Contact Energy changes reporting segments

8 February 2017

Contact Energy changes reporting segments

Contact Energy Limited (Contact) today advises of changes to its segment reporting
structure to be included in the financial results for the six months ended 31 December 2016.
These results will be released prior to the market opening on Monday, 13 February 2017.

Contact will replace the previous Integrated Energy and Other segments with Customer and
Generation segments. The change ensures the allocation of volume risk between the two
segments is visible and enhances performance comparison metrics.

The key changes include:
• The inclusion of an electricity transfer price for volumes sold by the Customer segment
• Gas purchases for retail sales included in the Customer segment
• Steam revenue included in the Generation segment
• LPG and meter revenue included in the Customer segment

There is no change to the reported profit in any periods, only movements between
segments. In preparation for the upcoming results announcement, Contact has provided the
previous financial year’s segment data in the revised format as an appendix to this release.

ENDS

Investor enquiries: Matthew Forbes +64 21 072 8578

Appendix – revised segment note format

$m
GenerationCustomerEliminationsTotalGenerationCustomerEliminationsTotal
Mas s m arket electricity
- 481 - 481 - 903 - 903
Com m ercial & Indus trial (C&I) electricity
1
- 249 (6) 243 - 520 (19) 501
Wholesale electricity
1
276 - 1 277 539 - 4 543
Inter-segment electricity sales
337 - (337) - 660 - (660) -
Gas
1 35 - 36 1 62 - 63
LPG
- 63 - 63 - 117 - 117
Steam
16 - - 16 25 - - 25
Total revenue
630 828 (342) 1,116 1,225 1,602 (675) 2,152
Other income (including liquidated damages)
2 2 - 4 6 5 - 11
Total revenue and other income
632 830 (342) 1,120 1,231 1,607 (675) 2,163
Electricity purchases
1
(263) - 5 (258) (528) - 15 (513)
Inter-segment electricity purchases
- (337) 337 - - (660) 660 -
Gas purchases
(70) (8) - (78) (108) (14) - (122)
LPG purchases
- (38) - (38) - (68) - (68)
Electricity networks, transmission, levies &
meter costs
(20) (310) - (330) (41) (596) - (637)
Gas networks, transmission, levies & meter
cos ts
(8) (18) - (26) (12) (33) - (45)
Other operating expenses
(64) (68) - (132) (121) (126) - (247)
Carbon emissions
(4) - - (4) (7) (1) - (8)
Total operating expenses
(429) (779) 342 (866) (817) (1,498) 675 (1,640)
EBITDAF
203 51 - 254 414 109 - 523
1. For internal reporting purposes the fixed price agreed for contracts for differences (CfDs) sold to C&I customers is treated as C&I electricity
revenue while the spot price component is classified as electricity purchases. The CfD treatment grosses up revenue and expenses. For
financial reporting purposes these CfDs are settled net within wholesale electricity revenue.
Audited Year ended 30 June 2016Unaudited 6 months ended 31 Dec 2015
Contact Energy Limited / 2