Meridian Energy Business Update and Investor Call

Release






M e r i d i a n E n e r g y L i m i t e d ( A R B N 1 5 1 8 0 0 3 9 6 ) A c o m p a n y i n c o r p o r a t e d i n N e w Z e a l a n d
L e v e l 2 , 5 5 L a d y E l i z a b e t h L a n e , P O B o x 1 0 8 4 0 , W e l l i n g t o n 6 1 4 3

m e r i d i a n e n e r g y . c o . n z
Stock Exchange Listings NZX (MEL) ASX (MEZ)
Meridian Energy Business Update and Investor Call
10 July 2020

Following Rio Tinto’s announcement regarding NZAS contract termination, Meridian Chief Executive
Neal Barclay will host a teleconference at 10am New Zealand time today.
If you would like to join the call, please dial in prior to the scheduled start time. Details of the call are
as follows:
Participant information
Dial in number(s)
Australia Toll-Free: 1800 093 431
Hong Kong Toll: +852 3005 2399
Japan Toll-Free: 0120 200 683
New Zealand Toll-Free: 0800 452 257
New Zealand Toll: +64 9 307 1606
Singapore Toll-Free: 800 120 6856
UK Toll-Free: 0800 026 1552
US Toll-Free: 1 877 788 9032
International: +61 2 8047 9393
Participant PIN Code
83141702#
Corresponding times:
Sydney/Melbourne 8am 10 July
Hong Kong 6am 10 July
Japan 7am 10 July
London 11pm 9 July
Los Angeles 3pm 9 July
New York 6pm 9 July
A transcript and recording of the call will be available following the briefing on Meridian's
website, www.meridianenergy.co.nz/investors

m e r i d i a n e n e r g y . c o . n z
PG 2

ENDS
Neal Barclay
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
Senior Communications Specialist
021 174 1715

RIO TINTO NZAS CONTRACT
TERMINATION
Meridian business update
10 JULY 2020

2
Rio Tinto 9 July announcement
Rio Tinto are terminating the contract at the end of August 2021
Wind-down of operations is expected to be complete by this date
“During the next 14 months, NZAS and Rio Tinto will work closely
with partners as detailed planning is undertaken to wind-down
operations, and eventually close the smelter”
No change to current contract pricing in that 14 months
Pricing remains confidential
10 JULY 2020
RIO TINTO NZAS CONTRACT TERMINATION

3
Business update
No change to current ordinary dividend policy
(75-90% of free cash flow)
Immediate end to capital management programme
Swaption renewal:
Swaption renewal process to be abandoned
Current swaption likely to be terminated
Portfolio response:
Pūkakilow range storage now accessible for greater flexibility between catchments
Wholesale bilateral contract negotiations at different stages
Up to 50MW of ASX Benmore sales through 2023, some buying at Otahuhu
Investigation into NI reserve capacity, including possible battery storage solutions
Accelerated retail volume growth can now be pursued
Harapakiwind farm remains a strong investment case, no decision has been made
10 JULY 2020
RIO TINTO NZAS CONTRACT TERMINATION

4
Clutha to Upper Waitaki Lines Project – update
Tower foundation design work has been completed
Foundation strengthening works have commenced
In June 2020, Transpower announced it will restart
work to complete the remaining works
Cost is estimated at $97m, full completion at latest
by mid 2023
Work underway to mitigate the impact of outages
through to project completion
10 JULY 2020
RIO TINTO NZAS CONTRACT TERMINATION
CUWLP completion enables full export of
generation out of Southland
-1000
-500
0
500
1000
1500
0%4%8%
12%16%20%24%28%32%36%40%44%48%52%56%60%64%68%72%76%80%84%88%92%96%
100%
<< Into : Transfer [MW] : Out Of >>
Probability of exceedance [%]
Transmission capacity out of the Southland Region
Forecast utilisationCurrent capacity
Capacity post CUWLPUtilisation post CUWLP NZAS Exit
Source: Meridian

5
Summary
Rio’s decision now provides clarity
Industry will adjust to a future without Tiwai
Clutha Upper Waitaki transmission work will enable
full export out of Southland
Solutions to operational constraints on the HVDC
will come into the market
NZAS exit may change allocation to beneficiaries
under new TPM
10 JULY 2020
RIO TINTO NZAS CONTRACT TERMINATION

6
Disclaimer
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 available at:
www.meridianenergy.co.nz/investors
All currency amounts are in New Zealand dollars unless stated otherwise.
10 JULY 2020
RIO TINTO NZAS CONTRACT TERMINATION