February 2017 Operating Report

Monthly Operating Report
February2017

»For the month of February 2017 Contact recorded:
•Electricity and gas sales of 598 GWh (February
2016: 611 GWh)
•Netback of $81.27/MWh (February 2016:
$82.97/MWh)
•Cost of energy was $27.82/MWh (February 2016:
$30.69/MWh)
»Otahuhu futures settlement wholesale price for the 1st
quarter of 2017 (ASX):
•As at 10 March 2017: $55/MWh
•As at 28 February 2017: $56/MWh
•As at 31 January 2017: $54/MWh
»As at the 13th of March 2017, South Island storage was
101% of mean (28 February 2016: 111%) and North
Island storage was 166% of mean (28 February 2017:
154%)
»2016 was a leap year, with February 2016 having 29
days compared with 28 in February 2015 and 2017.
February overview
2
»Due to lower LPG production levels by our
suppliers Contact has imported LPG in January and
February 2017
Operating reportContact Energy Limited

Hydro storage and forward prices
New Zealand hydro storage against mean
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Mar
16
Apr
16
May
16
Jun
16
Jul
16
Aug
16
Sep
16
Oct
16
Nov
16
Dec
16
Jan
17
Feb
17
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201631/01/201728/02/2017
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201631/01/201728/02/2017
Operating reportContact Energy Limited

Wholesale market
Wholesale electricity pricingDistribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0%
10%
20%
30%
40%
50%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Feb 17Feb 16Jan 17
0%
10%
20%
30%
40%
50%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Feb 17Feb 16Jan 17
0
10
20
30
40
50
60
70
80
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY16 BENFY17 BENFY16 OTAFY17 OTA
Operating reportContact Energy Limited

-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1415161415161415161415161415161415161516171516171516151615161516
GWh
North IslandSouth IslandNZAS
Electricity demand
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on February 2016*
Total national demand (FY15, 16 and 17)
»New Zealand electricity demand was down 2.4% on February 2016 (up 0.5%
on February 2015). Prior period comparisons must be adjusted for the 2016
leap year.
•Cumulative 12 months demand for March 2016 to February 2017 of
40,680 GWh is 1.6% lower than the prior comparative period.
5
*Source: Contact – excludes large industrial
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
7%
(5%)
(5%)
(5%)
(2%)
(4%)
4%
6%
(5%)
(1%)
(4%)
(20%)
(4%)
(3%)
FY
Operating reportContact Energy Limited

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

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

Contact’s operational performance
8
DataMeasureThe month ended
February 2017
The month ended
February 2016
The month ended
January 2017
Eight months ended
February 2017
Eight months ended
February 2016
CustomerMass market electricity salesGWh233 245 254 2,429 2,548
Commercial & industrial electricity salesGWh336 341 334 2,729 2,659
Retail gas salesGWh29 25 37 458 428
Total electricity and gas salesGWh598 611 625 5,616 5,635
Average electricity sales price$/MWh171.77 170.88 171.33 177.66 178.88
Electricity direct pass through costs$/MWh(74.70) (72.45) (74.65) (75.91) (76.21)
Electricity and gas cost to serve$/MWh(13.62) (13.78) (13.09) (13.26) (13.78)
Netback$/MWh81.27 82.97 80.87 83.72 84.59
Electricity line losses%5%8%6%5%5%
Retail gas salesPJ0.1 0.1 0.1 1.6 1.5
LPG sales tonnes4,535 4,533 4,676 47,323 46,181
Electricity customer numbers
1
#421,000 421,000 420,500
Gas customer numbers
1
#62,500 60,500 62,500
LPG customer numbers (includes franchises)
1
#77,000 73,500 77,000
GenerationThermal generationGWh50 74 39 774 1,200
Geothermal generationGWh253 268 282 2,087 2,186
Hydro generationGWh314 298 355 2,743 2,560
Spot market generationGWh617 639 676 5,603 5,946
Spot electricity purchasesGWh593 628 615 5,364 5,422
CfD sales / (purchases)GWh58(2)8810545
Steam salesGWh51 50 55 455 486
GWAP $/MWh44.36 64.06 43.20 46.28 59.55
LWAP $/MWh(52.78) (70.17) (50.87) (52.56) (64.48)
LWAP/GWAP%119%110%118%114%108%
Gas used in internal generationPJ0.6 0.9 0.6 8.6 11.8
Gas storage net movement
2
PJ0.2 0.1 0.1 (0.5) (1.8)
Unit generation cost$/MWh(28.41) (29.90) (24.47) (30.04) (34.02)
Cost of energy$/MWh(27.82) (30.69) (24.31) (27.89) (30.59)
1
Data has been rounded to the nearest 500 and reflects numbers as at month end.
2
Cost of Energy does not include Gas purchases for retail sales
Operating reportContact Energy Limited

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

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