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04 >> OUR PURPOSE, GOAL & STRATEGY 06 >> REPORT CARD 08 >> CHAIR & CHIEF EXECUTIVE’S MESSAGE 16 >> AT A GLANCE 18 >> OUR BUSINESS MODEL 20 >> WHAT MATTERS MOST 22 >> CUSTOMER SATISFACTION 26 >> OUR PEOPLE & SAFETY 30 >> CARE WITH NATURAL RESOURCES 34 >> ENDURING PARTNERSHIPS 38 >> CREATING SHARED VALUE 42 >> FINANCIAL TRACK RECORD 44 >> INDEPENDENT AUDITOR’S REPORT 47 >> FINANCIAL STATEMENTS 74 >> GOVERNANCE AT MERCURY 79 >> REMUNERATION REPORT 83 >> DISCLOSURES 91 >> GLOSSARY 92 >> DIRECTORY
ABOUT THIS REPORT. At Mercury we have a genuine focus on the long term. This drives the way we do business, provide services to customers, our investment decisions, partnerships with stakeholders and our approach to reporting. Our 2016 Annual Report includes our full financial statements and notes for the year ended 30 June 2016, along with commentary on the company’s performance and outlook. This report outlines our goal, purpose, strategic priorities and an overview of Mercury’s business (AT A GLANCE). For the first time, we have illustrated our business model and report on five key pillars (WHAT MATTERS MOST) that are important to our stakeholders and the business in sustaining and growing value. The Corporate Governance section of this report describes how we set the objectives and direction for the business, and the framework for identifying and managing risks. Our corporate governance policies are available online at: mercury.co.nz/About/Leadership/Corporate-Governance. The company changed its name from Mighty River Power Limited to Mercury NZ Limited on 29 July 2016. Our New Zealand Business Number (NZBN) is 9429037705305 This report is dated 23 August 2016 and is signed on behalf of the Board of Mercury NZ Limited by Chair, Joan Withers and Director, Keith Smith.
>> JOAN WITHERS, CHAIR
>> KEITH SMITH, DIRECTOR
REPORT CARD. >> FINANCIALS
$493M
EBITDAF UP $11M, REFLECTING HIGHER GENERATION PARTIALLY OFFSET BY LOWER RELATIVE GENERATION PRICES AND THE ROLL-OFF OF SPECIFIC COMMERCIAL SALES CONTRACTS.
$160M
NET PROFIT $113M HIGHER DUE TO IMPAIRMENTS IN FY2015 AND IMPROVED EBITDAF IN FY2016.
$221M
FREE CASH FLOW DOWN 4%, WITH A SHORT-TERM PREPAYMENT OF TAX OFFSET BY REDUCED STAY-IN-BUSINESS CAPEX.
$14.3CPS ORDINARY DIVIDEND PLUS AN ADDITIONAL 4CPS UNIMPUTED SPECIAL DIVIDEND.