November 2017 Operating Report

Monthly Operating Report
November 2017

»For the month of November 2017 Contact recorded:
•Electricity and gas sales of 605 GWh (November
2016: 611 GWh)
•Netback of $78.45/MWh (November 2016:
$72.01/MWh)
•Cost of energy was $19.43/MWh (November 2016:
$27.18/MWh)
»Otahuhu futures settlement wholesale price for the 4
th
quarter of 2017 (ASX):
•As at 15 December 2017: $92/MWh
•As at 30 November 2017: $88/MWh
•As at 31 October 2017: $61/MWh
»As at 15 December 2017, South Island controlled
storage was 89% of mean (30 November 2017: 90%)
and North Island storage was 102% of mean (30
November 2017: 111%)
•As at 15 December, total Clutha scheme storage
(including uncontrolled storage) was 51% of mean
•Inflows into Contact’s Clutha catchment for
November 2017 were at 69% of mean (October
2017 47% of mean)
November overview
Operating reportContact Energy Limited
2
»The Taranaki Combined Cycle plant (TCC) will be
available to generate after refurbishment from 19
December 2017

Hydro storage and forward prices
New Zealand controlled hydro storage against mean
Operating reportContact Energy Limited
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Dec
16
Jan
17
Feb
17
Mar
17
Apr
17
May
17
Jun
17
Jul
17
Aug
17
Sep
17
Oct
17
Nov
17
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201631/10/201730/11/2017
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201631/10/201730/11/2017

Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Nov 17Nov 16Oct 17
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Nov 17Nov 16Oct 17
0
20
40
60
80
100
120
140
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY17 BENFY18 BENFY17 OTAFY18 OTA

-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1516171516171516171516171516171516161716171617161716171617
GWh
North IslandSouth IslandNZAS
Electricity demand
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Operating reportContact Energy Limited
Regional demand change (%) on November 2016
Total national demand (FY16, 17 and 18)
»New Zealand electricity demand was up 3.6% on November 2016 (flat on
November 2015).
»Cumulative 12 months demand for December 2016 to November 2017 of
41,098 GWh is 0.7% higher than the prior comparative period.
5
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(3%)
5%
1%
(4%)
6%
61%
(1%)
(3%)
(1%)
1%
2%
(2%)
1%
Year
12%
9%
30%
(9%)
0%

10
15
20
25
30
35
40
45
50
55
60
-
100
200
300
400
500
600
700
800
900
16 17 16 17 16 17 16 17 16 17 16 17 17 17 17 17 17
$/MWh
GWh
GeothermalHydroThermalCost of Energy
Contact’s Generation business performance
Generation mix and cost of energy (FY17 and 18)
Operating reportContact Energy Limited
6
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year

60
65
70
75
80
85
90
95
100
105
110
0
100
200
300
400
500
600
700
800
900
16 17 16 17 16 17 16 17 16 17 16 17 17 17 17 17 17
$/MWh
GWh
Commercial & industrial electricity salesMass market electricity sales
Retail gas salesNetback
Retail sales volumes and netback (FY17 and 18)
Contact’s Customer business performance
7
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Operating reportContact Energy Limited

»Contact hosted invited institutional investors and
research analysts in November
»Dennis Barnes, Contact Chief Executive, presented a
brief update of current performance and the outlook for
distributions to shareholders which is available at
https://contact.co.nz/aboutus/investor-centre/reports-
and-presentations
»A summary of FY18 forecasts provided to the market
includes:
•Forecast capital expenditure for FY18 of between
$70 million to $80 million. Capital expenditure for
the year expected to sit within the guided range.
•Forecast operating expenditure for FY18 of
between $225 million to $235 million. Year to date
operating costs are tracking toward the lower end of
the target.
•Forecast depreciation for FY18 of between $215
million and $220 million.
•Forecast net interest for FY18 of between $88
million and $90 million.
•Contact is targeting an FY18 ordinary dividend of
32 cents per share.
Investor briefing and update
Operating reportContact Energy Limited
8
»Delivering strong operational performance and
providing value for customers and shareholders

Contact’s operational performance
9
Operating reportContact Energy Limited
DataMeasureThe month ended
November 2017
The month ended
November 2016
The month ended
October 2017
Five months ended
November 2017
Five months ended
November 2016
CustomerMass market electricity salesGWh263 261 292 1,661 1,681
Commercial & industrial electricity salesGWh286 299 284 1,423 1,523
Retail gas salesGWh57 50 79 408 352
Total electricity and gas salesGWh605 611 655 3,492 3,557
Average electricity sales price$/MWh178.58 171.41 183.87 189.96 187.35
Electricity direct pass through costs$/MWh(81.00) (80.71) (83.03) (83.86) (81.20)
Electricity and gas cost to serve$/MWh(13.74) (14.87) (12.29) (11.60) (13.67)
Netback$/MWh78.45 72.01 81.99 86.73 86.13
Electricity line losses%8%6%6%6%5%
Retail gas salesPJ0.2 0.2 0.2 1.3 1.2
LPG sales tonnes5,508 5,882 6,064 33,250 32,749
Electricity customer numbers
1
#421,000 422,500 422,500
Gas customer numbers
1
#64,500 62,500 64,500
LPG customer numbers (includes franchises)
1
#83,500 76,000 82,500
GenerationThermal generationGWh114 54 29 764 648
Geothermal generationGWh279 208 292 1,461 1,256
Hydro generationGWh293 369 305 1,377 1,686
Spot market generationGWh687 632 625 3,602 3,590
Spot electricity purchasesGWh595 594 611 3,290 3,380
CfD salesGWh3820195172
Steam sales / (purchases)GWh61 60 64 276 294
Commercial & industrial electricity salesGWh10 9 10 40 43
GWAP $/MWh93.05 41.55 52.67 86.99 48.91
LWAP $/MWh(101.74) (47.46) (58.59) (93.69) (54.25)
LWAP/GWAP%109%114%111%108%111%
Gas used in internal generationPJ1.3 0.7 0.5 7.5 6.8
Gas storage net movement
2
PJ(0.0) 0.3 0.6 (0.1) (1.1)
Unit generation cost$/MWh(31.35) (32.60) (29.05) (33.76) (32.54)
Cost of energy$/MWh(19.43) (27.18) (30.22) (31.62) (26.54)

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 and direct electricity sales from Te Rapa
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
Operating reportContact Energy Limited
11
contact.co.nz
@ContactEnergy
Linkedin.com/company/contact-energy-ltd
Facebook.com/contactenergy
Youtube.com/ContactEnergy
investor.centre@contactenergy.co.nz
contact.co.nz/aboutus/investor-centre
+64 4 462 1323
+64 21 072 8578
Investor Relations
Matthew Forbes -Investor Relations Manager
Contact Energy