February 2018 Operating Report

Monthly Operating Report
February 2018

»For the month of February 2018 Contact recorded:
•Electricity and gas sales of 534 GWh (February
2017: 551 GWh)
•Netback of $82.16/MWh (February 2017:
$82.07/MWh)
•Cost of energy was $28.90/MWh (February 2017:
$23.05/MWh)
»Otahuhu futures settlement wholesale price for the 1
st
quarter of 2018 (ASX):
•As at 14 March 2018: $84/MWh
•As at 28 February 2018: $82/MWh
•As at 31 January 2018: $105/MWh
»As at 14 March 2018, South Island controlled storage
was 99% of mean (28 February 2018: 99%) and North
Island controlled storage was 162% of mean (28
February 2018: 165%)
•As at 14 March, total Clutha scheme storage
(including uncontrolled storage) was 67% of mean
•Inflows into Contact’s Clutha catchment for
February 2018 were at 119% of mean (January
2018: 44%, December 2017: 50%, November 2017:
69%)
February overview
Operating reportContact Energy Limited
2
»New Zealand has a big opportunity to leverage its
renewable electricity resources to decarbonisethe
economy. Contact is actively working with energy-
intensive business customers to help them identify
opportunities to transition to flexible, efficient, low-carbon
energy solutions.
»Watch the first two videos in our four part series about
our low-carbon future at
https://www.youtube.com/user/ContactEnergy

Hydro storage and forward prices
New Zealand controlled hydro storage against mean
Operating reportContact Energy Limited
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201731/01/201828/02/2018
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201731/01/201828/02/2018
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Mar
17
Apr
17
May
17
Jun
17
Jul
17
Aug
17
Sep
17
Oct
17
Nov
17
Dec
17
Jan
18
Feb
18
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean

Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0
20
40
60
80
100
120
140
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY17 BENFY18 BENFY17 OTAFY18 OTA
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Feb 18Feb 17Jan 18
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Feb 18Feb 17Jan 18

-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1516171516171516171516171516171516171617181617181617161716171617
GWh
North IslandSouth IslandNZAS
Electricity demand
Operating reportContact Energy Limited
5
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on February 2017*
Total national demand (FY16, 17 and 18)
»New Zealand electricity demand was down 2.6% on February 2017 (down
4.9% on February 2016, which contained 29 days).
•Cumulative 12 months demand for March 2017 to February 2018 of
41,142 GWh is 1.1% higher than the prior comparative period.
*Source: Contact –excludes large industrial
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(5%)
(15%)
1%
(1%)
(5%)
(23%)
(31%)
(3%)
2%
(3%)
4%
(1%)
2%
2%
Year
2%
0%
(7%)
1%

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

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

Contact’s operational performance
8
Operating reportContact Energy Limited
Measure
The month ended The month ended The month ended
Eight months
ended
Eight months
ended
February 2018February 2017January 2018February 2018February 2017
CustomerMass market electricity sales
GWh234 233 248 2,389 2,429
Commercial & industrial electricity sales
GWh263 288 286 2,253 2,374
Retail gas sales
GWh37 29 34 523 458
Total electricity and gas sales
GWh534 551 568 5,165 5,262
Average electricity sales price
$/MWh182.60 179.93 185.12 187.67 184.65
Electricity direct pass thru costs
$/MWh(82.64)(81.50)(81.92)(83.78)(81.51)
Electricity and gas cost to serve
$/MWh(14.14)(13.91)(14.31)(12.51)(13.68)
Netback
$/MWh82.16 82.07 85.62 85.07 84.26
Actual electricity line losses
%4%6%4%6%5%
Retail gas sales
PJ0.2 0.1 0.1 1.7 1.6
LPG sales
tonnes4,417 4,535 4,551 47,346 47,323
Electricity customer numbers
#418,500 421,000 419,000
Gas customer numbers
#64,500 62,500 64,500
LPG customer numbers (includes franchises)
#85,500 77,000 85,000
GenerationThermal generation
GWh113 50 305 1,384 774
Geothermal generation
GWh245 253 257 2,229 2,087
Hydro generation
GWh267 314 191 2,093 2,743
Spot market generation
GWh625 617 753 5,706 5,603
Spot electricity purchases
GWh518 554 556 4,919 5,081
CfD sales
GWh77 97 127 353 389
Steam sales
GWh46 51 44 419 455
Commercial & industrial electricity sales
GWh8 8 10 68 70
GWAP
$/MWh66 44 118 93 46
LWAP
$/MWh(71)(53)(131)(99)(53)
LWAP/GWAP
%107%119%111%107%114%
Gas used in internal generation
PJ1.2 0.6 2.7 13.4 8.6
Gas storage net movement
PJ0.2 0.2 (0.5)(1.1)(0.5)
Unit generation cost
$/MWh(33.14)(28.41)(41.19)(35.09)(30.24)
Cost of Energy
$/MWh(28.90)(23.05)(30.31)(30.34)(24.16)

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

Keep in touch
Operating reportContact Energy Limited
10
contact.co.nz
@ContactEnergy
Linkedin.com/company/contact-energy-ltd
Facebook.com/contactenergy
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investor.centre@contactenergy.co.nz
contact.co.nz/aboutus/investor-centre
+64 4 462 1323
+64 21 072 8578
Investor Relations
Matthew Forbes -Investor Relations Manager
Contact Energy