Contact Energy – HY17 Results and Half Year Report

Contact Energy Limited
Results for announcement to the market
Basis of Report Unaudited
Reporting Period 6 months to 31 December 2016
Previous Reporting Period 6 months to 31 December 2015
Amount ($m) Percentage
change
Operating Revenue and Other Income 1,039 -7.2%
Earnings Before Net Interest Expense, Tax, Depreciation,
Amortisation, Change in Fair Value of Financial Instruments and
Other Significant Items (EBITDAF)
261 2.8%

Profit/(loss) After Tax 96 182.8%
Underlying Profit
1
82 12.3%
Basic Earnings Per Share (Cents)

13.5 184.9%
Diluted Earnings Per Share (Cents) 13.3 185.3%
Underlying Profit Per Share (Cents)
1
- Basic 11.5 15.0%
Net Tangible Assets Per Share (Dollars) 3.20 -2.1%

Distribution

Equivalent
amount per
security
Imputed amount per security
Cash dividend $0.11 $0.08

Record Date 28 February 2017
Dividend Payment Date 17 March 2017

Comments:
1. Underlying Profit and Underlying Profit per Share
exclude significant items that do not reflect the ongoing
performance of the Group. This is a non-statutory
measure.

---

Half Year Report 2017

Contact Energy Limited | Notes to the Financial Statements
2
Transforming the Customer business
Contact’s focus has been on delivering products
which provide customers with greater choice,
certainty and control as well as utilising data, real-time
analytics and customer feedback to drive
improvements in customer experience. Pleasingly, this
progress has been reflected in an improvement in our
key customer advocacy measure, Net Promoter Score,
to +12, up from -3 in 1H16. The Customer business
recorded a $6 million improvement in EBITDAF on the
back of our operational focus.
Mass market electricity sales volumes were down by
110 GWh as average electricity usage decreased due to
above average temperatures and newly acquired
business customers who are lower users of energy
than those replaced. Average customer numbers were
down by 1,100 on 1H16 due to the continued elevated
level of competition, including price discounting by
large competitors and benign wholesale conditions
that supported offerings by new entrants. The
reduction in mass market sales was largely offset by
increased commercial and industrial sales.
We have recently completed the simplification and
migration of our core IT systems to the Cloud which,
amongst other things, will make it easier for us to
deliver services through lower cost mobile and online
channels. We have also embedded data and analytics
capability to better understand our customers' needs,
with real-time customer insight improving the
customer experience as well as lowering future
operating costs.
Our systems and large customer base provide us with
many opportunities to offer more than just our current
service. We are continuing to explore opportunities
for battery and solar products with customer trials in
progress and continue to be a strong voice for the
customer in a range of regulatory consultations. Our
support of the adoption of electric vehicles in New
Zealand continues through the conversion of our own
fleet and as a partner of the Electric Highway.
However, we operate in a competitive market and it
remains our challenge to find products and services
which allow us to leverage our investments and scale
to offer a unique service.
Chief Executive’s
Review
Tena koe (Greetings),
The first half of the 2017 financial
year (1H17) saw Contact modestly
grow earnings with continued
improvements in retail operating
performance and an increase in the
proportion of renewable generation.
In a competitive market, delivering
strong operational performance and
providing value for customers and
shareholders remain the focus.
Contact reported a statutory profit for the six
months ended 31 December 2016 of $96 million;
$212 million higher than the prior corresponding
period due to improved operating earnings and no
repeat of the prior period impairments. EBITDAF
increased by $7 million, or 3%, to $261 million while
underlying profit after tax increased by $9 million or
12% to $82 million. Free cash flow for the period
remained strong at $141 million, a $62 million
reduction over 1H16, which included a tax credit
driven by the closure of the Otahuhu power station
together with increased extractions from gas storage
and the late collection of FY15 debtors favourably
impacting working capital movements.
The Board has resolved to maintain the interim
dividend at 11 cents per share (1H16 11 cents per
share). imputed to 8 cents per share. This
represents a pay-out ratio of 96% of Contact’s
underlying profit. Contact remains committed to
maintaining an investment grade credit rating and
continued to reduce gearing levels with a $21 million
reduction in debt during the period. Continued
strong cash flow has Contact on target to return the
net debt to EBITDA ratio to the preferred 2.6 to 3
times range.
EBITDAF, up 3% from $254m on
improved operational performance
$261m
Profit for the period, $212 million higher
than 1H16 due to prior
period impairments
$96m
$4m
Or 3% reduction in other operating
expenses over 1H16
Chief Executive's Review | Contact Energy Limited
Financial performance comparisons are
against 1H16 unless specifically stated
3

Competitive and reliable energy,
delivered at a reduced cost
National electricity demand declined by 2% in
1H17 primarily driven by lower consumption in the
residential sector and lower irrigation demand.
Warmer temperatures and above average rainfall
both contributed to the reduced electricity demand
and also resulted in higher hydro generation, lower
wholesale electricity prices and limited price volatility.
The flexibility of our portfolio and low levels of
contracted gas were a real asset over the past six
months. With high levels of renewable generation
available in the market, we were able to reduce
generation from our thermal plants and purchase
lower cost energy from wholesale market
participants. This trading strategy, combined with
reduced electricity purchases and careful management
of costs resulted in a $1 million improvement in EBITDAF
from our Generation business.
Contact's strong cash flow has us on target to return
the net debt to EBITDA ratio to our preferred 2.6–3
times range.
We take safety seriously
Safety is top of mind in everything we do at Contact
and is critical to the ongoing sustainable operation
of our business. Done well, it creates value. It helps us
perform reliably, is a reflection of business quality,
makes us a strong employer brand, enables an
engaged workforce, and has a positive effect on the
bottom line. Our process safety programme, Safe to
Run, helps us monitor and measure how well our
systems are performing at keeping hazards away
from our people, assets and the environment. At its
heart process safety is about engagement and
creating a culture that empowers people to play a
meaningful role in identifying safety risks and coming
up with ways to manage them.
The advance of our journey towards a generative
safety culture is a priority for Contact, and the results
of our latest people survey showing positive
movement across the majority of measures that we
track is pleasing. This improvement is also being
seen through our lag performance measure, Total
Recordable Injury Frequency Rate (TRIFR) which
indicates we are on the right track with a strong 1H17
TRIFR result of 1.2 with over 1.6 million hours worked
and 2 people unfortunately sustaining low severity
injuries, an improvement from 3.1 that was recorded
in 1H16.
Looking forward
Our strategy remains centred on optimising the
Customer and Generation businesses to deliver
strong cash flows which are ultimately for distribution
to shareholders.
In the last six months we have moved to report the
performance of our Customer and Generation
businesses seperately. The focus this brings will be
used to monitor and drive improved performance in
both businesses and ultimately deliver value for
shareholders.
We expect our operational improvement initiatives to
continue to reduce our costs. In time our large
customer base and world class systems will provide
an attractive opportunity for partners to join us in
providing value for our customers beyond energy as
we continue our evolution from an essential services
business to a broader ‘living services’ business.
We will continue to focus on the structural efficiency
of the electricity supply market. This includes the
commencement of the 80MW financial agreement
with Meridian Energy to support the continued
operation of the Tiwai aluminium smelter. Our
portfolio of long life generation assets will continue
to lower the cost of energy through fuel substitution,
electricity trading and gains realised through the
execution of our continuous improvement programme.
Thank you for your continued support.
Contact reported a statutory profit
for the six months ended 31
December 2016 of $96m; $212m
higher than the prior corresponding
period. EBITDAF increased by $7m
or 3% to $261m while underlying
profit after tax increased by $9m or
12% to $82m. Free cash flow for the
period remained strong at $141m,
with the $62m reduction over 1H16
primarily related to the prior year
tax credit and working capital
movements. Strong free cash flow
enabled Contact to reduce
borrowings by $21m while
maintaining a stable interim
dividend of 11 cents per share.
Our performance
for the period
Dennis Barnes
Chief Executive Officer
ProfitUnderlying
Profit
EBITDAFFree cash
flow
Declared
dividends
300
250
200
150
100
50
0
-50
-10 0
-150
1H171H16
$m
THE LAST FIVE YEARS IN REVIEWUnit1H131H141H151H161H17
Revenue and other income$m 1,213 1,14 8 1,24 0 1,120 1,039
Expenses$m 960 884 983 866 778
EBITDAF$m 253 264 257 254 261
Profit$m 88 112 51 (116) 96
Underlying profit$m 92 97 76 73 82
Underlying profit per sharecps 1 2 .7 13.2 10.4 10.0 11.5
Free cash flow$m12812316 4 203 141
Free cash flow per sharecps17. 616.822.2 2 7.7 1 9 .7
Dividends declaredcps 11.0 11.0 11.0 11.0 11.0
Total assets$m 6,097 6,271 6,139 5,72 6 5,561
Total liabilities$m 2,60 0 2 ,73 2 2 ,6 17 2,848 2 ,742
Total equity$m 3,497 3,539 3,522 2,878 2,819
Gearing ratio%2928283736
Our Performance | Contact Energy Limited
Contact Energy Limited | Chief Executive's Review5
4

($m)
1H131H141H151H161H17
250
200
150
100
50
0
FREE CASH FLOW
Free cash flow for the period remained strong at
$141m, with the $62m reduction over 1H16.
Tax paid was $33m higher in 1H17 due to a tax credit
relating to Otahuhu Power Station closure in 1H16.
$22m unfavourable working capital movement due
to higher gas extractions in 1H16, late collection of
FY15 debtors in 1H16 and payment in 1H17 for
Stratford supercore that was accrued at FY16.
($m)
1H131H141H151H161H17
100
80
60
40
20
0
UNDERLYING PROFIT
Underlying profit of $82m, was up $9m (12%) from
1H16 reflecting the increase in EBITDAF.
Depreciation remained steady as the closure of
Otahuhu and lower depreciation from TCC on the
back of lower thermal generation was offset by
accelerated depreciation on geothermal wells.
Net interest costs reduced by $5m on lower
average borrowings and a 0.4% reduction in average
interest costs.
Significant items excluded from underlying profit in
the current period were the change in the fair value
of financial instruments (+$30m), ICT change and
transition costs ($7m), an estimate to address
historic non-compliance with the Holidays Act
($5m), and $1m on the sale and closure of the
Otahuhu power station. The tax expense associated
with these significant items was $5m.
1H131H141H151H161H17
300
250
200
150
100
50
0
($m)
EBITDAF
The Customer segment EBITDAF was up $6m (12%)
as lower purchase costs more than offset the decline
in mass market sales volumes and reduced netback
as a result of selling more electricity to C&I customers
which are at a lower margin.
Electricity purchase costs reduced $9m (3%) due to
lower sales volumes and a lower electricity transfer
price reflecting reductions in ASX settlement prices.
Netback was down $5m (1%) to $371m on lower mass
market sales volumes which was partially offset by a
higher unit netback for mass market customers and
an increase in sales to lower margin C&I customers.
LPG EBITDAF was up $3m on the combination of
lower product costs and higher sales volumes.
The Generation segment EBITDAF was $1m higher
than 1H16 as cost of energy, which reflects the total
operational costs of supplying the energy sold,
improved by $10m to $125m on lower thermal
generation as hydro conditions allowed increased
purchases of lower cost CfDs. The improvement in
cost of energy was offset by less revenue from
electricity purchases from the Customer business on
lower volumes and pricing.
Total other operating expenses decreased by $4m in
the first half of the financial year due to a reduction in
labour costs, reduced bad debt write-offs and lower
insurance costs.
1H131H141H151H161H17
5000
4000
3000
2000
1000
0
(GWh)
C&I salesMass Market sales
Total retail electricity sales volumes for 1H17 were
down 25 gigawatt hours (GWh) to 4,001 GWh on
reduced mass market sales volumes. Mass market
sales volumes were 5% lower than 1H16 during a
period with higher average temperatures which
reduced electricity demand. Customer numbers
were 1,100 on average lower in 1H16 on continued
price discounting by larger competitors and benign
wholesale conditions supporting new entrants. C&I
sales volumes were up 85 GWh on higher CfD sales
Lower sales volumes and a lower electricity transfer
price reflecting reductions in ASX forward prices saw
purchase costs reduced $9m (3%).
Netback margins
Total electricity and gas netback was down by $5m
(1%) to $371m on lower mass market sales volumes,
partially offset by an increase in sales to lower margin
C&I customers and a $4m reduction in operating
costs to serve our customers.
Mass market electricity netback was up $1/MWh as
Contact increased mass market tariffs by $6/MWh.
These increases were able to cover network costs
increases which were up by $4/MWh over 1H16. C&I
electricity netback was down by $2/MWh with the
prices on contracts of new customers tracking the
ASX futures prices down. Retail gas netback was up
by $2 per MWh on lower operating costs and higher
sales volumes. LPG margins increased by $3m on a
combination of lower LPG product costs (down 8%)
and a 2% increase in sales volume.
Sales volumes and customer numbers
Our Performance | Contact Energy Limited
Contact Energy Limited | Our Performance7
6

1H131H141H151H161H17
5000
4000
3000
2000
1000
0
(GWh)
CY17CY18CY19CY20
100
80
60
40
20
0
($/MWh)
1H161H17
250
200
150
100
50
0
( $m)
17181920212223-2728-32
500
400
300
200
100
0
($m)
Geothermal
SwaptionThermal
HydroGrowth capex
Share buyback
Dividends
Net debt repayments
Bank
NEXIUSPP
Domestic

Fuel mix and generation costsWholesale price and volumes
DISTRIBUTIONSFUNDING
In 1H17, the volume of electricity purchased for
Contact customers decreased by 29 GWh in line
with the reduction in total electricity sales. The
contribution from wholesale financial markets
was up $6m on increased CfD sales volumes and
lower CfD prices.
The average price received for generation was
$47 per MWh, down $11 per MWh. The average
price paid for purchases was $53 per MWh, $10
per MWh lower than 1H16.
Total renewable generation in 1H17 was flat on the
prior corresponding period but increased to 84%
of the total generation on the lower generation
volumes in the period. Increased hydro generation
offset geothermal generation which was lower than
1H16 as a planned outage at Te Mihi extended by a
month longer than scheduled. Te Mihi returned to
full capacity on 30 November 2016.
Lower national electricity demand (2% lower than
1H16) and high levels of renewable generation saw
thermal generation replaced with lower cost
CFDs from wholesale market participants with
excess generation.
Thermal generation was down 351 GWh to 685 GWh
with baseload CCGTs reducing 416 GWh and a
65 GWh increase in the amount of peaking
generation as their flexibility was utilised to manage
portfolio positions. Total gas used in generation was
7 PJ at an average cost of $6/GJ. This included 1.5
PJ of gas extracted from Ahuroa, enabling Contact
to maintain a flexible gas contracting position.
The Board has resolved to maintain the interim
dividend at 11 cents per share (1H16 11 cents per
share) with 8 cents per share imputed. With the
business continuing to generate strong free
cash flows, the Board is balancing the use of free
cash flow between distributions to shareholders
via dividends, the repayment of debt, and
reinvestment in the existing business with the
current priority being the reduction of debt.
Total term debt at 31 December 2016 was
$1,610m. Contact continues to benefit from a
funding portfolio that is flexible, efficient and
diverse with a manageable maturity profile.
Average weighted cost of borrowings
continued to improve, falling a further 0.45%
in 1H17 as competitively priced USPP and
retail bond facilities were executed replacing
higher cost debt.
The face value of net borrowings reduced
from 30 June 2016 as surplus cash was
applied to the reduction of debt. Contact
remains committed to maintaining an efficient
capital structure and an investment grade
credit rating, with a current Standard and
Poor’s rating of BBB since 2002. The
attributes of the funding portfolio, along with
the investment grade credit rating, places
Contact in a strong position to withstand
variable market conditions.
Yr
Dec 2015
Dec 2016
Jun 2016
Ōtāhuhu futures price
Use of free cash flow
Our Performance | Contact Energy Limited
Contact Energy Limited | Our Performance9
8

Financial Statements | Contact Energy Limited
Contact Energy Limited | Financial Statements11
10
About these Financial Statements
These condensed interim Financial Statements are for Contact, a group made up of Contact Energy
Limited and the entities over which it has control or joint control.
Contact Energy Limited is registered in New Zealand under the Companies Act 1993. It is listed on the
New Zealand stock exchange (NZX) and the Australian Securities Exchange (ASX) and has bonds
listed on the NZX debt market. Contact is an FMC reporting entity under the Financial Markets
Conduct Act 2013.
Contact’s condensed interim Financial Statements for the six months ended 31 December 2016
provide a summary of Contact’s performance for the period and outline significant changes to
information reported in the Financial Statements for the year ended 30 June 2016 (2016 Annual
Report). The Financial Statements should be read with the 2016 Annual Report. Certain comparative
amounts have been reclassified to conform with the current period’s classification.
The Financial Statements have been prepared:
• In accordance with New Zealand generally accepted accounting practice (GAAP) and comply with
NZ IAS 34 and with IAS 34 Interim Financial Reporting
• In millions of New Zealand dollars
• Using the same accounting policies and significant estimation and critical judgments disclosed in
the 2016 Annual Report.
Statement of
Comprehensive Income
For the six months ended 31 December 2016
$mNote
Unaudited
six months
ended
31 Dec 2016
Unaudited
six months
ended
31 Dec 2015
Audited
year
ended
30 June 2016
Revenue and other income
A21,0391,120 2,163
Operating expenses
A2(778)(866)(1,6 4 0)
Significant items
A219 (272)(327)
Depreciation and amortisation
C1(99)(97)(201)
Net interest expense
(47)(52)(101)
Profit/(loss) before tax
134 (167)(106)
Tax (expense)/credit
(38)51 40
Profit/(loss)
96 (116)(66)
Items that may be reclassified to profit/(loss):
Change in cash flow hedge reserve
D18 (9)5
Deferred tax relating to cash flow hedges
D1(2)1 (3)
Other comprehensive income/(loss)
6 (8)2
Comprehensive income/(loss)
102 (124)(64)
Profit/(loss) per share (cents) -Basic
13.5 (15.9)(9.1)
Profit/(loss) per share (cents) -Diluted
13.3 (15.6)(9.0)
The Financial Statements were authorised on behalf of the Contact Energy Limited Board
of Directors on 10 February 2017.
Financial
Statements
For the six months ended 31 December 2016
Sir Ralph Norris
Chairman
Sue Sheldon
Director

Financial Statements | Contact Energy Limited
Contact Energy Limited | Financial Statements13
12
Statement of
Cash Flows
For the six months ended 31 December 2016
$mNote
Unaudited
six months
ended
31 Dec 2016
Unaudited
six months
ended
31 Dec 2015
Audited
year
ended
30 June 2016
Receipts from customers
1,055 1,154 2 ,172
Payments to suppliers and employees
(790)(870)(1,620)
Tax received/(paid)
(25)8 1
Liquidated damages received
--2
Dividends received
- -1
Operating cash flows
240 292 556
Purchase of assets
(65)(69)(122)
Proceeds from sale of assets
2 3 27
Interest received
- -1
Investing cash flows
(63)(66)(94)
Dividends paid
B2(107)(110)(189)
Share buyback
B1-(62)(10 0)
Proceeds from borrowings
20 315 360
Repayment of borrowings
(40)(303)(426)
Interest paid
(4 4)(46)(94)
Gas sale and repurchase arrangement
(6)(4)(7)
Financing cash flows
(17 7 )(210)(456)
Net cash flow
-16 6
Add: cash at the beginning of the period
-(6)(6)
Cash at the end of the period
-10 -
Bank overdraft
B3(4)-(5)
Cash and cash equivalents
4 10 5
Statement of
Financial Position
At 31 December 2016
$mNote
Unaudited
31 Dec 2016
Unaudited
31 Dec 2015
Audited
30 June 2016
Cash and cash equivalents
4 10 5
Trade and other receivables
181 180 201
Inventories
55 63 58
Intangible assets
C118 21 15
Derivative financial instruments
D129 7 22
Tax receivable
-10 -
Assets held for sale
-29 1
Total current assets
287 320 302
Inventories
37 76 46
Property, plant and equipment
C14,6 4 9 4 ,75 7 4,699
Intangible assets
C1331 312 318
Goodwill
182 182 182
Derivative financial instruments
D157 68 88
Other non-current assets
18 11 17
Total non-current assets
5, 2 74 5,406 5,350
To t a l a s s e t s
5,561 5,726 5,652
Trade and other payables
203 187 223
Borrowings
B3436 289 305
Derivative financial instruments
D122 21 24
Provisions
15 5 10
Ta x p a y a b l e
4 --
Total current liabilities
680 502 562
Borrowings
B31,209 1,471 1,391
Derivative financial instruments
D152 61 82
Provisions
45 49 44
Deferred tax
74 9739 736
Other non-current liabilities
7 26 14
Total non-current liabilities
2,062 2,346 2,267
Total liabilities
2 ,742 2,848 2,829
Net assets
B12,819 2,878 2,823
Share capital
1,515 1,552 1,515
Retained earnings
1,284 1,322 1,294
Cash flow hedge reserve
14 (3)7
Share-based compensation reserve
6 7 7
Shareholders' equity
2,819 2,878 2,823

Financial Statements | Contact Energy Limited
Contact Energy Limited | Financial Statements15
14
Notes to the Financial Statements | Contact Energy Limited
Statement of
Changes in Equity
For the six months ended 31 December 2016
$mNote
Share
capital
Retained
earnings
Other
reserves
To t a l
shareholders’
equity
Balance at 1 July 2015
1,605 1,546 20 3 ,171
Loss
A2-(116)-(116)
Change in cash flow hedge reserve (net of tax)
--(8)(8)
Lapsed share scheme awards
-2(2)-
Change in share capital
B1(53)-(10)(63)
Share-based compensation expense
--4 4
Dividends paid
B2-(110)-(110)
Unaudited balance at 31 December 2015
1,552 1,322 4 2,878
Profit
A2-50 -50
Change in cash flow hedge reserve (net of tax)
--10 10
Lapsed share scheme awards
-1 (1)-
Change in share capital
B1(37)--(37)
Share-based compensation expense
--1 1
Dividends paid
B2-(79)-(79)
Audited balance at 30 June 2016
1,515 1,294 14 2,823
Profit
A2-96 -96
Change in cash flow hedge reserve (net of tax)
--6 6
Lapsed share scheme awards
-1 (1)-
Share-based compensation expense
--1 1
Dividends paid
B2-(107)-(107)
Unaudited balance at 31 December 2016
1,515 1,284 20 2,819
Our
Performance
A1. SEGMENTS
Contact’s operating segments were changed during the reporting period to the Generation segment and the
Customer segment to better reflect how the business is now managed. All comparative information has been
restated accordingly.
The Generation segment includes revenue from the sale of electricity to the wholesale electricity market and
to the Customer segment, less the cost to generate and/or purchase the electricity sold.
The Customer segment includes revenue from delivering energy to customers less the cost of energy, and
costs to service and distribute energy to the customer.
The Customer segment purchases electricity from the Generation segment at a price fixed in a manner similar to
transactions with third parties.
A2. EARNINGS
The table on the next page provides a breakdown of Contact’s revenue and expenses, earnings before
interest, tax, depreciation and amortisation, and changes in fair value of financial instruments and significant
items (EBITDAF) by segment, and a reconciliation from EBITDAF and underlying profit to profit/(loss) reported
under NZ GAAP.
EBITDAF and underlying profit are used to monitor performance and are non-GAAP profit measures.
Significant items are excluded from EBITDAF and underlying profit when they meet criteria approved by the
Board of Directors. The significant items in this reporting period are:
• Change in fair value of financial instruments: Movements in the valuation of interest rate and electricity
price derivatives that are not accounted for as hedges, hedge accounting ineffectiveness and the effect
of credit risk on the valuation of hedged debt and derivatives. Refer D1 for a breakdown.
• Transition costs: Incurred as a result of the ICT Change and Transition programme that will significantly
change Contact’s ICT infrastructure and service delivery. Included in the cost is $1 million of accelerated
depreciation (31 December 2015: nil, 30 June 2016: $2 million).
• Remediation for Holidays Act non-compliance: At 30 June 2016, Contact disclosed a contingent liability
for non-compliance with aspects of the Holidays Act 2003. At 31 December 2016, a provision
representing the best estimate of the cost to resolve the issue, including payments to current and
previous employees, was recognised. Actual payments may differ to the estimate and the cost
recognised will be adjusted accordingly.
• Otahuhu thermal power station closure and sale: Remaining costs and proceeds from asset sales relating
to the Otahuhu power station sale that occurred during the year ended 30 June 2016.
A.

Notes to the Financial Statements | Contact Energy Limited
17Contact Energy Limited | Notes to the Financial Statements
16
Unaudited six months ended 31 Dec 2016Unaudited six months ended 31 Dec 2015Audited year ended 30 June 2016
$mGenerationCustomerEliminationsTo t a lGenerationCustomerEliminationsTo t a lGenerationCustomerEliminationsTo t a l
Mass market electricity
-466 -466 - 481 -481 -903 -903
Commercial & Industrial (C&I) electricity
1
- 251(16)235 - 249 (6) 243 - 520 (19) 501
Wholesale electricity
1
2 17 -6223 276 - 1 277 539 - 4 543
Inter-segment electricity sales
328 -(328)- 337 - (337) - 675 - (675) -
Gas
-36 -36 1 35 - 36 1 62 - 63
LPG
-64 -64 - 63 - 63 - 117 - 117
Steam
14 --14 16 - - 16 25 - - 25
Total revenue
559 8 17 (338)1,038 630 828 (342) 1,116 1,240 1,602 (690) 2,152
Other income (including liquidated damages)
-1 -1 2 2 - 4 6 5 - 11
Total revenue and other income
559 818 (338)1,039 632 830 (342) 1,120 1,246 1,607 (690) 2,163
Electricity purchases
1
(219)-10 (209) (263) - 5 (258) (528) - 15 (513)
Inter-segment electricity purchases
-(328)328 - - (337) 337 - - (675) 675 -
Gas purchases
(45)(8)-(53) (70) (8) - (78) (108) (14) - (122)
LPG purchases
-(34)-(34)-(38)-(38)-(68)-(68)
Electricity networks, transmission, levies & meter costs
(21)(305)-(326) (20) (310) - (330) (41) (596) - (637)
Gas networks, transmission, levies & meter costs
(4)(19)-(23) (8) (18) - (26) (12) (33) - (45)
Other operating expenses
(62)(66)-(128) (64) (68) - (132) (121) (126) - (247)
Carbon emissions
(4)(1)-(5) (4) - - (4) (7) (1) - (8)
Total operating expenses
(355)(761)338 (778) (429) (779) 342 (866) (817) (1,513) 690 (1,640)
EBITDAF
204 57 -261 203 51 - 254 429 94 - 523
Depreciation and amortisation
(99) (97) (201)
Net interest expense
(47) (52) (101)
Tax on underlying profit
(33) (32) (64)
Underlying profit
82 73 157
Significant items
Change in fair value of financial instruments
30 (9)(21)
Transition costs
(7) (5) (10)
Remediation for Holidays Act non-compliance
(5) - -
Otahuhu thermal power station closure and sale
1 (223) ( 2 17 )
Write-down of inventory gas
- - (43)
Asset impairments
- (35) (36)
Tax on significant items
(5) 83 10 0
Reinstatement of tax depreciation on powerhouses
- - 4
Profit/(loss)
96 (116) (66)
Underlying profit per share (cents)
11.5 10.0 21 .7
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.

Notes to the Financial Statements | Contact Energy Limited
19Contact Energy Limited | Notes to the Financial Statements
18
A3. FREE CASH FLOW
$m
Unaudited
six months
ended
31 Dec 2016
Unaudited
six months
ended
31 Dec 2015
Audited
year
ended
30 June 2016
EBITDAF
261 254 523
Tax received/(paid)
(25)8 1
Change in working capital net of non-cash,
investing and financing activities
4 26 22
Non-cash items included in EBITDAF
6 (9) 20
Significant items, net of non-cash adjustments
(6)(5) (10)
Operating cash flows
240 292 556
Net interest paid
(4 4)(46) (93)
Stay in business capital expenditure
(57)(46) (87)
Proceeds from sale of assets
2 3 27
Free cash flow141 203 403
Free cash flow per share (cents)
19.7 2 7.7 55.5
A4. RELATED PARTY TRANSACTIONS
Contact’s related parties include Directors, the Leadership Team and Rockgas Timaru Limited. In August
2015, Origin Energy Limited sold its majority shareholding in Contact. Transactions with Origin up to that point,
and all other related party transactions are disclosed in the table below.
$m
Unaudited
six months
ended
31 Dec 2016
Unaudited
six months
ended
31 Dec 2015
Audited
year
ended
30 June 2016
Key management personnel
Directors' fees
(1) (1) (1)
Leadership Team -salary and other short-term benefits
(3) (4) (5)
Leadership Team -share-based compensation expense
- (2) (2)
Other related parties
Sale of LPG to Rockgas Timaru
1 1 1
Purchase of LPG from Origin- (6) (6)
SAP infrastructure and data services costs paid to Origin- (1) (1)
B1. SHARE CAPITAL
Number$m
Balance at 1 July 2015 733,358,872 1,605
Share capital issued
2,871,84 4 10
Share capital repurchased and cancelled
(12,525,281) (63)
Balance at 31 December 2015
723,705,435 1,552
Share capital repurchased and cancelled
(8,179,679) (37)
Balance at 30 June 2016
715,525,756 1,515
Balance at 31 December 2016
715,525,756 1,515
Ordinary shares
715,109,960 1,516
Restricted shares -Contact Share
415,7 9 6 (1)
During the period Contact granted a new tranche of share awards under the Equity Scheme, comprising
1,157,407 options, 285,054 PSRs and 345,720 DSRs. The share options have an exercise price of $4.98 per
share while the PSRs and DSRs have no exercise price.
B2. DIVIDENDS PAID
$m
Cents per
share
Unaudited
six months
ended
31 Dec 2016
Unaudited
six months
ended
31 Dec 2015
Audited
year
ended
30 June 2016
2015 final dividend
15 -110110
2016 interim dividend 11 --79
2016 final dividend 15 107--
107110188
On 10 February 2017 the Board declared an interim dividend of 11 cents per share to be paid on 17 March 2017.
Our
FundingB.

Notes to the Financial Statements | Contact Energy Limited
21Contact Energy Limited | Notes to the Financial Statements
20
B3. BORROWINGS
$m
Unaudited
31 Dec 2016
Unaudited
31 Dec 2015
Audited
30 June 2016
Bank overdraft
4 - 5
Finance lease liabilities
23 24 23
Commercial paper
185 120 165
Bank facilities
187 342 223
Retail bonds 372 372 372
Wholesale bonds
200 200 200
Export credit agency facility
79 86 83
USPP notes 560 560 560
Face value of borrowings
1,610 1 ,70 4 1,631
Deferred financing costs
(8) (8) (8)
Fair value adjustment on hedged debt
43 64 73
Carrying value of borrowings
1,645 1 ,76 0 1,696
Current
436 289 305
Non-current
1,209 1,471 1,391
Contact uses bank facilities to manage its liquidity risk and maintains a buffer of undrawn bank facilities over
its forecast funding requirements to enable it to meet any unforeseen cashflows.
Contact’s bank facilities have a range of maturities:
$m
Unaudited
31 Dec 2016
Unaudited
31 Dec 2015
Audited
30 June 2016
Less than 1 year
24 0 275 115
Between 1 and 2 years 215 190 24 0
Between 2 and 3 years
30 75 155
More than 3 years
115 14 0 14 0
600 680 650
C1. PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS
Property, plant and equipment
$m
Unaudited
31 Dec 2016
Unaudited
31 Dec 2015
Audited
30 June 2016
Opening balance
4,6995,078 5,078
Additions
3551 88
Transfers to assets held for sale
- (30)(3)
Depreciation
1
(85)(85)( 17 5 )
Impairment
- (257)(287)
Disposals
-- (2)
Closing balance
4,6494 ,7574,699
1. $1 million of the depreciation charge is classified as a significant item as part of the transition costs for the ICT Change and
Transition programme (note A2).
Intangible assets
$m
Unaudited
31 Dec 2016
Unaudited
31 Dec 2015
Audited
30 June 2016
Opening balance
333329 329
Additions3116 42
Amortisation
(15)(12)(28)
Disposals
- - (10)
Closing balance
349333333
Current
18 21 15
Non-current
331 312 318
At 31 December 2016, Contact had capital commitments of $20 million (31 December 2015: $36 million, 30
June 2016: $33 million) committed under contractual arrangements. $20 million is due within one year from
the end of the reporting period.
Our
AssetsC.

Notes to the Financial Statements | Contact Energy Limited
23Contact Energy Limited | Notes to the Financial Statements
22
D1. FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS
The fair value of derivatives used to hedge risk, categorised by accounting treatment is provided below.
Unaudited
31 Dec 2016
Unaudited
31 Dec 2015
Audited
30 June 2016
$mAssetLiabilityAssetLiabilityAssetLiability
Fair value hedges
CCIRS
50 (18)60 (13)72 ( 17 )
Interest rate swaps
8 - 8 (1)14 -
Cash flow hedges
CCIRS - margin
3 (1) 1 - 2 (4)
Foreign exchange derivatives
1 (4)- (3)- (4)
Electricity and LPG price derivatives
20 - 2 (3)17 -
Not designated in hedge relationship
Interest rate swaps
1 (49) 3 (59)3 (79)
Electricity price derivatives
3 (2) 1 (3)2 (2)
86 ( 74) 75 (82)110 (106)
Current
29 (22)7 (21)22 (24)
Non-current
57 (52) 68 (61)88 (82)
The change in the fair value of derivatives and the fair value adjustment to borrowings is provided below:
Unaudited
6 months ended
31 Dec 2016
Unaudited
6 months ended
31 Dec 2015
Audited
year ended
30 June 2016

$m
Profit/
(loss)CFHR
Profit/
(loss)CFHR
Profit/
(loss)CFHR
CCIRS
(23)- 3- 11 -
Interest rate swaps
(6)- 1- 8 -
Fair value adjustment to borrowings
30 - (8)- ( 17 )-
Fair value hedges
1 - (4)- 2 -
CCIRS - margin
- 4 - - - (3)
Foreign exchange derivatives
- 1- (6)- (7)
Electricity and LPG price derivatives
- 3- (3)- 15
Tax on change in fair value
- (2)- 1 - (3)
Cash flow hedges
- 6- (8)- 2
Interest rate swaps
28- (2)- (22)-
Electricity price derivatives
1- (3)- (1)-
Derivatives not designated in hedge relationships
29- (5)- (23)-
Total fair value movement
306(9)(8)(21)2
Our
Financial RisksD.
Independent
Auditor’s
Review Report
We have completed a review of the condensed
interim financial statements of Contact Energy
Limited, its controlled entities and joint arrangements
(Contact) on pages 10 to 22 which comprise the
statement of financial position as at 31 December
2016 and the statement of comprehensive income,
statement of changes in equity and statement of
cash flows for the period ended on that date, and a
summary of significant accounting policies and other
explanatory information.
This report is made solely to the shareholders as a
body. Our review work has been undertaken so that
we might state to Contact’s shareholders those
matters we are required to state to them in the
independent review report and for no other purpose.
To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than
Contact’s shareholders as a body, for our review work,
this report or any of the conclusions we have formed.
Directors’ responsibilities
The Directors of Contact are responsible for the
preparation and fair presentation of interim financial
statements in accordance with NZ IAS 34 Interim
Financial Reporting and for such internal control as
the directors determine is necessary to enable the
preparation and fair presentation of the interim
financial statements that are free from material
misstatement, whether due to fraud or error.
Our responsibilities
Our responsibility is to express a conclusion on the
interim financial statements based on our review. We
conducted our review in accordance with NZ SRE
2410 Review of Financial Statements Performed by
the Independent Auditor of the Entity. NZ SRE 2410
requires us to conclude whether anything has come
to our attention that causes us to believe that the
financial statements are not prepared, in all material
respects, in accordance with NZ IAS 34 Interim
Financial Reporting. As the auditor of Contact, NZ
SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual
financial statements.
A review of interim financial statements in
accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures,
primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting
matters, and applying analytical and other review
procedures.
The procedures performed in a review are substantially
less than those performed in an audit conducted in
accordance with International Standards on Auditing
(New Zealand). Accordingly we do not express an audit
opinion on those financial statements.
Our firm has also provided other services to Contact
in relation to AGM scrutineering. Subject to certain
restrictions, partners and employees of our firm may
also deal with Contact on normal terms within the
ordinary course of trading activities. These matters
have not impaired our independence as auditors of
Contact. Other than in our capacity as auditors we
have no relationship with or interests in Contact.
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that these interim
financial statements of Contact do not present fairly,
in all material respects, the financial position of
Contact as at 31 December 2016, and of its financial
performance and its cash flows for the period ended
on that date, in accordance with NZ IAS 34 Interim
Financial Reporting.
TO THE SHAREHOLDERS OF CONTACT ENERGY LIMITED
10 February 2017
Wellington

Contact Energy Limited
Contact Energy Limited 25
24
Glossary
ASXAustralian Securities Exchange
C&ICommercial and industrial
CCGTCombined cycle gas turbine
CCIRSCross currency interest rate swaps
CEOChief Executive Officer
CfDContract for Difference
CFHRCash flow hedge reserve
CPIConsumer price index
cpscents per share
Cost of energyThe net result of trading electricity on the national market and the associated
generation and transmission costs
DSR/PSRDeferred share rights / performance share rights
EBITDAFA non-GAAP measure equal to earnings before net interest expense, tax,
depreciation and amortisation, changes in fair value of financial instruments and
other significant items (refer note A2)
Free cash flowA non-GAAP measure of the cash generating performance of the business. It
represents cash available to fund distributions to shareholders and growth capital
expenditure. It is equal to operating cash flows less net interest paid and stay-in-
business capital expenditure plus proceeds from asset sales.
GWhGigawatt hour
LPGLiquid petroleum gas
MWhMegawatt hour
NetbackThe revenue and expenses of delivering energy and servicing customers.
NZ GAAPNew Zealand generally accepted accounting practice
NZXNew Zealand Stock Exchange
PJ / GJPetajoule / Gigajoule (measure of gas)
Significant itemsItems excluded from EBITDAF and underlying profit. These items are determined in
accordance with the principles of consistency, relevance and clarity (refer to note A2).
Underlying profitA non-GAAP measure equal to reported profit/(loss) adjusted for significant items
that do not reflect Contact’s ongoing performance (refer note A1)
USPPUnited States Private Placement
Investor
Information
REGISTRY
Link Market Services Limited (Link) is Contact’s
registrar for shares and bonds. You can view your
investment portfolio, supply your email address,
change your details, or update your payment
instructions relating to Contact at any time by visiting
the Link Investor Centre. For any queries regarding
your holding, please contact Link directly or by visiting
their website.
NEW ZEALAND
Email:
contactenergy@linkmarketservices.co.nz
Investor Centre:
investorcentre.linkmarketservices.co.nz
Mail:
Link Market Services Limited
PO Box 91976, Auckland 1142
Office:
Level 11, Deloitte House
80 Queen Street, Auckland 1010
Phone:+64 9 375 5998
Fa x: +64 9 375 5990
Web: linkmarketservices.co.nz
AUSTRALIA
Email:
contactenergy@linkmarketservices.com.au
Investor Centre:
investorcentre.linkmarketservices.com.au
Mail:
Link Market Services Limited
Locked Bag A14, Sydney South, NSW 1235
Office:
680 George Street, Sydney, NSW 2000
Phone: +61 2 8280 7111
Fa x: +61 2 9287 0303
Web: linkmarketservices.com.au
Electronic investor communication
We encourage investors to elect to receive investor
communications electronically as it keeps costs down,
delivery of our communication to you is faster and it is
better for the environment. To receive future investor
communication by email, please provide or update
your details online by visiting the Link Investor Centre.
Direct crediting of dividends
To minimise the risk of fraud and misplacement of
dividend cheques, shareholders are strongly
recommended to have all payments made by way
of direct credit to their nominated bank account
in New Zealand or Australia.
INVESTOR RELATIONS ENQUIRIES
Fraser Gardiner
Head of Investor Relations and Communications
Phone: +64 4 499 4001
Email: investor.centre@contactenergy.co.nz
STATUTORY NOTICE - FINANCIAL MARKETS
CONDUCT ACT 2013
Contact advises that it fully transitioned to the
Financial Markets Conduct Act 2013 (FMCA) on
1 December 2016. From that date, all of the
requirements of the FMCA apply to Contact.
Contact was already governed by the FMCA for
its bonds and for financial reporting, fair dealing
and other requirements prior to that date.
STOCK EXCHANGE LISTINGS
Contact’s ordinary shares are listed and quoted on
the New Zealand Stock Market (NZSX) and the
Australian Securities Exchange (ASX) under the
company code ‘CEN’. Contact has two issues of
retail bonds listed and quoted on the New Zealand
Debt Market (NZDX) under the company code
‘CEN020’ (2014 series) and ‘CEN030’ (2015 series).

Contact Energy Limited
26
Corporate
Directory
BOARD OF DIRECTORS
Sir Ralph Norris (Chairman)
Victoria Crone
Whaimutu Dewes
Rob McDonald
Sue Sheldon
Elena Trout
LEADERSHIP TEAM
Dennis Barnes
Chief Executive Officer
Graham Cockroft
Chief Financial Officer
Venasio-Lorenzo Crawley
Chief Customer Officer
Michael Dreyer
General Manager – Information
and Communication Technology (Acting)
James Kilty
Chief Generation and Development Officer
Tania Palmer
General Manager – Health, Safety and Environment
Annika Streefland
General Manager – People and Culture
Catherine Thompson
General Counsel
REGISTERED OFFICE
Contact Energy Limited
Harbour City Tower
29 Brandon Street
Wellington 6011
New Zealand
Phone: +64 4 499 4001
Fa x: +64 4 499 4003
contact.co.nz
facebook.com/contactenergy
twitter.com/contactenergy
linkedin.com/company/contact-energy-ltd
POSTAL ADDRESS
PO Box 10742
The Terrace
Wellington 6143
New Zealand
AUDITOR
KPMG
PO Box 996
Wellington 6140
New Zealand
COMPANY NUMBERS
NZ Incorporation 660760
ABN 68 080 480 477

---

APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non Taxable
ConversionInterestRenouncable
Rights IssueCapital
CallDividend
If ticked, state
Full
non-renouncable
change
X
whether:
Interim
X
YearSpecial
DRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per securityPayment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike price
Withholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
EMAIL: announce@nzx.com
Notice of event affecting securities
Contact Energy Limited
Dennis Barnes - Chief Executive OfficerDirectors' Resolution
+ 64 4 499 4001+64 4 499 40031322017
Ordinary Shares (715,525,756)NZCENE0001S6
In dollars and cents
$0.11
Not Applicable
Enter N/A if not
applicable
$$0.015456$0.031111
$0.000000$0.000000
NZD$0.014118
$78,707,833
Date Payable
17 March, 2017
28 February, 201717 March, 2017
Not ApplicableNot Applicable

---

MEDIA RELEASE
Monday 13 February 2017
Contact EBITDAF up 3%, despite subdued electricity demand
Highlights

• Improved customer advocacy, with a Net Promoter Score of +12, up from -3 in 1H16
• New products and pricing aligned to value increased Contact’s mass market retail netback by $1
per megawatt hour (MWh)
• New Zealand electricity demand down 2.0%; Contact electricity sales volumes down 0.6%
• Cost of energy improved by $10m (7%); 84% renewable generation, up from 78% in 1H16
• Other operating expenses reduced by $4m, or 3% to $128 million
• Safety performance improvement with TRIFR down to 1.2 from 3.1 in 1H16
• Face value of borrowings reduced by $21 million
Overview of results
12

“The first half of the 2017 financial year (1H17) saw Contact modestly grow earnings with continued
improvements in retail operating performance and an increase in the proportion of renewable
generation. In a competitive market, delivering strong operational performance and providing value for
customers and shareholders remains the focus,” said Dennis Barnes, Contact Chief Executive.
Contact reported a statutory profit for the six months ended 31 December 2016 of $96 million; $212
million higher than the prior corresponding period due to improved operating earnings without a
repeat of the prior period impairments. EBITDAF increased by $7 million, or 3%, to $261 million while
underlying profit after tax increased by $9 million or 12% to $82 million. Free cash flow for the period
remained strong at $141 million, a $62 million reduction over 1H16, which included a tax credit driven
by the closure of the Otahuhu power station together with increased extractions from gas storage and
the late collection of FY15 debtors favourably impacting working capital movements.

1
Refer to slide 31-34 of the 2017 interim year results presentation for a definition and reconciliation between statutory profit and the non-GAAP
profit measures earnings before net interest expense, tax, depreciation, amortisation, change in fair value of financial instruments and other
significant items (EBITDAF) and underlying profit (profit excluding significant items that do not reflect Contact’s ongoing performance).
2
Refer to slide 20 of the 2017 interim results presentation for a definition and reconciliation between cash flow from operating activities and the
non-GAAP measure free cash flow. Free cash flow represents cash available to repay debt and to fund distributions to shareholders and growth
capital expenditure.

Contact Energy Limited / 2
The Board has resolved to maintain the interim dividend at 11 cents per share (1H16 11 cents)
imputed to 8 cents per share. This represents a pay-out ratio of 96% of Contact’s underlying profit.
Contact remains committed to maintaining an investment grade credit rating and continued to reduce
gearing levels with a $21 million reduction in debt during the period. Continued strong cash flow has
Contact on target to return the net debt to EBITDA ratio to the preferred 2.6 to 3 times range.
”We have made progress in transforming our Customer business. We have focused on delivering
products which provide customers with greater choice, certainty and control and incorporated
feedback to drive improvements in customer experience. The Customer business recorded a $6
million improvement in EBITDAF on the back of our operational focus,” said Mr Barnes.
Mass market electricity sales volumes were down by 110 GWh as average electricity usage
decreased due to above average temperatures and newly acquired business customers using less
energy than those they replaced. Average customer numbers were down by 1,100 on 1H16 due to
the continued elevated level of competition, including price discounting by large competitors and
benign wholesale conditions that supported offerings by new entrants. The reduction in mass market
sales was largely offset by increased commercial and industrial sales.
“We have recently completed the simplification and migration of our core IT systems to the Cloud
which, amongst other things, will make it easier for us to deliver services through lower cost mobile
and online channels. We have also embedded data and analytics capability to better understand our
customers’ needs, with real-time customer insight improving the customer experience as well as
lowering future operating costs. I expect these changes will allow us to continue reducing operating
costs,” Mr Barnes said.
National electricity demand declined by 2% in 1H17 primarily driven by lower consumption in the
residential sector and lower irrigation demand. Warmer temperatures and above average rainfall both
contributed to the reduced electricity demand and also resulted in higher hydro generation, lower
wholesale electricity prices and limited price volatility.
“The flexibility of our portfolio and low levels of contracted gas were a real asset over the past 6
months. With high levels of renewable generation available in the market, we were able to reduce
generation from our thermal plants and purchase lower cost energy from wholesale market
participants. This trading strategy, combined with reduced electricity purchases and careful
management of costs, resulted in a $1 million improvement in EBITDAF from our Generation
business,” said Mr Barnes.
Looking forward
Contact’s strategy remains centred on optimising the Customer and Generation businesses to deliver
strong cash flows which are ultimately for distribution to shareholders.
“In the last six months we have moved to report the performance of our Customer and Generation
businesses separately. The focus this brings will be used to monitor and drive improved performance
in both businesses and ultimately deliver value for shareholders.
We expect our operational improvement initiatives to continue to reduce our costs. In time our large
customer base and world class systems will provide an attractive opportunity for partners to join us in
providing value for our customers beyond energy as we continue our evolution from an essential
services business to a broader ‘living services’ business.
We will continue to focus on the structural efficiency of the electricity supply market. This includes the
commencement of the 80 megawatt financial agreement with Meridian Energy to support the
continued operation of the Tiwai aluminium smelter. With a quality portfolio of long life generation
assets we will continue to lower the cost of energy through fuel substitution, electricity trading and
gains realised through the execution of our continuous improvement programme,” said Mr Barnes.
ENDS
Investor enquiries: Matthew Forbes +64 21 072 8578
Media enquiries: Shaun Jones +64 21 204 4521

---

2017 Interim Results Presentation
Six months ended 31 December 2016
13 February 2017

1H17 Results 13 February 2017
Presentation Contact Energy Limited
Disclaimer
This presentation may contain projections or forward-looking statements
regarding a variety of items. Such forward-looking statements are based
upon current expectations and involve risks and uncertainties.
Actual results may differ materially from those stated in any forward-
looking statement based on a number of important factors and risks.
Although management may indicate and believe that the assumptions
underlying the forward-looking statements are reasonable, any of the
assumptions could prove inaccurate or incorrect and, therefore, there
can be no assurance that the results contemplated in the forward-looking
statements will be realised.
EBITDAF, underlying profit and free cash flow are non-GAAP (generally
accepted accounting practice) measures. Information regarding the
usefulness, calculation and reconciliation of these measures is provided in
the supporting material.
Furthermore, while all reasonable care has been taken in compiling this
presentation, Contact accepts no responsibility for any errors or
omissions.
This presentation does not constitute investment advice.
2

3
Strategy
»Optimisethe Customer and Generation businesses to deliver strong cash flows
• Deliver value by providing customers with choice, certainty and control
• A low cost, long life and flexible generation portfolio with a continuous improvement programmefocusing on safety, reliability and resource
utilisation
• Disciplined and transparent approach to expenditure
Performance
highlights against
1H16
»EBITDAF up 3%, Underlying profit per share up 15%, Free cash flow per share strong at 20c
»Other operating expenses down $4m, or 3% to $128m. On a like for like basis other operating expenses down $7m
»Contact grew electricity market share with sales volumes down 1% against national electricity demand which declined by 2%, Mass market
electricity netback per MWh up 1%
»Cost of energy improved by 7% as high national hydro generation and lower sales volumes saw thermal generation replaced with lower cost
supply contracts
»Total recordable injury frequency rate down to 1.2 from 3.1
Capital management
»Interim dividend stable at 11 cents per share; 8 cents per share imputed
»$21m reduction in debt in the six months ended 31 December 2016
»$75m domestic retail bond (with oversubscriptions up to $100m) launched today
Focus on structural
efficiency
»Tiwai’s new higher priced electricity contract, which Contact is supporting with an 80 MW supply agreement with Meridian, commenced on 1
January 2017
»Completion of TCC major maintenance deferred and no new gas purchases
»Regulatory changes around transmission pricing and network charging are critical to ensure the right incentives are in place forcustomers and
industry participants. Network charging regulation reform has been slow and fragmented to date
»Retail competition expected to continue, despite elevated marketing costs to acquire and retain
Outlook
»Operational performance improvements will support ongoing strong cash flow
»On track to reduce the net debt / EBITDA ratio to our target range
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Agenda

4
Underlying profit per share up 15%; EBITDAF up 3%
Statutory profit of $96m
1H17 Results 13 February 2017
Presentation Contact Energy Limited
1
Refer to slides 31-34 for a definition and reconciliation of EBITDAF and underlying profit
2
Refer to slide 20 for a definition and reconciliation of free cash flow
3
Refer to slide 35 for a reconciliation of the AGS accounting treatment change
6 months ended Comparisonagainst 1H16
31 December 2016
EBITDAF
1
$261mup 3% from $254m
Profit/(loss)$96mup 183% from ($116m)
Earnings per share (cents)13.5 cpsup 185% from ($15.9 cps)
Underlying profit
1
$82mup 12% from $73m
Underlying profit per share (cents)11.5 cpsup 15% from 10.0 cps
Interim dividend (cents)11.0 cpsno change from 11.0 cps
Free cash flow
2
$141mdown 31% from $203m
Free cash flow per share (cents)
2
19.7 cpsdown 29% from $27.7 cps
Capital expenditure$63mdown 11% from $71m
»
Contact changed the accounting treatment
for the costs incurred in operating the
AhuroaGas Storage (AGS) facility. While
there are no cash implications, this change
reduced 1H17 EBITDAF by $2m with other
operating costs $3m higher on 1H16 on a
like-for-like basis
3
»Free cash flow for the period remained
strong at $141m, with the reduction on
1H16 primarily related to:
»Tax paid up by $33m on 1H16 due to
a tax refund relating to FY15 tax
payments and tax benefits from
Otahuhu closure received in 1H16
»Unfavourable working capital
movements of $22m as less storage
gas was used with lower thermal
generation and a reduction in retail
debtor receipts on the collection of
late bills in 1H16

Market dynamics and strategy
Dennis Barnes
1H17 Results 13 February 2017
Presentation Contact Energy Limited

6
12 month change in electricity consumption
Year on year quarterly change in electricity consumption
Source: MBIE
Source: EA reconciled demand data
Source: Transpower / Contact
National electricity demand down 2% compared to
1H16, on warmer wetter weather
1H17 Results 13 February 2017
Presentation Contact Energy Limited
2%
(1%)
2%
0%
(2%)
0%
(1%)
(1%)
(2%)
(5%)
1%
(8%)
(38%)
(8%)
0%
Regional changes in demand 1H17 vs 1H16
-4%0%4%8%12%16%20%
Agriculture,
forestry
& fishing
Industrial
Commercial
Residential
12 months ended 30 September 2015
12 months ended 30 September 2016
-3%
-2%
-1%
0%
1%
2%
3%
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16

7
»Price increases from Tier 1 retailers implemented
»Residential prices rose in the September quarter by
2.2% (3.2% line costs and 1.4% energy related)
»1H17 customer switching activity remains near historic highs
with the 12 month rolling switch rate at 20.1%
»Tier 2 retailers continued to gain customers
(market share by ICP up 0.6% to 9.4%), primarily
through discounted pricing and promoting wholesale
electricity spot exposed products as they attempt to
build economic, mass market customer bases
»Elevated hydro storage levels and benign
wholesale market conditions have supported
new entrants
»Tier 1 competition remains intense requiring pricing
response to ensure we remain competitive
Year on year quarterly change in residential electricity prices
Source: MBIE Quarterly Survey of Domestic Electricity Prices
Retail electricity market trends
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Tier 2 retailers continue to gain market share
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
Dec-14Mar-15Jun-15Sep-15Dec-15Mar-16Jun-16Sep-16
Year on year quarterly change
Quarter ended
Lines componentEnergy and other component
Electricity pricing up in a competitive retail market
Source: EA, ICP market share
0%
5%
10%
15%
20%
25%
-4,000
-2,000
0
2,000
4,000
6,000
8,000
Sep-15Dec-15Mar-16Jun-16Sep-16Dec-16
Switch rate (12 month rolling)
Quarterly change in ICP's
Quarter ended
"Tier 1" electricity retailers"Tier 2" electricity retailersAnnual switching rates

8
Looking forward, the transparency of performance
will drive our focus
Profit and loss
Balance sheet
Cash flow statement
Generation
Customer
Generation
Customer
Generation
Customer
Cost of energy
+ Steam revenue
+ Electricity sales to
Customer
+ Gas sales to
Customer
Netback
- Steam revenue
- Electricity purchases
from Generation
- Retail gas purchases
+ LPG margin
+ Other revenue
EBITDAF¹
EBITDAF¹
»Capturing customer inspired value will require innovation
and discipline
»A transfer price has been introduced between the
Customer and Generation businesses
»The Customer business purchases electricity from
the Generation business at an electricity price that is
set in a similar manner to transactions with third
parties
»Transparency of performance will drive focus
»Enables view of profitability for the Customer and
Generation businesses
»The allocation of volume risk between the two
segments enhances performance comparison
metrics
1H17 Results 13 February 2017
Presentation Contact Energy Limited
New reporting segments
1
Refer to slide 38 for a reconciliation of previously reported operating statistics and EBITDAF

9
Insight
Products
Sales
Service
Customer
Experience
Data
Digital
Brand
Customer 3.0
Cloud and partner based transformation
Customer 2.0
Using infrastructure capability
Customer 1.5
Embedding customer insight
and operational excellence
Enablers
Stabilise
Optimise
Sustain
Biller
Retailer
Me-tailer
FY15
FY17 / 18
FY18
FY16 / 17
Stabilise
Optimise
Sustain
>
>
Energy as a Service
Essential Services Provider
Data| Digital| Flexible
Products| Service Model
Stabilising SAP. Securing and
strengthening our core business.
Lower Cost to Acquire & Retain
Optimise customer touchpoints and
value. Provide tailored products
and services for priority segments.
Lowest Cost to Serve
Expand beyond energy. Seek
scale efficiencies.
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Deliver value by providing customers with choice, certainty and control
The Customer business is evolving from an Essential
Services business to a Living Services business

Operational improvement momentum is continuing
1H152H151H162H161H17
Change in customer numbers
-7,300-1,600-9,800+5,380-3,100
Average time to answer
(seconds)
220268222141128
Churn (variance to market)
+2.9%-0.2%+1.1%-1.3%-0.3%
% of residential customers on
>10% discount
63%70%76%82%84%
% on a fixed term product
9%10%11%24%28%
% with MMdualfuels or
products
18%20%20%22%22%
Cost to serve per customer
$113$124$122$106$118
Number of vacant properties
12,80011,50010,0004,5003,900
Average late bills >30 days
12,0005,0002,0001,100850
Bad debt expense (net) as a %
of retail revenue
0.55%0.70%0.67%0.52%0.49%
10
Net promoter score continues to improve quarter-on-quarter
Source: Contact, relational NPS
-10
-5
0
5
10
15
20
Sep-15Dec-15Mar-16Jun-16Sep-16Dec-16
1H17 Results 13 February 2017
Presentation Contact Energy Limited

11
A continuous improvement programmefocusing on
safety, reliability and resource utilisation
The Generation business is on a continuous improvement
path
»Strong earnings performance from core
renewable business, firmed by Ahuroa
Gas storage and Stratford Peakers
»Discretionary thermal generation
available if it delivers margin on
commercial and industrial sales
»Market balanced short-term with some
uncertainty long-term
Continuous
improvement
Trading
for Value
Sustainable
new revenue
Low cost, long life and flexible generation portfolio
»Safety and operational reliability
improvement
01
02
03
04
»Contact well positioned to manage risks
in all conditions
01
02
03
04
»Cost of energy improvement
»Wholesale market that supports a
return on capital
»Engagement improvement
1H17 Results 13 February 2017
Presentation Contact Energy Limited

1H17 performance
Graham Cockroft
1H17 Results 13 February 2017
Presentation Contact Energy Limited

13
$96m
Profit for the period, $212m higher due to
1H16 impairments
$261m
EBITDAF up 3% from $254m on improved
operational performance
$1/MWh
Netback improvement in the mass market
electricity sales channel
2%
Decline in national electricity demand over
1H16, Contact volumes declined by less
than 1%
$4m
Or 3% reduction in other operating
expenses, down $7m (5%) on a like for like
basis
1H17 Results 13 February 2017
Presentation Contact Energy Limited
1H17 performance highlights
$21m
Debt reduction in the six months ended 31
December 2016
Financial performance compared to 1H16

14
Underlying profit up 12% from $73m in 1H16 to $82m
Contact’s statutory profit
»Underlying profit of $82m, was up $9m (12%) reflecting the improvement in
operating earnings with EBITDAF up by $7m
»Depreciation remained steady as the closure of Otahuhuand lower
depreciation from TCC on the back of lower thermal generation was offset by
accelerated depreciation on geothermal wells
»Net interest costs reduced by $5 million on lower average interest rates
»The net significant items excluded from underlying profit in the current period
were the increase in the fair value of financial instruments ($30m), transition
costs relating to the ICT change and transition programme ($7m), an estimate
to address historic non-compliance with the Holidays Act ($5m), and $1m
relating to the closure of the Otahuhu power station. The tax expense
associated with these significant items was $5m
Statutory profit $96m
1H17 Results 13 February 2017
Presentation Contact Energy Limited
(2)
(1)
189
7
5
14
(116)
73
82
96
-120
-100
-80
-60
-40
-20
0
20
40
60
80
100
120
1H16 statutory profitNet items excluded
from underlying
profit
1H16
underlying profit
EBITDAFDepreciation &
amortisation
Net interest costsTax1H17 underlying
profit
Net items excluded
from underlying
profit
1H17 statutory
profit
$m
Financial performance compared to 1H16

15
Transfers of value between the two segments
appropriately reflect market conditions
»The fixed price, variable volume transfer price between the Customer and Generation segments is set in a manner similar to
transactions with independent retailers. On this basis, the transfer price enables an accurate picture of the financial performance of
each segment.
»A prudent retailer, offering fixed price variable
volume products would contract their forecast load
incrementally up until the start of the contract
period. For the Customer business, 90 days before
the start of a quarter the electricity transfer price is
fixed and takes into account:
•The simple average of ASX settlement prices
for the preceding 3 years for the quarter to be
contracted
•Adjustments for location, seasonality and line
loss which are based on the Customer
business load profile for preceding 12 months
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Inter-segment electricity transfer price
$-
$20
$40
$60
$80
$100
$120
$140
Jun-13Sep-13Dec-13Mar-14Jun-14Sep-14Dec-14Mar-15Jun-15Sep-15Dec-15Mar-16Jun-16Sep-16Dec-16
$ per MWh
Mass marketC&I
Inter-segment electricity transfer price

16
Customer segment
»Customer EBITDAF was $6m (12%) higher than 1H16
•Netback down $5m (1%) to $371m on lower mass market sales
volumes, partially offset by an increase in sales to lower margin
C&I customers
•Electricity purchase costs reduced $9m (3%) due to lower sales
volumes and a lower electricity transfer price reflecting reductions
in ASX prices
•LPG, meter and other revenue margin was up $2m due to lower
product costs and higher sales volumes
»Generation EBITDAF was $1m higher than 1H16
•Cost of energy was favorable by $10m, to $125m on lower thermal
generation as hydro conditions allowed increased purchases of lower
cost electricity supply contracts
•Electricity sales to the Customer business reduced by $9m on lower
pricing and sales volumes
EBITDAF Movement
EBITDAF up 3% on operational performance
improvement
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Generation segment
6
1
254
261
220230240250260270
1H16
Customer
Generation
1H17
$m

Netback reduction on lower mass market sales volumes and
C&I pricing; offset by reduction in electricity purchase costs
»1H17 sales volume was down 25 GWh to 4,001 GWh
•Mass market sales volumes reduced by 5% primarily due to lower usage
per customer
•Residential usage per ICP was down 3% on warmer temperatures
•Business customer usage per ICP was down 9% as customers
acquired used less energy than those replaced
•Mass market customer connections were on average 1,100 lower as
we lost re-priced fixed term customers, saw continued price
discounting by larger competitors and benign wholesale conditions
supported new entrants
•Commercial and Industrial (C&I) sales volumes were up 85 GWh
»Mass market electricity netback was up $1/MWh
•Tariff up 3% or $6/MWh with prices increased on new products launched
•Network costs increased by $4/MWh or 4%
» C&I electricity netback was down $2/MWh with the prices of new contracts
tracking ASX prices down
» Electricity purchase costs were $9m (3%) lower on reduced sales volumes and a
lower electricity transfer price
» Retail gas volumes and netback marginally up on 1H16
» LPG gross margin up $3m on lower product costs and higher volume
» The Customer business operating costs to serve our customers reduced by $2m
4,001 GWh
Electricity sales volume; down 1%
as lower mass market sales were
offset by an increase in C&I sales
$84/MWh
Netback down $1/MWh with a
higher proportion of C&I sales
17
Customer EBITDAF up $6m on lower
electricity purchase costs
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Customer segment EBITDAF movements
57
51
(15)
2
3
1
5
9
2
30354045505560
1H17
Operating costs
LPG gross margin
Gas gross margin
Electricity pass through costs
Inter-segment electricity costs
MM electricity revenue
C&I electricity revenue
1H16
$m
unfavourablefavourable

$10m (7%) improvement in cost of energy was
offset by a $9m reduction in electricity sales
revenue from the Customer business
»Wholesale spot market revenue down $14m
•Merchant sales volumes were 145 GWh, 329 GWh lower than 1H16
with low wholesale prices in the period
»Wholesale financial market revenue up $8m on higher CfDsales
»Fuel mix favorable $3m with renewable generation increasing from 78%
to 84%
•Thermal generation was down by 416 GWh reducing gas purchases
by 3 PJ
•Geothermal generation was down 71 GWh on an extended Te Mihi
outage in the period which was offset by a 63 GWh increase in hydro
volume
»Unit generation cost favourable $15m with lower unit gas costs and
lower gas transmission and operating costs due to the closure of
Otahuhu more than offsetting increased carbon costs and plant
maintenance expenses
»The change in accounting treatment in 1H17 for the costs incurred in
operating the AhuroaGas Storage (AGS) facilityreduced EBITDAF by
$2m over the prior comparative period
84%
Renewable generation up from
78% in 1H16
4,156 GWh
30 GWh decrease in electricity
purchase volumes
18
Generation EBITDAF up $1m to $204m
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Generation segment EBITDAF movement
204
203
(9)
(14)
2
11
3
8
175180185190195200205
1H17
Operating costs
Unit generation cost
Fuel Mix
Inter-segment electrcity sales
Wholesale Financial Market
Wholesale Spot Market
1H16
$m
unfavourablefavourable

19
Focus continues on the reduction of both operating and
capital expenditure
»1H17 capex $63m, $8m lower than 1H16
»The reduction in thermal generation in the period has
allowed for the partial deferral of TCC major maintenance
with $9m moved from FY17 to FY18
»Capex expected to be $70 - $80m per annum from FY18
»1H17 other operating expenses were down $4m, 3% lower
than 1H16
• Labour costs down primarily due to reduced FTE’s
• Reduced bad debt write-offs
• Lower insurance costs
• AGS facility costs were re-classified in the period,
increasing other operating expenses by $3m over 1H16
(full year impact on prior period comparison is $6m)
1
»Savings to continue
• IT systems simplification move to the cloud
• Reduced churn costs and an increase in digital self-
service
Other operating expensesCapital expenditure
Capital expenditure
1H17 Results 13 February 2017
Presentation Contact Energy Limited
1
Refer to slide 35 for a reconciliation of the impact of this change
-
20
40
60
80
100
120
140
FY16FY17FY18FY19FY20
$m
Plant maintenanceCorporate/ RetailWairakei Investment ProgrammeResourcesGas infrastructure

20
Due to higher tax paid and unfavourable working capital movements
Free cash flow down 31%
1H17 Results 13 February 2017
Presentation Contact Energy Limited
»Free cash flow measures the cash generating performance of the business and represents cash available to reduce debt, fund distr ibutions to
shareholders and fund capital expenditure for growth
»Tax paid increased by $33m on 1H16 due
toa tax refund relating to FY15 tax
payments and tax benefits from Otahuhu
closure in 1H16
»Unfavourable working capital movements of
$22m as less storage gas was used with
lower thermal generation and a reduction in
retail debtor receipts on the one-off
collection of late bills in 1H16
»The cost of the $10m Stratford super core
recognisedin FY16, was paid in 1H17. This
asset was previously financed via a lease
arrangement with installment payments.
Contact settled this liability with a one-off
payment on favourableterms in the period
»Partially offset by favourableEBITDAF and
lower net interest paid
6 months ended6 months ended
$m31 December 201631 December 2015$m%
EBITDAF261 254 7 3%
Tax received/(paid)(25) 8 (33) (413%)
Change in working capital4 26 (22) (85%)
Other6 9 (3) (33%)
Significant items(6) (5) (1) (20%)
Operating cash flows240 292 (52) (18%)
Stay in business capital expenditure(57) (46) (11) (24%)
Net interest paid(44) (46) 2 4%
Proceeds from asset sales2 3 (1) (33%)
Free cash flow141 203 (62) (31%)
Variance

Free cash flowBalance Sheet
Investment in growth
»Operating cash
flow
•Less net
interest paid
•Lessstay in
business capex
•Addproceeds
from asset sales
»Investment grade
credit rating
• Net debt /
EBITDA ratio of
2.6 – 3.0
»Ordinary dividend equal to
100% underlying profit
»Special dividend where
imputation credits available
»Share buyback
»Returns greater than risk
adjusted cost of capital
»Focus on areas of strength
Our financial framework
»Our focus is on free cash flow generation and ensuring
a robust balance sheet
Distributions
21
1H17 Results 13 February 2017
Presentation Contact Energy Limited

22
Debt reduced by $21m in 1H17
Interim dividend for 1H17 held stable at 11 cents
per share
»Face value of net borrowings reduced by $21m to $1,610m
as surplus cash was applied to the debt repayment
»Gearing remained stable at 36.1%
»$122m in debt repayment since peak debt in March 2016
»8 cents per share is imputed reflecting available imputation
credit balance following the payment of the fully imputed
special dividend in June 2015
»Record date 28 Feb 2017; payment date 17 March 2017
• The NZD/AUD exchange rate used for the payment of
Australian dollar dividends will be set in early March
Uses of free cash flow
Financial framework prioritisesa robust balance sheet, with
strong free cash flow currently directed to debt repayment
1H17 Results 13 February 2017
Presentation Contact Energy Limited
0
40
80
120
160
200
1H161H17
$m
DividendsShare buybackGrowth capexNet debt repayments

Summary
Dennis Barnes
1H17 Results 13 February 2017
Presentation Contact Energy Limited

24
Strategy
»Optimisethe Customer and Generation businesses to deliver strong cash flows
• Deliver value by providing customers with choice, certainty and control
• A low cost, long life and flexible generation portfolio with a continuous improvement programmefocusing on safety, reliability and resource
utilisation
• Disciplined and transparent approach to expenditure
Performance
highlights against
1H16
»EBITDAF up 3%, Underlying profit per share up 15%, Free cash flow per share strong at 20c
»Other operating expenses down $4m, or 3% to $128m. On a like for like basis other operating expenses down $7m
»Contact grew electricity market share with sales volumes down 1% against national electricity demand which declined by 2%, Mass market
electricity netback per MWh up 1%
»Cost of energy improved by 7% as high national hydro generation and lower sales volumes saw thermal generation replaced with lower cost
supply contracts
»Total recordable injury frequency rate down to 1.2 from 3.1
Capital management
»Interim dividend stable at 11 cents per share; 8 cents per share imputed
»$21m reduction in debt in the six months ended 31 December 2016
»$75m domestic retail bond (with oversubscriptions up to $100m) launched today
Focus on structural
efficiency
»Tiwai’s new higher priced electricity contract, which Contact is supporting with an 80 MW supply agreement with Meridian, commenced on 1
January 2017
»Completion of TCC major maintenance deferred and no new gas purchases
»Regulatory changes around transmission pricing and network charging are critical to ensure the right incentives are in place forcustomers and
industry participants. Network charging regulation reform has been slow and fragmented to date
»Retail competition expected to continue, despite elevated marketing costs to acquire and retain
Outlook
»Operational performance improvements will support ongoing strong cash flow
»On track to reduce the net debt / EBITDA ratio to our target range
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Summary

Outlook
25
»In a competitive market, turning improving operational performance
into value remains the focus
»Growing capability in retail supported by systems investment may
provide opportunities to expand our offering and/or consolidate
»Transition to new technologies likely to be slow but will deliver
opportunities for customer-led businesses
»Slow demand growth unlikely to require additional generation to be
built in the near term. Tiwai exit likely to remain a risk, although
increasingly manageable
»Our quality portfolio of long life generation assets will continue to
lower the cost of energy through fuel substitution, electricity trading
and gains realised through the efficient execution of our continuous
improvement programme
1H17 Results 13 February 2017
Presentation Contact Energy Limited

Supporting material
1H17 Results 13 February 2017
Presentation Contact Energy Limited

27
Electricity market conditions
1H17 Results 13 February 2017
Presentation Contact Energy Limited
0
500
1000
1500
2000
2500
3000
3500
4000
0
20
40
60
80
100
120
140
Jan -16Feb -16Mar -16Apr -16May -16Jun -16Jul -16Aug -16Sep -16Oct -16Nov -16Dec -16
National storage (GWh)
7 day average price ($/MWh)
Price and national storage levels
Haywards 7 Day Average Price 2016Haywards 7 Day Average Price 2015
National Storage Mean
National Storage 2016National Storage 2015
-
10
20
30
40
50
60
70
80
90
CY16CY17CY18CY19CY20
Otahuhu futures settlement price (ASX settlement
31/12/201530/06/201631/12/2016

28
Plant availability improved in 1H17
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Generation by sources
Plant reliability and generation revenue
Gross
output
Plant availability
Capacity
factor
Electricity
output
Pool revenue
1H171H16
(MW)(%)(%)(%)(GWh)($/MWh)($m)
Hydro75291%84%60%2,073 4287
Geothermal43189%91%82%1,552 5078
CCGTs37795%97%18%298 5215
Te Rapa (spot only)44100%100%61%111 536
Peakers (incl
Whirinaki)
36596%93%17%276 6017
Total1,969 92%91%49%4,310 47 203
$-
$10
$20
$30
$40
$50
$60
0
1,000
2,000
3,000
4,000
5,000
6,000
1H122H121H132H131H142H141H152H151H162H161H17
GeothermalHydroCCGTs (incl Te Rapa)PeakersCost of energy
GWh
$/MWh

29
Contracted gas volumes
No change in contracted gas volumes with support
provided by gas storage
1H17 Results 13 February 2017
Presentation Contact Energy Limited
»Working volume in Ahuroa gas storage at 31 December 2016 was 10.1PJ
0
5
10
15
20
25
30
CY15CY16CY17CY18CY19CY20
GenesisSwapMauiOther
Ahuroa gas storage monthly injections and extractions
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
JulAugSepOctNovDec
1H17 net extractions1H16 net extractions
1H17 cumulative net extractions1H16 cumulative net extractions
Extractions (PJ)

30%
29%
28%
4%
9%
Bank DebtDomestic bondsUSPPNEXICP
30
Contact’s balance sheet is supported by a robust
funding portfolio
1H17 Results 13 February 2017
Presentation Contact Energy Limited
»Contact benefits from a funding portfolio that is flexible, efficient, diverse and has a manageable maturity profile:
•$600m total committed bank facilities ($187m drawn as at 31 December 2016) and $185m commercial paper
•Weighted average tenor of funding facilities 3.9 years
»Average weighted cost of borrowings down 0.4% from 1H16 to 5.1% in 1H17
Funding maturity profile
Funding sources
-
50
100
150
200
250
300
350
400
450
FY17FY18FY19FY20FY21FY22FY23 - FY27FY28 - FY32
$m
Maturity
NEXIUSPPDomestic bondsBank

31
»EBITDAF is Contact’s earnings before net interest expense, tax, depreciation, amortisation, change in fair value of financialinstruments and other
significant items
»EBITDAF is commonly used in the electricity industry so provides a comparable measure of Contact’s performance at segment and group levels
»Reconciliation of EBITDAF to statutory profit/(loss):
Non-GAAP profit measure - EBITDAF
1H17 Results 13 February 2017
Presentation Contact Energy Limited
»Depreciation and amortisation, change in fair value of financial instruments, net interest and tax expense are explained in the following slide
6 months ended
6 months ended
$m31 December 201631 December 2015$m%
EBITDAF261 254 7
3%
Depreciation and amortisation
(99) (97) (2)
(2%)
Change in fair value of financial instruments30 (9)
39


433%
Other significant items(11)
(263)
252 96%
Net interest expense
(47) (52) 5 10%
Tax expense(38) 51 (89) (175%)
Profit/(loss)96 (116) 212 183%
Variance

32
»The adjustments from EBITDAF to reported profit/(loss) are as follows:
•Depreciation and amortisation: Costs increased by $2m (2%) due to accelerated depreciation on geothermal wells being decommissioned in FY17
•Change in fair value of financial instruments: the balance of $30m reflecting a favourable movement in interest rate derivatives over the period
•Other significant items: these are detailed on the next two slides
•Net interest expense decreased $5m (10%) to $47 million in 1H17 due to reduced debt level and lower average interest rates
•Ta x expense for 1H17 is $38m compared to $51m credit for 1H16. The difference in tax expense is driven by there being no significant impairments
or non-taxable income amounts in 1H17. Tax expense represents an effective tax rate of 28.2 per cent. There is little variancefrom the statutory
rate as a result of non-deductible expenditure being fully offset by non-assessable income derived on the sale of land.
Explanation of reconciliation between EBITDAF and
profit
1H17 Results 13 February 2017
Presentation Contact Energy Limited

33
»Underlying profit provides a consistent measure of Contact’s ongoing performance
»Underlying profit excludes the effect of significant items from reported profit / (loss). Significant items are determined basedon principles approved by the
Board of Directors
»Other significant items are determined in accordance with the principles of consistency, relevance and clarity. Items considered for classification as other
significant items include impairment or reversal of impairment of assets; business integration, restructure, acquisition and disposal costs; and transactions
or events outside of Contact’s ongoing operations that have a significant impact on reported profit
»Reconciliation of statutory profit for the year to underlying profit:
Non-GAAP profit measure – underlying profit
1H17 Results 13 February 2017
Presentation Contact Energy Limited
6 months ended6 months ended
$m31 December 201631 December 2015$m%
Profit/(loss)96 (116) 212 183%
Change in fair value of financial instruments(30) 9 (39) (433%)
Transition costs7 5 2 40%
Remediation for Holidays Act non-compliance5 - 5 100%
Asset impairments- 35 (35) (100%)
Otahuhu thermal power station closure and sale(1) 223 (224) (100%)
Tax on items excluded from underlying profit5 (83) 88 106%
Underlying profit82 73 9 12%
Variance

34
»The adjustments from reported profit / (loss) to underlying profit are as follows:
•Change in fair value of financial instruments: Movements in the valuation of interest rate and electricity price derivatives that are not accounted for
as hedges, hedge accounting ineffectiveness and the effect of credit risk on the valuation of hedged debt and derivatives
•Transition costs: incurred as a result of the ICT Change and Transition programme that will significantly change Contact’s ICT infrastructure and
service delivery. Included in the cost is $1m of accelerated depreciation
•Remediation for Holidays Act non-compliance: At 30 June 2016, Contact disclosed a contingent liability for non-compliance with aspects of the
Holidays Act 2003. At 31 December 2016, a provision representing the best estimate of the cost to resolve the issue, including payments to current
and previous employees, was recognised. Actual payments may differ to the estimate and the cost recognised will be adjusted accordingly.
•Otahuhu thermal power station closure and sale: Remaining costs and proceeds from asset sales relating to the Otahuhu power station sale that
occurred during the year ended 30 June 2016
Explanation of reconciliation from reported profit to
underlying profit
1H17 Results 13 February 2017
Presentation Contact Energy Limited

35
»Contact changed the accounting treatment for the costs incurred in operating the Ahuroa Gas Storage (AGS) facility. While there are no cash
implications, this change reduced 1H17 EBITDAF by $2m with other operating costs $3m higher on a like-for-like basis on 1H16.
»Current run-rate can be extrapolated for full year impact
»Fixed costs to operate the facility have all been included under other operating costs, which improves the transparency around AGS costs, variable
operating costs including gas transmission costs continue to be included in cost of energy
Costs to operate AGS, reconciliation of accounting
treatment change
1H17 Results 13 February 2017
Presentation Contact Energy Limited
AGS costs – 6 months ended 31 December 2016 ($m)Historically1H17 changeChange
Inventory (Balance sheet)2-
(2)
Gas transportation and purchase costs (Profitand Loss –Costof energy)2 1 (1)
Other operating expenses (Profit and Loss– Other operating expenses)3 3
Total AGS costs to operate4 4 -
EBITDAF impact
(2) (4) (2)

36
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Customer segment
Customer segment6 months ended
6 months ended
$m31 December 201631 December 2015$m%
Mas s m arket electricity466 481 (15) (3%)
Commercial and industrial electricity251 249 2 1%
Gas36 35 1 3%
LPG64 63 1 2%
Other income1 2 (1) (50%)
Total revenue and other income818 830 (12) ( 1 %)
Inter-segment electricity purchases(328) (337) 9 3%
Gas purchases(8) (8) - 0%
LPG purchases(34) (38) 4 11%
Electricity networks , levies & m eter costs(305) (310) 5 2%
Gas networks, levies & meter costs(19) (18) (1) (5%)
Emission costs(1) - (1) (100%)
Total direct costs(695) (711) 16 ( 2 %)
Other operating expenses(66) (68) 2 3%
EBITDAF57 51 6 12%
Mass market electricity sales (GWh)1,942 2,052 (110) (5%)
Commercial & industrial electricity sales 2,059 1,974 85 4%
Retail gas sales (GWh)392 377 15 4%
Total retail sales (GWh)4,393 4,403 (10) ( 0 %)
LPG sales (tonnes)38,112 37,379 733 2%
Average electricity sales price ($/MWH)179.42 181.31 (1.89) (1%)
Electricity direct pass through costs ($/M(76.27) (77.02) 0.75 1%
Electricity and gas cost to serve ($/MWh)(13.24) (13.75) 0.51 4%
Electricity and gas netback ($/MWh)84.46 85.41 (0.95) (1%)
Actual electricity line losses (%)5%7%(2%)(29%)
Retail gas sales (PJ)1.3 1.3 - 0%
Electricity customer numbers (closing)421,000 421,000 - 0%
Retail gas customer numbers (closing)62,500 60,500 2,000 3%
LPG customer numbers (closing)76,500 72,500 4,000 6%
Variance

37
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Generation segment
Generation segment6 months ended6 months ended
$m31 December 201631 December 2015$m%
Wholesale electricity217 276 (59) (21%)
Inter-segment electricity sales328 337 (9) (3%)
Gas- 1 (1) (100%)
Steam14 16 (2) (13%)
Te Mihi compensation- 2 (2) (100%)
Total revenue and other income559 632 (73) (12%)
Electricity purchases(219) (263) 44 17%
Gas purchases(45) (70) 25 36%
Electricity networks & levies(21) (20) (1) (5%)
Gas networks & levies (4) (8) 4 50%
Carbon emissions(4) (4) - 0%
Total cost of goods sold(293) (365) 72 20%
Other operating expenses(62) (64) 2 3%
EBITDAF204 203 1 ( 0 %)
Thermal generation (GWh)685 1,036 (351) (34%)
Geothermal generation(GWh)1,552 1,623 (71) (4%)
Hydro generation (GWh)2,073 2,010 63 3%
Spot market generation (GWh)4,310 4,669 (359) ( 8 %)
Spot electricity purchases (GWh)4,156 4,186 (30) (1%)
CfD sales/(purchases) (GWh)(41) 39 (80) (205%)
GWAP ($/MWh)47.04 57.80 (10.76) (19%)
LWAP ($/MWh)(52.78) (62.34) 9.56 15%
LWAP/GWAP (%)(112%)(108%)(4%)(4%)
Gas used in internal generation (PJ)7.4 9.8 (2.4) (24%)
Steam sales (GWh)349377(28.0) (7%)
Gas storage net movement (PJ)(0.8) (2.0) 1.2 60%
Unit generation costs ($MWh)(31.16) (35.13) 3.97 11%
Cost of energy ($MWh)(28.41) (30.62) 2.21 7%
Variance

38
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Customer and Generation segments reconciliation to
previously reported operating statistics
Unit generation cost definition unchanged (Generation gas purchases + electricity networks, transmission, levies and meter costs + carbon
emissions + other operating expenses)/(spot market generation volumes)
1
Inter-segment electricity purchases as per the Financial Statements for the six months ended 31 December 2016, which supercedesthe pro-forma segment note that was released on 8 February 2017
6 months ended 31 December 20166 months ended 31 December 201512 months ended 30 June 2016
$mGWh
$/MWh$mGWh$/MWh$mGWh$/MWh
Customer EBITDAF
Mass market electricity sales4661,942
240.254812,052234.289033,792238.23
Commercial & industrial electricity sales2512,059
122.072491,974126.255204,099126.84
Retail gas sales36392
91.433537793.3562618100.92
Steam sales14349
39.761637741.332562640.46
Total retail sales7684,741
7814,7801,5119,134
Electricity networks, transmission, levies and meter costs(305)4,001(76.27)(310)4,026(77.02)(596)7,890(75.51)
Gas networks, transmission, levies and meter costs(19)392(49.42)
(18)377(48.82)(34)618(54.26)
Electricity and gas cost to serve(58)4,393(13.24)
(61)4,403(13.75)(112)8,509(13.20)
Electricity, Gas and Steam Netback3854,741
81.183924,78081.947699,13484.21
Less: Steam sales transferred to Generation(14)(349)
39.8(16)(377)41.33(25)-62640.46
Electricity and Gas Netback3714,393
84.463764,40385.427448,50987.43
Electricity purchases from Generation(328)4,001(81.99)
(338)4,026(83.85)(675)
1
7,890(85.57)
Gas purchases(8)
(9)(14)
LPG revenue64
63117
LPG purchase costs(34)
(38)(69)
LPG other operating expenses(8)
(7)(14)
Other income1
25
Customer EBITDAF574,393
13.00514,40311.55948,50911.01
Generation EBITDAF
Cost of Energy(146)4,741(30.88)
(159)4,780(33.27)(285)9,134(31.23)
Transfer retail gas purchase costs8
914
Add: Steam sales14
1625
Cost of Energy(125)4,393(28.41)
(135)4,403(30.62)(246)8,509(28.93)
Electricity sales to Customer328
338675
1
Generation EBITDAF204203429
Contact EBITDAF261
254523

39
1H17 Results 13 February 2017
Presentation Contact Energy Limited
Monthly operating statistics restated to include
reporting segment changes
1
Data has been rounded to the nearest 500 and reflects numbers as at month end.
Measure
Jul-15Aug-15Sep-15Oct-15Nov-15Dec-15Jan-16Feb-16Mar-16Apr-16May-16Jun-16Jul-16Aug-16Sep-16Oct-16Nov-16Dec-16
CustomerMass market electricity salesGWh418 404 359 309 283 278 251 245 279 284 321 360 396 393 330 301 261 260
Commercial & industrial
electricity sales
GWh328 334 325 333 327 327 344 341 364 361 372 343 339 357 345 348 344 327
Retail gas salesGWh87 84 69 56 44 37 26 25 32 40 51 67 81 72 77 72 50 39
Total electricity and gas salesGWh833 822 754 698 654 643 622 611 674 685 744 770 816 822 753 720 655 627
Average electricity sales price$/MWh193.94 191.87 183.77 174.45 168.96 169.85 170.33 170.88 174.94 177.55 186.12 193.32 193.48 189.04 178.85 173.85 164.61 171.65
Electricity direct pass thru costs$/MWh(79.09)(76.49)(77.45)(76.78)(77.17)(74.76)(74.42)(72.45)(72.84)(71.23)(71.96)(80.21)(77.64)(76.35)(76.03)(76.06)(74.81)(76.48)
Electricity and gas cost to serve$/MWh(12.77)(13.79)(14.62)(16.07)(13.60)(11.61)(13.94)(13.78)(14.44)(13.15)(10.58)(10.47)(11.93)(12.47)(13.74)(12.82)(13.86)(15.17)
Electricity and Gas Netback$/MWh93.74 94.29 85.57 78.09 74.62 82.03 80.33 82.97 85.66 89.65 98.66 96.95 96.46 93.80 82.96 79.57 72.44 76.59
Actual electricity line losses%8%5%4%4%6%3%4%8%3%3%8%7%6%4%5%5%5%5%
Retail gas salesPJ0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.3 0.3 0.2 0.2 0.2 0.1
LPG sales tonnes7,677 7,158 6,502 5,451 5,265 5,327 4,269 4,533 4,984 5,472 5,976 7,005 7,433 7,334 6,477 5,623 5,882 5,363
Electricity customer numbers #428,500 427,000 424,500 423,000 422,000 421,000 420,500 421,000 422,000 423,500 424,000 425,000 425,500 423,500 423,000 423,000 422,500 421,000
Gas customer numbers #61,500 61,500 61,000 61,000 61,000 60,500 60,500 60,500 61,000 61,500 61,500 62,000 62,000 62,000 62,500 62,500 62,500 62,500
LPG customer numbers (includes
franchises)
#70,577 70,947 71,307 71,755 72,149 72,581 72,969 73,250 73,447 73,873 74,486 75,251 75,774 75,488 76,053 75,380 75,795 76,380
GenerationThermal generationGWh231 236 254 89 170 56 90 74 137 65 86 126 148 171 148 128 54 37
Geothermal generationGWh276 293 264 262 239 290 295 268 269 274 284 285 293 294 257 205 208 295
Hydro generationGWh384 339 250 357 314 366 252 298 358 351 420 401 395 319 260 343 369 388
Spot market generationGWh890 868 768 708 723 712 638 639 764 691 790 812 835 783 664 676 632 720
Spot electricity purchasesGWh807 763 703 658 641 614 609 628 656 657 744 751 779 770 698 670 628 610
CfD salesGWh12 7 15 (12)16 1 8 (2)52 (11)(15)9 13 (9)(78)(5)(15)53
Steam salesGWh38 70 67 69 66 67 59 50 44 46 36 14 34 69 66 65 60 55
GWAP $/MWh51 53 57 56 64 68 68 64 57 62 54 53 54 51 50 45 42 38
LWAP $/MWh(56)(56)(60)(61)(70)(76)(73)(70)(63)(69)(61)(61)(63)(56)(54)(50)(47)(44)
LWAP/GWAP%108%105%106%109%109%111%108%110%111%110%112%115%115%109%107%110%114%118%
Gas used in internal generationPJ2.0 2.0 2.2 1.1 1.7 0.8 1.1 0.9 1.3 0.8 1.0 1.1 1.4 1.7 1.5 1.3 0.7 0.6
Wholesale gas salesPJ0.0 0.0 0.0 0.0 0.0 0.0 0.0 -----------
Gas storage net movementPJ(0.4)(0.4)(0.4)0.0 (0.7)(0.1)0.0 0.1 0.2 0.6 0.5 0.3 (0.2)(0.5)(0.5)(0.1)0.3 0.3
Unit generation cost $/MWh(35.17)(36.94)(43.45)(29.98)(37.82)(26.30)(30.05)(29.90)(30.81)(26.26)(25.58)(26.26)(27.80)(33.37)(35.46)(33.45)(32.22)(25.55)
Cost of Energy $/MWh(34.00)(32.11)(38.76)(23.98)(36.22)(16.25)(30.29)(30.69)(26.44)(26.02)(27.68)(22.82)(25.34)(30.27)(31.81)(30.35)(30.74)(21.24)