June 2018 Operating Report

Monthly Operating Report
June 2018

»For the month of June 2018 Contact recorded:
•Electricity and gas sales of 742 GWh (June 2017:
734 GWh)
•Netback of $93.51/MWh (June 2017: $97.46/MWh)
•Cost of energy was $29.34/MWh (June 2017:
$47.39/MWh)
»Otahuhu futures settlement wholesale price for the 3
rd
quarter of 2018 (ASX):
•As at 18 July 2018: $67/MWh
•As at 30 June 2018: $75/MWh
•As at 31 May 2018: $66/MWh
»As at 18 July 2018, South Island controlled storage was
115% of mean (30 June 2018: 106%) and North Island
controlled storage was 138% of mean (30 June 2018:
127%)
•As at 18 July 2018, total Clutha scheme storage
(including uncontrolled storage) was 57% of mean
•Inflows into Contact’s Clutha catchment for June
2018 was 59% of mean (May 2018: 110%, April
2018: 117%, March 2018: 112%)
June overview
Operating reportContact Energy Limited
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»Financial results for the year ended 30 June 2018
will be released prior to the market opening on
Monday, 13 August 2018

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
CY18CY19CY20CY21
$/MWh
30/06/201731/05/201829/06/2018
0
20
40
60
80
CY18CY19CY20CY21
$/MWh
30/06/201731/05/201829/06/2018
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Jul
17
Aug
17
Sep
17
Oct
17
Nov
17
Dec
17
Jan
18
Feb
18
Mar
18
Apr
18
May
18
Jun
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%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
June 18June 17May 18
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
June 18June 17May 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
151617151617151617151617151617151617161718161718161718161718161718161718
GWh
North IslandSouth IslandNZAS
Electricity demand
Operating reportContact Energy Limited
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Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on June 2017
Total national demand (FY16, 17 and 18)
»New Zealand electricity demand was up 3.2% on June 2017 (up 5.6% on
June 2016)
•Cumulative 12 months demand for July 2017 to June 2018 of 41,254
GWh is 0.8% higher than the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
3%
4%
3%
3%
0%
2%
1%
3%
7%
(4%)
8%
7%
4%
Year
6%
(11%)
0%
9%
10%

Contact’s Generation business performance
Generation mix and cost of energy (FY17 and 18)
Operating reportContact Energy Limited
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Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
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 18
$/MWh
GWh
GeothermalHydroThermalCost of Energy

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
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 18
$/MWh
GWh
Commercial & industrial electricity salesMass market electricity sales
Retail gas salesNetback

Contact’s operational performance
8
Operating reportContact Energy Limited
Measure
The month ended The month ended The month ended
Twelve months
ended
Twelve months
ended
June 18June 17May 18June 18June 17
CustomerMass market electricity salesGWh385 382 325 3,648 3,702
Commercial & industrial electricity salesGWh257 281 285 3,349 3,564
Retail gas salesGWh100 70 75 806 685
Total electricity and gas salesGWh742 734 685 7,803 7,950
Average electricity sales price$/MWh203.18 201.57 193.58 189.78 186.85
Electricity direct pass thru costs$/MWh(87.03)(83.89)(83.46)(83.85)(81.21)
Electricity and gas cost to serve$/MWh(11.70)(13.77)(11.52)(12.40)(13.74)
Netback$/MWh93.51 97.46 91.02 86.91 86.64
Actual electricity line losses%5%5%8%6%5%
Retail gas salesPJ0.4 0.3 0.3 2.82.4
LPG sales tonnes7,868 7,622 6,783 72,845 72,700
Electricity customer numbers #416,500 423,000 417,500
Gas customer numbers #65,000 64,000 65,000
LPG customer numbers (includes
franchises)
#88,500 80,000 87,500
GenerationThermal generationGWh188 332 147 1,812 1,742
Geothermal generationGWh263 282 283 3,323 3,233
Hydro generationGWh316 163 380 3,479 3,562
Spot market generationGWh767 777 810 8,614 8,537
Spot electricity purchasesGWh676 699 663 7,416 7,683
CfD salesGWh6 44 88 599 714
Steam salesGWh20 10 39 584 602
Commercial & industrial electricity salesGWh1 1 4 90 92
GWAP $/MWh98.78 110.19 58.12 84.64 53.93
LWAP $/MWh(108.96)(121.33)(63.80)(91.69)(60.01)
LWAP/GWAP%110%110%110%108%111%
Gas used in internal generationPJ1.4 2.8 1.3 17.517.1
Gas storage net movementPJ(0.4)(0.6)0.4 (0.27)(3.04)
Unit generation cost $/MWh(34.40)(43.46)(28.68)(33.12)(32.85)
Cost of Energy $/MWh(29.34)(47.39)(21.93)(28.00)(27.61)

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
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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