March 2018 Operating Report

Monthly Operating Report
March 2018

»For the month of March 2018 Contact recorded:
•Electricity and gas sales of 603 GWh (March 2017:
621 GWh)
•Netback of $86.51/MWh (March 2017:
$88.94/MWh)
•Cost of energy was $25.07/MWh (March 2017:
$24.77/MWh)
»Otahuhu futures settlement wholesale price for the 2
nd
quarter of 2018 (ASX):
•As at 11 April 2018: $69/MWh
•As at 31 March 2018: $67/MWh
•As at 28 February 2018: $68/MWh
»As at 11 April 2018, South Island controlled storage was
110% of mean (31 March 2018: 107%) and North Island
controlled storage was 144% of mean (31 March 2018:
152%)
•As at 11 April, total Clutha scheme storage
(including uncontrolled storage) was 74% of mean
•Inflows into Contact’s Clutha catchment for March
2018 were at 112% of mean (February 2018: 119%,
January 2018: 44%, December 2017: 50%)
March overview
Operating reportContact Energy Limited
2
»Contact is actively working with customers to help
them identify opportunities to transition to flexible,
efficient, low-carbon energy solutions.
»A video series highlighting our role in a low-carbon
future is available to view 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
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Apr
17
May
17
Jun
17
Jul
17
Aug
17
Sep
17
Oct
17
Nov
17
Dec
17
Jan
18
Feb
18
Mar
18
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
0
20
40
60
80
CY18CY19CY20CY21
$/MWh
30/06/201728/02/201829/03/2018
0
20
40
60
80
CY18CY19CY20CY21
$/MWh
30/06/201728/02/201829/03/2018

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
Mar 18Mar 17Feb 18
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Mar 18Mar 17Feb 18

-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
151617151617151617151617151617151617161718161718161718161716171617
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 March 2017*
Total national demand (FY16, 17 and 18)
»New Zealand electricity demand was down 2.2% on March 2017 (down 2.7%
on March 2016)
•Cumulative 12 months demand for April 2017 to March 2018 of 41,068
GWh is 1.0% higher than the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(3%)
(1%)
(3%)
(1%)
(12%)
(20%)
1%
(5%)
(5%)
4%
2%
1%
(1%)
Year
0%
(1%)
(6%)
(9%)

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 18 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 18 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
Ninemonths
ended
Nine months
ended
March 18March 17February 18March 18March 17
CustomerMass market electricity salesGWh265 265 234 2,654 2,694
Commercial & industrial electricity salesGWh288 319 263 2,540 2,693
Retail gas salesGWh50 38 37 573 496
Total electricity and gas salesGWh603 621 534 5,767 5,883
Average electricity sales price$/MWh186.64 182.89 182.60 187.56 184.46
Electricity direct pass thru costs$/MWh(82.37)(76.85)(82.64)(83.63)(81.01)
Electricity and gas cost to serve$/MWh(13.56)(13.96)(14.14)(12.62)(13.71)
Netback$/MWh86.51 88.94 82.16 85.22 84.75
Actual electricity line losses%4%6%4%5%6%
Retail gas salesPJ0.2 0.1 0.2 1.91.7
LPG sales tonnes5,293 5,293 4,417 52,639 52,615
Electricity customer numbers #417,500 421,500 418,500
Gas customer numbers #64,500 63,000 64,500
LPG customer numbers (includes
franchises)
#86,000 77,500 85,500
GenerationThermal generationGWh38 197 113 1,422 971
Geothermal generationGWh275 290 245 2,503 2,377
Hydro generationGWh323 255 267 2,417 2,997
Spot market generationGWh636 741 625 6,342 6,345
Spot electricity purchasesGWh575 620 518 5,494 5,701
CfD salesGWh75 141 77 428 530
Steam salesGWh51 58 46 470 513
Commercial & industrial electricity salesGWh9 9 8 77 79
GWAP $/MWh58 49 66 89.36 46.63
LWAP $/MWh(64)(53)(71)(95.77)(52.65)
LWAP/GWAP%110%108%107%107%113%
Gas used in internal generationPJ0.6 1.7 1.2 14.010.3
Gas storage net movementPJ0.3 (0.6)0.2 (0.72)(1.10)
Unit generation cost $/MWh(28.57)(33.34)(33.14)(34.43)(30.60)
Cost of Energy $/MWh(25.07)(24.77)(28.90)(29.79)(24.23)

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
Youtube.com/ContactEnergy
investor.centre@contactenergy.co.nz
contact.co.nz/aboutus/investor-centre
+64 4 462 1323
+64 21 072 8578
Investor Relations
Matthew Forbes -Investor Relations Manager
Contact Energy