May 2018 Operating Report

Monthly Operating Report
May 2018

»For the month of May 2018 Contact recorded:
•Electricity and gas sales of 685 GWh (May 2017:
711 GWh)
•Netback of $91.02/MWh (May 2017: $92.49/MWh)
•Cost of energy was $21.93/MWh (May 2017:
$34.48/MWh)
»Otahuhu futures settlement wholesale price for the 2
nd
quarter of 2018 (ASX):
•As at 15 June 2018: $65/MWh
•As at 31 May 2018: $65/MWh
•As at 30 April 2018: $65/MWh
»As at 15 June 2018, South Island controlled storage
was 118% of mean (31 May 2018: 127%) and North
Island controlled storage was 148% of mean (31 May
2018: 134%)
•As at 15 June 2018, total Clutha scheme storage
(including uncontrolled storage) was 49% of mean
•Inflows into Contact’s Clutha catchment for May
2018 were at 110% of mean (April 2018: 117%,
March 2018: 112%, February 2018: 119%)
May overview
Operating reportContact Energy Limited
2
»Over the past two months, Contact has announced
changes to the Board which will take effect from 1
September 2018
»As part of the changes, Rob McDonald (pictured),
currently a director of Contact will become
Chairman
»It is expected that Contact will appoint new
Directors over the coming months to fill the gaps
left by the resignation of Sir Ralph Norris and the
previously announced resignation of Sue Sheldon

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
Jun
17
Jul
17
Aug
17
Sep
17
Oct
17
Nov
17
Dec
17
Jan
18
Feb
18
Mar
18
Apr
18
May
18
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
0
20
40
60
80
CY18CY19CY20CY21
$/MWh
30/06/201730/04/201831/05/2018
0
20
40
60
80
CY18CY19CY20CY21
$/MWh
30/06/201730/04/201831/05/2018

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%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
May 18May 17Apr 18
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
May 18May 17Apr 18
0
20
40
60
80
100
120
140
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY17 BENFY18 BENFY17 OTAFY18 OTA

-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1516171516171516171516171516171516171617181617181617181617181617181617
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 May 2017
Total national demand (FY16, 17 and 18)
»New Zealand electricity demand was down 0.3% on May 2017 (up 4.7% on
May 2016)
•Cumulative 12 months demand for June 2017 to May 2018 of 41,139
GWh is 0.7% higher than the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(3%)
0%
(1%)
0%
(3%)
1%
2%
(1%)
6%
(11%)
2%
(1%)
0%
Year
2%
8%
(3%)
5%
6%

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 18 17 18 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 18 17 18 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
Eleven months
ended
Eleven months
ended
May 18May 17April 18May 18May 17
CustomerMass market electricity salesGWh325 338 285 3,264 3,320
Commercial & industrial electricity salesGWh285 302 267 3,092 3,282
Retail gas salesGWh75 71 57 706 614
Total electricity and gas salesGWh685 711 609 7,061 7,217
Average electricity sales price$/MWh193.58 192.93 190.90 188.43 185.37
Electricity direct pass thru costs$/MWh(83.46)(79.81)(82.71)(83.53)(80.94)
Electricity and gas cost to serve$/MWh(11.52)(13.36)(12.13)(12.47)(13.74)
Netback$/MWh91.02 92.49 90.22 86.22 85.54
Actual electricity line losses%8%8%5%6%5%
Retail gas salesPJ0.3 0.2 0.2 2.42.1
LPG sales tonnes6,783 7,124 5,556 64,978 65,079
Electricity customer numbers #417,500 422,500 417,500
Gas customer numbers #65,000 63,500 65,000
LPG customer numbers (includes
franchises)
#87,500 78,500 86,500
GenerationThermal generationGWh147 320 55 1,624 1,410
Geothermal generationGWh283 287 274 3,059 2,951
Hydro generationGWh380 195 366 3,163 3,399
Spot market generationGWh810 802 694 7,846 7,760
Spot electricity purchasesGWh663 694 582 6,740 6,984
CfD salesGWh88 99 77 593 670
Steam salesGWh39 29 55 564 593
Commercial & industrial electricity salesGWh4 4 8 89 91
GWAP $/MWh58.12 64.65 56.92 83.26 48.30
LWAP $/MWh(63.80)(69.54)(64.88)(89.96)(53.88)
LWAP/GWAP%110%108%114%108%112%
Gas used in internal generationPJ1.3 2.7 0.7 16.014.3
Gas storage net movementPJ0.4 (1.1)0.5 0.13 (2.42)
Unit generation cost $/MWh(28.68)(38.82)(24.82)(32.99)(31.80)
Cost of Energy $/MWh(21.93)(34.48)(16.21)(27.85)(25.59)

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