Meridian Energy (MEL) Investor Day summary

Strategic context and sector outlook

• Recent aluminum smelter agreement provides long-term certainty, unlocking capital investment and dividend review opportunities.

• Government policy shift supports private sector-led energy transition, with focus on competition and investment.

• NZ’s 2050 Net Zero goal drives a $30B generation investment cycle, with sector-wide investment potentially exceeding $100B.

• Demand growth by 2050 projected at 50%-75% above current levels, driven by electrification, population growth, and technology advancements.

• Gas sector challenges persist, but flexible demand response and hydro assets are key to managing transition risks.

Business strategy and future plans

• Strategy centers on climate action, with pillars: renewable development, customer decarbonization, flexibility, and operational excellence.

• Targeting 1,000 GWh of new industrial demand by 2030, with process heat electrification and transport electrification as major focuses.

• $10B investment planned to maintain a 30% share of sector growth, equating to 20 new wind farms by 2050.

• Retail strategy aims for cleaner, cheaper energy, leveraging digitalization, customer-centricity, and demand response products, with a goal to unlock $100M EBITDAF from emerging value pools by 2030.

• Operational excellence initiatives include reducing outage days, increasing asset flexibility, and leveraging data-driven decision-making.

Recent achievements and operational highlights

• Harapaki wind farm (176 MW) and Ruakākā battery (100 MW) delivered on time and within budget, despite major challenges.

• Exited Australia in 2022, strengthening balance sheet and enabling a development pipeline to double business size in 20-25 years.

• Retail customer connections grew 25% and volume 55% over six years, with a 47% increase in net back since 2018.

• Significant progress in energy hardship programs, supporting nearly 1,000 vulnerable customers.

• Retail sales have grown 14% over three years, with 314 EV charging points operational as of June 2024.