January 2017 Operating Report

Monthly Operating Report
January2017

»For the month of January 2017 Contact recorded:
•Electricity and gas sales of 625 GWh (January
2016: 622 GWh)
•Netback of $80.87/MWh (January 2016:
$80.33/MWh)
•Cost of energy was $24.31/MWh (January 2016:
$30.29/MWh) on higher hydro generation volumes
»Otahuhu futures settlement wholesale price for the 1st
quarter of 2017 (ASX):
•As at 9February 2017: $55/MWh
•As at 31 January 2017: $54/MWh
•As at 31 December 2016 : $60/MWh
»As at the 10th of February 2017, South Island storage
was 121% of mean (31 January 2016: 120%) and North
Island storage was 136% of mean (31 January 2016:
138%)
January overview
2
»Hydro generation for the month of January 2017
totalled 355 GWh, up 103 GWh on January 2016
Operating reportContact Energy Limited

Hydro storage and forward prices
New Zealand hydro storage against mean
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201630/12/201631/01/2017
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201630/12/201631/01/2017
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Feb
16
Mar
16
Apr
16
May
16
Jun
16
Jul
16
Aug
16
Sep
16
Oct
16
Nov
16
Dec
16
Jan
17
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
Operating reportContact Energy Limited

Wholesale market
Wholesale electricity pricingDistribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0
10
20
30
40
50
60
70
80
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
2015 BEN2016 BEN2015 OTA2016 OTA
0%
10%
20%
30%
40%
50%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Jan 17Jan 16Dec 16
0%
10%
20%
30%
40%
50%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Jan 17Jan 16Dec 16
Operating reportContact Energy Limited

-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
14151614151614151614151614151614151615161715161516151615161516
GWh
North IslandSouth IslandNZAS
Electricity demand
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on January 2016*
Total national demand (FY15, 16 and 17)
»New Zealand electricity demand was up 0.3% on January 2016 (down 1.9%
on January 2015).
•Cumulative 12 months demand for February 2016 to January 2017 of
40,755 GWh is 1.2% lower than the prior comparative period.
5
*Source: Contact – excludes large industrial
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
4%
3%
(2%)
1%
3%
2%
8%
(3%)
(2%)
4%
1%
(14%)
(2%)
(2%)
FY
Operating reportContact Energy Limited

10
15
20
25
30
35
40
45
50
55
60
-
100
200
300
400
500
600
700
800
900
15 16 15 16 15 16 15 16 15 16 15 16 16 17 16 16 16 16 16
$/MWh
GWh
GeothermalHydroThermalCost of Energy
Contact’s generation performance
Generation mix and cost of energy (FY16 and 17)
6
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FY
Operating reportContact Energy Limited

60
65
70
75
80
85
90
95
100
105
110
0
100
200
300
400
500
600
700
800
900
15 16 15 16 15 16 15 16 15 16 15 16 16 17 16 16 16 16 16
$/MWh
GWh
Commercial & industrial electricity salesMass market electricity sales
Retail gas salesNetback
Retail sales volumes and netback (FY16 and 17)
Contact’s retail performance
7
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FY
Operating reportContact Energy Limited

Contact’s operational performance
8
Measure
The month ended
January 2017
The month ended
January 2016
The month ended
December 2016
Seven months ended
January 2017
Seven months ended
January 2016
CustomerMass market electricity salesGWh254 251 260 2,196 2,303
Commercial & industrial electricity salesGWh334 344 327 2,393 2,318
Retail gas salesGWh37 26 39 429 403
Total electricity and gas salesGWh625 622 627 5,018 5,025
Average electricity sales price$/MWh171.33 170.33 171.65 178.39 179.90
Electricity direct pass thru costs$/MWh(74.65)(74.42)(76.48)(76.06)(76.69)
Electricity and gas cost to serve$/MWh(13.09)(13.94)(15.17)(13.22)(13.78)
Netback$/MWh80.87 80.33 76.59 84.01 84.79
Actual electricity line losses%6%4%5%5%5%
Retail gas salesPJ0.1 0.1 0.1 1.4 1.4
LPG sales tonnes4,676 4,269 5,363 42,788 41,648
Electricity customer numbers
1
#420,500 420,500 421,000
Gas customer numbers
1
#62,500 60,500 62,500
LPG customer numbers (includes franchises) #76,900 72,969 76,380
GenerationThermal generationGWh39 90 37 724 1,126
Geothermal generationGWh282 295 295 1,834 1,918
Hydro generationGWh355 252 388 2,428 2,262
Spot market generationGWh676 638 720 4,987 5,306
Spot electricity purchasesGWh615 609 610 4,771 4,794
CfD salesGWh88 8 53 47 47
Steam salesGWh55 59 55 404 436
GWAP $/MWh43 68 38 47 59
LWAP $/MWh(51)(73)(44)(53)(64)
LWAP/GWAP%118%108%118%113%108%
Gas used in internal generationPJ0.6 1.1 0.6 8.0 10.9
Wholesale gas salesPJ-0.0 --0.1
Gas storage net movementPJ0.1 0.0 0.3 (0.7)(1.9)
Unit generation cost $/MWh(24.47)(30.05)(25.55)(30.25)(34.52)
Cost of Energy
2
$/MWh(24.31)(30.29)(21.24)(27.90)(30.58)
1
Data has been rounded to the nearest 500 and reflects numbers as at month end.
2
Cost of Energy does not include Gas used to supply retail sales
Operating reportContact Energy Limited

Glossary of terms
Netback
Measures the performance of
the Customer business.
This enables the performance of
the retail channels to be
measured without using an
energy cost. The netback is
meant to cover, inter alia, the net
purchase cost, capital return,
risk margin and a retail margin.
Electricity revenue from mass market and C&I customers
Add: Revenue from gas sales
Add: Revenue from steam sales
Less: Electricity distribution network costs, meter costs and electricity levies
Less: Gas distribution network costs, meter costs and gas levies
Less: Operating costs to serve the customer, including head office allocation
Cost of Energy
Measures the performance of
the Generation business.
Cost of energy reflects the total
operational costs of generating
and procuring electricity sold to
customers. It does not include
any capital return expectations.
Wholesale electricity revenue from our generating assets
Less: Electricity purchase costs from the wholesale market to supply customers
Less: Electricity transmission costs and levies
Less: Gas and diesel purchase costs (excluding gas purchases for retail gas sales)
Less: Gas transmission costs and levies
Less: Carbon emissions costs
Less: Generation operating costs and head office allocation
Netback and cost of energy is divided by the total retail sales volumes (electricityand gas sales) to be expressed as $/MWh

Keep in touch
10
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@ContactEnergy
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investor.centre@contactenergy.co.nz
contact.co.nz/corporate/investor-centre
+64 4 462 1323
+64 21 0728578
Investor Relations
Matthew Forbes - Investor Relations Manager
Contact Energy
Operating reportContact Energy Limited