bit from the macro. In the near future it would be nice to hear
that our friends at Rio Tinto have finally sold their interest in the Tiwai Point smelter.
It has been Rio Tinto’s stated intention to sell all its Australasian aluminium smelter
assets for five years and an improving aluminium market has not reduced their
ardour.
There have been media reports of discussions with interested buyers but nothing
has yet come to fruition. In my view, a new owner would be good news, as arguably
Meridian – indeed the whole sector –has suffered from a share price discount for
Tiwai uncertainty and a new owner is highly unlikely to buy and then close it down
with the associated remediation costs.
On our modelling, the Tiwai smelter is currently making very good cash profits, with
aluminium prices being up nearly 19% since the beginning of the year. I will be
surprised if the smelter is not here for the full duration of its contract through to 2030
and potentially longer.
SLIDE SEVENTEEN: Commercial Solar
For customers, I’ll want to hear that we have stayed focussed on areas where we
can truly help customers.
As an industry, there is great intent, lots of talk of new technology and (in my view)
often little value for customers. I would want to see Meridian remaining disciplined in
the value it brings to customers. Solar is one such area where economics have
improved with costs plummeting and we have seen real opportunities open up for
customers and ourselves.
Over the last year, we have done a lot of work looking at a number of commercial
and industrial users, where the 7-day usage and network location gives us
confidence we can offer certain customer groups solar systems (installed and owned
by Meridian) that are right for customers economically and meet their environmental
aspirations – that is a truly sustainable partnership.

We have just signed a Memorandum of Understanding with Kiwi Property to install
solar systems on four of their shopping centres over the next few years that Meridian
will own and I will be looking forward to hearing that this is progressing well. The
offer of a complete solution is something that is resonating with a significant number
of commercial customers and we are currently working with a number of well-known
companies on solutions for their power needs.
SLIDE EIGHTEEN: Powershop Offshore
Expanding the horizons a little, I will look forward to seeing Meridian’s growth
initiatives in Australia, the UK and Europe developing. As Chris noted, total demand
growth in New Zealand has been low for some time and demand growth forecasts
are not high. Time and patience is required when developing new markets but we
are entering an exciting phase in Australia.
The Australian market is not for the faint hearted with energy policy – or the lack
thereof – never being far from the front page of the print media. But Australia
provides real opportunities for a company such as ours with smart people on the
ground and balance sheet credibility. We have just signed off on the parameters for
the final negotiation of Power Purchase Agreements with a number of Australian
developers, potentially underwriting a number of solar and wind projects in Victoria
and New South Wales.
These arrangements should be completed within the coming months and will provide
the generation to allow Powershop to grow its retail customer base in Australia.
Hopefully this commitment to renewables will help Powershop retain the mantle as
the Greenest Retailer in Australia, which it has held for the last two years.
In the UK I will be looking for an update on the success of nPower with the
Powershop platform and brand, which we have licenced to them. We will add gas
functionality in January and I will want to see meaningful growth in calendar year
2018. It will also be good to hear that we have been able to agree upon providing
the Powershop platform for another of Innogy (npower’s parent company) markets in
Europe.

SLIDE NINETEEN: September Quarter
But what about the 2018 numbers? However as you know we do not provide
forecasts. The dry period experienced in the first half of the financial year has had
implications for the start of the New Year as the Swaption we have with Genesis
remained active until mid-August. This has been countered, to some extent, by
better wind generation in Australia and good customer load numbers.
So it would be good to see another increase in profits for this new financial year, but
it is still too early to form a view. As you can see from the graph, hydrology has now
returned to more normal levels, which is great news.
SLIDE TWENTY: Final Thoughts
So – some final thoughts. Being given the opportunity to run Meridian has, without
doubt, been the pinnacle of my career. Leading the IPO was a fantastic experience,
but the real thrill has been in seeing the process being so successful for all
concerned - the Crown, staff, shareholders and all New Zealanders.
I often note that the taxpayer owns 51% of Meridian and virtually everyone who has
been in KiwiSaver since 2013 will have been an indirect shareholder and the
beneficiary of the 132% total cumulative shareholder return that has been delivered
over this time.
To the Board, thank you for the opportunity you gave me. I trust you don’t regret it.
And particularly to Chris Moller for your deft guidance, support and willingness to
listen.
And the Executive Team – a massive thank you. Neal, Paul, Guy, Jason, Sandra,
Jacqui and Ed – you have made it a dream run – we’re a great team. As they say,
smart leaders should be looking to employ smarter people than themselves – they
make you look good!
Finally, it has been a buzz to see an internal appointment with Neal Barclay as my
successor. Neal has earned his stripes, having been with the company longer than
me and he has done all the hard jobs. He is going to do a great job for you!

While I believe Meridian is a better company today than it was when I arrived, I’m
very confident that Neal and the team have the ability to improve on this again. And
I wish them the best of luck – you always need a little!
NGA MIHI.
ENDS

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MERIDIAN ENERGY LIMITED 2017 ANNUAL SHAREHOLDER MEETING
IT’S OUR FUTURE
.

•
 
Chair’s address
•
 
Chief Executive’s review
•
 
Questions
•
 
Resolutions
Order of business
.
Image: Lake Pukaki headwaters, Canterbury, New Zealand
2
Meridian Energy Limited 2017 Annual Shareholder Meeting
2

3
Chair’s address
.

Meridian Energy Limited 2017 Annual Shareholder Meeting

Value through sustainability
.
4
Image: Waterfall, Lake Manapōuri, Southland, New Zealand
4
Meridian Energy Limited 2017 Annual Shareholder Meeting

Meridian Energy Limited 2017 Annual Shareholder Meeting
5
Shareholder highlights
.
Five successive years of earnings growth

$477M
$584M
$585M
$618M
$650M
$653M
2012 2013 2014 2015 2016 2017
Financial Year ended 30 June
EBITDAF
1
13.01
18.23
18.38
18.91
2014 2015 2016 2017
TOTAL CPS
Financial Year ended 30 June
DIVIDENDS DECLARED
Higher dividends every year since listing

1. Earnings before interest, tax, depreciation, amortisation, changes in fair value of hedges and other significant items
Source: Meridian
Source: Meridian

6
Shareholder highlights
.
Record level of operating cash flow

$416M
$433M
$440M
$452M
$470M
2013 2014 2015 2016 2017
Financial Year ended 30 June
OPERATING CASH FLOW
19%
57%
102%
132%
2014 2015 2016 2017
Financial Year ended 30 June
CUMULATIVE TSR
1
SINCE LISTING

132% cumulative shareholder return since listing

1. Total shareholder return; share price change from Meridian’s $1.50 listing price plus cash dividends paid
Source: Meridian
Source: Meridian
Meridian Energy Limited 2017 Annual Shareholder Meeting

7
Little demand growth in the last 7 years •
 
+ Economic growth
•
 
+ Positive net migration
•
 
- Industrial and manufacturing closure
•
 
- Warmer than average temperatures
•
 
- Growing impact of technology and
efficiency gains
New Zealand demand
.
+1.1%
-0.1%
-1.7%
-0.9%
+2.6%
+0.3%
-0.6%
2011 2012 2013 2014 2015 2016 2017
Financial Year ended 30 June
ANNUAL DEMAND CHANGE SINCE 2010
Source: Electricity Authority
Meridian Energy Limited 2017 Annual Shareholder Meeting

8
Offshore opportunities
.
Image: the HVDC Inter-Island transmission line (front) near Wellington, New Zealand
Image: Mt Millar wind farm, South Australia
Image: Logo of Flux Federation, Meridian’s development subsidiary
Meridian Energy Limited 2017 Annual Shareholder Meeting

9
Transmission pricing review delayed

Transmission pricing
.
Image: The HVDC inter-island transmission line (front) near Wellington, New Zealand
Meridian Energy Limited 2017 Annual Shareholder Meeting

10
The year ahead
.
Image: Godley River, Canterbury, New Zealand
10
Mark Binns

Neal Barclay

Meridian Energy Limited 2017 Annual Shareholder Meeting

11
Chief Executive’s review
.

Meridian Energy Limited 2017 Annual Shareholder Meeting

12
Our people
.
No significant harm injuries and reduction in workplace injury statistics in FY17

1.12
1.99
1.52
1.86
0.73
2013 2014 2015 2016 2017
Financial Year ended 30 June
RECORDABLE INJURY FREQUENCY RATE
1
77.9
86.1
87.3
87.4
83.2
82.9
87.0
83.7
90.7
88.0 88.0
89.3
2014 2015 2016 2017
%
Financial Year ended 30 June
EMPLOYEE ENGAGEMENT
2
Meridian
Australia
NZ Top 25%
Progressing towards top quartile employee engagement

1. Total recordable injury frequency rate (TRIFR) for Meridian onsite employees and contractors. TRIFR is calculated per 200,000 hours and includes all lost time, medical treatment and restricted work injuries
2. Measured by “level of agreement” – the percentage of staff who ‘agree’ or ‘strongly agree’ with the six questions that collectively determine our Engagement Index
Source: Meridian
Source: Meridian
Meridian Energy Limited 2017 Annual Shareholder Meeting

2017 financial results
.
13
Underlying
NPAT
$218M
Dividend declared 18.91CPS
Operating
cash flow
$470M
NPAT
$197M
EBITDAF
$653M
F
u
l
l

y
e
a
r

c
h
a
n
g
e

+
6
%

-
6
%

+
0
.
5
%

+
4
%

+
3
%

First half change
+19%
+7%
+6%
-1%
+3%
Second half change
-10%
-21%
-5%
+9%
+3%
Source: Meridian
Meridian Energy Limited 2017 Annual Shareholder Meeting

A change in Government – a preliminary view
.
14
Image: The Beehive and Parliament Buildings, Wellington, New Zealand
14
Meridian Energy Limited 2017 Annual Shareholder Meeting

27.91
28.59
28.18
29.02
29.02
Jun-13 Jun-14 Jun-15 Jun-16 Jun-17
c/kWh
AVERAGE RESIDENTIAL ELECTRICITY COST
Average residential electricty cost increases below the rate of inflation •
 
4% increase since June 2013
•
 
Slightly lower than the increase in the
consumers price index over the same period
New Zealand residential electricity pricing
.
15
Source: Ministry of Business, Innovation & Employment
Meridian Energy Limited 2017 Annual Shareholder Meeting

16
Image: Aluminium smelter at Tiwai Point, Southland, New Zealand
16
Tiwai Point aluminium smelter
.
Meridian Energy Limited 2017 Annual Shareholder Meeting

17
Image: Commercial solar array, Bloomington, Minnesota, USA
17
Commercial solar
.
Meridian Energy Limited 2017 Annual Shareholder Meeting

Powershop offshore
.
18
?
Meridian Energy Limited 2017 Annual Shareholder Meeting

0
500
1,000
1,500
2,000
2,500
1-Jan 1-Mar 1-May 1-Jul 1-Sep 1-Nov
GWh
MERIDIAN'S WAITAKI STORAGE
Average 1979-
2012
2013
2014
2015
2016
2017
High August and September 2017 month inflows •
 
September quarter inflows were 131% of
average
•
 
Meridian’s Waitaki storage now at 121% of
average
•
 
Compared to the September quarter last year
•
 
25% lower NZ generation
•
 
10% higher NZ retail sales
•
 
Higher Australian generation and retail sales
•
 
Higher customer numbers in both countries
September quarter
.
19
Source: Meridian
Meridian Energy Limited 2017 Annual Shareholder Meeting

20
Final thoughts
.
20
Image: Stream near Lake Manapōuri, Southland, New Zealand
Meridian Energy Limited 2017 Annual Shareholder Meeting

21
Questions
.

Meridian Energy Limited 2017 Annual Shareholder Meeting

22
Resolutions and voting
.

Meridian Energy Limited 2017 Annual Shareholder Meeting

23
Postal and proxy vote totals
.
ELECTION OF MARK VERBIEST RE-ELECTION OF MARY DEVINE
RE-ELECTION OF STEPHEN REINDLER
VOTE TYPE
VOTED % VOTED % VOTED
%
FOR 575,863,755 30.5% 576,220,567 30.5% 575,823,227 30.5% AGAINST 881,322 0.1% 436,933 0.0% 738,319 0.0% DISCRETIONARY
1
1,311,292,951 69.4% 1,311,337,926 69.5% 1,311,347,826
69.5%
ABSTAIN 1,299,867 N/A 1,342,469 N/A 1,428,523 N/A
Resolutions supported by the Board

1. Discretionary votes held by the Chair, Directors and other proxies
Meridian Energy Limited 2017 Annual Shareholder Meeting

Election of Mark Verbiest •
 
That Mark Verbiest, who was appointed as a
Director of the Company by the Board on 24 March 2017, retires and is eligible for election, be elected as a Director of the Company
•
 
This resolution is unanimously supported by
the Board
Resolution 1
.
24
Meridian Energy Limited 2017 Annual Shareholder Meeting

25
Re-election of Mary Devine

•
 
That Mary Devine, who retires by rotation
and is eligible for re-election, be re-elected as a Director of the Company
•
 
This resolution is unanimously supported by
the Board
Resolution 2
.
Meridian Energy Limited 2017 Annual Shareholder Meeting

Re-election of Stephen Reindler •
 
That Stephen Reindler, who retires by
rotation and is eligible for re-election, be re-elected as a Director of the Company
•
 
This resolution is unanimously supported by
the Board
Resolution 3
.
26
Meridian Energy Limited 2017 Annual Shareholder Meeting

27
Shareholder proposal

•
 
That Meridian investigate other areas of business that reduce CO2 emissions that Meridian
can be involved in due to forecast climate change
•
 
This resolution is unanimously not supported by the Board
Resolution 4
.
Meridian Energy Limited 2017 Annual Shareholder Meeting

28
Resolution 4
.
VOTE TYPE
VOTED %
FOR 28,618,914 1.5% AGAINST 1,854,427,196 98.3% DISCRETIONARY
1
4,072,480 0.2%
ABSTAIN 2,219,305 N/A
Postal and proxy vote totals

1. Discretionary votes held by the Chair, Directors and other proxies
Meridian Energy Limited 2017 Annual Shareholder Meeting

29
Shareholder proposal

•
 
That Meridian investigate other areas of business that reduce CO2 emissions that Meridian
can be involved in due to forecast climate change
•
 
This resolution is unanimously not supported by the Board
Resolution 4
.
Meridian Energy Limited 2017 Annual Shareholder Meeting

30
Shareholder proposal

•
 
That Meridian lobby the New Zealand Government to support the use of debt-free money to
make climate change financially viable, rather than using the proceeds from tax or debt to private bankers, to reduce CO2 emissions in the environment
•
 
This resolution is unanimously not supported by the Board
Resolution 5
.
Meridian Energy Limited 2017 Annual Shareholder Meeting

31
VOTE TYPE
VOTED %
FOR 21,516,468 1.1% AGAINST 1,862,011,353 98.7% DISCRETIONARY
1
4,017,995 0.2%
ABSTAIN 1,792,079 N/A
Resolution 5
.
Postal and proxy vote totals

1. Discretionary votes held by the Chair, Directors and other proxies
Meridian Energy Limited 2017 Annual Shareholder Meeting

32
Shareholder proposal

•
 
That Meridian lobby the New Zealand Government to support the use of debt-free money to
make climate change financially viable, rather than using the proceeds from tax or debt to private bankers, to reduce CO2 emissions in the environment
•
 
This resolution is unanimously not supported by the Board
Resolution 5
.
Meridian Energy Limited 2017 Annual Shareholder Meeting

33
Closing
.

Meridian Energy Limited 2017 Annual Shareholder Meeting

Disclaimer
.
34
The information in this presentation was prepared by Meridian Energy with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the information. In addition, neither the company nor any of its directors, employees, shareholders nor any other person shall have liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it. This presentation may contain forward-looking statements and projections. These reflect Meridian’s current expectations, based on what it thinks are reasonable assumptions. Meridian gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or NZX or ASX listing rules, Meridian is not obliged to update this presentation after its release, even if things change materially. This presentation does not constitute financial advice. Further, this presentation is not and should not be construed as an offer to sell or a solicitation of an offer to buy Meridian Energy securities and may not be relied upon in connection with any purchase of Meridian Energy securities.
This presentation contains a number of non-GAAP financial measures, including Energy Margin, EBITDAF, Underlying NPAT and gearing. Because they are not defined by GAAP or IFRS, Meridian's calculation of these measures may differ from similarly titled measures presented by other companies and they should not be considered in isolation from, or construed as an alternative to, other financial measures determined in accordance with GAAP. Although Meridian believes they provide useful information in measuring the financial performance and condition of Meridian's business, readers are cautioned not to place undue reliance on these non-GAAP financial measures. The information contained in this presentation should be considered in conjunction with the company’s financial statements, which are included in Meridian’s integrated report for the year ended 30 June 2017 and is available at: All currency amounts are in New Zealand dollars unless stated otherwise.
Meridian Energy Limited 2017 Annual Shareholder Meeting

Thank you
.