Meridian Energy Investor Presentation

Release






Meridian Energy Limited (ARBN 151 800 396) A company incorporated in New Zealand
Level 2, 98 Customhouse Quay, Wellington 6011

meridianenergy.co.nz
Stock Exchange Listings NZX (MEL) ASX (MEZ)
Meridian Energy Investor Presentation
1 November 2024
Attached is a presentation Meridian Energy will be making at a series of investor meetings
during November.

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:
Phil Clark
Head of Communications
027 838 5710

2024
Investor
Presentation
MERIDIAN ENERGY LIMITEDNovember 2024

2024 INVESTOR PRESENTATION
2
MERIDIAN ENERGYNovember 2024
Why Meridian?
Meridian’s completed HarapakiWind Farm in Hawke’s Bay

2024 INVESTOR PRESENTATION
3
MERIDIAN ENERGYNovember 2024
Leading sustainability performance.
Why Meridian?
Green
Finance
Framework
1
Cover image
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Climate-related Disclosures
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Stand
ards
NZ CS
1, NZ CS
2, NZ CS 3
Jul
y 2022
Greenhouse Gas
Emissions
Inventory
Report

2024 INVESTOR PRESENTATION
4
MERIDIAN ENERGYNovember 2024
High quality investment.
Why Meridian?
quality, scale
assets
high free cash
flow
progressive
ordinary
dividend
balance sheet
headroom
strong growth
outlook
deep
renewable
development
pipeline

2024 INVESTOR PRESENTATION
5
MERIDIAN ENERGYNovember 2024
New Zealand electricity market
Meridian’s Benmore hydro station in the Mackenzie Basin, South Canterbury

2024 INVESTOR PRESENTATION
6
MERIDIAN ENERGYNovember 2024
A reliable, affordable and environmentally sustainable
electricity system.
A well functioning competitive market with high level
of renewable resources and rational competition.
Vertical integration is the prevailing market structure.
Wholesale and retail market regulation provided by an
independent regulator –The Electricity Authority (EA).
EA’s mandate is to promote efficient market operation,
security of supply, promote competition, protect
customer interests.
No price controls, the non-competitive transmission
and distribution sectors have regulated rates of return.
NZ electricity market
Meridian’s completed HarapakiWind Farm in Hawke’s Bay
Meridian’s Manapōurihydro station in the Fiordland National Park

2024 INVESTOR PRESENTATION
7
MERIDIAN ENERGYNovember 2024
0
1,000
2,000
3,000
4,000
5,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
National hydro storage (29 October 2024)
range (1927-2023)Average storage (91yr)2024
0
50
100
150
200
250
300
20002003200620092012201520182021202420272030203320362039
PJ
Calendar Year
New Zealand gas production
actualforecast
Hydro generation is managed against limited controlled
storage.
Bulk of hydro inflow is anti-correlated to winter
demand peak.
Efficient and well-functioning wholesale market
manages this supply risk.
Thermal capacity and fuel storage has historically
managed potential hydro inflow deficit and other
renewable intermittency.
Winter 2024 drought highlighted declining indigenous
gas production and reserve estimates.
Following a decade of little demand increase, organic
growth is occurring, with a strong outlook from
decarbonisation.
NZ electricity market
Source: Ministry of Business, Innovation and Employment, HīkinaWhakatutuki
Source: NZX
$800/MWh wholesale prices$1/MWh wholesale prices

2024 INVESTOR PRESENTATION
8
MERIDIAN ENERGYNovember 2024
56%
18%
1%
1%
8%
1%
5%
10%
Annual generation
Hydro
Geothermal
Biogas
Wood
Wind
Solar
Oil
Coal
Gas
Waste Heat
35%
23%
7%
33%
2%
Annual consumption
Residential
Commercial
Agriculture
Industrial
Other
NZ electricity market
5major generators (all listed, 3
majority Govt owned), proposed
acquisition between 2 not majority
Govt owned
1transmission grid
owner (state owned)
1large industrial user (Rio
Tinto smelter), ~13% of
national demand
29distribution
businesses (various
ownership structures)
40retail brands
2.3million
consumers
(40 TWh pa)
Sources: Electricity Authority and Ministry of Business, Innovation and Employment, HīkinaWhakatutuki
(June 2024)
(June 2024)
26% share
31% share
85% renewable

2024 INVESTOR PRESENTATION
9
MERIDIAN ENERGYNovember 2024
NZ electricity market pricing
Source: Ministry of Business, Innovation and Employment, HīkinaWhakatutuki
0
10
20
30
40
201020112012201320142015201620172018201920202021202220232024
c/KWh
Calendar Year ended 31 March
Unit electricity costs (real)
Residential
(incl GST)
Commercial
(excl GST)
Industrial
(excl GST)
89
173
130
73
171
64
0
50
100
150
200
202020212022202320242025 Q1
$/MWh
Financial Year ended 30 June
Meridian average generation price
0
100
200
300
400
500
Q3
2024
Q4
2024
Q1
2025
Q2
2025
Q3
2025
Q4
2025
Q1
2026
Q2
2026
Q3
2026
Q4
2026
Q1
2027
Q2
2027
Q3
2027
Q4
2027
$/MWh
Benmore ASX futures settlement price
30 June 202328 June 2024
31 July 202430 August 2024
30 September 2024
Source: Meridian
Source: ASX

2024 INVESTOR PRESENTATION
10
MERIDIAN ENERGYNovember 2024
NZ electricity market decarbonisationopportunity
Source: Ministry For The Environment, ManatūMōTeTaiao
53%
18%
8%
6%
6%
5%
3%
1%
2022 greenhouse gas emissions by sector
Agriculture
Transport
Manufacturing & construction
Heat production/other
Industrial processes
Waste
Electricity generation
Fugutive emissions
78.4
MtCO
2
e

2024 INVESTOR PRESENTATION
11
MERIDIAN ENERGYNovember 2024
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
19972001200520092013201720212025202920332037204120452049
GWh
Financial year ended 30 June
Annual NZ Demand for Generation
By 2050 New Zealand will require around $30
billion of investment in new renewable generation.
Consenting under the current Resource
Management Act (RMA) has become inefficient.
Fast-Track Approvals Bill can deliver a more
efficient process and ensure adequate
environmental and community safeguards.
NZ electricity market projected demand
Source: Meridian
High
Low

2024 INVESTOR PRESENTATION
12
MERIDIAN ENERGYNovember 2024
About Meridian
Maintenance work at Meridian’s West Wind Farm near Wellington

2024 INVESTOR PRESENTATION
13
MERIDIAN ENERGYNovember 2024
20%
36%
33%
19%
15%
60%
10%
12%
-8%
25%
17%
-20%
0%
20%
40%
60%
20142015201620172018201920202021202220232024
Financial Year ended 30 June
Total shareholder return
Meridian TSRNZX50 Index
About Meridian
374,000
customers
Source: Meridian

2024 INVESTOR PRESENTATION
14
MERIDIAN ENERGYNovember 2024
New Zealand’s largest generator, all production
from renewable sources.
Seven big hydro stations –flexible plant with the
country’s largest storage.
With low operating costs and capital needs.
Six New Zealand wind farms -proven success
operating in a high wind environment.
Backed with more than a decade of construction
and operational experience.
The largest retailer of electricity in New Zealand.
Exposure to new generation and electricity
demand growth in New Zealand’s low carbon
future.
About Meridian
Meridian’s TeĀpitiWind Farm north of the ManawatūGorge

2024 INVESTOR PRESENTATION
15
MERIDIAN ENERGYNovember 2024

2024 INVESTOR PRESENTATION
16
MERIDIAN ENERGYNovember 2024

2024 INVESTOR PRESENTATION
17
MERIDIAN ENERGYNovember 2024
Investment in a low carbon future
$2B invested into new and existing assets in the last 10
years.
Stable returns on assets and equity (3%-5% per
annum).
New generation investment of $3B to deliver at least 7
projects by 2030.
With a total investment envelope of $10B+ for 20
projects by 2050.
physical -$27M
financial +$172M
Lake Pūkaki, Mackenzie Basin, South Canterbury
total

2024 INVESTOR PRESENTATION
18
MERIDIAN ENERGYNovember 2024
Re-consent application lodged for the Waitaki
Hydro Scheme.
Will be the largest consent ever granted under the
RMA.
Waitaki Hydro Scheme consists of eight power
stations and provides 18% of this country’s
electricity needs.
And provides 60% of this country’s hydro storage.
Waitaki reconsenting
Headwaters of Lake Pūkakiin the Mackenzie Basin, Canterbury

2024 INVESTOR PRESENTATION
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MERIDIAN ENERGYNovember 2024
50%
60%
70%
80%
90%
100%
110%
120%
130%
140%
2002200620102014201820222026203020342038204220462050
GWAP/TWAP
Financial Year ended 30 June
Annual Price Participation
HistoryWaitaki chainManapōuriWindSolar
The value of hydro storage

2024 INVESTOR PRESENTATION
20
MERIDIAN ENERGYNovember 2024
Future retail value pools
Potential annual EBITDAF uplift
1
($M) for Meridian by innovation value pool for 2030 and steady state (assuming 30% market share)
11
3
48
7
62
21
8
7
100
4
136
10
198
EVs
1
Battery
Demand response
2
Home electrification
~270~100
19Solar
21 –31
148
Process heat
3
11
Total~370
10
•Value pool includes CAPEX, installation, financing, energy for mass market and C&I customers
Key assumptions and inputs
Value pool estimate in 2030Incremental value in pool in 2040
•Value pool includes CAPEX, installation, financing, energy for mass market and C&I customers
•Value pool includes AC and DC charging
•Includes passenger vehicles and light commercial vehicles
•Value pool does not include hardware manufacturing or energy management
•Heat pumps only; uptake based on phase-out of natural gas by 2050 for mass market customers only;
value pool includes CAPEX, installation and financing
•Includes batteries, heat pumps, process heat, EVs onlyand estimated arbitrage price of $40/MWh
from New Zealand wholesale market FY23-FY28
•Assumes 2hrs of flexibility for C&I segment; all of mass market segment is assumed flexible load
•Assumes linear electrification of fossil-fuel capacity by 2050 and 5280 hrs of operation for C&I only
•Value pool includes CAPEX, installation, financing, energy; CAPEX, installation and financing likely to vary
significantly resulting in total value pool range between $21 –$31m
Hypothesis highest value pools for Meridian
1-3
McKinsey 2023, from their energy global power and energy expert group.
Before accounting for cannibalisation
of $8-$19M
Does not include eroded underlying electricity supply by underserving growing customer segment or
any broader benefits to customers and the core retail business (e.g., retention, cross-sell)
Before accounting for cannibalisation
of $1-$4M
PRELIMINARY

2024 INVESTOR PRESENTATION
21
MERIDIAN ENERGYNovember 2024
‘Half by 2030’ operational emissions reduction
target.
Target of net carbon zero by 2050.
Continued inclusion in the Dow Jones Asia Pacific
Sustainability Index.
Meridian’s decarbonisation
Meridian Zero electric vehicle charging at Eastbourne near Wellington

2024 INVESTOR PRESENTATION
22
MERIDIAN ENERGYNovember 2024
$5 million Energy Wellbeing Programmehelping
5,000 households out of energy hardship.
Process Heat Electrification Programmeexpected
to support the removal of 140,000 tCO2e annually
by 2030.
Delivering cleaner, cheaper energy
Solar installation at WaipunaCommunity Services in Canterbury

2024 INVESTOR PRESENTATION
23
MERIDIAN ENERGYNovember 2024
20-year term has removed uncertainty for the
electricity sector and the people of Southland.
Agreements include demand response provisions
to help manage low hydro storage conditions.
Value of demand response proven through 2024
dry winter.
Ground-breaking agreements with NZAS
Transmission lines near New Zealand’s Aluminium Smelter in Southland

2024 INVESTOR PRESENTATION
24
MERIDIAN ENERGYNovember 2024
Dividends
Recent change to an operating free cash flow-based
dividend policy.
FY24 final ordinary dividend of 14.85cps (+25% on
FY23), 80% imputed.
FY24 full year ordinary dividend of 21.00cps (+17% on
FY23), 80% imputed.
Meridian’s ordinary dividend policy
Meridian’s ordinary dividend policy is to make distributions at a dividend payout
ratio, within an average over time, of 80% to 100% of Operating Free Cash Flow,
subject to the Board’s due consideration of:
▪Meridian’s working capital requirements and its medium-term
investmentprogramme;
▪a sustainable financial structure from Meridian,recognisingthe Company’s
targeted long-term credit rating of BBB+ by S&P; and
▪the risks from short and medium term economic, market and catchment
hydrology conditions and expected financial performance.
Operating Free Cash Flow is calculated as Operating Cash Flow, less the annual
capital cost of maintaining Meridian’s asset base and systems (Stay in Business
Capital Expenditure).
16.9016.90
17.40
17.90
21.00
2.44
0
5
10
15
20
25
20202021202220232024
cps
Financial Year ended 30 June
Total dividends declared
Ordinary dividendsSpecial dividends
Source: Meridian

2024 INVESTOR PRESENTATION
25
MERIDIAN ENERGYNovember 2024
Financial performance
787
692
709
783
905
0
200
400
600
800
1,000
20202021202220232024
$M
Financial Year ended 30 June
EBITDAF
175
415
451
95
429
0
100
200
300
400
500
20202021202220232024
$M
Financial Year ended 30 June
Net profit after tax (continuing operations)
604
431
461
509
667
0
200
400
600
800
20202021202220232024
$M
Financial Year ended 30 June
Operating cash flows
316
231
233
315
359
0
100
200
300
400
20202021202220232024
$M
Financial Year ended 30 June
Underlying NPAT
1.8
2.3
1.2
1.6
1.4
0
1
2
3
June 2020June 2021June 2022June 2023June 2024
Times
Net debt to EBITDAF
559
393
421
463
595
0
100
200
300
400
500
600
700
20202021202220232024
$M
Financial Year ended 30 June
Free cash flow
Source: Meridian

2024 INVESTOR PRESENTATION
26
MERIDIAN ENERGYNovember 2024
Financial metrics
Source: Meridian

2024 INVESTOR PRESENTATION
27
MERIDIAN ENERGYNovember 2024
Thank you
Container installation at Meridian’s RuakākāBattery Energy Storage system near Whangārei

2024 NOVEMBER PRESENTATION
28
MERIDIAN ENERGYNovember 2024
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 2024 and is available
at:
www.meridianenergy.co.nz/investors
All currency amounts are in New Zealand dollars unless stated otherwise.
Disclaimer