Contact Energy – HY18 Results and Half Year Report

Contact Energy Limited
Results for announcement to the market
Basis of Report Unaudited
Reporting Period 6 months to 31 December 2017
Previous Reporting Period 6 months to 31 December 2016
Amount ($m) Percentage
change
Operating Revenue and Other Income 1,194 15.1%
Earnings Before Net Interest Expense, Tax, Depreciation,
Amortisation, Change in Fair Value of Financial Instruments and
Other Significant Items (EBITDAF)
236 -10.6%

Profit/(loss) After Tax 58 -39.6%
Underlying Profit
1
59 -28.0%
Basic Earnings Per Share (Cents)

8.1 -39.6%
Diluted Earnings Per Share (Cents) 8.1 -38.6%
Underlying Profit Per Share (Cents)
1
- Basic 8.2 -28.7%
Net Tangible Assets Per Share (Dollars) 3.14 -2.0%

Distribution

Equivalent
amount per
security
Imputed amount per security
Cash dividend $0.13 $0.13

Record Date 16 March 2018
Dividend Payment Date 6 April 2018

Comments:
1. The Previous Reporting Period financial results have
been restated for the early adoption of NZ IFRS 15
Revenue from Contracts with Customers and NZ IFRS
16 Leases.
2. Underlying Profit and Underlying Profit per Share
exclude significant items that do not reflect the ongoing
performance of the Group. This is a non-statutory
measure.
Attachments:
 Half Year Report, including the Unaudited Financial Statements for the 6 months ended 31
December 2017
 KPMG Review Report
 NZX Appendix 7
 Media Release
 Investor Presentation

---

Half Year
Report 2018

2 Contact Half Year Report 2018 | Our Performance
Chief
Executive’s
Review
The first half of the financial
year has seen solid progress
on our strategy to optimise the
business to deliver strong cash
flows, with our cost efficiency
programme reducing cash spend
by $37 million, down 19% on
1H17. This has given the Board
the confidence to increase the
1H18 interim dividend by 18%
to 13 cents per share.
The first half of the 2018 financial year (1H18) has
seen encouraging progress in delivering improved
operational performance despite poor hydrology
and a highly competitive electricity market.
Delivering on our strategy, to optimise the Customer
and Generation businesses to increase cash
distributions to shareholders, has seen a range of
continuous improvement initiatives executed which
have improved the customer experience, increased
customer advocacy and delivered strong
operational performance in Generation.
This focus on cash flow has resulted in a
sustainable reduction in operating costs of $11
million, a 9% reduction on the prior comparative
period and a reduction in cash capital expenditure
of $26 million, a 40% reduction.
Despite this progress on the controllable aspects of
the business, Contact’s short term earnings have
been impacted by the weather. Low rainfall into our
South Island hydro catchments meant we were more
reliant on higher cost generation from our thermal
power stations and other generation companies.
As a result, Contact reported a statutory profit
for the six months ended 31 December 2017 of
$58 million; $38 million lower than the prior
corresponding period. EBITDAF fell by $28 million,
or 11%, to $236 million, while underlying profit after
tax decreased by $23 million, or 28%, to
$59 million.
Contact’s portfolio of long life generation assets
and the progress of our cost efficiency programme
has given the Board confidence in the strength of
Contact’s sustainable cash flow generation. The
interim dividend increased 18% to 13 cents per
share, compared to 11 cents per share for 1H17, and
is fully imputed and payable in April 2018.
Tena koe (Greetings),

4 Contact Half Year Report 2018 | Chief Executive’s Review
Chief Executive’s Review | Contact Half Year Report 2018 5
People
Contact continues to empower frontline workers
to play a meaningful role in identifying risks and
come up with ways to manage them. The strength
of our process safety systems and progress in
fostering a generative safety culture has led to
consulting opportunities, which not only provide a
small revenue stream but also confirm we are on
the right track.
Disappointingly, Contact recorded four low
severity injuries in the first six months with a Total
Recordable Injury Frequency Rate per million
hours worked (TRIFR) of 2.9. Although these
injuries were relatively minor, we continue to work
on identifying critical risks and key controls
through rigorous planning. A good example of this
was the recently completed major outage at the
Taranaki Combined Cycle plant where 125,000
hours were worked with no recordable injuries.
In line with advancing our safety culture, Contact
introduced a new Health Safety and Environmental
Management System, a simpler and more engaging
framework focused on learning and improving.
Alongside these improvements to safety systems,
the wellbeing of our people has been emphasised in
the period with focus on mental health, workload and
stress. Contact is implementing more creative and
flexible ways of working through a new employee
programme named ContactFlex to further foster
a more inclusive and diverse workplace.
Looking forward
Contact’s focus for the next six months remains
on delivering operating free cash flow growth by
focusing on the aspects of the business we can
control and maintaining a disciplined and transparent
approach to operating and capital expenditure.
The extent of the current dry period, its impact on
hydro inflows, and the government’s Electricity
Pricing Review all present potential operational
challenges for the remainder of the year. However,
there are also a number of exciting opportunities
for Contact to pursue.
Chief amongst these is the opportunity to
help New Zealand businesses transition to
low-emissions operating platforms as the
government’s policy focus shifts towards
decarbonising the economy and establishing
100% renewable energy targets.
Our generation assets, deep relationship with
customers, ongoing cost efficiency programme,
and lean operations gives us confidence in our ability
to execute on our strategy, manage the challenges,
and develop the opportunities ahead of us.
Generation business
Wholesale market conditions in the first half of the
financial year were book-ended by record low inflows
into our Clutha catchment. Contact’s Clutha hydro
generation in the six months was 438 GWh, 21%
below the prior comparative period with the impact
most acutely felt during high wholesale electricity
pricing periods in July, August and December.
While Contact’s flexible thermal fuel supply and
assets have ensured a reliable supply to
customers through these dry periods, the
additional fuel and carbon costs incurred
adversely affected our financial performance.
Wholesale electricity prices responded to the
national hydrological conditions with the average
price received for our generation nearly twice that
of the prior period, but this was insufficient to fully
offset the additional costs to operate our thermal
plant and purchase risk management contracts
from the wholesale market.
Our continuous improvement programme is
delivering results with strong plant availability
across the portfolio, lower operating costs and
record generation from our geothermal power
stations which was 11% higher than the prior
comparative period.
These conditions resulted in the Generation
business recording EBITDAF for the six months of
$173 million, $25 million lower than 1H17.
As part of our strategy we are always looking to
optimise our portfolio of assets. In December 2017,
Contact entered into an agreement to sell the
Ahuroa Gas Storage Facility to Gas Services New
Zealand for $200 million. The sale is subject to a
number of conditions being satisfied and is
expected to be completed by June 2018. Contact
will retain its rights to use the facility and will support
the facility’s expansion for other users, allowing us to
focus on our core generation business.
Customer business
The New Zealand energy market remains highly
competitive and is currently delivering good
outcomes for increasingly satisfied customers, who
now have a choice of providers offering competitive
pricing and new and innovative products.
Contact is competing well in this environment by
providing customers with choice, certainty and control
while systems-enabled operational improvements
continue to improve the customer experience.
More customers are choosing to stay with
Contact and we again recorded a level of switching
below that of the overall market, with customer
churn reducing to 19.1% over the last 12 months,
1.8 percentage points below the market average.
The ongoing migration of systems into the cloud
continues to deliver benefits by lowering operating
costs, improving performance, bolstering security
and enhancing the flexibility of our information
technology platform.
As a result of our ongoing work in the Customer
business, the cost to serve our customers is down
11% on the prior comparative period. We are also
seeing customers advocate for Contact in greater
numbers with a Net Promoter Score of +15 for the
period, up from +12 in the same period last year
and +14 for the 2017 financial year.
Despite this strong operational performance, the
Customer business EBITDAF fell by $3 million to
$63 million in the six months to 31 December 2017
compared to the same period a year ago. This was
mainly due to rising LPG product costs, which are
linked to international oil prices and foreign
exchange rates.
Dennis Barnes
Chief Executive Officer
EBITDAF, down 11% as record low hydro
inflows into our Clutha catchment
impacted Contact’s first half earnings
$236m
Operating free cash flow up 5% against
1H17, with cash spent on capital projects
down by $26m (40%)
19.7cps
Or 9% reduction in other operating
expenses against 1H17
$11m
Interim dividend up 18% to 13 cents per share
(1H17 11 cents per share), which will be fully
imputed for New Zealand based shareholders
13cps

6 Contact Half Year Report 2018 | Our Performance
Our Performance | Contact Half Year Report 2018 7
Our performance
for the period
THE LAST FIVE YEARS IN REVIEWUnit1H141H151H161H171H18
Revenue and other income$m 1,14 8 1,24 0 1,120 1,0371,194
Expenses$m 884 983 866 773 958
EBITDAF$m 264 257 254 264236
Profit (loss)$m 112 51 (116) 9658
Underlying profit$m 97 76 73 8259
Underlying profit per sharecps 13.2 10.4 10.0 11.58.2
Operating free cash flow$m55163200134141
Operating free cash flow per sharecps7. 622.227.31 8 .71 9 .7
Dividends declaredcps 11.0 11.0 11.0 11.0 13.0
Total assets$m 6,271 6,139 5,72 6 5,587 5,390
Total liabilities$m 2 ,73 2 2 ,6 17 2,848 2 ,76 6 2,663
Total equity$m 3,539 3,522 2,878 2,821 2 ,72 7
Gearing ratio%2828373635
Contact reported a statutory profit for the
six months ended 31 December 2017 of
$58m; $38m lower than the prior
corresponding period. EBITDAF was
$236m, $28m (11%) lower, while underlying
profit after tax reduced by $23m, 28% to
$59m. Operating free cash flow for the
period increased by $7m, up 5% to $141m
as Contact reduced other operating costs
by $11m and reduced capital expenditure
by $26m. Strong free cash flow enabled
Contact to reduce borrowings by $14m,
increase cash on hand by $10m and
increase the interim dividend to
shareholders by 18% to 13 cents per share.
0
50
100
150
200
250
300
($m)
1H181H171H161H151H14
EBITDAFSales volumes and customer numbers
Customer segment EBITDAF was down by
$3m (5%) with warmer temperatures reducing
electricity sales volumes, higher network costs
and increasing LPG product costs not being
fully passed through to customers. This was
offset by modest electricity price increases and
strong progress in reducing the operating costs to
serve our customers.
Electricity and gas netback was down $5m (1%) to
$347m on lower electricity sales volumes which
was partially offset by a higher netback per MWh.
Electricity purchase costs from the Generation
business reduced by $5m (2%) as a higher
electricity transfer price, which reflected higher
ASX futures settlement prices, was offset by lower
electricity sales volumes to customers.
LPG EBITDAF was down by $3m on higher
product costs which are linked to international
oil prices.
Generation segment EBITDAF was $25m (13%)
lower than 1H17 as cost of energy, which reflects
the total costs of supplying the energy sold,
increased by $20m to $124m. Lower hydro
generation in the period required more thermal
generation and market contracts to meet
electricity sales at a higher cost. Lower electricity
sales to the Customer business reduced
EBITDAF by $5m in the period.
A strong focus on the controllable aspects of the
business saw an $11m (9%) reduction in other
operating expenses. A result of lower labour
costs, reduced bad debt write-offs, reduction in
ICT costs and savings from operational
improvement initiatives.
Total retail electricity sales volumes for 1H18 were
down 136 gigawatt hours (GWh) to 3,611 GWh. Mass
market sales volumes were 2% lower than 1H17 as
customer usage per connection reduced by 2%
following a long-term trend of improving energy
efficiency and warmer weather during the second
quarter. Electricity customer numbers were on
average only 800 lower in 1H18 despite price
discounting by larger competitors and increasing
competition from new entrant retailers who are
attempting to build mass market customer bases.
C&I sales volumes were down by 101 GWh as Contact
was disciplined in signing up new C&I customers
during the dry winter period when pricing did not
provide adequate risk adjusted returns.
Lower sales volumes offset the higher electricity
transfer price, which reflects rising ASX prices as
demand increased and the excess hydro storage
seen in prior years was not repeated. These
combined to reduce Customer purchase costs
by $5m (2%).
Overall customer numbers for the year across
electricity, natural gas and LPG increased from
567,000 in June 2017 to 568,500.
Netback margins
Total electricity and gas netback was down by $5m
(1%) as Contact sold less electricity. Modest price
increases and a $7m reduction in operating costs to
serve our customers was offset by rising costs from
electricity distribution networks.
Mass market electricity netback per unit was up
$1/MWh. Mass market tariffs rose by $1/MWh,
however this was lower than the increase in network
costs, which rose by $4/MWh on 1H17. Operating
costs to serve were down by 9% which contributed to
the slight increase in mass market netback.
C&I electricity netback was up by $4/MWh as the
prices of new customer contracts tracked ASX
pricing higher on a tighter electricity supply and
demand balance. Retail gas netback was up by
$1/MWh on lower gas transmission costs and a
reduction in operating costs to serve our customers.
LPG margins reduced by $3m as a 1% increase in
sales volume was more than offset by higher LPG
product costs (up 17%).
0
50
100
150
200
250
300
Declared
dividends
Operating
free
cash flow
EBITDAFUnderlying
profit
Profit
($m)
1H171H18

8 Contact Half Year Report 2018 | Our Performance
Our Performance | Contact Half Year Report 2018 9
Wholesale price and volumesFuel mix and generation costs
In 1H18, the volume of electricity purchased from the
market decreased by 109 GWh in line with the
reduction in total electricity sales. The contribution
from wholesale financial markets was down by
$30m on 1H17; as Contact supplied Meridian with
80MW for the period to support Tiwai and called on
risk management contracts to support customer
sales during periods of low hydro inflows.
The average price received for generation was $92/
MWh, up $45/MWh compared to the same period
last year. The average price paid for purchases was
$99/MWh, $46/MWh higher than 1H17.
Weaker national hydro storage between May and
December and a tighter supply and demand
balance saw short dated ASX electricity futures
prices increase.
Total renewable generation in 1H18 was 3,361 GWh,
264 GWh (7%) lower than the prior corresponding
period as lower hydro inflows into our Clutha
catchments resulted in a 21% decline in hydro
generation (438 GWh). The lower hydro generation
was partially offset by record geothermal
production of 1,726 GWh as Contact obtained a
favourable variation to the Wairakei mass take
consent and did not repeat the 1H17 planned
outage at Te Mihi.
Higher national electricity demand (1% higher than
1H17) and dry South Island hydro conditions saw
additional thermal generation required to replace
hydro generation. Contact thermal generation was
up 281 GWh to 966 GWh, an increase of 165 GWh
at our CCGT station and 116 GWh increase from
the peaking plants. Contact has fully utilised the
flexibility of the thermal plants to manage portfolio
positions. Total gas used in generation was 9.5 PJ
at an average cost of $5.80/GJ. This included 2.3
PJ of gas extracted from Ahuroa, enabling Contact
to maintain a flexible gas contracting position.
0
50
100
150
200
($m)
1H181H171H161H151H14
0
20
40
60
80
100
($m)
1H181H171H161H151H14
UNDERLYING PROFITOPERATING FREE CASH FLOW
Underlying profit of $59m was down $23m (28%)
from 1H17 reflecting the reduction in EBITDAF.
Depreciation was $8m higher than the prior
period at $109m due to higher depreciation on
our thermal plants as utilisation increased and
accounting standards changes which require the
capitalisation of operating leases.
Net interest costs reduced by $5m on lower
average borrowings and a 0.3% reduction in
average interest rates.
The only significant item excluded from
underlying profit in 1H18 was the reduction in the
fair value of financial instruments of $1m, net of
tax.
Operating free cash flow for the period was $141m,
up $7m on 1H17 as Contact reduced stay in
business capital expenditure. Operating free cash
flow was negatively impacted by lower operating
earnings with EBITDAF down by $28m, partially
offset by a $6m reduction in significant items over
the prior period. Tax paid was down by $5m on 1H17
on lower operating earnings. Contact purchased
additional NZ carbon units at a higher price for
surrender in future periods, which contributed to a
unfavourable working capital movement of $8m
when compared to the prior period.
Stay in business capital expenditure was down by
$29m. Contact implemented detailed asset
management plans, and major capital projects in
1H17 were not repeated.
(Gwh)
0
1000
2000
3000
4000
5000
Swaption
Hydro
1H181H171H161H151H14
Swaption
Thermal
Hydro
Geothermal
CY21CY20CY19CY18CY17
0
20
40
60
80
100
($/MWh)
Dec 2017
Jun 2017Dec 2016
Otahuhu future prices

Financial Statements | Contact Half Year Report 2018 11
10 Contact Half Year Report 2018 | Our Performance
DISTRIBUTIONSFUNDING
About these
Financial Statements
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
These condensed interim Financial Statements are for Contact, a group made up of Contact Energy
Limited and the entities over which it has control or joint control.
Contact Energy Limited is registered in New Zealand under the Companies Act 1993. It is listed on
the New Zealand stock exchange (NZX) and the Australian Securities Exchange (ASX) and has bonds
listed on the NZX debt market. Contact is an FMC reporting entity under the Financial Markets
Conduct Act 2013.
Contact’s condensed interim Financial Statements for the six months ended 31 December 2017
provide a summary of Contact’s performance for the period and outline significant changes to
information reported in the Financial Statements for the year ended 30 June 2017 (2017 Annual
Report). The Financial Statements should be read with the 2017 Annual Report.
The Financial Statements have been prepared:
• In millions of New Zealand dollars
• In accordance with New Zealand generally accepted accounting practice (GAAP) and comply with
NZ IAS 34 and with IAS 34 Interim Financial Reporting
• Using the same accounting policies and significant estimation and critical judgments disclosed in
the 2017 Annual Report, except for those changed with Contact electing to early adopt NZ IFRS 15
Revenue from Contracts with Customers and NZ IFRS 16 Leases. The effect of these changes in
accounting policies are shown in note A1.
Certain comparative amounts have been restated due to the early adoption of NZ IFRS 15 Revenue
from Contracts with Customers and NZ IFRS 16 Leases and/or reclassified to conform with the
current period’s classification.
The Financial Statements were authorised on behalf of the Contact Energy Limited Board of Directors
on 9 February 2018:
Sir Ralph Norris
Chairman
Sue Sheldon
Director
The Board has resolved to increase the interim
dividend by 18% to 13 cents per share (1H17 11 cents
per share), which will be fully imputed for New
Zealand based shareholders and represents a
pay-out of 66% of operating free cash flow.
Contact’s distribution policy targets between
80-90% of operating free cash flow as an ordinary
dividend, on average over time, once our Standard
and Poor’s (S&P) net debt / EBITDAF ratio is below
2.8. This key metric currently sits above the 2.8
threshold. Contact is transitioning to the new
distribution policy by providing investors with a clear
and transparent dividend target. For FY18 the Board
is targeting an ordinary dividend of 32 cents per
share, an increase of 23% on FY17.
The face value of borrowings at 31 December 2017
was $1,531m. Contact continues to benefit from a
funding portfolio that is flexible, efficient and diverse
with a manageable maturity profile. Average
weighted cost of borrowings continued to improve,
falling 0.3% in 1H18 vs 1H17 as competitively priced
short term bank facilities and a retail bond issue
replaced higher cost historic debt.
The face value of net borrowings reduced by $14m
since 30 June 2017 as surplus cash was applied to
the reduction of debt. Cash on hand also increased
by $10m since 30 June 2017.
($m)
0
100
200
300
400
500
222120191823-2728-32
Yr
NEXI
USPP
Domestic
Bank
($m)
0
30
60
90
120
150
1H181H17
Net debt repayments
Gas sale & repurchase
Dividends
Growth capex
Uses of free cash flow
Increase in cash balance

12 Contact Half Year Report 2018 | Financial Statements
Financial Statements | Contact Half Year Report 2018 13
Statement of
Comprehensive Income
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
$mNote
Unaudited
6 months ended
31 Dec 2017
Restated
Unaudited
6 months ended
31 Dec 2016
Restated
Audited
year ended
30 Jun 2017
Revenue and other incomeA3 1,194 1,037 2,079
Operating expensesA3 (958) (773) (1,578)
Significant itemsA3 (2) 19 11
Depreciation and amortisationC1 (109) (101) (208)
Net interest expense (43) (48) (93)
Profit before tax 82 134 211
Tax expense (24) (38) (60)
Profit 58 96 151

Items that may be reclassified to profit/(loss):
Change in cash flow hedge reserveD1 (6) 8 (21)
Deferred tax relating to cash flow hedgesD1 2 (2) 6
Other comprehensive income/(loss) (4) 6 (15)
Comprehensive income
54 102 136

Profit per share (cents) – Basic
8.1 13.4 21.0
Profit per share (cents) – Diluted 8.1 13.2 21.0
Statement of
Cash Flows
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
$mNote
Unaudited
6 months ended
31 Dec 2017
Restated
Unaudited
6 months ended
31 Dec 2016
Restated
Audited
year ended
30 Jun 2017
Receipts from customers 1,212 1,054 2,072
Payments to suppliers and employees (976)(786)(1,527)
Ta x p a i d (20)(25)(37)
Operating cash flows 216 243 508
Purchase of assets (39)(65)(118)
Proceeds from sale of assets – 2 9
Interest received – –1
Investing cash flows (39)(63)(108)
Dividends paidB2(107)(107)(186)
Proceeds from issue of shares1 – –
Proceeds from borrowings – 20 115
Repayment of borrowings (14)(43)(226)
Interest paid (40)(45)(88)
Gas sale and repurchase arrangement (7)(6)(14)
Financing cash flows
(167)(181)(399)
Net cash flow 10 (1)1
Add: cash at the beginning of the period 6 5 5
Cash at the end of the period 16 4 6

14 Contact Half Year Report 2018 | Financial Statements
Financial Statements | Contact Half Year Report 2018 15
Statement of
Financial Position
AT 31 DECEMBER 2017
Statement of
Changes in Equity
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
$mNote
Unaudited
31 Dec 2017
Restated
Unaudited
31 Dec 2016
Restated
Audited
30 Jun 2017
Cash and cash equivalents 16 4 6
Trade and other receivables182 186 197
Inventories 38 55 46
Intangible assetsC123 18 11
Derivative financial instrumentsD19 29 8
Assets held for saleC1 184 – –
Total current assets 452 292 268
Inventories 21 37 24
Property, plant and equipmentC14,402 4,670 4,611
Intangible assetsC1275 331 321
Goodwill 182 182 182
Derivative financial instrumentsD147 57 38
Other non–current assets 11 18 11
Total non–current assets 4,938 5,295 5,187
To t a l a s s e t s 5,390 5,587 5,455
Trade and other payables
182 203 202
Ta x p a y a b l e 10 4 4
BorrowingsB34 42 440 391
Derivative financial instrumentsD151 22 50
Provisions 12 15 14
Total current liabilities 697 684 661
BorrowingsB31,108 1,228 1,158
Derivative financial instrumentsD154 52 52
Provisions 51 45 50
Deferred tax 746 750 74 9
Other non–current liabilities 7 7 7
Total non–current liabilities 1,966 2,082 2,016
Total liabilities 2,6632,766 2,677
Net assets 2 ,727 2,821 2 ,7 78
Share capitalB11,519 1,515 1,515
Retained earnings 1,214 1,286 1,263
Cash flow hedge reserve (11)14 (8)
Share–based compensation reserve 5 6 8
Shareholders' equity 2 ,727 2,821 2 ,7 78
$mNote
Share
Capital
Retained
Earnings
Other
Reserves
To t a l
Shareholders’
Equity
Balance at 1 July 2016 1,515 1,294 14 2,823
Adjustment on adoption of new IFRSA1– 2 – 2
Restated opening balance as at 1 July 2016 1,515 1,296 14 2,825
ProfitA3– 96 – 96
Change in cash flow hedge reserve (net of tax) – – 6 6
Lapsed share scheme awards – 1 (1)–
Share–based compensation expense – – 1 1
Dividends paidB2– (107)– (107)
Restated unaudited balance at 31 December 2016 1,515 1,286 20 2,821
ProfitA3– 55 – 55
Change in cash flow hedge reserve (net of tax) – – (21) (21)
Lapsed share scheme awards – 1 (1)–
Share–based compensation expense – – 2 2
Dividends paidB2– (79)– (79)
Restated audited balance at 30 June 2017 1,515 1,263 – 2 ,7 78
Profit
A3– 58 – 58
Change in cash flow hedge reserve (net of tax) – – (4) (4)
Exercised share scheme awards – – (3) (3)
Share–based compensation expense – – 1 1
Change in share capital 4 – – 4
Dividends paidB2– (107)– (107)
Unaudited balance at 31 December 2017 1,519 1,214 (6) 2 ,727

16 Contact Half Year Report 2018 | Notes to the Financial Statements
Notes to the Financial Statement | Contact Half Year Report 2018 17
A. Our Performance
A1. ADOPTION OF NEW ACCOUNTING POLICIES
Contact has elected to early adopt NZ IFRS 15 Revenue from Contracts with Customers (‘revenue standard’)
and NZ IFRS 16 Leases (‘leases standard’) for the year ending 30 June 2018. Both standards have been
adopted using the full retrospective approach with an adjustment to retained earnings on 1 July 2016.
With the adoption of the revenue standard the incremental costs incurred to acquire new customers are
capitalised as a contract asset instead of being expensed as incurred. The contract asset is amortised to
operating expenses over the expected life of the customer relationship. Direct customer incentives are also
capitalised as a contract asset and amortised to revenue, which is consistent with the previous accounting
treatment. The amortisation period has been revised from the contract term to the expected life of the
customer relationship. At 31 December 2017 contract assets held within ‘Trade and other receivables’ totalled
$13 million (31 December 2016: $11 million, 30 June 2017: $12 million).
The adoption of the leases standard results in those leases previously classified as operating leases being
recorded on balance sheet. All other arrangements will be considered under the leases standard when the
contract is amended or renewed. On 1 July 2016 Contact recognised lease assets and lease obligations that
represent the present value of future lease payments for the minimum lease term and all lease renewal options
that Contact is reasonably certain to exercise. Lease payments are recorded as a repayment of the lease
obligation and interest expense instead of as an operating expense. Lease assets are depreciated over the
lease term.
The effect of this change in accounting policy is shown below:
$m
Unaudited
6 months
ended
31 Dec 2016Adjustments
Restated
Unaudited
6 months
ended
31 Dec 2016
Audited
year
ended
30 Jun 2017Adjustments
Restated
Audited
year
ended
30 Jun 2017
Statement of Comprehensive Income
Revenue and other income1,039 (2)1,037 2,080(1)2,079
Operating expenses(778)5 (773)(1,586)8(1,578)
Depreciation and amortisation(99)(2) (101)(204)(4)(208)
Net interest expense(47)(1)(48)(92)(1)(93)
Tax expense(38)
–
(38)(59)(1)(60)
Profit96
–
96 1501151
Statement of Financial Position
Trade and other receivables181 6 187 190 7 197
Property, plant and equipment4,6 4 9 20 4,670 4,592 19 4,611
Lease obligations (Borrowings)23 23 46 19 22 41
Deferred tax liability74 9 1 750 74 8 1 74 9
Retained earnings1,284 2 1,286 1,260 3 1,263
The adjustments relating to the periods before those presented are an increase in lease obligations of
$26 million, lease assets of $23 million, contract assets of $6 million, deferred tax liability of $1 million and
retained earnings of $2 million.
A2. SEGMENTS
Contact reports activities under two operating segments; being the Generation segment and the Customer
segment. There has been no significant changes to Contact’s operating segments in the current year.
The Generation segment includes revenue from the sale of electricity to the wholesale electricity market and to
the Customer segment, less the cost to generate and/or purchase the electricity sold.
The Customer segment includes revenue from delivering energy to customers less the cost of energy, and
costs to service and distribute energy to the customer.
The Customer segment purchases electricity from the Generation segment at a price fixed in a manner similar
to transactions with third parties.
A3. EARNINGS
The table on the next page provides a breakdown of Contact’s revenue and expenses, earnings before
interest, tax, depreciation and amortisation, and changes in fair value of financial instruments and significant
items (EBITDAF) by segment, and a reconciliation from EBITDAF and underlying profit to profit reported
under NZ GAAP.
EBITDAF and underlying profit are used to monitor performance and are non–GAAP profit measures.
Significant items are excluded from EBITDAF and underlying profit when they meet criteria approved by the
Board of Directors. The significant item in this reporting period is ‘Change in fair value of financial instruments’,
which is the movements in the valuation of interest rate and electricity price derivatives that are not accounted
for as hedges, hedge accounting ineffectiveness and the effect of credit risk on the valuation of hedged debt
and derivatives. Refer D1 for a breakdown.

18 Contact Half Year Report 2018 | Notes to the Financial Statements
Notes to the Financial Statement | Contact Half Year Report 2018 19
Unaudited 6 months ended 31 Dec 2017Restated unaudited 6 months ended 31 Dec 2016Restated audited year ended 30 Jun 2017
$mGenerationCustomerEliminationsTo t a lGenerationCustomerEliminationsTo t a lGenerationCustomerEliminationsTo t a l
Mass market electricity– 458 –458 – 465 – 465 – 892 (1) 891
Commercial & Industrial electricity5 223 – 228 4 231 – 235 8 465 – 473
Wholesale electricity388 – – 388 222 – – 222 492 – – 492
Inter–segment electricity sales296 – (296)– 301 – (301) – 596 – (596) –
Gas– 39 – 39 – 36 – 36 – 66 – 66
LPG– 63 – 63 – 62 – 62 – 119 – 119
Steam14 – – 14 14 – – 14 25 – – 25
Total revenue703 783 (296)1,190 541 794 (301) 1,034 1,121 1,542 (597) 2,066
Other income1 3 – 4 – 3 – 3 6 7 – 13
Total revenue and other income704 786 (296)1,194 541 797 (301) 1,037 1,127 1,549 (597) 2,079
Electricity purchases(381)– – (381) (206) – – (206) (460) – – (460)
Inter–segment electricity purchases– (296)296 – – (301) 301 – – (596) 596 –
Gas purchases(57)(9)– (66) (4 4) (8) – (52) (10 0) (15) – (115)
LPG purchases– (36)– (36) – (33) – (33) – (67) – (67)
Electricity networks, transmission, levies & meter costs(24)(304)– (328) (24) (305) – (329) (48) (590) – (638)
Gas networks, transmission, levies & meter costs(5)(20)– (25) (4) (19) – (23) (8) (36) – (4 4)
Other operating expenses(57)(57)– (114) (61) (64) – (125) (119) (125) 1 (243)
Carbon emissions(7)(1)– (8) (4) (1) – (5) (9) (2) – (11)
Total operating expenses(531)(723)296 (958) (343) (731) 301 (773) ( 74 4) (1,431) 597 (1,578)
EBITDAF17 3 63 – 236 198 66 – 264 383 118 – 501
Depreciation and amortisation (109) (101) (208)
Net interest expense (43) (48) (93)
Tax on underlying profit (25) (33) (58)
Underlying profit 59 82 142
Significant items
Change in fair value of financial instruments (2) 30 23
Transition costs – (7) (7)
Remediation for Holidays Act non–compliance – (5) (5)
Otahuhu thermal power station closure and sale – 1 –
Tax on significant items 1 (5) (2)
Profit 58 96 151
Underlying profit per share (cents) 8.2 11.5 19.9

20 Contact Half Year Report 2018 | Notes to the Financial Statements
Notes to the Financial Statement | Contact Half Year Report 2018 21
A4. FREE CASH FLOW
$m
Unaudited
6 months ended
31 Dec 2017
Restated
Unaudited
6 months ended
31 Dec 2016
Restated
Audited
year ended
30 Jun 2017
EBITDAF 236 264 501
Ta x p a i d (20) (25) (37)
Change in working capital net of non–cash, investing
and financing activities
(4) 4 41
Non–cash items included in EBITDAF 4 6 11
Significant items, net of non–cash adjustments – (6) (8)
Operating cash flows 216 243 508
Net interest paid (40) (45) (87)
Stay in business capital expenditure (35) (64) (116)
Operating free cash flow 141 134 305
Proceeds from sale of assets – 2 9
Free cash flow 141 136 314
Operating free cash flow per share (cents) 19.7 1 8 .7 42.6
A5. RELATED PARTY TRANSACTIONS
During the period Contact’s transactions with related parties were:
• Sales of LPG to Rockgas Timaru Limited of $1 million (31 December 2016: $1 million, 30 June 2017:
$2 million).
• Directors’ fees of $1 million (31 December 2016: $1 million, 30 June 2017: $1 million).
• Leadership Team’s salary and other short–term benefits of $4 million (31 December 2016: $3 million, 30
June 2017: $7 million), which includes $1 million of share–based compensation expense (31 December 2016:
$nil, 30 June 2017: $1 million).
B. Our Funding
B1. SHARE CAPITAL
Number$m
Balance at 1 July 2016 715,525,756 1,515
Balance at 31 December 2016 715,525,756 1,515
Balance at 30 June 2017 715,525,756 1,515
Share capital issued 750,281 4
Balance at 31 December 2017 716,276,037 1,519
Ordinary shares 715,878,887 1,520
Restricted shares – Contact Share3 9 7, 1 5 0 (1)
During the period Contact granted a new tranche of share awards under the Equity Scheme, comprising
1,148,119 options, 274,347 PSRs and 309,212 DSRs. The share options have an exercise price of $5.54 per share
while the PSRs and DSRs have no exercise price.
B2. DIVIDENDS PAID
$mCents per share
Unaudited
6 months ended
31 Dec 2017
Unaudited
6 months ended
31 Dec 2016
Audited
year ended
30 Jun 2017
2016 final dividend 15 – 107 107
2017 interim dividend 11 – – 79
2017 final dividend 15 107 – –
107 107 186
On 9 February 2018 the Board declared an interim dividend of 13 cents per share to be paid on 6 April 2018.

22 Contact Half Year Report 2018 | Notes to the Financial Statements
Notes to the Financial Statement | Contact Half Year Report 2018 23
B3. BORROWINGS
$m
Unaudited
31 Dec 2017
Restated
Unaudited
31 Dec 2016
Restated
Audited
30 Jun 2017
Bank overdraft 3 4 3
*Commercial paper 180 185 180
*Bank facilities 106 187 113
Lease obligations 38 46 41
*Wholesale bonds 10 0 200 10 0
*Retail bonds 472 372 472
*Export credit agency facility 72 79 76
*USPP notes 560 560 560
Face value of borrowings 1,531 1,633 1,545
Deferred financing costs (7) (8) (7)
Fair value adjustment on hedged borrowing 26 43 11
Carrying value of borrowings 1,550 1,668 1,549
Current 4 42 440 391
Non–current 1,108 1,228 1,158
Borrowings denoted with an asterisk (*) are Green Debt Instruments under Contact’s Green Borrowing
Programme (excluding USPP notes and wholesale bonds maturing in 2018). At 31 December 2017 Contact remains
compliant with the requirements of the programme. Further information is available on the Sustainability section
on Contact’s website.
At 31 December 2017, $5 million of lease obligations are payable within one year of the end of the reporting period.
Contact uses bank facilities to manage its liquidity risk and maintains a buffer of undrawn bank facilities over its
forecast funding requirements to enable it to meet any unforeseen cash flows.
Contact’s bank facilities have a range of maturities:
$m
Unaudited
31 Dec 2017
Unaudited
31 Dec 2016
Audited
30 Jun 2017
Less than 1 year 17 0 24 0 150
Between 1 and 2 years 110 215 265
Between 2 and 3 years 80 30 30
More than 3 years 165 115 155
525 600 600
In addition to bank facilities Contact, has entered into a $100 million bridge facility available to draw from 28 March
2018 with a maturity of one year. This forms part of the refinancing plans for USPP notes maturing in 2018.
C. Our Assets
C1. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Property, plant and equipment
$m
Unaudited
31 Dec 2017
Restated
Unaudited
31 Dec 2016
Restated
Audited
30 Jun 2017
Opening balance4,6114 ,72 1 4 ,72 1
Additions3635 66
Transfers to assets held for sale(155) – –
Depreciation(90)(87)( 17 5 )
Disposals–– (1)
Closing balance4,4024,6704,611
At 31 December 2017, included within property, plant and equipment is $17 million of lease assets. These assets
incurred a depreciation charge of $2 million for the six months ended 31 December 2017.
Intangible assets
$m
Unaudited
31 Dec 2017
Unaudited
31 Dec 2016
Audited
30 Jun 2017
Opening balance332333 333
Additions1531 40
Transfers to assets held for sale(29)– –
Amortisation(19)(15)(33)
Disposals(1)– (8)
Closing balance298349332
Current23 18 11
Non–current275331 321
At 31 December 2017, Contact was committed to $11 million of capital expenditure, with all payments due within
one year of the reporting period end (31 December 2016: $20 million, 30 June 2017: $11 million).
Assets classified as held for sale comprise the Ahuroa Gas Storage Facility which is subject to a conditional
sale agreement with Gas Services New Zealand. These assets are expected to be sold within one year of the
end of the reporting period.

24 Contact Half Year Report 2018 | Notes to the Financial Statements
Notes to the Financial Statement | Contact Half Year Report 2018 25
D. Our Financial Risks
D1. FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS
The fair value of derivatives used to hedge risk, categorised by accounting treatment is provided below.
Unaudited
31 Dec 2017
Unaudited
31 Dec 2016
Audited
30 Jun 2017
$mAsset LiabilityAssetLiability AssetLiability
Fair value hedges
CCIRS44 (26) 50 (18) 33 (30)
Interest rate swaps 7 – 8 – 8 –
Cash flow hedges
CCIRS – margin – (4) 3 (1) 2 (6)
Foreign exchange derivatives – – 1 (4) – –
Electricity and LPG price derivatives – (12) 20 – – (6)
Not designated in hedge relationship
Interest rate swaps 1 (55) 1 (49) – (53)
Electricity price derivatives 4 (8) 3 (2) 3 (7)
56 (105) 86 ( 74) 46 (102)
Current 9 (51) 29 (22) 8 (50)
Non–current 47 (54) 57 (52) 38 (52)
The change in the fair value of derivatives and the fair value adjustment to borrowings is provided below.
Unaudited
6 months ended
31 Dec 2017
Unaudited
6 months ended
31 Dec 2016
Audited
year ended
30 Jun 2017
$m
Profit/
(loss)
CFHRProfit/
(loss)
CFHRProfit/
(loss)
CFHR
CCIRS 15 – (23) – (52) –
Interest rate swaps (1) – (6) – (6) –
Fair value adjustment to borrowings (15) – 30 – 62 –
Fair value hedges(1) – 1 – 4 –
CCIRS – margin – – – 4 – (2)
Foreign exchange derivatives – – – 1 – 4
Electricity and LPG price derivatives – (6) – 3 – (23)
Tax on change in fair value – 2 – (2) – 6
Cash flow hedges – (4) – 6 – (15)
Interest rate swaps (1) – 28 – 23 –
Electricity price derivatives – – 1 – (4) –
Derivatives not designated in hedge relationships(1) – 29 – 19 –
Total fair value movement(2) (4) 30 6 23 (15)
Conclusion
Based on our review, nothing has come to our attention
that causes us to believe that the interim financial
statements on pages 11 to 24 do not:
I. present fairly in all material respects the company’s
financial position as at 31 December 2017 and its
financial performance and cash flows for the
6 month period ended on that date; and
II. comply with NZ IAS 34 Interim Financial Reporting.
We have completed a review of the accompanying
interim financial statements which comprise:
• the statement of financial position as at
31 December 2017;
• the statements of comprehensive income,
changes in equity and cash flows for the
six month period then ended; and
• notes, including a summary of significant accounting
policies and other explanatory information.
Basis for conclusion
A review of interim financial statements in accordance
with NZ SRE 2410 Review of Financial Statements
Performed by the Independent Auditor of the Entity (“NZ
SRE 2410”) is a limited assurance engagement. The
auditor performs procedures, consisting of making
enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and
other review procedures.
As the auditor of Contact Energy Limited, NZ SRE 2410
requires that we comply with the ethical requirements
relevant to the audit of the annual financial statements.
Our firm has also provided other services to the
company in relation to AGM scrutineering. Subject to
certain restrictions, partners and employees of our firm
may also deal with the company on normal terms within
the ordinary course of trading activities of the business
of the company. These matters have not impaired our
independence as reviewer of the company. The firm has
no other relationship with, or interest in, the company.
Use of this Independent Review Report
This report is made solely to the shareholders as a body.
Our review work has been undertaken so that we might
state to the shareholders those matters we are required
to state to them in the Independent Review Report and
for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone
other than the shareholders as a body for our review
work, this report, or any of the opinions we have formed.
Responsibilities of the Directors for the interim
financial statements
The Directors, on behalf of the company, are responsible for:
• the preparation and fair presentation of the interim
financial statements in accordance with NZ IAS 34
Interim Financial Reporting;
• implementing necessary internal control to enable
the preparation of interim financial statements that
are fairly presented and free from material
misstatement, whether due to fraud or error; and
• assessing the ability to continue as a going
concern. This includes disclosing, as applicable,
matters related to going concern and using the
going concern basis of accounting unless they
either intend to liquidate or to cease operations, or
have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the
interim financial statements
Our responsibility is to express a conclusion on the
interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410.
NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that
the interim financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim
Financial Reporting.
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 these interim financial statements.
This description forms part of our Independent
Review Report.
9 February 2018
Wellington
Independent Auditors
Review Report
TO THE SHAREHOLDERS OF CONTACT ENERGY LIMITED
REPORT ON THE INTERIM FINANCIAL STATEMENTS

26 Contact Half Year Report 2018 | Glossary
Corporate Directory | Contact Half Year Report 2018 27
Corporate
Directory
BOARD OF DIRECTORS
Sir Ralph Norris (Chairman)
Victoria Crone
Whaimutu Dewes
Rob McDonald
Sue Sheldon
Elena Trout
LEADERSHIP TEAM
Dennis Barnes
Chief Executive Officer
Graham Cockroft
Chief Financial Officer
Venasio–Lorenzo Crawley
Chief Customer Officer
James Kilty
Chief Generation and Development Officer
Tania Palmer
General Manager, People and Safety
Catherine Thompson
General Manager, External Relations
and General Counsel
REGISTERED OFFICE
Contact Energy Limited
Harbour City Tower
29 Brandon Street
Wellington 6011
New Zealand
Phone: +64 4 499 4001
Fax: +64 4 499 4003
Find us on Facebook, Twitter, LinkedIn and YouTube
by searching for Contact Energy
COMPANY NUMBERS
NZ Incorporation 660760
ABN 68 080 480 477
AUDITOR
KPMG
PO Box 996
Wellington 6140
REGISTRY
Change of address, payment instructions and
investment portfolios can be viewed and updated
online:
investorcentre.linkmarketservices.co.nz
investorcentre.linkmarketservices.com.au
New Zealand Registry
Link Market Services Limited, PO Box 91976,
Auckland 1142
Level 11, Deloitte Centre, 80 Queen Street,
Auckland 1010
contactenergy@linkmarketservices.co.nz
Phone: +64 9 375 5998
Fax: +64 9 375 5990
Australian Registry
Link Market Services Limited, Locked Bag A14,
Sydney South, NSW 1235
680 George Street, Sydney, NSW 2000
contactenergy@linkmarketservices.com.au
Phone: +61 2 8280 7111
Fax: +61 2 9287 0303
INVESTOR ENQUIRIES
Matthew Forbes
Investor Relations Manager
investor.centre@contactenergy.co.nz
Phone: +64 4 462 1323
Glossary
ASXAustralian Securities Exchange
C&ICommercial and industrial
CCGTCombined cycle gas turbine
CCIRSCross currency interest rate swaps
CEOChief Executive Officer
CFHRCash flow hedge reserve
cpscents per share
Cost of energyThe net result of trading electricity on the national market and the
associated generation and transmission costs
DSR/PSRDeferred share rights / performance share rights
EBITDAFA non-GAAP measure equal to earnings before net interest expense,
tax, depreciation and amortisation, changes in fair value of financial
instruments and other significant items (refer note A3)
Free cash flowA non-GAAP measure of the cash generating performance of the
business. It represents cash available to fund distributions to
shareholders and growth capital expenditure. It is equal to operating
cash flows less net interest paid and stay-in-business capital
expenditure plus proceeds from asset sales
GWhGigawatt hour
ICTInformation, Communication and Technology
LPGLiquid petroleum gas
MWhMegawatt hour
NetbackThe revenue and expenses of delivering energy and servicing
customers.
NEXIExport credit facility
NZ GAAPNew Zealand generally accepted accounting practice
NZXNew Zealand Stock Exchange
Operating free cash flowA non-GAAP measure equal to Free cash flow less proceeds from
asset sales
PJ / GJPetajoule / Gigajoule (measure of gas)
Significant itemsItems excluded from EBITDAF and underlying profit. These items are
determined in accordance with the principles of consistency, relevance
and clarity (refer to note A3)
SwaptionRisk management contract with market participant
Underlying profitA non-GAAP measure equal to reported profit/(loss) adjusted for
significant items that do not reflect Contact’s ongoing performance
(refer note A3)
USPPUnited States private placement

---

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
X
whether:
Interim
X
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 securityPayment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike 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.
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:
16 March, 20186 April, 2018
Not ApplicableNot Applicable
$$0.009028$0.050556
$0.000000$0.000000
NZD$0.022941
$93,115,885
Date Payable
6 April, 2018
Not Applicable
Enter N/A if not
applicable
In dollars and cents
$0.13
716,276,037Ordinary Shares
+ 64 4 499 4001+64 4 499 40031222018
NZCENE0001S6
EMAIL: announce@nzx.com
Notice of event affecting securities
Contact Energy Limited
Dennis Barnes - Chief Executive OfficerDirectors' Resolution

---

MEDIA RELEASE
Monday 12 February 2018
Cost efficiency increases cash flow in unprecedented operating conditions while
improving the customer experience; increasing dividends to shareholders
Highlights

Six months ended Comparison against

31 December 2017 1H17³
EBITDAF
1
$236m down 11% from $264m
Profit $58m down 40% from $96m
Earnings per share (cents) 8.1 cps down 40% from 13.4 cps
Underlying profit
1
$59m down 28% from $82m
Underlying profit per share (cents) 8.2 cps down 28% from 11.5 cps
Declared dividend (cents) 13.0 cps up 18% from 11.0 cps
Operating free cash flow
2
$141m up 5% from $134m
Operating free cash flow per share (cents)
2
19.7 cps up 5% from $18.7 cps
Capital expenditure (accounting) $40m down 37% from $63m

 Delivering on our cost efficiency programme with cash spent on capital projects down by $26
million (40%) and an $11 million (9%) reduction in ongoing other operating costs primarily in the
Customer business and the central Corporate functions.
 Delivering on our strategy to optimise our asset portfolio, conditional agreement reached for the
sale of the Ahuroa Gas Storage facility for $200 million. As part of the sale, Contact has retained
access to competitive long term gas storage services compatible with its requirements for flexible
thermal generation.
 Improved customer experience and customer advocacy, with a Net Promoter Score of +15, up
from +12 in 1H17 and +14 in FY17. This has seen Contact customer churn for the year of 19.1%,
1.8% below the market average of 20.9%.
 Increasing employee engagement despite significant change after realigning our corporate
functions in June, with 71% of employees now engaged, 3% up on FY17 and 27% up on FY15
 Face value of borrowings reduced by $14 million with cash on hand increasing by $10m,
confirming Contact’s commitment to reducing debt and to its BBB credit rating from Standard and
Poor’s (S&P).
 Increasing returns to shareholders with the interim dividend up 18% to 13 cents per share (1H17
11 cents per share), which will be fully imputed for New Zealand based shareholders.
12


1
Refer to slides 40-43 of the 2018 interim results presentation for a definition and reconciliation between statutory profit and the non-GAAP profit
measures earnings before net interest expense, tax, depreciation, amortisation, change in fair value of financial instruments and other significant
items (EBITDAF) and underlying profit (profit excluding significant items that do not reflect Contact’s ongoing performance).
2
Refer to slide 26 of the 2018 interim results presentation for a definition and reconciliation between cash flow from operating activities and the
non-GAAP measure operating free cash flow. Operating free cash flow represents cash available to repay debt and to fund distributions to
shareholders and growth capital expenditure.
³ Contact has elected to early adopt NZ IFRS 15 Revenue from Contracts with Customers (‘revenue standard’) and NZ IFRS 16 Leases (‘leases
standard’) for the year ending 30 June 2018. Both standards have been applied retrospectively, which has resulted in the restatement and/or
reclassification of comparatives to conform to the current period’s classification. Refer to slide 44 of the 2018 interim results presentation for a
reconciliation of the changes to the prior period as a result of the adoption of the new accounting standards.

Contact Energy Limited / 2
Operating improvements offset dry hydrological conditions
While record low hydro inflows into our Clutha catchment impacted Contact’s first half earnings,
operational improvements in our Customer and Generation businesses helped partially offset the
impact of the dry hydrological conditions.
Contact reported a statutory profit for the six months ended 31 December 2017 of $58 million, $38
million lower than the prior corresponding period due to greater reliance on its thermal power stations
to supply electricity to customers. EBITDAF decreased by $28 million, or 11%, to $236 million while
underlying profit after tax decreased by $23 million or 28% to $59 million. Operational improvements
resulted in a sustainable reduction in operating costs of $11 million, 9% down on the prior
comparative period.
Operating free cash flow remained strong at $141 million, up 5% on 1H17, reaffirming the Board’s
confidence in the sustainability of Contact’s cash flow generation which allowed for the FY18 interim
dividend to be increased by 18% to 13 cents per share, compared to 11 cents per share for 1H17.
This will be fully imputed for New Zealand based shareholders and payable in April 2018. Contact
remains committed to maintaining a BBB credit rating and continues to reduce gearing levels, with a
$14 million reduction in the face value of borrowing during the period and cash on hand increasing by
$10 million.
Customer business
Contact’s Customer business continued to operationally improve amid high levels of competition. LPG
product costs rose sharply in the period on higher international oil prices and a weaker New Zealand
dollar which weighed on Customer segment earnings.
“Contact is competing well by providing customers with choice, certainty and control while improving
the customer experience through systems-enabled operational improvements. As a result we
continue to experience lower churn rates than the market, and our customers are increasingly
advocating for us in greater numbers” said Mr Barnes.
National demand was over 1% higher in the period, largely driven by increased irrigation demand
while warm temperatures over the second quarter also saw lower usage per mass market customer
reducing sales volumes when compared to the prior period. Improving the customer experience saw
the cost to serve customers fall by 12% on the prior comparative period, with Net Promoter Score of
+15, up from +12 in 1H17. This resulted in Contact customer churn for the year of 19.1%, 1.8
percentage points below the market average.
Customer EBITDAF fell by $3 million to $63 million in the six months to 31 December 2017 when
compared to the same period a year ago.
Generation business
“Wholesale market conditions in the first half of the financial year were book-ended by record low
inflows into our Clutha catchment. Our flexible thermal fuel supply and diverse assets ensured a
reliable supply to customers through these dry periods, but the additional fuel and carbon costs
incurred adversely impact financial performance. Major maintenance at the Taranaki Combined Cycle
plant and Te Mihi was completed safely and on budget with both these plants now available for many
years without major works” said Mr Barnes.
Contact hydro generation was 438 GWh, 21% below the prior comparative period with the impact
most acutely felt during the high wholesale electricity pricing periods in July, August and December.
Wholesale electricity prices responded to the national hydrological conditions with the average price
received for generation nearly twice that of the prior period with forward prices also firming.
The effects of the dry hydro sequences to Contact’s operations were offset by ongoing operational
improvements, with strong plant availability across the portfolio, reduced operating costs and record
generation from geothermal power stations, with production up 11% on the prior comparable period.
The Generation business EBITDAF for the six months was $173 million, $25 million lower than the
prior comparable period.

Contact Energy Limited / 3
Looking forward
While the extent of the current dry period remains unknown, Contact will continue to focus on
operating free cash flow growth by delivering ongoing improvements to the aspects of the business it
can control, with a disciplined and transparent approach to operating and capital expenditure.
Additionally, Contact sees a number of exciting opportunities as the Government’s policy focus shifts
towards decarbonising the economy and works on establishing 100% renewable energy targets.
“The dry period will provide some headwinds and the government’s Electricity Pricing review has the
potential to be distracting in the short term, but equally there are a number of exciting prospects
ahead of us. As a leader in geothermal generation, with an increasingly loyal customer base, we are
well positioned to help businesses and consumers adapt to a lower carbon future,” said Mr Barnes.
ENDS
Investor enquiries: Matthew Forbes +64 21 072 8578
Media enquiries: Jason Krupp +64 21 701 898

---

Contact EnergyAnnual meeting of shareholders
October 2016
2018 Interim Results Presentation
Six months ended 31 December 2017
12 February 2018
Dennis Barnes, Chief Executive Officer
Graham Cockroft, Chief Financial Officer

Contact EnergyAnnual meeting of shareholders
October 2016
2
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Disclaimer
This presentation may contain projections or forward-looking statements
regarding a variety of items. Such forward-looking statements are based
upon current expectations and involve risks and uncertainties.
Actual results may differ materially from those stated in any forward-
looking statement based on a number of important factors and risks.
Although management may indicate and believe that the assumptions
underlying the forward-looking statements are reasonable, any of the
assumptions could prove inaccurate or incorrect and, therefore, there
can be no assurance that the results contemplated in the forward-looking
statements will be realised.
EBITDAF, underlying profit, free cash flow and operating free cash flow
are non-GAAP (generally accepted accounting practice) measures.
Information regarding the usefulness, calculation and reconciliation of
these measures is provided in the supporting material.
Furthermore, while all reasonable care has been taken in compiling this
presentation, Contact accepts no responsibility for any errors or
omissions.
This presentation does not constitute investment advice.

Contact EnergyAnnual meeting of shareholders
October 2016
3
Agenda
1
Overview
2
Market dynamics
3
Progress on strategy
4
Operational and financial performance
5
Outlook
4 -5
6-11
12 -17
18 -27
28 -33
1H18 Results 12 February 2018
Presentation Contact Energy Limited
6
Supporting materials34 -46

Contact EnergyAnnual meeting of shareholders
October 2016
4
Cash flow up despite weak hydro inflows;
dividends to shareholders increasing
1H18 Results 12 February 2018
Presentation Contact Energy Limited
1
Refer to slides 40-43 for a definition and reconciliation of EBITDAF and underlying profit
2
Refer to slide 26 for a reconciliation of operating free cash flow
3
Refer to slide 44 for a reconciliation of the changes to the prior period as a result of the adoption of the new accounting standards
Summary of key financial performance measures
Overview
6months
ended
31 December
2017 Comparisonagainst 1H17
EBITDAF
1
$236mdown 11% from $264m
Profit$58mdown 40% from $96m
Earnings per share (cents)8.1 cpsdown 40% from 13.4 cps
Underlying profit
1
$59mdown 28% from $82m
Underlying profit per share
(cents)8.2 cpsdown 28% from 11.5 cps
Declared dividend (cents)13.0 cpsup 18% from 11.0 cps
Operating free cash flow
2
$141mup 5% from $134m
Operating free cash flow per
share (cents)
2
19.7 cpsup 5% from $18.7 cps
Capital expenditure (accounting)$40mdown 37% from $63m
»
Contact has elected to early adopt NZ IFRS 15
Revenue from Contracts with Customers
(‘revenue standard’) and NZ IFRS 16 Leases
(‘leases standard’) for the year ending 30 June
2018. Both standards have been applied
retrospectively, which has resulted in the
restatement and/or reclassification of
comparatives to conform with the current
period’s classification
3
.
»
Continued focus on growing cash flow by
delivering cost efficiency and growing retail
margins
»
Strong progress on the reduction of
operating costs and capital spend, down
$37m on the prior comparative period
(FY18 target reduction of between $46m
and $66m against FY17).
»
Achieved in the context of an improving
customer experience, increasing
customer advocacy and strong generation
operational performance.

Contact EnergyAnnual meeting of shareholders
October 2016
5
Highlights
ENHANCED CUSTOMER EXPERIENCE
SAFE AND ENGAGED EMPLOYEES
REWARDING SHAREHOLDERS
Net promoter score for the six months of +15, up from the +12 recorded in 1H17
on the implementation of operational improvements. Below market churn.
Increasing employee engagement despite significant change after realigning our
corporate functions in June 2017, with 71% of employees engaged, 3% up on
FY17 and 27% up on FY15. Excellent safety culture.
Interim ordinary dividend of 13 cents per share, up 2 cents per share on 1H17.
Target FY18 dividend of 32 cents per share (FY17 26 cents per share).
MAINTAINING FINANCIAL DISCIPLINE
Strong cost control with other operating costs down by $11m (9%). Cash spent on
capital expenditure down by $26m (40%). $24m reduction in net debt.
Acceleration of performance and cash discipline paying dividends
+19%
25%
+3%
+18%
Comparison against 1H17
Reduction in total cash
operating costs and capital
spend
Improvement in NPS
Increase in employee
engagement
Increase to the interim
dividend
Overview
1H18 Results 12 February 2018
Presentation Contact Energy Limited

Contact EnergyAnnual meeting of shareholders
October 2016
Market dynamics
Dennis Barnes
1H18 Results 12 February 2018
Presentation Contact Energy Limited

Contact EnergyAnnual meeting of shareholders
October 2016
7
National hydro storage against mean storage
Year on year variance in generation by type (1H18 vs 1H17)
Source: NZX hydro
Source: Quarterly operating reports (Contact, Meridian, Mercury and Genesis)
Weak South Island hydro generation replaced by
thermal and North Island renewable generation
1H18 Results 12 February 2018
Presentation Contact Energy Limited
»With South Island hydro storage averaging 65% of mean
throughout July and August 2017, increased thermal
generation was required to meet demand
»National thermal generation for the September quarter
was up 33% on the prior comparative period
»North Island hydro generation significantly higher than
long run averages
South Island hydro storage was significantly below mean
during key demand periods, in contrast to 1H17
Market dynamics
1500
2000
2500
3000
3500
4000
4500
Jul-16Oct-16Jan-17Apr-17Jul-17Oct-17
GWh
Mean storageActual storage
-1500
-1000
-500
0
500
1000
HydroGeothermalWindThermal
GWh
MeridianMercuryGenesisContact
-1,000
-600
-200
200
600
1,000
Jul-16
Aug-16Sep-16
Oct-16
Nov-16Dec-16
Jan-17
Feb-17Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17Sep-17
Oct-17
Nov-17Dec-17
Variance to mean (GWh)
Monthly average
North Island storageSouth Island storage
1H171H18
Source: NZX hydro
Average monthly storage vs mean by Island

Contact EnergyAnnual meeting of shareholders
October 2016
8
Regional demand change (%) 1H18 vs 1H17
Source: EA reconciled demand data
National electricity demand up on cold July and
South Island irrigation load
1H18 Results 12 February 2018
Presentation Contact Energy Limited
National electricity demand was up 1% over the first 6
months compared to 1H17
»Dry, hot South Island conditions in November and December
saw irrigation demand significantly increase; national
electricity demand for the two months was up over 4%
»Strongest July demand since 2011, up 3% on a warm and wet
1H17, with lower general winter temperatures
»Following amulti-year trend, demand from the 1% growth in
new customer connections has offset by lower residential
demand per connection
Change in New Zealand average residential electricity consumption per connection
Source: EA residential consumption data
(1%)
(1%)
1%
(2%)
(2%)
2%
7%
17%
(1%)
(0%)
1%
(0%)
(0%)
1%
1%
(1%)
3%
7%
Demand at key
South Island
irrigation nodes
was significantly
higher
+5%
South Island
(excl. Tiwai)
North Island
+1%
-0.8%
0.3%
-4.1%
0.5%
-0.1%
-1.8%
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
CY11CY12CY13CY14CY15CY16
Year on year changeCumulative change since 2010
Market dynamics

Contact EnergyAnnual meeting of shareholders
October 2016
9
»Residential price increases remain below inflation
»Residential prices rose in the September quarter by
0.5% (line costs up 1.5% offset by a 0.2% reduction in
energy related charges)
»Rising wholesale and futures prices not yet reflected in retail
electricity pricing; new retailers are experiencing more
stressed market conditions. No retail pricing response to
date.
Year on year quarterly change in residential electricity prices
Source: MBIE Quarterly Survey of Domestic Electricity Prices
Retail electricity market remains competitive
with tier 2 retailers capturing market share
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Tier 2 retailers continue to gain market share
Generation component of electricity price flat in a
competitive retail market
Source: EA, ICP market share
(4%)
(2%)
0%
2%
4%
6%
8%
Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17
Year on year quarterly change
Quarter ended
Lines componentEnergy and other component
16.1
16.6
16.6
16.2
16.4
10.8
11.3
12.0
11.9
12.4
0
5
10
15
20
25
30
Mar-13Mar-14Mar-15Mar-16Mar-17
c/KWh
Year ended
Energy and other componentLines component
Nominal residential cost per unit (including GST)
Source: MBIE quarterly Survey of Domestic Electricity Prices
Market dynamics
-2%
0%
2%
4%
6%
8%
10%
12%
14%
-10,000
-5,000
0
5,000
10,000
Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17
Switch rate (12 month rolling)
Quarterly change in ICP's
Quarter ended
"Tier 1" electricity retailers"Tier 2" electricity retailersTrader switchMove in switch

Contact EnergyAnnual meeting of shareholders
October 2016
10
Generation weighted monthly wholesale electricity prices
Forward price curves
Source: EA –Wholesale energy prices
Source: EA –Forward price curves
Wholesale electricity prices responded to low
hydro storage levels and stronger demand
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Tighter market supply and demand balance, post thermal
retirements, saw wholesale prices move in line with South
Island hydro storage
»Wholesale electricity prices remained elevated during the
dry winter on low national hydro storage and higher
demand. Low South Island inflows since October, limited
snow pack and thermal plant outages led to elevated
wholesale prices despite seasonally lower customer
demand
»Long-dated futures prices have remained relatively stable in
a wide range of hydrological inflow sequences and
averaged $78/MWh over 1H18, confirming the fundamental
strength of the long run futures price
»The wholesale electricity market largely performed as
expected and effectively managed the lowest South Island
inflow sequence on record between February and August
2017
20
40
60
80
100
120
140
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY13 - FY17 rangeFY13 - FY17 averageFY18FY17
20
40
60
80
100
120
140
160
180
200
220
Jul-16Sep-16Nov-16Jan-17Mar-17May-17Jul-17Sep-17Nov-17
$/MWh
7-day simple moving average spot priceLong-dated futuresShort-dated futures
Market dynamics

Contact EnergyAnnual meeting of shareholders
October 2016
11
Contact hydro generation by quarter for FY15 –18
Thermal utilisation by month and wholesale electricity price
Contact managed the variability in hydrological
conditions using portfolio flexibility
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Thermal portfolio flexibility crucial in managing record low
inflows
»Cluthahydro inflows during 1H18 were 22% below mean and 590
GWh below 1H17
»The scheduled major refurbishment of the Taranaki Combined
Cycle plant (TCC) during November and December meant
Contact could not take full advantage of higher wholesale prices
»Contact limited thermal generation to periods where wholesale
prices allowed for a return on capital with only the Te Rapa co-
generation plant running in September and October
600
700
800
900
1,000
1,100
SepDec
GWh
Quarter ended
FY15FY16FY17FY18Mean Generation
0
20
40
60
80
100
120
140
160
0%
20%
40%
60%
80%
Jan 17Feb 17Mar 17Apr 17May 17Jun 17Jul 17Aug 17Sep 17Oct 17Nov 17Dec 17
$/MWh
%
Thermal capacity factor (%)National wholesale electricity price ($/MWh)
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Source: NZX hydro
Clutha inflows vs mean inflows (variance)
1H171H18
Source: Contact
Source: Contact, EA –Wholesale energy prices
Market dynamics

Contact EnergyAnnual meeting of shareholders
October 2016
Progress on our strategy
Dennis Barnes
1H18 Results 12 February 2018
Presentation Contact Energy Limited

Contact EnergyAnnual meeting of shareholders
October 2016
13
Provide customers with choice, certainty
and control while reducing cost to serve and
improving the customer experiencethrough
systems-enabled operational improvements
A low cost, long life and flexible generation
portfolio with a continuous improvement
programme focusing on safety, spend,
reliability and resource utilisation to improve
the efficiency of our generation assets
Contact’s strategy is to optimise the Customer and
Generation businesses to deliver strong cash flows
GenerationCustomer
Underpinned by a disciplined and transparent approach to operating and capital expenditure
while continuing to investigate ways to optimise our portfolio of assets
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Progress on strategy

Contact EnergyAnnual meeting of shareholders
October 2016
14
1H18 Results 12 February 2018
Presentation Contact Energy Limited
The Customer business continues to reduce cost
to serve while improving the customer experience
CUSTOMER BUSINESS STRATEGY
FOCUS AREAS
DESCRIPTION OF SUCCESS FOR FY18
Deliver value by providing customers with choice, certainty and control while reducing cost to serve and
improving the customer experiencethrough systems-enabled operational improvements
»Sustainable cost reduction
»Digitalisation/streamline highest-
priority customer journeys
»Optimiseand automate processes
»Adapt IT operating model to better
serve customer needs
PROGRESS
»High-performing, efficient retailer with the lowest cost to serve (CTS) and best customer experience of the
tier 1 retailers in New Zealand, with an ability to execute consistently
Greater customer advocacy, 25% improvement in NPS since 1H17
Improving customer experience supported growth with overall customer connections up
from 567,000 in June 17 to 568,500
Product structure changes for customers, addition of convenience fees and the greater
use of smart meter technology resulted in expanding netback margins
Customer churn reduced to 19.1%, 1.8% below the market average of 20.9%
Cost to serve down 11% on the simplification of IT services and move to the cloud,
reduced acquisition costs on lower customer churn, increased digital self-service,
reduced bad debt write-offs and lower corporate costs.
Progress on strategy

Contact EnergyAnnual meeting of shareholders
October 2016
15
1H18 Results 12 February 2018
Presentation Contact Energy Limited
The Generation business remains focused on
delivering on continuous improvement initiatives
GENERATION BUSINESS STRATEGY
FOCUS AREAS
DESCRIPTION OF SUCCESS FOR FY18
A low cost, long life and flexible generation portfolio with a continuous improvement programme focused on
safety, spend, reliability and resource utilisation to improve the efficiency of our generation assets
»Sustainable cost reduction
»Innovating to lead the world in
lowering the cost of geothermal
energy
»Initiatives to support further
decarbonisation of New Zealand’s
energy sector
PROGRESS
»Focus on operational excellence and investment in digital approaches with clear payback to accelerate
continuous improvement
Cannot predict exactly when a reversion to mean hydrology will occur so will continue to
focus on the controllable aspects of the business.
Record geothermal production, up 11% on 1H17 with a variation to the Wairakei mass
take consent obtained. Thermal availability and reliability has been good.
Contact is hosting Geo40 who are trialling the removal of silica from waste geothermal
fluids, potentially reducing costs associated with silica scaling.
The Government’s decarbonisation agenda aligns strongly with our strategy
Progress on strategy

Contact EnergyAnnual meeting of shareholders
October 2016
16
Creating value by optimising the portfolio of assets
–Strong strategic rationale for the sale of AGS
GSNZ is a higher
value owner
Reduction in gas
storage costs
Independent
owner of storage
Contact has
entered into a
conditional
agreement to
sell the Ahuroa
Gas Storage
facility (AGS)
for $200m. As
part of the
transaction,
Contact has
agreed to a 15
year contract
for gas storage
services
»GSNZ has a lower
cost of capital than
Contact.
»GSNZ’s existing
operations in Taranaki
present opportunities
for operational
synergies and
enhanced gas market
services.
»Committed to an
initial expansion of
AGS, which reduces
the cost per unit of
storage.
»Contact’s effective
share of operating
costs will reduce as
AGS signs up new
customers.
Monetising unused
capacity
»By selling the last
units that Contact
uses from AGS,
Contact is effectively
selling the least
valuable units of its
current capacity.
»Without upstream
or downstream
interests, GSNZ is
likely to be seen by
potential new
customers of AGS
as a more
independent
counterparty than
Contact.
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Progress on strategy

Contact EnergyAnnual meeting of shareholders
October 2016
17
Operational efficiency focus is leading to a
sustainable reduction in ongoing operating costs
1H18 Results 12 February 2018
Presentation Contact Energy Limited
1H18 controllable operating cost improvement against 1H17
»Leaner corporate centre with aligned support functions
and IT programme in line with business requirements.
Corporate costs are $5m lower in 1H18.
»Labour costs down primarily due to reduced FTE
and lower employee incentive payments ($4m)
»Lower insurance and other corporate costs ($1m)
»Operational gains from the operationalisation of customer
lifetime value, the implementation of long-term asset
management plans and execution of continuous
improvement initiatives
»Continued improved debt management with lower
bad debt write-offs ($2m)
»Lower fixed ICT costs after the move to the cloud
($2m)
»Other operational efficiencies realised ($2m)
Continued focus on the controllable aspects of the
business led to a 9% reduction in other operating
costs
Progress on strategy
4
2
2
2
1
11
125
114
100
105
110
115
120
125
130
1H17 other
operating
costs
LabourBad debtsICTContinous
improvement
initiatives
Insurance
and other
corporate
1H18 other
operating
costs
$m

Contact EnergyAnnual meeting of shareholders
October 2016
Operational and financial review
Graham Cockroft
1H18 Results 12 February 2018
Presentation Contact Energy Limited

Contact EnergyAnnual meeting of shareholders
October 2016
19
Underlying profit down 28% from $82m in 1H17 to $59m
Contact’s statutory profit
»Underlying profit of $59m, was down
$23m (28%), reflecting the $28m
reduction in EBITDAF and increased
depreciation and amortisation, which
resulted in a lower tax expense of
$8m on underlying
»Net interest costs reduced by $5m on
lower interest rates and a reduction
in average debt
»The net significant item excluded
from underlying profit in the current
period was the reduction in the fair
value of financial instruments of $2m.
The associated tax credit was $1m
(1H17 $5m tax expense)
Statutory profit of $58m, down $38m on lower
operating earnings
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Financial performance compared
to 1H17
28
8
14
5
8
1
96
82
59
58
0
10
20
30
40
50
60
70
80
90
100
1H17 statutory
profit
Net items
excluded from
underlying
profit
1H17
underlying
profit
EBITDAFDepreciation &
amortisation
Net interest
costs
Tax1H18
underlying
profit
Net items
excluded
from
underlying
profit
1H18 statutory
profit
$m
Operational and financial
review

Contact EnergyAnnual meeting of shareholders
October 2016
20
Customer segment
»Customer EBITDAF of $63m is $3m (5%) lower than 1H17 with
increasing retail margins but lower electricity sales volumes
•Electricity and gas netback was down $5m (1%) to $347m, with
reduced electricity sales to customers offsetting a higher netback /
MWh as cost to serve reduced by 11%
•Electricity purchase costs reduced by $5m, with the higher
electricity transfer price (2%) offset by reduced electricity sales
volumes (-136 GWh). Retail gas purchase costs were $1m higher
as higher sales volumes more than offset lower gas product costs
•LPG EBITDAF was down by $3m on the prior period due to higher
LPG product costs.
»Generation EBITDAF of $173m was $25m lower than 1H17
•Cost of energy was up by $20m to $123m, with significantly lower
hydro generation which resulted in increased thermal generation
and the purchase of market hedges.
•Electricity sales to the Customer business of $296m, $5m lower
than 1H17
EBITDAF movement
EBITDAF down $28m, primarily due to weak
hydrology
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Generation segment
Operational and financial
review
3
25
264
236
195
205
215
225
235
245
255
265
FY17 ActualCustomerGenerationFY18 Actual
$m
Unfavourable

Contact EnergyAnnual meeting of shareholders
October 2016
37
35
1
6
5
1
1
2
7
8
1
23
28
33
38
43
48
FY17
Actual
NetbackEnergy
costs
VolumeNetbackEnergy
costs
VolumeNetbackEnergy
costs
VolumeFY18
Actual
$m
21
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Operational and financial
review
EBITDAF from electricity sales totaled $35m in 1H18,
down $2m (6%) from the prior period
»Mass market electricity sales EBITDAF was flat in the period despite a
35 GWh decrease in sales volumes
»Residential electricity sales volumes were down by 55 GWh to
1,343 GWh
»Netback was down by $1/MWh as tariff increases and a
reduction in cost to serve were more than offset by network
cost increases
»Energy purchase costs per MWh reduced as transfer prices for
the period were lower, leading to net margin expansion
»Lower sales volumes saw EBITDAF flat at $14m
»SME electricity sales volumes were up 20 GWh up (4%) to 564
GWh.
»Netback ($/MWh) was down by $2/MWh as a decline in
average tariffs and an increase in network costs was partially
offset by a reduction in cost to serve.
»Higher sales volumes saw EBITDAF flat at $13m
»C&I electricity EBITDAF of $8m, was $2m lower than 1H17 driven by a
101 GWh decrease in sales volumes. The C&I market remains
competitive with margins and volumes lower than historic averages.
»Netback ($/MWh) was up 4% as C&I customers on spot linked
contracts paid higher tariffs in the period.
Customer electricity EBITDAF down $2m as
lower sales volumes offset netback expansion
Electricity EBITDAF movements
Residential
electricity sales
SME
electricity sales
C&I electricity
sales
---$2m
Mass market electricity

Contact EnergyAnnual meeting of shareholders
October 2016
22
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Operational and financial
review
EBITDAF from gas, LPG and other revenue totaled
$28m in 1H18, down $1m
»Retail gas sales EBITDAF of $7m, up $2m on the prior period
»Residential gas netback ($/MWh) was up by $1/MWh with
volumes flat. Residential gas EBITDAF of $3m.
»SME and C&I gas sales were up 61 GWh (+48%) to 188
GWh. Net margin was down by $1/MWh as lower tariff was
partially offset by a reduction in network costs and lower gas
purchase costs. The increasing sales volumes saw EBITDAF
of $4m, up $2m.
»LPG EBITDAF was down by $3m in the period to $18m
»LPG sales volumes were up 266T (1%) as Contact gained an
average of 6,400 new LPG customers. Netback ($/T) was up
as some price changes were made in October. LPG product
costs increased by $4m (17%) on 1H17
»Other EBITDAF was flat on the prior period at $3m
Strong increases in gas and LPG sales volumes,
offset by sharply higher LPG product costs
Customer segment EBITDAF movements continued
1
-
1
2
4
29
28
25
26
27
28
29
30
31
32
33
34
35
FY17
Actual
NetbackEnergy
costs
VolumeNetbackProduct
cost
VolumeOther
income
FY18
Actual
$m
Gas salesLPG
-$3m+$2m

Contact EnergyAnnual meeting of shareholders
October 2016
23
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Operational and financial
review
Generation EBITDAF down by $25m (13%). Led by a
$20m (20%) increase in the cost of energy and a $5m
(2%) reduction in electricity sales revenue from Customer
»Lower renewable generation volumes in 1H18 impacted EBITDAF by
$9m with an 7% (264 GWh) reduction in renewable generation
»Hydro generation of 1,635 GWh was down 438 GWh (21%) on
1H17 and significantly below the mean of 1,958 GWh (17%)
»Geothermal generation of 1,726 GWh was up by 174 GWh
(11%) after a favourablevariation to the mass take consent
and the 1H17 Te Mihioutage was not repeated
»To compensate for the lower renewable production volumes, thermal
generation volumes were up by 281 GWh (41%), with a
corresponding increase in gas, transmission and carbon costs
»Wholesale market returns were down by $4m as higher wholesale
prices received for net generation ($15m) and lower market
purchases ($5m) were offset by hedging costs and the mark-to-
market of CfDsas average wholesale prices increased. Impact of the
80MW contract to support Tiwaiseen on comparison to 1H17
»Electricity sales to the Customer business reduced by $5m with
higher ASX pricing increasing the transfer price ($7m) offset by
reduced sales volumes ($12m)
»Operating costs for 1H18 of $57m were down $4m (7%) on lower
corporate cost allocation and geothermal efficiencies
Lower renewable generation volumes and supply to
Tiwaiimpacted Generation EBITDAF
Generation segment EBITDAF movement
18
9
15
17
4
9
5
4
198
173
150
160
170
180
190
200
210
FY17 ActualHydro
generation
volumes
Geothermal
generation
volumes
Thermal
generation
volumes
Gas,
transmission
and carbon
costs
Wholesale
markets (incl
MTM of
CfDs)
TiwaiSales to
Customer
Operating
costs
FY18 Actual
$m
UnfavourableFavourable

Contact EnergyAnnual meeting of shareholders
October 2016
24
Contact operates in weather dependent
commodity markets
»1H18 has seen a sustained and sharp increase to oil linked LPG
product costs which are up 17% on 1H17
»Some LPG price changes processed in October for
reticulated network customers. Pricing for all channels
currently under review.
»Hydro generation in July 17 of 185 GWh, was down 210 GWh
or 53% on July 16
»Additional thermal generation and risk management
hedges saw cost of energy elevated until September
when hydro inflows briefly returned to mean
Hydrological variability is managed by using
portfolio flexibility and a strong risk management
framework
Contact is not integrated into upstream LPG supply
and is exposed to the fluctuations in oil linked
commodity prices
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Change in Generation EBITDAF 1H18 vs 1H17
Operational and financial
review
(600)
(500)
(400)
(300)
(200)
(100)
-
100
200
(25)
(20)
(15)
(10)
(5)
-
5
JulAugSepOctNovDec
GWh
$m
Generation EBITDAFRenewable generationThermal generation
International LPG pricing (50% propane, 50% butane)
Source: Bloomberg
250
350
450
550
650
750
850
950
Jul-15Oct-15Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17Oct-17
NZD / T
Saudi aramco CP (NZD)FY average
1H171H18

Contact EnergyAnnual meeting of shareholders
October 2016
0
20
40
60
80
100
120
FY16FY17FY18FY19FY20FY21
$m
Generation - TCC
Customer and Corporate
Generation - Plant maintanence and continous improvement
25
Focus continues on the reduction of both
operating and capital expenditure
»1H18 accounting capex of $40m, $23m lower than 1H17. Cash
spend on capex of $39m, $26m down on 1H17
»FY18 capex expected to be $75m, including $15m to complete
TCC refurbishment
»1H18 other operating expenses of $114m, $11m lower than
1H17
•Labour costs down primarily due to reduced FTE (down
120 since June) and lower employee incentive payments
($4m)
•Lower fixed ICT costs following the move to the cloud
($2m)
•Continued strong debt management with lower bad debt
write-offs ($2m)
•Operational efficiency projects ($2m)
•Lower insurance and other corporate costs ($1m)
Other operating expenses
Capital expenditure and targets
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Sustainable capex, including that to maintain
generation capacity, is between $70 -$80m per
annum and includes:
»Thermal plant refurbishment
»Geothermal well drilling to maintain
geothermal generation at 3,300 GWh
per annum
»Continuous improvement initiatives
»Plant and systems maintenance
»Excludes capex associated with
Wairakei extension post 2026
Operational and financial
review

Contact EnergyAnnual meeting of shareholders
October 2016
26
Following the progress on delivering on our cost efficiency targets despite lower operating earnings
Operating free cash flow per share up by 5%
1H18 Results 12 February 2018
Presentation Contact Energy Limited
»The definition of stay in business capital expenditure was refined during FY17 to include spend on restoration / environmental rehabilitation and
capital expenditure to increase revenue from existing assets. This increases the hurdle for capital expenditure to be excluded from operating
free cash flow.
»EBITDAF down $28m
»Tax paid down by $5m on 1H17 on lower
profit before tax
»Unfavourable working capital movements
of $8m, primarily due to the purchase of
additional NZ carbon units for surrender in
future periods
»Stay in business capital expenditure was
down by $29m on the implementation of
detailed asset management plans and the
following capital projects in 1H17 not
repeating
»Statutory Te Mihioutage ($5m),
process safety investment
programme($2m) and the ICT
Change and Transition programme
($18m)
6months
ended
6months
ended
Variance on1H17
$m
31 December
2017
31 December
2016
$m%
EBITDAF236264(28)
(11%)
Tax (paid)/received(20)(25)5
20%
Change in working capital net of non-cash,
investing and financing activities
(4)4(8)
Non-cash items included in EBITDAF46(2)
33%
Significant items, net of non-cash amounts-(6)6
Operating cash flows216243(27)
(11%)
Net interest paid(40)(45)5
11%
Stay in business capital expenditure(35)(64)29
45%
Operating free cash flow1411347
5%
Proceeds from sale of assets-2(2)
Free cash flow1411365
4%
Operating free cash flow per share (cents)19.718.71.0
5%
Operational and financial
review

Contact EnergyAnnual meeting of shareholders
October 2016
0
40
80
120
1H171H18
$m
DividendsNet debt repaymentsIncrease in cash balance
Gas swapGrowth capex
27
Debt reduced by $14m in 1H18
Interim dividend for 1H18 up 18% to 13 cents per
share
»Face value of net borrowings reduced by $14m to $1,531m
as surplus cash was applied to debt repayment
»Cash on hand increased by $10m since 30 June 2017
»Gearing reduced to 35% at 31 December 2017, down from
36% at 30 June 2017
»$191m in debt repayment since 30 June 2015
»Interim dividend of 13 cents per share (1H17 11 cents per
share), which is fully imputed. This represents a pay-out of
66% of operating free cash flow per share.
»Target FY18 ordinary dividend remains 32 cents per share
»Record date 16 March 2018; payment date 6April 2018
•The NZD/AUD exchange rate used for the payment of
Australian dollar dividends will be set in late March
Uses of free cash flow
Strong free cash flow allows for continued debt
repayment and higher shareholder distributions
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Operational and financial
review

Contact EnergyAnnual meeting of shareholders
October 2016
Outlook
Dennis Barnes
1H18 Results 12 February 2018
Presentation Contact Energy Limited

Contact EnergyAnnual meeting of shareholders
October 2016
29
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Outlook
C&I load to be re-contracted at higher
futures pricing
03
04
05
Government’s decarbonisation agenda
aligns strongly with our strategy
Delivering on continuous improvement
initiatives to sustainably lower ongoing costs
Short-term performance impacts and opportunities
01
02
Increasing returns for Contact thermal
generation assets
Reversion to mean hydrology
Electricity Pricing Review has the potential to
be distracting
03
04
LPG product costs up; discipline needed to
pass through product cost changes
01
02
Persistent low inflows into the Clutha
catchment; increasing Contact’s cost of
energy. Each GWh of hydro generation below
mean has a replacement cost of between
$0.35m -$1m depending the timing
Lowest 1 January hydro storage since 2008,
low snow storage
Challenges
Opportunities

Contact EnergyAnnual meeting of shareholders
October 2016
30
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Outlook
Cost efficiency programme on track to deliver on
the guided controllable cost reduction
27%
2%
9%
12-17%
0
50
100
150
200
250
300
350
400
450
FY15FY16FY17FY18
$m
Other operating costsAGS operating costsTransition costsCapital expenditure
FY15FY16FY17FY18f
Other operating
costs
$263m$247m$243m$225 -235m
Costsexcluded
from underlying
$24m$10m$12m-
AGS operating
costs
$5m$6m-
1
-
Capital
expenditure
$105m$128m$102m$70 -80m
Controllable
costs
$397m$391m$357m$295 -315m
Improvement on
prior year
$146m$6m$34m$62 -42m
1H18 vs 1H17
19%
1
From FY17, AGS operating costs have been included in other operating costs

Contact EnergyAnnual meeting of shareholders
October 2016
31
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Organisational agility is vital to capturing value
in a customer inspired world
Evolving capability within the Customer business gives Contact confidence that we are well positioned to capture
value for shareholders as we shift from operational retailing
»Accelerate the move to a simple, lean operating model centred
on the customer experience reinventing key customer
experiences and processes
»Capable employees, identifying and driving performance
initiatives with ownership and accountability –enabled by the
shift to assignment based operating structures.
»Digital bolt-on strategies do not work. Transform technology to
drive both efficiency and better automated customer
experiences.
»Execution culture embedded, where speed to deployment is
vital to extracting the maximum value from delivery
»Repositioning the brand and reputation from a strong
operational retailer to a smart customer solutions provider
Keys to extracting value
Seek opportunities for scale efficiencies,
where value is created for Contact
shareholders
03
01
02
Best-in-class retailer, reducing CTS while
growing customer advocacy –vital to
expand margins in a competitive market with
limited tariff growth
Accelerate the delivery of performance
initiatives, that build a culture of confidence,
accountability, and execution
Outlook

Contact EnergyAnnual meeting of shareholders
October 2016
32
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Competitive new renewable generation is required
to support further decarbonisation
Outlook
»Contact has improved the efficiency of its geothermal fleet by 6% since
1H15, the first full period after Te Mihiwas commissioned
»Consenting and stakeholder relationship management has seen
favourable consenting outcomes
»Variations to the mass take consent and the maintenance of spare
plant capacity allows for the seasonal shaping of generation and
outages to be recovered. For CY15 through CY17 Contact has
extracted 99% of consented mass.
»Average annual geothermal volumes now 3,350GWh
»Cash cost of geothermal operation (capex + opex) of $20/MWh since Te
Mihicommissioning
»No drilling planned before FY20
»For geothermal to be built to meet demand, Contact will continue to lower
the cost of geothermal to ensure cost competitive with firmed intermittent
renewables
»Tauharaconsented for development (250MW), incremental
development options to match sustainable demand
Geothermal efficiency improvements
Contact has a world class geothermal capability, a track record of improving plant efficiency and a consented
resource of scale to support future demand from the decarbonisation of New Zealand
Geothermal cash costs since Te Mihicommissioning
$20.3/MWh
$19.9/MWh
$20.3/MWh
$0
$5
$10
$15
$20
$25
(10)
10
30
50
70
FY15 FY16 FY17
Cash cost / MWh
generated
Direct cash cost of
geothermal ($m)
Capex costsGeothermal operating costs
Transmission and leviesCarbon charges
29.0
29.5
30.0
30.5
31.0
31.5
32.0
32.5
0
500
1,000
1,500
2,000
1H151H161H171H18
Wairakei field masstake
conversion efficiency
(GWh/million tonnes)
Wairakei, Te Mihi and
Poihipi geothermal
generation (GWh)
Geothermal generationEfficiency

Contact EnergyAnnual meeting of shareholders
October 2016
Distribution policy will grow returns to
shareholders as gearing reduces
Target ordinary
dividend of between
once the S&P net debt /
EBITDAF ratio is below 2.8x
80-90%
of Operating Free Cashflow
We are
transitioning
to a new
distribution
policy
Contact will announce the targeted
ordinary dividend in August each year
Interim dividend
Final dividend
40%
of expected total
April
Sept
The challenge is
to bring growth
options closer
32cps
up
+23%
on FY17
FY18 Target
ordinary dividend
33
60%
Outlook
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Interim dividend for 1H18 of 13 cents per share which is fully imputed. This represents a pay-out of 66%
of operating free cash flow per share despite weak hydro inflows impacting EBITDAF.

Contact EnergyAnnual meeting of shareholders
October 2016
Supporting material
1H18 Results 12 February 2018
Presentation Contact Energy Limited

Contact EnergyAnnual meeting of shareholders
October 2016
35
Electricity market conditions
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Appendix –Supporting
material
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201630/12/201630/06/2017
Price and national storage levels
Otahuhufutures settlement price (ASX settlement)
0
20
40
60
80
100
120
140
160
180
200
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17Oct-17Jan-18
$/MWh
GWh
Mean Storage (GWh)Actual Storage7-day simple moving average Otahuhu spot price ($/MWh)

Contact EnergyAnnual meeting of shareholders
October 2016
36
Plant availability improved in 1H18
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Generation by sourcesPlant reliability and generation revenue
Appendix –Supporting
material
NetPlant availability
1
CapacityElectricityPool revenue
capacity1H181H17factoroutput
(MW)(%)(%)(%)(GWh)($/MWh)($m)
Hydro78495%91%47%1,635 88144
Geothermal42997%89%91%1,726 86148
Taranaki Combined Cycle (TCC)37751%95%28%463 11051
Te Rapa (spot only)
41
99%100%74%133 9312
Peakers (incl Whirinaki)36098%96%23%370 12044
Total1,991 88%92%49%4,327 92 399
Wairakei geothermal fluid extracted (kT)45,55942,387
Wairakei geothermal fluid consented (kT)
pro-rata²
45,08045,080
% of geothermal fluid extracted against pro
rata consent
101%94%
Wairakei, Poihipi and Te Mihi generation
(GWh)
1,4581,299
Efficiency (MWh/kT)32.0030.654%improvement
1
Measures reliability of our generation plants.% of totalhours the plant is available to run.
² Contact obtained a variation to the Wairakei mass take consent in September 2017. This allows for the extraction of 245,000tonnesof geothermal fluid per
day on average over a year. Previously the take was reset quarterly.
$-
$5
$10
$15
$20
$25
$30
$35
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1H162H161H172H171H18
GeothermalHydroTCC and Te RapaPeakersCost of energy
GWh
$/MWh

Contact EnergyAnnual meeting of shareholders
October 2016
37
Contracted gas volumes
Gas purchased for FY18 requirements, to augment gas
available in storage
1H18 Results 12 February 2018
Presentation Contact Energy Limited
»Working volume in Ahuroa gas storage at 31 December 2017 was7.1 PJ
Ahuroa gas storage monthly injections and extractions
Appendix –Supporting
material
-1.0
-0.5
0.0
0.5
1.0
1.5
JulAugSepOctNovDec
FY18 net extractionsFY17 net extractions
FY18 cumulative net extractionsFY17 cumulative net extractions
Extractions (PJ)
0
5
10
15
20
25
30
CY15CY16CY17CY18CY19CY20
PJ
GenesisSwapMauiToddOther

Contact EnergyAnnual meeting of shareholders
October 2016
38
Transfers of value between the two segments
appropriately reflect market conditions
»The fixed price, variable volume transfer price between the Customer and Generation segments is set in a manner similar to
transactions with independent retailers to enable an accurate picture of the financial performance of each segment.
»A prudent retailer, offering fixed price variable volume products
would contract their forecast load incrementally. For Customer, 90
days before the start of a quarter the electricity transfer price is
fixed and takes into account:
•The simple average of ASX settlement prices for the
preceding 3 years for the quarter to be contracted
•Adjustments for location, seasonality and line loss based on
the Customer business load profile for preceding 12 months
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Inter-segment electricity and gas transfer price
Inter-segment electricity transfer price
Mass market electricity
C&I electricity
Gas sales
»The price path agreed between Generation and Customer at
the time of contracting with the C&I customer
»Market price for flexible gas including a carbon cost
component
Appendix –Supporting
material
5
5.5
6
6.5
7
7.5
8
50
60
70
80
90
100
110
120
Jul 2015Oct 2015Jan 2016Apr 2016Jul 2016Oct 2016Jan 2017Apr 2017Jul 2017Oct 2017
Retail gas transfer price ($/GJ)
Electricity transfer
price ($/MWh)
C&I ($/MWh)MM ($/MWh)Retail gas includes carbon ($/GJ)

Contact EnergyAnnual meeting of shareholders
October 2016
28%
30%
9%
29%
4%
Bank DebtDomestic bondsCPUSPPNEXI
39
Contact’s balance sheet is supported by a robust
funding portfolio
1H18 Results 12 February 2018
Presentation Contact Energy Limited
»Contact benefits from a funding portfolio that is flexible, efficient, diverse and has a manageable maturity profile:
•$525m total committed bank facilities ($106m drawn as at 31 December 2017) and $180m commercial paper
•Weighted average tenor of funding facilities 3.5 years
»Average weighted cost of borrowings down 0.3% from 1H17 to 4.9% in 1H18
»Contact entered into a $100m bridge facility available from 28 March 2018 with a maturity of 12 months, to manage USPP notes maturing in 2018. Not
included in the funding maturity profile chart above.
Funding maturity profile
Funding sources
Appendix –Supporting
material
-
50
100
150
200
250
300
350
400
450
FY18FY19FY20FY21FY22FY23FY24FY25-FY29
$m
Maturity
NEXIUSPPDomestic bondsBank

Contact EnergyAnnual meeting of shareholders
October 2016
40
»EBITDAF is Contact’s earnings before net interest expense, tax, depreciation, amortisation, change in fair value of financialinstruments and other
significant items
»EBITDAF is commonly used in the electricity industry so provides a comparable measure of Contact’s performance at segment and group levels
»Reconciliation of EBITDAF to statutory profit:
Non-GAAP profit measure -EBITDAF
1H18 Results 12 February 2018
Presentation Contact Energy Limited
»Depreciation and amortisation, change in fair value of financial instruments, net interest and tax expense are explained in the following slide
Appendix –Supporting
material
Six months endedSix months endedVariance
$m31 December 2017 31 December 2016 $m%
EBITDAF236 264 (28)(11%)
Depreciation and amortisation(109)(101)(8)(8%)
Significant items(2) 19 (21)
Net interest expense(43)(48)5 10%
Tax expense(24)(38) 1437%
Profit58 96(38) (40%)

Contact EnergyAnnual meeting of shareholders
October 2016
41
»The adjustments from EBITDAF to reported profit are as follows:
•Depreciation and amortisation: Increased by $8m (8%) due to higher depreciation on TCC resulting from higher thermal generation. Forecast
depreciation for FY18 expected to be between $215 million and $220 million.
•Change in fair value of financial instruments, which totalled $2m in 1H18 reflecting a unfavourable movement in interest rate derivatives over the
period
•Other significant items are detailed on the next two slides
•Net interest expense decreased $5m (10%) to $43m in 1H18 due to reduced average borrowings and lower average interest rates (0.3% on 1H17).
The impact on net interest as a result of the adoption of NZ IFRS 16 is estimated at $1m per annum.
•Tax expense for 1H18 is $24m compared to $38m in 1H17, with the key driver being lower operating earnings.Tax expense represents an effective
tax rate of29%.
Explanation of reconciliation between EBITDAF and
profit
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Appendix –Supporting
material

Contact EnergyAnnual meeting of shareholders
October 2016
42
»Underlying profit provides a consistent measure of Contact’s ongoing performance
»Underlying profit excludes the effect of significant items from reported profit. Significant items are determined based on principles approved by the Board of
Directors
»Other significant items are determined in accordance with the principles of consistency, relevance and clarity. Items considered for classification as other
significant items include impairment or reversal of impairment of assets; business integration, restructure, acquisition and disposal costs; and transactions
or events outside of Contact’s ongoing operations that have a significant impact on reported profit
»Reconciliation of statutory profit for the year to underlying profit:
Non-GAAP profit measure –underlying profit
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Appendix –Supporting
material
Six monthsendedSix monthsendedVariance
$m31 December 2017 31 December 2016 $m%
Profit5896(38) 40%
Change in fair value of financial instruments2(30) 32
Transition costs-7 (7)
Remediation for Holidays Act non-compliance-5 (5)
Asset impairments---
Write down of inventory gas---
Otahuhuthermal power station closure and sale-(1) 1
Tax on items excluded from underlying profit(1)5(6)
Underlying profit59 82 (23)(28%)

Contact EnergyAnnual meeting of shareholders
October 2016
43
»The only adjustment from reported profit to underlying profit for 1H18 (also adjusted in 1H17) was the:
•Change in the fair value of financial instruments: Movements in the valuation of interest rate and electricity price derivatives that are not accounted
for as hedges, hedge accounting ineffectiveness and the effect of credit risk on the valuation of hedged debt and derivatives.
Explanation of reconciliation from reported profit to
underlying profit
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Appendix –Supporting
material
»The adjustments from reported profit to underlying profit for 1H17 are as follows:
•Change in the fair value of financial instruments (see above).
•Transition costs: incurred as a result of the ICT Change and Transition programme which has significantly changed Contact’s ICT infrastructure and
service delivery. Included in the cost is $1m of accelerated depreciation. This project completed in FY17.
•Remediation for Holidays Act non-compliance: At 30 June 2016, Contact disclosed a contingent liability for non-compliance with aspects of the
Holidays Act 2003. At 31 December 2016, a provision representing the best estimate of the cost to resolve the issue, including payments to current
and previous employees, was recognised. There has been no subsequent adjustment to this provision during FY18. Actual payments may differ to
the estimate and the cost recognised will be adjusted accordingly.

Contact EnergyAnnual meeting of shareholders
October 2016
44
»
Contact has elected to early adopt NZ IFRS 15 Revenue from Contracts with Customers (‘revenue standard’) and NZ IFRS 16 Leases(‘leases
standard’) for the year ending 30 June 2018. Both standards have been adopted retrospectively. This has resulted in the restatement and/or
reclassification of comparatives to conform with the current period’s classification.
»
With the adoption of the revenue standard the incremental costs incurred to acquire new customers are capitalisedas a contract asset instead of
being expensed as incurred. The contract asset is amortisedto operating expenses over the expected life of the customer relationship. Direct
customer incentives are also capitalisedas a contract asset and amortisedto revenue, which is consistent with the previous accounting treatment.
The amortisationperiod has been revised from the contract term to the expected life of the new customer relationship which is 3 years. At 31
December 2017 contract assets held within ‘Trade and other receivables’ totalled$13 million (31 December 2016: $11 million, 30 June 2017: $12
million). The average customer relationship is currently 5 years.
Impact of adoption of accounting standards to
previously reported periods
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Appendix –Supporting
material
6 months ended 31 December 201612 months ended 30 June 2017
$mUnauditedIFRS 15IFRS 16RestatedAuditedIFRS 15IFRS 16Restated
Revenue and other income1,039 (2)1,037 2,080 (1)2,079
Cost ofsales(650)2 (648)(1,338)3 (1,335)
Other operating expenses(128)3 (125)(248)5 (243)
EBITDAF261 264 494 501
Significant items19 19 11 11
Depreciation and amortisation(99)(2)(101)(204)(4)(208)
Net interest expense(47)(1)(48)(92)(1)(93)
Tax expense(38)(38)(59)(1)(60)
Profit96 96 150 151

Contact EnergyAnnual meeting of shareholders
October 2016
45
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Customer segment
Appendix –Supporting
material
Customer segment6 months ended 6 months ended Variance
$m31 December 2017 31 December 2016 $m%
Mass market electricity458 465 (7)(2%)
Commercial & industrial electricity223 231 (8)(3%)
Gas39 36 3 8%
LPG63 62 1 2%
Other income3 3 --
Total revenue and other income786 797 (11)(1%)
Inter-segment electricity purchases(296)(301)5 (2%)
Gas purchases(9)(8)(1)13%
LPG purchases(36)(33)(3)9%
Electricity networks, levies & meter costs(304)(305)1 -
Gas networks, levies & meter costs(20)(19)(1)5%
Emission costs(1)(1)--
Total direct costs(666)(667)1 -
Other operating expenses(57)(64)7 (11%)
EBITDAF63 66 (3)(5%)
Mass market electricity sales (GWh)1,907 1,942 (35)(2%)
Commercial & industrial electricity sales (GWh)1,704 1,806 (102)(6%)
Retail gas sales (GWh)452 392 60 15%
Total retail sales (GWh)4,063 4,140 (77)(2%)
LPG sales (tonnes)38,378 38,112 266 1%
Average electricity sales price ($/MWH)188.75 185.90 2.85 2%
Electricity direct pass through costs ($/MWh)(84.21)(81.43)(2.78)4%
Electricity and gas cost to serve ($/MWh)(12.05)(13.61)1.56 11%
Electricity and gas netback ($/MWh)85.38 84.95 0.43 1%
Actual electricity line losses (%)6% 5% 1% (20%)
Retail gas sales (PJ)1.4 1.3 0.1 (8%)
Electricity customer numbers (closing)420,000 421,000 (1,000)-
Retail gas customer numbers (closing)64,500 62,500 2,000 3%
LPG customer numbers (closing)84,000 76,500 7,500 10%

Contact EnergyAnnual meeting of shareholders
October 2016
46
1H18 Results 12 February 2018
Presentation Contact Energy Limited
Generation segment
Appendix –Supporting
material
Generation segment6 months ended 6 months ended Variance
$m31 December 2017 31 December 2016 $m%
Wholesale electricity388 222 166 75%
Commercial & Industrial electricity5 4 125%
Inter-segment electricity sales296 301 (5)(2%)
Steam14 14 --
Other income1 -1
Total revenue and other income704 541 163 30%
Electricity purchases(381)(206)(175)(85%)
Gas purchases(57)(44)(13)(30%)
Electricity networks & levies(24)(24)--
Gas networks & levies (5)(4)(1)(25%)
Carbon emissions(7)(4)(3)(75%)
Total cost of goods sold(474)(282)(192)(68%)
Other operating expenses(57)(61)4 7%
EBITDAF173 198 (25)13%
Thermal generation (GWh)966 685 281 41%
Geothermal generation(GWh)1,726 1,552 174 11%
Hydro generation (GWh)1,635 2,073 (438)(21%)
Spot market generation (GWh)4,327 4,310 17 -
Spot electricity purchases (GWh)3,846 3,955 (109)(3%)
CfDsales (GWh)149 161 (12)(7%)
Steam sales330 349 (19)(5%)
Commercial & industrial electricity sales50 52 (2)(4%)
GWAP ($/MWh)92.40 47.04 45.36 96%
LWAP ($/MWh)(98.86)(52.82)(46.04)(87%)
LWAP/GWAP (%)107% 112% (5%) 4%
Gas used in internal generation (PJ)9.5 7.4 2.1 28%
Gas storage net movement (PJ)(0.8)(0.8)--
Unit generation costs ($MWh)(34.3)(31.4)(2.9)(9%)
Cost of energy ($MWh)(30.53)(25.07)(5.46)(22%)