Pulse Utilities- Preliminary Unaudited Results

Media Announcement Thursday 14 June 2012

Pulse Utilities New Zealand Limited - Preliminary Unaudited Results to 31 March 2012


Performance at a glance
Net profit attributable to security holders $0.2 million (2011: $7.6 million loss)
Customers acquired increased to more than 34,000 (2011: 23,000 customers)
Revenue more than doubled on previous year to $53.7 million (2011: $22.6 million)
Recapitalisation was successfully completed in August 2011.

Performance
Pulse’s continued growth in customer numbers provides confidence that our business model is robust.

Late in 2011, a strategic decision was made to slow our rapid customer growth. Primarily, this was a consequence of a delay in the implementation of anticipated Electricity Authority changes to the electricity market, resulting in the continuation of high prudential requirements for both purchasing electricity and lines company charges. Accordingly, our amended goal is to reach 40,500 billable customers by March 2013 slightly down on previous targets.

Revenue for 2011-2012 increased to $53.7 million from $22.6 million last year, in line with the sustained growth in customers.

The company continues to hedge prudently to ensure management of dry winter risk with profitability dependant on obtaining hedging at fair market value. Despite the average electricity cost per unit for F/Y 2012 being approximately 14% more compared to the previous year, the company’s net margin has improved. This improvement is a result of economies of scale being achieved from the growing customer base and increased efficiency from development of business systems.

Fair value gains recognised on derivatives, loans and equity transactions contributed $7.3 million to the net profit for the year. Electricity derivative prices are fixed, with re-valuation reflecting the relative change in wholesale market sentiment and future spot price expectation.

Capital Raising
Recapitalisation transactions in August 2011 raised $8.3 million in funding and Buller Electricity has provided $9.0 in guarantees to support bank facilities and securities to the wholesale electricity market and electricity lines businesses.

Outlook
The company has started the new financial year with a substantial customer base and electricity hedges that meet the objectives of its hedge policy. These elements mean that the company is well placed to improve its profitability in the next financial year.

We look forward to keeping shareholders informed of our progress.
About Pulse Utilities New Zealand:
Pulse Utilities New Zealand Limited is the parent company of electricity retailer Just Energy, offering a fair deal and real value; independent electricity retailer and smart meter specialist, Pulse Energy; and specialist metering company, Pulse Metering Limited. Pulse Utilities New Zealand was listed on the New Zealand Stock Exchange – on the NZAX Board in November 2007.

About Just Energy:
Just Energy specialises in bringing competitive energy pricing to the New Zealand marketplace. Launched in July 2010, it is now one of the country’s fastest growing independent energy retailers. Just Energy customers enjoy the benefits of a fair deal and real value at their best possible local price.
www.justenergy.co.nz

About Pulse Energy:
Pulse Energy’s time-of-use metering system provides customers with the knowledge to shift their energy usage to more cost effectively and environmentally friendly times. Its metering systems are used by a range of customers including multi-tenanted apartments and office blocks, small businesses and residential homes.
www.pulseenergy.co.nz

About Pulse Metering:
Pulse Metering is a standalone meter and time-of-use meter data management company. It provides independent, specialist metering services to a growing number of electricity retailers and market participants.

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