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16 August 2021

Contact Energy Limited – 2021 Full Year Results

Please find attached the following documents relating to Contact Energy Limited’s (Contact) full year results for the year ended 30 June 2021.

(a) Media Release
(b) Results Presentation
(c) NZX Results announcement form (LR 3.5)
(d) NZX Distribution form (LR 3.14.1)

The 2021 Integrated Report is being loaded separately on ASX online and will be available on Contact’s website https://contact.co.nz/aboutus/investor-centre.

Dividend information filed on Appendix 3A.1 will follow.

ENDS

16 August 2021

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Contact delivers solid financial performance to support renewable generation investment


	Twelve months ended 30 June 2021 (FY21)	Twelve months ended 30 June 2020 (FY20)
EBITDAF1	$553m	↑	24% from $446m2
Profit	$187m	↑	50% from $125m
Profit per share	25.3 cps	↑	45% from 17.5 cps
Operating free cash flow3	$371m	↑	28% from $290m
Operating free cash flow per share	50.2 cps	↑	24% from 40.4 cps
Dividend declared	$272m	↓	3% from $280m
Dividend declared per share	35.0 cps	↓	10% from 39.0 cps
Stay-in-business (SIB) capital expenditure (cash)	$61m	↑	20% from $51m
Growth capital expenditure (cash)	$76m	↑	55% from $49m
Strategic investments (cash)	$40m	↑	471% from $7m

Highlights

Launched Contact26 strategy focused on leading New Zealand’s decarbonisation by connecting customers with our renewable energy development pipeline.
Development of new 152 megawatt Tauhara geothermal power station on track after $580m investment approved in February.
Completed $400m equity raise to support the Tauhara project and the significant expected medium-term growth capital investment programme.
Milestone of 50,000 broadband connections reached after rapid growth this year. Average electricity tariff to mass market electricity customers only up by 1.4% on FY20 despite sustained higher wholesale prices.
Ongoing strategic review of thermal assets, including ‘Thermal Co’ proposal to reduce New Zealand’s cost and carbon intensity of thermal generation while ensuring security of supply.

1 Refer to slide 48 of Contact’s FY21 Investor Results Presentation for a definition and reconciliation of the non-GAAP measure EBITDAF

2 Restated to account for the removal of the significant items classification previously excluded from EBITDAF

3 Refer to slide 21 of Contact’s FY21 Investor Results Presentation for a reconciliation of operating free cash flow

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Southern Green Hydrogen project launched with Meridian Energy to assess New Zealand’s near-term hydrogen potential.
Guided by our tikanga and pricing principles, we proactively worked with customers that were struggling to pay their bills, helping reduce both disconnections and bad debt.
Solid financial performance, with operating earnings (EBITDAF) up 24% year-on-year to $553m and profit up by 50% to $187m.
- Underpinned by strong asset availability and a disciplined approach to managing fuel in FY20 to support the market in FY21.
- Final dividend of 21 cents per share will be paid on 15 September 2021, bringing the full year declared dividend to $272m.

New Zealand’s largest privately-owned energy company Contact Energy (‘Contact’) released its full year financial results for the 12 months to 30 June 2021 (‘FY21’) this morning.

Contact Chair Rob McDonald said Contact had delivered a “solid” financial result.

“Contact has performed ahead of expectations after successfully navigating the potential departure of major energy users, short-term issues around low rainfall in the hydro catchments, and ongoing challenges around reliable gas supply. FY21 has been a year in which we have continued to deliver solid returns for our shareholders and made significant moves to ensure the company is well-positioned for the future by spending $177m on capital investments.”

The results are underpinned by Contact’s “decisive” channel management, as it supported fuel-constrained competitors with its flexible portfolio of gas-fired and renewable assets.

Mr McDonald said the company had refreshed its strategy and was on a path to invest to meet the anticipated market growth for low-cost renewable generation.

“Contact is preparing for a time of significant change and is positioned for growth as we focus on leading New Zealand’s decarbonisation. It’s pleasing to see evidence of the strategy in action in significant ways too.

“This includes investigating the potential for hydrogen production in the lower South Island, the development of the world-class Tauhara geothermal power station in the central North Island, and the $400m equity raise for our capital investment programme as we look ahead to further renewable generation developments.”

He said it was pleasing to deliver investors a 35 cents per share annual dividend, down slightly from 39 cents per share in FY20. “This is in line with the dividend policy we updated in February this year where we target a pay-out ratio of between 80 per cent and 100 per cent of the average operating free cash flow of the preceding four financial years.”

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Financial performance

CEO Mike Fuge said Contact had reported a statutory profit for FY21 of $187m, up from $125m a year ago. Operating earnings were up by $107m on FY20, partially offset by increased depreciation on thermal generation stations and higher tax to pay on the improved financial performance.

“We’ve done an excellent job in securing gas supply to ensure we could continue to generate electricity when renewable generation options were constrained by weather for most of the second half of the year.

“We expect there’ll be continued reliance on higher cost fuel sources over the shortterm, but these will be displaced over the next few years as more than three terawatt hours of low-carbon, renewable generation plants come on stream, including our geothermal development at Tauhara.”

Contact’s operating free cash flow for FY21 was $371m, up 28 per cent on FY20 on higher operating earnings and lower interest costs. This was partially offset by higher stay-in-business capital spending to support scheduled four-yearly geothermal outages.

Strategy in action

Mr Fuge said the company had undertaken “a significant strategic reset” and the new strategy communicated in the second half of FY21 signalled an exciting new chapter for Contact.

“At the heart of this is our commitment to building a better New Zealand by growing demand for renewable electricity, developing our renewable electricity generation options, decarbonising our own portfolio and creating outstanding experiences for our customers.”

He said the company had hit the ground running in terms of delivering on the strategy. “We’re obviously very excited about the development under way at Tauhara, but it does not stop here. The capital raise gives us the flexibility to execute on up to $800m of additional projects and we are actively looking at how we can bring more geothermal development forward in response to customer demand for our renewable electricity.

“We’re also under way with delivering innovative projects that increase generation efficiency from our existing assets and exploring opportunities around geothermal, wind, solar and the potential for further green electricity flexibility, including grid-scale batteries.”

He said Contact had also made sensible investments where it saw opportunities that would play an important role in New Zealand’s transition to a low-carbon future.

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“For example, we established our exclusive partnership with wind generation experts Roaring40s to develop a pipeline of large-scale wind generation assets, acquired specialist geothermal service company Western Energy to drive efficiency, and we’re very optimistic about the role our subsidiary Simply Energy can play in helping customers decarbonise their businesses.”

Mr Fuge said Contact would continue to increase customer connections by expanding into new products and services and had recently celebrated the milestone of 50,000 broadband connections.

People

There was one change to the Contact Board in FY21 with the departure of independent director Whaimutu Dewes in March 2021, after more than 10 years as an independent director.

Mr Dewes was replaced by new independent director Rukumoana Schaafhausen. She holds a range of governance roles at various organisations and has strong iwi connections and experience. Mr McDonald said: “We are delighted to have her strong values, diverse thinking, and passion for Aotearoa on the Contact Board.”

Independent director Dame Therese Walsh will also leave the Contact Board this month to focus on her other governance roles. She will be replaced by Sandra Dodds who joins on 1 September 2021.

Mr McDonald acknowledged the contributions of the two departing directors. “Both Whaimutu and Dame Therese have made considerable contributions to Contact and I would like to thank them both very much for their leadership, and wish them both well.”

There have also been changes to the Contact leadership team this year. Jacqui Nelson was appointed as Chief Generation Officer in July 2020, after more than 15 years at Contact in a wide range of roles across finance, resource management, trading and operations. And in April 2021, Jack Ariel joined in a new role as General Manager, Major Projects.

Chief Customer Officer Vena Crawley left Contact in April 2021 and last month deputy CEO James Kilty finished up at Contact ahead of his new role as CEO at electricity distributor Powerco.

Mr Fuge said: “On behalf of the Contact whānau, I would like to thank both James and Vena and wish them all the best for the future.”

Outlook

Mr Fuge said there was “no doubt” flexible thermal generation would still be required as the New Zealand electricity sector moves toward the Government’s goal of being 100 per cent renewable.

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“As an industry we will need work together to expedite sensible decarbonisation, while maintaining security of supply and affordability.”

Contact is leading the market in delivering emission reductions. This included a 'gas tolling' deal with Nova Energy to use Contact’s more efficient thermal generation leading to a net reduction in carbon emissions, and a recent power purchase agreement with Genesis Energy that will further reduce New Zealand's reliance on fossil fuels.

The company was also engaging with a range of stakeholders about an option to consolidate New Zealand’s thermal generation arrangements into one entity. “We believe consolidating thermal assets could optimise electricity generation from coal and gas-fired plants in ways that are aligned with New Zealand's emission reduction objectives, and also ensure affordable and stable electricity supply.”

Mr Fuge said Contact was looking forward to FY22 and beyond. “We understand the critical role that the electricity sector is set to play in reducing emissions and minimising climate change across the New Zealand economy over the next decade, as laid out in the Climate Change Commission’s recent advice to the Government. Our response is unequivocal: we are up for the challenge.

“We’re a strong company with a clear strategy and a host of opportunities in front of us. We have a robust balance sheet, a portfolio of high quality and flexible assets and a very capable team. We’re excited about the future.”

-ends-

Additional information:

Investor presentation [link]
- Investor webcast [link] - FY21 Integrated Report [link]

Contacts:

Investor enquiries: Matt Forbes, [email protected], +64 21 072 8578
Media enquiries: Paul Ford, [email protected], Ph +64 21 809 589

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2021 Full Year Results Presentation
Twelve months ended 30 June 2021
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Contact Energy / FY21 Fu l Year Results Presentation / 16 August 2021Contact Energy / FY21 Ful l Year Results Presentation / 16 August 2021

PRESENTATION AGENDA

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1
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2
3
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4
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FY21 Highlights and Market Update/ Mike Fuge, CEO Financial Results and Outlook / Dorian Devers, CFO Progress on Strategy / Mike Fuge, CEO & Dorian Devers, CFO Supporting Materials

4-13 14-28 29-37 38-52

Contact Energy / FY21 Fu l Year Results Presentation / 16 August 2021Contact Energy / FY21 Ful l Year Results Presentation / 16 August 2021

FY21 performance highlights

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

SUMMARY OF KEY FINANCIAL PERFORMANCE MEASURES

Solid financial performance supports continued investment to decarbonise New Zealand

	Twelve months ended 30 June 2021 (FY21)	Twelve months ended 30 June 2020 (FY20)	Twelve months ended 30 June 2020 (FY20)
EBITDAF1	$553m	↑	24% from $446m3
Profit	$187m	↑	50% from $125m
Profit per share	25.3 cps	↑	45% from 17.5 cps
Operating free cash flow2	$371m	↑	28% from $290m
Operating free cash flow per share2	50.2 cps	↑	24% from 40.4 cps
Dividend declared	$272m	↓	3% from $280m
Dividend declared per share	35.0 cps	↓	10% from 39.0 cps
Stay-in-business (SIB) capital expenditure (cash)	$61m	↑	20% from $51m
Growth capital expenditure (cash)	$76m	↑	55% from $49m
Strategic investments (cash)	$40m	↑	471% from $7m

Operating earnings (EBITDAF) were up by $107m when compared to FY20.

The operating conditions in FY21 were characterised by significant uncertainty around:

The near-term future of major energy users, including NZAS.
La Niña weather patterns and dry national hydrology.
The deliverability of gas from declining gas fields.
Rising carbon costs.

Despite the uncertainty in operating conditions, Contact supported wholesale customers with strong asset availability while managing our fuel risks.

During the year, Contact committed to the construction of the new 152MW Tauhara geothermal development, with the total capital investment totalling $177m for the financial year.

1 Refer to slides 48 for a definition and reconciliation of EBITDAF
2 Refer to slides 24 for a reconciliation of operating free cash flow
3 Restated to account for the removal of the Significant items classification previously excluded from EBITDAF

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

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Key strategic highlights from FY21

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Grow Grow renewable Decarbonise Create outstanding demand development our portfolio customer experiences

Attract new industrial Build renewable generation Lead an orderly Create NZ's leading energy and Objective demand with globally and flexibility on the back transition to renewables services brand to meet more of our competitive renewables of new demand customers’ needs Supported the extension of NZAS, New renewable investment Launched ThermalCo concept, Protected mass market customers from high facilitating an orderly 2024 exit committed: 152MW geothermal started stakeholder engagement wholesale prices – tariff up 1.4% on FY20 power station Undertook hydrogen study and Connections up 4%, with broadband Battery RFP concluded; engaged opened registration of interest connections up 25k (now 51k broadband FY21 New capability added to accelerate with EA to unlock regulatory process connections) decarbonisation: Roaring 40s wind barriers within the Transmission highlights partnership and Western Energy Pricing Methodology First 10MW flexible electricity End-to-end digital customer journeys acquisition agreement signed with a data centre programme delivered online refunds, new bill Secured an additional 17MW of emails, asynchronous messaging and new Simply Energy 100% acquisition Balance sheet strengthened to green flexibility CSR Tools to significantly increase use of support renewable pipeline: $400m digital self-serve channels . Agreed PPA terms with Genesis for equity raise Currently no intention of renewing 62.5MW backed by Tauhara the Swaption post 2022

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

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Key strategic highlights from FY21

Our ESG Operational Transformative excellence commitment ways of working Create long-term value through our strong Continuously improving our Create a flexible and high- Objective performance across a broad set of operations through innovation and performing environment for NZ's top environmental, social and governance digitisation talent factors Converted all bi-lateral bank facilities Thermal generation availability highest since 57% reduction in travel emissions, 348 tonnes to sustainability-linked loans and eligible debt certified as FY17, due to engineering and maintenance of CO2-e saved through reduction in ‘green’; 1st New Zealand company to join the Nasdaq undertaken to meet market demand commuting and 413 tonnes saved with a Sustainable Bond Network. reduction in business travel Safety performance was outstanding Over half of our passenger fleet is electric. A new engagement tool Peakon launched with FY21 Fueling innovation by acquiring Western employee engagement 7.8/10 and +30 eNPS highlights Sustainable Procurement strategy established including Energy to deliver lower cost geothermal fuel board approval of our Supplier Code of Conduct and Modern Several initiatives launched to grow our Slavery Statement. capability including a new leadership and

57% reduction in travel emissions, 348 tonnes of CO2-e saved through reduction in commuting and 413 tonnes saved with a reduction in business travel A new engagement tool Peakon launched with employee engagement 7.8/10 and +30 eNPS Several initiatives launched to grow our capability including a new leadership and learning framework

We planted more than 29,000 trees across our sites this year Improved on DJSI ranking to 62 percentile (from FY19: 55 percentile)

Reduction in office footprint

Supported 123 community initiatives through sponsorship, donations, grants and volunteer time.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

MARKET DEMAND

National electricity demand

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Regional change (%) (2%) National electricity demand (TWh) FY22 potential
FY21 vs FY20 demand changes
(TWh)
0%
(2%) Major industrials
+1%
3%
3% 41.2 40.9 41.3 41.4 41.2 41.6
(2%)
3%
4%
3% Potential 0.2
Demand flat
North Island 25.9 25.9 26.1 26.1 25.8 26.1 despite
1% impacts of
COVID
2%
1%
Confirmed -0.3
South Island (ex NZAS) 10.2 10.0 10.1 10.1 10.3 10.6
2%
(2%) NZAS curtailed
production from
1% NZAS 5.0 5.0 5.0 5.2 5.1 4.9 the 4 [th] potline
FY16 FY17 FY18 FY19 FY20 FY21 (50MW) from 3 -0.1
April 2020.
4% FY22
(1%) Source: EMI, Contact. Source: Company
(1%) Does not include NZAS Source: EMI, Contact announcements, Contact
4%
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FUEL SUPPLY

Hydrology and impact on generation mix

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Generation by type (TWh)
Generation from generator retailers
40.8 40.5 40.0
5.1 5.3 5.2 Gas Hydro generation was down
by 5% when compared to
1.6 1.7 FY20 with below mean
3.1 Coal
national inflows for the
majority of the financial
year.
25.0 24.0 With limited gas availability,
22.5 Hydro
due to the production
declines at Pohokura and
Kupe, generation from coal
increased by 82% on FY20.
1.6 1.9 1.8 Wind
7.3 7.3 7.2 Geothermal
Wood
0.2 0.3 0.2
FY19 FY20 FY21
Carbon
4.7 4.9 6.8
emissions (mT) Source: EMI & MBIE
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National hydro storage
1H20 2H20 1H21 2H21
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0 Mean
Actual
0.5
0.0
Jul Jan Jul Jan Jun
2019 2020 2020 2021 2021
Storage TWh
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Lake levels were appropriately managed through the financial year to manage the risk around gas availability and delivery. Unseasonably strong inflows in June and July 2021 has seen national storage recover above mean. Source: NZX

*Carbon emissions for FY21 Apr-Jun quarter has been estimated using historic conversion rates with actual generation data. The uplift in carbon emissions of 1.9mT CO2-e was due to the increase in coal generation from FY20 to FY21.

Not all generation stations are captured in the chart above.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FUEL SUPPLY AND NEAR-TERM PRICE IMPACT

Short-term factors influencing price all sharply higher over the last 12 months

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Short-term external factors that
Aluminium prices sharply
can influence the market
higher (+$1,123/t, up 45%).
Changes as at 30 June 2021, in New term NZAS contract
comparison to June 2020 signed in January 2021 to
December 2024
Coal prices
increasing Methanol pricing up
+$113/t (248%) by $2.88/GJ gas
equivalent (86%
Short-term
increase)
wholesale
electricity
prices
Gas availability - OMV
announced reduced volumes
from both Pohokura and Maui
gas fields
Limited impact on
demand from
Carbon prices up 35% to
COVID. Total
$43.5/NZU
demand up 1%
Long-term pricing is linked to the long-run marginal costs of new renewable projects
plus costs associated with firming renewable intermittency to meet growing demand
Aluminium
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Wholesale and futures electricity pricing ($/MWh)
300
Long-dated futures (>12 months)
Short-dated futures (<12 months)
250 Monthly average spot price
>3TW of new generation
build committed
200
150
100 10 year
average
spot price =
$90.00 /MWh
50
Long-run prices below LRMC of new generation
0
Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun-
10 11 12 13 14 15 16 17 18 19 20 21
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Both long-dated and short-dated prices remain well above long-term averages, reflecting higher thermal fuel costs and availability fuel risk

Source: EMI wholesale pricing

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

RETAIL ELECTRICITY MARKET

Retail competition remains intense

Change in customer connections (000s)

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2yr ICP delta (1000s)
Tier 1: -20k customers Tier 2: +84k customers 2yr % change
100
95%
50 32%
25% 55%
11%
-3% 1% -1%
0 -13% 14%
-24%
-50
Genesis Contact Mercury Meridian Trustpower Nova Pulse Flick Electric Vocus Other
Kiwi
Source: EMI
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Divergent views on the value of a customer:

Tier 1: Mercury 50k connections down over 2 years, Meridian growing market share (+42k connections) now 3[rd] largest mass market retailer.
Nova and Electric Kiwi continuing incredibly strong growth trajectory.
Reducing market share of main players continues, Tier 2 market share now at 16% (from 12% November 2018) despite volatile and higher wholesale prices.
New connections were up slightly compared to prior year (~1.5%. increase).

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Retail tariff changes (c/ kWh)
+1%
28.7 29.0 29.1 29.1 29.4
12.4 12.7 12.5 12.3 11.1
Lines (c/kWh)
16.4 16.3 16.5 16.8 18.3 Energy & Other (c/kWh)
12 months
ended: Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Source: MBIE
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Despite sharply higher wholesale prices over the last three years, tariffs up by a compound annual growth rate of 1% reflecting intense competition and diverging views of long-term wholesale prices.

Regulatory reset of Electricity Distributors WACC, has led to network cost reductions since 1 April 2020 partially offsetting rising energy costs over FY21. Network costs expected to rise above inflation over the medium term.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

Topical regulatory matters

Key themes

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Wholesale market volatility

Gas availability and lower mean water levels through 2021 have resulted in higher spot and hedge market prices, increasing pressure on unhedged energy intensive industries, and retail pricing.

The Electricity Authority, GIC and Minister continue to closely monitor security of supply, fuel availability and its impact on the wholesale market.

What Contact is doing

Contact is investing $580m in Tauhara, rolling out virtual Peaker product and working with industry to efficiently increase thermal generation in a fuel constrained market

Contact is working with customers to smooth out pricing volatility through long-term contracts

Contact continues to brief officials on its approach to managing current volatility.

Contact cooperates with various market enquiries by providing relevant data where required.

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Climate Change Commission

In June 2021, the Commission delivered its final report on carbon budgets and policy recommendations. The government must publish an Emissions Reduction Plan by the end of 2021.

Contact strongly supports the recommended direction of the Commission report, and the role that the energy sector will play in decarbonisation.

Contact continues to closely engage in the government’s work and assess the strategic opportunities and impacts for Contact.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

Topical regulatory matters

Key themes

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New Zealand Battery project

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Energy hardship

The government is assessing options to address New Zealand’s dry year risk with 100% renewable generation. This includes assessing its initially preferred solution of pumped hydro at Lake Onslow.

Covid-19 has placed additional pressure on New Zealand households and businesses. Contact is actively working to minimise energy hardship.

What Contact is doing

Contact supports further analysis to address dry year risk. Multiple options exist that will require careful evaluation, including interruptible green hydrogen.

Contact is advancing the thinking on ThermalCo which appears to be a low capital, low cost and low risk solution

Contact is engaging with government in assessing potential options

Contact’s tikanga, pricing principles and proactive work with its customers who are struggling to pay their bills has resulted in reduced disconnections and bad debt.

Contact offers a range of payment options including weekly and fortnightly billing, pre-pay and price smoothing products.

Contact is working with industry through ERANZ on the EnergyMate programme and PowerCredits scheme in association with budget advisors and FinCap.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021 14 14

Key themes from the financial results

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Asset portfolio and trading
Gas availability expected Recent Mergers &
capability ensure support to remain an issue for the Acquisitions aligned
for the market at time of
market but Contact is to strategy
increased fuel risk
relatively well positioned
Key ESG KPI’s now
Equity raise was well Significant included with operational
Changes in depreciation
received and positions items no longer performance and getting same
reflect the expected
decarbonisation of our the business well for reported prominence
growth separately as financial performance
asset portfolio
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS

Profit of $187m, up $62m

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Profit ($m)

EBITDAF ($m)

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+107
553
446 43 0
119
21 34 22 21
Network costs
Customer tariff
+62
29 5 28 0 187 EBITDAFFY20 [Renewables] carbon costsGas and Contracted pricingsales managementWholesale channel fixed costsincome, Other EBITDAFFY21
7
107
125 1 2 3 4 5
Lower
Higher gas Improved Active Higher other
geothermal and carbon net pricing channel income and
generation costs to run from management lower
year on year thermal contracted with increased electricity
impacted by generation customers sales to transmission
4-yearly Te as network support fuel costs offset
Mihi outage costs constrained by higher
with lower
reduced market operating
hydro participants at costs
Fair value of generation
FY20 EBITDAF Depreciation Net interest Tax Share of financial FY21 profit a higher price
profit & Amortisation costs Associates instruments
EBITDAF restated to reflect the removal of significant items
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS

EBITDAF up by $107m

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Wholesale EBITDAF ($m) Customer EBITDAF ($m)
+102
+6
527 12
47
426
132 30
77 0 2 56
50
4
18
Electricity gross
margin
Price recovery
Electricity cost
inflation
FY20 Generation Total Trading, FY21
costs contracted merchant
FY20 Electricity Electricity Other Opex FY21
(including revenue revenue volumes prices products
acquired and losses
generation)
Refer to slides 18 - 20 Refer to slide 21
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*Simply and Western included within Wholesale EBITDAF

*Other products includes retail gas and broadband gross margins

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Corporate / unallocated costs ($m)
0
-30 -30
FY20 FY21
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FY20 restated to include Holiday Act expense ($5m) after the removal of Significant items

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS: WHOLESALE BUSINESS

Generation costs

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----- Start of picture text -----

Electricity generated or acquired (GWh)
9,040
8,858
Acquired 335 554
Thermal 1,439
1,673
Hydro 3,752
3,698
Geothermal 3,333
3,114
FY20 FY21
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*Thermal includes tolling of ~261GWh FY20 and ~312GWh FY21

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Electricity generated or acquired costs ($m)
+77
381 381
65 65
Acquired
304 304
24 Gas storage
38 38 Carbon costs
41
22
24
Thermal 215 Gas and diesel
157 125
90
Electricity and gas
40 36 transmission and levies
Renewable
108 101
89 91 Other operating costs
Generation Cost Generation Cost
type type type type
FY20 FY21
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Hydro generation down 53GWh on FY20 (-1%), 202GWh (-5%) below mean year expectations. Geothermal volumes were 219GWh down on prior year following a significant 4-yearly outage programme in the period.

Renewable generation costs were down $7m on FY20. Transmission costs for renewable assets were down by $7m on FY20 as HVDC pole 1 costs ended.

Thermal generation costs were up by $58m due to higher gas (FY20 $6.7/GJ, FY21 $8.0/GJ) and carbon prices (FY20 $24/unit, FY21 $31/unit) and higher thermal generation in FY21.

Gas and carbon fuel costs up from $76/MWh in FY20 to $96/MWh (+26%)
Fixed costs relating to AGS and other operating costs were up by $2m each on the prior comparative period as the AGS facility expansion was commissioned on 30 September 2020

Increased acquired generation on the prior period as wholesale spot prices encouraged swaption calls.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS: WHOLESALE BUSINESS

Wholesale contracted revenue

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----- Start of picture text -----

Contracted revenue ($m)
+132
821
7
28
760GWh -68GWh
35
$45.9/MWh -$7.9/MWh
689
Other net income
2
26
Steam sales
45
Strategic Fixed Price sales 260
1,939GWh +682GWh
CFD sales 108 $134.1/MWh +$48.5/MWh
C&I netback 176 152
1,818GWh -353GWh
$83.8/MWh +$2.6/MWh
3,605GWh -136GWh
Customer Sales 332 $93.7/MWh 338 +$4.9/MWh
FY20 FY21
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Fixed price variable volume electricity sales to the Customer segment and C&I customers ended 489GWh lower than FY20 (- $42m), this was partially offset by higher prices (+$24m), reflecting higher wholesale prices over the three preceding years.
Strategic fixed price sales were down with lower sales to support NZAS due to the suspension of the 4[th] potline, partially offset by an increase in volume supplied to industry under a long-term PPA. Lower pricing reflects updated NZAS support contract from January 2021 (-$10m)
CFD sales volumes were up by 682GW as nearer term higher priced channels were prioritised (+$152m)
Steam revenue was up $2m on FY20 with an increase in geothermal steam sales secured (+77GWh) with steam tariffs on Te Rapa generation rising with carbon costs changes.
Other income was up by $5m as the $2m loss on market making in FY20 was not repeated and income from the Western Energy acquisition (1 April 2021) was realised ($2m)

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS: WHOLESALE BUSINESS

Wholesale trading and merchant revenue

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Trading EBITDAF ($m)
Long / short position (GWh)
Merchant generation
+47
• 43GWh increase in
Spot sales and buy
88 merchant sales volumes.
CFD settlement
919 The price received for this
Spot purchases and “long” generation was up by
41
sell CFD settlement $74.20/MWh on FY20.
164
862
91 • Inter-island separation
reduced from 6% to 5% on
dry South Island conditions,
-51
-76
919 this was offset by higher
$104.1/MWh $178.3/MWh absolute prices to increase
FY20 FY21 876 generation losses by $25m.
Trading revenue
Merchant sales: short-term sales channel available when the
spot prices exceed the opportunity cost of Contact generation.
8,040
LWAP / GWAP losses: locational price differences
7,904
between where electricity is generated and purchased.
-7,918 6.0% 5.0%
-1 ($6.4 / MWh) ($9.4 / MWh)
-8,040
0
FY20 FY21
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS: CUSTOMER BUSINESS

Customer business performance

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	FY20 FY21 Variance $m $m Tariff $m Tariff 859 841 249 (18) 7 10 5 (5) (6) (5) 1 862 841 249 (22) 4 7 7 (8) (9) 861 838 248 (23) 3 74 74 94 (0) 5 17 32 68 15 (2) 5 6 1 957 951 (7) 13 9 (3)	FY20 FY21 Variance $m $m Tariff $m Tariff 859 841 249 (18) 7 10 5 (5) (6) (5) 1 862 841 249 (22) 4 7 7 (8) (9) 861 838 248 (23) 3 74 74 94 (0) 5 17 32 68 15 (2) 5 6 1 957 951 (7) 13 9 (3)	FY20 FY21 Variance $m $m Tariff $m Tariff 859 841 249 (18) 7 10 5 (5) (6) (5) 1 862 841 249 (22) 4 7 7 (8) (9) 861 838 248 (23) 3 74 74 94 (0) 5 17 32 68 15 (2) 5 6 1 957 951 (7) 13 9 (3)	FY20 FY21 Variance $m $m Tariff $m Tariff 859 841 249 (18) 7 10 5 (5) (6) (5) 1 862 841 249 (22) 4 7 7 (8) (9) 861 838 248 (23) 3 74 74 94 (0) 5 17 32 68 15 (2) 5 6 1 957 951 (7) 13 9 (3)	FY20 FY21 Variance $m $m Tariff $m Tariff 859 841 249 (18) 7 10 5 (5) (6) (5) 1 862 841 249 (22) 4 7 7 (8) (9) 861 838 248 (23) 3 74 74 94 (0) 5 17 32 68 15 (2) 5 6 1 957 951 (7) 13 9 (3)
Revenue & Tariff1 ($m)	FY20	FY21		Variance
	$m	$m	Tariff	$m	Tariff
Electricity gross revenue	859	841	249	(18)	7
PPD not taken	10	5		(5)
Incentives paid	(6)	(5)		1
Net revenue (cash)	862	841	249	(22)	4
Capitalised incentives	7	7
Amortised incentives	(8)	(9)
Net revenue (P&L)	861	838	248	(23)	3
Gas revenue	74	74	94	(0)	5
Broadband revenue	17	32	68	15	(2)
Other income	5	6		1
Total revenue	957	951		(7)
Contract Asset (closing)	13	9		(3)

Tariff is $/MWh for electricity, Gas $/GJ and $ per month per customer connection for broadband

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EBITDAF ($m)
+6
56
50 6
Other income 5 9
Gas GM 9
123
Electricity GM 115
Broadband GM
0 -1
Other operating
-79 -81
expenses
FY20 FY21
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Gross Margin (GM) is Revenue less Cost of Goods [Networks, meters, levies, energy, carbon and broadband]

The electricity tariff changes balance the recovery of rising input costs, the competitive environment and regulatory pressures:

67% of our residential customers are on non-PPD products from 1 July.
Around 50% of customers received a price increase in FY21.
Ending Prompt Payment Discounts, - 50% reduction in PPD not taken.

Continue to smooth the impact of higher electricity costs for customers:

Combination of targeted retail price rises and a reduction in network costs from 1 April 2020 has seen electricity gross margins improve by 7% from FY20.
Retail energy tariffs - will need to rise to reflect elevated wholesale electricity, gas and carbon costs.
Strong growth in Broadband connections (+25k up on FY20).

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS

Operating costs up on acquisitions and improved financial performance

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Other operating cost movement ($m)
Underlying Invest in
Portfolio, performance and non-recurring
movement growth
2.1
211.0
5.8 0.4
3.8
9.0
201.0
5.0 3.6
FY20 FY20 Holidays Act Portfolio changes Incentives Net Cost Savings Broadband FY21
Insurance and general
cost inflation Underlying savings
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Portfolio performance and non-recurring

Holidays Act provision (-$5m) recognised in FY20 not repeated.
Operating costs acquired as part of the strategic transactions of Western Energy and Simply Energy ($3.6m).
Strong FY21 performance leading to higher incentive costs, FY20 incentives were reduced after consideration of COVID potential ($9m).
Benefits of the strategic acquisition of Western Energy on the well restoration provision offset by costs incurred to execute the refreshed strategy (nil).

Underlying movement

Strong credit collection and payment products saw a reduction in bad debt ($3.0m).
Digital journeys programme improved customer service efficiency

Broadband

Further incremental investment in broadband growth. Benefits of change in provider and further digitisation resulting in 87% productivity increase as measured by broadband connections per full time equivalent.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS: CARBON PERFORMANCE

Greenhouse gas reporting

kT of C02e emitted

Performance

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----- Start of picture text -----

1,646
1,511
1,238
1,045
Scope 1 986
908
920
1 647
Scope 2 1
1 600
Scope 3 524 1
317
260
FY19 FY20 FY21 FY26
target
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Scope 1 emissions up 125kT, predominantly from carbon emitted from thermal generation with high volumes in FY21 to support lower renewable generation
Carbon from swaption up over 300% as Contact made more calls under the swaption and a higher emissions intensity factor from the fuel mix (FY21: 300kT, FY20: 90kT)
Emissions from business travel and employee commenting down by 57%, enabled by our transformative ways of working programme

Targets

Our targets have been approved by the Science-based targets initiative (1.5 degree warming)
Reduce Scope 1 and 2 GHG emissions 45% compared to 2018 baseline by 2026
30% reduction of 2018 Scope 3 GHG emissions by 2026.

See slide 40 for detailed greenhouse gas emissions reporting

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS

Cash flow and capital expenditure

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SIB capital expenditure – accounting ($m)

	12 months ended 30 June 2021	12 months ended 30 June 2020	Comparison against FY20	Comparison against FY20
EBITDAF	$553m	$446m	↑	$107m
Working capital changes	$3m	$7m	↓	($5m)
Tax paid	($79m)	($70m)	↓	($9m)
Interest paid, net of interest capitalised	($43m)	($49m)	↑	$6m
SIB capital expenditure	($61m)	($51m)	↓	($10m)
Non-cash items included in EBITDAF	($2m)	$7m	↓	$9m
Operating free cash flow	$371m	$290m	↑	$81m
Operating free cash flow per share	50.2cps	40.4cps	↑	9.8cps
Cash conversion (OpFCF / EBITDAF)	67%	65%	↑	2%

EBITDAF up $107m on improved pricing across key channels
Working capital changes $5m unfavourable to FY20 due to the increased value of gas inventory and additional purchase of carbon in the period, including exercising the final fixed price option for carbon surrender in May 2021
Capital expenditure (cash) $61m in FY21, $10m more than FY20 due to statutory geothermal outage programme and initial payments for SAP upgrade programme

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150 128
102
100 78 75
60
52
50
0
FY16 FY17 FY18 FY19 FY20 FY21
Sources and uses of cash ($m) FY21
763 763
106 Cash movement
Operating
Free Cash Flow 371
267 Debt reduction
76 Growth investment
40 Strategic investments / acquisitions
Net proceeds from
(Western Energy and Drylandcarbon)
equity issue 392
274 Dividends paid
Sources Uses
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 RESULTS

Robust balance sheet.

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Closing net debt ($m) Face value of borrowings less cash

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----- Start of picture text -----

1,626
1,539
23 1,445
41
38
968 1,014
25 22 645
1,608 1,504 1,410 21
990 1,036
774
-5 -6 -3 -47 -44 -150
FY16 FY17 FY18 FY19 FY20 FY21
Lease obligations Borrowings Cash on hand
Interest rate (%)
Weighted average gross interest [1] on average borrowings
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----- Start of picture text -----

5.6%
5.4%
5.3% 5.1% 5.2% 5.2%
1,648 1,598 1,476
1,207
1,031 963
FY16 FY17 FY18 FY19 FY20 FY21
Average gross interest Average gross debt
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Borrowing maturities ($m) Net debt to EBITDAF (x)
Average tenor of 3.3 years as at 30 June 2021 Includes S&P adjustments (prior to FY20 AGS was treated as a
372 lease)
3.2 3.2 3.1
258 2.3
3.1 2.4
210 265 3.0 2.8
157 50 115 1.7
2.3
107 1.9
92
150 153 136 1.2
100 100 7 88
7 7 7 7 7 4
FY22 FY23 FY24 FY25 FY26 FY27 FY28 - FY16 FY17 FY18 FY19 FY20 FY21
FY29
Undrawn bank facilities Domestic NEXI
Smoothed Snapshot
Drawn bank facilities USPP
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Face value borrowings (excl. leases) decreased by $262m to $774m from 30 June 2020. The decrease is due to the inflow from the $400m equity raise in February 2020 less surplus held as cash.
Net debt has reduced by $981m since the end of FY16. Gearing decreased to 22.6% at 30 June 2021, down from 31.4% at 30 June 2020.
Average interest rate on gross debt has remained flat due to the repayment of more flexible, lower cost floating rate debt with the proceeds from the equity raise offsetting the lower rate environment.
A credit rating of BBB (net debt / EBITDAF <2.8x) continues to be targeted.
All bank facilities have now been converted to sustainability linked loans, and all our debt instruments are certified green.
Gross interest includes all interest on borrowings, bank commitment fees and deferred financing costs. Unwind of leases, provisions and capitalised interest not included.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FY21 DIVIDEND

Dividend for FY21 in line with performance

Ordinary dividends ($m) Declared

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----- Start of picture text -----

280 280 272
229
186 115 115 109
93
79
107 136 165 165 163
FY17 FY18 FY19 FY20 FY21
cps 26 32 39 39 35
61% 76% 82% 97% 72%
% pay-out of annual operating free cash flow
Interim dividend Final dividend
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Dividend for FY21 of 35 cents per share

Final dividend of 21 cents per share is imputed to 67% or 14 cents per share for qualifying shareholders. This represents a pay-out of 72% of FY21 operating free cash flow and 88% of the operating free cash flow over the preceding 4 financial years (FY17-FY20)
Record date of 27 August 2021; payment date of 15 September 2021.
The NZD/AUD exchange rate used for the payment of Australian dollar dividends will be set on 02 September 2021.

Dividend reinvestment plan

Operating free cash flow

Average operating cash flow for the preceding four financial years

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324 322 324 325 326
309
100%
80%
88% 83%
Dividend level
259 258 259 260 as a % of preceeding
247 261 4yr operating fcf
FY17 FY18 FY19 FY20 FY21 FY22
305 301 341 290 371 ➢ Annual operating
free cash flow
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Shareholders will have the option of full, partial or no participation. If a shareholder elects to participate they will remain in the plan at the same participation level until they elect to terminate or amend their participation level.
There will be no discount offered for the FY21 final dividend and Contact will have the right to terminate or suspend the plan at any time.
Dividend reinvestment plan (DRP) forms must be in by 30 August 2021 to confirm participation in the plan.
Trading period for setting price for DRP is 26 August 2021 to 01 September 2021. DRP strike price will be announced: 02 September 2021

Dividend policy range: 80-100% of average operating free cash flow for the preceding four years

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

2626

ASSUMPTIONS FOR NORMALISED EARNINGS

Normalised and expected FY22 EBITDAF assumptions

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----- Start of picture text -----

CFDs C&I
$139/ 641 $90/
MWh MWh
959
1,660
Retail Strategic fixed
0 50
$129/ $36/
MWh MWh
3,550 950
Contracted Uncontracted
ASX Futures $/MWh
188 At 27 July 2021
161
147 150 OTA
168 121 122 122 119 118 128 134 130 BEN
139
128 130
112 117 112
105 101 101 100 97
Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22
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FY assumptions that deliver expected & normalised EBITDAF for FY22

Channel choices maximise long term value¹ 1 Net price² driven by best commercial practices 2 x = Total	Channel choices maximise long term value¹ 1 Net price² driven by best commercial practices 2 x = Total
Strategic fixed price 1,000GWh $38/MWh $38m x =
CFDs 1,660GWh $139/MWh $231m x =
C&I 1,600GWh $104/MWh $166m x =
Retail 3,550GWh $129/MWh $458m x
Other income³ $50m
$943m

Hydrology & Asset availability optimise genera 3	tion 4 Total x = Access to and price of fuel* drives financials & risk position
	=
Hydro mean 3,900G	Wh $0/MWh -$0m x =
Geothermal average 3,250G	Wh $2/MWh -$7m x =
Thermal 800GW	h $123/MWh⁴ -$98m x =
Acquired 300GW	h $131/MWh -$39m x
	-$144m

Trading delivers value to m than offset locational losse 5	ore s Digitalisation & continuous improvement optimise fixed costs 6

Length⁵ $58m	Transmission/Storage -$60m
Location losses⁶ -$57m	Operating expenses -$220m
Total $1m	Total -$280m

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520
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943 Net Revenue

~~1~~ Trading -144 Fuel cost -280 Fixed costs

All volumes are at the Grid Exit Point (GXP) 2. Net price is equal to tariff less pass-through costs (network, meters and levies) /MWh
Steam sales, retail gas gross margin, other income 4. Gas price of $8.4/GJ, carbon price of $37/unit and thermal portfolio heat rate (11.4GJ/MWh)
Length of 440GWh p.a. assumed 6. Locational losses of 5.6% on spot purchases and settlement of CFDs sold at a wholesale price of $125/MWh

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

Fuel is natural gas and carbon costs

GUIDANCE

Strong delivery in FY21. Capability and capacity to be added in FY22.

	FY21 Guidance	Result	FY22 Guidance	Guidance commentary
Other operating costs	$200 – 210m	$211m	$215-225m	Additional capacity and capability added to accelerate the delivery of the strategy. SIB capex will support higher asset availability and output as well as a SAP systems upgrade
Stay in business capital expenditure (cash)	$55 – 60m	$61m	$95-105m
Cash spend (‘Totex’)	$255 – 270m	$272m	$310 – 330m
Depreciation and amortisation	$215 – 225m	$249m	$265 – 275m	Accelerated depreciation on thermal assets in line with expected useful lives and decarbonisation goals
Net interest (accounting)	$45 – 50m	$50m	$30 – 40m
Cash interest (in operating cash flow)	$40 – 45m	$43m	$20 – 30m
Cash taxation	$75 – 85m	$79m	$85 – 95m	Taxation paid up to reflect strong FY21 financial performance
Corporate costs	-	$30m	$33m	ICT costs previously included in Customer now in Corporate
Target ordinary dividend per share	35 cps	35 cps	35 cps	Pay-out in line with dividend policy
Geothermal volumes	3,100GWh	3,114GWh	3,250 GWh	Minor geothermal safety programme outage

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

Progress on Strategy

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

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Our strategy to lead NZ’s decarbonisation

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Strategic Grow

theme demand Objective Attract new industrial demand with globally competitive renewables

Grow renewable development Build renewable generation and flexibility on the back of new demand

Decarbonise Create outstanding our portfolio customer experiences Lead an orderly transition to renewables meet more of our customers’ needs

Create NZ's leading energy and services brand to meet more of our customers’ needs

Enablers

ESG : create long-term value through our strong performance across a broad set of environmental, social and governance factors

Operational excellence : continuously improving our operations through innovation and digitisation

Transformative ways of working : create a flexible and high-performing environment for New Zealand’s top talent

Outcomes

Growth

Pivot our business to a new growth era that captures the value unlocked by decarbonisation

Resilience

Deliver sustainable shareholder returns, aligned with our ESG commitment

Performance

Realise a step-change in performance, materially growing EBITDAF through strategic investments

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

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We have set ambitious measures of success across our strategic themes

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Grow Grow renewable Decarbonise Create outstanding demand development our portfolio customer experiences

Senior in-house capability to support industry electrification partnerships by 2021

100 MW of new commercial Metrics & and industrial demand by 2025 measures

Identified 300+ MW of marketbacked demand opportunities in the lower SI by end of 2024 (e.g., hydrogen)

Tauhara online by mid 2023

Final investment decision on next renewable build (Wairākei, wind, and/or solar) by 2024

Decision on North Island battery by end of 2023, for delivery in 2024

Complete thermal review in 2021, and executed by the end of 2022

TCC decommissioned by end of 2023

Reduce Scope 1 and 2 GHG emissions 45% compared to 2018 baseline by 2026 ²

Top 10 ‘most trusted retailer’ by 2025[1]

650,000 customer connections by 2025

Cost to serve (CTS) < $120 per connection

75% of customer interactions through digital channels

100 MW demand response capacity by 2025

As per Colmar Brunton Rep Track report, 2021 ranked 44[th]
Science Based Targets Initiative (Sbti) target at 1.5 degrees.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

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Tracking to targets

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Grow demand

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Demand backed by strategic fixed price PPA (GWh)
New load contracted,
FY20 26 828 854 expected online in FY23
Terms agreed with
FY21 509 87 760 1,356 Genesis Energy
Additional long-term
agreements under
Terms agreed negotiation
Contracted
Operational
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Avoided carbon emissions (kTC02e)

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FY19 0 0
New industrial heat electricity
0
boilers rather than coal
FY20 30 0 30
Tolling arrangement
with Nova saw the most
FY21 35 22 57 efficient plants used
Electricity market
New demand
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

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Tracking to targets

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Grow renewable development

New geothermal development (MW)

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60
152
342
130
Consenting Underway
Consented
Under development
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Consenting for increased
generation on the Wairakei field
(incremental to current position)
Tauhara stage 1 under
development. Field is more
productive than envisaged.
Look to secure additional
geothermal consents on
operational fields
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New wind and solar development (MW)

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----- Start of picture text -----

0 Land access agreements signed
0 for up to 500MW of
wind generation potential
500 Assessment phase to follow
Consenting underway in FY22
500
Land access
Consenting underway
Consented
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

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Tracking to targets

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Decarbonise our portfolio

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----- Start of picture text -----

Demand flex Renewable
generation
13 83 83 81
6
MW Renewable %
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Expect renewable generation % to grow with investment and higher thermal fuel costs

Strong growth in our demand flex proposition – lowered the install cost and increased the sales network

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Scope 1 and 2 greenhouse Scope 3 emissions
gas (GHG) intensity
0.124 600
0.110 0.108 524
317
C02e/kWh kT of C02eT
FY19 FY20 FY21
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Scope 3 emission higher as Contact called generation under the swaption arrangement with Genesis which was run higher

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

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Tracking to targets

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Create outstanding customer experiences

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Growth Efficiency
477 484 481 2,194 2,197 2,332
Energy Connections
connections per CSR
000
51 CTS per 162 156 155
Telco
connection
connections 26
000 13
2019 2020 2021 2019 2020 2021
Continue to grow telco customer connections Continue to invest in data and digital journeys
Protecting the core energy base in a rising energy for our customers and people to improve
cost environment experience and efficiency
Prepare to launch new complementary products
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Value
3.4%
0.7%
% of revenue from
non energy products
FY19-21
Energy Non energy
1
-1
Gross margin from non- FY19 FY20 FY21
energy products ($m)
Broadband gross margin positive from FY22
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

Our operational plan: What you can expect in the next 18 months

H1-FY22

H2-FY22

H1-FY23

Strategic theme

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Grow Demand

Hydrogen registration of interest followed by request for proposals Advance data centre partnerships Engage on industrial electrification

Assess hydrogen position Build data centres Lock in major industrial user electrification

Develop hydrogen option Data centres online Commence boiler electrification

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Grow renewable development

Build Tauhara

Prepare further geothermal consents Secure solar partnership or add capability

Build Tauhara Further geothermal consenting Secure and consent wind sites

Complete Tauhara Tauhara phase II consent Secure solar consents Complete battery feasibility

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Decarbonise our portfolio

Complete thermal review and design principles for structure

Engage 3[rd] party to structure ‘ThermalCo’

Align future-state thermal structure Agree structure with owners and regulators Execute ‘ThermalCo’ and buy back PPAs

Prepare for end of TCC scheduled hours

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Create outstanding customer experiences

Launch time of use offer, with extension into EVs Implications of sale of Trustpower retail to Mercury Customer technology upgrade

Pilot launch of wireless broadband Investigate data driven energy monitoring commercial models Customer technology upgrade (cont.)

Pilot complementary products Customer technology upgrade (cont.)

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

37 37

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021 38 38

ASX FUTURES

ASX futures pricing in fuel risk over the next 12 months

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ASX electricity forward pricing ($/MWh)
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BEN OTA
Source: ASX Energy 12 July 2021
176
161
156 157
152
142
137 136 137 138
129 129 127 129 127
121 116 116 119 118 116
109
106 105 107
100 102
97
Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

CARBON REPORTING

Greenhouse gas emissions

Indicator
Unit
Target
FY19
FY20
FY21
Direct GHG emissions (Scope 1)
tC02e
45% reduction of 2018 Scope
1 and 2 emissions by 2026
(Absolute emissions reduction
target)
985,905
920,403
1,044,893
-
Stationary combustion
tC02e
984,903
920,403
1,044,536
-
Mobile combustion
tC02e
880
270
270
-
Mobile combustion – Simply Energy
tC02e
20
-
Mobile combustion – Western Energy
tC02e
38
-
Fugitive emissions
tC02e
122
4
29
Indirect GHG emissions (Scope 2)
tC02e
1,374
1,258
1,230
Sub-total Scope 1 and 2
tC02e
647,443
987,279
921,935
1,046,122
Indirect GHG emissions (Scope 3)
tC02e
259,118
524,314
317,384
600,389
-
Category 1 – Purchased goods and services
tC02e
30% reduction of 2018 Scope
3 GHG emissions from use of
sold products by 2026.
35,267
39,397
63,296
-
Category 2 – Capital goods
tC02e
6,536
18,052
40,521
-
Category 3 – Fuel and energy
tC02e
175,811
91,857
330,202
-
Category 4 - Upstream distribution and transportation
tC02e
628
14
26
-
Category 5 – Waste
tC02e
148
123
121
-
Category 6 – Business travel
tC02e
1,256
719
258
-
Category 7 – Employee commuting
tC02e
514
606
306
-
Category 11 – Use of sold products
tC02e
301,640
166,310
165,259
-
Category 13 – Downstream leased assets
tC02e
445
306
399
-
Category 14 – Franchise
tC02e
2,069
Total Scope 1,2 and 3 emissions
tC02e
906,561
1,511,081
1,239,319
1,646,511

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

OPERATIONAL DATA

Generation and sales position

Contact generation output sold to the national grid (GWh)

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----- Start of picture text -----

9,514
9,245
9,002 8,908
8,537 8,614 8,445 8,404
2,321
1,614 1,421
Thermal
generation 2,865 1,742 1,812 1,360 1,592
4,091 4,231
4,119 3,562 3,479 3,752 3,698
Hydro
4,058
generation
3,074 3,297 3,233 3,323 3,256 3,333 3,114
Geothermal
2,322
generation
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
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==> picture [468 x 379] intentionally omitted <==

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Electricity and generation sales position (GWh)
+181
9,040 9,040
8,859 8,859
Direct generationPool purchase 335 179 862 554 081 919
Merchant sales
Acquired generation
2,085
2,673
CFD gross sales
2,171
1,844 Sales to C&I
Spot generation 8,444 8,404
3,741 3,605
Sales to Customer
Generation Sales Generation Sales
FY20 FY21
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

GEOTHERMAL PERFORMANCE

Wairākei geothermal field mass take and efficiency

Geothermal fuel extracted at Wairākei vs consented (GWh)

Wairākei, Poihipi and Te Mihi conversion effectiveness (MWh per kT extracted)

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-3%
100
101% 100%
99% 99%
90 97% 98%
94%
80
70
60
50
40
30
20
10
0
FY15 FY16 FY17 FY18 FY19 FY20 FY21
% of geothermal fluid extracted Wairakei mass extracted
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==> picture [350 x 256] intentionally omitted <==

----- Start of picture text -----

+1%
-2%
31.1
30.1 30.1 30.5 30.1 30.5
29.3
FY15 FY16 FY17 FY18 FY19 FY20 FY21
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Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

OPERATIONAL DATA

Generation volumes: renewable generation down by 4% on FY20

Hydro generation 26 80 4,065 3,482 3,979 3,353	(GWh) Thermal generation (GWh) Te Rapa - spot Whirinaki Te Rapa - Direct generation Stratford Peakers TCC Otahuhu Inflows stored Spill 3,507 4,328 4,817 77 -28 -97 3,897 -975 -275 ~~-37~~ 3,442 FY18 -148 FY19 ~~-90~~ FY20 FY21 4,083 3,752 3,698 553 1,020 1,071 1,013 871 1,126 334 495 528 207 291 234 506 226 211 195 195 213 221 92 90 83 79 81 94 5 1,673 3 1 1,503 3 0 FY17 FY16 FY19 FY18 1,903 FY20 18 FY21 1,708 1,834 1,439	(GWh) Thermal generation (GWh) Te Rapa - spot Whirinaki Te Rapa - Direct generation Stratford Peakers TCC Otahuhu Inflows stored Spill 3,507 4,328 4,817 77 -28 -97 3,897 -975 -275 ~~-37~~ 3,442 FY18 -148 FY19 ~~-90~~ FY20 FY21 4,083 3,752 3,698 553 1,020 1,071 1,013 871 1,126 334 495 528 207 291 234 506 226 211 195 195 213 221 92 90 83 79 81 94 5 1,673 3 1 1,503 3 0 FY17 FY16 FY19 FY18 1,903 FY20 18 FY21 1,708 1,834 1,439	(GWh) Thermal generation (GWh) Te Rapa - spot Whirinaki Te Rapa - Direct generation Stratford Peakers TCC Otahuhu Inflows stored Spill 3,507 4,328 4,817 77 -28 -97 3,897 -975 -275 ~~-37~~ 3,442 FY18 -148 FY19 ~~-90~~ FY20 FY21 4,083 3,752 3,698 553 1,020 1,071 1,013 871 1,126 334 495 528 207 291 234 506 226 211 195 195 213 221 92 90 83 79 81 94 5 1,673 3 1 1,503 3 0 FY17 FY16 FY19 FY18 1,903 FY20 18 FY21 1,708 1,834 1,439	(GWh) Thermal generation (GWh) Te Rapa - spot Whirinaki Te Rapa - Direct generation Stratford Peakers TCC Otahuhu Inflows stored Spill 3,507 4,328 4,817 77 -28 -97 3,897 -975 -275 ~~-37~~ 3,442 FY18 -148 FY19 ~~-90~~ FY20 FY21 4,083 3,752 3,698 553 1,020 1,071 1,013 871 1,126 334 495 528 207 291 234 506 226 211 195 195 213 221 92 90 83 79 81 94 5 1,673 3 1 1,503 3 0 FY17 FY16 FY19 FY18 1,903 FY20 18 FY21 1,708 1,834 1,439
			226 92	211	1503
			1,020 495	1,071 528	1,013 207 195 83 5 ,	871 291 195 79 3 1,439

~~-112~~ ~~-209~~	-28 -97 -275 ~~-37~~ -148 ~~-90~~
Total inflows FY16 FY17
		Te Rapa - spot Whirinaki Te Rapa - Direct generation Stratford Peakers TCC Otahuhu FY17 FY16 FY19 FY18 FY20 FY21	FY17	FY18

Geothermal generation was 219GWh lower than FY20 following the 4-yearly statutory Te Mihi outage in the period and an extended outage required on process safety improvements required at the Te Huka binary plant.

Hydro generation was 202GWh below mean (3,900GWh) in FY21, 53GWh lower than FY20.

Thermal generation volumes were 235GWh higher than FY20 as a result of the arrangement to toll gas from Nova Energy (FY20: 239GWh, FY21: 278GWh)

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

OPERATIONAL DATA

Plant availability

Hydro
	Net capacity (MW)	Availability (%)	Capacity factor (%)	Electricity output (GWh)	Pool revenue ($/MWh) ($m)
FY17	784	92%	52%	3,562	47	169
FY18	784	95%	51%	3,479	78	271
FY19	784	97%	62%	4,231	123	521
FY20	784	92%	54%	3,752	90	338
FY21	784	84%	54%	3,698	167	617

Geothermal

	Net	Availability	Capacity	Electricity	Pool revenue	Pool revenue
	capacity	(%)	factor	output
	(MW)		(%)	(GWh)	($/MWh)	($m)
FY17	429	91%	86%	3,233	55	177
FY18	425	96%	89%	3,323	80	267
FY19	425	92%	87%	3,256	133	434
FY20	425	95%	89%	3,333	99	330
FY21	425	89%	84%	3,114	175	546

Taranaki combined cycle (TCC)

Peakers (including Whirinaki)

Te Rapa (spot generation only)

Net capacity (MW) Availability (%) Capacity factor (%) Electricity output (GWh) Pool revenue ($/MWh) ($m)	Net capacity (MW) Availability (%) Capacity factor (%) Electricity output (GWh) Pool revenue ($/MWh) ($m) FY17 360 95% 16% 495 73 36 FY18 360 87% 17% 530 116 62 FY19 360 79% 7% 212 192 41	Net caacit Availability (%) Capacity factor Electricity outut Pool revenue
		py (MW) (%) p (GWh) ($/MWh) ($m)
FY17 377 90% 31% 1,021 64 65		FY17 41 98% 63% 226 58 13
FY18 377 68% 32% 1,071 102 110		FY18 41 87% 59% 211 94 20
FY19 377 63% 31% 1,031 115 117		FY19 41 96% 54% 195 160 31
FY20 377 88% 26% 870 120 104	FY20 360 88% 9% 295 162 48	FY20 41 98% 51% 184 106 21
FY21 377 89% 34% 1,126 193 217	FY21 360 92% 8% 249 230 54	FY21 41 93% 58% 208 174 37

Availability Factor calculation includes all station outages (Planned, Maintenance, Forced) but does not consider deratings.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

OPERATIONAL DATA

Fuel storage movements

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Hawea storage (GWh)
CLOSING STORAGE
257 90
152
166
152 175
27 53 244
159 351
294
229
103
Inflows 277 174 299
231
252
216 257
152 159 152 175
Opening storage 104 103 90
27 53
-140 -146
Releases -228 -246 -214 -237
-299 -282 -302
-412
1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21
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Gas storage (PJ)
CLOSING STORAGE
7.5
4.5
6.1 5.8
Opening Storage 7.7 7.5 4.5
6.1
1.7
Net extraction (injection) -0.2 -0.3
-3.0
FY18 FY19 FY20 FY21
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Source: NZX hydro

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

OPERATIONAL DATA

Contracted and stored gas

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Contracted gas volumes (PJ)
18.6 18.4
16.7
16.6 16.6 16.9
4.1
2.3 14.6
6.5 5.7
4.5
2.0
6.9 3.1
5.3
2.3
3.4 4.5
4.5
1.2 4.5
4.4 4.5 6.1
10.0
7.6 8.1
6.9
4.1 4.0 3.4
-0.2 -1.3
0.0
CY16 CY17 CY18 CY19 CY20 CY21 CY22
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Short-term gas Genesis Swap Maui - contingent on delivery Maui - notified

Pohokura - notified (Jan-Jun22) Pohokura - contingent on delivery (Jul-Dec22)

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Gas storage
monthly injections and extractions (PJ)
0.50
0.42
0.36
0.27
0.17 0.15 0.14 0.18 0.04
0.09 0.07
0.05
-0.06
-0.12 -0.10 -0.12
-0.02
-0.22
-0.26
-0.33
-0.40 -0.38 -0.40 -0.37
Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-
20 20 20 20 20 20 21 21 21 21 21 21
Gas injected Gas extracted
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Uses of gas (PJ)
0.2
Net extraction (injection) 0.3
3.1
Purchases 20.2
18.4 18.7
14.2
-1.7
-14.0 -14.9
Generation -17.5 -13.3
-3.1
-3.2 -3.1
Customer sales -0.2
-2.8 -0.3 -1.1
Wholesale sales
-0.2
FY18 FY19 FY20 FY21
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Storage balance at 31 December 2020 was 5.0PJ

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

FUEL OUTLOOK

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Contractual fuel position impacted by gas availability issues

==> picture [891 x 381] intentionally omitted <==

----- Start of picture text -----

Portfolio requirements for thermal generation (TWh)
Gas supply and demand FY22 (PJ)
Hydro variation >>
18.1
-3.3
3.4 Short Term (if in line with FY21)
-0.4
8.0 2.0 Storage
12.7 net movement
In addition to market
-2.9
-2.9 gas Contact has
Mean Thermal 4.7 access to effective
1.5 risk management
products at
-1.0
0.5 historically
-0.3 0.2 Contracted contracted rates if
12.7 required
Co-generation 4.3
Expected Geothermal Co- Hydro in Maximum "Extreme Mean "Mean" to Minimum
2022 generation "extreme thermal dry" to thermal "wet" year thermal
generation dry" year required "mean" required swing required Retail 2.8
(including Maximum year swing
losses) thermal
Swap return 0.9
required
Mean Year FY22
demand Position
Hydro generation in FY12
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Hydro generation in FY12

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

NON-GAAP PROFIT MEASURE

Reconciliation between Profit and EBITDAF

EBITDAF is Contact’s earnings before interest, tax, depreciation and amortisation, and changes in fair value of financial instruments.

The adjustments from EBITDAF to reported profit and movements on FY20 are as follows:

EBITDAF is commonly used in the electricity industry so provides a comparable measure of Contact’s performance.
Reconciliation of statutory profit back to EBITDAF:
Depreciation and amortisation: Increased by $29m (13%) on FY20 primarily resulting from the review of Ōhaaki plant, Wairākei and TCC opening hours.

	12 months ended 30 June 2021	12 months ended 30 June 2020	Variance on prior year	Variance on prior year
			$m	%
Profit	187	125	62	50%
Depreciation and amortisation	249	220	(29)	(13%)
Change in fair value of financial instruments	(7)	-	(7)	700%
Net interest expense	50	55	5	8%
Tax expense	74	46	(28)	(61%)
EBITDAF	553	446	107	24%

Net interest expense: Reduced by $5m (8%) over FY20 lower average borrowings post equity raise and coupled with lower interest rate as well as the capitalisation of interest relating to the Tauhara geothermal project (FY21 $8m), a $2m increase against FY20.
Tax expense for the period was $28m up following higher operating earnings with higher depreciation partially offset by lower net interest expense. Tax expense for FY21 represents an effective tax rate of 28%. The effective tax rate for FY20 was 27%.
Depreciation and amortisation, change in fair value of financial instruments, net interest and tax expense are explained on the right.

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

HISTORIC PERFORMANCE

Historical financial information

Unit FY17 FY18 FY19 FY20	FY21
Revenue $m 2,079 2,275 2,519 2,073	2,573
Expenses $m 1,578 1,794 2,001 1,622	2,020
EBITDAF $m 501 481 518 446	553
Profit/(loss) $m 151 132 345 125	187
Profit per share - basic cps 21.0 18.4 48.2 17.5	25.3
Operating free cash flow $m 305 301 341 290	371
Operating free cash flow per share cps 42.6 42 47.5 40.4	50.2
Dividends declared1 cps 26 32 39 39	35
Dividends paid $m 186 201 251 280	274
Total assets $m 5,455 5,311 4,954 4,896	5,028
Total liabilities $m 2,677 2,584 2,172 2,275	2,101
Total equity $m 2,778 2,727 2,782 2,621	2,927
Gearing ratio % 36 35 28 31	23

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

SEGMENTAL PERFORMANCE

Wholesale segment

	FY21	FY20	FY20	Reference number for Wholesale segment note (see following page)
	Twelve months ended 30 June 2021	Twelve months ended 30 June 2020
	Volume GWAP	Volume GWAP
Note: this table has not been rounded and might not add	GWh $/MWh $m	GWh $/MWh $m
Electricity sales to Customer	3,605 93.7 338	3,741 88.8 332		1
Electricity sales to C&I (netback) Electricitysales – Direct	1,762 82.3 145	2,092 80.3 168 79 105.1 8		2
	81 111.1 9
Electricity sales to C&I	1,844 83.6 154	2,171 81.2	176
CfDs – Tiwai support CfDs - Long term sales CfDs - Short term sales	734	828 581 676		3
	531
	1,408
Electricity sales - CFDs	2,673 109.7 293	2,085 72.9 152
Total contracted electricity sales	8,121 96.7 785	7,997 82.6 661
Steam sales	645 43.7 28	544 47.6 26		4
Other income Net income on gas sales Net income on electricityrelated services	5	0 1 2		5 6 7
	2
	1
Net other income	16	2
Total contracted revenue(1)	8,766 93.4 821	8,540 80.6 689
Generation costs Acquiredgeneration cost		8,523 (31.2) (266) 335 (113.9) (38)		8 9
	8,486 (38.3) (316)
	554 (116.8) (65)
Generation costs(including acquiredgeneration) (2)	9,040 (43.1) (381)	8,858 (34.3) (304)
Spot electricity revenue Settlement on acquiredgeneration		8,444 99.7 842 335 115.4 39		10 11
	8,404 176.4 1,482
	554 207.6 115
Spot revenue and settlement on acquiredgeneration(GWAP)	8,959 178.3 1,597	8,779 100.3 880
Spot electricity cost Settlement on CFDs sold	(5,367) (185.9) (998)	(5,833) (109.0) (636) (2,085) (97.8) (204)		12 13
	(2,673) (191.3) (511)
Spotpurchases and settlement on CFDs sold(LWAP)	(8,040) (187.7) (1,509)	(7,918) (106.0) (840)
Trading, merchant revenue and losses (3)	88	41

Wholesale EBITDAF(1+2+3)	527	426

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

SEGMENT NOTE TO OPERATIONAL PERFORMANCE

Wholesale segment key

Wholesale segment	Reference to detailed operating segment performance	Comment
Revenue C&I electricity – Fixed Price C&I electricity – Spot Wholesale electricity, net of hedging Electricity related services revenue Inter-segment electricity sales Gas Steam Other income	2
	2-spot	Spot sales are regarded as a pass-through and not reflected in performance reporting, any margin included in C&I netback
	3 + 10 + 13
	7
	1
	6	Revenue from wholesale gas sales, purchase cost in gas and diesel purchases
	4
	5
Costs Electricity purchases, net of hedging Electricity purchases – Spot Electricity related services cost Gas and diesel purchases Gas storage costs Carbon emissions Generation transmission and reserve costs Electricity networks, transmission and meter costs – Fixed Price Electricity networks, transmission and meter costs – Spot Gas networks, transmission and meter costs Other operating expenses	9 + 11 + 12
	2-spot	Spot sales are regarded as a pass-through
	7
	8 (less costs identified relating to 6)	Includes wholesale gas sales purchases (if any)
	8
	8
	8
	2
	2-spot	Spot sales are regarded as a pass-through
	8
	8 (less costs identified relating to 2)	C&I operating costs are included in the calculation of netback (2) and are excluded from generation operating costs

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

HISTORIC PERFORMANCE

Customer se ment g

Residential electricity	unit	FY18	FY19	FY20	FY21
Average connections	#	359,171	353,105	355,073	357,117
Sales volumes	GWh	2,549	2,491	2,532	2,520
Average usage	per ICP	7.1	7.1	7.1	7.1
Tariff	$/MWh	250.1	251.7	250.4	253.4
Network, meters and levies	$/MWh	-122.4	-122.1	-118.8	-113.5
Energy costs	$/MWh	-86.7	-89.5	-94.8	-100.2
Gross margin	$/MWh	41.0	40.2	36.8	39.7
Gross margin $ per ICP 291 283 262 280 Gross margin $m 104 100 93 100

SME electricity	unit	FY18	FY19	FY20	FY21
Average connections	#	57,309	55,020	55,033	49,679
Sales volumes	GWh	1,099	1,042	991	860
Average usage	per ICP	19.2	18.9	18.0	17.3
Tariff	$/MWh	224.1	226.8	229.3	231.7
Network, meters and levies	$/MWh	-108.0	-111.9	-114.5	-106.4
Energy costs	$/MWh	-84.8	-87.7	-93.0	-99.3
Gross margin	$/MWh	31.3	27.2	21.8	26.1
Gross margin $ per ICP 599 516 393 451 Gross margin $m 34 28 22 22
Customer EBITDAF FY18 FY19 FY20 FY21
Electricity Gross margin $m 139 128 115 123 Gas Gross Margin $m 15 14 9 9 Broadband Gross Margin $m 0 1 0 -0.8
Total Gross Margin	$m	154	144	125	131
Other income $m 4 4 5 6 Other operating costs $m -82 -81 -79 -81
Customer EBITDAF	$m	76	67	50	56
Corporate allocation (50%)¹ $m -12 -13 -15 -15
Retailing EBITDAF	$m	64	54	35	40
EBITDAF margins (% of revenue) % 6.7% 5.7% 3.7% 4.3%

Residentialgas	unit	FY18	FY19	FY20	FY21
Average connections	#	60,905	61,711	61,591	60,701
Sales volumes	TJ	1,600	1,605	1,577	1,495
Average usage	per ICP	26.3	26.0	25.6	24.6
Tariff	$/GJ	31.6	31.5	33.1	35.3
Network, meters and levies	$/GJ	-19.6	-18.4	-17.9	-17.7
Energy costs	$/GJ	-5.6	-5.9	-7.9	-8.6
Carbon costs	$/GJ	-0.7	-1.0	-1.4	-1.5
Gross margin	$/GJ	5.8	6.3	5.9	7.5
Gross margin $ per ICP 152 165 151 185 Gross margin $m 9 10 9 11
SMEgas	unit	FY18	FY19	FY20	FY21
Average connections	#	3,677	3,901	3,947	3,876
Sales volumes	TJ	1,300	1,492	1,425	1,313
Average usage	per ICP	353.5	382.6	361.0	338.8
Tariff	$/GJ	15.5	15.1	15.5	16.3
Network, meters and levies	$/GJ	-4.5	-5.5	-6.0	-7.9
Energy costs	$/GJ	-5.6	-5.9	-7.9	-8.6
Carbon costs	$/GJ	-0.7	-1.0	-1.4	-1.5
Gross margin	$/GJ	4.8	2.8	0.2	-1.6
Gross margin $ per ICP 1,689 1,068 72 -552 Gross margin $m 6 4 0 -2

Contact Energy / FY21 Full Year Results Presentation / 16 August 2021

Template

==> picture [101 x 49] intentionally omitted <==

Results announcement

(for Equity Security issuer/Equity and Debt Security issuer)

Updated as at 17 October 2019

Results for announcement to the market	Results for announcement to the market	Results for announcement to the market	Results for announcement to the market
Name of issuer	Contact Energy Limited
Reporting Period	12 months to 30 June 2021
Previous Reporting Period	12 months to 30 June 2020
Currency	NZD
Amount (000s)		Percentage change
Revenue from continuing operations	$2,573,000	24.1%
Total Revenue	$2,573,000	24.1%
Net profit/(loss) from continuing operations	$187,000	49.8%
Total net profit/(loss)	$187,000	49.8%
Interim/Final Dividend
Amount per Quoted Equity Security	$ 0.21000000
Imputed amount per Quoted Equity Security	$0.05444444
Record Date	27 August 2021
Dividend Payment Date	15 September 2021
	Current period		Prior comparable period
Net tangible assets per Quoted Equity Security	$3.18		$3.08
A brief explanation of any of the figures above necessary to enable the figures to be understood
Authority for this announcement
Name of person authorised to make this announcement	Kirsten Clayton, Company Secretary
Contact person for this announcement	Matthew Forbes, GM Corporate Finance
Contact phone number	+64 21 072 8578
Contact email address	[email protected]
Date of release through MAP	16/08/2021

Audited financial statements accompany this announcement.

Template Distribution Notice

==> picture [101 x 50] intentionally omitted <==

Updated as at 18 December 2019

Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer	Contact Energy Limited
Financial product name/description	Ordinary shares
NZX ticker code	CEN
ISIN (If unknown, check on NZX website)	NZCENE0001S6
Type of distribution (Please mark with an X in the relevant box/es)	Full Year		X	Quarterly
	Half Year			Special
	DRP applies		X
Record date	27/08/2021
Ex-Date (one business day before the Record Date)	26/08/2021
Payment date (and allotment date for DRP)	15/09/2021
Total monies associated with the distribution1	$162,985,634.70 (776,122,070 shares @ $0.21 / share)
Source of distribution (for example, retained earnings)	Operating Free Cash Flow
Currency	NZD
Section 2: Distribution amounts per financial product
Gross distribution2	$0.26444444
Gross taxable amount3	$0.26444444
Total cash distribution4	$0.21000000
Excluded amount (applicable to listed PIEs)	N/A – Not a listed PIE
Supplementary distribution amount	$0.02470588
Section 3: Imputation credits and Resident Withholding Tax5
Is the distribution imputed		~~Fully imputed~~
		Partial imputation
		~~No imputation~~

1 Continuous issuers should indicate that this is based on the number of units on issue at the date of the form

2 “Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of Resident Withholding Tax ( RWT ).

3 “Gross taxable amount” is the gross distribution minus any excluded income. 4 “Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. “Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. This should include any excluded amounts, where applicable to listed PIEs.

4 “Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. “Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. This should include any excluded amounts, where applicable to listed PIEs. 5 The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please state imputation rate as % applied6	21%	21%
Imputation tax credits per financial product	$0.05444444
Resident Withholding Tax per financial product	$0.03282222
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)	0% - No discount
Start date and end date for determining market price for DRP	26/08/2021	01/09/2021
Date strike price to be announced (if not available at this time)	02/09/2021
Specify source of financial products to be issued under DRP programme (new issue or to be bought on market)	New issue
DRP strike price per financial product	Not available at this time
Last date to submit a participation notice for this distribution in accordance with DRP participation terms	30/08/2021
Section 5: Authority for this announcement
Name of person authorised to make this announcement	Kirsten Clayton, Company Secretary
Contact person for this announcement	Matthew Forbes, GM Corporate Finance
Contact phone number	+64 21 072 8578
Contact email address	[email protected]
Date of release through MAP	16 August 2021

6 Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

AI assistant

CONTACT ENERGY LIMITED — Annual Report 2021

64638_rns_2021-08-15_83ada74f-ae09-485d-a633-a661d36e370b.pdf

Contact Energy Limited – 2021 Full Year Results

ENDS

Contact delivers solid financial performance to support renewable generation investment

Highlights

Financial performance

Strategy in action

People

Outlook

-ends-

Additional information:

Contacts:

FY21 performance highlights

Solid financial performance supports continued investment to decarbonise New Zealand

Key strategic highlights from FY21

Key strategic highlights from FY21

National electricity demand

Hydrology and impact on generation mix

Short-term factors influencing price all sharply higher over the last 12 months

Retail competition remains intense

Change in customer connections (000s)

Topical regulatory matters

Key themes

What Contact is doing

Topical regulatory matters

Key themes

What Contact is doing

Key themes from the financial results

Profit of $187m, up $62m

Profit ($m)

EBITDAF ($m)

EBITDAF up by $107m

Generation costs

Wholesale contracted revenue

Wholesale trading and merchant revenue

Customer business performance

Operating costs up on acquisitions and improved financial performance

Portfolio performance and non-recurring

Underlying movement

Broadband

Greenhouse gas reporting

kT of C02e emitted

Performance

Targets

Cash flow and capital expenditure

SIB capital expenditure – accounting ($m)

Robust balance sheet.

Dividend for FY21 in line with performance

Ordinary dividends ($m) Declared

Dividend for FY21 of 35 cents per share

Dividend reinvestment plan

Operating free cash flow

Normalised and expected FY22 EBITDAF assumptions

FY assumptions that deliver expected & normalised EBITDAF for FY22

Strong delivery in FY21. Capability and capacity to be added in FY22.

Progress on Strategy

Our strategy to lead NZ’s decarbonisation

Enablers

Outcomes

Growth

Resilience

Performance

We have set ambitious measures of success across our strategic themes

Tracking to targets

Tracking to targets

Grow renewable development

New geothermal development (MW)

New wind and solar development (MW)

Tracking to targets

Decarbonise our portfolio

Tracking to targets

Create outstanding customer experiences

Our operational plan: What you can expect in the next 18 months

H1-FY22

H2-FY22

H1-FY23

Strategic theme

ASX futures pricing in fuel risk over the next 12 months

CONTACT ENERGY LIMITED Annual Report 2021