MERIDIAN ENERGY LIMITED — Management Reports 2021

Jan 13, 2021

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Rio Tinto confirms Tiwai exit in December 2024

14 January 2021

Meridian Energy confirms that global mining giant Rio Tinto has accepted new contract terms offered by Meridian, effective from today, 14 January 2021 and will now be continuing operations at the NZAS[1] Tiwai Point Aluminium Smelter through to December 2024.

Meridian Chief Executive, Neal Barclay says, “We have worked hard to provide solutions that we believe were of lasting value to the Smelter and acceptable to our shareholders. We’re pleased that Rio Tinto has accepted this offer, which will now provide certainty for the Southland community.”

“As a company we have planned for the eventual exit of the Tiwai Smelter. We’re excited about the opportunities that we have to accelerate decarbonisation, and we’re actively developing new growth opportunities.”

Chief Executive Neal Barclay will host a teleconference on Monday 18 January 2021. Details of the call will be provided later this week.

1NZAS is a joint venture between Rio Tinto (79.36%) and Sumitomo Chemical Company Limited (20.64%).

ENDS

Neal Barclay Chief Executive Meridian Energy Limited

For investor relations queries, please contact: For media queries, please contact: Owen Hackston Polly Atkins Investor Relations Manager Senior Communications Specialist 021 246 4772 021 174 1715

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PG 1

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NZAS EXTENDED EXIT ANNOUNCEMENT Meridian business update

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14 JANUARY 2021

Today’s announcement

• Rio Tinto and Meridian Energy have reached agreement on the future of the NZAS[1] Tiwai Point aluminium smelter

• An amended contract will take effect from 14 January 2021, lasting through until 31 December 2024, with the following terms:

  • 400MW with only terminal FM termination rights[2]

  • 172MW with an NZAS 6 month termination right[2] (available from 1 January 2022)

  • Pricing is confidential

  • No electricity price linkages to aluminium pricing

  • No CPI-linked electricity price increases

  • Force majeure provisions reflect shortened contract term

  • Meridian has NZAS contract support from Contact

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1NZAS is a joint venture between Rio Tinto (79.36%) and Sumitomo Chemical Company Limited (20.64%)

2In the event of a terminal force majeure event, both parties have a 3 month right to termination.

Meridian has a seven day termination right in the event any preceding quarter’s consumption by NZAS is below minimum profile amounts. These termination rights are similar to the previous version of the contract

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Timeline

Revised NZAS contract

400MW

no termination right (except terminal force majeure)

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----- Start of picture text ----- NZAS termination right with 6 months notice (terminal FM also applies)14 Jan 1 Jan 1 Jan 1 Jan 31 Dec2021 2022 2023 2024 2024final design consenting procurement buildScoping and feasibility executiondevelop further opportunities Datagrid (60MW to 100MW), execution of other opportunitiesfeasibility scoping potential execution----- End of picture text -----

172MW

Meridian portfolio response Swaption

CUWLP

NI battery

Process heat

IT infrastructure

Green hydrogen

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Clutha Upper Waitaki lines project

• Thermal upgrade of the Cromwell–Twizel section of the Roxburgh–Twizel 220 kV line completed

• Duplexing of the Roxburgh–Livingstone section of the Roxburgh–Islington 220 kV line scheduled through 2021 and Q1 2022

• Project targeted for completion by May 2022

Source: Transpower

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Summary

• Today’s agreement now provides clarity for New Zealand

• No change to Meridian’s dividend policy, noting flexibility of payout

• Half year results announcement on 24 February 2021 will clarify interim dividend

• Meridian will now reconsider balance sheet flexibility and the timing of Harapaki wind farm build

• Clutha Upper Waitaki transmission work will enable full export out of Southland before Tiwai closure

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• Solutions to operational constraints on the HVDC will come into the market before Tiwai closure

• A December 2024 date for Tiwai closure allows Meridian to unlock future optionality on new electricity load

• Feasibility of process heat, IT infrastructure and green hydrogen all appear positive

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Disclaimer

The information in this presentation was prepared by Meridian Energy with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the information. In addition, neither the company nor any of its directors, employees, shareholders nor any other person shall have liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it.

This presentation may contain forward-looking statements and projections. These reflect Meridian’s current expectations, based on what it thinks are reasonable assumptions. Meridian gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or NZX or ASX listing rules, Meridian is not obliged to update this presentation after its release, even if things change materially.

they are not defined by GAAP or IFRS, Meridian's calculation of these measures may differ from similarly titled measures presented by other companies and they should not be considered in isolation from, or construed as an alternative to, other financial measures determined in accordance with GAAP. Although Meridian believes they provide useful information in measuring the financial performance and condition of Meridian's business, readers are cautioned not to place undue reliance on these non-GAAP financial measures.

The information contained in this presentation should be considered in conjunction with the company’s financial statements, which are available at: www.meridianenergy.co.nz/investors

All currency amounts are in New Zealand dollars unless stated otherwise.

This presentation does not constitute financial advice. Further, this presentation is not and should not be construed as an offer to sell or a solicitation of an offer to buy Meridian Energy securities and may not be relied upon in connection with any purchase of Meridian Energy securities.

This presentation contains a number of non-GAAP financial measures, including Energy Margin, EBITDAF, Underlying NPAT and gearing. Because

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