Meridian Energy Limited Half Year Results

Appendix 1 (NZX Listing Rule 10.3.1)
Preliminary Announcement - Half Year Results



Appendix 1

Stock Exchange listings: NZX (MEL) ASX (MEZ)

PG 1


1. Half year reporting periods
Reporting period: six months to 31 December 2016
Previous reporting period: six months to 31 December 2015

2. Results for announcement to the market

Six months to
31 December 2016
(NZ$m)
Percentage change
Operational results

Revenue from ordinary activities 1,130-7%
Profit from ordinary activities after tax
attributable to security holders
12420%
Net profit attributable to security
holders
12420%
Energy Margin
1
533+5 %
EBITDAF
2
352+6%
Underlying Net Profit after Tax
3
130+7%

1
Energy Margin is a non-GAAP measure representing Energy Sales Revenue less Energy
Related Expenses and Energy Distribution Expenses.
2
EBITDAF is a non-GAAP financial measure, defined as earnings before interest,
taxation, depreciation, amortisation, changes in fair value of financial instruments,
gain/(loss) on sale of assets and joint venture equity accounting earnings
3
Underlying Net Profit after Tax is a non-GAAP measure representing Net Profit after Tax
adjusted for the effects of non-cash fair value movements and other one-off items.

Appendix1 (NZX Listing Rule 10.3.1)
Preliminary Announcement - Half Year Results


PG 2


Six months to
31 December
2016
(NZ$m)
Six months to
31 December
2015
(NZ$m)
Underlying NPAT Reconciliation
Net Profit after Tax
124104
Net Change in Fair Value of Financial
Instruments (Operating)

7532
Net Change in Fair Value of Financial
Instruments (Financing)

-63-
Premiums Paid on Electricity Options (less
interest)

-6-7
Net (Gain)/Loss on Sale of Assets
2-
Adjustments before Tax

825
Net Income Tax on Adjustments

-2-7
Adjustments after Tax

618
Underlying Net Profit after Tax
130122


Amount per
security
(NZ cents)
Imputed amount
per security
(NZ cents)
Dividends
Interim ordinary dividend 5.3301.8240
Record Date 31 March 2017
Payment Date 13 April 2017
Special dividend 2.44000.0000
Record Date 31 March 2017
Payment Date 13 April 2017
For commentary on the operational results please refer to the media announcement and
interim results presentation. Appendix 1 should be read in conjunction with the attached
Condensed Interim Financial Statements for the six months 31 December 2016.

Appendix1 (NZX Listing Rule 10.3.1)
Preliminary Announcement - Half Year Results


PG 3
3. Net tangible assets per security

31 December 2016
(NZ cents)
31 December 2015
(NZ cents)
Net tangible asset per security, after
deferred tax
181167

4. Control of entities gained or lost during the period

Name of Entity Incorporated /
Sold
Principal Activity Interest held by
Group
Dam Safety Intelligence
Limited
04/11/16 Dam safety
consultancy
services
100%
Damwatch Engineering
Limited
01/12/16 Professional
services
0%

5. Dividends
As per point 2 and NZX Appendix 7 attached

6. Dividend or distribution reinvestment plans
Nil


7. Associates and joint venture entities
Nil

8. Accounting standards
The group financial statements have been prepared in accordance with the New Zealand
equivalent to International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34) and
include condensed notes to the group financial statements. The group financial statements also
comply with International Accounting Standard IAS 34: Interim Financial Reporting (IAS 34).

9. Audit
This report is based on the unaudited interim group financial statements. Deloitte has provided a
review report on the financial statements, which is attached.

---

PG 1

Meridian Energy Interim Results February 2017
22 February 2016
Meridian Energy has delivered a third successive year of growth in interim earnings, with EBITDAF
1
in
the six months to 31 December 2017 6% higher than last year.
Meridian’s Net Profit after Tax (NPAT) was $124 million, while Underlying NPAT
2
was $130 million, the
highest level of interim Underlying NPAT the company has generated and 7% higher than last year.
Growth in New Zealand and Australia
Meridian Chief Executive Mark Binns said it’s pleasing to see Meridian lift its New Zealand earnings, despite
tough conditions and to see the performance lift in Australia.
“While mild winter and wet spring conditions contributed to lower contracted sales, record generation, lower
purchase costs and less dry period insurance saw 2% growth in New Zealand energy margin.
“The contribution of our Australian business was significant, with energy margin 43% higher than last year
with Powershop Australia sales, generation volumes and prices all higher. While this result is boosted by $8
million from the accounting treatment of forward LGC sales, Australia is performing well, with Powershop’s
entry into Queensland the latest milestone. We have also met our first Powershop UK milestone, which is the
delivery of the core IT platform to npower,” Mr Binns said.

1

Earnings before interest and taxation, depreciation and amortisation, changes in fair value of hedges and other significant items.

2

NPAT excluding the effects of non-cash fair value movements, gains on sale of assets, impairments and other one off items.

PG 2
Dividends and capital management
Meridian will pay an ordinary dividend of 5.33 cents per share which is 4.5% higher than last year. This will
be imputed to 88% and paid on 13 April 2016.
Meridian will also pay a special dividend of 2.44 cents per share, equating to $62.5 million, as part of our five-
year Capital Management Plan.
This brings the amount distributed under the Capital Management Plan since commencement in August
2015 to $250 million, or 9.8 cents per share.

ENDS
Mark Binns
Chief Executive
Meridian Energy Limited


For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772

For media queries, please contact:
Philippa Norman
External Communications
021 707 854

---

Powering today,
protecting tomorrow
MERIDIAN
ENERGY
LIMITED
INTERIM REPORT
FOR THE SIX
MONTHS ENDED

31 DECEMBER 2016

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Highlights
OF COMMUNITY
PROJECT FUNDING
with over
$6 million
invested
YEARS
Powershop
ranked as
Australia’s
greenest
electricity
retailer
Most New Zealand
generation in
a six-month period
1 Net profit after tax adjusted for the effects of non-cash fair value movements and one-off items.
growth in interim
ordinary dividend
growth in
New Zealand
small and medium
business sales
22%
4.5%

PAGE 1
Company overview
MERIDIAN ENERGY IS NEW ZEALAND’S LARGEST ELECTRICITY GENERATOR AND IS
COMMITTED TO GENERATING ELECTRICITY FROM 100% RENEWABLE SOURCES – WIND AND
WATER. MERIDIAN SUPPLIES ELECTRICITY TO POWER HOMES, BUSINESSES AND FARMS.
2 Installation control points (ICPs).
3 Financially responsible market participants.
4 Megawatts. One MW is enough to light 10,000 x 100-watt light bulbs.
WAITAKI
HYDRO SCHEME
GENERATION ASSETSOFFICES
MERIDIAN
POWERSHOP
HYDRO STATION
WIND FARM
WEST WIND
TE UKU
MASTERTON
WELLINGTON
TE ĀPITI
MILL CREEK
AUCKLAND
HAMILTON
MANAPŌURI
WHITE HILL
CHRISTCHURCH
TWIZEL
BENMORE
WAITAKI
AVIEMORE
ŌHAU B
ŌHAU C
ŌHAU A
Meridian generates more than 30% of
New Zealand’s electricity from its integrated
chain of dams and power stations on the
Waitaki River and from Manapōuri power
station in Southland, the largest hydro power
station in New Zealand, and from five wind
farms around the country.
Through the Meridian and Powershop brands,
Meridian retails electricity to over 275,000
customer connections in New Zealand,
including homes, farms and businesses
nationally. Powershop has over 90,000
residential and commercial customer
connections in Australia. Our focus is on
continuing to achieve high levels of service
and delivering value to our customers.
Meridian owns and operates Mt Millar wind
farm in South Australia and Mt Mercer wind
farm in Victoria.
Meridian supports a number of environmental
programmes, operates Community Funds
associated with each of its assets and runs
a national sponsorship programme that
supports organisations that make a big
difference to Kiwis, such as KidsCan, the
Kākāpō Recovery Programme and South
Island Rowing.
The Meridian Group employs 838 permanent
employees and has offices across
New Zealand, including the company’s
head office in Wellington and an office
in Melbourne, Australia.
90,000
OVER
CUSTOMER CONNECTIONS
3

IN AUSTRALIA
275,000
OVER
CUSTOMER CONNECTIONS
2

IN NEW ZEALAND
COMPANY OVERVIEW
HYDROWIND
TOTAL INSTALLED CAPACITY
2,338MW
4
TOTAL INSTALLED CAPACITY
617MW
MT MILLAR
MT MERCER
MELBOURNE

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Report from our
Chair and
Chief Executive
MARK BINNS
Chief Executive
CHRIS MOLLER
Chair

PAGE 3
REPORT FROM OUR CHAIR AND CHIEF EXECUTIVE
Generation volumes in both New Zealand
and Australia were ahead of the same period
last year, with generation in New Zealand
(7,029GWh
6
) at a record level for a six-
month period. This saw Meridian with 34%
of the generation market in New Zealand.
In Australia, wholesale prices were strong
but in New Zealand good inflows into most
competitors’ hydro storage lakes and
suppressed irrigation demand saw average
wholesale prices around $13 per MWh less
than in the same period last year.
The mild winter and wet spring saw a softening
in New Zealand electricity demand, with total
national demand down by 2% in the six months
to 31 December 2016 compared with last year.
These factors, together with churn in larger
corporate customers, resulted in Meridian’s
retail contracted sales being down 12% for the
period. A 22% increase in small and medium
business sales volumes helped to offset the
reduced sales in other segments.
Despite the sales volume reduction,
Meridian’s customer numbers, measured by
ICPs, increased during the six months by 794,
but a highly competitive market saw switching
levels remain high.
With lower contracted sales reducing both
purchase costs and requirements for dry period
insurance hedges, Meridian’s New Zealand
energy margin increased by $9 million (2%).
Australian energy margin increased by
$15 million (43%); this includes $8 million
of first-half margin due to be reversed on the
settlement of forward Large-scale Generation
Certificate (LGC) sales in January 2017.
Partly offsetting this was a modest increase
in operating expenses of $2 million (2%).
Dividend
We are pleased to announce an ordinary
dividend of 5.33 cents per share (CPS),
up 4.5% on last year. This is imputed to
88% and will be payable on 13 April 2017.
Capital management
Meridian is now 18 months into its $625 million
Capital Management Programme, having
paid out $187.5 million to this point in special
dividends. The Board has made the decision
to continue the Programme and to distribute
a further $62.5 million to shareholders
by way of a special dividend of 2.44 CPS.
There will be no imputation credits attached
to this payment. This will bring the amount
distributed so far under the Programme to
$250 million (9.8 CPS).
Customers
Meridian’s largest customer, the Tiwai Point
aluminium smelter, continues to operate in a
difficult but improving international aluminium
market. In the past six months the aluminium
spot price has increased by approximately
4% and the New Zealand dollar has shown
some signs of weakness relative to the United
States (US) dollar, falling 3% from where it was
last July. Our modelling suggests the smelter
remains cash positive at current prices and
exchange rates. On 1 January 2017 a price
increase came into force and the smelter
owner now has the ability to exercise a right
of termination of the electricity agreement
at any time during the remaining contract
period, upon giving 12 months’ notice. It will
be interesting to see if the new US President,
with both a pro-growth agenda and a stated
intention of addressing perceived unfair trade
practices, has an impact, on both the supply
and demand sides of the world aluminium
market. Initial indications have been positive,
with the aluminium price on the London Metal
Exchange having improved by 7% from the
date of the US presidential election through
to the end of January.
In the competitive New Zealand retail
market, Meridian is continuing its strategy
of providing customers with fair pricing
while enhancing the customer experience.
We are two years into a three-year,
$24 million redevelopment of our customer
support systems. Wherever we interface with
customers, whether it is by providing complex
billing information to businesses or ensuring
that customers can stay with us when they
move home, we are working hard to make the
process easy and efficient. Our focus remains
on acquiring small and medium-size business
customers and it is pleasing to see the growth
in this segment.
In Australia, Powershop was named the
greenest electricity supplier by Greenpeace
for the second year in a row. Customer
numbers grew by 16% to more than 90,000
in the six months to 31 December 2016 and
the Powershop brand was launched in
Queensland. Powershop also partnered with
Hepburn Wind, a community-owned wind farm
in Victoria, to manage the maintenance and
market services of the wind farm.
MERIDIAN DELIVERED EBITDAF
5
OF $352 MILLION IN THE
SIX MONTHS TO 31 DECEMBER 2016. THIS WAS A 6% INCREASE ON THE
PRIOR CORRESPONDING PERIOD AND REFLECTED INCREASED EARNINGS
IN NEW ZEALAND, BUT MORE PARTICULARLY IN AUSTRALIA, OFF THE
BACK OF BOTH STRONG WHOLESALE PRICES AND RETAIL GROWTH.
5 Earnings before interest, tax, depreciation, amortisation, changes in fair value of hedges and other significant items.
6 Gigawatt hours. One GWh is equivalent to enough electricity for 125 average New Zealand homes for one year.

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Operations
Meridian’s New Zealand generation volumes
were 3% higher than last year, despite wind
generation being down slightly compared
with last year. This is a record level of
generation for any six-month period since
the commencement of the company, even in
the pre-2011 period when it also owned the
Tekapo A and B stations.
In Australia, total generation volumes
increased by 19% in the period but with
a high level of volatility from month to
month. In September, South Australia saw
the electricity grid go down as a result of a
severe storm blowing over 24 transmission
towers. The Mt Millar wind farm met its
performance obligations; however, it was
taken out of operation for a total of three days
and production was limited for an extended
period after this. Regrettably, this event
has been politicised in Australia and has led
to a polarisation of views around the fit of
renewable energy in the generation mix,
as Australia continues to grapple with how
it will transition to a lower-carbon economy.
This inability to provide political certainty
for investors is seeing the build rate to meet
Australia’s 2020 Renewable Energy Target
rise to a point where most commentators do
not deem it realistically achievable. The flip
side to this has been a strong price for LGCs,
which has been a contributor to improved
generation prices.
In October 2016 the decision was made to
undertake a unit refurbishment programme
on the Ōhau A, B and C stations, commencing
in the current year and finishing in 2023 at
a total cost of $41 million. The investment
in this project should peak in 2020. Stay-in-
business capex for the half-year remains in
line within expectations.
Regulation
The Electricity Authority (EA) continues to
progress the transmission pricing review and,
while progress is slow, we remain encouraged
that it is maintaining a principled approach
to resolving this long-standing issue. Despite
being hopeful that a way forward could be
resolved this year, we note that some parties
are advocating a review of the process by the
courts that could further affect progress.
As previously noted, the South Australia
blackout in September was the catalyst for
the re-emergence of political debate as to
the efficacy of the Renewable Energy Target.
It now seems unclear if the bipartisan support
afforded to the Target remains intact as
conservative elements of the ruling coalition
agitate for change. Our long-term confidence
in the Australian market remains, but these
factors require us to be cautious when we
consider any new investment in the short term.
Communities
October 2016 marked a decade of Meridian’s
Community Funds programme. In this time
over $6 million has been channelled into
regional community projects. The funding,
allocated in partnership with nominated
community representatives, has seen some
significant projects deliver real benefits for
the long term.
Among many worthy projects, highlights
include being a major funder of the new Twizel
Medical Centre and supporting the restoration
of Lake Manapōuri’s Rona Island to a pest-free
sanctuary for endangered bird species.
In June 2016 Meridian also became the new
National Partner of the Kākāpō Recovery
Programme in partnership with the
Department of Conservation. Meridian also
continued its partnership with KidsCan and
sponsorship of South Island Rowing.
In addition to supporting communities with
funding, where possible, Meridian supports
regional communities with jobs. In December
Meridian’s Retail arm decided to establish a
satellite to its main Christchurch call centre,
bringing four new jobs to Twizel, while
Powershop’s Masterton office has increased
by five staff since June 2016.
In October 2016 Meridian also reaffirmed its
commitment to Christchurch by moving its
330 permanent employees back into the
central business district. This move fulfilled a
promise made to the city following the 2010/11
earthquakes that displaced Meridian staff for
a period to temporary accommodation.
Powershop in the UK
Just prior to Christmas, Powershop completed
the first milestone in its franchise agreement
with npower, one of the Big Six retailers
in the United Kingdom (UK). This provides
npower with the core IT platform to launch
the Powershop brand in the UK. Work is now
continuing to accommodate dual fuel sales
and a white label product.
Hydrology conditions
As at 31 January 2017, Meridian’s storage
lakes were at good levels with the Waitaki
catchment at 118% of average at that point
in the year and higher than in any of the
previous nine years.

PAGE 5
REPORT FROM OUR CHAIR AND CHIEF EXECUTIVE

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
WE ARE PLEASED TO REPORT A THIRD CONSECUTIVE YEAR
OF GROWTH IN OUR INTERIM EBITDAF AND THE HIGHEST LEVEL
OF INTERIM UNDERLYING NPAT THE COMPANY HAS GENERATED.
Summary of
Group performance

PAGE 7
Investment
expenditure
Other
revenue
Energy
margin
FINANCIAL PERFORMANCE AGAINST PRIOR YEAR
533
509
8
8
+5%
+$24M
0%
$0M
0100200300400500600
Dividend
declared
Operating
c a s h fl o w
Underlying
NPAT
NPAT
EBITDAF
Operating
costs
Transmission
66
64
123
121
352
332
124
104
130
122
203
206
27
28
200
194
$M
+3%
+$2M
+2%
+$2M
+6%
+$20M
+19%
+$20M
+7%
+$8M
-1%
-$3M
-4%
-$1M
+3%
+$6M
Six months ended 31 December 2016
Six months ended 31 December 2015
SUMMARY GROUP INCOME STATEMENT
($ MILLIONS)
6 MONTHS ENDED
31 DEC 2016
6 MONTHS ENDED
31 DEC 2015
12 MONTHS ENDED
30 JUN 2016
New Zealand energy margin
483474939
International energy margin
503570
Other revenue
8817
Energy transmission expense
(66)(64)(128 )
Employee and other operating expenses
(123 )(121)(248)
EBITDAF
352332650
Depreciation and amortisation
(132 ) (117 ) (236)
Impairment of assets
--4
Gain/(loss) on sale of assets
(2)-(1)
Net change in fair value of electricity and other hedges
(75)(32)(15 )
Net finance costs
(38)(39)(78)
Net change in fair value of treasury instruments
63-(68)
Net profit before tax
168144256
Income tax expense
(44)(40)(71)
Net profit after tax
124104185
SUMMARY OF GROUP PERFORMANCE

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Dividend
Meridian has declared an interim ordinary
dividend of 5.33 CPS for 1H FY2017
7
, 4.5%
higher than in 1H FY2016
8
. This interim
ordinary dividend will be imputed to 88%
of the corporate tax rate.
Meridian has also declared an interim
special dividend of 2.44 CPS ($62.5 million)
under the company’s five-year capital
management programme to return
$625 million to shareholders. This brings
the amount distributed since the capital
management programme commenced in
August 2015 to $250 million. To date this
has all been paid as unimputed special
dividends; however, a buyback remains
a consideration.
2015
INTERIM DIVIDENDS DECLARED
Six months ended 31 December
2016
5.332.44
02468
Ordinary dividend
Special dividend
CPS
2014
2013
4.19
4.801.40
5.102.44
7. 5 4
6.20
7.7 7
+.%
INTERIM DIVIDENDS DECLARED
AMOUNT
CPS
IMPUTATION
%
FY2017
Ordinary dividends
5.3388%
Capital management special dividends
2.440%
Total
7.7 7
60%
FY2016
Ordinary dividends
5.1085%
Capital management special dividends
2.440%
Total
7. 5 4
58%
UNDERLYING NPAT RECONCILIATION
($ MILLIONS)
6 MONTHS ENDED
31 DEC 2016
6 MONTHS ENDED
31 DEC 2015
12 MONTHS ENDED
30 JUN 2016
Net profit after tax
124104185
Underlying adjustments
Hedging instruments
Net change in fair value of electricity and other hedges
753215
Net change in fair value of treasury instruments
(63)
-68
Net premiums (paid)/received on electricity options
(6)(7)(12 )
Assets
(Gain)/loss on sale of assets
2-1
Impairment of assets
--(4)
Total adjustments before tax
82568
Taxation
Tax effect of above adjustments
(2)(7)(20)
Underlying net profit after tax
130122233
7 1H FY2017, the six months ended 31 December 2016.
8 1H FY2016, the six months ended 31 December 2015.
+%
318650
0200400500
REPORTED EBITDAF
2016
$M
2017
2015
2013
2014
300100
Financial year
ended 30 June
352
Interim
Final half-year
600700
332
324294
268317
277308
618
585
585
EBITDAF
EBITDAF was $352 million in 1H FY2017,
$20 million (6%) higher than in the same
period last year. This represents the company’s
second highest level of interim earnings,
slightly below the six-month earnings to
31 December 2010 of $353 million, which
included the contribution of the Tekapo power
stations, sold to Genesis Energy in June 2011.
New Zealand energy margin was $9 million
(2%) higher than in the same period last year
and this is explained in more detail later.
International energy margin was $15 million
(43%) higher than in the same period last
year, with Powershop Australia’s retail sales
volumes (241GWh in total) 78GWh (48%)
higher than in the same period last year.

PAGE 9
MOVEMENT IN EBITDAF
290
310
$M
370
EBITDAF
31 Dec 2015
332
Net spot
exposed
revenue
Wholesale
contracted
sales
+9
Net cost of
acquired
generation
+32
Retail
contracted
sales
Other market
revenue/(costs)
International
energy
margin
352
Transmission
expenses
EBITDAF
31 Dec 2016
Employee
and other
operating
expenses
330
NZ
ENERGY
MARGIN
+$M
350
-7
+1
+15
-2
-2
-26
By 31 December 2016, Powershop Australia’s
customer numbers were over 90,000, growing
over 12,000 (16%) since June 2016. Australian
wholesale and LGC prices firmed during
1H FY2017, while wind generation (309GWh
in total) was 19% higher than in the same
period last year.
As described in the significant matters note
to the financial statements (page 18), LGCs are
recognised on production at market prices,
and all forward sales of LGCs are separately
marked to market. The bulk of forward LGC
sales settle each January, at which point
04,000
RETAIL SALES VOLUMES
2016
Six months ended 31 December
GWh
3,0002,5002,0001,5001,000500
2012
2013
2014
2015
Residential, small and medium business, agriCorporate
3,500
1,887911
2,797
1,7701,1162,886
1,8801,1132,993
1,7451,0492,794
2,0011,163
3,164
-%
08,000
NEW ZEALAND GENERATION
2016
Six months ended 31 December
GWh
7,0006,0005,0004,0003,0002,000
2012
2013
2014
2015
HydroWind
1,000
6,296733
7,029
5,9916606,651
6,1637396,902
5,432618
6,050
6,087771
6,858
+%
mark to market gains or losses on settled
sales are transferred from fair value
movements to EBITDAF.
1H FY2017 includes LGC production that has
associated forward sales due to settle in
January 2017, with a mark to market loss of
$8 million at 31 December 2016 from rising
LGC prices. As a consequence of the treatment
described above, this loss is expected to be
transferred to EBITDAF in January 2017.
Transmission costs were $66 million in
1H FY2017, $2 million (3%) higher than in the
same period last year, from higher Transpower
charges on the New Zealand inter-island
electricity transmission link.
Employee and other operating costs were
$123 million in 1H FY2017, $2 million (2%)
higher than in the same period last year.
This included growth investment supporting
expansion of the Powershop Australia and
UK businesses. Despite continued customer
acquisition pressure from the highly
competitive New Zealand market, Retail
segment operating costs fell slightly.
New Zealand energy margin
New Zealand energy margin consists of:
• revenue received from sales to retail
customers net of distribution costs
(fees to distribution network companies
that cover the costs of distribution of
electricity to customers), sales to large
industrial customers and fixed-price revenue
from derivatives sold (contracted sales
revenue: $461 million in 1H FY2017,
$494 million in 1H FY2016)
• the cost of derivatives acquired to
supplement generation and manage spot
price risks, net of spot revenue received for
generation acquired from those derivatives
(net cost of acquired generation: costs
of $4 million in 1H FY2017, $13 million in
1H FY2016)
• revenue from the volume of electricity
that Meridian generates that is in excess of
the volume required to cover contracted
customer sales (net spot exposed revenue:
$25 million in 1H FY2017, -$7 million in
1H FY2016)
• the net revenue position of virtual asset
swaps (VAS) with Genesis Energy and
Mercury (net VAS revenue: $4 million
in 1H FY2017, $4 million in 1H FY2016)
• other associated market revenue and
costs including EA levies and ancillary
generation revenue such as frequency
keeping (costs of $3 million in 1H FY2017,
$4 million in 1H FY2016).
SUMMARY OF GROUP PERFORMANCE

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
New Zealand energy margin was $483 million
in 1H FY2017, $9 million (2%) higher than in the
same period last year, with retail contracted
sales revenue $26 million (8%) lower.
Meridian’s New Zealand customer numbers
increased slightly during 1H FY2017.
The mild winter and wet spring together
with churn in larger corporate customers
decreased Meridian’s retail contracted sales
by 12% in 1H FY2017.
Corporate and industrial sales volumes
decreased by 22% in 1H FY2017 as Meridian
experienced churn in time-of-use customers,
while the average sales price decreased by
1%, broadly in line with movements in the
forward market.
Aggressive competition and the warm winter
saw a decline in residential sales volumes
(7% compared with the same period last
year), while wet spring and summer conditions
in irrigation regions saw a curtailment in
agricultural load (22% compared with the
same period last year). A 22% increase in
small and medium business sales volumes
helped to offset the reduced sales in other
segments. With less sales of lower-priced
summer irrigation load, overall average
residential, small and medium business and
agri prices increased by 4%.
Wholesale contracted sales revenue was
$7 million (4%) lower in 1H FY2017. Wholesale
derivative sales volumes were 15% lower at
lower average prices than in the same period
last year. Sales volumes to the New Zealand
Aluminium Smelter matched the same period
l a s t ye ar.
Lower contracted sales reduced Meridian’s
requirements for dry-period insurance hedges.
As a result, the net cost of acquired generation
was $9 million (69%) lower in 1H FY2017 with
these acquired generation volumes 32% lower
than in the same period last year and with
a lower average net price.
Spot exposed revenue was $32 million (457%)
higher in 1H FY2017, more than offsetting the
impact of lower retail volumes. Generation
volumes were at a record level for a six-month
period
9
and 3% higher than in the same period
last year. Average generation prices were 22%
lower in 1H FY2017 than in the same period last
year, reflecting above-average national hydro
storage and lower national demand through
the six months to 31 December 2016.
The lower wholesale market prices in 1H FY2017
meant Meridian paid lower average prices to
supply contracted sales, 22% lower than in the
same period last year. Purchase volumes were
8% lower than in the same period last year,
reflecting the lower contracted sales, and
the lower overall cost to supply contracted
sales in 1H FY2017 more than offset lower
generation revenue.
070
MERIDIAN’S AVERAGE GENERATION PRICE
Six months ended 31 December
$/
MWh
2016
2015
2012
2013
60
4010
2014
44
57
48
40
64
20
5030
MERIDIAN GENERATION

HYDRO
NEW ZEALAND
PLANT
CAPACITY
MW
6 MONTHS ENDED
31 DEC 2016
GWH
6 MONTHS ENDED
31 DEC 2015
GWH
YEAR ENDED
30 JUN 2016
GWH
Ōhau A
2645675421,117
Ōhau B
212474451933
Ōhau C
212473449926
Benmore
5401,14 51,0792,10 5
Aviemore
220485448866
Waitaki
90252234460
Manapōuri
8002,9012,8845,844
Total hydro generation
2,3386,2966,08712,251

WIND
NEW ZEALAND
PLANT
CAPACITY
MW
6 MONTHS ENDED
31 DEC 2016
GWH
6 MONTHS ENDED
31 DEC 2015
GWH
YEAR ENDED
30 JUN 2016
GWH
Te Uku
64126121219
Te Āpiti
91119153289
Mill Creek
60124132254
West Wind
143274268504
White Hill
589097190
Total New Zealand wind
4167337711,456
AUSTRALIA
10
Mt Millar
708583165
Mt Mercer
131224177354
Total Australia wind
201309260519
Total wind generation
6171,0421,0311,975
9 Including generation from the Tekapo power stations
for the year ended 30 June 2011 and earlier.
10 After the application of the marginal loss factor
prescribed by the Australian Energy Market Operator.

PAGE 11
Cash flows
Operating cash flows were $203 million in
1H FY2017, $3 million (-1%) lower than in the
same period last year, mainly through higher
EBITDAF in 1H FY2017 offset by increased
tax paid during the period on high profits
generated in the previous financial year.
Total capital expenditure in 1H FY2017
was $22 million, of which $19 million was
stay-in-business capital expenditure.
-350250
GROUP CASH FLOWS
2016
Six months ended 31 December
$M1000-100-150-200-250
2012
2013
2014
2015
FinancingOperating
-300150200-5050
Investing
173-125-183
192-162-159
217-67-195
203-26-251
206-28-177
0204050
CAPITAL ASSET ADDITIONS
2015
$M
2016
2014
3010
Six months ended 31 December
22
18
49
60
Net profit after taxation
NPAT was $124 million in 1H FY2017, $20 million
(19%) higher than in the same period last year.
Higher EBITDAF and changes in the fair value
of electricity and other hedges and treasury
instruments were partly offset by higher
income tax expenses.
Fair value movements in electricity hedges and
treasury instruments reduced net profit before
tax by $12 million in 1H FY2017, compared with
a $32 million reduction in the same period
last year. Typically, these movements relate
to non-cash changes in the carrying value of
derivative instruments and are influenced by
changes in forward prices and rates on these
derivative instruments.
Lower forward price curves in New Zealand
lead to downward electricity derivative
contract valuations, while higher LGC prices
in Australia continue to give rise to unrealised
fair value losses on some forward contracts.
Forward interest rate curves rose during 1H
FY2017 as the US Federal Reserve lifted rates,
affecting the fair value of treasury instruments
and having a positive impact on NPAT. Despite
a higher interest rate environment, Meridian’s
net financing costs in 1H FY2017 were $1 million
(3%) lower than in the same period last year.
A $2 million loss on the sale of assets was
recognised in 1H FY2017 mainly from land
sales. During the period the company
completed the sale of the consultancy
part of Damwatch, Meridian’s dam safety
and engineering subsidiary, resulting in
a small gain.
After removing the impact of fair value
movements and other one-off or infrequently
occurring events, Meridian’s underlying NPAT
(reconciliation on page 8) was $130 million
in 1H FY2017. This was $8 million (7%) higher
than in the same period last year, reflecting
higher EBITDAF and lower premiums paid on
electricity options, partly offset by higher
depreciation and amortisation expenses
(as a result of generation structure and plant
assets being revalued upwards in June 2016)
and higher income tax expenses (from higher
pre-tax earnings).
1H FY2017 was the company’s fourth successive
year of interim underlying NPAT growth. It was
also the highest level of interim underlying
NPAT that Meridian has generated, including in
years that incorporated the contribution of the
Tekapo power stations.
0100200250
NPAT
2016
$M
2017
2015
2013
2014
15050
Financial year
ended 30 June
104
Interim
Final half-year
300
81185
117113
230
173122
295
117130247
124
+%
0100200250
UNDERLYING NPAT
2016
$M
2017
2015
2013
2014
15050
Financial year
ended 30 June
130
Interim
Final half-year
111233
83112195
8875
163
94
115209
122
%
SUMMARY OF GROUP PERFORMANCE

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Condensed interim
financial statements
Income Statement
........................................................... 13
The income earned and operating
expenditure incurred by the
Meridian Group during the six months
Comprehensive Income Statement ........ 13
Items of income and operating
expense that are not recognised in the
income statement and hence taken
to reserves in equity
Balance Sheet ....................................................................... 14
A summary of the Meridian Group
assets and liabilities at the end of
the six months
Changes in Equity ............................................................. 15
Components that make up the capital
and reserves of the Meridian Group
and the changes of each component
during the six months
Cash Flows ................................................................................. 16
Cash generated and used by
the Meridian Group
Notes to the condensed interim
financial statements
About this report
.............................................................. 17
Significant matters
in the six months
.............................................................. 18
A. Financial performance
A1. Segment performance ................................... 19
A2. Income
............................................................................... 21
A3. Expenses
......................................................................... 21
A4. Taxation
........................................................................... 22
B. Assets used to generate
and sell electricity
B1. Property, plant and equipment ........... 23
B2. Intangible assets
.................................................. 23
C. Managing funding
C1. Capital management ....................................... 24
C2. Earnings per share
............................................. 24
C3. Dividends
....................................................................... 25
C4. Borrowings
................................................................... 25
D. Financial instruments
D1. Financial instruments ..................................... 27
E. Group structure and other
E1. Group structure .................................................... 30
E2. Joint ventures
......................................................... 30
E3. Contingent assets and liabilities
...... 30
E4. Subsequent events
............................................ 30
E5. Changes in financial
reporting standards
......................................... 30
Signed report
Independent auditor’s review report ........ 31
KEY
SUBSEQUENT EVENT
KEY JUDGEMENTS
AND ESTIMATES
The numbers
CONDENSED INTERIM FINANCIAL STATEMENTS
AS AT AND FOR THE SIX MONTHS TO 31 DECEMBER 2016

PAGE 13
THE NUMBERS Group financial statements for the six months ended 31 December 2016
Income Statement For the six months to 31 December 2016
NOTE
UNAUDITED
2016
$M
2015
$M
Operating revenue
A2
1,13 0
1,214
Operating expenses
A3
(778)
(882)
Earnings before interest, tax, depreciation, amortisation,
changes in fair value of hedges and other significant items (EBITDAF)
352
332
Depreciation and amortisation
B1, B2
(132 )
(117 )
Loss on sale of assets
(2)
-
Net change in fair value of electricity and other hedges
(75)
(32)
Operating profit
143
183
Finance costs
A3
(39)
(40)
Interest income
1
1
Net change in fair value of treasury instruments
63
-
Net profit before tax
168
144
Income tax expense
A4
(44)
(40)
Net profit after tax attributed to the shareholders of the parent company
124 104
Earnings per share (EPS) attributed to ordinary equity holders
of the parent
Cents
Cents
Basic and diluted CPS
C2
4.8
4.1
Comprehensive Income Statement For the six months to 31 December 2016
UNAUDITED
2016
$M
2015
$M
Net profit after tax
124
104
Items that may be reclassified to profit or loss:
Net gain/(loss) on cash flow hedges
2
(3)
Exchange differences arising from translation of foreign operations
(1)
(18 )
Income tax on the above items
-
1
Total comprehensive income for the period, net of tax
attributed to shareholders of the parent company
12584
The accompanying notes on pages 17 to 30 form part of these condensed interim financial statements

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Balance Sheet As at 31 December 2016
NOTE
UNAUDITEDAUDITED
31 DEC 2016
$M
31 DEC 2015
$M
30 JUN 2016
$M
Current assets
Cash and cash equivalents
44
69118
Trade receivables
184
220194
Financial instruments
D1
95
7971
Other assets
26
2523
Total current assets
349
393406
Non-current assets
Property, plant and equipment
B1
7,648
6,9707,7 7 1
Intangible assets
B2
57
4347
Deferred tax
39
3440
Financial instruments
D1
186
188274
Total non-current assets
7,930
7, 2 3 58,13 2
Total a ssets
8,279
7, 6 2 88,538
Current liabilities
Payables and accruals
200
219 205
Employee entitlements
11
11 15
Current portion of term borrowings
C4
187
211 214
Finance lease payable
1
1 1
Financial instruments
D1
55
42 48
Current tax payable
16
11 30
Total current liabilities
470
495 513
Non-current liabilities
Term borrowings
C4
1,042
989 1,000
Deferred tax
1,598
1,384 1,617
Provisions
8
8 8
Finance lease payables
46
48 47
Financial instruments
D1
121
146 203
Term payables
97
34 100
Total non-current liabilities
2,912
2,609 2,975
Total liabilities
3,382
3,10 4 3,488
Net assets
4,897 4,524 5,050
Shareholders’ equity
Share capital
1,597
1,596 1,597
Reserves
3,300
2,928 3,453
Total shareholders’ equity
4,897 4,524 5,050
For and on behalf of the Board of Directors who authorised the issue of the condensed interim financial statements on 21 February 2017.
CHRIS MOLLER, Board Chair JAN DAWSON, Chair Audit & Risk Committee
The accompanying notes on pages 17 to 30 form part of these condensed interim financial statements

PAGE 15
THE NUMBERS Group financial statements for the six months ended 31 December 2016
Changes in Equity For the six months to 31 December 2016
AUDITEDNOTE
SHARE
CAPITAL
$M
SHARE
OPTION
RESERVE
$M
REVALUATION
RESERVE
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M
CASH
FLOW
HEDGE
RESERVE
$M
RETAINED
EARNINGS
$M
SHARE-
HOLDERS’
EQUITY
$M
Balance at 1 July 2015
1,597 1 3,311 (5) (3) (153 ) 4,748
Net profit for the year
----- 185 185
Other comprehensive income
Asset revaluation
-- 889 --- 889
Transferred to retained earnings on disposal
--(11) -- 11 -
Exchange differences from translation
of foreign operations
---(23) --(23)
Income tax relating to other
comprehensive income
--(248) ---(248)
Total comprehensive income for the year,
net of tax
-- 630 (23) - 196 803
Dividends paid
-----(501) (501)
Balance at 30 June 2016 and 1 July 2016
1,597 1 3,941 (28) (3) (458) 5,050
UNAUDITED
Net profit for the period
----- 124 124
Other comprehensive income
Net gain on cash flow hedges
---- 2 - 2
Exchange differences from translation
of foreign operations
---(1) --(1)
Income tax relating to other
comprehensive income
-------
Total comprehensive income for the period,
net of tax
---(1) 2 124 125
Dividends paid
C3
-----(278) (278)
Balance at 31 December 2016
1,597 1 3,941 (29) (1) ( 612 ) 4,897
UNAUDITED
Balance at 1 July 2015
1,597 1 3,311 (5) (3) (153 ) 4,748
Net profit for the period
----- 104 104
Other comprehensive income
Net loss on cash flow hedges
----(3) -(3)
Exchange differences from translation
of foreign operations
---(18 ) --(18 )
Income tax relating to other
comprehensive income
---- 1 - 1
Total comprehensive income for the period,
net of tax
---(18 ) (2) 104 84
Own shares acquired
(1) -----(1)
Dividends paid
C3
-----(307) (307)
Balance at 31 December 2015
1,596 1 3,311 (23) (5) (356) 4,524
The accompanying notes on pages 17 to 30 form part of these condensed interim financial statements

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Cash Flows For the six months to 31 December 2016
NOTE
UNAUDITED
2016
$M
2015
$M
Operating activities
Receipts from customers
1,110
1,16 6
Interest received
1
1
Payments to suppliers and employees
(794)
(862)
Interest paid
(36)
(34)
Income tax paid
(78)
(65)
Operating cash flows
203
206
Investment activities
Sale of subsidiary
E1
1
-
Purchase of property, plant and equipment
(18 )
(20)
Purchase of intangible assets
(9)
(8)
Investing cash flows
(26)
(28)
Financing activities
Term borrowings
447
270
Term borrowings repaid
(420)
(139 )
Shares purchased for long-term incentive
-
(1)
Dividends
C3
(278)
(307)
Financing cash flows
(251)
(177 )
Net (decrease)/increase in cash and cash equivalents
(74 ) 1
Cash and cash equivalents at beginning of the six months
118
69
Effect of exchange rate changes on net cash
-
(1)
Cash and cash equivalents at end of the six months
44 69
The accompanying notes on pages 17 to 30 form part of these condensed interim financial statements

PAGE 17
THE NUMBERS Group financial statements for the six months ended 31 December 2016
Meridian Energy Limited is a for-profit entity domiciled and
registered under the Companies Act 1993 in New Zealand.
It is an FMC reporting entity for the purposes of the Financial
Markets Conduct Act 2013. Meridian’s core business activities
are the generation, trading and retailing of electricity and the
sale of complementary products and services. The registered
office of Meridian is 33 Customhouse Quay, Wellington. Meridian
Energy Limited is dual listed on the New Zealand Stock Exchange
(NZX) and the Australian Securities Exchange (ASX). As a Mixed
Ownership Company, majority owned by Her Majesty the Queen
in Right of New Zealand, it is bound by the requirements of the
Public Finance Act 1989.
These unaudited condensed interim financial statements for
the six months ended 31 December 2016 have been prepared:
• using Generally Accepted Accounting Practice (NZ GAAP)
in New Zealand, accounting policies consistent with
International Financial Reporting Standards (IFRS) and the
New Zealand equivalents (NZ IFRS) and in accordance with
IAS 34: Interim Financial Reporting and NZ IAS 34: Interim
Financial Reporting, as appropriate for a for-profit entity;
• in accordance with the requirements of the Financial Markets
Conduct Act 2013;
• on the basis of historical cost, modified by revaluation of
certain assets and liabilities; and
• in New Zealand dollars. The principal functional currency
of international subsidiaries is Australian dollars. The closing
rate at 31 December 2016 was 0.9628 (December 2015: 0.9382,
30 June 2016: 0.9577).
All values are rounded to millions ($M) unless otherwise stated.
Accounting policies
The accounting policies and methods of computation and
classification set out in the Group financial statements for the
year ended 30 June 2016 have been applied consistently to all
periods presented in the condensed interim financial statements.
The application of new or amended standards has no material
impact on the amounts recognised in the condensed interim
financial statements.
Judgements and estimates
The basis of key judgements and estimates have not changed
from those used in preparing the financial statements for the
year ended 30 June 2016.
Basis of consolidation
The condensed interim Group financial statements comprise
the financial statements of Meridian Energy Limited and its
subsidiaries and controlled entities.
In preparing the condensed interim consolidated financial
statements, all material intra-group transactions, balances,
income and expenses have been eliminated.
About this report
IN THIS SECTION
The summary notes to the condensed interim financial statements include information that is considered relevant and material
to assist the reader in understanding changes in Meridian’s financial position or performance. Information is considered relevant
and material if:
• the amount is significant because of its size and nature;
• it is important for understanding the results of Meridian;
• it helps to explain changes in Meridian’s business; or
• it relates to an aspect of Meridian’s operations that is important to future performance.

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Generation structures and plant revaluation
At 30 June 2016 Meridian revalued its generation structures and
plant assets. The valuation resulted in a net increase of $696 million
from 30 June 2015 after adjusting for depreciation recognised in the
year. Key factors that influenced the valuation were:
• a higher market multiple for Meridian and its sector peers; and
• the current low interest rate environment in New Zealand
and Australia.
This change in valuation resulted in an increase in depreciation
expenses when compared with the corresponding period last
year. For more information refer to Note B1 Property, plant and
equipment on page 23.
Interest rate curves
Forward interest rates in New Zealand and Australia increased
during the six months to 31 December 2016 after a period of
decline. Meridian manages its funding cost risks through interest
rate hedging, consequently upward movements in the forward
curves resulted in unrealised fair value movements of $63 million.
For more information refer to section D Financial instruments on
p a g e 2 7.
Large-scale Generation Certificates (LGCs)
In Australia, Meridian earns LGCs from electricity generated at
its Mt Millar and Mt Mercer wind farms. LGCs are sold to retailers
to settle their surrender obligations in January of each year.
Meridian uses forward contracts and options to firm the prices
it receives for LGCs and consequently the profitability of each
wind farm.
At the time of generation, LGCs are recognised as income in
energy margin at the prevailing spot price. The accumulation of
LGC holdings, forward contracts and options are all recognised
as financial instruments on the balance sheet at their fair value.
Any change in this fair value is recognised in net change in fair
value of electricity and other hedges in the income statement.
Upon settling forward contract obligations in January, fair value
changes previously recognised in net change in fair value of
electricity and other hedges are reversed and recognised as
realised settlements in energy margin.
In the six months ended 31 December 2016, the market price
for LGCs continued to strengthen and resulted in unrealised
fair value losses of $6 million being recognised in the income
statement. For more information refer to section D Financial
instruments on page 27.
Non-GAAP measures
Meridian refers to non-GAAP financial measures within these
condensed interim financial statements and accompanying notes.
The limited use of non-GAAP measures is intended to supplement
GAAP measures to provide readers with further information to
broaden their understanding of Meridian’s financial performance
and position. They are not a substitute for GAAP measures.
As these measures are not defined by NZ GAAP, IFRS or any other
body of accounting standards, Meridian’s calculations may differ
from similarly titled measures presented by other companies.
The measures are described below, including page references for
reconciliations to the condensed interim financial statements.
EBITDAF
Earnings before interest, tax, depreciation, amortisation,
changes in fair value of hedges and other significant items.
EBITDAF is reported in the income statement on page 13,
allowing the evaluation of Meridian’s operating performance
without the non-cash impacts of depreciation, amortisation,
fair value movements of hedging instruments and other
one-off and/or infrequently occurring events as well as the
effects of Meridian’s capital structure and tax position.
This allows a better comparison of operating performance
with that of other electricity industry companies than GAAP
measures that include these items.
Energy margin
Energy margin provides a measure of financial performance
that, unlike total revenue, accounts for the variability of the
wholesale electricity market and the broadly offsetting impact
of the wholesale prices on the cost of Meridian’s retail electricity
purchases and revenue from generation. Meridian uses the
measure of energy margin within its segmental financial
performance in note A1 Segment performance on page 19.
Net debt
Net debt is a metric commonly used by investors as a measure
of Meridian’s indebtedness that takes account of liquid financial
assets. Meridian uses this measure within its capital management
and this is outlined in note C1 Capital management on page 24.
Significant matters in the six months
IN THIS SECTION
This section outlines significant matters which have impacted Meridian’s financial performance and provides an explanation
of non-GAAP measures used within the notes to the condensed interim financial statements.

PAGE 19
A1 Segment performance
Meridian’s operating segments have been determined according
to the nature of the products and services and the locations
where they are sold. The Chief Executive (the chief operating
decision-maker) monitors the operating performance of each
segment for the purpose of making decisions on resource
allocation and strategic direction. The Chief Executive considers
the business from the perspective of three operating segments,
Wholesale, Retail and International.
The financial performance of the operating segments is assessed
using energy margin and EBITDAF (see page 18 for a definition of
these measures) before unallocated central corporate expenses.
Balance sheet items are not reported to the Chief Executive at an
operating segment level.
The accounting policies of the Group have been consistently
applied to the operating segments.
A description of operating segments follows.
Wholesale segment
Includes activity associated with Meridian’s New Zealand:
• generation of electricity and its sale into the wholesale
electricity market;
• purchase of electricity from the wholesale electricity
market and its sale to the Retail segment and to large
industrial customers, including the New Zealand Aluminium
Smelter (NZAS) which represents the equivalent of 36%
(31 December 2015: 37%) of Meridian’s New Zealand
generation production; and
• development of renewable electricity generation opportunities.
Retail segment
Includes activity associated with retailing of electricity and
complementary products through its two brands (Meridian
and Powershop) in New Zealand. Electricity sold to residential,
business and industrial customers on fixed-price, variable-
volume contracts is purchased from the Wholesale segment at
an average annual fixed price of $67-$73 per MWh and electricity
sold to business and industrial customers on spot (variable-
price) agreements is purchased from the Wholesale segment at
prevailing wholesale spot market prices. The transfer price is set
in a similar manner to transactions with third parties.
International segment
Includes activity associated with Meridian’s:
• generation of electricity and sale into the wholesale
electricity market in Australia;
• retailing of electricity through the Powershop brand
in Australia;
• development of renewable electricity generation options
in Australia; and
• licensing of the Powershop platform in the United Kingdom.
Unallocated
Includes activities and centrally based costs that are not
directly allocated to other segments.
A. Financial performance
IN THIS SECTION
This section explains the financial performance of Meridian, providing additional information about individual items in the
income statement and an analysis of Meridian’s performance for the six months by reference to key areas including performance
by operating segment, revenue, expenses and taxation.
THE NUMBERS Group financial statements for the six months ended 31 December 2016

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
A1 Segment performance continued
UNAUDITED
WHOLESALERETAILINTERNATIONALUNALLOCATEDINTER-SEGMENTGROUP
6 MONTHS ENDED 31 DEC2016
$M
2015
$M
2016
$M
2015
$M
2016
$M
2015
$M
2016
$M
2015
$M
2016
$M
2015
$M
2016
$M
2015
$M
Contracted sales, net of
distribution costs
156
163
305
331
32
18
-
-
-
-
493
512
Virtual asset swap margins
4
4
-
-
-
-
-
-
-
-
4
4
Net cost of acquired generation
(4)
(13 )
-
-
-
-
-
-
-
-
(4)
(13 )
Generation spot revenue
312
391
-
-
39
28
-
-
-
-
351
419
Inter-segment electricity sales
238
269
-
-
-
-
-
-
(238)
(269)
-
-
Cost to supply contracted sales
(311)
(424)
( 214 )
(243)
(20)
(11)
-
-
238
269
(307)
(409)
Other market revenue/(costs)
(3)
(4)
-
-
(1)
-
-
-
-
-
(4)
(4)
Energy margin
392 386 91 88 50 35 ---- 533 509
Other revenue
3
3
3
6
1
-
2
1
(1)
(2)
8
8
Energy transmission expense
(64)
(62)
-
-
(2)
(2)
-
-
-
-
(66)
(64)
Gross margin
331 327 94 94 49 33 2 1 (1) (2) 475 453
Employee expenses
(16)
(14 )
(16)
(17 )
(4)
(4)
(11)
(11)
-
-
(47)
(46)
Electricity metering expenses
-
-
(15)
(15 )
-
-
-
-
-
-
(15)
(15 )
Other operating expenses
(24)
(24)
(16)
(16 )
(13 )
(12 )
(8)
(10 )
-
2
(61)
(60)
EBITDAF
291 289 47 46 32 17 (17) (20) (1) - 352 332
Depreciation and amortisation
(132 )
(117 )
Loss on sale of assets
(2)
-
Net change in fair value of
electricity and other hedges
(75)
(32)
Operating profit
143 183
Finance costs
(39)
(40)
Interest income
1
1
Net change in fair value of treasury
instruments
63
-
Net profit before tax
168 144
Income tax expense
(44)
(40)
Net profit after tax
124 104
Reconciliation of energy margin
Electricity sales revenue
697
797
561
607
102
71
-
-
(238)
(269)
1,12 2
1,206
Electricity expenses, net of
hedging
(305)
( 411)
(242)
(278)
(26)
(17 )
-
-
238
269
(335)
(437)
Electricity distribution expenses
-
-
(228)
(241)
(26)
(19 )
-
-
-
-
(254)
(260)
Energy margin
392 386 91 88 50 35 ---- 533 509

PAGE 21
THE NUMBERS Group financial statements for the six months ended 31 December 2016
A2 Income
6 MONTHS ENDED 31 DEC
OPERATING REVENUE
UNAUDITED
2016
$M
2015
$M
Electricity sales to customers
749
773
Electricity generation, net of hedging
373
433
Electricity-related services revenue
5
6
Other revenue
3
2
1,13 0 1,214
TOTAL REVENUE BY GEOGRAPHIC AREA
New Zealand
1,026
1,14 4
Australia
102
70
United Kingdom
2
-
Total operating revenue
1,13 0 1,214
Operating revenue
Electricity sales to customers
Revenue received or receivable from residential, business and industrial
customers. This revenue is influenced by customer contract sales prices
and their demand for electricity and is recognised at the time of supply.
Electricity generation, net of hedging
Revenue received from:
• electricity generated and sold into the wholesale markets; and
• the net settlement of electricity hedges sold on electricity futures
markets, and to generators, retailers and industrial customers.
This revenue is influenced by the quantity of generation and the
wholesale spot price and is recognised at the time of generation or
hedge settlement.
Electricity-related services revenue
Revenue received or receivable from the sale of complementary
products and services to retail customers and the provision of dam
safety and surveillance services.
Other revenue
Includes revenue from non-core activities such as licensing of the
Powershop platform, finance leases, land leases and farming.
A3 Expenses
6 MONTHS ENDED 31 DEC
OPERATING EXPENSES
UNAUDITED
2016
$M
2015
$M
Electricity expenses, net of hedging
335
437
Electricity distribution expenses
254
260
Electricity transmission expenses
66
64
Employee expenses
47
46
Electricity metering expense
15
15
Other expenses
61
60
778 882
FINANCE COSTS
Interest on borrowings
36
37
Interest on finance lease payable
3
3
39 40
Electricity expenses, net of hedging
The cost of:
• electricity purchased from wholesale markets to supply customers;
• the net settlement of buy-side electricity hedges; and
• related charges and services.
Electricity expenses are influenced by the quantity and timing of
customer consumption and the wholesale spot price.
Electricity distribution expenses
The cost of distribution companies transporting electricity between the
national grid and customers’ properties.
Electricity transmission expenses
Meridian’s share of the cost of the high-voltage direct current (HVDC)
link between the North and South Islands of New Zealand and the
cost of connecting Meridian’s generation sites to the national grid
by grid providers.
Employee expenses
Provision is made for benefits owing to employees in respect of wages
and salaries, annual leave, long service leave and employee incentives
for services rendered. Provisions are recognised when it is probable they
will be settled and can be measured reliably. They are carried at the
remuneration rate expected to apply at the time of settlement.

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
A4 Taxation
6 MONTHS ENDED 31 DEC
INCOME TAX EXPENSE
UNAUDITED
2016
$M
2015
$M
Current income tax charge
62
56
Deferred tax
(18 )
(16 )
Total income tax
44 40
Reconciliation to profit before tax
Profit before tax
168
144
Income tax at applicable rates
47
40
Expenditure not deductible for tax
(3)
-
Income tax expense
4440
Income tax expense
Income tax expense is the income tax assessed on taxable profit
for the period. Taxable profit differs from profit before tax reported
in the income statement as it excludes items of income and expense
that are taxable or deductible in other periods and also excludes
items that will never be taxable or deductible. Meridian’s liability
for current tax is calculated using tax rates that have been enacted
or substantively enacted at balance date, being 28% for New Zealand
and 30% for Australia.
Income tax expense components are current income tax and deferred tax.

PAGE 23
B1 Property, plant and equipment
UNAUDITEDAUDITED
POSITION AS AT 31 DEC 2016
$M
31 DEC 2015
$M
30 JUN 2016
$M
Opening net book value
7,7 7 1
7, 0 9 7 7, 0 9 7
Additions
12
12 42
Transfers – intangible assets
(9)
-(2)
Impairment
-
-(6)
Disposals
(2)
(2) (2)
Foreign currency exchange rate movements
(1)
(30) (40)
Generation structures and plant revaluation
-
- 899
Depreciation expense
(123 )
(107) ( 217 )
Closing net book value
7,648 6,970 7,7 7 1
Recognition and measurement
Generation structures and plant assets (including land and
buildings) are held on the balance sheet at their fair value at
the date of revaluation, less any subsequent depreciation and
impairment losses. All other property, plant and equipment is
stated at historical cost less accumulated depreciation and any
accumulated impairment losses.
Fair value and revaluation of generation structures
and plant
Meridian revalued its generation structure and plant assets at
30 June 2016 using an independent valuer, resulting in a net
increase of $899 million in the carrying value of this asset class.
A review and assessment of key valuation inputs included in that
valuation have been undertaken, indicating that there has been
no material change in fair value.
B2 Intangible assets
UNAUDITEDAUDITED
POSITION AS AT 31 DEC 2016
$M
31 DEC 2015
$M
30 JUN 2016
$M
Opening net book value
47
47 47
Additions
10
6 17
Transfers – property, plant and equipment
9
- 2
Amortisation expense
(9)
(10 ) (19 )
Closing net book value
57 43 47
B. Assets used to generate and sell electricity
IN THIS SECTION
This section shows the assets Meridian uses in the production and sale of electricity to generate operating revenue.
In this section of the summary notes there is information about:
• property, plant and equipment; and
• intangible assets.
THE NUMBERS Group financial statements for the six months ended 31 December 2016

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
C1 Capital management
Capital risk management objectives
Meridian’s objectives when managing capital are to provide
appropriate returns to shareholders whilst maintaining a capital
structure that safeguards its ability to remain a going concern
and optimises the cost of capital.
Capital is defined as the combination of shareholders’ equity,
reserves and net debt.
Meridian manages its capital through various means including:
• adjusting the amount of dividends paid to shareholders;
• raising or returning capital; and
• raising or repaying debt.
Meridian regularly monitors its capital requirements using
various measures that consider debt facility financial covenants
and credit ratings, the key measures being net debt to EBITDAF
and interest cover. The principal external measure is Meridian’s
credit rating from Standard & Poor’s, which is unchanged at BBB+.
Meridian is in full compliance with debt facility financial covenants.
POSITION AS AT
NOTE
UNAUDITEDAUDITED
31 DEC 2016
$M
31 DEC 2015
$M
30 JUN 2016
$M
Share capital
1,597
1,5961,597
Retained earnings
( 612 )
(356) (458)
Other reserves
3,912
3,284 3,911
4,897 4,524 5,050
Drawn borrowings
C4
1,16 3
1,112 1,136
Finance lease payable
47
49 48
Less: cash and cash equivalents
(44)
(69) (118 )
1,16 6 1,092 1,066
Capital
6,063 5,616 6,116
C2 Earnings per share
BASIC AND DILUTED EPS
UNAUDITED
31 DEC 2016 31 DEC 2015
Profit after tax attributable to shareholders of the parent company ($M)
124
104
Weighted average number of shares used in the calculation of EPS
2,563,000,000
2,563,000,000
Basic and diluted EPS (CPS)
4.8
4.1
C. Managing funding
IN THIS SECTION
This section explains how Meridian manages its capital structure and working capital, the various funding sources and how dividends
are returned to shareholders. In this section of the summary notes there is information about:
• equity and dividends; and
• net debt.

PAGE 25
THE NUMBERS Group financial statements for the six months ended 31 December 2016
C3 Dividends
6 MONTHS ENDED 31 DEC
DIVIDENDS DECLARED & PAID
UNAUDITED
2016
$M
2015
$M
Final ordinary and special dividend 2016:
10.8cps (2015: 12.0cps)
278
307
Total dividends paid
278 307
DIVIDENDS DECLARED AND NOT RECOGNISED AS A LIABILITY
Interim ordinary dividend 2016: 5.3cps
(2015: 5.1cps)
137
131
Interim special dividend 2016: 2.4cps
(2015: 2.4cps)
63
63
Dividend policy
Meridian’s dividend policy considers free cash flow, working capital
requirements, the medium-term investment programme, maintaining
a BBB+ credit rating and risks from short-term and medium-term
economic, market and hydrology conditions.
Subsequent event – dividend declared
On 21 February 2017 the Board declared a partially imputed
interim ordinary dividend of 5.33 CPS. Additionally the Board
declared an unimputed special dividend of 2.44 CPS.
C4 Borrowings
CURRENCY
BORROWED IN
UNAUDITEDAUDITED
POSITION AS AT31 DEC 201631 DEC 201530 JUN 2016
GROUP (NZ$M)
DRAWN
FACILITY
AMOUNT
TRANSACTION
COSTS &
FAIR VALUE
ADJUSTMENT
CARRYING
AMOUNT
DRAWN
FACILITY
AMOUNT
TRANSACTION
COSTS &
FAIR VALUE
ADJUSTMENT
CARRYING
AMOUNT
DRAWN
FACILITY
AMOUNT
TRANSACTION
COSTS &
FAIR VALUE
ADJUSTMENT
CARRYING
AMOUNT
Current borrowings
Unsecured borrowings
NZD
180 (1) 179
62 - 62 215 (1) 214
Unsecured borrowings
AUD
8 - 8
------
Unsecured borrowings
USD
---
146 3 149 ---
Total current borrowings
188 (1) 187 208 3 211 215 (1) 214
Non-current borrowings
Unsecured borrowings
NZD
545 (2) 543
470 (1) 469 490 (1) 489
Unsecured borrowings
USD
430 69 499
434 86 520 431 80 511
Total non-current
borrowings
975 67 1,042 904 85 989 921 79 1,000
Total borrowings
1,16 3 66 1,229 1,112 88 1,200 1,13 6 78 1,214
Meridian has committed bank facilities of $620 million of which $307 million was undrawn at 31 December 2016. The expiry dates of these facilities
range from July 2018 to April 2026.
Borrowings, measurement and recognition
Borrowings are recognised initially at the fair value of the drawn facility amounts, net of transaction costs paid. Borrowings are subsequently stated
at amortised cost using the effective interest method. Any borrowings that have been designated as hedged items (USD borrowings) are carried
at amortised cost plus a fair value adjustment under hedge accounting requirements. Any borrowings denominated in a foreign currency are
retranslated to the functional currency at each reporting date. Any retranslation effect is included in the ‘Transaction costs & fair value adjustment’
column in the above movement table.
Meridian uses cross-currency interest rate swap (CCIRS) hedge contracts to manage its exposure to interest rates and borrowings sourced in
currencies different from that of the borrowing entity’s reporting currency.

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
C4 Borrowings continued
Fair value of items held at amortised cost
UNAUDITEDAUDITEDUNAUDITEDAUDITED
POSITION AS AT31 DEC 2016
$M
31 DEC 2015
$M
30 JUN 2016
$M
31 DEC 2016
$M
31 DEC 2015
$M
30 JUN 2016
$M
GROUP CARRYING VALUE FAIR VALUE
Renewable energy bonds
75
75 75
77
80 79
Retail bonds
150
- 150
152
- 159
EKF facility
95
105 100
103
115 110
Cash and cash equivalents, trade receivables, payables and accruals and finance lease payables are carried at amortised cost on the balance sheet
and their carrying value approximates fair value.
Term borrowings are also held at amortised cost. Within term borrowings there are longer-dated, fixed-interest-rate instruments that are not in
hedge accounting relationships. The carrying values and estimated fair values of these instruments are noted in the table above.
The fair value of Meridian’s renewable energy bonds and retail bonds is calculated by reference to quoted prices on the NZX. The fair value of
Meridian’s EKF facility (provided by the official export credit agency of Denmark) is calculated using a discounted cash flow calculation. In terms
of the fair value hierarchy, these are classified as Level 2 instruments (a lack of liquidity on the NZX precludes them from being classified as Level 1).
A definition of levels is included in D1 Financial instruments on page 27.
Carrying value approximates fair value for all other instruments within term borrowings.

PAGE 27
D1 Financial instruments
Fair value of hedging financial instruments
The recognition and measurement of hedging financial
instruments requires management estimation and judgement.
The table below shows the fair value of financial instrument
assets and liabilities, grouped within a three-level fair
value hierarchy (see the next page for detail) based on the
observability of valuation inputs. There have been no transfers
between levels in respect of these assets and liabilities.
UNAUDITEDUNAUDITEDAUDITED
POSITION AS AT31 DEC 201631 DEC 201530 JUN 2016
LEVEL 1LEVEL 2LEVEL 3TOTALLEVEL 1LEVEL 2LEVEL 3TOTALLEVEL 1LEVEL 2LEVEL 3TOTAL
Financial instruments – assets
Held for trading:
Electricity hedges
26 - 17 43
14 - 77 91 16 - 98 114
LGC forward contracts,
options and holdings
43 - 1 44
30 - 7 37 16 - 1 17
Electricity options
-- 117 117
-- 43 43 -- 121 121
Interest rate swaps
- 8 - 8
- 12 - 12 - 15 - 15
Foreign exchange contracts
- 1 - 1
----- 1 - 1
Cash flow hedge:
Cross-currency
interest rate swaps
-(2) -(2)
-(6) -(6) -(4) -(4)
Fair value hedge:
Cross-currency
interest rate swaps
- 70 - 70
- 90 - 90 - 81 - 81
Total
69 77 135 281 44 96 127 267 32 93 220 345
Current
95
79 71
Non-current
186
188 274
Financial instruments – liabilities
Held for trading:
Electricity hedges
13 - 20 33
5 - 37 42 10 - 35 45
LGC forward contracts,
options and holdings
-- 45 45
4 - 45 49 -- 39 39
Electricity options
----
-- 1 1 -- 1 1
Interest rate swaps
- 98 - 98
- 96 - 96 - 166 - 166
Total
13 98 65 176 9 96 83 188 10 166 75 251
Current
55
42 48
Non-current
121
146 203
D. Financial instruments
IN THIS SECTION
In this section of the summary notes there is information:
• analysing the financial (hedging) instruments used to manage risk; and
• outlining Meridian’s fair value techniques and key inputs.
THE NUMBERS Group financial statements for the six months ended 31 December 2016

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
UNAUDITEDUNAUDITEDAUDITED
31 DEC 201631 DEC 201530 JUN 2016
ELECTRICITY
HEDGES
LGC
FORWARD
CONTRACTS,
OPTIONS &
HOLDINGS
ELECTRICITY
OPTIONSTOTAL
ELECTRICITY
HEDGES
LGC
FORWARD
CONTRACTS,
OPTIONS &
HOLDINGS
ELECTRICITY
OPTIONSTOTAL
ELECTRICITY
HEDGES
LGC
FORWARD
CONTRACTS,
OPTIONS &
HOLDINGSELECTRICITYTOTAL
Opening balance
63 (38) 120 145
33 - 27 60 33 - 27 60
Hedges acquired
----
- 1 28 29 - 1 103 104
Hedges sold
----
--(1) (1) --(2) (2)
Re-measurement
(64) (6) (3) (73)
6 (39) (12 ) (45) 25 (39) (8) (22)
Settlements
(2) --(2)
1 -- 1 5 -- 5
Closing balance
(3) (44) 117 70 40 (38) 42 44 63 (38) 120 145
· Level 1 Inputs – Quoted prices (unadjusted) in active markets
for identical assets or liabilities that the entity can access at the
measurement date. Electricity hedges traded on the ASX, as well
as LGCs traded on the open LGC market, are classified as Level 1.
· Level 2 Inputs – Either directly (i.e. as prices) or indirectly (i.e. derived
from prices) observable inputs other than quoted prices included in
Level 1. Interest rate swaps, cross-currency interest rate swaps and
foreign exchange contracts have Level 2 inputs and are valued
using a discounted cash flow valuation technique.
· Level 3 Inputs – Inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
The table below provides a summary of the movements in the fair
value of level 3 financial instruments:
D1 Financial instruments continued
Fair value technique and key inputs
In estimating the fair value of an asset or liability, Meridian uses market-observable data to the extent it is available.
The Audit and Risk Committee of Meridian determines the overall appropriateness of key valuation techniques and inputs for fair value
measurement. The Chief Financial Officer explains fair value movements in his reports to the Board.
Where the fair value of a financial instrument is calculated as the present value of the estimated future cash flows of the instrument (DCFs),
key inputs and assumptions are used by the valuation technique. These are:
•  forward price curves referenced to the ASX for electricity, published market interest rates and published forward foreign exchange rates;
• discount rates based on the forward interest rate swap curve adjusted for counterparty risk; and
• contracts run their full term.
The table below describes the additional key inputs and techniques used in the valuation of level 3 financial instruments:
FINANCIAL ASSET
OR LIABILITYDESCRIPTION OF INPUT
RANGE OF SIGNIFICANT
UNOBSERVABLE INPUTS
RELATIONSHIP OF INPUT
TO FAIR VALUE
Electricity hedges
and options, valued
using DCFs
Price. Where quoted prices are not
available or not relevant (i.e. for
long-dated contracts), Meridian’s
best estimate of long-term forward
wholesale electricity prices is used.
This is based on a fundamental
analysis of expected demand and
the cost of new supply.
$89MWh to $111MWh (in real
terms), excludes observable
ASX prices.
An increase in forward wholesale
electricity price increases the
fair value of buy hedges and
decreases the fair value of sell
hedges. A decrease in forward
wholesale electricity price has
the opposite effect.
LGC forward contracts
and options, valued
using DCFs/Black-Scholes
Price. Based on a forward LGC
price curve from a third-party
broker and benchmarked against
market spot prices.
$87 – $90.An increase in the forward LGC
price decreases the fair value of sell
hedges and increases the fair value
of buy hedges. A decrease in forward
LGC prices has the opposite effect.
Other factors. Include a calibration
factor applied to forward price
curves as a consequence of initial
recognition differences.

PAGE 29
THE NUMBERS Group financial statements for the six months ended 31 December 2016
D1 Financial instruments continued
Initial recognition difference
An initial recognition difference arises when the modelled value of an electricity hedge differs from the transaction price (which is the best evidence
of fair value). This difference is accounted for by recalibrating the valuation model by a fixed percentage to result in a value at inception equal to the
transaction price. This recalibration is then applied to future valuations over the life of the contract.
The resulting difference shown in the table reflects potential future gains or losses yet to be recognised in the income statement over the remaining
life of the contract.
POSITION AS AT
MOVEMENTS IN RECALIBRATION DIFFERENCES ARISING FROM ELECTRICITY HEDGING
UNAUDITEDAUDITED
31 DEC 2016
$M
31 DEC 2015
$M
30 JUN 2016
$M
Opening difference
284
(964) (964)
Initial differences on new hedges
-
114 359
Volumes expired and amortised
1
896 905
Recalibration for future price estimates and time
1
42
(1) (16 )
Closing difference
327 45 284
1 Includes the release of deferred differences arising from changes in factors that market participants would take into account when pricing the hedges.
Level 3 analysis
The following is a summary of how financial instruments that have been classified as level 3 (certain electricity hedges) have been recognised in the
income statement:
• Fair value movements recognised in net change in fair value of electricity and other hedges in 1H FY2017 are $(75) million (1H FY2016: $(46) million).
• Of the above, $(67) million (HY2015: $(45) million) relates to electricity and other hedges held on the balance sheet at 31 December.
• Electricity and other hedges settled in HY2016 and recognised in operating revenue and operating expenses are $2 million (HY 2015:$(1) million).

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
E1 Group structure
The following changes occurred in the six months:
• On 1 December 2016 Meridian sold its entire interest in Damwatch Engineering Limited.
• On 4 November 2016 Dam Safety Intelligence Limited was incorporated as a subsidiary of the Group, to provide dam safety
consultancy services.
E2 Joint ventures
VOTING RIGHTSINTEREST HELDCARRYING VALUE
UNAUDITEDAUDITEDUNAUDITEDAUDITEDUNAUDITEDAUDITED
NAME OF ENTITY
COUNTRY
& DATE OF
INCORPORATION
PRINCIPAL
ACTIVITY
31 DEC
2016
31 DEC
2015
30 JUN
2016
31 DEC
2016
31 DEC
2015
30 JUN
2016
31 DEC
2016
31 DEC
2015
30 JUN
2016
EDDI Project JVNew Zealand,
01/05/12
Dam
management
systems
-
50%50%
-
50%50%
-
--
Hunter Downs
Development
Company
New Zealand,
01/0 7/ 13
Irrigation
development
-
50%-
-
63%-
-
--
Meridian sold its shares in Hunter Downs Development Company on 17 April 2016. When Damwatch Engineering Limited was sold on
1 December 2016 the Group’s investment in EDDI Project JV ended.
E3 Contingent assets and liabilities
Other than the guarantees disclosed in the 30 June 2016 financial statements, there were no contingent assets or liabilities
at 31 December 2016 (31 December 2015: nil, 30 June 2016: nil).
E4 Subsequent events
There are no subsequent events other than dividends declared on 21 February 2017. Refer to Note C3 – Dividends for further details.
E5 Changes in financial reporting standards
In the current period, Meridian has adopted all mandatory new
and amended standards. The application of these new and
amended standards has had no material impact on the amounts
recognised or disclosed in the financial statements.
Meridian is not aware of any standards issued but not yet effective
(other than those listed below) that would materially affect the
amounts recognised or disclosed in the financial statements.
Meridian intends to adopt when they become mandatory.
NZ IFRS 15 Revenue from Contracts with Customers
(effective 1 January 2018) – NZ IFRS 15 will be effective in
Meridian’s 2019 financial year. The full impact of this standard
has not yet been determined.
NZ IFRS 9 Financial Instruments (effective 1 January 2018) –
NZ IFRS 9 will be effective in Meridian’s 2019 financial year.
This standard requires all financial assets to be measured at
fair value, unless the entity’s business model is to hold the assets
to collect contractual cash flows and contractual terms give rise
to cash flows that are solely payments of interest and principal,
in which case they are measured at amortised cost. The standard
also broadens the eligibility for hedge accounting as it introduces
an objectives-based test that focuses on the economic
relationship between hedged items and hedging instruments.
The full impact of this standard has not yet been determined.
NZ IFRS 16 Leases (effective 1 January 2019) – NZ IFRS 16 will be
effective in Meridian’s 2020 financial year. The full impact of this
standard has not yet been determined.
E. Group structure and other

PAGE 31
Independent review report to the
shareholders of Meridian Energy Limited
We have reviewed the condensed interim financial statements of
Meridian Energy Limited and its subsidiaries (‘the Group’), which
comprise the balance sheet as at 31 December 2016, and the income
statement, comprehensive income statement, statement of changes in
equity and statement of cash flows for the six-month period ended on
that date, and other explanatory information on pages 17 to 30.
This report is made solely to the company’s shareholders, as a body.
Our review has been undertaken so that we might state to the company’s
shareholders those matters we are required to state to them in a 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 the
company’s shareholders as a body, for our engagement, for this report,
or for the opinions we have formed.
Board of Directors’ Responsibilities
The Board of Directors is responsible on behalf of the Group for the
preparation and fair presentation of the condensed interim financial
statements, in accordance with NZ IAS 34 Interim Financial Reporting
and IAS 34 Interim Financial Reporting and for such internal control
as the Board of Directors determines is necessary to enable the
preparation and fair presentation of condensed interim financial
statements that are free from material misstatement, whether due
to fraud or error.
The Board of Directors is also responsible for the publication
of the condensed interim financial statements, whether in printed
or electronic form.
Our Responsibilities
The Auditor-General is the auditor of the Group pursuant to section
5(1)(f ) and section 14 of the Public Audit Act 2001. Pursuant to
section 32 of the Public Audit Act 2001, the Auditor-General has
appointed Trevor Deed of Deloitte Limited to carry out an annual
audit of the Group.
Our responsibility is to express a conclusion on the condensed 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’). NZ SRE 2410
requires us to conclude whether anything has come to our attention that
causes us to believe that the condensed interim financial statements,
taken as a whole, have not been prepared, in all material respects, in
accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting. As the auditor of Meridian Energy Limited, NZ SRE
2410 requires that we comply with the ethical requirements relevant to
the audit of the annual financial statements.
A review of the condensed 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.
We did not evaluate the security and controls over the electronic
publication of the condensed interim financial statements.
In addition to this review and the audit of the Group annual financial
statements, we have carried out other engagements consisting of a
carbon emissions audit, audit of the securities registers, assurance
engagements in relation to the vesting of the executive long-term
incentive plan and the solvency return of Meridian’s captive insurance
company and trustee reporting, which are compatible with the
independence requirements of the Auditor-General, which incorporate
the independence requirements of the External Reporting Board.
These services have not impaired our independence as auditor of the
Group. In addition, principals and employees of our firm deal with the
Group on arm’s-length terms within the ordinary course of the trading
activities of the Group. Other than these engagements and arm’s-length
transactions, and in our capacity as auditor acting on behalf of the
Auditor-General, we have no relationship with, or interests in, the Group.
Conclusion
Based on our review, nothing has come to our attention that causes
us to believe that the condensed interim financial statements of the
Group do not present fairly, in all material respects, the financial
position of the Group as at 31 December 2016 and its financial
performance and cash flows for the six-month period ended on that
date in accordance with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting.
TREVOR DEED
for Deloitte Limited
On behalf of the Auditor-General
21 February 2017
WELLINGTON, NEW ZEALAND
THE NUMBERS Group financial statements for the six months ended 31 December 2016

MERIDIAN ENERGY LIMITED Interim Report for the six months ended 31 December 2016
Auditor
Trevor Deed
On behalf of the Office
of the Auditor-General
Deloitte
PO Box 1990
Wellington 6140
New Zealand
Banker
Westpac Wellington
New Zealand
Directors
Chris Moller, Chair
Peter Wilson, Deputy Chair
Mark Cairns
Jan Dawson
Mary Devine
Anake Goodall
Stephen Reindler
Management team
Mark Binns, Chief Executive
Paul Chambers
Neal Barclay
Jacqui Cleland
Ed McManus
Sandra Pickering
Jason Stein
Guy Waipara
If you have any questions
or would like to comment
on this report, please email
investors@meridianenergy.co.nz
Directory
Registered office
Meridian Energy Limited
33 Customhouse Quay
Wellington Central
Wellington 6011
New Zealand
PO Box 10840
The Terrace
Wellington 6143
New Zealand
T +64 4 381 1200
F +64 4 381 1201
Offices
Quad 5, Level 3
4 Leonard Isitt Drive
Auckland Airport
Auckland 2022
New Zealand
PO Box 107174
Auckland Airport
Auckland 2150
New Zealand
T +64 9 477 7800
287-293 Durham Street North
Christchurch Central
Christchurch 8013
New Zealand
PO Box 2146
Christchurch 8140
New Zealand
T +64 3 357 9700
Corner of Market Place and
Mackenzie Drive
Twizel 7901
Private Bag 950
Twizel 794 4
New Zealand
T +64 3 435 9393
Australian
registered office
Meridian Energy
Australia Pty Limited
Level 15
357 Collins Street
Melbourne VIC 3000
Australia
T +61 3 8370 2100
F +61 3 9620 5235
Share Registrar
New Zealand
Computershare
Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland 0622
Private Bag 92119
Victoria Street West
Auckland 1142
T +64 9 488 8777
F +64 9 488 8787
enquiry@computershare.co.nz
www.investorcentre.com/nz
Share Registrar
Australia
Computershare
Investor Services Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford, VIC 3037
GPO Box 3329
Melbourne, VIC 3001
Australia
T 1800 501 366
(within Australia)
T +61 3 9415 4083
(outside Australia)
F +61 3 9473 2500
enquiry@computershare.co.nz

ISSN 1173-6305
Front cover image – Stella the kākāpō on Whenua Hou (Codfish Island).
Back cover image – Department of Conservation workers weighing Stella the kākāpō on Whenua Hou (Codfish Island). Images courtesy of Sabine Bernert.
meridian.co.nz

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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 TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change







whether:
Interim







YearSpecialDRP 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 security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount 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 priceWithholding 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. In the case
of applications this must be the
last business day of the week.
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:
31 March, 201713 April, 2017
$$0.0054$0.0182
NZ Dollars$0.0083
$136,607,900
Date Payable
13 April, 2017
Enter N/A if not
applicable
NZMELE0002S7
In dollars and cents
Retained Earnings
$0.0533
Ordinary Shares
+64 4 381 12002222017
EMAIL: announce@nzx.com
Notice of event affecting securities
1
Meridian Energy Limited
Jason SteinDirectors' resolution

---

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 TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change







whether:
InterimYearSpecial







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 security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount 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 priceWithholding 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. In the case
of applications this must be the
last business day of the week.
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:
31 March, 201713 April, 2017
$62,537,200
Date Payable
13 April, 2017
$$0.0081$0.0000
In dollars and cents
Retained Earnings
$0.0244
NZ Dollars$0.0000
Enter N/A if not
applicable
Ordinary Shares
NZMELE0002S7
EMAIL: announce@nzx.com
Notice of event affecting securities
1
Meridian Energy Limited
Jason SteinDirectors' resolution
+64 4 381 12002222017

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Powering today, protecting tomorrow
MERIDIAN ENERGY LIMITED
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Disclaimer The information in this presentation was prepared by Meridian Energy with due care and attention. However,
the
information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the information. In addition, neither the company nor any of its directors, employees, shareholders nor any other person shall have liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it. This presentation may contain forward-looking statements and projections. These reflect Meridian’s current expectations, based on what it thinks are reasonable assumptions. Meridian gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or NZX or ASX listing rules, Meridian is not obliged to update this presentation after its release, even if things change materially. This presentation does not constitute financial advice. Further, this presentation is not and should not be construed as an offer to sell or a solicitation of an offer to buy Meridian Energy securities and may not be relied upon in connection with any purchase of Meridian Energy securities. This presentation contains a number of non-GAAP financial measures, including Energy Margin, EBITDAF, Underlying NPAT and gearing. Because they are not defined by GAAP or IFRS, Meridian's calculation of these measures may differ from similarly titled measures presented by other companies and they should not be considered in isolation from, or construed as an alternative to, other financial measures determined in accordance with GAAP. Although Meridian believes they provide useful information in measuring the financial performance and condition of Meridian's business, readers are cautioned not to place undue reliance on these non-GAAP financial measures. The information contained in this presentation should be considered in conjunction with the condensed interim financial statements, which are included in Meridian’s interim report for the six months ended 31 December 2016 and is available at:
http://www.meridianenergy.co.nz/investors/

All currency amounts are in New Zealand dollars unless stated otherwise.
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Highlights
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1
Net profit after tax adjusted for the effects of non-cash fair value movements and one-off items

Progress on strategy


 
TPM supplementary consultation paper released,
implementation expected by April 2020 (latest)


 
Election year focus unlikely to be on electricity
market structure
4
Maintaining an
open market in
which we can
compete
effectively
Developing
opportunities
for earnings
growth


 
NZ wind options ready to meet expected new supply
needs after 2019


 
Powershop Australia launch in Queensland


 
First Powershop UK milestone met
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Progress on strategy
5
Protecting and
maximising our
generation
asset and
wholesale
position
Growing retail
value by making
things easy for our
customers and
optimising our
operations


 
NZAS back-to-back arrangements with other
generators in effect


 
Transmission grid resilient to a Tiwai exit


 
Ability of HVDC to deliver energy into the North
Island is robust


 
Two years through a $24m redevelopment of
core customer support systems


 
Small/medium business focus delivering
segment volume growth


 
Commitment to EVs with tailored tariffs, fleet
conversion and infrastructure partnerships
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40
50
60
70 80 90
100
Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020 Q3 2020
$/MWh
BENMORE ASX FUTURES SETTLEMENT PRICE
30 June 2016
30 September 2016
31 December 2016
30,000
35,000
40,000
45,000
2012 2013 2014 2015 2016
GWh
Calendar year ended 31 December
NATIONAL DEMAND
The New Zealand market

 
Warm winter temperatures and high
rainfall eliminated demand growth


 
National demand has decreased 2.0% in
the last six months and 1.4% in the last year


 
Decreased South Island irrigation load in
the second half of 2016 had a significant impact on annual demand (see next page)


 
Forward ASX prices have softened during
the last three months of 2016


 
Largely a reflection of near-term national
storage being high


 
High retail competition and switching
(dominated by premises moves) persist in the market
6
-1.4%
year on
year
change
source: Electricity Authoirty
+1.8%
+1.2%
-1.4%
Jul-Dec 2016
-2%
Oct-Dec 2016
-3%
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