Metrix Chief Executive appointment

NEWS RELEASE 13 May 2014 NZX: MRP ASX: MYT

Metrix Chief Executive appointment signals significant growth opportunity

Mighty River Power today announced the appointment of Matthew Olde to the newly-created position of Chief Executive of the Company’s metering business, Metrix.

Mighty River Power has signalled growth opportunities in advanced metering, both domestically and internationally, as a key focus for the Metrix business which is New Zealands second-largest provider of electricity metering services with more than 340,000 active „smart meters.

Mighty River Power Chief Executive, Doug Heffernan, said the immediate appointment of Mr Olde as acting Metrix Chief Executive, directly reporting to the Mighty River Power Chief Executive, reflected the strategic importance of Metrix progressing growth plans in partnering with electricity retailers and other companies to provide them with enhanced information solutions.

“This appointment is about applying strong leadership to an area where there is significant growth potential, with two of the largest electricity retailers in New Zealand still to appoint an AMI (Advanced Metering Infrastructure) partner for the deployment of smart meters. That represents about 440,000 consumer premises, and the potential to more than double Metrixs current smart meter business. While this is our primary growth focus, in the medium term we are also looking at the potential to apply the expertise and capability we have through Metrix in electricity markets offshore.

“This is an exciting space where Metrix is one of the established leaders, and where opportunities are developing rapidly on the back of demand from retailers for real-time visibility of their customers electricity consumption, and services that have become possible with AMI smart meters already covering more than 50% of New Zealands 1.6 million homes and businesses,” Dr Heffernan said.

“In a New Zealand first for a lines company we have this month completed the roll-out of more than 4,000 smart meters through a partnership with Counties Power, which will grow to 40,000 over the next 18 months. Metrix is now providing data services to retailers based on smart meter information. Through this „smart grid platform the network owner, Counties Power, will also in future be able to identify and address power outages and quality issues more quickly for the benefit of customers.”

Along with the Chief Executive appointment, Dr Heffernan said a Business Transformation function would be established within Metrix to respond to the range of current and emerging areas of growth. The role of Metrix General Manager will be disestablished and Tim OHalloran will move to head Business Transformation reporting to Mr Olde, with core responsibility for execution and integration of all major capital projects.

Over the past five years Metrix has built its AMI business to over 340,000 installations through capital investment of nearly $100 million. Dr Heffernan said Metrixs annual capital expenditure of $10-15 million in FY2014 could double or triple in the medium term depending on the success of the business in securing further value-enhancing growth opportunities, with revenues flowing progressively through the deployment phase.

Mr Olde joined Mighty River Power in 2010. He was appointed to the Companys executive team as General Manager Business Strategy and Solutions in December 2012 and as IPO Project Manager, was responsible for overseeing the Companys preparations for the Initial Public Offering in May 2013. Mr Oldes previous experience was in the investment banking industry in Auckland, Sydney and London.

Dr Heffernan said Mr Oldes focus would now be solely on the Metrix business. His former GM Business Strategy and Solutions role has been disestablished, with a temporary reassignment of functions including Tony Nagel (General Counsel, with responsibility for Communications) reporting to Dr Heffernan, ICT (Information, Communication and Technology) reporting to Human Resource General Manager, Marlene Strawson, and Business Strategy now assumed by the Companys Chief Executive function.
ENDS. For further information:

David Glendining Anna Hirst Head of Communications Head of Investor Relations T 0272 105 337 T 0275 173 470
Mighty River Power is one of New Zealands largest electricity companies – with its core business based on reliable, low fuel-cost electricity generation complemented by sales to homes and businesses.

The Company generates about 15-17% of New Zealands electricity. It operates the nine hydro stations on the Waikato River, five geothermal power stations in the Central North Island and a multi-unit gas-fired station in Auckland. More than 90% of its annual electricity production is from renewable sources. Mighty River Power sells electricity to end customers through multiple channels and retail brands, including Mercury Energy, GLO-BUG, Bosco Connect and Tiny Mighty Power. Mighty River Powers metering business, Metrix, is one of New Zealands largest providers, supplying electricity retailers with enhanced information solutions for their residential and commercial customers.

Mighty River Power is one of the worlds largest geothermal power station owners, and has a successful track record in geothermal development, investing more than $1.4 billion in geothermal development since FY2006. The Company is applying this capability and experience – gained through domestic geothermal exploration, development, construction and operations – to invest in international growth opportunities.

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