Meridian Energy Limited 2018 Full Year Financial Results

Full Year Results21 August 2018MELUtilities

View on NZX PDF 1 PDF 2 PDF 3 PDF 4 PDF 5 PDF 6 PDF 7

PG 1

Meridian delivers growth and becomes net zero carbon
22 August 2018
Meridian Energy has achieved its highest level of earnings, while overcoming the company’s lowest New Zealand
generation since 2013.
Group EBITDAF has increased 1.4% to $666 million, thanks to better hydro inflows in the second half of the year,
which helped to turn around a half year EBITDAF decline of 7%.
Meridian’s Chief Executive Neal Barclay says, “Our strong full year result is a testament to the great team and the
diversified business that Meridian is. We are very pleased with what we have achieved during the last financial
year.”
Strong cashflows have allowed Meridian to declare a 1.5% higher dividend for the year, which includes a
continuation of shareholder returns under the company’s exiting capital management programme.

“Meridian is also introducing a new capital management plan of $250 million over two years. This will commence in
August 2020 at the completion of the current programme and cease in February 2022”, says Neal.
Meridian continues to support a more sustainable future.
The electricity sector will play a key role in enabling the Government to achieve its goal of zero carbon by 2050.
We’re looking forward to helping tackle New Zealand’s carbon emissions and combat climate change with the
support of renewable energy. The future is undoubtedly strong for our sector”, says Neal.
“To create momentum for our team, from 1 July the Meridian Group is now net zero carbon across our
operations
1
. This year you will continue to see us further reduce our impact and our customers’ impact on the
planet. We plan to deliver some new initiatives that will support our goals and our country’s goals to tackle climate
change”, says Neal.
“This year Meridian also expanded its Australian renewable generation portfolio to support the continued growth of
its Australian retail brand, Powershop. Powershop was once again named as Australia’s greenest power
company.”
In New Zealand, Meridian continues to support customers who are wanting to take advantage of renewable

1
For Scope 1 and 2 emissions.

PG 2
energy through a market-leading electric car plan, which provides customers who have EVs, very cheap overnight
rates. And they are supporting corporate customers who want to reduce their emissions through solar installations.
ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Polly Atkins
Senior External Communications Specialist
021 1741715

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THE
RUN
LONG
MERIDIAN ENERGY LIMITED
INTEGRATED REPORT : 2018

SUSTAINABILITY DEFINES
WHO WE ARE. OUR ENDURING
COMMITMENT TO SUSTAINABILITY
LEADERSHIP IS FOCUSED ON
AREAS WHERE WE BELIEVE
WE CAN MAKE A MEANINGFUL
DIFFERENCE. IT UNDERPINS OUR
PURPOSE TO DELIVER CLEAN
ENERGY FOR A FAIRER AND
HEALTHIER WORLD.

Sustainability isn’t a philosophy that
sits alongside our business strategy; it’s
hard-wired into what we do and it drives
our overall performance and success.

This integrated report is a review of our financial, economic, social
and environmental performance for the financial year ending
30 June 2018 (FY18).
For FY18 the Meridian Group included the parent company Meridian
Energy Limited and all its operational subsidiaries (note the Group
structure in the financial statements). Flux Federation (the software
division of Powershop New Zealand) was created in 2017 and began
trading on 1 July 2017.
Throughout the report, non-financial data and commentary pertains
to the Meridian Group as much as possible. References to ‘Meridian’
(the parent company), ‘Powershop New Zealand’, ‘Powershop Australia’
and ‘Flux’ are specific to when only parts of the Group are being
discussed (‘Powershop Australia’ refers to our retailing operations
in Australia; the generation activities in Australia are included in the
Generation section). In both the commentary and data, Dam Safety
Intelligence is included in the parent company and Flux-UK Limited
employees are included in ‘Flux’, unless specifically mentioned.
We’ve taken great care to ensure that all data in this report is as
accurate as possible, and our policy is to seek assurance of both our
financial and non-financial information.
The financial information in this report has been prepared in accordance
with appropriate standards, details of which can be found on page
87, and has been audited by Deloitte Limited on behalf of the Auditor-
General (see the Independent Auditor’s Report on page 115).
The non-financial information in this report has been prepared in
accordance with the Core requirements of the Global Reporting
Initiative’s Sustainability Reporting Standards (the ‘GRI Standards’)
and has been audited by Deloitte Limited (see the Independent
Accountant’s Assurance Report on page 118).
Our Meridian Group Greenhouse Gas Inventory Report (available at
https://www.meridianenergy.co.nz/assets/About-us/Sustainability/
Meridian-Group-Greenhouse-Gas-Emissions-Inventory-Report-FY18.
pdf ) has been audited by Deloitte and a summary provided in this
report (see pages 26 and 27).
IN THIS REPORT
02 About this report
04 Directors’ statement
06 About Meridian
08 Chair and Chief Executive view
18 Focusing on what’s important
22 Sustainability leadership
30 Putting customers first
36 Responsible generation
44 Great place to work
52 Our Board
54 Our Executive Team
56 Remuneration report
63 Group performance summary
71 Further disclosures
80 Our financial statements
115 Financial audit report
118 GRI Standards assurance report
120 GRI Standards Content Index
125 Directory
00:02
ABOUT THIS REPORT

REPORT
OUR
INTEGRATED
The purpose of this integrated report is to
provide you with a wider context for our
overall performance. We detail how we are
creating financial and non-financial value
in the short, medium and long terms.
00:03
Meridian Integrated Report 2018

WELCOME TO THIS REPORT. As a business with a
significant retail shareholder base, we regularly look for
ways to be as accessible and open as possible. We engage
with investors and the Crown through reports like this, our
disclosures to the markets, and meetings and briefings
with a range of groups.
We hope you’re able to attend the 2018 annual shareholder
meeting in person. The Board has a policy of rotating
the location of the annual shareholder meeting between
Auckland, Wellington and Christchurch, and our 2018
meeting will be held in Auckland. We’ll provide you
with more information closer to the time in the Notice
of Meeting. If you can’t attend, you’ll find a link to a live
webcast on the Meridian website.
In the meantime, we invite you to read this integrated
report, which has been prepared using the International
Integrated Reporting Council’s Integrated Reporting
Framework. It reflects the Board’s view that the way in
which Meridian takes care of its customers, people, local
communities, iwi and the environment supports our ability
to continue delivering shareholder returns. The Board has
established processes to ensure the quality and integrity
of this integrated report, and has entrusted Management
with preparing and presenting it accordingly.
OUR BOARD STRUCTURE. Meridian recruits
Board members with a range of skills and experience.
Biographies of our Directors and the Executive Team
are available on our website at meridianenergy.co.nz.
All Directors are independent directors.
While the Company’s Constitution does not require it,
this Board has a collective view that Ngāi Tahu, who have
mana whenua (authority over the land) over the majority
of the South Island where Meridian’s assets are, is such an
important stakeholder that a position on the Board should
always be considered. This role is currently undertaken
by Anake Goodall, the former Chief Executive Officer of
Te Rūnanga o Ngāi Tahu (Ngāi Tahu's governing body).
During the year we also extended Megan Matthews’
appointment as our Future Director until October 2018.
The Future Directors initiative, developed by the Institute of
Directors in New Zealand, supports the development of the
next generation of directors by giving candidates exposure
to public company boards for an agreed period.
OUR COMMITMENT TO EFFECTIVE GOVERNANCE.
Boards have an important role in directing companies’
activities. Strategy days and regular meetings allow the
Board to share their thoughts, and challenge Management,
on the direction they wish to take the business and how
they’re managing the various long-term drivers of value
(such as retaining access to water, building employee
engagement, investing in new assets, enhancing
environmental performance, satisfying customers,
and building the Company’s reputation and brand).
Meridian complies with all the recommendations of the
NZX Corporate Governance Code and has also adopted
the corporate governance principles of the New Zealand
Financial Markets Authority and the Australian Securities
Exchange (ASX). You can read about how we have fulfilled
those recommendations and applied those principles in our
FY18 Corporate Governance Statement, available at https://
www.meridianenergy.co.nz/assets/Investors/Governance/
Meridian-Energy-Corporate-Governance-Statement.pdf.
CHANGES IN OUR LEADERSHIP TEAM. Neal Barclay
was appointed Chief Executive last year and the Board
looks forward to drawing on his rich experience in all parts
of the business. We welcome Julian Smith to Meridian as
our Chief Customer Officer, responsible for both Meridian’s
and Powershop New Zealand’s customer sales, service
and operations. Mike Roan, who was Wholesale Markets
Manager, is now General Manager, Wholesale and will
continue to oversee our risk analysis, modelling and
decision-making across all our wholesale market activities
in New Zealand. He also manages the relationship with
New Zealand’s Aluminium smelter (NZAS) and supports
our activities in Australia. Guy Waipara has moved from
General Manager of Markets and Production to General
Manager of Generation and Natural Resources, responsible
for our generation asset management in New Zealand
and Australia. Towards year end, Sandra Pickering left
the Company for personal reasons. The Board, along with
Neal, wish to thank Sandra for her significant contributions
as General Manager, Information and Communication
Technology and to wish her the very best for the future.
COMMITTED TO
EFFECTIVE GOVERNANCE
00:04
DIRECTORS’ STATEMENT

ASSESSING OUR CLIMATE CHANGE RISKS.
The Board also sets Meridian’s overall appetite for risk and
its approach to risk management. A summary of Meridian’s
key risks can be found in the FY18 Corporate Governance
Statement available at https://www.meridianenergy.co.nz/
assets/Investors/Governance/Meridian-Energy-Corporate-
Governance-Statement.pdf.
Included among the various risks and risk scenarios that
the Board reviews are climate-change-related risks. This
year, using the newly published guidelines prepared by
the Task Force on Climate-Related Financial Disclosures
(TCFD), Management have identified the specific climate
change risks from our existing set of risks. Given Meridian’s
focus on climate action, taking the time to consolidate our
view of these risks is appropriate.
Of the 20 specific climate change risks identified, 12 are
considered well managed, six require ongoing monitoring,
two are considered priorities and there are no urgent risks.
The risks identified for ongoing monitoring are:
• changes in inflows
• population changes
• unsuccessful investments in new technologies
• cost of transition to lower emissions technology
• change in regulation
• legal precedent.
The two risks identified as priorities are:
• industry disruption – the concern that New Zealand’s
two biggest industries, agriculture and international
tourism, could be curtailed because of their higher
than average greenhouse gas emissions
• flooding – climate change modelling indicates that
there will be an increase in rainfall on the West Coast
of New Zealand. In the extreme, a flood event could,
theoretically cause significant damage to Meridian’s
generation assets and third-party damage to
infrastructure, property (town), farmland and
the environment.
We have mitigation plans in place for all these risks.
THE ROLE OF COMMITTEES. Committees support the
Board by providing detail on specific issues and having
subject matter experts provide insights and advice.
The following Committees, and the Board as a whole,
cover the spectrum of resources on which we depend
for our business success, and feed into the Company’s
overall strategy and direction. They also keep the Board
well informed of day-to-day operations.
The Board and Committees also oversee progress on
our Sustainable Development Goals (SDGs). The Safety
and Sustainability Committee has responsibility for our
progress on SDG7 (Affordable and Clean Energy) and
RESOURCESBOARD OVERSIGHT
Financial and manufactured
capital (our cash and assets)
Audit & Risk Committee
TechnologyFull Board
Human capital
• Our people and expertiseRemuneration & Human
Resources Committee
• Health and safetySafety & Sustainability Committee
Relationships and reputation
• Our peopleRemuneration & Human
Resources Committee
• All other groupsSafety & Sustainability Committee
and full Board
Natural resourcesSafety & Sustainability Committee
Significant risks
around resources
Audit & Risk Committee
SDG13 (Climate Action). The Board as a whole oversees
our progress as a responsible generator, particularly
as it pertains to the Waitaki reconsenting process. Our
Remuneration and Human Resources Committee oversees
Meridian’s maintenance and development of being a great
place to work. Our Audit and Risk Committee assists the
Board in fulfilling its responsibilities in matters related to
risk management, financial accounting and reporting.
THE ROLE OF PEOPLE AND CULTURE. No strategic
goals, policies or processes would be achievable if
it weren’t for Meridian’s people, who are our most
important resource. They work hard to create value for
shareholders, so it’s essential that they are aligned with the
Company’s strategy and are well supported and rewarded
appropriately for their efforts. The Board has approved a
wide range of policies that Management are required to
adhere to and incorporate in the Company’s operations,
including a Code of Conduct, the content of which all
employees agree to honour. The Code provides guidance
to staff on the behaviours that are expected and how
to handle the issues and challenges they may face.
Our approach to remunerating our people is on page 56.
IF YOU WOULD LIKE FURTHER INFORMATION.
We look forward to seeing you at the Annual Shareholder
Meeting. In the meantime, if you are a shareholder,
please feel free to ask questions, request information
or comment on this report via Meridian’s website or by
directly contacting the Investor Relations Manager at
investors@meridianenergy.co.nz.
CHRIS MOLLER PETER WILSON
Chair Deputy Chair
00:05
Meridian Integrated Report 2018

LOCAL GOVERNMENT
NGĀI TAHU
AND OTHER IWI
ASSET COMMUNITIES
GENERATORS
SUPPLIERS/CONTRACTORS
INDUSTRIAL USERS
TRANSMISSION
EMPLOYEES
SUBSTATIONS
GOVERNMENT/
REGULATORS
ELECTRICITY
MARKET
RETAILERSPOWERSHOPMERIDIAN
INVESTORS/
SHAREHOLDERS
BUSINESSES
HOUSEHOLDS
DISTRIBUTION
ABOUT MERIDIAN. The Meridian Energy Group is one of
New Zealand’s largest organisations, with $2,762 million
in revenue in FY18, EBITDAF
1
this year of $666 million, net
assets of $4,823 million and a total market capitalisation
of $8 billion, making us the fourth-largest company on the
New Zealand Stock Exchange (NZX).
Meridian is listed on both the NZX and the ASX. We are
majority owned by the New Zealand Government and
precluded by legislation from having any other significant
(more than 10%) shareholders. Our core business activities
are the generation, trading and retailing of electricity,
the sale of complementary products and services,
and the development of electricity retailing software,
in New Zealand and Australia.
More than 1,000 people are directly employed by or
contracted to us, and third parties provide us with ICT,
facilities management and meter-reading services.
CAPACITY (MW
4
)
1,500
1,000
500
2,000
2,500
3,000
3,500
0
Hydro NZ
Hydro AU
Wind NZ
Wind AU
FY14
2,955
FY15
2,955
FY16
2,955
FY17
2,955
FY18
3,047
201
92
416
2,338
Hydro AU
GENERATION (GWh
3
)
600
300
900
12,000
15,000
0
Hydro NZ
Wind NZ
FY15
13,851
FY16
14,226
FY17
13,825
FY14
13,432
FY18
13,109
553
28
1,263
11,265
Wind AU
GENERATION
2
1 Earnings before interest, tax, depreciation, amortisation and changes
in fair value of hedges and other significant items.
2 Map of Meridian assets: meridianenergy.co.nz/asset-map.
MERIDIAN ENERGY
AUSTRALIA
NATIONAL ENERGY
MARKET GENERATION
<1%
WIND FARMS
2
HYDRO POWER
STATIONS
3
0
NONE OF OUR PEOPLE,
OUR CONTRACTORS OR
MEMBERS OF THE PUBLIC
WERE SERIOUSLY INJURED
AT ANY OF OUR SITES
WE STRENGTHENED
OUR RELATIONSHIP
WITH NZAS BY
SUPPORTING
AN ADDITIONAL
50MW BASE-LOAD
ENERGY SOLUTION
THAT HAS ENABLED
IT TO INCREASE
PRODUCTION AT
THE SMELTER
This year we
completed one of our
biggest ever schedules
of hydro asset
maintenance work
Increase in EBITDAF as improved inflows
into our hydro catchments helped support
stronger second half performance
1.4%
OUR DIVERSIFICATION STRATEGY TO
DEVELOP A VERTICALLY INTEGRATED
RETAILER AND GENERATOR IN
AUSTRALIA IS STARTING TO SHOW
GOOD RESULTS, AND OUR AUSTRALIAN
BUSINESS CONTRIBUTED A SIGNIFICANT
PORTION OF THE OVERALL GROWTH IN
GROUP EBITDAF FOR THE YEAR
NET ZERO CARBON
across our Group
Scope 1 and 2 emissions
Strong cash flows have
allowed us to declare
a 1.5% increase in
dividend and maintain
the capital management
plan the Board put in
place in 2015
19. 20
cents per
share
We genuinely consider ourselves
caretakers of some of NZ’s most iconic
infrastructure assets, so our ongoing
maintenance programme, which looks
forward 20 years, is something on
which we will always put a huge
amount of focus
5%
INCREASED
CUSTOMER
CONNECTIONS
BY 14,000 IN NZ.
IT IS ALSO
PLEASING TO SEE
THE CUSTOMER
CHURN RATE
REDUCING
OUR POWERSHOP AND
MERIDIAN BRANDS TOGETHER
HAD THE STRONGEST GROWTH
IN CUSTOMER CONNECTIONS IN
THE NZ ELECTRICITY SECTOR
We really amped up our efforts around
wellness, diversity and inclusion
NZ’S GENERATION
MERIDIAN ENERGY
NEW ZEALAND
WIND FARMS
5
5
HYDRO POWER
STATIONS
7
29%
0
NONE OF OUR PEOPLE,
OUR CONTRACTORS OR
MEMBERS OF THE PUBLIC
WERE SERIOUSLY INJURED
AT ANY OF OUR SITES
WE STRENGTHENED
OUR RELATIONSHIP
WITH NZAS BY
SUPPORTING
AN ADDITIONAL
50MW BASE-LOAD
ENERGY SOLUTION
THAT HAS ENABLED
IT TO INCREASE
PRODUCTION AT
THE SMELTER
This year we
completed one of our
biggest ever schedules
of hydro asset
maintenance work
Increase in EBITDAF as improved inflows
into our hydro catchments helped support
stronger second half performance
1.4%
OUR DIVERSIFICATION STRATEGY TO
DEVELOP A VERTICALLY INTEGRATED
RETAILER AND GENERATOR IN
AUSTRALIA IS STARTING TO SHOW
GOOD RESULTS, AND OUR AUSTRALIAN
BUSINESS CONTRIBUTED A SIGNIFICANT
PORTION OF THE OVERALL GROWTH IN
GROUP EBITDAF FOR THE YEAR
NET ZERO CARBON
across our Group
Scope 1 and 2 emissions
Strong cash flows have
allowed us to declare
a 1.5% increase in
dividend and maintain
the capital management
plan the Board put in
place in 2015
19. 20
cents per
share
We genuinely consider ourselves
caretakers of some of NZ’s most iconic
infrastructure assets, so our ongoing
maintenance programme, which looks
forward 20 years, is something on
which we will always put a huge
amount of focus
5%
INCREASED
CUSTOMER
CONNECTIONS
BY 14,000 IN NZ.
IT IS ALSO
PLEASING TO SEE
THE CUSTOMER
CHURN RATE
REDUCING
OUR POWERSHOP AND
MERIDIAN BRANDS TOGETHER
HAD THE STRONGEST GROWTH
IN CUSTOMER CONNECTIONS IN
THE NZ ELECTRICITY SECTOR
We really amped up our efforts around
wellness, diversity and inclusion
3 Gigawatt hours: measure of generating output (energy).
4 Megawatts: measure of generating capacity (power).
5 Excludes the Brooklyn wind turbine.
00:06
ABOUT MERIDIAN

LOCAL GOVERNMENT
NGĀI TAHU
AND OTHER IWI
ASSET COMMUNITIES
GENERATORS
SUPPLIERS/CONTRACTORS
INDUSTRIAL USERS
TRANSMISSION
EMPLOYEES
SUBSTATIONS
GOVERNMENT/
REGULATORS
ELECTRICITY
MARKET
RETAILERSPOWERSHOPMERIDIAN
INVESTORS/
SHAREHOLDERS
BUSINESSES
HOUSEHOLDS
DISTRIBUTION
0
NONE OF OUR PEOPLE,
OUR CONTRACTORS OR
MEMBERS OF THE PUBLIC
WERE SERIOUSLY INJURED
AT ANY OF OUR SITES
WE STRENGTHENED
OUR RELATIONSHIP
WITH NZAS BY
SUPPORTING
AN ADDITIONAL
50MW BASE-LOAD
ENERGY SOLUTION
THAT HAS ENABLED
IT TO INCREASE
PRODUCTION AT
THE SMELTER
This year we
completed one of our
biggest ever schedules
of hydro asset
maintenance work
Increase in EBITDAF as improved inflows
into our hydro catchments helped support
stronger second half performance
1.4%
OUR DIVERSIFICATION STRATEGY TO
DEVELOP A VERTICALLY INTEGRATED
RETAILER AND GENERATOR IN
AUSTRALIA IS STARTING TO SHOW
GOOD RESULTS, AND OUR AUSTRALIAN
BUSINESS CONTRIBUTED A SIGNIFICANT
PORTION OF THE OVERALL GROWTH IN
GROUP EBITDAF FOR THE YEAR
NET ZERO CARBON
across our Group
Scope 1 and 2 emissions
Strong cash flows have
allowed us to declare
a 1.5% increase in
dividend and maintain
the capital management
plan the Board put in
place in 2015
19. 20
cents per
share
We genuinely consider ourselves
caretakers of some of NZ’s most iconic
infrastructure assets, so our ongoing
maintenance programme, which looks
forward 20 years, is something on
which we will always put a huge
amount of focus
5%
INCREASED
CUSTOMER
CONNECTIONS
BY 14,000 IN NZ.
IT IS ALSO
PLEASING TO SEE
THE CUSTOMER
CHURN RATE
REDUCING
OUR POWERSHOP AND
MERIDIAN BRANDS TOGETHER
HAD THE STRONGEST GROWTH
IN CUSTOMER CONNECTIONS IN
THE NZ ELECTRICITY SECTOR
We really amped up our efforts around
wellness, diversity and inclusion
MERIDIAN
& POWERSHOP
NEW ZEALAND
TIWAI POINT
ALUMINIUM SMELTER
EQUIVALENT TO 40% OF MERIDIAN’S
NEW ZEALAND GENERATION
12% OF NZ’S ELECTRICITY
CONSUMPTION
NATIONAL RETAIL VOLUME
8
OF NZ’S CUSTOMER
CONNECTIONS
19%
14%
OUR SUPPLY CHAIN RISKS.
In the generation part of our
business, our supply chain is made up for the most part of the
parts and components needed to build and maintain our
generation assets. Our supply chain risk is limited to a small
number of components supplied by local and global suppliers.
The rest are supported by a mix of general engineering
consumable and specialist parts suppliers, and service
providers including ICT and facilities’ management providers.
Our energy retailing brands in New Zealand and Australia
have a very short supply chain because the physical
assets used to distribute electricity and meter its use
are managed by national and local lines and metering
companies. Our retail operations’ requirements are
similar to those of many corporate offices and include
the physical facilities and ICT, sales and marketing,
billing and governance functions.
CUSTOMER CONNECTIONS
6
(ICPs
7
)
0
150
100
50
200
250
300
000’s
Meridian res, agri,
small and medium business
Powershop
NZ & AU
Meridian
corporate
FY14
NZAU
13,246
276,708
FY15
48,208
276,446
NZAU
FY16
77,970
274,920
NZAU
FY17
100,524
276,767
NZAU
FY18
NZAU
100,545
290,756
CUSTOMER SALES VOLUME
0
3,000
2,000
1,000
5,000
6,000
7,000
4,000
GWh
26
5,753
167
5,967
345
5,969
493
5,727
549
5,981
Meridian res, agri,
small and medium business
Powershop
NZ & AU
Meridian
corporate
FY14
NZAU
FY15
NZAU
FY16
NZAU
FY17
NZAU
FY18
NZAU
CUSTOMERS
7 Installation control points (ICPs).
8 Excluding Tiwai Point Aluminium Smelter.
0
NONE OF OUR PEOPLE,
OUR CONTRACTORS OR
MEMBERS OF THE PUBLIC
WERE SERIOUSLY INJURED
AT ANY OF OUR SITES
WE STRENGTHENED
OUR RELATIONSHIP
WITH NZAS BY
SUPPORTING
AN ADDITIONAL
50MW BASE-LOAD
ENERGY SOLUTION
THAT HAS ENABLED
IT TO INCREASE
PRODUCTION AT
THE SMELTER
This year we
completed one of our
biggest ever schedules
of hydro asset
maintenance work
Increase in EBITDAF as improved inflows
into our hydro catchments helped support
stronger second half performance
1.4%
OUR DIVERSIFICATION STRATEGY TO
DEVELOP A VERTICALLY INTEGRATED
RETAILER AND GENERATOR IN
AUSTRALIA IS STARTING TO SHOW
GOOD RESULTS, AND OUR AUSTRALIAN
BUSINESS CONTRIBUTED A SIGNIFICANT
PORTION OF THE OVERALL GROWTH IN
GROUP EBITDAF FOR THE YEAR
NET ZERO CARBON
across our Group
Scope 1 and 2 emissions
Strong cash flows have
allowed us to declare
a 1.5% increase in
dividend and maintain
the capital management
plan the Board put in
place in 2015
19. 20
cents per
share
We genuinely consider ourselves
caretakers of some of NZ’s most iconic
infrastructure assets, so our ongoing
maintenance programme, which looks
forward 20 years, is something on
which we will always put a huge
amount of focus
5%
INCREASED
CUSTOMER
CONNECTIONS
BY 14,000 IN NZ.
IT IS ALSO
PLEASING TO SEE
THE CUSTOMER
CHURN RATE
REDUCING
OUR POWERSHOP AND
MERIDIAN BRANDS TOGETHER
HAD THE STRONGEST GROWTH
IN CUSTOMER CONNECTIONS IN
THE NZ ELECTRICITY SECTOR
We really amped up our efforts around
wellness, diversity and inclusion
FLUX-UK
25,000 POWER CUSTOMERS
SERVICED BY FLUX
0
NONE OF OUR PEOPLE,
OUR CONTRACTORS OR
MEMBERS OF THE PUBLIC
WERE SERIOUSLY INJURED
AT ANY OF OUR SITES
WE STRENGTHENED
OUR RELATIONSHIP
WITH NZAS BY
SUPPORTING
AN ADDITIONAL
50MW BASE-LOAD
ENERGY SOLUTION
THAT HAS ENABLED
IT TO INCREASE
PRODUCTION AT
THE SMELTER
This year we
completed one of our
biggest ever schedules
of hydro asset
maintenance work
Increase in EBITDAF as improved inflows
into our hydro catchments helped support
stronger second half performance
1.4%
OUR DIVERSIFICATION STRATEGY TO
DEVELOP A VERTICALLY INTEGRATED
RETAILER AND GENERATOR IN
AUSTRALIA IS STARTING TO SHOW
GOOD RESULTS, AND OUR AUSTRALIAN
BUSINESS CONTRIBUTED A SIGNIFICANT
PORTION OF THE OVERALL GROWTH IN
GROUP EBITDAF FOR THE YEAR
NET ZERO CARBON
across our Group
Scope 1 and 2 emissions
Strong cash flows have
allowed us to declare
a 1.5% increase in
dividend and maintain
the capital management
plan the Board put in
place in 2015
19. 20
cents per
share
We genuinely consider ourselves
caretakers of some of NZ’s most iconic
infrastructure assets, so our ongoing
maintenance programme, which looks
forward 20 years, is something on
which we will always put a huge
amount of focus
5%
INCREASED
CUSTOMER
CONNECTIONS
BY 14,000 IN NZ.
IT IS ALSO
PLEASING TO SEE
THE CUSTOMER
CHURN RATE
REDUCING
OUR POWERSHOP AND
MERIDIAN BRANDS TOGETHER
HAD THE STRONGEST GROWTH
IN CUSTOMER CONNECTIONS IN
THE NZ ELECTRICITY SECTOR
We really amped up our efforts around
wellness, diversity and inclusion
POWERSHOP
AUSTRALIA
NATIONAL ENERGY MARKET
RETAIL VOLUME
<1%
6 Excludes the Tiwai Point Aluminium Smelter; <10 of the above ICPs
are connected to the transmission networks; around 4,000 customer
connections have distributed generation metering.
00:07
Meridian Integrated Report 2018

CONDITIONS VARY
00:08

CONDITIONS VARY
Planning for changeable
trading conditions is essential
if we are to consistently deliver
energy to our customers, and
returns to our shareholders.
Chair and Chief Executive view
00:09
Meridian Integrated Report 2018

Clean energy for a fairer and healthier
world embodies the core values and
the behaviours that lie at the heart
of Meridian’s culture.
CHRIS MOLLER CHAIRNEAL BARCLAY CHIEF EXECUTIVE
00:10
CHAIR AND CHIEF EXECUTIVE VIEW

0
NONE OF OUR PEOPLE,
OUR CONTRACTORS OR
MEMBERS OF THE PUBLIC
WERE SERIOUSLY INJURED
AT ANY OF OUR SITES
WE STRENGTHENED
OUR RELATIONSHIP
WITH NZAS BY
SUPPORTING
AN ADDITIONAL
50MW BASE-LOAD
ENERGY SOLUTION
THAT HAS ENABLED
IT TO INCREASE
PRODUCTION AT
THE SMELTER
This year we
completed one of our
biggest ever schedules
of hydro asset
maintenance work
Increase in EBITDAF as improved inflows
into our hydro catchments helped support
stronger second half performance
1.4%
OUR DIVERSIFICATION STRATEGY TO
DEVELOP A VERTICALLY INTEGRATED
RETAILER AND GENERATOR IN
AUSTRALIA IS STARTING TO SHOW
GOOD RESULTS, AND OUR AUSTRALIAN
BUSINESS CONTRIBUTED A SIGNIFICANT
PORTION OF THE OVERALL GROWTH IN
GROUP EBITDAF FOR THE YEAR
NET ZERO CARBON
across our Group
Scope 1 and 2 emissions
Strong cash flows have
allowed us to declare
a 1.5% increase in
dividend and maintain
the capital management
plan the Board put in
place in 2015
19. 20
cents per
share
We genuinely consider ourselves
caretakers of some of NZ’s most iconic
infrastructure assets, so our ongoing
maintenance programme, which looks
forward 20 years, is something on
which we will always put a huge
amount of focus
5%
INCREASED
CUSTOMER
CONNECTIONS
BY 14,000 IN NZ.
IT IS ALSO
PLEASING TO SEE
THE CUSTOMER
CHURN RATE
REDUCING
OUR POWERSHOP AND
MERIDIAN BRANDS TOGETHER
HAD THE STRONGEST GROWTH
IN CUSTOMER CONNECTIONS IN
THE NZ ELECTRICITY SECTOR
We really amped up our efforts around
wellness, diversity and inclusion
WE ARE EXCEPTIONALLY PROUD OF WHAT THE TEAM
HAVE BEEN ABLE TO ACHIEVE DURING THE PAST FINANCIAL YEAR.
00:11
Meridian Integrated Report 2018

OUR PEOPLE. An engaged and committed workforce
is really the key to being a successful business. Our
engagement survey results tell us that our people
genuinely want to make a difference. Accordingly,
we’ve put a lot of work into agreeing, as a team,
what we stand for, what we value and how we want
to behave. From that work we've landed on one clear
statement of purpose; ‘Clean energy for a fairer and
healthier world’. We believe this statement best reflects
Meridian and what we stand for. It is a powerful statement
that is consistent with the core values that have been the
essence of Meridian’s culture for many years – safety and
wellbeing of our people, caring for our customers and
doing everything sustainably. We have also articulated
the behaviours that bind us and allow us to hold ourselves
to account – Be Gutsy, Be a Good Human and Be in the
Waka. Simply put it is ‘how to be’ in Meridian.
This helps all of us to engage, at an emotional level,
with our aspirations, but we also back up our cultural
descriptors with a tangible delivery of initiatives to
reinforce our culture.
We have a strong and positive culture around safety and
we continue to drive for improvement. This year we’ve
worked on further standardising how tasks are performed
and we’ve continued to pursue a programme of work to
embed process safety into the business as the next level
of maturity in safety leadership.
Of course, the wellbeing of our people goes beyond
managing their physical safety. We have also invested in
a multifaceted wellness programme. This year, with Mike
King, we introduced to our staff and families our Healthy
Minds programme, which helps them to identify the signs
of stress and depression in themselves or in others and the
first steps in how to help manage them.
Meridian also recently became an accredited Rainbow
Tick organisation. This accreditation signals that we are
an inclusive company that welcomes and supports the
Rainbow community.
And we voluntarily extended our parental leave programme
top-up for Meridian and Powershop New Zealand
employees from 12 weeks to 22 weeks as part of our
drive to bring more women into the Company’s senior
leadership ranks.
Our people are highly committed, so much so that we
have 50% of our permanent New Zealand employees as
shareholders of the company through our MyShare scheme.
And our recent employee engagement survey provided us
with another pleasing result, as 78% of employees across
the group identified themselves as highly engaged.
We’re proud to have such engaged employees who are
committed to creating a fairer and healthier world.
CARING FOR OUR CUSTOMERS. There is no silver
bullet when it comes to successfully retailing electricity.
Success comes when you focus on what your customers are
telling you they value and are absolutely single-minded in
delivering that to them in the most efficient or frictionless
way possible. The speed of change and potential disruption
from new technologies and competitive models is no
different in our market from that in many others. Our ability
to innovate and adapt to new customer demands will be
key to our continued success.
Meridian's Taking on Norway electric vehicle (EV)
advertising campaign was a bit quirky and achieved good
brand awareness. The campaign was built around our new
EV pricing plans, which provide super-sharp rates overnight
for our customers. It is early days but we are finding that
most customers on this plan are taking advantage of the
cheap overnight rates and are saving money.
Powershop New Zealand took a number of innovative
new offerings to market. Some examples are: Get Shif t y,
which is a time-of-use offering for residential customers,
Power for Good, which allows customers to contribute to
a selected charity, Powershop Lite which is designed for
those customers who are looking for more traditional set-
and-forget arrangements, and tenure rewards. Powershop
also won the 2018 Consumer NZ People’s Choice Award,
and in Australia Powershop was once again recognised as
Australia’s greenest power company by Greenpeace.
Providing value for our many different customers is
important, and doing this in a way that makes sure that all
customer groups are treated equitably has been a focus for
Meridian. We continue to ensure that those who struggle
to pay their bills from time to time are able to get the most
out of their energy by making sure that they know what
is available to them. Meridian’s customer disconnection
rates are among the lowest in our industry. We’re currently
looking at new ways to help our most vulnerable customers
more as we believe in a New Zealand where everyone can
live in a warm, dry home.
NZAS is Meridian’s largest electricity customer, but when
it approached us in 2017 about the possibility of purchasing
a further 50MW of base-load power we didn’t feel we could
meet all of the new demand ourselves and still support our
other customers, who are just as important to us. So we
worked with the industry to put a compelling offer to NZAS.
The transaction had a number of positive effects: a large
user like NZAS could cause a period of disruption in the
market if it left, and this new deal has demonstrated that
NZAS is thinking expansively about the economic future
of the facility; the spinoff positive effect on the Southland
economy in terms of jobs and investment is significant;
00:12
CHAIR AND CHIEF EXECUTIVE VIEW

OUR PURPOSE
Clean energy for a fairer
and healthier world
BE IN THE WAKA
OUR BEHAVIOURS
BE GUTSY
BE A GOOD HUMAN
OUR VALUES
PUTTING CUSTOMERS FIRST
G R E AT P L AC E
TO WORK
SUSTAINABILITY
LEADERSHIP
OUR KEY
SUSTAINABILITY GOALS
OUR STRATEGY
GROW NZ RETAIL, THROUGH:
• simpler systems
• reduced cost
• faster adaptation
• relentless focus on customer experience
CHAMPIONING BENEFITS OF
COMPETITIVE MARKETS THROUGH:
• competing vigorously
• leadership in sustainability in NZ & AU
• supporting wholesale liquidity
SUPPORT RETAIL GROWTH & PROTECT
OUR GENERATION LEGACY, THROUGH:
• demonstrating the contribution of hydro to the
100% renewable aspiration
• maintaining a best-in-class generation portfolio
(safety, efficiency & cost)
• best-placed renewable energy pipeline
GROW OVERSEAS
EARNINGS, THROUGH:
• expansion of challenger brand
• strengthening our VI position
• Flux client success
Meridian Integrated Report 2018
00:13

“Meridian’s position as a leader in sustainability has
allowed us to attract and retain customers who have
similar values and are deeply concerned about the
environment. This year Meridian has again been
named as one of New Zealand’s most sustainable
brands in the Colmar Brunton Better Futures report.”
9 MT = Million tonnes
and aluminium produced by NZAS is some of the greenest
aluminium produced in the world, because its electricity
supply is mostly renewable and electricity makes up
roughly 37% of the cost to produce aluminium. Logically
this additional production will displace production
elsewhere in the world (most likely China) produced on
the back of coal-fired electricity. All up, the NZAS deal was
complex as it involved multiple parties and we are very
pleased with the outcome.
At the beginning of the financial year we structurally
separated the software development arm of Powershop to
create a new organisation named Flux Federation. We did
this so that Powershop could focus solely on delivering an
outstanding and differentiated customer proposition to our
customers in New Zealand, and to allow Flux room to grow
and focus on delivering value to its portfolio of customers
in New Zealand, Australia and the UK.
Flux has now been operating as a separate Meridian entity
for more than 12 months and has demonstrated success
in scaling its development capability to deliver significant
new functionality for Meridian’s Powershop businesses in
New Zealand and Australia and to Npower in the UK (which
retails the Powershop brand under licence to Meridian).
Meridian and Flux have commenced a project to transition
Meridian customers to the Flux platform. Flux will enable
Meridian to improve its customer experience significantly,
allowing us to respond to customers’ needs and deliver
products to market faster than our competition. And
Meridian customers provide Flux with scale to drive growth
and expansion opportunities.
Accordingly the journey for Flux is far from limited to
our existing businesses. We are presently focused on
supplementing the existing technical capability with
account management and business development
capabilities to drive an international sales and business
growth strategy.
LEADERSHIP IN SUSTAINABILITY. At Meridian we’ve
long held the view that companies that understand and
manage their key risks across environmental and social
issues, and can articulate the social purposes they fulfil,
are more successful in the long term than companies that
solely pursue financial growth at all costs. Our business
plays an essential role within New Zealand society and we
recognise that by creating value for others in sustainable
ways, we create value for our organisation.
This year we’ve focused on areas where we believe we can
shift the dial in terms of sustainability, and are channelling
much of our effort in line with SDG13, Climate Action and
SDG7, Affordable and Clean Energy.
TAKING ACTION ON CLIMATE CHANGE. Most of the
electricity produced in New Zealand already comes from
renewable sources, and there are many more renewable
options available to be built. So Meridian and the electricity
sector are very well placed to support reductions in our
country’s carbon emissions and the Government’s target
for New Zealand to be net zero carbon by 2050. More than
70% of energy consumed in New Zealand comes from
burning fossil fuels, most of which are imported. The bulk
of this energy is consumed in the transport and industrial
heat sectors. A relatively small portion (<10%) is used
to generate electricity. If the transport and industrial
process heat sectors converted to electricity New Zealand
could potentially reduce total (non-agricultural) carbon
emissions by up to 28MT
9
of carbon dioxide equivalent
(CO
2
e) or 36%. We believe this is a prize absolutely
worth chasing.
New Zealand’s hydro generation assets, which make up a
large portion of total electricity generation (typically 55%
in any year), provide a great deal of flexibility, which means
the electricity system as a whole can integrate a lot more
intermittent generation like wind and solar efficiently.
Also, the cost of rooftop solar and grid-scale wind
generation continues to fall, so we see new renewable
generation being the most obvious and economic outcome
to meet potential demand growth in New Zealand. Meridian
has been committed to a renewable generation future for
00:14
CHAIR AND CHIEF EXECUTIVE VIEW

the past 15 years and we continue to focus on developing
new cost-effective and well positioned renewable
generation options.
Our commitment to renewable energy isn’t limited to
New Zealand. This year we have purchased the Hume,
Burrinjuck and Keepit hydro power stations in Australia,
and we have entered a number of Power Purchase
Agreements with renewable developers, that will allow
their developments to be built. We have aspirations to
grow our customer base in Australia significantly and
believe that growth will be underpinned by new renewable
generation. We see this growth as a differentiator from the
other New Zealand electricity companies, and it gives us an
opportunity to leverage our renewable energy expertise to
help Australia reduce its reliance on fossil fuels.
We have also turned our attention inwards. Even though
we don't burn any fuel to generate electricity, we still have
a small carbon footprint from operating our business.
From now, we are net zero carbon across our Group
for Scope 1 and 2 emissions, through purchasing and
cancelling carbon credits (NZUs from forestry). We’re
currently reviewing all the data that we have for our value
chain and suppliers, looking for more ambitious ways
to reduce our emissions. Realistically, we know that we
cannot eliminate all use of carbon from our operations
which is why we have committed to native forest planting
this year where possible on our land. By 2025, we plan
to be offsetting emissions from across the full value chain
of our operations (including Scope 3 emissions) using
carbon credits we have grown ourselves.
Part of being a leader in sustainability means providing
advice and expertise to others to enable them to also
reduce their impacts and help to combat climate change.
We’re supporting a number of New Zealand businesses to
achieve their long-term plans to convert their coal-fired
boilers to electricity, and we believe the electricity industry
can play an important role in converting other industrial
users of fossil fuel technologies to renewables.
We believe New Zealand must lead the way in converting
our light transport fleet to electric. Our Taking on Norway
EV marketing campaign was developed to capture
attention and get people thinking about EVs, but at the
same time, why shouldn’t New Zealand aspire to lead
the world in EV conversion? With New Zealand’s mostly
renewable electricity system, it just makes so much sense
environmentally and would create a source of competitive
advantage for our country. We are putting our money
where our mouth is and we successfully achieved our
target of converting 50% of our passenger fleet to full
electric. We have now set ourselves a more ambitious
Meridian Integrated Report 2018
00:15

target of converting 90% of our passenger fleet to
electric in 2020. The business case to go electric works
for Meridian and we suspect for many other businesses.
So we have been actively working with Drive Electric
and other partners to provide support for New Zealand
businesses that are wanting to convert their car fleets to
electric. As businesses change their procurement practices
to buy electric, New Zealand will start to build a second-
hand EV fleet that will make EVs more accessible for
everyday Kiwis.
Certainly, our customers expect Meridian to take a stand
and to lead by example when it comes to climate change
action. Meridian’s position as a leader in sustainability
has allowed us to attract and retain customers who have
similar values to ours and are deeply concerned about the
environment. This year Meridian has again been named one
of New Zealand’s most sustainable brands in the Colmar
Brunton Better Futures report. Meridian has been ranked
as one of the top five most sustainable brands by Colmar
Brunton for the past four years.
Underpinning all of this is our role as a responsible
generator. We continue to act responsibly through
the management of our assets, our relationships with
local communities and regulators, and enhancing the
environments in which we operate. We strive to make sure
that the people, groups and communities working and
living near our wind and hydro assets feel included and
consulted, and trust our record as a respectful steward
of the environments of which we are a part.
HYDROLO GY. Our New Zealand generation business
is founded on our seven hydro stations in the Waiau and
Waitaki catchments, so hydrology (how much it rains)
in those catchments can have an impact on our year-
to-year earnings. Dry conditions, like the ones we have
experienced at times during this financial year, can create
a commercial risk that the amount of electricity we can
sell into the wholesale market is significantly less than
the amount of electricity we need to buy from that market
to meet customers’ needs. In fact, the wholesale market
in New Zealand is one of the most volatile commodity
markets in the world due to the country’s large amount
of hydro generation and relatively low storage capacity.
This can create high wholesale market prices during times
when lake levels are low. Conversely, when the lakes are
full, wholesale market prices can fall to low levels due to
the surplus of water and hydro capacity.
We use our vertically integrated business model to
manage this commercial risk and achieve as much price
certainty as we can for our customers and reliable returns
for our investors. In addition, we have agreements with
stakeholders that provide us with flexibility in how we
use lake water storage, and we transact a range of
financial instruments with counterparties as forms of
‘dry-year insurance’, where we insure ourselves against
high wholesale market prices that can occur when dry
conditions emerge. Our single largest financial instrument
is a hedge contract (known as a swaption) with Genesis
Energy. We did rely on the swaption a number of times
during July and August 2017 and again in December,
January and February 2018 as dry conditions meant
we had to conserve storage during those months.
Drought and floods are part of our business and we
continue to learn and adapt our risk management practices
to get better at managing difficult trading conditions.
We think this is apparent in the relatively stable and strong
cash flows that the business has produced for a number
of years irrespective of the weather.
THE FINANCIAL RESULTS. The two periods of dry
conditions during the first half of the financial year meant
year-on-year earnings were down for that period. Improved
inflows into our hydro catchments supported a stronger
second-half performance and all up New Zealand energy
margin for the year was 0.4% higher than in the previous
financial year.
Our operations in Australia also delivered good growth
and demonstrated the value of our strategy to diversify
the Meridian business geographically by leveraging our
core capabilities in asset management, energy markets
risk management and energy retailing in that country.
Australian energy margin growth of $12 million was a
significant driver of the overall Group EBITDAF growth.
EBITDAF was 1.4% higher than in the previous financial year.
Resilient cash flows enabled dividend growth, with the
company declaring a final dividend 3% higher than last
year’s. Total dividends paid during the 2018 financial
year were 18.96 cents per share, 2% higher than in FY17.
Combined with the 7% increase in share price during FY18,
this amounted to a total shareholder return (TSR) of 14%
in the year to 30 June 2018.
Meridian has also declared a final special dividend of
2.44 cents per share ($6.25 million) under the company’s
existing five-year capital management programme to
return $625 million to shareholders. This brings the
capital management special dividend declared in FY18 to
4.88 cents per share, with $437.5 million now distributed
since the capital management programme commenced
in August 2015. While the company’s existing five-year
capital management programme runs through to 2020,
the Board is considering the medium-term outlook and
00:16
CHAIR AND CHIEF EXECUTIVE VIEW

On behalf of the Board and the Executive Team, we would
like to thank our shareholders for continuing to invest
with us, our customers for their relationships and loyalty,
our stakeholders for the interactions we have had with
you throughout the year and of course our people for their
energy and enthusiasm in helping Meridian to deliver
a sustainable future through renewable energy.
future capital requirements of the business. Under current
circumstances the Board considers it appropriate to signal
now its intention to pursue a further two years of capital
management beginning in August 2020, seeking to return
a further $250 million to shareholders.
The Board will continue to consider its intention to extend
the capital management programme in light of possible
future impacts on the financial position of the company
and alternative uses of capital.
NEAR-TERM OUTLOOK. We have finished the year in
good shape from a hydro storage perspective. National
storage was 108% of average at the end of June 2018 and
Meridian’s Waitaki storage was 113% of average. We are
well positioned to see out the remaining winter months
before the spring snow melts start to arrive in the lakes.
In March, the Government released terms of reference for
a review of the price of electricity in New Zealand. Meridian
believes that the New Zealand electricity market is largely
delivering fair, efficient, reliable and sustainable outcomes
for New Zealand consumers. However, we acknowledge
that there are still opportunities for improvement to ensure
that all New Zealanders can afford to heat their homes.
In particular, we believe that distribution pricing reform
should if possible be accelerated to ensure that economic
price signals are in play to support appropriate investment
in new technologies such as rooftop solar and EVs, and
to avoid the risk that those who can least afford it end up
paying more than their share of the cost of the transmission
and distribution networks. Overall, we are supportive of
the review and look forward to the outcome in due course.
But we think that the Government (through the review)
needs to take a considered approach when attempting to
fix wider social and affordability issues to ensure that it
doesn't negatively impact on competition or the investment
needed to maintain security of supply and thereby delay
the transition to a low emissions economy.
This year the Productivity Commission has also released
its draft report on how New Zealand can transition to a low-
emissions economy. The report suggests that New Zealand
climate change policies to date have not been effective in
reducing domestic emissions. For businesses, households,
investors and consumers to manage the risks and embrace
the opportunities to shift to a cleaner future, more work is
required on where best to place efforts.
We agree with the Productivity Commission’s warning that
we need to be wary of changes in the electricity sector
that have the unintended impact of driving price increases
that slow down the electrification of transport and the
transition of the thermal-powered industrial plant in
this country, not to mention the issue of affordability of
electricity to some sectors of our population.
Separately and collectively, these initiatives indicate a
commitment through Government policy and a range
of working groups to increase the pace of change when
it comes to New Zealand’s climate change actions.
We welcome this new tone of commitment from the
Government and the ambitious targets that it looks set
to implement. We look forward to our role in supporting
and enabling other sectors to decarbonise and reduce
their emissions through renewables.
We were disappointed to see the Electricity Authority
further delay the transmission pricing review. Whilst it now
seems likely that the review will be delayed into next year,
we remain supportive of its purpose, logic and goals.
Australia, unlike New Zealand, generates most of its
electricity by burning fossil fuels, and it also does not
have a flexible hydro generation backbone that can
accommodate intermittent renewables easily. So as a
country, Australia faces some difficult policy decisions
when establishing some form of clean energy target.
We are supportive of and engaged in the Federal and State
Governments’ political and regulatory attempts to improve
the electricity market in Australia.
00:17
Meridian Integrated Report 2018

Open, fair and
efficient markets
in New Zealand
and Australia
REGULATORS
STAKEHOLDER
– STAKEHOLDER GROUP
– STAKEHOLDER AREA OF INTEREST
– MATERIAL TOPIC
KEY
CUSTOMERS
SUPPLIERS
EMPLOYEES
INVESTORS + THE CROWN
+ SHAREHOLDERS
NZ PUBLIC + THEIR
ELECTED OFFICIALS
ELECTRICITY SECTOR
LOCAL GOVT
COMMUNITIES
NGAI TAHU
+ OTHER IWI
Easy customer
experience
Fair price for electricity
(inequality)
Security of supply
Climate action for a
net zero carbon future
Respect for the role
of Māori in Aotearoa
and kaitiakitanga
Water quality
(and rights and
interests in water)
Protecting the
environment
Investment in
local prosperity
Assets are safe for
their communities
Long term planning
and environmental
management
Safe working
environment
Growth and
development
opportunities
Fair pay
Diverse and
inclusive culture
Dividends
Commercial
rationale for
use of capital
Sustainability used
as a driver of
long-term value
Good
corporate
citizen
Transparency
and good
communication
Fair and robust
process
ELECTRICITY
PRICING
SUPPORT FOR
VULNERABLE
CUSTOMERS

CONTRIBUTION TO
PUBLIC POLICY
CUSTOMER
SATISFACTION
PIPELINE OF
GENERATION
OPTIONS
OPERATIONAL
CARBON
EMISSIONS
ACTION ON
CLIMATE CHANGE
FINANCIAL
PERFORMANCE
FINANCIAL IMPACTS
OF CLIMATE CHANGE
FINANCIAL IMPACTS
OF HYDROLOGY
GOOD GOVERNANCE,
ETHICAL BEHAVIOUR,
REPORTING
OCCUPATIONAL
HE ALTH
AND SAFETY
EMPLOYEE
ENGAGEMENT
DIVERSITY & EQUAL
OPPORTUNITY
RETAINING
EXPERTISE
PLANT
PERFORMANCE,
PROCESS SAFETY
ENVIRONMENTAL
COMPLIANCE
IMPACT ON
BIODIVERSITY
ACCESS TO WATER
(STRENGTH OF
RELATIONSHIPS
RELATED TO WATER)
IMPACT
ON WATER
CONTRIBUTION
TO LOCAL
COMMUNITIES

The views of our stakeholders strongly
influence what we focus on and what
we report. See the GRI Index on page
120 for details of how we measure
our progress and where in this report
you can find each topic discussed.
00:18
FOCUSING ON WHAT'S IMPORTANT

FOCUSING ON
WHAT’S IMPORTANT
Sustainable value creation requires that
we recognise our reliance on a wide
range of resources (known as ‘capitals’
in the Integrated Reporting Framework),
including our financial reserves, physical
assets, technology platforms, people,
the relationships we have with a variety
of stakeholders, and natural resources
(particularly water).
Having plans in place for the effective
management of our approach to each of
these resources is vital to our success, and
influences how we execute on our strategic
objectives – generating value from our assets,
growing retail value, ensuring an open and fair
market, and growing our overseas operations.
In deciding what to focus on, and how to
prioritise our efforts across the capitals,
we regularly assess global and local trends,
particularly through the lens of the United
Nations’ Sustainable Development Goals
(SDGs), and the views of our stakeholders.
We are strongly of the opinion that by making
a positive difference in the world, and taking
a collaborative approach with our stakeholders,
is how we deliver value.
This approach and process have led us to focus
on two SDGs in particular, SDG7 Affordable
and Clean Energy and SDG13 Climate Action,
as these are where as a renewable energy
generator and retailer of electricity we can
‘shift the dial’ for New Zealand. We also
prioritise being a responsible generator and
creating a great place to work in recognition
that we are dependent on natural resources,
strong relationships with local communities
and iwi, and great people in order to be a
successful business.
In deciding what to report on publicly each
year, our objective is to report openly and
responsibly on how all our interdependencies
relate and collectively contribute to the
positive change we look to make in the world.
We select topics for reporting that reflect
the decisions we’ve made in terms of our
sustainability priorities, and tailor them
according to what has been important to our
stakeholders specifically in the reporting year.
This process also allows us to re-evaluate if
our sustainability priorities require adjusting
to take into account trends or changes
in emphasis.
First we generate a broad list of topics from
the GRI Standards, the SDGs, electricity-
sector-specific issues, topics that have come
up in the media, Meridian’s risk register, Board
discussions, and other sources. We also use
regular interactions with our stakeholders to
canvass them on their priorities.
Using internal workshops, we then evaluate
this list of topics for relevance to our business,
importance in terms of scale and significance
of impact on our stakeholders and the natural
environment, and impacts on our ability to
create value (in other words their impacts on
the resources upon which we rely). Topics are
rated high, medium and low, with the first two
categories prioritised for reporting.
A variety of topics are considered relevant
and are actively managed by the business, but
are not considered significant enough to be
included in our report (for example our office
waste reduction initiatives).
00:21

WORKING
WITH
OTHERS
00:22
SUSTAINABILITY LEADERSHIP

WORKING
By maintaining our pace as a
successful and sustainable business,
we are creating value for others,
which in turn creates value for our
business. A focus on the broader
systems we are part of is key.
OTHERS
00:23
Meridian Integrated Report 2018

Being a 100% renewable energy generator has
put Meridian in a unique position. However,
it’s important that we continue to build on this
legacy, and move from being purely a renewable
energy generator to thinking about how we can
be part of the solution when it comes to the
challenges that we’re facing in New Zealand,
Australia and across the globe.
To help us respond to these challenges we’ve adopted the
United Nations’ Sustainable Development Goals (SDGs).
We’re focusing on two SDGs where we can have the biggest
impact – Climate Action and Affordable and Clean Energy.
We’re privileged in New Zealand to be living in a country
that generates on average 82-83% renewable electricity
from a combination of hydro, wind, solar and geothermal.
This high level of renewable electricity puts us ahead of
most other countries and gives us a genuine renewable
energy advantage.
Many of the key ingredients for a very low carbon
electricity future are already in play: a mature wholesale
market that enables new renewable technologies without
government subsidies; a regulatory framework that
encourages competition; significant retail choice; and
good investment signals that should indicate when the
time is right to introduce new generation. The New Zealand
carbon price set through the Emissions Trading Scheme
(ETS) contributes to the economics of different generation
technologies, which sees geothermal and wind generation
as the cheapest and best options for building additional
capacity to help meet New Zealand’s eventual increase in
demand. These options will also enable the replacement
of older fossil-fuel power stations as they retire. Should
NZAS leave this would likely result in the fossil-fuel power
stations closing sooner.
Already we have seen new technology costs decrease,
particularly wind technology, more renewable generation
has been built and ageing thermal generation has been
retired. Our renewables participation has climbed from
65% to almost 85% and there’s no reason why we cannot
continue to work through to 90-95% participation in the
next decade without too much upheaval.
As we reported last year, due to flat demand growth we’ve
chosen to not build any new power stations in recent
years, focusing instead on maximising the efficiency of
our existing hydro and wind assets and maintaining them
for the long-term. However, we continue to maintain our
portfolio of generation options across New Zealand and
we currently have Hurunui Wind in North Canterbury,
Central Wind located between Waiōuru and Taihape,
RENEWABLE
ELECTRICITY IN NZ
82%
HYDRO, WIND, SOLAR
AND GEOTHERMAL
“Many of the ingredients for a zero carbon
future are already in play.”
150MW
DRY PERIOD INSURANCE
3,000-5,000GWh
CURRENT ENERGY SHORTFALL
NET ZERO CARBON AC R O S S O U R
OPERATIONS FROM 1 JULY 2018
(FOR SCOPE 1 AND 2 EMISSIONS)
SUSTAINABILITY LEADERSHIP
00:24

and Maungaharuru in Hawke’s Bay consented to build.
We’re confident that we can increase our portfolio in
New Zealand to meet demand when it increases, sometime
after 2020. We are confident that even if we transitioned
all New Zealand’s passenger fleet to EVs there is enough
renewable electricity to meet this demand. We currently
expect demand to increase modestly by between 0.5% and
1% on average per annum.
Moving beyond 95% renewable electricity will be more
challenging. Hydro does a great job of handling variations
in demand in the short term, but it is more problematic
during extended dry periods when there is no rainfall to
refill the lakes. This can result in an energy deficit of 3,000-
5,000GWh in some years. Currently most of that is handled
through using coal and gas energy.
The benefit of this stored thermal generation capacity
is that it can be turned on and consumed at short notice;
however, coal is the most carbon-intensive method
of generating electricity, and directly contributes to
climate change.
To allow coal to be removed from the electricity system
there will need to be other forms of generation and other
forms of ‘deep’ fuel storage developed. Certainly over the
next 10-20 years we expect gas will still have a strong part
to play as a key form of dry-year insurance.
We currently have a 150MW contract with Genesis Energy
for dry-period insurance (swaption) that continues
until 2023. We are evaluating our options for covering
our commercial risk from dry periods forward of that
date in a way that better supports New Zealand’s zero
carbon aspirations.
Obviously, any investment in the medium to long term in
non-fossil-fuel options for the New Zealand system would
need to meet commercial requirements. At the same time,
it is essential that there is sufficient security of supply,
and that any increases in the prices of electricity are not
a barrier to using our renewable electricity advantage to
decarbonise the rest of the energy sector. We are keen to
be involved in developing the pathway to a net zero carbon
economy by 2050, and cooperation and coordination with
others will be crucial to achieving this goal.
“We are keen to be involved
in developing the pathway to
a net zero carbon economy
by 2050.”
WE SEE NO REASON WHY NEW ZEALAND CAN’T MOVE THROUGH TO
90-95% RENEWABLE ELECTRICITY IN THE NEXT ONE TO TWO DECADES.
MOVING BEYOND THIS THOUGH WILL BE MORE DIFFICULT.
WIND FARM OPTIONS
CONSENTED IN NZ
3
Meridian Integrated Report 2018
00:25

RENEWABLE ENERGY IN AUSTRALIA.
The uptake of renewables is lower in Australia than it
is in New Zealand, which creates opportunities for us.
Powershop Australia continues to be the only electricity
company certified 100% carbon neutral by the Australian
Government for both our own activities and for all
emissions associated with our customers’ electricity
and gas use. In addition, Greenpeace has ranked us the
greenest power company in Australia for three consecutive
years. We have a strong development pipeline, and
are positioning ourselves as off-take Power Purchase
Agreement (PPA) partners. We’re also a member of the
Clean Energy Council, which advocates for effective
policy to accelerate the development of all clean
energy technologies.
However, the challenges in Australia are more significant
compared to those in New Zealand. Without having the
flexibility of a high proportion of hydro, there is more of
a challenge to integrate renewables like wind and solar.
We’re currently looking at how we can contribute to further
supporting a greater uptake of renewables.
ZERO CARBON. As a business, our 100% renewable
energy generation means we produce very few greenhouse
gas emissions. If the electricity we produce were derived
from modern gas-fired power stations, for example,
and not from hydro and wind, it would produce over
five million tonnes of carbon dioxide equivalent (tCO
2
e).
That’s about the same as putting two million more cars
on our roads. Instead, our emissions are limited to
office-based activities, some minor emissions generated
by maintaining generation assets, and the carbon cost
of servicing our customers.
Even though our carbon footprint is relatively small,
we want to go further. We’ve already removed most
of the low-hanging fruit – we’ve reduced our travel,
increased our video-conferencing, converted half our
passenger vehicles to full EVs, and each of our main
offices in Wellington, Christchurch and Twizel is a modern,
energy-efficient building that meets the New Zealand
Green Building Council’s 5-star standard. So not
surprisingly, we have achieved our five-year goal of a
10% per full-time employee reduction in our corporate
emissions. This year we have started re-evaluating our
carbon accounting boundary, and we expect to take a
more aggressive approach to both accounting for and
reducing the carbon in our value chain.
CORPORATE EMISSIONS (tCO
2
e)
10

0
FY18
FY15
FY14
FY17
FY16
1,500
Air travel
Car travel
Boat travel
1,200900600300
Office electricity
1,069
1,200
1,331
1,253
1,278
639
709
589
657
741
448
466
446
472
447
201
175
271
334
433
160
70
19
18
61
17
16
7
8
8
HFCs
11
Waste
CORPORATE EMISSIONS INTENSITY (tCO
2
e/FTE)
2.0
1.0
3.0
4.0
5.0
6.0
FY17
FY15FY16FY18
target
0
FY18FY14
5.2
4.8
4.4
4.2
4.1
4.5
10 Meridian parent company only.
11 Hydrofluorocarbons (air-conditioning gases).
17%
REDUCTION IN OUR PARENT
COMPANY CORPORATE
EMISSIONS PER PERSON
SUSTAINABILITY LEADERSHIP
00:26

Realistically, we know that we cannot eliminate all use
of carbon from our operations, which is why we are taking
a ‘net zero’ carbon approach, with a plan to reduce and
then offset our carbon footprint. From 1 July 2018 onwards,
we are now net zero carbon for our Group Scope 1 and 2
emissions through purchasing and cancelling carbon
credits (NZUs from forestry). And going forward, we would
like our offsets to come from native forestry projects on
the Waitaki and Waiau rivers and we are planning to start
planting this summer.
This is both practically and symbolically significant
because it captures our commitment to sustainability
leadership and it provides a powerful point of focus
for us to continue to challenge our own actions and
decisions. Importantly, it’s a way of demonstrating to
ourselves and to the wider business community that
sustainability is not necessarily a ‘cost’ to doing business,
but rather a smart way of working that has broad benefits.
For example, investing in these new forests not only allows
us to contribute meaningful climate action at a known
cost, it also contributes positively to our relationships
with local communities, improves climate resilience and
water quality, reduces erosion and sedimentation risk,
and enhances biodiversity.
IMPACTS OF CLIMATE CHANGE. We have only just
started our work on specifically quantifying the financial
implications for our business of climate change. This year
our focus was on pulling together our view of the risks
and opportunities.
The Board sets Meridian’s overall appetite for risk and
its approach to risk management. Included among the
various risks and risk scenarios that the Board reviews
are climate-change-related risks.
Of the 20 specific climate change risks identified, 12 are
considered well managed, six require ongoing monitoring,
two are considered priorities and there are no urgent risks.
For Meridian, climate change provides us with several
opportunities that include the decarbonisation of transport
and industrial heat, which will increase demand for
electricity. As an energy retailer that already attracts
environmentally conscious consumers, adopting a strong
stance in combating climate change provides us with more
opportunities to attract and retain these consumers. It is
similar in Australia, with the potential to continue to grow
our Powershop brand, which is Australia’s greenest retailer.
There are also growth opportunities associated with the
increase in renewable generation required to meet future
demand growth; Meridian is well placed to participate in
this growth.
MERIDIAN GROUP GREENHOUSE
GAS EMISSIONS (tCO
2
e)
tCO
2
eFY12
12
FY15FY16FY17FY18
Direct emissions
(Scope 1)
1,3051,1591,0721,3081,628
Energy indirect emissions
(Scope 2)
3,6651,7302,17 11,9531,960
Other indirect emissions
(Scope 3)
10,6583,0102,8362,4482,465
Total emissions
(Scope 1, 2 and 3)15,6285,8996,0795,7096,053
EVS. We’re encouraging uptake of EVs and we’re helping
residential and commercial customers to make the
change and help reduce New Zealand’s carbon footprint.
We’re actively supporting a shift to more EVs on our roads
because they have such potential to help decarbonise
New Zealand’s transport sector, which currently accounts
for around 17% of the country’s emissions. Our Taking on
Norway TV advertising campaign went live in April, and
together with our $300 free charging for a year offer has
significantly increased our Electric Car Plan customers,
with more expected to come on board in the months ahead.
Clearly, one of our goals as a leader in sustainability is to
be the first choice for customers who have EVs. A special
pricing plan for customers who already own EVs encourages
them to charge their cars overnight on tariffs lower than
they would otherwise pay. One of the concerns we’re trying
to avert through this plan is that, as the number of EVs
increases, people will be charging their EVs at standard
peak times and this will put significant demand on current
infrastructure. Encouraging them to change their habits
now will help people make the adjustment to charging
their vehicles when demand is lower and there is greater
capacity across the lines networks.
12 FY12 is our base year. For our complete audited Meridian Group
Greenhouse Gas Inventory Report, see https://www.meridianenergy.
co.nz/about-us/sustainability/greenhouse-gas-emissions/.
Meridian Integrated Report 3021
00:27

As we signalled last year, we’re also committed to using
more EVs in our own business, and our electric passenger
car fleet is on target at 50%. We’re currently introducing
trial electric vans for some maintenance activities. We’re
also in discussions and negotiations with a range of
commercial customers, including transport companies,
property companies and other corporates, to encourage
them to electrify their fleets. We expect to achieve a 90%
electric passenger car fleet by the end of 2020.
SUPPORTING OUR VULNERABLE CUSTOMERS. Not
everyone can afford an EV; some households struggle just
to keep their homes warm and dry, particularly through
winter. The market dynamics described earlier in this
report have not only kept New Zealand electricity prices
stable but also ensured that those prices remain lower
than the OECD average. However, we recognise that
energy costs are an important part of household spending,
particularly in colder months, and that there will be times
when some customers find it hard to pay their bills.
0.0
NEW ZEALAND DISCONNECTIONS
13
FY18
14
FY15
FY14
FY17
FY16
Meridian
Powershop NZ
Total market
0.80.60.50.40.30.20.1%
0.2
0.3
0.4
0.1
0.2
0.3
0.2
0.2
0.3
0.4
0.3
0.3
0.7
0.7
0.4
0.5
13 Data from the Electricity Authority (emi.ea.govt.nz/Datasets/Retail/Disconnections).
14 FY18 only includes three quarters of data.
Research shows that people with low incomes are more
likely than those with higher incomes to live in housing that
is not energy efficient or well insulated because of what
they can afford to buy or rent. As a result, they consume
more power to stay warm. Compounding this issue is that
people who live in homes that are not energy efficient are
more likely to suffer from respiratory illness, which can
further affect incomes and increase energy requirements
from equipment and needing to stay warm.
As part of our commitment to affordable energy, we look
to support vulnerable customers. These are customers
that have self-identified as being financially vulnerable
or those who struggle to pay their bill from time-to-time.
We support them in a number of ways in order to meet
our social and regulatory obligations, and to reduce the
number of customer disconnections.
In the past five years, Meridian has reduced the number
of customers being disconnected by over 80%. While our
disconnection rate has increased compared to last year,
80% reduction over
the last five years
of Meridian customers
being disconnected.
SUSTAINABILITY LEADERSHIP
00:28

it is still lower than the market average and we now very
much see disconnection as a last resort. We employ a
Hardship Consultant to provide individualised support
to customers who enter our credit cycle, helping those
customers in difficulty to manage their current and
future bills. We do this through regular communication,
discussions about improving energy management, help
with heating and appliance use and, where appropriate,
introductions to appropriate budgeting advice services.
We also work with government support agencies such
as Work and Income.
Finally, we strongly support distribution pricing reform
because we believe network charges that are more
reflective of actual costs would help ensure that those
who struggle from time to time to pay their bills don't end
up paying more than their fair share. We agree with the
International Energy Agency, which said in its 2017 report
that these charges may result in some customers paying
more for their energy than others and that the charges have
the potential to distort the market at consumers’ expense.
We are looking at ways to further support our customers
and help to close the affordability gap for those struggling
to achieve warm, dry homes.
As we pointed out in our submission to the proposed
Electricity Price Review, the reasons for some customers
struggling to pay their power bills are complex. They relate
not just to electricity costs themselves but to factors such
as income level, quality of housing and appliances, the
customers’ overall level of health, and the availability and
cost of other household goods. We agree with the need
to progress regulatory settings in the energy sector but
believe that reforms must happen alongside broader social
policies to ensure the best outcomes for all customers.
We’re doing what we can through such things as our
sponsorship of the great work of KidsCan, but we can’t
do it alone.
Meridian Integrated Report 2018
00:29

LEADING
00:30
PUTTING CUSTOMERS FIRST

Competing successfully in today’s
markets is about delivering customers’
excellent service and experiences,
and connecting on the things
that matter to them.
LEADING
THE PACK
00:31
Meridian Integrated Report 2018

We are committed to being a distinctly customer-
focused company in everything we do. We see
opportunities to grow the services that customers
buy from us by personalising and improving those
services in ways that they value and that generate
increasing loyalty. Our commitment to different
brands, to careful measurement and to working
within the frameworks that our regulators set is
part of defining Meridian and its brands as the
sustainable suppliers of choice in Australia
and New Zealand. This year we are pleased to
report that we have made good progress on all
those fronts.
DIFFERENT BRANDS, DIFFERENT DRIVERS.
One of
the benefits of having three well established customer
brands in two geographies is that we can present
consumers with options that appeal to different emotional
and rational drivers.
Customers of our Meridian brand value being with a
renewable energy generator, with 40% of them viewing
Meridian as a leader in sustainability. They are reassured
by the fact that we care deeply about the environment
and the people of New Zealand. One in five of our Meridian
customers, about twice the number of most of our
competitors, are strongly committed to environmental
action. Interestingly, the recent Colmar Brunton Better
Futures report found that around half of all New Zealanders
are choosing to not buy products that don’t have
sustainability credentials. These conscientious consumers
are people who are actively thinking about tomorrow
because they want to ensure that our planet and society
are in good shape for future generations.
Our Powershop brand appeals to those looking for
flexibility and control over their energy usage and cost,
and who enjoy the funny and irreverent way that Powershop
New Zealand engages customers. To build on this brand
position and meet both the rational and emotional needs
of New Zealanders, Powershop New Zealand has expanded
its product mix this year with the launch of three
innovative offerings.
• Time-of-use offering for residential customers
called Get Shifty
• Allowed people to contribute to a selected
charitable partner through Power for Good
• Expanded the reach of the brand by developing
a standard Lite proposition more closely aligned
to the traditional retailer model
In Australia, where we retail using only our Powershop
Australia brand, sustainability is also important but for
different reasons. Here, the country’s high reliance on coal
and gas generation means it faces significant challenges
to decarbonise its electricity sector, which has enabled
Powershop to take a unique position in the market being
backed by a renewable energy generator.
Our Australian business currently represents less than
10% of our Group annual revenue, so there is headroom
for expansion, particularly as Australian consumers
increasingly look for renewable options. Incumbent
retailers in Australia are under pressure to help transition
the country to a low-carbon future and consumers’ search
for sustainably produced electricity aligns well with our
Powershop Australia brand.
This year we’ve commenced offering a new gas product
with a 100% carbon offset to our customers in Victoria. Gas
used in the home is less carbon intensive than electricity
generated from a system dominated by coal, so it is a good
transition fuel to cleaner options, and most Victorian
homes still depend on it so there is a sizeable market
that Powershop cannot reach by retailing electricity only.
Offering gas in Victoria will help us grow our business
and drive us to invest in renewables as our customer
base grows, such as our recent acquisition of the Hume,
Burrinjuck and Keepit power stations in New South Wales.
We know from our research that people want and expect their electricity
providers to be reliable and make it easy for them to get assistance when
they need it. Customers want to deal with companies that are open and
transparent and good corporate citizens. All of this adds to what our energy
customers perceive as value for money – companies that resonate with their
values and deliver a great customer experience.
00:32
PUTTING CUSTOMERS FIRST

A$444,000
FOR RENEWABLE ENERGY
COMMUNITY PROJECTS
IN AUSTRALIA
SUPPORTING OUR CUSTOMERS TO TAKE CLIMATE
ACTION.
In both New Zealand and Australia we support
customers looking to adopt new technology. For many of
those looking to install solar systems, for example, the
change is not just about money, it’s about being able to
contribute to the continuing push for clean energy (which is
particularly relevant in Australia with the majority of their
grid electricity coming from coal and gas). An increasing
number of our customers are interested in EVs as a way
of combating climate change and reducing running costs
(particularly in New Zealand, where the opportunity
is to replace the use of petrol or diesel with electricity
generated from 82% renewable energy sources).
Commercial solar users are also part of this change,
and this year we’ve continued to work with users and
networks in New Zealand where solar is a viable option to
arrange installation of solar arrays at customers’ facilities.
Industrial consumers are also major users of energy.
To help them cut their energy bills and the demands
they place on the national system, we are working with
a number of New Zealand businesses to convert their
existing coal and gas boilers to electricity.
What’s clear throughout these discussions is that
sustainability has become a core driver for many, not
just in managing their reputations but in helping them to
achieve compelling efficiencies on site and through their
supply chains. In much the same way as solar has moved
increasingly into the mainstream in Australia, we’re seeing
a much broader and more enthusiastic acceptance of
commercial solar within New Zealand businesses.
In Australia, Powershop has introduced a range of
programmes to help customers support sustainable
initiatives. Grid Impact offers customers with solar and
batteries the opportunity to become part of a Virtual
Power Plant. Working with our partner Reposit, we activate
customers’ battery systems when the cost of electricity
spikes or when demand for electricity is high. They help the
entire electricity system by taking pressure off the grid and
we provide them with rewards that help them save on their
power bills.
3 BRANDS
2 MARKETS
Curb Your Power is Powershop Australia’s customer
demand response programme, where our customers in
Victoria can help reduce demand on the grid by curbing
their power usage at certain peak demand times. We send
customers text messages asking them to decrease their
power use, and in return we pay them for taking action.
Your Community Energy is a way for our customers to
support small-scale renewable energy in Australia.
Customers pay a small premium on their power and
the money raised goes into a pool that is distributed to
community organisations so that they can transition to
renewable sources of energy. So far we’ve raised
A$444,000 towards the cost of energy transition for
community groups.
Acknowledging this success, Powershop New Zealand has
launched a similar Power for Good proposition aimed at
enabling its customers to support charitable organisations
through their power bills.
CUSTOMERS EXPECT MORE AND MORE. Providing
our customers with an exceptional experience that enables
them to engage with us easily and seamlessly on their
terms and through the communication channels they
prefer will continue to be a focus. Our customer brands
attract people who want to do business with a sustainably-
minded company but we know that improving our customer
experiences is vital to differentiate ourselves from others
in the market.
Our key project to improve our Meridian customer
experience will be the transition of customers to the
Flux Federation software platform over the next three
years, and backing that up with market-leading customer
experiences and engagement. Our Powershop brands in
both Australia and New Zealand are already using this
software, so we are confident based on their feedback
that it will improve the experiences we offer to Meridian
customers and help us lower our overall cost to serve.
For Flux, finding the talent capable of developing the
software for the ambitious transformation programme
planned for our customer brands is critical. Intellectual
property will underpin our technology and customer
service advantages in the years ahead, so is linked directly
with our growth capability overall. More than 130 people
already work in that business – employed locally and from
overseas as required – and an intern programme plays an
important role in transitioning people from introductory to
permanent roles. We also have a Flux development team
based in Melbourne, allowing us to tap in to another market
for talent.
00:33
Meridian Integrated Report 2018

PUTTING CUSTOMERS FIRST STARTS WITH PUTTING
OUR PEOPLE FIRST. People are critical to the delivery
of competitive customer service and experience and we
have continued to build our customer team capabilities,
particularly in sales, to ensure we are actively growing
and retaining our customer base. Our customers expect
our staff to be knowledgeable in a wide range of areas.
They expect them to know about the electricity market,
energy efficiency and new technologies. To ensure that
we can respond quickly and accurately to their questions,
we train our call centre, sales and account management
staff to answer a full range of enquiries.
Finding the right people to do this demanding work
continues to be something of a struggle, particularly for
outbound tele-sales, because demand for talented people
is high and there are many options available. Staff retention
is a key reason why we are currently looking at more
flexible working options that will allow people to work
from different locations and at hours that work better
for them. Overall, engagement scores are good in our
customer team.
One of the other initiatives on which we continue to deliver
is giving people in our frontline roles an understanding
of where and how they can progress to other areas in the
business. Developing and promoting our people through
internal opportunities is a powerful way to retain their
skills and knowledge. In the past 12 months, approximately
10 people from our Meridian Energy Centre teams have
progressed on to different positions within the Meridian
customer team. We have also had a couple of our people
move from New Zealand to work at Powershop Australia
head office in Melbourne. The added advantage of this
of course is that they already have a comprehensive
understanding of our customers and products.
REACH. Reaching the right customers at the right time
with the right messages requires strong data analytics
and focused marketing. That data and the insights it offers
help us to identify those customer segments that are most
valuable to our business. Understanding their priorities and
triggers enables us to reach out to them with marketing
strategies that are relevant and attractive to them, which
helps us to retain them.
To connect with our customers, we use integrated
marketing campaigns to grow general brand awareness,
and marketing and sales campaigns to reach prospective
customers through a variety of channels and partnerships.
Three-quarters of Meridian customers receive
communications via email and around a third use our
online portal. As a digital-only business, Powershop sends
its customers communications through email and the
Powershop mobile app.
AND EFFECTIVENESS. We use a number of ways
to measure the effectiveness of our brands and our
marketing. Our Meridian brand uses a residential customer
commitment score to measure what proportion of our
customers are deeply committed to our brand
15
. As of
June 2018, the score for our Meridian brand was 39%,
a substantial gain from the 30% recorded in November
2017. Customers have told us that their key motivations for
staying with us are that we are a “proven provider” and
“trustworthy” and they like our commitment to “being
environmentally friendly”. Our brand commitment score
compares with an average of 32% for all New Zealand
energy companies and 29% for the major retailers in June
2018. This suggests that our efforts to better meet the
needs of customers are having a noticeable impact on how
customers feel about Meridian.
Both Powershop New Zealand and Powershop Australia use
the Net Promoter Score (NPS
16
) to assess their relationships
with customers. This year the rolling 12-month average for
Powershop New Zealand’s NPS is 54.9, an increase from
47.8 last year, while Powershop Australia’s also remains
continuously above 50. When these scores are compared
to the industry NPS average of +14 in New Zealand and
-14 in Australia
17
, it’s clear that our Powershop brands
continue to have highly satisfied and engaged customers.
“ Our customer brands attract people who want to do
business with a sustainably-minded company, but we
know that improving our customer experiences is vital
to differentiate ourselves from others in the market.”
15 Calculated from a brand tracking survey undertaken by Clarity Insight asking customers using a 0-10 scale “Imagine you don’t have an electricity
provider, and were deciding which one to use... how likely would you be to choose Meridian?”. A 9-10 response classifies customers as Committed.
16 Calculated from a survey asking customers using a 0–10 scale “How likely is it that you would recommend Meridian/Powershop to a friend or
colleague?” and then subtracting the percentage of detractors from the percentage of promoters. A positive value indicates that more customers
are promoters versus detractors (and vice versa).
17 Perceptive Group Limited; New Zealand NPS Industry Benchmarks 2017 Report and asknicely.com for Australia.
00:34
PUTTING CUSTOMERS FIRST

In June, Meridian also started measuring NPS measure
using a similar methodology.
Powershop New Zealand's success has been largely driven
by two new customer-facing initiatives. First, addressing
the prevailing industry sentiment that new customers are
given better deals than existing customers, Powershop
has launched tenure-based rewards which provide loyal
customers with a tiered discount based on their tenure.
This approach flips the traditional utility pricing model on
its head. Second, Powershop doubled down on its single
point of difference, ‘the shop’, and introduced a new
advance-purchase behaviour to the residential market
with Future Packs. These enable its customers to purchase
energy up to six months in advance and in turn smooth the
impacts of winter bills.
In Australia, Powershop has continued to introduce
initiatives to manage market change, such as smart meters
at no upfront cost for customers in New South Wales and
Queensland (where smart meters aren’t standard), and
through improvement initiatives such as welcome calls
to improve onboarding experiences for new customers.
CUSTOMER CHURN. Churn is a sign of a healthy and
competitive market where prices are fair and switching is
easy. However, we are always working on decreasing our
own churn by increasing customer loyalty and encouraging
our customers to stay with us.
Meridian’s churn rate in the past 12 months has been
17.9%, which is the lowest churn rate amongst the major
electricity retailers. While Powershop NZ churn is higher,
Meridian and Powershop NZ combined churn is in line
with the industry average of 21%
18
.
Churn continues to be high in Australia but in most states
this follows market trends.
A WELL RUN MARKET. In New Zealand, electricity prices
are currently stable, reflecting flat demand and strong
competition, particularly amongst retailers. In fact, as we
reported last year, an analysis by the Ministry of Business,
Innovation and Employment
19
showed that the real cost of
electricity to the average residential customer fell for the
first time in three decades. This shows that the electricity
market set up here more than 20 years ago is working
efficiently. There are around 50 retail brands serving
around two million customer connections which continues
to shape a market where customers have unprecedented
choice, the overall market pressure on prices is downward
and participants such as ourselves must work effectively to
meet today’s demands and enable tomorrow’s capacity.
We believe that the New Zealand electricity market is open,
efficient and fair. As we explained in our submission to
the Electricity Price Review, we believe it helps to create
positive outcomes for New Zealanders with competitive
retailer pricing, plenty of choice and opportunities for
innovation, a high standard of customer service and good
security of supply. The Electricity Price Review that is
currently underway will confirm or seek to improve this and
we welcome this investigation into fair pricing.
Similarly, the market fundamentals work in Australia.
Recent high wholesale prices have led to an acceleration
in development of new renewable generation, which has
in turn caused wholesale prices to moderate. However,
Australia is battling a need to reduce its reliance on fossil
fuels and introduce less carbon-intensive options to
facilitate meeting its commitments to the Paris Agreement
targets. The new National Energy Guarantee, which
for the first time ties together energy decarbonisation,
affordability and security into a single policy, has the
potential to break a decade of policy instability.
As the owner of long-term assets, we value the stability
and certainty of the current regulatory environment and
support the work of our key regulatory body, the Electricity
Authority. We do this through active participation in
industry working groups and through submissions on the
EA’s programme of work that we believe will help improve
the efficiency of current rules and frameworks and ensure
better outcomes for consumers.
As a key member of the energy sector, we have a
responsibility as a good corporate citizen to advocate for
a market environment and a wider regulatory environment
that is conducive to achieving our commercial and
sustainability goals. In FY18, we have spent $230,000 on
membership of groups that advocate on a range of issues
that are important to us, and help us join forces with
others to coordinate and amplify our views. For example,
we advocate for value for our customers through our
membership of the Electricity Retailers’ Association of
New Zealand (ERANZ, $167,763) and sustainable business
and clean energy technologies though our membership
of the Sustainable Business Council in New Zealand and
the Clean Energy Council in Australia (total of $26,750)
along with an additional $34,500 spent on memberships
of Business NZ and Drive Electric.
18 Industry churn in New Zealand is calculated by the EA: https://www.emi.ea.govt.nz
19 http://www.mbie.govt.nz/info-services/sectors-industries/energy/energy-data-modelling/statistics/prices/electricity-prices.
00:35
Meridian Integrated Report 2018

RESPONSIBLE GENERATION
00:36

R AIN
COME
We look to work with what
we do know and what
we don’t in a disciplined
manner. In the case of
our generation business,
that’s about ensuring our
dams are resilient, our
people are safe and our
relationships are strong.
SHINE
COME
Meridian Integrated Report 2018
00:37

Hydro generation is fundamental to the
achievement of New Zealand’s aspiration
of net zero carbon by 2050. Hydro provides
the majority of New Zealand’s current
renewable generation, and its flexibility
to deal with daily and weekly variations in
both demand and supply from other renewable
technologies such as wind and solar is key
to ensuring that more renewable energy
can be connected to the New Zealand
electricity system.
It is also true that water use in New Zealand (as in Australia
and globally) is highly debated. There are multiple
groups of people who have an interest in our waterways
– from cultural, recreational, commercial and personal
perspectives. Similarly, local communities can have
strong opinions about wind energy, with understandably
strong emotional attachments to the places in which they
live. Navigating these interests, in a collaborative way
that supports positive outcomes, is vital to ensuring that
hydro and wind energy can continue to contribute to the
country’s climate action goals and targets.
Our commitment to renewable energy is also increasingly
attractive and competitive in Australia, which is looking
for initiatives that will help it to reach its own renewable
energy targets. The purchase of three hydro power
stations and the negotiation of several Power Purchase
Agreements with renewable projects in Victoria and New
South Wales will add over 600GWh to our Australian
generation, taking Meridian’s annual renewable generation
in Australia to around 1,200GWh, about 8% of our overall
Group generation volume. This in turn will support Meridian
Australia’s continued customer growth through the
Powershop brand and drive further demand for large-scale
renewable energy in Australia.
Making the most of our generation assets is about ensuring
that our people are safe and well trained, that the assets
are maintained properly and with due care, that we have
water available to generate power and revenue, that
natural habitats are protected and that communities close
to us feel included and consulted in what we are undertaking
in the places they hold dear. Considering all these elements
in our day-to-day operations is what we mean when we talk
about being a responsible generator.
RESPONSIBLE GENERATION
00:38

WATER. Water is a deeply emotive issue for many
New Zealanders. From access to quality drinking water to
river quality, the right to use and access water has become
a matter of sometimes heated public debate. Fresh water is
of course central to our hydro activities and we are deeply
conscious of the value and role of water and waterways
for New Zealanders. As a proudly New Zealand company,
we take our responsibilities very seriously – especially
when, in summers like the one we have just had, inflows
into our hydro storage lakes fall to very low levels. In
the first half of this year, this affected both our ability
to generate electricity and our profitability. Low inflows
into the Waiau lakes saw storage levels drop, a pointed
reminder of how variable water resources can affect
our business and that having greater latitude around
developing alternatives to fossil-fuel options as cover for
dry periods is a sound strategy.
Water is a shared resource and is managed by way of an
integrated regulatory and administrative framework that
is principally achieved in New Zealand by the Resource
Management Act 1991 (RMA). Overall the RMA seeks to
ensure that any use of water satisfies the Act’s over arching
purpose of sustainable management. Meridian’s ability to
utilise water for hydroelectricity purposes is subject to the
RMA and requires resource consents from local authorities.
This entails a full assessment of environmental effects
at the time of lodgement, evaluation against national
and local policies and conditions of consent requiring
any ongoing obligations as to avoiding, remedying and
mitigating any adverse effects. Meridian holds all the
necessary consents required for its activities and aims
to ensure it meets sustainable thresholds. In the past
year we have recorded five minor plant-related breaches
of environmental compliance. None was deemed serious
and there were no fines.
We work with a wide range of stakeholders in the
catchments in which we operate, including with one of
our competitors, Genesis Energy. In 2011 we sold the
Tekapo A and B stations along with the canal that
connects them to Lake Pūkaki to Genesis. As part of that
arrangement, both parties are responsible for water
management (in the form of high-flow and flood control),
sharing pertinent information and forming coordinated
and simplified positions around resource management
issues, the management of hazards and the consents of
assets. Genesis is also required to deliver a certain flow
of water each month from Lake Tekapo to Lake Pūkaki.
OUR COMMUNITIES. We engage with our asset
communities in a range of ways, from face-to-face
meetings to having dedicated people working with the
communities, our participation at community board
meetings and general day-to-day collaboration.
We also work closely with local and regional councils,
particularly during consenting and through the submissions
process, by participating in working groups and
committees and reporting on our compliance with resource
consent conditions. And we have agreements with various
groups connected with the waterways.
Our social licence to operate depends on building trust
and good relationships with all of these groups.
We want people, groups and communities to feel included
and consulted and that we have worked with them to make
life around our wind and hydro operations better.
Perhaps our most visible local contribution comes
through employment and support, which helps small
local communities to flourish and attract people to their
townships, and Power Up, our community fund that
Meridian Integrated Report 2018
00:3900:39

specifically supports projects in areas where we have wind
farms and hydro stations. Each year we contribute more
than $500,000 through this fund which means that, in the
11 years that it has been running, we’ve contributed almost
$7 million to around 935 community-led projects. In that
time we’ve been able to restore waterways in Mākara near
Wellington, improve the habitat for the Haast tokoeka
kiwi (New Zealand’s rarest kiwi) on Rona Island in Lake
Manapōuri, develop an ambulance bay and helipad at
Twizel Medical Centre and so much more.
THE MANA WHENUA OF NGĀI TAHU. Strong
relationships are crucial and we recognise the mana
whenua of Ngāi Tahu in relation to our hydro schemes
in the Ngāi Tahu takiwā (territory), and engage with them
and other iwi through relevant sub-groups and through
regular meetings. We also hold specific meetings around
our wind assets, usually in regard to consents.
Given Ngāi Tahu’s intergenerational focus, we’re committed
to maintaining a long-term relationship with Te Rūnanga
o Ngāi Tahu, recognising and responding to the kaupapa
of Ki Uta Ki Tai (mountains to the sea) and working closely
with local rūnanga (Arowhenua, Awarua, Hokonui, Moeraki,
Ōraka Aparima, Waihao and Waihōpai) as our partners
in the Waitaki and Waiau catchments. This year we have
worked with different groups to repurpose the Lake Pūkaki
Visitor Centre as part of our commitment to proactively
enhancing Ngāi Tahu values within the catchment and
further cementing the Ngāi Tahu-Meridian relationship.
We’d like to take this opportunity to pay tribute to Mandy
Holme, who played a vital role in working with us in the
Waitaki catchment, and who, sadly, passed away this year.
TAKING THE ENVIRONMENT SERIOUSLY. One thing
all our stakeholders agree on is the importance for us
as a renewable energy generator to demonstrate good
environmental management of biodiversity and water
quality as it relates to our assets. This is also deeply
important to our staff, and underpins our operations
and role as a responsible generator.
We’re working closely with other water users, communities,
Ngāi Tahu and local authorities that have an interest in
water on which we rely on for about 90% of our electricity
generation. We appreciate that strong relationships
are crucial to maintaining our access to water, and are
an essential part of being a good corporate citizen and
neighbour in our hydro and wind generation communities.
We do everything we can to manage the impacts of hydro
generation on the environment. Water that has been
compromised in terms of its quality does enter our system,
which boosts the chances of algal growth and weeds that
PROJECTED GENERATION
IN AUSTRALIA
WE HAVE BEEN WORKING WITH THE DEPARTMENT OF
CONSERVATION TO PRESERVE AND RESTORE BRAIDED
RIVER HABITATS IN THE WAITAKI CATCHMENT. AROUND
100 HECTARES OF NEW WETLANDS HAVE BEEN CREATED
1,200GWh
20 Municipal water consumption not reported as minimal and not metered.
21 No exposure to water stressed areas.
22 Fresh water taken from Lake Manapōuri is released into Doubtful Sound, a marine environment, and is not altered in terms of water quality.
WATER FLOWING THROUGH OUR HYDRO SYSTEMS
20,21
FY14FY15FY16FY17FY18
Fresh surface water (lakes, rivers) passing through our assets75,98373,88370,61072,94665,562
Water returned to the source of extraction at similar quality64,05562,51856,48161,49953,823
Total net fresh water consumption
22
11,92811,36514,12911,44711,739
RESPONSIBLE GENERATION
00:40

then need to be filtered out before the water can pass
through our turbines. Hydro generation also affects the
landscape by creating lakes and canals, and it also affects
the timing and volume of river flows through diverting
water. This has resulted in sections of the Tekapo and
Pūkaki Rivers no longer having continuous flows; instead
these rivers have intermittent flows that have converted
the habitats from aquatic to terrestrial. We also note
for the Waitaki hydro chain that our water takes match
the discharges and therefore there is no ‘consumption’
of water, and overall any adverse effects around water
quality, as an example, are largely benign. Our only
‘consumption’ of water is from the Manapōuri catchment
as this water is returned to a different part of the
environment (taken from a fresh water lake and returned
to a marine environment [Doubtful Sound]). Our
infrastructure can also affect the ability of native fish
to move through the catchments. These changes in turn
affect a range of stakeholders.
As a significant user of water, we have managed these
impacts for some time. Two biodiversity impacts in
particular – our impacts on eels (tuna) and braided river
habitats – are mostly managed through projects funded by
Meridian. These projects were designed in collaboration
with local authorities and other interested parties when our
consents were originally granted, to preserve environmental
biodiversity in areas affected by our hydro generation
operations. They include initiatives such as eel ‘trap and
transfer’, Project River Recovery and support for the Waiau
Fisheries and Wildlife Habitat Enhancement Trust.
At both the Waitaki dam (the lowest hydro structure in the
Waitaki scheme) and the Manapōuri Lake Control Structure
(the lowest hydro structure in the Manapōuri scheme)
we operate elver ( juvenile eel) trap and transfer
programmes. Since our eel mitigation programme began
in the Waiau catchment in 2012, we have moved thousands
of eels and elvers every year. We estimate there are 6,500
mature eels in the waters behind Manapōuri and a much
smaller number in the Waitaki catchment. We have also
moved one tonne of juvenile eels at Manapōuri this year.
Once below the Manapōuri Lake Control Structure, the
eels have open access downstream and can migrate
successfully to the sea for spawning. For the moment, we
judge success on the number of eels we are able to catch
and successfully transfer because, in reality, given the
lifecycles of the eels themselves (a 70 year lifecycle, with
breeding at 50 years), it will be many decades before we
know whether we have succeeded in helping them achieve
a sustainable population.
The major environmental mitigation in the Waitaki
catchment is Project River Recovery. It has been in place
for 27 years and has been funded by Meridian and our
predecessor organisation (ECNZ) since 1991. We have
been working with the Department of Conservation to
preserve and restore braided river habitats in the Waitaki
catchment. Around 100 hectares of new wetlands have
been created. That programme focuses on the health of
these habitats and our work there includes weed control
over 33,000 hectares of riverbed and pest eradication to
protect black-fronted tern/tarapirohe colonies. The project
also focuses on helping kakī or black stilt to recover.
At the national level, we are also involved in the
development of environmental policy for water through
our involvement in the Land and Water Forum and for
biodiversity through the Biodiversity Collaborative Group.
FINDING AND KEEPING THE RIGHT PEOPLE. Team
mix is important. As control of our generation assets has
become increasingly automated, the skills required
to manage, maintain and upgrade them are changing.
To make the most of the efficiency and accuracy gains
that technology makes possible, we now require a much
broader set of expertise to run our hydro and wind assets.
Our staff in the generation part of our business are
predominantly older, pākehā males. We are focused on
retaining good staff but also recruiting young talent to
replace our senior staff as they retire. To support young
women to get into technical careers, we’re partnering with
programmes such as the Connexis Girls in Hi-Vis.
This year, new team members took over from three
of our senior staff in Twizel and Manapōuri who retired.
At the same time, our internship and graduate programme
continues to attract new people to the industry, and
we have been able to convert graduates who joined us
through that programme become permanent members
of our teams.
GENERATION AND WHOLESALE STAFF
APPROACHING RETIREMENT AGE
IN FIVE YEARS
10. 2%
IN TEN YEARS
22.7%
FY17
IN FIVE YEARS
9.1%
IN TEN YEARS
20. 3%
FY18
Meridian Integrated Report 2018
00:41

COMMITTED TO SAFETY LEADERSHIP. Energy
infrastructure has the potential to be highly hazardous
unless handled with care and respect.
Our employees and contractors are required to report
any hazards or incidents through Meridian’s electronic
safety management system Safety Manager, a dedicated
0800 number, or through one of our organisations elected
Safety and Health representative or site managers. In the
countries in which we operate, people who raise health and
safety concerns are legally protected, but we take an even
stronger view than that which ensures that all observations
of risk are valuable opportunities for us to learn. It is
key that we are all in the waka together ensuring we all
go home safe at the end of the day. Our comprehensive
approach to safety and health enables us to do this as well
as meeting what's expected of us under law.
Our formal health and safety structure includes site-
specific health and safety committees representing
everyone on our sites, including contractors, and these
committees meet monthly to identify hazards and review
incidents that have occurred. The representatives on
these committees receive regular training in risk
identification and controls, and are supported by
dedicated Safety Specialists in each of our business
units, who assist with regular reviews of the hazards
presented by our operations.
We continue to invest in training programmes to raise
health and safety awareness and encourage consistent
behaviour and attitudes towards safety at work. This
year we have introduced virtual reality as a powerful and
innovative way to train our people to work in high-risk
areas, in addition to our comprehensive programme that
includes industry and site inductions, first aid courses,
specific training on the incident reporting system, confined
spaces, working at height, asbestos awareness, hazardous
goods, rigging and cranes, driver education specific to
off-road and winter conditions, as well as more general
culture and safety behaviour training. Random drug and
alcohol testing was also launched company-wide this year.
In FY18, we’re pleased to report, there have been no
significant harm injuries at our generation sites or across
our Group operations and a further reduction in our
workplace injury statistics. These primarily consisted of
superficial injuries and sprains, none of which were related
to our eight critical risks, which have been identified
through our Fatal Risk Framework as posing a risk of high-
consequence injuries and have controls in place following
analysis using the Bow Tie approach. We continued to
tighten our processes this year, launching a range of
work control procedures to standardise how tasks are
approached. Through the Electrical Industry Health and
Safety Group, StayLive, we’ve contributed to a new website
that provides industry participants with an opportunity to
share collective learnings. Meridian is currently the Chair
of StayLive.
INTELLIGENT DAM MANAGEMENT. On any given
day, we manage about 50% of New Zealand’s total hydro
storage. Our Waitaki hydro scheme includes six power
stations from Lake Pūkaki to Lake Waitaki in the Mackenzie
Basin. They are the three Ōhau stations, Benmore,
Aviemore and Waitaki. Our Manapōuri power station is the
country’s biggest and its catchment area of Lakes Te Ānau
and Manapōuri receives some of New Zealand’s highest
rainfall. In Australia we also have the Hume, Burrinjuck and
Keepit hydro power stations. Together, these assets
not only represent the majority of our market value,
they also come with significant responsibilities, including
of course our obligation to protect people, property
and the environment around and downstream from
these structures.
TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR
23
)
0.0
4.0
1.0
2.0
3.0
Meridian employees
24
Meridian on-site contractorsMeridian on-site
1.18
2.68
1.52
FY15
1.67
3.11
1.86
FY16
0.19
3.61
0.73
FY17
1.55
2.93
1.99
FY14FY18
0.70
1.82
0.88
23 TRIFR is calculated per 200,000 hours and includes all lost time, medical treatment and restricted work injuries.
While we have incident numbers for Powershop New Zealand, Powershop Australia and offsite contractors,
the TRIFR cannot be calculated as the number of hours worked for those periods has not been recorded.
24 Includes Meridian Australia generation staff.
RESPONSIBLE GENERATION
00:42

New Zealand energy companies and dam operators
take dam safety and asset management very seriously.
Through the New Zealand Society on Large Dams, we
operate within guidelines that represent the very best
in national and international practice. At the same time,
Meridian works with Dam Safety Intelligence, a subsidiary
group of engineers, scientists and geologists focused
on the safe management of dams and other water
infrastructure. It operates as an independent company and
undertakes a range of work for a variety of dam owners,
from regular inspections and monitoring to investigations
and management of safety issues, to ensure dams are
performing as expected and maintained for operation into
the future.
We would describe our approach as mature. Part of the
reason for this is that we are continually looking for ways
to improve performance and safety. This year, for example,
we have worked with people across the hydro business to
review the rules on dealing with flood conditions.
As we reported last year, we conducted an independent
benchmarking exercise of our New Zealand hydro portfolio
assets for the period July 2015 to June 2016 that compared
our assets to an international database of hydro generators
of a similar size and age. In the last report, our hydro
assets were top-quartile performers for cost vs results
achieved and our Benmore, Manapōuri and Ōhau B and
C power stations were recognised as leaders within their
peer groups. Since that report was released, we have
changed benchmarking provider from GKS (Generation
Knowledge Services) to a member-run group, EUCG, which
will give us access to more continuous results and analysis.
A new report is due in 2018 based on benchmarking in
the past five years for our hydro assets. The GKS report
covered both hydro and wind.
A RESILIENT ASSET MIX. Asset performance has our
constant attention. A rolling 20-year asset management
plan for our hydro assets guides how we maintain, repair
and future-proof our dam infrastructure and operations.
The plan incorporates considerations around seismic
impacts and analyses of the impacts that major flood – or
drought – events, particularly those brought on by climate
change, are likely to have on our business. This year we
have undertaken a review of potential seismic impacts
in our assets in the Manapōuri and Waitaki catchments,
taking into account new information that has become
available in the past 10 years. The analysis reconfirmed our
understanding of the expected impacts of a seismic
event and provided us with continuing confidence that our
dams will perform safely should an extreme event occur.
Our wind assets are managed through our own expertise
and ongoing contracts with wind turbine suppliers.
This year we have carried out extensive turbine
maintenance at our oldest wind farm, Te Āpiti in Manawatū,
and at West Wind, near Wellington, to keep those assets
working well. We have also progressed design work at the
Maungahururu wind farm development option in Hawke’s
Bay. Meanwhile, at Te Uku wind farm near Raglan, we’ve
continued with work to refit and upgrade the turbine blades,
aimed at getting a 2% increase in annual production.
That project will take three or four years to complete.
A proposed new road at the Te Āpiti site will affect
coverage and access there. At this stage we’re likely to
remove one or two turbines because of this NZ Transport
Agency proposal. There will also be large civil works to up
to eight turbines that would otherwise be cut off by the new
road. That work includes underpasses, an off-highway turn-
off to get trucks to the site and joining up of existing cables.
All of this would proceed under the RMA and Public Works
Act 1981 and Meridian will be participating in designation
lodged by the Transport Agency as a result.
“ Our hydro assets were
top-quartile performers for
cost vs results achieved.”
Lakes Te Ānau and
Manapōuri receive some of
New Zealand’s highest rainfall
OF NZ’S TOTAL HYDRO STORAGE
50%
WE MANAGE
STRENGTH OF OUR ASSET MAINTENANCE
%FY14FY15FY16FY17FY18
Wind AU
25
89.395.591.092.693.4
Wind NZ95.192.888.985.483.9
Hydro90.788.493.491.390.4
25 FY14 data is just for Mt Millar only.
Meridian Integrated Report 3021
00:43

GREAT PLACE TO WORK
00:44

AT
Our ambitions for this business
make the work challenging.
Having the right people is important.
LEVEL
HUMAN
A
00:45
Meridian Integrated Report 2018

“ We offer our people leading employment
terms and conditions and great workplace
experiences, and care for their wellbeing
and safety, which help to build engagement
and reciprocal loyalty.”
GREAT PLACE TO WORK
00:46

We’re very clear about the people we need to
deliver clean energy for a fairer and healthier
world. Tomorrow’s energy environment will need
top thinkers with broad experience capable of
using their smarts and skills to make an impact.
Delivering the quality business performance that
our customers and stakeholders expect will mean
our teams are made up of people who believe in
what we are doing and are willing and able to
go the extra mile. They will be well equipped,
highly skilled and empowered to strengthen our
core capabilities. And constructive behaviours
will help us drive sustained high performance.
HOW TO BE – BEHAVIOURS THAT UNITE US.
Our
bedrock values of safety and wellbeing of our people,
caring for our customers and doing everything sustainably
remain unchanged. But to deliver clean energy for a fairer
and healthier world we need to be united in our work.
We recognise that competitive companies behave in
powerful ways, together, and we have core values and
behaviours – ‘Be Gutsy, Be a Good Human and Be in the
Waka’ – that we believe underpin our collective ability
to deliver on our purpose and strategic must-wins.
At Meridian, it’s how to be.
LEVERAGING OUR REPUTATION. By positioning
ourselves as a business that is taking tangible and
meaningful actions on the things to which we are
committed, we increase our chances of attracting people
to our ranks who will help us to succeed, lift our business
capabilities and make us more competitive overall because
those ideas resonate with them. Climate action was rated
the fourth most important goal of the 17 SDGs to achieve
by Kiwis in the most recent Colmar Brunton Better Futures
report. 73% of people surveyed said it was important
for them to work for a company that was socially and
environmentally responsible. Meridian continues to rank
among the top five companies that are top of mind for
New Zealanders as sustainable brands, and prompted
awareness of Meridian as a sustainable brand continues
to improve. For these reasons, we see sustainability
leadership as an important factor in helping us to attract
great people to work with us and achieve our goals.
The things we do internally mean a lot to our staff.
Becoming net zero carbon, electrifying our vehicle fleet,
occupying five-star standard buildings are all ways in
which we demonstrate our purpose through our actions.
DIVERSITY BY GENDER (HEADCOUNT) FOR THE GROUP
Board
Corporate
centre
ICT
Generation and
natural resources
26
The customer
team
Powershop NZ
Australia
0300
75%M
25%F
25020015010050
Female
Male
88%M
12%F
62%M
38%F
81%M
19%F
41%M
59%F
48%M
52%F
71%M
29%F
70%M
30%F
Flux
Federation NZ
27
Wholesale
35%M
65%F
76%M
24%F
Executive Team
26 Includes Dam Safety Intelligence.
27 Includes Flux-UK staff.
100%
DIVERSITY BY AGE (HEADCOUNT)
Board
Executive Team
Corporate
centre
ICT
Generation and
natural resources
28
The customer
team
Powershop NZ
Australia
0150
125100755025
Under 30
Over 50
Flux
Federation NZ
29
Wholesale
30-50
50%
50%
21%
72%
7%
7%
71%
22%
15%
49%
36%
12%
59%
29%
33%
52%
15%
52%
45%
3%
39%
59%
2%
27%
58%
15%
0%
0%
0%
28 Includes Dam Safety Intelligence.
29 Includes Flux-UK staff.
42%
FEMALEOVERALL
Meridian Integrated Report -109
00:47

OUR PARTNERSHIPS. Our partnerships with KidsCan
and the Kākāpō Recovery Programme are also an important
part of this, proving that we are a trustworthy company,
that we do more than just talk about our SDGs and
sustainability and that we have the strong environmental
and social responsibility credentials that stakeholders
(including our staff ) would expect of a sustainability leader.
We’ve been the Principal Partner of KidsCan since 2013.
In that time, our staff, customers and shareholders have
contributed more than $1.4 million to help support the work
KidsCan does in communities throughout New Zealand.
This year we have committed to a further three years of
support. Through the partnership, our people have provided
2,000 fleece-lined beanies to school children in colder
regions, helped with painting jobs and gardening at partner
schools, donated second-hand furniture, and raised extra
money through cake-baking competitions and morning teas.
Today, KidsCan is helping to feed more than 29,000 hungry
kids at more than 730 schools around the country every
week, providing shoes, socks and jackets to children who
would otherwise arrive at school wet and cold, and offering
a variety of health and hygiene items.
In 2016 we became a National Partner of the Department
of Conservation’s Kākāpō Recovery Programme.
That partnership has contributed to critical research
to help the species recover and has had a real impact
in raising awareness of the plight of these precious native
parrots. It’s not just our partners who benefit from these
programmes, our staff too find them inspiring and many
volunteer to help out in their spare time.
We’re also helping to power future champions by
sponsoring South Island Rowing and our subsidiaries have
their own ways of expressing their values. Powershop
New Zealand supports the Neonatal Trust and Flux
Federation this year sponsored a boxing match that related
to the mental health of tech employees. We encourage our
people to be part of our communities and we widen the
impacts that we all have as a company, and those actions
then inspire others to step forward and volunteer for the
greater good. In our Australian operations this year we
have introduced Volunteer Days that enable our people
to help a charity of their choice on a work day. We have
also introduced Friday Learnings, where experts on all
sorts of topics provide our people with new perspectives.
As part of our sponsorship of the North Melbourne
Australia Rules Football Club we have also offered AFL
footballers opportunities to do internships with us.
For many of our people, working with Meridian connects
them with the community and a significant number
volunteer their time outside working hours to support
not just the causes and organisations we support but
other organisations that do amazing work in communities
throughout New Zealand. One of our teams is supporting
the Kākāpo Recovery Programme on Whenua Hou/Codfish
Island by building and maintaining a micro dam so that they
have access to their own power. Others are members of the
fire service in Twizel, St John, the surf live savers at Raglan...
we look to support these activities as much as we can
because we absolutely believe that a spirit of involvement
is critical to being a meaningful corporate citizen.
CELEBRATING DIVERSITY AND INCLUSION. To the
greatest extent possible, we want our people to reflect the
markets in which we compete. We continue to look for ways
to enhance our diversity mix, as having employees with
different viewpoints, backgrounds and languages adds
to our understanding of what it takes to deliver clean
energy for a fairer and healthier world.
Meridian recently became an accredited Rainbow Tick
organisation. It is important that all of our employees
are able to be themselves, and this accreditation signals
that we are an inclusive company that welcomes and
supports the Rainbow community.
“ Meridian recently became an accredited
Rainbow Tick organisation. It is important that
all of our employees are able to be themselves
at work and this accreditation signals that we
are an inclusive company that welcomes and
supports the Rainbow community.”
GREAT PLACE TO WORK
00:48

Celebrating different cultures remains an important focus
for us and we encourage our people to grow their cultural
awareness and join events such as Diwali, Chinese New
Year, Te Wiki o te Reo Māori and Matariki, that increasingly
represent what we celebrate as a nation. A key priority for
us is to continue to train our people in tikanga and proper
pronunciation of Te Reo, because protocol and language
are key expressions of respect. To help with this we have
developed an app – ‘Te Kete’ – accessible to all employees
and their whānau on their phones.
By encouraging our people to be welcoming and open,
we also increase receptivity for new ideas. Diversity in
thinking broadens our problem-solving capabilities and
enables an innovative and highly productive culture.
In addition to encouraging people to bring their diverse
perspectives and skills to cross-functional teams, we’re
encouraging them to use design thinking to solve problems.
That appetite for innovation will be vitally important as
we begin the transfer to a new technology platform.
REBALANCING PAY AND LEADERSHIP. We’re
committed to the principle of pay equity for male and
female employees in similarly sized roles, with similar
skills, experience and accountabilities. We undertake
gender analysis every year to identify and address gaps
based on gender and have done so for the past five years
in the parent company. This gender pay analysis has now
been extended to include all subsidiary companies. We are
pleased with the progress we’re making to ensure that men
and women in comparable jobs get paid equitably, and this
year, on average, there was only a 1% disparity at parent
level, and 1.7% at Group level. (See table below). Our work
in this area was recognised through our selection as a Silver
Finalist in the YWCA Equal Pay Awards and being admitted
to the Equal Pay Best Practice Compact.
NUMBER OF PEOPLE WORKING
ACROSS THE GROUP
1,012
OF PERMANENT NZ EMPLOYEES SIGNING UP TO OUR
EMPLOYEE SHARE SCHEME, MYSHARE, THIS YEAR
50%
GROUP
30
SALARY BAND
31
GROUP % RATIO
FEMALE SALARY TO
MALE SALARY
GROUP %
FEMALE
A-B100.4%65.4%
C-D103.9%54.7%
E-F96.1%43.7%
G-H99.1%31.2%
I-J9 7.4%28.6%
K-L93.0%16.7%
Average
of average:98.30%41.8%
It’s encouraging to see our graduate and apprenticeship
programmes attracting a healthy mix of male and
female candidates, because women are currently under-
represented in technical roles. It’s something we’re keen
to correct through encouraging more women to choose
technical careers, and we support the Connexis Girls in
Hi-Vis programme, and have a partnership with TupuToa
to offer internships to young Māori and Pasifika tertiary
students from a variety of professional disciplines. Our
view is that more diversified teams, by age, ethnicity
and gender, increase the skills and energy of our
workforce and make for better and more productive
working environments. At the same time, we know that
the relatively remote locations of our generation assets
combined with low staff turnover of around 4% in this part
of the business mean we need to be patient and look for
gains in the longer term.
While we have strong female representation across the
business as a whole (42%), women are under-represented
in leadership and senior-level roles and the reorganisation
of our senior team has inadvertently added to that. In
30 We reported parent only last year.
31 K & L are our highest salary bands and A & B are our lowest.
Meridian Integrated Report 3021
00:49

2016 we set a target for increasing the number of women
in people leadership and senior specialist positions in
Meridian New Zealand to 40% by 30 June 2020. While
progress has been made since setting this objective,
in the past financial year the number of women in people
leadership and senior specialist roles has slipped slightly,
from 33.5% to 32.8%. We continue to provide gender-
balanced recruitment panels, training that supports
managers to recognise unconscious bias, targeted
development opportunities, succession plans, pay equity,
and market-leading employment provisions in an effort
to achieve greater female representation.
This year we have continued to build flexibility into our
working style. It’s already a hallmark of our culture,
but we know that if we want to attract the best people
in the market we need to provide them with a working
environment and work conditions that reflect their wider
life needs. A significant percentage of our people currently
work flexibly, and we also offer the opportunity to Meridian
and Powershop NZ employees to buy up to 12 days’ leave
for the year, recognising that work is just one aspect of
life and taking one or more well earned breaks during the
year is important to recharge the batteries. While a few
people do struggle to use their annual leave each year, for
many people, the legislated four weeks’ leave is just not
enough to manage family, leisure, volunteer, sporting and
other needs, and ‘bought leave’, along with three additional
‘Company days’ leave, provides our employees with more
options to balance busy lives.
Recently we’ve voluntarily increased our already market-
leading parental leave top-up provision from 12 weeks to
22 weeks for Meridian and Powershop NZ employees. This
aligns with the new period of government-paid parental
leave that came into effect in July 2018. We also offer
two weeks’ paid leave to secondary carers and ensure
that annual leave accrued during parental leave is paid
at the full rate. Alongside our parental leave programme,
employee insurance, our employee share ownership
plan, professional development, annual performance
reviews for all staff and on-the-job training reflect our
belief that when people feel valued and looked after,
they will join, stay and flourish, and that this combination
of skills and engagement will drive greater productivity
and competitiveness. This is reflected not only in strong
employee engagement scores, but also in the high level of
take-up in our employee share scheme – MyShare – with
50% of our permanent New Zealand employees signing up
this year. Having so many of our people taking advantage
of MyShare, owning a piece of the Company and saving for
their future is a fantastic result of which we are very proud.
KEEPING PHYSICAL AND MENTAL HEALTH TOP
OF MIND. Safety is a core value of our business and a
fundamental part of our culture. Ensuring that our people
feel their wellbeing is also supported and valued goes
hand in hand with building a safe working environment,
and in that regard mental wellbeing is as important as the
significant emphasis we place on physical and plant safety
in our working environments. Participation in events such
as Pink Shirt Day is a simple and visible way of showing that
behaviours like bullying are unacceptable work practices
that we are determined to address, and the vast majority
of our employees (86%) feel confident that they would
be supported if they raised concerns about bullying
or harassment.
Our Healthy Minds initiative is another way we are looking
to support our employees and their families to understand
mental health issues and break down the barriers when
people do need to ask for help. New Zealand statistics on
suicide are shocking, and acknowledging and addressing
the need for strong and resilient mental health are very
important to us. Healthy Minds has helped our people to
understand that different factors of our working lives affect
different people in different ways, and that recognising
signs of stress and depression and acting on them is a
positive thing to do. This comprehensive programme is
encouraging people across our business to step forward
with complete confidentiality and get the support they
need for themselves or their loved ones, and we are
tremendously encouraged by that. This initiative has the
active support of our Executive Team and will be rolled
out to remaining areas of the business in the next year.
It has been very well received, and has contributed to
a meaningful increase in the number of employees who
believe Meridian cares about their wellbeing (93%, up from
90% last year). We’re also building programmes for our
Australian business, and our Flux and Powershop teams.
WE HAVE A TARGET OF 40% FOR
WOMEN IN PEOPLE LEADERSHIP
AND SENIOR SPECIALIST
POSITIONS BY 30 JUNE 2020
22 WEEKS WILL BE OUR
NEW PARENTAL LEAVE
TOP-UP PROVISION
WE WERE A SILVER
FINALIST AT THE YWCA
EQUAL PAY AWARDS
GREAT PLACE TO WORK
00:50

ACTIVE ENGAGEMENT. A critical part of achieving a
strong culture is ensuring that our people feel listened to
and included, and that they see Meridian as a meaningful
place to work that provides them with opportunities to
build their careers. Hearing from our people and asking
them to have their say on what works well in Meridian
and what we can do better are important, so we take our
employee engagement surveys seriously.
Participation in the engagement surveys this year was
the strongest ever – with an outstanding response rate of
96% for Meridian New Zealand and 95% for the Group as a
whole. Our engagement tool changed this year, and while
results are not directly comparable to last year, we are
very pleased with our overall engagement score of 80%
for Meridian New Zealand, and 78% for the Group. These
results are close to the Global Top 10% benchmark of 84%,
and we will strive to close that gap even further.
At Meridian New Zealand, our results relating to the things
that are most important to us – our core values of safety
and wellbeing of our people, caring for our customers and
sustainability – were extremely high, with 97% agreeing
that the organisation is committed to the health and safety
of its people, 84% that we value diversity of thought across
the organisation, 93% indicating that our commitment
to social responsibility and sustainability is genuine,
and 83% agreeing that we deliver on the promises we make
to our customers.
These high-level results were reflected across the Group.
Meridian Australia had an impressive improvement in
scores relating to leadership, with +13 compared to a global
high-performing norm. Powershop New Zealand’s focus
on ensuring that employees had access to the learning
and development needed to do their jobs well resulted
in a score of 83%, up from 76% last year. And in Flux
Federation, which has just turned one year old, the stand-
out results were inclusion (97%) and wellbeing (94%).
Our low levels of absenteeism and staff churn, coupled
with these high levels of engagement, point to us having
put effort into the right areas. However, we remain
committed to lifting our engagement results by building
our understanding and reflecting on what is going to make
the most difference for our people.
FY16
87%
87.3%
FY17
83.4%
87.4%
81.6%
80%
73%
78%
64%
EMPLOYEE ENGAGEMENT
32
0
FY18
100
Meridian
Powershop NZ
Australia
908070605040302010
FY15
82.9%
86.1%
FY14
77.9%
83.2%
Flux
Group
89%
88%
88%
91%
NZ Top 25%
Global Engagement 75
th
Percentile
86%
84%
32 Measured by ‘level of agreement’ – the percentage of staff who ‘agree’
or ‘strongly agree’ with the six questions that collectively determine our
Engagement Index (previously calculated as a weighted mean, FY14 to
FY16 values have been restated using the new methodology).
“ A critical part of achieving a strong culture
is ensuring that our people see Meridian as
a meaningful place to build their careers.”
Meridian Integrated Report 2018
00:51

FROM LEFT TO RIGHT
STEPHEN REINDLER DIRECTOR
MEG MATTHEWS FUTURE DIRECTOR
MARK CAIRNS DIRECTOR
MARK VERBIEST DIRECTOR
CHRIS MOLLER CHAIR
JAN DAWSON DIRECTOR
MARY DEVINE DIRECTOR
PETER WILSON DEPUTY CHAIR
ANAKE GOODALL DIRECTOR
“ As a business with a significant retail
shareholder base, we regularly look for
ways to be as accessible and open as
possible. We engage with investors and
the Crown through reports like this, our
disclosures to the markets, and meetings
and briefings with a range of groups.”
CHRIS MOLLER CHAIR
00:52
OUR BOARD

KEEPING
US ON
COURSE
00:53
Meridian Integrated Report 2018

FROM LEFT TO RIGHT
MIKE ROAN GENERAL MANAGER, WHOLESALE
JASON STEIN GENERAL COUNSEL AND COMPANY SECRETARY
NEAL BARCLAY CHIEF EXECUTIVE
ED MCMANUS CHIEF EXECUTIVE, MERIDIAN ENERGY AUSTRALIA PTY LTD AND POWERSHOP AUSTRALIA PTY LTD
JACQUI CLELAND GENERAL MANAGER, HUMAN RESOURCES
PAUL CHAMBERS CHIEF FINANCIAL OFFICER
GUY WAIPARA GENERAL MANAGER, GENERATION AND NATURAL RESOURCES
JULIAN SMITH CHIEF CUSTOMER OFFICER
00:54
OUR EXECUTIVE TEAM

GREAT
TEAMS
HAVE
CONFIDENT
LEADERS
NEAL BARCLAY CHIEF EXECUTIVE
“ I am highly confident
that the evolution of
our management team
will support Meridian
to continue to deliver
value for its customers,
its communities and
its shareholders.”
00:55
Meridian Integrated Report 2018

00:56
REMUNERATION REPORT

OUR APPROACH TO REMUNERATING OUR PEOPLE
Attracting, retaining and motivating talented people across the business,
and rewarding them for delivering desired business performance and
long-term shareholder value, is key to Meridian’s success.
Our remuneration philosophy is guided by the principles
that remuneration will:
• be clearly aligned with our company values, culture
and strategy
• support us to attract, retain and engage employees
• be fair, equitable and flexible
• appropriately reflect market conditions and the
organisational context
• recognise and reward high performance
• align with creating shareholder value.
The Remuneration and Human Resources Committee
regularly reviews remuneration policy and practice, with
the Board approving executive individual performance
objectives and company financial performance targets and
outcomes on an annual basis.
Fixed remuneration is benchmarked to market and
permanent employees may participate in a short-term
incentive (STI) scheme at the discretion and invitation of
the Board. A range of cash and non-cash benefits is offered
(for example employee insurance, enhanced parental leave
provisions, the ability to purchase additional leave, and
access to purchasing discounts). The Executive Team and
CE also have the opportunity to participate in a long-term
incentive (LTI) plan. Both the STI scheme and LTI plan
are variable, performance-based incentives and are only
awarded if specific financial and non-financial performance
hurdles are met, and at the discretion of the Board.
FIXED REMUNERATION. Fixed remuneration consists
of base salary and matched KiwiSaver contributions up to
a maximum of 4%. Salaries are reviewed annually against
external market data.
SHORT-TERM INCENTIVE (STI). The STI is an at-risk
incentive, which may be offered for a specific year, by
invitation from the Board. Potential STI payments reflect
the achievement of predetermined company profit levels
and individual performance objectives aligned to business
strategy and goals, and are wholly discretionary. An STI
may be paid subject to a behaviour gate and company
financial performance hurdles, and at the discretion of
the Board. Sales employees are rewarded based on their
achievement of sales targets.
For Executive Team roles, the percentage value of the STIs
as part of their total remuneration reflects the complexity
and level of the roles and is set at 30% of their base
salaries. For the CE, the percentage value is 40%.
LONG-TERM INCENTIVE (LTI). An LTI plan is offered,
at the discretion of the Board, to the New Zealand
Executive Team to incentivise and reward key executives,
align executives’ and shareholders’ interests, and optimise
long-term shareholder returns.
The percentage value of the LTI is 30% of base salary for
executive management, and 40% of base salary for the CE.
Vesting of the LTI is contingent on the individual meeting
both absolute and relative TSR performance hurdles at the
conclusion of a three-year period. Further details of the LTI
plan are provided on page 112.
EMPLOYEE SHARE OWNERSHIP. Employees can
also choose to join Meridian’s employee share ownership
plan, MyShare. Under MyShare, employees may
purchase Meridian shares via monthly pay deductions of
between $500 and $5,000 per annum. After three years,
participants may be eligible for award shares subject
to ongoing employment (Tenure Award Shares) and the
company TSR outperforming those of a peer group of
competitors (Performance Award Shares). In FY18, 49% of
employees participated in MyShare, and this has increased
to 50% in FY19.
REMUNERATION
REPORT
00:57
Meridian Integrated Report 2018

EMPLOYEE REMUNERATION
RANGE. The number of
employees and former
employees of Meridian and
its subsidiaries (not including
directors) who during FY18
received cash remuneration and
other benefits (including at-risk
performance incentives, KiwiSaver
contributions and redundancy
compensation) exceeding
$100,000 is outlined opposite:
REMUNERATION BAND
NUMBER OF
EMPLOYEES
$100,000-109,99954
$110,000-119,99958
$120,000-129,99961
$130,000-139,99940
$140,000-149,99933
$150,000-159,99932
$160,000-169,99915
$170,000-179,99916
$180,000-189,99911
$190,000-199,9997
$200,000- 209,9997
$210,000-219,9999
$220,000-229,9998
$230,000-239,9997
$240,000-249,9993
$250,000-259,9991
$260,000-269,9994
$270,000-279,9994
$280,000-289,9991
$290,000-299,9992
$310,000-319,9993
$320,000-329,9994
$330,000-339,9992
$370,000-379,9991
$400,000-409,9991
$510,000-519,9991
$590,000-599,9991
$600,000-609,9991
$620,000-629,9991
$630,000-639,9991
$700,000-709,0001
$750,000-759,9991
$770,000-779,9991
$990,000-999,9991
$1,160,000-1,169,9991
$1,190,000-1,199,9991
395
33
33 This includes 31 employees who are no
longer employed by Meridian Energy
Limited and its subsidiaries.
CHIEF EXECUTIVE REMUNERATION.
During FY18 Meridian’s previous CE, Mr Mark
Binns, who resigned on 31 December 2017, was
succeeded by Mr Neal Barclay from 1 January
2018. The remuneration for both Mr Binns and
Mr Barclay consists of fixed remuneration,
an STI and an LTI, plus access to the benefits
available to employees. The STI and LTI are
at-risk incentives, as any payment depends
on predetermined performance hurdles
being met, and are offered and awarded
at the Board’s discretion. CE remuneration
is reviewed by the Board annually, based
on company and individual performance,
external market data and independent
remuneration advice.
The performance hurdles for the STI, which
are set by the Board at the start of each
financial year, are company financial
performance (weighted at 60%) and individual
non-financial performance targets (weighted
at 40%). In FY18 non-financial performance
measures for both Mr Binns and Mr Barclay
reflected business priorities and included
objectives relating to health and safety,
employee engagement, customer sales and
service, the effective management of key
generation, regulatory and industry matters,
Meridian’s Australian business performance
and sustainability. Each objective had clearly
defined targets and levels of achievement
set by the Board at the beginning of the
performance period.
The LTI is contingent on meeting absolute and
relative TSR performance hurdles at the end
of a three-year vesting period. It is designed
to ensure CE remuneration is aligned with
financial outcomes for shareholders in the
longer term.
00:58
REMUNERATION REPORT

CHIEF EXECUTIVE REMUNERATION FOR PERFORMANCE PERIOD ENDING 30 JUNE 2018
PAY FOR PERFORMANCE
YEAR
BASE
SALARY
TA X ABLE
BENEFITS
34
FIXED
REMUNERATION
35
MYSHARESTI
36
LTI
37
SUBTOTAL
TOTAL
REMUNERATION
FY18 Neal Barclay
(Actual remuneration for
period 1 Jan -30 Jun 2018)
$475,000$19,000$494,000$2,500$ 16 7,9 2 0$24 4,023$411,943$908,443
FY18 Mark Binns
(Actual remuneration for
period 1 July -31 Dec 2017)
$645,545$25,822$671,367$1,7 74$216,999$357,901$574,900$1,248,041
Notes:
In relation to Mr Barclay:
• Fixed remuneration is for the 6 month period from
1 January 2018 to 30 June 2018 (full year base salary
is $950,000);
• MyShare represents $2,500 award shares relating to
participation in the FY16 MyShare plan;
• The STI figure relates to performance by Mr Barclay
for the 6 months from 1 January to 30 June 2018 as CE.
Mr Barclay also received an amount of $70,576 for the
6 months from 1 July 2017 to 31 December 2017 which
related to the period he was General Manager Retail.
• The LTI figure is the payment of amounts relating to
the full vesting of the FY16 LTI scheme when Mr Barclay
was in a previous management role.
In relation to Mr Binns:
• All remuneration figures (including Pay for
Performance) reflect a 6 month period only
to 31 December 2017.
• MyShare represents $1,774 award payment
relating to participation in the FY16, FY17 and
FY18 MyShare plans.
• The LTI figure is a 50% payment of amounts
relating to the full vesting of the FY16 LTI scheme.
CHIEF EXECUTIVE REMUNERATION FOR PERFORMANCE PERIOD ENDING 30 JUNE 2017
YEAR
BASE
SALARY
TA X ABLE
BENEFITS
FIXED
REMUNERATIONMYSHARE
PAY FOR
PERFORMANCE
TOTAL
REMUNERATION
FY17 Mark Binns$1,175,912$ 47,0 3 6$1,222,948$2,500$ 4 5 7,6 76$696,644$1,154,320$2,379,768
FIVE-YEAR REMUNERATION SUMMARY
YEAR
SINGLE
FIGURE REM
% STI
AGAINST MAXIMUM
38
% VESTED LTIS
AGAINST MAXIMUM
39
SPAN OF LTI
PERFORMANCE PERIOD
FY18 Neal Barclay$908,44372.00%100%FY16-FY18
FY18 Mark Binns$1,248,04173.7 1%50% FY16-FY18
FY17$2,379,76879.29%100%FY15-FY17
FY16$2,370,55686.34%100%FY14-FY16
FY15$1,909,12182.93%n/a
FY14 $1,912,7348 7.6 1%n/a
FY13$1,753,960 89.72%n/a
34 Taxable benefits include 4% company KiwiSaver contributions
on base salary.
35 Fixed remuneration includes base salary plus KiwiSaver contributions.
36 STI relates to potential payment based on performance achieved for the
applicable period and includes 4% company KiwiSaver contributions.
37 LTI is grossed up for PAYE and includes 4% company
KiwiSaver contributions.
38 The STI percentage figure for Neal Barclay and Mark Binns in FY18 each
reflect the percentage for the relevant 6 month period each were CE.
These are not full year percentage amounts.
39 The LTI plan was introduced in FY14 and the first plan vested in FY16.
Prior to that no LTI was offered. Mark Binns’ figure in FY18 of 50%
reflects the 6 months as CE in FY18.
00:59
Meridian Integrated Report 2018

BREAKDOWN OF CHIEF EXECUTIVE PAY FOR PERFORMANCE (FY18)
DESCRIPTIONPERFORMANCE MEASURES% ACHIEVED
STISet at 40% of base
salary. Combination of
company and individual
performance objectives
(both financial and
non-financial)
60% weighting company performance (company profit, which comprises
Group EBITDAF minus capital charge). The company must achieve at least
50% of the profit gate target before any STI is payable.
88.3%
40% weighting individual performance against Board-determined
financial and non-financial objectives. A further performance hurdle
applies in that the company must achieve at least 85% of the profit gate
target before the individual performance component of the STI is payable.
80% Neal Barclay
85% Mark Binns
(Mr Binns’ STI
payment prorated
for 6 months’ service)
LTIConditional awards
of shares under LTI plan.
Set at 40% of base salary
Absolute TSR over the relevant assessment period:
must be positive; and > 50th percentile/median TSR of the peer group
40
.
Hurdle met
Relative TSR—if positive and:
> 50th percentile TSR of peer group, at least 50% vests
≥ 75th percentile TSR, 100% vests
between the 50th and 75th percentile TSRs of peer group, progressively
vests on a straight-line basis.
100%
FIVE-YEAR SUMMARY – TOTAL SHAREHOLDER
RETURN PERFORMANCE (MERIDIAN ENERGY VS
PEER GROUP
40
). The TSR summary opposite illustrates
the performance of Meridian’s shares against a peer group
of companies between 30 June 2014 and 30 June 2018.
TSR performance outcomes are independently validated by
external experts.
KIWISAVER. As a member of KiwiSaver, the CE is entitled
to receive a matching employer contribution of 4% of
gross taxable earnings (including both the STI and the LTI).
In FY18 the company’s KiwiSaver contributions were
$34,843 for Neal Barclay and $47,933 for Mark Binns.
CHIEF EXECUTIVE REMUNERATION PERFORMANCE
PAY FOR FY18.
The scenario chart opposite depicts
the CE remuneration design proportions for the current
CE, Neal Barclay, for the year ended 30 June 2018, as a
proportion of total remuneration. All figures have been
extrapolated out to reflect the full financial year.
Fixed remuneration reflects the base salary plus KiwiSaver
contributions. As a percentage of fixed remuneration, for
performance that ‘meets expectations’, the STI component
would pay out at 36% of fixed remuneration and the LTI
component at 30% of fixed remuneration. At ‘maximum’,
for performance that exceeds expectations, the STI
component would pay out at 47% of fixed remuneration,
and the LTI component at 60%.
14%
0
ANNUAL TOTAL SHAREHOLDER RETURN
FY18
FY15
FY17
FY16
40302010
Meridian
Peer group median
0
Fixed
Remuneration
Maximum
2,5001,5001,000500
Fixed RemunerationAnnual Variable
2,000000’s
Meets
Expectations
FY14
LTI
23%29%
22%18%
%
17%
31%
33%
19%
100%
60%
48%
8%
18%
11%
9%
4%
14%
0
ANNUAL TOTAL SHAREHOLDER RETURN
FY18
FY15
FY17
FY16
40302010
MeridianPeer group median
0
Fixed
Remuneration
Maximum
2,5001,5001,000500
Fixed Remuneration
Annual Variable
2,000000’s
Meets
Expectations
FY14
LTI
23%29%
22%18%
%
17%
31%
33%
19%
100%
60%
48%
8%
18%
11%
9%
4%
40 Peer group comprises AGL Energy, Contact Energy, Mercury NZ, Trustpower, and Genesis Energy.
00:60
REMUNERATION REPORT

APPROVED DIRECTOR REMUNERATION FOR FY18.
Director remuneration is paid from the total director fee
pool that was approved by shareholders at the Annual
Shareholder Meeting of 28 October 2016. At that time
shareholders gave their approval to the total annual
director fee pool increasing over two years.
SHAREHOLDER APPROVED ANNUAL
DIRECTOR FEE POOL
FY17FY18
Board fees$909,500$1,000,000
Committee fees$85,000$100,000
Total pool$994,500$1,100,000
INDIVIDUAL BOARD-APPROVED ANNUAL FEE BREAKDOWN
POSITION HELDFY17FY18
Chair$182,500$200,000
Deputy Chair$127,000$140,000
Director$100,000$110,000
Audit & Risk Committee Chair$18,200$22,500
Audit & Risk Committee member$9,100$10,000
Safety & Sustainability Committee Chair$15,000$15,000
Safety & Sustainability Committee member $6,200$9,200
Remuneration & Human Resources Committee Chair $15,000$15,000
Remuneration & Human Resources Committee member $6,200$9,100
DIRECTOR REMUNERATION RECEIVED IN FY18
NAME OF DIRECTORBOARD FEES
AUDIT &
RISK
COMMITTEE
REMUNERATION
& HUMAN
RESOURCES
COMMITTEE
SAFETY &
SUSTAINABILITY
COMMITTEE
TOTAL
REMUNERATION
Chris Moller
41
(Chair)$200,000 ---$200,000
Peter Wilson (Deputy Chair)$140,000$10,000-$9,200$159,200
Mark Cairns$110,000$10,000--$120,000
Jan Dawson$110,000
$22,500
(Chair)
--$132,500
Mary Devine$110,000-
$15,000
(Chair)
-$125,000
Anake Goodall$110,000-$9,200$119,200
Stephen Reindler$110,000--
$15,000
(Chair)
$125,000
Mark Verbiest$110,000-$9,100-$119,100
Total$1,000,000$42,500$24,100$33,400$1,100,000
Directors are reimbursed for all reasonable and properly documented expenses incurred in performing their duties as
Meridian directors. No additional payments or benefits were received by directors in FY18.
41 Chris Moller does not receive additional fees for committee membership.
00:61
Meridian Integrated Report 2018

Remuneration paid to non-executive directors in their capacity as directors of subsidiaries of Meridian during the year
ended 30 June 2018 was:
NAME OF DIRECTORSUBSIDIARYFEES
John Journee (independent)Flux Federation Limited$50,000
Nicola Kennedy (independent)Flux Federation Limited$45,000
Meridian employees appointed as directors of Meridian subsidiaries do not receive any directorship fees.
MERIDIAN GROUP WORKFORCE
NEW ZEALAND
42
AUSTRALIA
43
FEMALEMALEFEMALEMALETOTAL
Permanent employees
Permanent full time
44
363 513 19 45 940
Permanent part time 16 1 1 1 19
Temp/Fixed term employees
Temp/fixed term full time 10 19 – – 29
Temp/fixed term part time 14 9 – 1 24
Total 403 542 20 47 1,012
GENDER REPRESENTATION ACROSS THE MERIDIAN GROUPFY18
Female share of total workforce (%)41.8%
Females in management positions (as % of total management workforce)33.6%
Females in junior management positions, i.e. first level of management
(as % of total junior management positions)36.3%
Females in top management positions, i.e. maximum two levels away from the CEO or comparable positions
(as a % of total top management positions)30.7%
Females in management positions in revenue-generating functions (e.g. sales) as a % of all such managers
(i.e. excluding support functions such as HR, IT, Legal, etc.)29.4%
42 141 of these employees work for Powershop New Zealand. 131 of these employees work for Flux Federation New Zealand.
43 16.42% of these staff are covered by collective bargaining agreements.
44 5 of these employees are based in the UK (1 woman and 4 men).
00:62
REMUNERATION REPORT

VALUE FOR OUR SHAREHOLDERS
FIVE-YEAR PERFORMANCE
45

Financial year ended 30 June
GROUP
PERFORMANCE
SUMMARY
EBITDAF
200
400
600
800
20142015201620172018
585
618
657
666
650
0
$M
CASH FLOW FROM
OPERATING ACTIVITIES
200
300
400
500
20142015201620172018
433
440
470
427
452
0
$M
100
NET PROFIT AFTER TAX (NPAT)
200
250
300
20142015201620172018
230
247
200
201
185
0
$M
100
150
50
DIVIDENDS DECLARED
10
15
20
201620172018
0
$M
Ordinary
dividends
Special
dividends
5
18.23
5.35
13.01
2.00
18.38
4.88
18.91
4.88
19.20
4.88
14.32
20152014
14.03
13.50
12.88
11.01
UNDERLYING NPAT
100
150
200
250
20142015201620172018
195
209
221
206
233
0
$M
50
TOTAL SHAREHOLDER RETURN (TSR)
10
20
30
40
0
%201620172018
19%
33%
31%
14%
20152014
17%
Meridian
Peer group median
45 Financial years ended 30 June 2014-2016 as reported. 2017-2018 include effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers.
Meridian Integrated Report 2018
00:63

DIVIDEND DECLARED
19.20cps
UNDERLYING NPAT
$
206m
NZ ENERGY MARGIN
$
944m
AUS ENERGY
MARGIN
$
86m
EBITDAF
$666M
FINANCIAL SNAPSHOT
NPAT
$
201m
OPERATING COSTS
$
259m
TRANSMISSION COSTS
$
127m
OPERATING CASH FLOW
$
427m
00:64
GROUP PERFORMANCE SUMMARY

0.0Times
NET DEBT/EBITDAF
Financial year ended 30 June
2018
2015
2017
2016
2.51.51.00.5
2.3
1.8
1.9
1.7
2.0
1.8
2014
46 Financial year ended 30 June 2018.
47 Financial year ended 30 June 2017.
OVERVIEW
From a half-year position where EBITDAF
was 7% lower than last year, Meridian
saw improved second-half inflows,
which helped to support a full-year EBITDAF
result 1.4% above last year. Our operations
in Australia continued to deliver growth,
with EBITDAF 22% higher than last year.
This represents the highest level of Group
EBITDAF Meridian has delivered and is the
sixth successive year of EBITDAF growth.
Resilient cash flows have enabled dividend
growth, with the company declaring a final
dividend 3% higher than last year’s.
DIVIDENDS DECLARED
CENTS PER SHARE
ORDINARY
DIVIDENDS
CAPITAL
MANAGEMENT
SPECIAL DIVIDENDS
OTHER
SPECIAL
DIVIDENDSTOTAL
Financial year
ended 30 June
201814.324.8819.20
201714.034.8818.91
201613.504.8818.38
201512.882.442.9118.23
201411.012.0013.01
Meridian has also declared a final special dividend of 2.44 cents per
share ($62.5 million) under the company’s five-year capital management
programme to return $625 million to shareholders.
This brings the capital management special dividend declared in FY18
46

to 4.88 cents per share, with $437.5 million now distributed since the
capital management programme commenced in August 2015.
Total dividends declared for FY18 were 19.20 cents per share,
1.5% higher than FY17
47
, and total dividends have grown every year
since Meridian’s listing in 2013.
Total dividends paid during the year were 18.96
cents per share, which combined with the 7%
increase share price during FY18 amounted to
a TSR of 14% in the year to 30 June 2018.
Meridian’s balance sheet remains in a strong
position, with the company credit metrics
below the bounds used by rating agency
Standard & Poor’s.
Meridian Integrated Report 2018
00:65

CASH FLOWS
Operating cash flows were $427 million in
FY18, $43 million (9%) lower than last year,
mainly due to the timing of cash earnings
recognised in cash flows.
Total capital expenditure in FY18 was
$235 million and included the acquisition
of GSP Energy (the Hume, Burrinjuck and
Keepit power stations). $47 million of total
capital expenditure will stay in business
capital expenditure.
GROUP CASH FLOWS
200
400
600
800
49
0
-200
-400
-600
-800
Operating
Financing
Investing
20142015201620172018
-103
-38
-207
-22
$M
600
640
$M
680
800
720
EBITDAF
30 June
2017
657
Retail
contracted
sales
Wholesale
contracted
sales
Net VAS
position
Net cost of
acquired
generation
+45
Net spot
exposed
revenue
-132
Other
market
costs
+1
AUS energy
margin
+12
Other
revenue
+3
Transmission
expenses
Employee
and other
operating
expenses
-13
EBITDAF
30 June
2018
666
NEW ZEALAND ENERGY MARGIN +$4M
MOVEMENT IN EBITDAF
+81
-6
760
+3
+15
EARNINGS
EBITDAF was $666 million in FY18, $9 million (1.4%) higher than last year.
00:66
GROUP PERFORMANCE SUMMARY

NEW ZEALAND ENERGY MARGIN
Energy margin is a measure of the combined financial performance of Meridian’s retail and wholesale businesses.
2018
$M
2017
$M
Retail contracted sales
revenue
Revenue received from sales to retail customers net of distribution costs
(fees to distribution network companies that cover the costs of distribution of
electricity to customers)
629614
Wholesale contracted
sales revenue
Sales to large industrial customers and fixed price revenue from derivatives
sold
435354
Spot exposed revenue
Revenue from the volume of electricity that Meridian generates that is in excess
of the volume required to cover contracted customer sales
(155)(23)
Net cost of acquired
generation
The cost of derivatives acquired to supplement generation and manage spot
price risks, net of spot revenue received for generation acquired from those
derivatives
41(4)
Net VAS revenue
The net revenue position of virtual asset swaps (VAS) with Genesis Energy and
Mercury New Zealand
(2)4
Other
Other associated market revenue and costs, including EA levies and ancillary
generation revenue such as frequency keeping
(4)(5)
Total944940
New Zealand energy margin was $944 million in FY18,
$4 million (0.4%) higher than last year, with retail
contracted sales revenue $15 million (2%) higher.
With a 5% increase in Meridian’s New Zealand customer
numbers during FY18, retail sales volumes were also
4% higher. This reflected a 3% increase in residential,
small and medium business and agri sales volumes
and a 7% increase in corporate sales volumes.
The overall average residential, small and medium business
and agri sales price decreased 1%, while the average
corporate sales price decreased 3%.
Wholesale contracted sales revenue was $81 million (23%)
higher in FY18 than last year. Wholesale derivative sales
volumes were 43% higher at higher average prices than last
year. Sales volumes to the NZAS were consistent at a higher
average price than last year.
700
$M
1,000
1,400
1,200
Acquired
generation
spot revenue
+99
Net VAS
position
-6
NEW ZEALAND ENERGY MARGIN
940
Energy margin
30 June
2017
Wholesale
contracted
sales
+81
Meridian
generation
spot revenue
+355
-487
Cost to supply
contracted
sales
Cost of
acquired
generation
-53
Energy margin
30 June
2018
944
900
1,100
1,300
Retail
contracted
sales (net)
+15
Future
contract
close outs
-1
800
Other
market
costs
+1
Meridian Integrated Report 2018
00:67

The net cost of acquired generation was $45 million lower
in FY18 from a lower average net price, partly offset by
higher acquired generation volumes (42%) compared to
l a s t ye ar.
Spot exposed revenue was $132 million lower in FY18. While
inflows were near average for the year, the timing of those
inflows with dry periods in the first half of the year meant
generation volumes were 6% lower than the same period
last year. Average generation prices were 62% lower than
the same period last year. While overall generation revenue
was 52% higher than last year, the higher wholesale market
prices in FY18 meant Meridian paid higher average prices
to supply contracted sales, 57% higher than last year.
Purchase volumes were 8% higher than last year and the
higher overall cost to supply contracted sales in FY18 (69%
higher than the same period last year) more than offset
higher generation revenue.
0
NEW ZEALAND GENERATION
FY18
FY15
FY14
FY17
FY16
15,000
12,528
13,315
13,707
13,332
13,148
Hydro
Wind
10,0005,000GWh
AUSTRALIAN
ENERGY MARGIN +$12M
+24
36
010309040
EBITDAF
30 June 2017
Contracted
sales
Generation
spot revenue
Cost to supply
contracted sales
Other
revenue
Operating
expenses
EBITDAF
30 June 2018
+27
-39
+1
-5
44
MOVEMENT IN AUSTRALIA EBITDAF
$M5080706020
AUSTRALIAN ENERGY MARGIN. Australian energy
margin was $12 million (16%) higher than last year.
Powershop Australia’s retail sales volumes (549GWh in
total) were 56GWh (11%) higher than last year despite
largely flat customer numbers. To support future customer
growth in Australia, significant focus has gone into new
generation options with the acquisition of three hydro
stations and several Power Purchase Agreements.
With the inclusion of some seasonal generation from those
hydro stations and higher wind generation, total generation
in Australia was 14% higher than last year.
00:68
GROUP PERFORMANCE SUMMARY

TRANSMISSION AND OPERATING COSTS.
Transmission costs were $127 million in FY18, $3 million
lower than last year, from lower Transpower charges on
the New Zealand inter-island electricity transmission link.
Employee and other operating costs were $259 million
in FY18, $13 million (5%) higher than last year, reflecting
ongoing growth investment supporting expansion of
the Powershop Australia, UK and Flux businesses and
continued customer acquisition pressure from the highly
competitive New Zealand market.
In addition Meridian has been undertaking refurbishment
work at the Ōhau hydro stations and Te Āpiti wind farm and
transformer replacements at the Manapōuri power station.
NET PROFIT AFTER TAX. NPAT was $201 million in FY18,
$1 million (0.5%) higher than the same period last year.
Depreciation and amortisation was $268 million in
FY18, $4 million (2%) higher than last year, reflecting a
$199 million net revaluation increase in generation and
plant asset values from June 2017.
Meridian recognised $2 million of impairments related
to the Central Wind wind farm consent as the company
is not pursuing development under the exiting consent.
This compares with $10 million of impairments recognised
in FY17, largely related to the decisions not to pursue the
Poutō and Hurunui wind farm developments.
Meridian recognised a $7 million gain on the sale in FY18,
compared to a $4 million loss in FY17. Both years’ disposals
related to the sale of surplus land holdings.
Fair value movements in electricity hedges reduced net
profit before tax by $23 million in FY18, compared to a
$76 million reduction last year, reflecting changes in
forward electricity prices.
Fair value movements in treasury instruments decreased
net profit before tax by $3 million in FY18, compared
to a $55 million increase last year.
These fair value movements relate to non-cash changes
in the carrying value of derivative instruments and are
influenced by changes in forward prices and rates on these
derivative instruments.
Forward interest rate curves increased during FY18,
affecting the fair value of treasury instruments.
Net financing costs were $4 million (5%) higher than the
same period last year. Meridian has maintained its BBB+
(stable outlook) credit rating from Standard & Poor’s.
Tax expense was $95 million in FY18, $14 million (17%)
higher than last year, and included stamp duty paid on
the acquisition of GSP Energy Limited.
After removing the impact of fair value movements
and other one-off or infrequently occurring events,
Meridian’s underlying NPAT (reconciliation on page 70)
was $206 million in FY18. This was $15 million (7%)
lower than last year, largely reflecting higher income
tax expense, depreciation and amortisation.
Meridian Integrated Report 2018
00:69

SUMMARY GROUP INCOME STATEMENT
Financial year ended 30 June
48
2018
$M
2017
$M
2016
$M
2015
$M
2014
$M
New Zealand energy margin944940941900891
Australia energy margin8674685433
Other revenue2219172527
Energy transmission expense(127)(130)(128)(123)(129)
Employee and other operating expenses(259)(246)(248)(238)(237)
EBITDAF666657650618585
Depreciation and amortisation(268)(264)(236)(239)(220)
Impairment of assets(2)(10)4(38)-
Gain/(loss) on sale of assets7(4)(1)197
Net change in fair value of electricity and other hedges(23)(76)(15)(1)(9)
Net finance costs(81)(77)(78)(78)(73)
Net change in fair value of treasury instruments(3)55(68)(32)27
Net profit before tax296281256249317
Ta x expense(95)(81)(71)(2)(87)
Net profit after tax201200185247230
UNDERLYING NPAT RECONCILIATION
Financial year ended 30 June
2018
$M
2017
$M
2016
$M
2015
$M
2014
$M
Net profit after tax201200185247230
Underlying adjustments
Hedging instruments
Net change in fair value of electricity and other hedges23761519
Net change in fair value of treasury instruments3(55)6832(27)
Premiums paid on electricity options net of interest(13)(12)(12)(15)(20)
Assets
Gain/(loss) on sale of assets(7)41(19)(7)
Impairment of assets210(4)38-
Total adjustments before tax8236837(45)
Taxation
Tax effect of above adjustments(3)(2)(20)(13)10
Release of capital gains tax provision---(28)-
Tax depreciation on powerhouse structures---(34)-
Underlying net profit after tax206221233209195
48 Financial years ended 30 June 2014-2016 as reported. 2017-2018 include effects from the adoption of NZIFRS15 Revenue from contracts with customers.
00:70
GROUP PERFORMANCE SUMMARY

FURTHER
DISCLOSURES
REQUIRED BY NZX LISTING RULES, THE COMPANIES ACT 1993
AND OTHER LEGISLATION, RULES OR DISCLOSURE REGIMES
MERIDIAN ENERGY.
The table below outlines changes among the people who held office as directors of
Meridian Energy Limited.
COMPANY NAMEDIRECTORS
Meridian Energy Limited
Mark Cairns, Jan Dawson, Mary Devine, Anake Goodall, Chris Moller, Steve Reindler,
Peter Wilson, Mark Verbiest
CURRENT BOARD AND EXECUTIVE TEAM GENDER COMPOSITION. In accordance with NZX’s listing rule
requirements, the gender make-up of Meridian’s directors and officers as at 30 June 2018 is:
AS AT 30 JUNE 2018AS AT 30 JUNE 2017
FEMALEMALEFEMALEMALE
Number of directors2626
Percentage of directors25%75%25%75%
Number of officers1726
Percentage of officers12.5%8 7. 5%25%75%
For Meridian’s full Corporate Governance Statement, please refer to our website: meridianenergy.co.nz/investors/governance/policies.
00:71
Meridian Integrated Report 2018

MERIDIAN SUBSIDIARIES. The following tables list the subsidiaries of Meridian Energy Limited during the accounting
period, and any changes to those subsidiaries and among the people who held office as directors. Alternate directors are
indicated with an (A).
New Zealand subsidiaries
COMPANY NAMEDIRECTORS
Dam Safety Intelligence LimitedMark Binns (ceased 7 December 2017), Neal Barclay (appointed 7 December 2017), Jason Stein
Flux Federation LimitedMark Binns (ceased 1 July 2017), John Journee (appointed 1 July 2017, ceased 17 May 2018),
Paul Chambers, Nicola Kennedy (appointed 1 July 2017), Catherine Reynolds (Gould)
(appointed 31 May 2018), Jason Stein (appointed 31 May 2018), Gillian Blythe (A)
Meridian Energy
Captive Insurance
Mark Binns (ceased 7 December 2017), Neal Barclay (appointed 7 December 2017),
Paul Chambers, Jason Stein (A)
Meridian Energy
International Limited
Mark Binns (ceased 7 December 2017), Neal Barclay (appointed 7 December 2017),
Paul Chambers, Jason Stein (A)
Meridian LimitedMark Binns (ceased 7 December 2017), Neal Barclay (appointed 7 December 2017),
Paul Chambers, Jason Stein (A)
Meridian LTI Trustee LimitedMary Devine, Anake Goodall
Powershop New Zealand LimitedJohn Journee (ceased 1 July 2017), Nicola Kennedy (ceased 1 July 2017),
Mark Binns (ceased 7 December 2017), Neal Barclay (appointed 7 December 2017),
Paul Chambers, Gillian Blythe (A) (ceased 17 July 2017)
Three River Holdings
No. 1 Limited
Mark Binns (ceased 7 December 2017), Neal Barclay (appointed 7 December 2017),
Paul Chambers, Jason Stein (A), Kelvin Mason (A)
Three River Holdings
No. 2 Limited
Mark Binns (ceased 7 December 2017), Neal Barclay (appointed 7 December 2017),
Paul Chambers, Jason Stein (A), Kelvin Mason (A)
Australian subsidiaries
COMPANY NAMEDIRECTORSFURTHER INFORMATION
Meridian Australia Holdings
Pty Limited
Mark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Meridian Energy Australia
Pty Limited
Mark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Meridian Energy Markets
Pty Limited
Mark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Meridian Finco Pty LimitedMark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Meridian Wind Australia
Holdings Pty Limited
Mark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Meridian Wind Monaro Range
Holdings Pty Limited
Mark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Meridian Wind Monaro Range
Pty Limited
Mark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Mt Millar Wind Farm Pty LimitedMark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Mt Mercer Wind Farm Pty LimitedMark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
Powershop Australia Pty LimitedMark Binns (ceased 7 December 2017), Neal Barclay
(appointed 7 December 2017), Paul Chambers, Ed McManus
GSP Energy Pty LimitedNeal Barclay, Paul Chambers, Ed McManus
(appointed 29 March 2018 upon ownership commencing)
Purchased 29 March 2018
00:72
FURTHER DISCLOSURES

UK subsidiary
COMPANY NAMEDIRECTORSFURTHER INFORMATION
Flux-UK LimitedMark Binns (ceased 7 December 2017), Neal Barclay (appointed 7
December 2017), Paul Chambers, Ari Sargent, Jim Barrett
Name change from Powershop
UK Limited 4 June 2018
PARTICULARS OF ENTRIES IN THE INTERESTS REGISTER MADE DURING THE ACCOUNTING PERIOD.
Shareholders can review Meridian Energy Limited’s full interests register on request.
In accordance with sections 140 and 211(e) of the Companies Act 1993, the table below lists the general disclosures of
interest by directors of Meridian Energy Limited and its subsidiaries.
NAMEPOSITIONDISCLOSURES
Mark CairnsDirector,
Meridian Energy Limited
Coda GP Limited – Director
Quality Marshalling Limited – Chair
Port of Tauranga – Employee
Port of Tauranga Trustee Company
Limited – Director
Northport Limited – Director
Jan DawsonDirector,
Meridian Energy Limited
AIG – Director
Air New Zealand – Director and Shareholder
Beca Group – Director
Mighty River Power – Shareholder
Westpac New Zealand – Director
(Chair from March 2015)
Mary DevineDirector,
Meridian Energy Limited
and Meridian LTI
Trustee Limited
Briscoe Group – Director
Christchurch City Holdings Limited –
Director
Foodstuffs South Island Limited – Director
Foodstuffs (New Zealand) Limited – Director
IAG (NZ) Holdings Limited – Director
IAG New Zealand Limited – Director
Top Retail Limited – Director (cessation)
Anake GoodallDirector,
Meridian Energy Limited
and Meridian LTI
Trustee Limited
Ākina Foundation (formerly Hikurangi
Foundation) – Chair and Trustee (cessation)
Contact Energy – Shareholder (cessation)
Impax Environmental Markets – Shareholder
Moreton Resources Limited (formerly
Cougar Energy Limited) – Shareholder
Chris MollerChair,
Meridian Energy Limited
Contact Energy Limited – Shareholder
NZ Transport Agency – appointed Board
Member on 25 March 2010 and Chair from
1 April 2010 (cessation)
SKYCITY Investments Australia
Limited – Director (cessation)
SKYCITY Entertainment Group
Limited – Chair (cessation)
Trustpower Limited – Bondholder
Westpac New Zealand Limited – Director
Steve ReindlerDirector,
Meridian Energy Limited
Contact Energy Limited – Shareholder
Yachting New Zealand – Director
Steel and Tube Limited – Director
Z Energy Limited – Director
WorkSafe New Zealand – Director
Waste Disposal Services – Chair
Naylor Love Enterprises – Director (cessation)
Infratil – Shareholder
Vector Limited – Shareholder
NZ Oil and Gas – Shareholder
Peter WilsonDirector,
Meridian Energy Limited
Arvida Group – Chair
Contact Energy Limited – Shareholder
Farmlands Trading Society Limited – Director
Genesis Energy Capital – Bondholder
Genesis – Shareholder
Mighty River Power – Bondholder
Mighty River Power – Shareholder
PF Olsen – Director (cessation)
Mark VerbiestDirector,
Meridian Energy Limited
ANZ Bank New Zealand Limited – Director
Aspiring Foundation Trust – Trustee
(cessation)
Bear Fund NZ Limited – Director
Freightways Limited – Director
and Shareholder
Infratil Limited – Shareholder
Mycare Limited – Chair and Shareholder
New Zealand Treasury Advisory Board
and Commercial Operations Advisory
Board – Member
NZ Council of Women – Advisory
panel member
Simpson Grierson – Consultant (cessation)
Southern Lakes Arts Festival Trust – Trustee
Southern Alps Rescue Trust – Trustee
Spark New Zealand – Chair (cessation)
Spark New Zealand – Shareholder
Willis Bond Capital Partners Limited –
Chairman and Shareholder
Willis Bond General Partner Limited
00:73
Meridian Integrated Report 2018

As at 30 June 2018 one director of Meridian Energy Limited
had disclosed, in accordance with section 148 of the
Companies Act 1993, the disposal of relevant interests in
Meridian Energy Limited securities during the financial year.
NATURE
OF
RELEVANT
INTERESTDATE
ACQUISITION/
DISPOSALCLASS
#ACQUIRED
OR
(DISPOSED)
CONSIDERATION
PAID OR
RECEIVED
PER SHARE
Anake Goodall
Beneficial
interest
23
February
2018DisposalShares(2,500)$2.86
DIRECTOR INDEMNITY. Pursuant to section 162 of
the Companies Act 1993, as permitted by Meridian’s
Constitution, Deeds of Indemnity have been given to
directors for potential liabilities and costs they might incur
for actions or omissions in their capacity as directors.
From 1 May 2018, Meridian’s directors’ and officers’ liability
insurance was renewed to cover risks normally covered
by such policies. Insurance is not provided for dishonest,
fraudulent, malicious or wilful acts or omissions.
DONATIONS. The Meridian Energy Group made no
donations during FY18. Meridian does not make donations
to political parties. All donations must be approved by
the Board.
AUDITOR. The Auditor-General has appointed Trevor Deed
of Deloitte Limited as auditor of the company. Mr Deed
has been the auditor of the company since FY16. Meridian
and its subsidiaries paid $0.7 million (2017: $0.6 million) to
Deloitte as audit fees in FY18.
The fees for other services undertaken by Deloitte during
FY18 totalled $0.1 million (2017: $0.1 million). These related
to other assurance activities including reviews of carbon
emissions, sustainability information, securities registers,
vesting of the executive LTI plan, solvency return of
Meridian Energy Captive Insurance Limited and
trustee reporting.
DIRECTORS’ EQUITY HOLDINGS. In accordance with
NZX Listing Rule 10.4.5(a), as at 30 June 2018 Meridian
Energy Limited directors had the following relevant
interests in Meridian Energy Limited equity securities:
DIRECTORNUMBER OF SHARES
Mark Cairns200,000
Jan Dawson51,300
Mary Devine51,510
Anake Goodall60,000
Chris Moller92,880
Stephen Reindler51,300
Peter Wilson99,170
Mark Verbiest35,000
SENIOR MANAGERS’ EQUITY HOLDINGS. As at
30 June 2018 the following Meridian Energy Limited senior
managers had relevant interests in Meridian Energy
Limited equity:
SENIOR MANAGERNUMBER OF SHARES
Neal Barclay322,673
Paul Chambers389,333
Guy Waipara285,075
Mike Roan232,950
00:74
FURTHER DISCLOSURES

TWENTY LARGEST REGISTERED QUOTED EQUITY SECURITY HOLDERS AS AT THE BALANCE DATE. The table
below lists the company’s 20 largest registered shareholders as at 30 June 2018:
NAMES
NUMBER OF
SHARES
% OF ISSUED
SHARES
HER MAJESTY THE QUEEN IN RIGHT OF New Zealand ACTING BY AND THROUGH
HER MINISTER OF FINANCE AND MINISTER FOR SOEs
1,307,586,37451.018
HSBC NOMINEES (New Zealand) LIMITED
49
135,133,5605.272
HSBC NOMINEES (New Zealand) LIMITED A/C STATE STREET
49
101,560,9663.963
CITIBANK NOMINEES (New Zealand) LIMITED
49
83,363,7623.253
JPMORGAN CHASE BANK NA NZ BRANCH-SEGREGATED CLIENTS ACCOUNT
49
58,240,3572.272
ACCIDENT COMPENSATION CORPORATION
49
42,495,4461.658
HSBC NOMINEES A/C NZ SUPERANNUATION FUND NOMINEES LIMITED
49
33,725,2691.316
FORSYTH BARR CUSTODIANS LIMITED32,808,4901.28
TEA CUSTODIANS LIMITED CLIENT PROPERTY TRUST ACCOUNT
49
31,030,5561.211
CUSTODIAL SERVICES LIMITED30,884,7971.205
NATIONAL NOMINEES New Zealand LIMITED
49
2 6,0 1 7,4 6 31.015
JBWERE (NZ) NOMINEES LIMITED24,246,0920.946
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED23,084,0150.901
FNZ CUSTODIANS LIMITED21,551,3140.841
CUSTODIAL SERVICES LIMITED20,241,0070.79
BNP PARIBAS NOMINEES (NZ) LIMITED
49
19,772,6450.7 7 1
CUSTODIAL SERVICES LIMITED16,363,0780.638
ANZ WHOLESALE AUSTRALASIAN SHARE FUND
49
16,272,3420.635
BNP PARIBAS NOMINEES (NZ) LIMITED
49
13,391,8910.523
CUSTODIAL SERVICES LIMITED9,976,4280.389
SUBSTANTIAL SECURITY HOLDER. In accordance with the Financial Markets Conduct Act 2013, as at 30 June 2018 the
total number of Meridian Energy Limited voting securities was 2,563,000,000. The shareholder with the greatest number
of voting securities is listed below:
NAME
RELEVANT INTEREST IN
NUMBER OF SHARES
% OF SHARES HELD
AT THE DATE OF NOTICEDATE OF NOTICE
Shares
Her Majesty the Queen in Right of New Zealand1,307,586,37451.01821 May 2016
49 Held through New Zealand Central Securities Depository Limited (NZCSD). NZCSD provides a custodial service that allows electronic trading
of securities by its members. As at 30 June 2018, 602,987,328 Meridian ordinary shares (or 23.53% of the ordinary shares on issue) were held
through NZCSD.
00:75
Meridian Integrated Report 2018

00:76
FURTHER DISCLOSURES

DISTRIBUTION OF SECURITY HOLDERS AND HOLDINGS AS AT 30 JUNE 2018. The table below sets out the
distribution of security holders and holdings of Meridian Energy Limited ordinary shares as at 30 June 2018.
SIZE OF HOLDING
NUMBER
OF HOLDERS%
NUMBER
OF SHARES
HOLDING
QUANTITY %
1–1,000
7, 2 6 215.326,652,1650.26
1,001–5,000
22,73847. 9 86 7,0 0 3, 2 7 12.61
5,001–10,000
9,37319.7874,207,4242.90
10,001–50,000
7, 2 1615.231 47,7 2 7,1 105.76
50,001–100,000
5171.093 7,18 3,9 7 81.45
100,001–500,000
2100.4440,391,6581.58
500,001 and over
760.162,189,8 34,39485.44
Total47,3921002,563,000,000100
BONDHOLDER STATISTICS AS AT 30 JUNE 2018. The table below provides information on the distribution of
MEL030 retail fixed-rate bonds as at 30 June 2018:
SIZE OF HOLDING
NUMBER OF
BONDHOLDERS
% OF
BONDHOLDERS
NUMBER
OF BONDS
% OF
BONDS
1,001–5,000
829.90410,0000.27
5,001–10,000
19123.071,819,0001.21
10,001–50,000
43352.3011,917,0007. 9 5
50,001–100,000
506.044,173,0002.78
100,001–500,000
445.319,617,0006.41
500,001 and over
283.38122,064,00081.38
Total828100150,000,000100
The table below provides information on the distribution of MEL040 retail fixed-rate bonds as at 30 June 2018:
SIZE OF HOLDING
NUMBER OF
BONDHOLDERS
% OF
BONDHOLDERS
NUMBER
OF BONDS
% OF
BONDS
1,001–5,000
364.95180,0000.12
5,001–10,000
11315.521,057,0000.70
10,001–50,000
44460.9912,119,0008.08
50,001–100,000
699.485,387,0003.59
100,001–500,000
405.499,823,0006.55
500,001 and over
263.57121,434,00080.96
Total728100150,000,000100
00:77
Meridian Integrated Report 2018

The table below provides information on the distribution of MEL050 retail fixed-rate bonds as at 30 June 2018:
SIZE OF HOLDING
NUMBER OF
BONDHOLDERS
% OF
BONDHOLDERS
NUMBER
OF BONDS
% OF
BONDS
1,001–5,000
284.88140,0000.07
5,001–10,000
9716.90916,0000.46
10,001–50,000
31955.578,847,0004.42
50,001–100,000
7012.195,577,0002.79
100,001–500,000
305.236,975,0003.49
500,001 and over
305.23177,545,00088.7 7
Total574100200,000,000100
WAIVERS FROM THE NEW ZEALAND AND
AUSTRALIAN STOCK EXCHANGES (NZX LR
10.4.5(F)). Details of all waivers granted and published
by NZX and relied on by Meridian Energy Limited during
FY18 are available on Meridian’s website at: https://www.
meridianenergy.co.nz/investors/governance/nzx-waivers/.
NON-STANDARD DESIGNATION. In New Zealand
Meridian Energy Limited has a ‘non-standard’ (NS)
designation on the NZX Main Board. This is due to particular
provisions of the company’s constitution, including
requirements that regulate the ownership and transfer of
Meridian securities. The NS designation is also required as
a condition of any NZX waivers and approvals.
CREDIT RATING AS AT 30 JUNE 2018. Meridian Energy
Limited had a Standard & Poor’s corporate credit rating of
BBB+/Stable/A-2 in FY18.
REGISTRATION AS A FOREIGN COMPANY. Meridian
has registered with the Australian Securities and
Investments Commission as a foreign company and has
been issued with an Australian Registered Body Number
of 151 800 396.
ASX DISCLOSURES. Meridian holds a foreign exempt
listing on the ASX. As a requirement of admission Meridian
must make the following disclosures.
• Meridian’s place of incorporation is New Zealand.
• Meridian is not subject to Chapters 6, 6A, 6B and 6C
of the Australian Corporations Act dealing with the
acquisition of shares (including substantial holdings
and takeovers).
SHAREHOLDING RESTRICTIONS. The Public Finance
Act 1989 was amended in June 2012 to include restrictions
on the ownership of certain types of security issued by each
mixed-ownership-model company (including Meridian)
and the consequences of breaching those restrictions.
The constitution incorporates these restrictions and
mechanisms for monitoring and enforcing them.
A summary of the restrictions on the ownership of shares
under the Public Finance Act and the constitution is set
out below. If the company issues any other class of shares,
or other securities confer voting rights, in the future, the
restrictions summarised below will also apply to those
other classes of shares or voting securities.
51% HOLDING. The Crown must hold at least 51% of the
shares on issue.
The company must not issue, acquire or redeem any shares
if such issue, acquisition or redemption would result in the
Crown falling below this 51% holding.
10% LIMIT. No person (other than the Crown) may have a
‘relevant interest’
50
in more than 10% of the shares on issue
(10% Limit).
The company must not issue, acquire, redeem or transfer
any shares if it has actual knowledge that such issue,
acquisition, redemption or transfer will result in any person
other than the Crown exceeding the 10% Limit.
Ascertaining whether a breach has occurred
If a holder of shares breaches the 10% Limit or knows or
believes that a person who has a relevant interest in shares
held by that holder may have a relevant interest in shares
in breach of the 10% Limit, the holder must notify the
company of the breach or potential breach.
50 In broad terms, a person has a ‘relevant interest’ in a share if the person (a) is the registered holder or beneficial owner of the share; or (b) has the
power to exercise, or control the exercise of, a right to vote attached to the share or has the power to acquire or dispose of, or to control the acquisition
or disposition of, that share. A person may also have a ‘relevant interest’ in a share in which another person has a ‘relevant interest’ depending on the
nature of the relationship between them.
00:78
FURTHER DISCLOSURES

Meridian may require a holder of shares to provide the
company with a statutory declaration if the Board knows
or believes that a person is, or is likely to be, in breach of
the 10% Limit. That statutory declaration is required to
include, where applicable, details of all persons who have
relevant interests in shares as a result of the shares held
by or on behalf of that holder.
Determining whether a breach has occurred
The company has the power to determine whether a
breach of the 10% Limit has occurred. In broad terms, if:
• the company considers that a person may be in
breach of the 10% Limit; or
• a holder of shares fails to lodge a statutory declaration
when required to do so or lodges a declaration that
has not been completed to the reasonable satisfaction
of the company,
Meridian is required to determine whether or not the
10% Limit has been breached and, if so, whether or
not that breach was inadvertent. The company must
give the affected shareholder the opportunity to make
representations to the company before it makes a
determination on these matters.
Effect of exceeding the 10% Limit
A person who is in breach of the 10% Limit must:
• comply with any notice that they receive from the
company requiring them to dispose of shares or their
relevant interest in shares, or take any other steps
that are specified in the notice, for the purpose of
remedying the breach and reducing their holding
below the 10% Limit
• ensure that they are no longer in breach within 60
days after the date on which they became aware, or
ought to have been aware, of the breach. If the breach
is not remedied within that timeframe, the company
may arrange for the sale of the relevant number of
shares on behalf of the relevant shareholder. In those
circumstances the company will pay the net proceeds
of sale, after the deduction of any other costs incurred
in connection with the sale (including brokerage and
the costs of investigating the breach of the 10% Limit),
to the relevant shareholder as soon as practicable
after the sale has been completed.
If a relevant interest is held in any shares in breach of the
10% Limit then, for as long as that breach continues:
• no votes may be cast directly by a shareholder in
respect of any of the shares in which a relevant
interest is held in excess of the 10% Limit
• a registered holder of shares in which a relevant
interest is held in breach of the 10% Limit will not be
entitled to receive, in respect of the shares in which
a relevant interest is held in excess of the 10% Limit,
any dividend or other distribution authorised by the
Board in respect of the shares.
However, if the Board determines that a breach of the
10% Limit was not inadvertent, or that it does not have
sufficient information to determine that the breach was
not inadvertent, the restrictions on voting and entitlement
to receive dividends and other distributions described in
the preceding paragraphs will apply in respect of all of the
shares (as applicable) held by the relevant shareholder or
holder (and not just the shares in which a relevant interest
is held in excess of the 10% Limit).
The Board may refuse to register a transfer of shares if it
knows or believes that the transfer will result in a breach of
the 10% Limit or where the transferee has failed to lodge a
statutory declaration requested from it by the Board within
14 days of the date on which the company gave notice to
the transferee to provide such statutory declaration.
Crown directions
The Crown has the power to direct the Board to
exercise certain of the powers conferred on it under the
constitution. For example, where the Crown suspects that
the 10% Limit has been breached but the Board has not
taken steps to investigate the suspected breach, the Crown
may require the company to investigate whether a breach
of the 10% Limit has occurred or to exercise a power of sale
of the relevant share that has arisen as described under the
heading ‘Effect of exceeding the 10% Limit’ above.
Trustee corporations and nominee companies
Trustee corporations and nominee companies (that
hold securities on behalf of a large number of separate
underlying beneficial holders) are exempt from the 10%
Limit provided that certain conditions are satisfied.
Share cancellation
In certain circumstances shares can be cancelled by
Meridian through a reduction of capital, share buyback or
other form of capital reconstruction approved by the Board
and, where applicable, shareholders.
NZX Corporate Governance Code
Meridian has a separate Corporate Governance Statement
that outlines our compliance with the NZX Corporate
Governance Code and is available on our website.
00:79
Meridian Integrated Report 2018

GOOD
00:80
FINANCIALS

PROGRESS
Meridian Integrated Report 2018
00:81

GROUP FINANCIAL STATEMENTS
Income Statement ............................................................83
The income earned and operating expenditure incurred
by the Meridian Group during the financial year.
Comprehensive Income Statement ......................................83
Items of income and operating expense that are not recognised
in the income statement and hence taken to reserves in equity.
Balance Sheet ....................................................................84
A summary of the Meridian Group assets and liabilities
at the end of the financial year.
Statement of Changes in Equity .........................................85
Components that make up the capital and reserves of the
Meridian Group and the changes in each component during
the financial year.
Statement of Cash Flows ....................................................86
Cash generated and used by the Meridian Group.
NOTES TO THE GROUP FINANCIAL STATEMENTS
About this report ...............................................................87
Significant matters in the financial year ..............................88
A. Financial performance
A1. Segment performance ..................................................90
A2. Income .......................................................................92
A3. Expenses ....................................................................93
A4. Ta xation .....................................................................94
B. Assets used to generate and sell electricity
B1. Property, plant and equipment ......................................95
B2. Intangible assets .........................................................97
C. Managing funding
C1. Capital management ....................................................98
C2. Share capital ...............................................................99
C3. Earnings per share .......................................................99
C4. Dividends ...................................................................99
C5. Cash and cash equivalents ..........................................100
C6. Trade receivables .......................................................100
C7. Borrowings.................................................................101
C8. Finance lease payable .................................................102
D. Financial instruments used to manage risk
D1. Financial risk management ..........................................103
E. Group structure
E1. Subsidiaries ................................................................110
F. Other
F1. Share-based payments .................................................112
F2. Related parties ............................................................113
F3. Auditor’s remuneration .................................................113
F4. Commitments .............................................................113
F5. Contingent assets and liabilities ....................................114
F6. Subsequent events ......................................................114
F7. Changes in financial reporting standards ........................114
SIGNED REPORT
Independent Auditor’s report .............................................115
MERIDIAN ENERGY LIMITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
KEY JUDGEMENTS
AND ESTIMATES
SUBSEQUENT
EVENT
RISKS
KEY
FINANCIALS
00:82

The notes to the Group financial statements form an integral part of these financial statements.
INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2018
NOTE
2018
$M
RESTATED
2017
$M
Operating revenueA2 2,762 2,320
Operating expensesA3(2,096) (1,663)
Earnings before interest, tax, depreciation, amortisation and
changes in fair value of hedges and other significant items (EBITDAF) 666 657
Depreciation and amortisationA3(268) (264)
Impairment of assetsA3(2) (10)
Gain/(loss) on sale of assetsA3 7 (4)
Net change in fair value of electricity and other hedgesD1(23) (76)
Operating profit 380 303
Finance costsA3(82) (79)
Interest incomeA2 1 2
Net change in fair value of treasury instrumentsD1(3) 55
Net profit before tax 296 281
Ta x expenseA4(95) (81)
Net profit after tax attributed to the shareholders of the parent company 201 200
Earnings per share (EPS) attributed to ordinary equity holders of the parent Cents Cents
Basic and diluted EPSC3 7.8 7.8
COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2018
NOTE
2018
$M
RESTATED
2017
$M
Net profit after tax 201 200
Other comprehensive income
Items that will not be reclassified to profit or loss:
Asset revaluationB1 – 428
Deferred tax on the above itemA4 – (120)
– 308
Items that may be reclassified to profit or loss:
Net gain on cash flow hedges 2 2
Exchange differences arising from translation of foreign operations 11 1
13 3
Other comprehensive income for the year, net of tax 13 311
Total comprehensive income for the year, net of tax
attributed to shareholders of the parent company 214 511
Meridian Integrated Report 2018
00:83

BALANCE SHEET AS AT 30 JUNE 2018
NOTE
2018
$M
RESTATED
2017
$M
Current assets
Cash and cash equivalentsC5 60 80
Trade receivablesC6 261 260
Customer contract assetsA2 19 18
Financial instrumentsD1 77 59
Other assets 32 32
Total current assets 449 449
Non-current assets
Property, plant and equipmentB1 7,9 41 7,9 6 1
Intangible assetsB2 60 58
Deferred taxA4 46 43
Financial instrumentsD1 136 172
Total non-current assets 8,183 8,234
Total a ssets 8,632 8,683
Current liabilities
Payables and accruals 267 288
Employee entitlements 16 15
Customer contract liabilities 14 8
Current portion of term borrowingsC7 450 170
Finance lease payableC8 1 1
Financial instrumentsD1 52 67
Current tax payable 43 30
Total current liabilities 843 579
Non-current liabilities
Term borrowingsC7 1,023 1,022
Deferred taxA4 1,683 1,715
Provisions 9 9
Finance lease payablesC8 47 46
Financial instrumentsD1 129 124
Term payables 75 93
Total non-current liabilities 2,966 3,009
Total liabilities 3,809 3,588
Net assets 4,823 5,095
Shareholders’ equity
Share capitalC2 1,598 1,598
Reserves 3,225 3,497
Total shareholders’ equity 4,823 5,095
For and on behalf of the Board of Directors who authorised the issue of the financial statements on 21 August 2018.
CHRIS MOLLER, Chair, 21 August 2018 JAN DAWSON, Chair, Audit and Risk Committee, 21 August 2018
The notes to the Group financial statements form an integral part of these financial statements.
FINANCIALS
00:84

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018
$MNOTE
SHARE
CAPITAL
SHARE
OPTION
RESERVE
REVALUATION
RESERVE
FOREIGN
CURRENCY
TRANSLATION
RESERVE
CASH
FLOW
HEDGE
RESERVE
RETAINED
EARNINGS
TOTAL
EQUITY
Balance at 1 July 2016 1,597 1 3,941 (28) (3) (4 58) 5,050
Restatement for adoption of new
accounting policies – – – – – 10 10
Restated balance 1 July 2016 1,597 1 3,941 (28) (3) (4 48) 5,060
Net profit for the 2017 financial year – – – – – 200 200
Other comprehensive income
Asset revaluation B1 – – 428 – – – 428
Net loss on cash flow hedges – – – – 2 – 2
Exchange differences from translation
of foreign operations – – – 1 – – 1
Income tax relating to other comprehensive income – – (120) – – – (120)
Total other comprehensive income, net of tax – – 308 1 2 – 311
Total comprehensive income for the year,
net of tax – – 308 1 2 200 511
Share-based transactionsC2,F1 1 – – – – – 1
Dividends paidC4 – – – – – (47 7) (47 7)
Restated balance at 30 June and 1 July 1,598 1 4,249 (27) (1) (725) 5,095
Net profit for the 2018 financial year – – – – – 201 201
Other comprehensive income
Net loss on cash flow hedges – – – – 2 – 2
Exchange differences from translation
of foreign operations – – – 11 – – 11
Total other comprehensive income, net of tax – – – 11 2 – 13
Total comprehensive income for the year,
net of tax – – – 11 2 201 214
Share-based transactionsC2,F1 – – – – – – –
Dividends paidC4 – – – – – (486) (486)
Balance at 30 June 2018 1,598 1 4,249 (16) 1 (1,010) 4,823
The notes to the Group financial statements form an integral part of these financial statements.
Meridian Integrated Report 2018
00:85

The notes to the Group financial statements form an integral part of these financial statements.
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2018
NOTE
2018
$M
2017
$M
Operating activities
Receipts from customers 2,765 2,250
Interest received 1 2
Payments to suppliers and employees(2,152) (1,596)
Interest paid(79) (75)
Income tax paid(108) (111)
Operating cash flowsC5 427 470
Investment activities
Sale of property, plant and equipment 23 –
Sale of subsidiaries – 1
Sale of other assets – 1
Purchase of property, plant and equipment(33) (33)
Purchase of intangible assets(22) (21)
Purchase of subsidiary(182)–
Australian stamp duty paid(10) –
Investing cash flows(224) (52)
Financing activities
Term borrowings drawn 462 158
Term borrowings repaid(200) (136)
Finance lease paid(1) (1)
Dividends paid C4(486) (47 7)
Financing cash flows(225) (456)
Net decrease in cash and cash equivalents(22) (38)
Cash and cash equivalents at the beginning of the year 80 118
Effect of exchange rate changes on net cash 2 –
Cash and cash equivalents at the end of the yearC5 60 80
FINANCIALS
00:86

Meridian Energy Limited is a for-profit entity domiciled and
registered under the Companies Act 1993 in New Zealand.
It is an FMC reporting entity for the purposes of the Financial
Markets Conduct Act 2013. Meridian’s core business activities
are the generation, trading and retailing of electricity and the
sale of complementary products and services. The registered
office of Meridian is 33 Customhouse Quay, Wellington. Meridian
Energy Limited is dual listed on the New Zealand Stock Exchange
(NZX) and the Australian Securities Exchange (ASX). As a mixed
ownership company, majority owned by Her Majesty the Queen
in Right of New Zealand, it is bound by the requirements of the
Public Finance Act 1989.
These financial statements have been prepared:
• in accordance with Generally Accepted Accounting Practice
(GAAP) in New Zealand and comply with International
Financial Reporting Standards (IFRS) and the New Zealand
equivalents (NZ IFRS), as appropriate for a for-profit entity
• in accordance with the requirements of the Financial Markets
Conduct Act 2013
• on the basis of historical cost, modified by revaluation
of certain assets and liabilities
• in New Zealand dollars (NZD), with all values rounded to
millions ($M) unless otherwise stated
• using accounting policies as provided throughout the notes
to the financial statements.
BASIS OF CONSOLIDATION. The Group financial
statements comprise the financial statements of Meridian Energy
Limited and its subsidiaries and controlled entities, as contained
in note E1 Subsidiaries.
The financial statements of members of the Group are prepared
for the same reporting period as the parent company, using
consistent accounting policies.
In preparing the Group financial statements, all material intra-
group transactions, balances, income and expenses have been
eliminated. Subsidiaries are consolidated from the date on which
control is obtained to the date on which control is lost.
FOREIGN CURRENCY. Transactions denominated in foreign
currencies are converted at the exchange rates at the dates of the
transactions. Foreign currency monetary assets and liabilities are
translated at the rate prevailing at balance date, 30 June 2018.
The assets and liabilities of international subsidiaries are
translated to NZD at the closing rate at balance date. The revenue
and expenses of these subsidiaries are translated at rates
approximating the exchange rates at the dates of the transactions.
When the financial statements of subsidiaries are translated
into NZD, exchange differences can arise. These are recorded
in the foreign currency translation reserve (within equity).
If an international subsidiary is disposed of, these cumulative
translation differences are recognised in the income statement
in the period in which that occurs.
The principal functional currency of international subsidiaries
is Australian dollars; the closing rate at 30 June 2018 was 0.9138
(30 June 2017: 0.9536). A full list of international subsidiary
functional currencies is provided in note E1 Subsidiaries.
IN THIS SECTION. The notes to the financial statements include information that is considered relevant and material to
assist the reader in understanding changes in Meridian’s financial position or performance. Information is considered relevant
and material if:
• the amount is significant because of its size and nature;
• it is important for understanding the results of Meridian;
• it helps to explain changes in Meridian’s business; or
• it relates to an aspect of Meridian’s operations that is important to future performance.
KEY JUDGEMENTS AND ESTIMATES. In the
process of applying the Group’s accounting policies and
application of accounting standards, Meridian has made
a number of judgements and estimates. The estimates
and underlying assumptions are based on historical
experience and various other factors that are considered
to be appropriate under the circumstances. Actual results
may differ from these estimates.
Judgements and estimates that are considered material
to understanding the performance of Meridian are found
in the following notes:
Note A2:IncomePage 92
Note A4:Ta xationPage 94
Note B1:Property, plant and equipmentPage 95
Note B2:Intangible assetsPage 97
Note C6:Trade receivablesPage 100
Note D1:Financial risk managementPage 103
ABOUT THIS REPORT FOR THE YEAR ENDED 30 JUNE 2018
Meridian Integrated Report 3021
00:87

EARLY ADOPTION OF NZ IFRS 15 REVENUE FROM
CONTRACTS WITH CUSTOMERS. Meridian has adopted
NZ IFRS 15 Revenue from Contracts with Customers since 1 July
2017. This has resulted in a change to Meridian’s accounting
policy relating to the treatment of incentives given to customers
(such as credits applied to a customer’s account) and any
incremental costs directly incurred in acquiring new customers
and retaining existing customers (such as sales commissions).
Meridian’s previous policy was to recognise customer credits
(upfront discounts) as discounts to electricity sales to customers
at the time the credits were applied to the customers’ accounts,
and to recognise the incremental costs of acquiring and retaining
as expenses at the time they were incurred. The change of policy
will result in customer incentives and incremental costs being
deferred to the balance sheet as customer contract assets and
amortised on a straight-line basis over the expected average
customer contract tenure.
The Group has applied IFRS 15 in accordance with the fully
retrospective transitional approach using the expedient in
IFRS 15.C5(d).
The Group has adopted Customer contract assets as the
terminology used to describe incremental costs of obtaining
a contract.
The standard has been applied retrospectively. The effects of this
change in accounting policy are shown below:
YEAR ENDED 30 JUNE 17
INCOME STATEMENT EFFECT
ORIGINAL
2017
$M
ADJUSTMENT
$M
RESTATED
2017
$M
Operating revenue 2,319 1 2,320
Operating expenses (1,666) 3 (1,663)
EBITDAF 653 4 657
Income tax expense (80) (1) (81)
Net profit after tax 197 3 200
Earnings per share
(cents per share) 7.7 0.1 7.8
AS AT 30 JUNE 2017
BALANCE SHEET EFFECT
ORIGINAL
2017
$M
ADJUSTMENT
$M
RESTATED
2017
$M
Customer contract assets – 18 18
Deferred tax liability (1,7 10) (5) (1,7 15)
Retained earnings 738 (13) 725
2017 comparative figures have been restated to reflect the
adoption of NZ IFRS 15 Revenue from Contracts with Customers.
GENERATION STRUCTURES AND PLANT
REVALUATION. At 30 June 2018 a valuation of Meridian’s
generation structures and plant assets has been undertaken
to determine the fair value of the assets as at this date.
The valuation indicated the carrying value is a fair representation
of fair value and for this reason Meridian has not completed
a full revaluation of this asset class in 2018. Meridian uses an
independent valuer to determine a valuation range on which the
Board’s ultimate valuation decision is based.
For more information, refer to note B1 Property, plant and
equipment on page 95.
ACQUISITION OF GSP ENERGY PTY LIMITED.
On 29 March 2018 Meridian Energy Australia Pty Limited
(a controlled entity of Meridian Energy Limited) purchased
100 percent of the shares in GSP Energy Pty Limited (GSP) for
$182 million (A$166 million). GSP operates three hydro power
stations: the Hume, Burrinjuck and Keepit power stations,
located in New South Wales, Australia. The generation produced
from these stations will support sales to Powershop Australia
customers. Stamp duty of $10 million (A$9 million) has been
paid on the transaction, which has been recognised in tax
expense in the income statement.
HYDRO INFLOWS. Dry conditions experienced at the start
of the year continued into January (briefly interrupted by spring
inflows). These conditions changed dramatically in February,
which featured two major weather events ex-tropical Cyclones
Fehi and Gita. This was good news for our catchment with Fehi
delivering more water into the Waitaki River than any other event
in the previous five years. Storage has remained good throughout
the start of winter.
The dry conditions resulted in Meridian reducing its hydro
generation production and the calling of electricity swaptions in
the first half of the year. Prices remained high in this period, which
improved revenue but had a negative impact on the cost to supply
physical and financial electricity sales. As hydro storage improved
in Q3 and Q4, Meridian was able to increase generation production
and sell greater volumes into the hedge market. Prices dropped
due to hydro generation displacing thermal generation and flat
demand as a result of mild weather until late into Q4.
IN THIS SECTION. Significant matters that have affected Meridian’s financial performance and an explanation of non-GAAP
measures used within the notes to the financial statements.
SIGNIFICANT MATTERS
IN THE FINANCIAL YEAR FOR THE YEAR ENDED 30 JUNE 2018
FINANCIALS
00:88

SIGNIFICANT MATTERS IN THE FINANCIAL YEAR continued
NON-GAAP MEASURES. Meridian refers to non-GAAP
financial measures within these financial statements and
accompanying notes. The limited use of non-GAAP measures is
intended to supplement GAAP measures to provide readers with
further information to broaden their understanding of Meridian’s
financial performance and position. They are not a substitute
for GAAP measures. As these measures are not defined by NZ
GAAP, IFRS or any other body of accounting standards, Meridian’s
calculations may differ from similarly titled measures presented
by other companies. The measures are described below, including
page references for reconciliations to the financial statements.
EBITDAF. Earnings before interest, tax, depreciation,
amortisation and changes in fair value of hedges and other
significant items.
EBITDAF is reported in the income statement, allowing the
evaluation of Meridian’s operating performance without the
non-cash impacts of depreciation, amortisation, fair value
movements of hedging instruments and other one-off or
infrequently occurring events and the effects of Meridian’s capital
structure and tax position. This allows a better comparison of
operating performance with that of other electricity industry
companies than GAAP measures that include these items.
ENERGY MARGIN. Energy margin provides a measure of
financial performance that, unlike total revenue, accounts for
the variability of the wholesale electricity market and the broadly
offsetting impact of wholesale prices on the cost of Meridian’s
retail electricity purchases and revenue from generation. Meridian
uses the measure of energy margin within Meridian’s segmental
financial performance in note A1 Segment performance on page 91.
NET DEBT. Net debt is a metric commonly used by investors as
a measure of Meridian’s indebtedness that takes account of liquid
financial assets. Meridian uses this measure within its capital
management and this is outlined in note C1 Capital management
on page 98.
Meridian Integrated Report 2018
00:89

A
FINANCIAL PERFORMANCE
IN THIS SECTION. This section explains the financial performance of Meridian, providing additional information about
individual items in the income statement, including:
a) accounting policies, judgements and estimates that are relevant for understanding items recognised in the
income statement
b) analysis of Meridian’s performance for the year by reference to key areas including performance by operating segment,
revenue, expenses and taxation.
A1 SEGMENT PERFORMANCE. The Chief Executive
(the chief operating decision-maker) monitors the operating
performance of each segment for the purpose of making decisions
on resource allocation and strategic direction.
The Chief Executive considers the business according to the nature
of the products and services and the location of operations, as set
out below.
New Zealand Wholesale
• Generation of electricity and its sale into the New Zealand
wholesale electricity market.
• Purchase of electricity from the wholesale electricity market
and its sale to the NZ Retail segment and to large industrial
customers, including New Zealand’s Aluminium Smelter
(NZAS) representing the equivalent of 40 percent (30 June
2017: 38 percent ) of Meridian’s New Zealand generation
production.
• Development of renewable electricity generation
opportunities in New Zealand.
New Zealand Retail
• Retailing of electricity and complementary products through
two brands (Meridian and Powershop) in New Zealand.
Electricity sold to residential, business and industrial
customers on fixed-price, variable-volume contracts is
purchased from the Wholesale segment at an average
annual fixed price of $73-$78 per megawatt hour (MWh) and
electricity sold to business and industrial customers on spot
(variable-price) agreements is purchased from the Wholesale
segment at prevailing wholesale spot market prices.
Agency margin from spot sales is included within ‘Contracted
sales, net of distribution costs’.
The transfer price is set in a similar manner to transactions
with third parties.
• Powershop New Zealand provides frontline customer and
back-office services for Powershop Australia. Revenue
of $4 million has been recorded in ‘other revenue’ and is
eliminated on Group consolidation.
Australia
• Generation of electricity from Meridian’s two wind farms
and three hydro power stations, and sale into the Australian
wholesale electricity market.
• Retailing of electricity through the Powershop brand
in Australia.
• Development of renewable electricity generation options
in Australia.
Other and unallocated
• Other operations that are not considered reportable
segments, including licensing of the Flux Federation-
developed electricity and gas retailing platform.
• Activities and centrally based costs that are not directly
allocated to other segments.
The financial performance of the operating segments is assessed
using energy margin and EBITDAF (see page 89 for a definition of
these measures) before unallocated central corporate expenses.
Balance sheet items are not reported to the Chief Executive at an
operating segment level.
FINANCIALS
00:90

A1 SEGMENT PERFORMANCE continued
NZ WHOLESALENZ RETAILAUSTRALIA
OTHER AND
UNALLOCATEDINTER-SEGMENT
RESTATEDRESTATEDRESTATEDRESTATEDRESTATEDRESTATED
2018
$M
2017
$M
2018
$M
2017
$M
2018
$M
2017
$M
2018
$M
2017
$M
2018
$M
2017
$M
2018
$M
2017
$M
Contracted sales,
net of distribution costs 435 354 629 614 98 71 – – – – 1,162 1,039
Virtual asset swap margins (2) 4 – – – – – – – – (2) 4
Net cost of acquired generation 41 (4) – – – – – – – – 41 (4)
Generation spot revenue 1,039 684 – – 72 48 – – – – 1,111 732
Inter-segment electricity sales 535 506 – – – – – – (535) (506) – –
Cost to supply contracted sales(1,259) (753) (470) (460) (84) (45) – – 535 506 (1,278) (752)
Other market revenue/(costs) (6) (6) 2 1 – – – – – – (4) (5)
Energy margin 783 785 161 155 86 74 – – – – 1,030 1,014
Other revenue 2 4 12 13 1 – 20 9 (13) (7) 22 19
Dividend revenue – – – – – – 46 1 (46) (1) – –
Energy transmission expense (122) (125) – – (5) (5) – – – – (127) (130)
Gross margin 663 664 173 168 82 69 66 10 (59) (8) 925 903
Employee expenses (28) (28) (31) (32) (9) (8) (27) (25) – 1 (95) (92)
Electricity metering expenses – – (31) (30) – – – – – – (31) (30)
Other operating expenses (56) (54) (34) (33) (29) (25) (22) (18) 8 6 (133) (124)
EBITDAF 579 582 77 73 44 36 17 (33) (51) (1) 666 657
Depreciation and amortisation (268) (264)
Impairment of assets (2) (10)
Gain/(loss) on sale of assets 7 (4)
Net change in fair value
of electricity and other hedges (23) (76)
Operating profit 380 303
Finance costs (82) (79)
Interest income 1 2
Net change in fair value
of treasury instruments (3) 55
Net profit before tax 296 281
Ta x expense (95) (81)
Net profit after tax 201 200
Reconciliation of energy margin
Electricity sales revenue 1,825 1,483 1,201 1,131 249 193 – – (535) (506) 2,740 2,301
Electricity expenses, net of hedging
(1,042) (698) (553) (517) (100) (6 3) – – 535 506 (1,160) (772)
Electricity distribution expenses – – (487) (459) (63) (56) – – – – (550) (515)
Energy margin 783 785 161 155 86 74 – – – – 1,030 1,014
Meridian Integrated Report 2018
00:91

A2 INCOME
RESTATED
OPERATING REVENUE
2018
$M
2017
$M
Electricity sales to customers 1,652 1,526
Electricity generation, net of hedging 1,088 775
Electricity-related services revenue 7 9
Other revenue 15 10
2,762 2,320
RESTATED
POSITION AS AT
CUSTOMER CONTRACT ASSETS
2018
$M
2017
$M
Opening balance 18 15
Deferred during the period
Discounts and up-front credits
to customers 11 10
Sales costs 3 5
14 15
Released to the income
statement during the period
Electricity sales to customers(9) (7)
Employee expenses(1) (1)
Other expenses(3) (4)
(13) (12)
Closing balance 19 18
RESTATED
TOTAL REVENUE BY GEOGRAPHIC AREA
2018
$M
2017
$M
New Zealand 2,502 2,121
Australia 249 192
United Kingdom 11 7
Total operating revenue 2,762 2,320
2018
$M
2017
$M
Interest income 1 2
OPERATING REVENUE
Electricity sales to customers
Revenue received or receivable from residential, business and
industrial customers. This revenue is influenced by customer
contract sales prices and their demand for electricity.
Electricity generation, net of hedging
Revenue received from:
• electricity generated and sold into the wholesale markets
• net settlement of electricity hedges sold on electricity
futures markets, and to generators, retailers and
industrial customers.
This revenue is influenced by the quantity of generation and the
wholesale spot price and is recognised at the time of generation
or hedge settlement.
Interest income
Interest income is recognised on a time-proportionate basis using
the effective interest method.
KEY JUDGEMENTS AND ESTIMATES
– REVENUE
Electricity consumption
Meridian exercises judgement in estimating retail
electricity sales where customer electricity meters are
unread at balance date. These estimates of customer
electricity usage in the unread period are based on the
customers’ historical consumption patterns.
Revenue is recognised at the time of supply and customer
consumption. Variable elements of the sale price, such
as discounts and credits given to customers, and any
incremental costs incurred in obtaining or retaining a
customer contract, are deferred to customer contract
assets on the balance sheet on a portfolio basis and
released to the income statement over the contract tenure.
Electricity supply agreement with NZAS
The 2015 supply agreement with NZAS has been
recognised in these financial statements in a manner
consistent with fixed-price supply agreements with
other industrial customers. Revenue is recognised as
electricity sales revenue in the income statement and the
estimated future cash flows are included in the fair value
of generation structures and plant assets on the balance
sheet. This recognition reflects the fact that a number
of variables within the agreement are consistent with a
supply agreement and are not features of an electricity
financial contract or other forms of financial contract.
Customer contract tenure
Meridian exercises judgement in estimating customer
contract tenures where contracts do not have fixed
terms. These estimations are based on the average rate
of customer churn for groups of customers with similar
attributes. The following estimates of customer contract
tenure have been used to spread the variable components
of the sale price and the incremental costs of acquiring
a customer.
New Zealand – residential and business between
two and three years.
Australia – residential and business between
two and three years.
Prompt payment discounts and payment terms
Where a discount is offered for prompt payment, revenue
is initially recognised net of estimated discount based on
accumulated experience used to estimate the amount of
discounts taken by customers.
There are no significant differences between the payment
terms and this policy.
FINANCIALS
00:92

A3 EXPENSES
RESTATED
OPERATING EXPENSES
2018
$M
2017
$M
Electricity expenses, net of hedging 1,160 772
Electricity distribution expenses 550 515
Electricity transmission expenses 127 130
Employee expenses 95 92
Electricity metering expenses 31 30
Other expenses 133 124
2,096 1,663
DEPRECIATION
AND AMORTISATIONNOTE
2018
$M
2017
$M
DepreciationB1 247 245
Amortisation of intangiblesB2 21 19
268 264
FINANCE COSTSNOTE
2018
$M
2017
$M
Interest on borrowings 74 70
Interest on electricity
option premium 2 3
Interest on finance
lease payableC8 6 6
82 79
IMPAIRMENT AND LOSS
ON SALE OF ASSETSNOTE
2018
$M
2017
$M
Impairment of property,
plant and equipmentB1 2 10
(Gain)/loss on sale or
disposal of assets(7) 4
(5) 14
OPERATING EXPENSES
Electricity expenses, net of hedging
The cost of:
• electricity purchased from wholesale markets to
supply customers
• net settlement of buy-side electricity hedges
• related charges and services.
Electricity expenses are influenced by the quantity and timing
of customer consumption and the wholesale spot price.
Electricity distribution expenses
The cost of distribution companies transporting electricity
between the national grid and customers’ properties.
Electricity transmission expenses
Meridian’s share of the cost of the high-voltage, direct-current
(HVDC) link between the North and South Islands of New Zealand
and the cost of connecting Meridian’s generation sites to the
national grid by grid providers.
Employee expenses
Provisions are made for benefits owing to employees in respect of
wages and salaries, annual leave, long service leave and employee
incentives for services rendered. Provisions are recognised when
it is probable they will be settled and can be measured reliably.
They are carried at the remuneration rates expected to apply at
the time of settlement.
Contributions to defined contribution plans (largely KiwiSaver)
were $4 million in 2018 (30 June 2017: $4 million).
Electricity metering expenses
The cost of electricity meters, meter reading and data gathering
of retail customer electricity consumption in New Zealand.
Metering expenses in Australia are bundled with electricity
distribution costs.
Impairment of non-financial assets
Meridian reviews the recoverable amount of its tangible and
intangible assets at each balance date. They are grouped into
cash-generating units with separately identifiable cash flows.
The recoverable amount is the higher of an asset’s fair value less
costs to sell and the present value of future cash flows expected
to be generated by the asset (also known as value in use).
If the carrying value of an asset exceeds the recoverable amount,
an impairment expense is recognised in the income statement.
However, if the asset is carried at a revalued amount, the
impairment is treated as a revaluation decrease in equity.
Any reversal of previous losses is recognised immediately in
the income statement, unless the asset is carried at a revalued
amount, in which case the reversal is treated as a revaluation
increase in equity.
During the 2018 financial year the book value of the Central
Wind consent was impaired as development at this location
is unlikely to occur prior to the expiry of the existing
resource consent.
The 2017 impairment is made up of a $12 million impairment in
relation to Meridian’s wind farm options at Poutō and Hurunui,
which Meridian decided not to pursue, and a $2 million reversal
of previous impairment reversing the impairment recorded in the
income statement in 2015 relating to the revaluation of generation
structures and plant (for further details of the revaluation of
generation structures and plant, refer to note B1 Property,
plant and equipment).
Meridian Integrated Report 2018
00:93

A4 TAXATION
RESTATED
TAX EXPENSE
2018
$M
2017
$M
Current income tax expense 121 113
Adjustments to tax of prior years(1) (3)
Total current tax expense 120 110
Deferred tax (35) (29)
Stamp duty paid on asset acquisition 10 –
Total tax 95 81
Reconciliation to profit before tax
Profit before tax 296 281
Income tax at applicable rates 83 79
Expenditure not deductible for tax 3 5
Income tax (over)/under provided
in prior year(1) (3)
Stamp duty paid on asset acquisition 10 –
Tax expense 95 81
RESTATED
DEFERRED TAX ASSETS AND LIABILITIES
2018
$M
2017
$M
Balance at the beginning of the year 1,672 1,581
Temporary differences in income statement:
Depreciation/Amortisation(31) (25)
Term payables 2 4
Financial instruments(6) (5)
Carried forward unused tax losses – (3)
Customer contract assets 1 1
Other – payables and receivables(1) (1)
(35) (29)
Temporary differences in other comprehensive income:
Revaluation reserve movements – 120
Balance at the end of the year 1,637 1,672
Made up of:
Property, plant and equipment 1,731 1,760
Term payables(37) (39)
Financial instruments(18) (12)
Customer contract assets 6 5
Other – payables and receivables 1 1
Deferred tax liability 1,683 1,715
Carried forward unused tax losses (46) (43)
Deferred tax asset(46) (4 3)
Total deferred tax 1,637 1,672
CURRENT TAX EXPENSE. Tax expense components are
current income tax, deferred tax and stamp duty.
Current income tax expense is the income tax assessed on taxable
profit for the year. Taxable profit differs from profit before tax
reported in the income statement as it excludes items of income
and expense that are taxable or deductible in other years and also
excludes items that will never be taxable or deductible. Meridian’s
liability for current tax is calculated using tax rates enacted at
balance date, being 28 percent for New Zealand and 30 percent
for Australia.
On 29 March 2018 Meridian Energy Australia Pty Limited
(a subsidiary of Meridian Energy Limited) purchased 100 percent
of the shares in GSP Energy Pty Limited (GSP). GSP operates three
hydro power stations subject to stamp duty on purchase. Refer E1
Subsidiaries for further detail on the acquisition.
DEFERRED TAX ASSETS AND LIABILITIES. Deferred tax
is income tax that is expected to be payable or recoverable in the
future as a result of the unwinding of temporary differences. These
arise from differences in the recognition of assets and liabilities
for financial reporting and for the filing of income tax returns.
Deferred tax is recognised on all temporary differences, other
than those arising:
• from goodwill
• from the initial recognition of assets and liabilities in a
transaction (other than in a business combination) that
affects neither the accounting nor the taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to
apply to the year when liabilities have been settled or the assets
realised, based on tax rates and tax laws that have been enacted
or substantively enacted at balance date.
UNUSED TAX LOSSES. Relate to Australian operations and
will be utilised against future taxable income from retail and
generation activities in that country.
OFFSETTING DEFERRED TAX BALANCES. Deferred
tax assets and liabilities are offset only if there are legally
enforceable rights to set off current tax assets against current
tax liabilities and when they relate to the same taxable entity and
taxation authority.
KEY JUDGEMENTS AND ESTIMATES
– TAXATION. A deferred tax asset is recognised to
the extent that it is probable that a future taxable profit
will be available to use the asset. This is reviewed at each
balance date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available in
the future to utilise the deferred tax asset.
FINANCIALS
00:94

B
ASSETS USED TO GENERATE AND SELL ELECTRICITY
IN THIS SECTION. This section shows the assets that Meridian uses in the production and sale of electricity to generate
operating revenue. In this section of the notes there is information about:
a) property, plant and equipment
b) intangible assets.
B1 PROPERTY, PLANT AND EQUIPMENT
$M
GENERATION
STRUCTURES
AND PLANT AT
FAIR VALUE
LAND AND
BUILDINGS
AT COST
OTHER
PLANT AND
EQUIPMENT
AT COST
WORK IN
PROGRESS
AT COST TOTAL
Cost or fair value 7, 5 6 6 36 164 91 7,8 5 7
Less accumulated depreciation – (4) (82) – (86)
Net book value at 30 June 2016 7, 566 32 82 91 7,7 7 1
Additions – – – 34 34
Transfers – work in progress 15 – 17 (32) –
Transfers – intangible assets – – – (9) (9)
Transfers – other assets(2) (6) – – (8)
Disposals(1) – (1) – (2)
Impairments(5) – – (7) (12)
Foreign currency exchange rate movements
51
2 – – – 2
Generation structures and plant revaluations:
Increase taken to revaluation reserve 428 – – – 428
Increase taken to income statement 2 – – – 2
Depreciation expense(231) (1) (11) (2) (245)
Net book value at 30 June 2017 7,7 74 25 87 75 7,961
Cost or fair value 7,7 74 30 169 77 8,050
Less accumulated depreciation
52
– (5) (82) (2) (89)
Net book value at 30 June 2017 7,7 74 25 87 75 7,961
Additions – – – 36 36
Transfers – work in progress 32 – 11 (43) –
Transfers – intangible assets – – – (2) (2)
Transfers – other assets 9 – (9) – –
Disposals – (10) – – (10)
Purchase of subsidiary 181 – – 3 184
Foreign currency exchange rate movements
51
17 – 2 – 19
Depreciation expense(237) – (11) 1 (247)
Net book value at 30 June 2018 7,776 15 80 70 7,9 41
Cost or fair value 8,013 20 171 71 8,275
Less accumulated depreciation(237) (5) (91) (1) (334)
Net book value at 30 June 2018 7,776 15 80 70 7,9 41
51 Through the foreign currency translation reserve in other comprehensive income.
52 Includes the reversal of accumulated depreciation on generation structures and plant at revaluation date.
Meridian Integrated Report 2018
00:95

B1 PROPERTY, PLANT AND EQUIPMENT continued
At 30 June 2018, had the generation structures and plant been
carried at historical cost less accumulated depreciation and
accumulated impairment losses, their carrying amount would
have been approximately $2.4 billion (30 June 2017: $2.5 billion).
RECOGNITION AND MEASUREMENT. Generation
structures and plant assets (including land and buildings) are
held on the balance sheet at their fair value at the date of
revaluation, less any subsequent depreciation and impairment
losses. All other property, plant and equipment are stated
at historical cost less accumulated depreciation and any
accumulated impairment losses.
Fair value and revaluation of generation structures and plant
Revaluations are performed with sufficient regularity to ensure
that the carrying amount does not differ materially from that
which would be determined using fair values at balance date.
Meridian uses an independent valuer, who uses an income
valuation approach based primarily on the capitalisation of
earnings with additional consideration of the discounted cash
flows (DCFs) to establish a valuation range on which the Board’s
ultimate valuation decision is based.
Any increase arising on revaluation is credited to the revaluation
reserve, except to the extent that it reverses a revaluation
decrease for the same asset previously recognised in the income
statement. In that case the increase is credited to the income
statement to the extent of the decrease previously charged.
A decrease in carrying amount arising on revaluation is charged
to the income statement to the extent that it exceeds the balance,
if any, held in the revaluation reserve relating to a previous
revaluation of that asset.
Accumulated depreciation at revaluation date is eliminated
against the gross carrying amount so that the carrying amount
after revaluation represents the revalued amount.
Subsequent additions to generation structures and plant
assets are recorded at cost, which is considered fair value,
including costs directly attributable to bringing the assets
to the locations and condition necessary for their intended
purposes, and financing costs where appropriate.
GENERATION STRUCTURES AND PLANT VALUATION TECHNIQUES AND KEY INPUTS. The Meridian
Board uses its judgement to decide on the appropriateness of key valuation techniques and inputs for fair value measurement.
Judgement is also used in determining the estimated remaining useful lives of assets.
As the valuation of generation structures and plant does not fully use observable market data, it continues to be classified
as a level 3 fair value (a definition of the other levels is included in D1 Financial risk management).
As discussed above, the independent valuer uses an income approach that involves incorporating two techniques in
establishing a valuation range, being capitalisation of earnings and DCF. The fair value adopted aligns closely with the
capitalisation of earnings value. This methodology calculates value by reference to an assessment of future maintainable
earnings and capitalisation multiples as observed from market prices of listed companies with broadly comparable operations
to Meridian. In preparing the capitalisation of earnings valuation, an EBITDAF multiple range at which to capitalise Meridian’s
historical and forecast earnings is determined.
In determining the maintainable earnings, observable wholesale electricity prices extracted from the ASX have been used.
It is assumed in this valuation that the contract with NZAS runs to full term, under existing contractual arrangements.
The table below describes the key valuation inputs and their sensitivity to changes.
KEY INPUT TO MEASURE
FAIR VALUEDESCRIPTION
RANGE OF
UNOBSERVABLE INPUTSSENSITIVITY
IMPACT ON
VALUATION
New Zealand generation volumeAnnual generation production13,490GWh p.a. to
15,430GWh p.a.
+ 250GWh$135M
- 250GWh($135M)
Australian generation volumeAnnual generation production 840GWh p.a. +5%A$37M
-5%(A$37M)
Operating expenditureMeridian’s cost of operations$285Mp.a.+ $10M($138M)
- $10M$138M
EBITDAF earnings multiple
Valuation multiple
(including control premium of 20%)
derived from earnings and valuations
of comparable companies
12.6 x EBITDAF +0.5x$359M
-0.5x ($359M)
Sensitivities show the movement in fair value as a result of a change in each input (keeping all other inputs constant).
FINANCIALS
00:96

B1 PROPERTY, PLANT AND EQUIPMENT continued
Revaluation of generation structures and plant
Meridian engaged an independent valuer to assess its generation
structures and plant assets at 30 June 2018 using capitalisation
of earnings and DCFs when determining a valuation range. The
review indicated that the carrying value is a fair representation of
fair value, and for this reason Meridian has not completed a full
revaluation of this asset class.
At 30 June 2017, the revaluation resulted in a net increase of
$199 million (after the reversal of depreciation) in the carrying
value of generation structures and plant assets. The impact of
the revaluation was recognised as an increase of $308 million
(net of deferred tax) in the revaluation reserve and as a $2 million
reversal of a previous impairment of Australian generation assets
recognised in the income statement.
Depreciation
Depreciation of property, plant and equipment assets, other than
freehold land, is calculated on a straight-line basis. This allocates
the cost or fair value amount of an asset, less any residual value,
over its estimated remaining useful life.
KEY JUDGEMENTS AND ESTIMATES –
USEFUL LIVES. Meridian uses its judgement in
determining the remaining useful lives and residual values
of assets, which are:
• generation structures and plant – up to 80 years
• buildings – up to 67 years
• other plant and equipment – up to 20 years.
The residual values and useful lives are reviewed,
and if appropriate adjusted, at each balance date.
Disposals or retirement
The gain or loss arising on the disposal or retirement of an item
of property, plant or equipment is determined as the difference
between the sale proceeds and the carrying amount of the
asset and is recognised in the income statement. Any balance
attributable to the disposed asset in the asset revaluation reserve is
transferred to retained earnings.
B2 INTANGIBLE ASSETS
$MSOFTWARE
Cost or fair value 181
Less accumulated amortisation(134)
Net book value at 30 June 2016 47
Additions 21
Transfers – property, plant and equipment 9
Amortisation expenses(19)
Net book value at 30 June 2017 58
Cost or fair value 211
Less accumulated amortisation(153)
Net book value at 30 June 2017 58
Additions 21
Transfers – property, plant and equipment 2
Amortisation expenses(21)
Net book value at 30 June 2018 60
Cost or fair value 150
Less accumulated amortisation(90)
Net book value at 30 June 2018 60
Software
Acquired computer software licences (that are not considered
an integral part of related hardware) are capitalised on the basis
of the costs incurred to acquire and bring to use the specific
software. Additionally, costs directly associated with the
production of identifiable and unique software products that
will generate economic benefits beyond one year are recognised
as intangible assets.
All these costs are amortised over their useful lives on
a straight-line basis.
Costs associated with maintaining computer software
programs are recognised as an expense as incurred.
KEY JUDGEMENTS AND ESTIMATES
– USEFUL LIVES. Meridian uses its judgement in
determining the remaining useful lives and residual values
of intangible assets, which are:
• electricity and gas retail platform – up to 5 years
• generation control – up to 10 years
• other software – up to 3 years.
These are reviewed, and if appropriate adjusted, at each
balance date.
Meridian Integrated Report 2018
00:97

C
MANAGING FUNDING
IN THIS SECTION. This section explains how Meridian manages its capital structure and working capital, the various
funding sources and how dividends are returned to shareholders. In this section of the notes there is information about:
a) equity and dividends
b) net debt
c) receivables and payables.
C1 CAPITAL MANAGEMENT
Capital risk management objectives
Meridian’s objective when managing capital is to provide
appropriate returns to shareholders whilst maintaining a capital
structure that safeguards its ability to remain a going concern and
optimises the cost of capital.
Capital is defined as the combination of shareholders’ equity,
reserves and net debt.
Meridian manages its capital through various means, including:
• adjusting the amount of dividends paid to shareholders
• raising or returning capital
• raising or repaying debt.
Meridian regularly monitors its capital requirements using various
measures that consider debt facility financial covenants and
credit ratings. The key measures are net debt to EBITDAF and
interest cover. The principal external measure is Meridian’s credit
rating from Standard & Poor’s.
Meridian is in full compliance with debt facility financial covenants.
RESTATED
NOTE
2018
$M
2017
$M
Share capitalC2 1,598 1,598
Retained earnings(1,010) (725)
Other reserves 4,235 4,222
4,823 5,095
Drawn borrowingsC7 1,428 1,158
Finance lease payableC8 48 47
Less: cash and cash equivalents C5(60) (80)
1,416 1,125
Net capital 6,239 6,220
RESTATED
NET DEBT TO EBITDAFNOTE
2018
$M
2017
$M
Drawn borrowingsC7 1,428 1,158
Finance lease payableC8 48 47
Operating lease commitmentsF4 76 71
Less: cash and cash equivalents C5(60) (80)
Add back: restricted cash C5 29 51
Add back: cash buffer
53
8 7
Net debt (A) 1,529 1,254
EBITDAF (B) 666 657
Net debt to EBITDAF (times) (A/B) 2.3 1.9
RESTATED
EBITDAF INTEREST COVERNOTE
2018
$M
2017
$M
EBITDAF (B) 666 657
Interest on borrowingsA3 74 70
Interest on finance leaseA3 6 6
Interest (C) 80 76
EBITDAF interest cover (times) (B/C) 8.3 8.6
Standard & Poor’s rating BBB+ BBB+
53 The cash buffer is calculated as 25 percent of unrestricted cash and cash equivalents.
FINANCIALS
00:98

C2 SHARE CAPITAL
20182017
SHARE CAPITALSHARES $MSHARES$M
Shares issued 2,563,000,000 1,600 2,563,000,000 1,600
Treasury shares held(560,596) (2) (1,057,903)(2)
Share capital 2,562,439,404 1,598 2,561,942,097 1,598
All shares issued are fully paid and have equal voting rights. All shares participate equally in any dividend distribution or any surplus
on the winding up of the company.
The movement in treasury shares relates to the purchase of shares by participants and held on trust as part of a long-term,
equity-settled incentive plan for New Zealand-based senior executives (refer note F1 Share-based payments).
C3 EARNINGS PER SHARE
BASIC AND DILUTED EARNINGS PER SHARE (EPS)20182017
Profit after tax attributable to shareholders of the parent company ($M)201200
Weighted average number of shares used in the calculation of EPS2,563,000,0002,563,000,000
Basic and diluted EPS (cents per share)7.87.8
C4 DIVIDENDS
DIVIDENDS DECLARED AND PAID
2018
$M
2017
$M
Interim ordinary and special dividend
2018: 7.82cps (cents per share)
(2017: 7.77cps) 200 199
Final ordinary and special dividend
2017: 11.14cps (2016: 10.84cps) 286 278
Total dividends paid 486 477
DIVIDENDS DECLARED AND NOT RECOGNISED AS A LIABILITY
Final ordinary dividend 2018: 8.94cps
(2017: 8.7cps) 229 223
Special dividend 2018: 2.44cps
(2017: 2.44cps) 63 63
IMPUTATION CREDIT BALANCE
Imputation credits available
for future use 29 35
Dividend policy
Meridian’s dividend policy considers free cash flow, working
capital requirements, the medium-term investment programme,
maintaining a BBB+ credit rating and risks from short- and
medium-term economic, market and hydrology conditions.
Imputation credit balance
Imputation credits allow Meridian to pass on to its shareholders
the benefit of the New Zealand income tax it has paid by attaching
imputation credits to the dividends it pays, reducing the
shareholders’ net tax obligations.
The imputation credits available for future use reflect the balance
available on 21 August 2018, therefore recognising any tax
payments between balance date and 21 August 2018.
SUBSEQUENT EVENT – DIVIDEND
DECLARED. On 21 August 2018 the Board declared a
partially imputed final ordinary dividend of 8.94 cents
per share. Additionally the Board declared an unimputed
special dividend of 2.44 cents per share.
Meridian Integrated Report 2018
00:99

C5 CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
2018
$M
2017
$M
Current account 60 80
Cash and cash equivalents 60 80
Cash and cash equivalents are made up of cash on hand, on-
demand deposits and other short-term, highly liquid investments
that are readily convertible to a known amount of cash and are not
subject to a significant risk of change in value.
Restricted cash
Meridian trades electricity hedges on the ASX using JP Morgan as a
broker. As a result, a proportion of the funds it holds on deposit is
pledged as margin, which varies depending on market movements
and contracts held.
At 30 June 2018, this collateral was $29 million (30 June 2017:
$51 million).
All other cash and cash-equivalent balances are available for use.
RECONCILIATION OF NET PROFIT AFTER TAX TO
CASH FLOWS FROM OPERATING ACTIVITIES
2018
$M
RESTATED
2017
$M
Net profit after tax 201 200
Adjustments for operating activities’ non-cash items:
Depreciation and amortisation 268 264
Movement in deferred tax(35) (29)
Net change in fair value of financial
instruments 26 21
Electricity option premiums (15) (15)
Share-based payments 1 1
245 242
Items classified as investing activities:
Impairment of assets 2 10
(Gain)/loss on sale of assets(7) 4
Australian stamp duty paid10 –
5 14
Changes in working capital items:
(Increase) in accounts receivable(1) (66)
(Increase) in customer contract assets(1) (3)
(Increase) in other assets–(9)
(Decrease)/increase in payables and
accruals/employee entitlements(20) 90
Increase in customer contract liabilities 6 1
Increase/(decrease) in current tax payable 13 (1)
Working capital items
in investing activities (14) (5)
Working capital items in financing
activities and other non-cash items(7) 7
(24) 14
Cash flow from operating activities 427 470
C6 TRADE RECEIVABLES
TRADE RECEIVABLES
2018
$M
2017
$M
Accrued receivables 197 205
Current billed 57 43
Past due 1 to 30 days 7 11
Past due 31 to 60 days 2 2
Past due 61 to 90 days 1 1
Past due greater than 90 days 2 4
Less: provision for doubtful debts(5) (6)
Total trade receivables 261 260
Accounts receivable past due
but not impaired 7 12
MOVEMENT IN PROVISION FOR DOUBTFUL DEBTS
2018
$M
2017
$M
Opening provision(6) (5)
Provision created in the year(5) (5)
Provision used in the year 6 4
Closing provision for doubtful debts(5) (6)
Trade receivables, measurement and recognition
Trade receivables are measured on initial recognition at fair value,
and are subsequently carried at amortised cost. The overdue
amounts are largely related to electricity sales to retail customers
in New Zealand and Australia.
Trade receivables written off during the year were $6 million
(30 June 2017: $4 million).
KEY JUDGEMENTS AND ESTIMATES
– DOUBTFUL DEBTS. Allowances are made for
estimated unrecoverable amounts (provision for
doubtful debts), and these are recognised in the income
statement. The provision for doubtful debts is measured
as the difference between the trade receivables carrying
amount and expected future cash flows. The future
cash flows have considered customer credit history and
historical recovery performance and trends.
FINANCIALS
01:00

C7 BORROWINGS
20182017
NZ$M
CURRENCY
BORROWED
IN
DRAWN
FACILITY
AMOUNT
TRANSACTION
COSTS PAID
FAIR VALUE
ADJUSTMENT
CARRYING
AMOUNT
DRAWN
FACILITY
AMOUNT
TRANSACTION
COSTS PAID
FAIR VALUE
ADJUSTMENT
CARRYING
AMOUNT
Current borrowings
Unsecured borrowings NZD 169 (1) – 168 171 (1) – 170
Unsecured borrowings USD 272 – 10 282 – – – –
Total current borrowings 441 (1) 10 450 171 (1) – 170
Non-current borrowings
Unsecured borrowings NZD 821 (3) – 818 556 (1) – 555
Unsecured borrowings USD 166 – 39 205 431 (1) 37 467
Total non-current
borrowings 987 (3) 39 1,023 987 (2) 37 1,022
Total borrowings 1,428 (4) 49 1,473 1,158 (3) 37 1,192
Borrowings, measurement and recognition
Borrowings are recognised initially at the fair value of the
drawn facility amounts, net of transaction costs paid.
Borrowings are subsequently stated at amortised cost
using the effective interest method. Any borrowings that
have been designated as hedged items (United States Dollar
[USD] borrowings) are carried at amortised cost plus a fair
value adjustment under hedge accounting requirements.
Any borrowings denominated in foreign currencies are
retranslated to the functional currency at each reporting
date. Any retranslation effect is included in the ‘Fair value
adjustment’ column in the table.
Meridian uses cross-currency interest rate swap (CCIRS) hedge
contracts to manage its exposure to interest rates and borrowings
sourced in currencies different from that of the borrowing entity’s
reporting currency.
Fair value of items held at amortised cost
20182017
NZ$M
CARRYING
VALUE
FAIR
VALUE
CARRYING
VALUE
FAIR
VALUE
Retail bonds500 514 300 311
Floating rate notes100 102 100 102
Unsecured term loan
(EKF facility)80 86 90 98
Within term borrowings there are longer-dated instruments that
are not in hedge accounting relationships. The carrying values
and estimated fair values of these instruments are noted in the
table above.
Fair value is calculated using a DCF calculation, and the resultant
values are classified as level 2 within the fair value hierarchy. The
retail bonds are listed instruments; however, a lack of liquidity on
the NZX precludes them being classified as level 1 (a definition of
levels is included in D1 Financial risk management on page 103).
Carrying value approximates fair value for all other instruments
within term borrowings.
Reconciliation of liabilities arising from financing activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes.
2018
NZ$M
BALANCE
AT 1 JULY
2017
TERM
BORROWINGS
DRAWN
TERM
BORROWINGS
REPAID
FAIR VALUE
ADJUSTMENTS
FOREIGN
EXCHANGE
TRANSACTION
COSTS PAID
& ACCRUED
FINANCE
LEASE PAID
BALANCE
AT 30 JUNE
2018
Unsecured borrowings – NZD 725 462 (200) – – (1) – 986
Unsecured borrowings – USD 467 – – 12 7 1 – 487
Finance lease 47 – – – 2 – (1) 48
Total 1,239 462 (200) 12 9 – (1) 1,521
Meridian Integrated Report 2018
01:01

C7 BORROWINGS continued
20182017
SOURCES OF FUNDING – NZ$M
CURRENCY
BORROWED IN
FACILITY
AMOUNT
DRAWN
FACILITY
AMOUNT
UNDRAWN
FACILITY
AMOUNT
FACILITY
AMOUNT
DRAWN
FACILITY
AMOUNT
UNDRAWN
FACILITY
AMOUNT
Bank facilities
New Zealand bank funding
54
NZD 650 164 486 525 84 441
EKF funding
55
NZD 80 80 – 90 90 –
Total bank facilities 730 244 486 615 174 441
Other sources of borrowing
Retail bonds
56
NZD 500 500 – 300 300 –
Floating rate notes
54
NZD 100 100 – 100 100 –
Fixed rate bonds
57
USD 439 439 – 431 431 –
Commercial paper
58
NZD 145 145 – 153 153 –
Total other sources of borrowing 1,184 1,184 – 984 984 –
Total sources of funding 1,914 1,428 486 1,599 1,158 441
54 Funding bears interest at the relevant market floating rate plus
a margin.
55 The EKF facility is an unsecured 10-year amortising term loan, provided
by the official export credit agency of Denmark, for the construction of
Te Uku wind farm.
56 Retail bonds are senior unsecured retail bonds bearing interest rates of
4.53 percent, 4.88 percent and 4.21 percent.
57 USD fixed rate bonds are unsecured fixed rate bonds issued in the
United States Private Placement Market.
58 NZD commercial paper comprises senior unsecured short-term debt
obligations paying a fixed rate of return over a set period of time.
C8 FINANCE LEASE PAYABLE
FINANCE LEASE PAYABLE ANALYSIS
2018
$M
2017
$M
Minimum lease payments
Not later than 1 year 7 7
Later than 1 year and not later than
3 years 14 14
Later than 3 years and not later than
5 years 13 13
Later than 5 years 89 91
Gross investment in finance lease 123 125
Less future finance costs(75) (78)
Present value of minimum
lease payments 48 47
Analysed as:
Not later than 1 year 1 1
Later than 1 year and not later than
3 years 2 2
Later than 3 years and not later than
5 years 2 2
Later than 5 years 43 42
Gross investment in finance lease 48 47
Comprising:
Current 1 1
Non-current 47 46
48 47
Finance lease payable, measurement and recognition
A finance lease transfers substantially all the risks and rewards
of ownership to the lessee. Meridian recognises the present value
of minimum lease payments under finance lease arrangements as
a finance lease payable. Resulting repayments are split between
principal and interest expense. The interest reflects a constant
periodic charge over the term of the lease. Finance lease payables
are classified as financial liabilities at amortised cost.
Finance lease details
Meridian’s finance leases relate to certain transmission assets
that connect wind farms at Mill Creek and Mt Mercer to the
transmission network.
Meridian reported a finance lease interest expense of $6 million
(30 June 2017: $6 million) in finance costs in the income statement.
The net book value of assets subject to finance leases and
included in note B1 Property, plant and equipment is $42 million
(30 June 2017: $35 million). All assets are classified as other plant
and equipment.

FINANCIALS
01:02

D
FINANCIAL INSTRUMENTS USED TO MANAGE RISK
IN THIS SECTION. This section explains the financial risks Meridian faces, how these risks affect Meridian’s financial
position and performance, and how Meridian manages these risks. In this section of the notes there is information:
a) outlining Meridian’s approach to financial risk management
b) analysing financial (hedging) instruments used to manage risk.
D1 FINANCIAL RISK MANAGEMENT. Meridian’s
activities expose it to a variety of financial risks. Its financial
risk management framework focuses on the unpredictability of
financial markets and wholesale electricity markets. The Board
approves policies including Group Treasury, Electricity Hedging
and Credit Policies that set appropriate principles and risk
tolerance levels to guide Management in carrying out financial
risk management activities to minimise potential adverse effects
on the financial performance and economic value of the Group.
In order to hedge certain risk exposures, Meridian uses derivative
financial instruments (hedges). These hedges are not always
designated in a hedging relationship for accounting purposes.
Meridian does not enter into speculative trades.
FINANCIAL INSTRUMENT RECOGNITION. Meridian
designates or classifies financial hedging instruments as:
• fair value hedges – hedges of the fair value of recognised
assets or liabilities or a firm commitment
• cash flow hedges – hedges of a particular cash flow
associated with a recognised asset or liability or a highly
probable forecast transaction
• held for trading, financial instruments that have not been
designated in hedging relationships.
Hedging instruments are recognised at fair value on the dates
the contracts are agreed and are remeasured on a periodic basis.
The recognition of movements in fair value depends upon the
hedging instrument and its designation or classification. Realised
gains or losses are recognised in the income statement or balance
sheet on the same line as the hedged item.
Fair value hedge
Changes in the fair value of hedges that are designated and
qualify as fair value hedges are recorded in the income statement,
together with any changes in the fair value of the hedged assets
or liabilities that are attributable to the hedged risks. If a hedge
no longer meets the criteria for hedge accounting, the adjustment
to the carrying amount of the hedged item is amortised to the
income statement over the period to maturity.
Cash flow hedge
Changes in the fair value of hedges that are designated and
qualify as cash flow hedges and are considered effective for
accounting purposes are recognised in the cash flow hedge
reserve (in equity) and in other comprehensive income. The
gain or loss relating to any ineffective element is recognised
immediately in the income statement.
Amounts accumulated in other comprehensive income are
recycled in the income statement in the periods when the forecast
transactions take place.
Held for trading
Hedges that do not qualify for hedge accounting or for which
hedge accounting is not actively sought are classified as being
held for trading, with changes in fair value recognised immediately
in the income statement.
FAIR VALUE OF HEDGING FINANCIAL
INSTRUMENTS. The recognition and measurement of hedging
financial instruments require management estimations and
judgement (this is discussed in further detail later in this note).
These estimates can have a significant risk of material adjustment
in future periods. Fair value measurements are grouped within
a three-level fair value hierarchy based on the observability of
valuation inputs (described below).
• Level 1 inputs – quoted prices (unadjusted) in active markets
for identical assets or liabilities that the entity can access at
the measurement date.
• Level 2 inputs – either directly (i.e. that is, as prices) or
indirectly (derived from prices) observable inputs other than
quoted prices included in level 1.
• Level 3 inputs – inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
Meridian Integrated Report 2018
01:03

D1 FINANCIAL RISK MANAGEMENT continued
MANAGEMENT OF MERIDIAN’S KEY FINANCIAL
RISKS AND THE FAIR VALUE OF INSTRUMENTS
USED TO MANAGE THEM
Management monitor the size and nature of retail customer
exposure and act to mitigate a risk if it is deemed to exceed
acceptable levels.
Individual credit limits are set for wholesale electricity customers
based on internal or external credit ratings in accordance with
limits set by the Board. Where customers are not independently
credit rated, an assessment of credit quality is made, taking into
account financial position, past experience and other relevant
factors. These assessments and the utilisation of credit limits
and security provided by wholesale customers are reviewed and
monitored by the Chief Financial Officer.
For banks and financial institutions, only independently related
parties with a minimum rating of ‘A’ are accepted.
The carrying amounts of financial assets recognised on the
balance sheet best represent Meridian’s maximum likely exposure
to credit risk at the date of this report. Meridian does not have any
significant credit risk concentrations.
Meridian maintains flexibility in funding by keeping committed
surplus credit lines available of at least $200 million, which ensures
that it has sufficient headroom under normal and abnormal
conditions (see C7 Borrowings for details of undrawn facilities).
In addition to borrowings, Meridian has entered into a number
of letters of credit and performance guarantee arrangements
that provide credit support of $79 million for the collateral
requirements of Meridian’s trading business (30 June 2017:
$124 million). Meridian indemnifies the obligations of the bank
in respect of the letters of credit and performance guarantees
issued by the bank to counterparties of Meridian.
Funding risks. Meridian manages its funding requirements on
a portfolio basis. This portfolio is made up of a mix of funding
sources and borrowing tenures that expose Meridian to interest
rate changes and, where borrowing is made in currencies other
than the reporting currency, to foreign exchange changes.
Meridian swaps a significant portion of its borrowings to floating
rates at loan inception, and hedges the resulting interest rate
exposure over a tenure-based profile of fixed interest rate swaps.
This is achieved using a combination of Cross Currency Interest
Rate Swap (CCIRS) and Interest Rate Swap (IRS) hedges. Where
Meridian borrows in foreign currencies it uses CCIRSs to swap all
foreign-currency-denominated interest and principal repayments
to the reporting currency. This results in floating rate borrowings
in the entity’s reporting currency. Meridian uses IRS hedges to fix
floating interest rates in line with the Board-approved hedging
policy and profile.
CREDIT RISK. Meridian is exposed to the risk of
default in relation to: electricity sales to wholesale and
retail customers, hedging instruments, guarantees and
deposits held with banks and other financial institutions.
LIQUIDITY RISK. Meridian is exposed to the dynamic
nature of the electricity market and weather patterns,
which can affect liquidity.
FINANCIALS
01:04

D1 FINANCIAL RISK MANAGEMENT continued
FAIR VALUE ON THE
BALANCE SHEET
FAIR VALUE
MOVEMENTS IN THE
INCOME STATEMENT
OUTSTANDING
AGGREGATE NOTIONAL
PRINCIPALS
59
201820172018201720182017
LEVEL
ASSETS
$M
LIABILITIES
$M
ASSETS
$M
LIABILITIES
$M$M$M$M$M
Treasury hedges 61 (114) 52 (114) (3) 55
CCIRS – fair value hedge 2 4 - 27 (3) - 1 439 431
Converts fixed interest borrowings to floating in the originating currency, with changes in fair value recorded in the income statement in
‘Net change in fair value of treasury instruments’, together with changes in fair value hedge adjustments on the designated borrowings.
See note C7 Borrowings.
CCIRS – cash flow hedge 2 (1) – – (3) – – 439 431
Converts floating interest in the originating borrowing currency to the reporting currency of the borrowing entity with a credit margin.
Changes in fair value relating to the effective hedge portion are recognised in other comprehensive income, with any ineffective portion
recognised in the income statement within ‘Net change in fair value of treasury instruments’.
CCIRS – foreign exchange
retranslation 2 44 – 16 (2) – – 439 431
Converts foreign currency borrowing into the reporting currency. The impact of retranslation on the CCIRS is recorded in the income
statement in ‘Net change in fair value of treasury instruments’ and is offset by equal and opposite retranslation effects on the related
USD borrowings.
IRS 2 14 (114) 9 (106) (3) 54 1,837 1,915
Classified as held for trading, with changes in fair value recognised in the income statement within ‘Net change in fair value of
treasury instruments’.
Sensitivity analysis
This table summarises the impacts of changes in significant inputs
(assuming all other variables are held constant) on the valuation
of treasury hedges and therefore on Meridian’s after-tax profit
and equit y.
Note that changes in the fair value of the CCIRS are fully offset by
opposite impacts from hedge accounting entries and the foreign
exchange retranslation of the fixed-rate bonds. Therefore the
CCIRS profit and loss sensitivity is nil and they are not shown in
the table below.
IMPACT ON AFTER-TAX
PROFIT AND EQUITY
$MSENSITIVITY
20182017
Interest rates
New Zealand
benchmark bill rate
-100 basis
points (bps)(37) (36)
+100 bps 36 32
Australian
benchmark bill rate
-100 bps(4) (4)
+100 bps 4 4
Foreign exchange contracts are used to hedge known, material,
highly probable commitments of foreign currency exposures.
If hedge accounting is applied, a combination of both cash flow
and fair value hedges is created.
The gain or loss on the hedge is included as a component of the
hedged transaction. If hedge accounting is not applied, hedges
are classified as held for trading and changes in fair value are
recognised in the income statement within ‘Net change in fair
value of treasury instruments’.
FAIR VALUE ON THE
BALANCE SHEET
FAIR VALUE
MOVEMENTS IN THE
INCOME STATEMENT
OUTSTANDING
AGGREGATE NOTIONAL
PRINCIPALS
201820172018201720182017
LEVEL
ASSETS
$M
LIABILITIES
$M
ASSETS
$M
LIABILITIES
$M$M$M$M$M
Foreign exchange hedges 2 – – 1 – (1) – 13 16
59 These cover multiple legs including offsetting legs and maturities out to 2026.
FOREIGN EXCHANGE RISK. Meridian is exposed
to foreign exchange risk arising from the sale and
procurement of goods and services denominated in
foreign currencies (primarily the British pound and
Australian dollar).
Meridian Integrated Report 2018
01:05

D1 FINANCIAL RISK MANAGEMENT continued
Electricity price and volume risk
Meridian is exposed to changes in the spot price of electricity
it receives for electricity generated or pays to buy electricity to
supply customers. Additionally, inflows to Meridian’s storage lakes
are variable, therefore the volume of electricity required
to supply customers may exceed generation production.
Meridian uses a hedging strategy that focuses on its net exposure
by estimating both the expected generation and electricity
purchases required to support contracted sales. The execution of
this strategy is guided by Board-approved parameters.
The electricity hedges, LGC forward contracts, options and
holdings are classified as held for trading, and changes in fair
value are recognised in the income statement within ‘Net change
in fair value of electricity and other hedges’.
FAIR VALUE ON THE
BALANCE SHEET
FAIR VALUE
MOVEMENTS IN THE
INCOME STATEMENT
OUTSTANDING
AGGREGATE NOTIONAL
VOLUMES
60
201820172018201720182017
LEVEL
ASSETS
$M
LIABILITIES
$M
ASSETS
$M
LIABILITIES
$M$M$M
Electricity-related hedges 152 (67) 178 (77) (22) (76)
Market traded electricity hedges: 1 30 (9) 21 (29) 24 (22) 10,422GWh 9,242GWh
Meridian trades hedges on various exchange-based markets.
Other electricity hedges: 3 13 (52) 41 (29) (51) (51) 26,667GWh 30,513GWh
Meridian also trades hedges with other electricity generators, retailers and customers. These hedges are generally long-term,
large-volume contracts that manage specific risks that cannot be managed through futures markets.
Electricity options: 3 87 – 98 – (11) (22) 5,123GWh 6,256GWh
Meridian trades electricity options with other generators. These are used to support the management of inflow and storage variability
in the catchments where it generates electricity.
Large Scale Generation Certificates:
Meridian’s Australian wind farms earn Renewable Energy Certificates (RECs) in the form of Large Scale Generation Certificates (LGCs).
Additionally, Powershop Australia is required to purchase and surrender RECs. Forward contracts and options are used to firm prices
received for LGCs generated and consequently reduce the profit volatility of each wind farm. At the time of generation, LGCs are
recognised as income in energy margin at the prevailing spot price. LGC holdings, forward contracts and options are accumulated and
all recognised as financial instruments on the balance sheet at their fair value.
LGC – holdings created from
wind farm generation 1 17 – 16 – – (2) 0.2 million 0.2 million
LGC – forward and
option contracts
61
2 5 (6) 2 (19) 16 21 1.4 million 1.9 million
Settlements
The following provides a summary of the settlements through EBITDAF for financial instruments.
20182017
ELECTRICITY
HEDGES
LGCs
ELECTRICITY
OPTIONS TOTAL
ELECTRICITY
HEDGES
LGCs
ELECTRICITY
OPTIONSTOTAL
Operating revenue(41) 35 – (6) 23 30 – 53
Operating expenses 27 (12) 6 21 (23) (9) 1 (31)
Total settlements in EBITDAF(14) 23 6 15 – 21 1 22
60 These cover multiple offsetting contracts and maturities out to 2030.
61 The LGC forward and option contracts have been transferred from level 3, as inputs derived from observable market prices are now available
to value them.
FINANCIALS
01:06

D1 FINANCIAL RISK MANAGEMENT continued
Sensitivity analysis
The table below summarises the impacts of changes in significant inputs (assuming all other variables are held constant) on the
valuation of electricity-related hedges and therefore on Meridian’s after-tax profit and equity.
IMPACT ON AFTER-TAX
PROFIT AND EQUITY
$MSENSITIVITY20182017
Electricity hedges and options
62
Electricity prices
-10%(48) (54)
+10% 48 55
Discount rates
-100bps 1 3
+100bps(1) (3)
Call volumes
-10%(6) (7)
+10% 6 7
LGCs
LGC prices
-10% 4 4
+10%(4) (4)
62 The majority of impacts on after-tax profit and equity result from level 3 hedges.
FAIR VALUE TECHNIQUE AND KEY INPUTS.
In estimating the fair value of an asset or liability, Meridian
uses market-observable data to the extent that it is available.
The Audit and Risk Committee of Meridian determines the
overall appropriateness of key valuation techniques and
inputs for fair value measurement. The Chief Financial Officer
explains fair value movements in his reports to the Board.
Where the fair value of a financial instrument is calculated
as the present value of the estimated future cash flows of the
instrument (DCFs), a number of inputs and assumptions are
used by the valuation technique. These are:
• forward price curves referenced to the ASX for
electricity, published market interest rates and
published forward foreign exchange rates
• Meridian’s best estimate of electricity volumes called
over the life of electricity options
• discount rates based on the forward IRS curve adjusted
for counterparty risk
• the calibration factor applied to forward price curves
as a consequence of initial recognition differences
• NZAS continues to operate
• contracts run their full terms.
The table below describes the additional key inputs and techniques used in the valuation of level 2 and 3 electricity-related hedges.
FINANCIAL ASSET
OR LIABILITYDESCRIPTION OF INPUT
RANGE OF SIGNIFICANT
UNOBSERVABLE INPUTS
RELATIONSHIP OF INPUT
TO FAIR VALUE
Electricity hedges,
valued using DCFs
Price: where quoted prices are not
available or not relevant (that is, for
long-dated contracts), Meridian’s best
estimate of long-term forward wholesale
electricity price is used. This is based on a
fundamental analysis of expected demand
and the cost of new supply and any other
relevant wholesale market factors
$60/MWh to $108/MWh
(in real terms), excludes
observable ASX prices
An increase in the forward
wholesale electricity price
increases the fair value of
buy hedges and decreases
the fair value of sell hedges.
A decrease in the forward
wholesale electricity price has
the opposite effect
LGC forward
contracts
and options
valued using DCFs/
Black-Scholes
Price, based on a forward LGC price
curve from a third-party broker, and
benchmarked against market spot prices.
Another factor is the calibration
factor applied to forward price
curves as a consequence of initial
recognition differences
A$27 to A$79An increase in the forward LGC
price decreases the fair value
of sell hedges and increases
the fair value of buy hedges.
A decrease in the forward LGC
prices has the opposite effect
Meridian Integrated Report 2018
01:07

D1 FINANCIAL RISK MANAGEMENT continued
Level 3 financial instrument analysis
The following provides a summary of the movements through EBITDAF and movements in the fair value of level 3 financial instruments:
20182017
RECONCILIATION OF LEVEL 3 FAIR
VALUE MOVEMENTS $M
ELECTRICITY
HEDGES LGCS
ELECTRICITY
OPTIONS TOTAL
ELECTRICITY
HEDGES LGCS
ELECTRICITY
OPTIONS TOTAL
Electricity and other hedges
settled in EBITDAF:
Operating revenue(41) – – (41) 25 – – 25
Operating expenses 27 – 6 33 (23) – 1 (22)
Total settlements in EBITDAF(14) – 6 (8) 2 – 1 3
Net change in fair value of
electricity and other hedges:
Remeasurement(65) – (5) (70) (49) – (21) (70)
Hedges settled 14 – (6) 8 (2) – (1) (3)
Total net change in fair value
of electricity and other hedges(51) – (11) (62) (51) – (22) (73)
Balance at the beginning of
the period 12 – 98 110 63 (38) 120 145
Transfers to level 2 – – – – – 38 – 38
Fair value movements(51) – (11) (62)(51) – (22) (73)
Balance at the end of the year (39) – 87 48 12 – 98 110
During 2017, LGC options and forwards were transferred to level 2 as inputs derived from observable market prices are available
to value them.
Fair value movements of level 3 electricity hedges in 2018 that are held at balance date total $(44) million (30 June 2017: $(65) million).
Movements in recalibration differences arising from
electricity hedges and options
2018
$M
2017
$M
Opening difference 6 (55)
Initial differences on new hedges and
options – –
Volumes expired and amortised (1) 8
Recalibration for future price
estimates and time – 53
Closing difference 5 6
Initial recognition difference
An initial recognition difference arises when the modelled
value of an electricity hedge differs from the transaction
price (which is the best evidence of fair value). This difference
is accounted for by recalibrating the valuation model by a
fixed percentage to result in a value at inception equal to the
transaction price. This recalibration is then applied to future
valuations over the life of the contract.
The resulting difference shown in the table reflects potential
future gains or losses yet to be recognised in the income
statement over the remaining life of the contract.

FINANCIALS
01:08

D1 FINANCIAL RISK MANAGEMENT continued
Financial instruments that are offset
In certain circumstances Meridian offsets the fair value of financial instruments where it has legal agreements in place that permit
netting of positions and net settlement.
20182017
$M
GROSS
VALUE
VALUE
OFFSET
CARRYING
VALUE
GROSS
VALUE
VALUE
OFFSET
CARRYING
VALUE
Financial instrument assets
Electricity and other hedges 197 (4 5) 152 249 (71) 178
Treasury hedges 61 – 61 53 – 53
Total financial instrument assets 258 (4 5) 213 302 (71) 231
Financial instrument liabilities
Electricity and other hedges(112) 45 (67) (148) 71 (77)
Treasury hedges(114) – (114) (114) – (114)
Total financial instrument liabilities(226) 45 (181) (262) 71 (191)
Net financial instruments 32 – 32 40 – 40
Contractual maturities
The following tables are an analysis of the contractual undiscounted cash flows (settlements expected under the contracts) relating to
financial liabilities and a reconciliation from total undiscounted cash flows to carrying amounts.
Meridian expects to meet its future obligations from operating cash flows and debt financing.
2018
$M
DUE
WITHIN
1 YEAR
DUE IN
1-2
YEARS
DUE IN
3-5
YEARS
DUE
AFTER
5 YEARS
TOTAL
UNDISCOUNTED
CASH FLOWS
IMPACT OF
OTHER NON-
CASH ITEMS
IMPACT OF
INTEREST/FX
DISCOUNTING
2018
CARRYING
VALUE
Borrowings 501 101 538 571 1,711 (4) (234) 1,473
Finance leases 7 14 13 89 123 – (75) 48
Payables, accruals, provisions
and option premiums 295 30 53 32 410 – (29) 381
IRSs 29 25 51 28 133 – (19) 114
CCIRSs – – – – – – – –
Electricity hedges 20 8 25 10 63 3 (5) 61
LGCs 6 – – – 6 – – 6
858 178 680 730 2,446 (1) (362) 2,083
2017
$M
DUE
WITHIN
1 YEAR
DUE IN
1-2
YEARS
DUE IN
3-5
YEARS
DUE
AFTER
5 YEARS
TOTAL
UNDISCOUNTED
CASH FLOWS
IMPACT OF
OTHER NON-
CASH ITEMS
IMPACT OF
INTEREST/FX
DISCOUNTING
2017
CARRYING
VALUE
Borrowings 216 380 263 521 1,380 (4) (184) 1,192
Finance leases 7 14 13 91 125 – (78) 47
Payables, accruals, provisions
and option premiums 311 28 64 18 421 – (8) 413
IRSs 32 26 46 24 128 – (22) 106
CCIRSs – 12 – – 12 – (4) 8
Electricity hedges 25 14 10 10 59 2 (3) 58
LGCs 13 7 – – 20 – (1) 19
604 481 396 664 2,145 (2) (300) 1,843
Meridian Integrated Report 2018
01:09

E
GROUP STRUCTURE
IN THIS SECTION. This section provides information to help readers understand the Meridian Group structure and
how it affects the financial position and performance of the Group. In this section of the notes there is information about
Meridian’s subsidiaries.
E1 SUBSIDIARIES. The consolidated financial statements include the financial statements of Meridian Energy Limited and the
subsidiaries listed below.
They all have share capital consisting solely of ordinary shares that the Group holds directly, and the proportions of ownership interests
held equal the Group’s voting rights.
Meridian Energy Limited provides support to its subsidiaries where necessary in order to ensure they meet their obligations as they fall due.
INTEREST HELD
BY THE GROUP
NAME OF ENTITYPRINCIPAL ACTIVITY
FUNCTIONAL
CURRENCY20182017
Meridian Energy Limited
Powershop New Zealand LimitedElectricity retailingNew Zealand dollar100%100%
Flux Federation LimitedSoftware developmentNew Zealand dollar100%100%
Flux-UK Limited
63
Licence holderBritish pound100%100%
Three River Holdings No. 1 Limited
64
Holding companyNew Zealand dollar100%100%
Three River Holdings No. 2 Limited
64
Holding companyNew Zealand dollar100%100%
Meridian Energy Australia Pty Limited
64
Management servicesAustralian dollar100%100%
GSP Energy Pty LimitedElectricity generationAustralian dollar100%–
Meridian Finco Pty Limited
64
Financing Australian dollar100%100%
Meridian Energy Markets Pty Limited
64
Non-trading entityAustralian dollar100%100%
Meridian Wind Monaro Range Holdings Pty Limited
64
Holding companyAustralian dollar100%100%
Meridian Wind Monaro Range Pty Limited
64
Holding companyAustralian dollar100%100%
Mt Millar Wind Farm Pty Limited
64
Electricity generationAustralian dollar100%100%
Meridian Australia Holdings Pty Limited
64
Holding companyAustralian dollar100%100%
Meridian Wind Australia Holdings Pty Limited
64
Holding companyAustralian dollar100%100%
Mt Mercer Wind Farm Pty Limited
64
Electricity generationAustralian dollar100%100%
Powershop Australia Pty LimitedElectricity retailingAustralian dollar100%100%
Dam Safety Intelligence LimitedProfessional servicesNew Zealand dollar100%100%
Meridian LTI Trustee LimitedTrus teeNew Zealand dollar100%100%
Meridian Energy Captive Insurance LimitedInsurance New Zealand dollar100%100%
Meridian LimitedNon-trading entityNew Zealand dollar100%100%
Meridian Energy International LimitedNon-trading entityNew Zealand dollar100%100%
63 On 4 June 2018, Powershop UK Limited changed its name to Flux-UK Limited.
64 Members of guaranteeing group.
FINANCIALS
01:10

E1 SUBSIDIARIES continued
On 1 July 2017, Powershop New Zealand Limited sold the electricity
and gas retail platform and supporting business assets as well as
its full shareholding in Flux-UK Limited (previously Powershop UK
Limited) to Flux Federation Limited (a wholly owned subsidiary
of Meridian). Powershop New Zealand Limited continues to retail
electricity in New Zealand and provide frontline customer and
back-office services to Powershop Australia Pty Limited.
On 25 May 2017, Meridian established Flux Federation Limited as a
subsidiary responsible for developing and licensing the electricity
and gas retail platforms.
On 4 November 2016, Dam Safety Intelligence Limited was
incorporated as a subsidiary of the Group, to provide dam safety
consultancy services.
On 29 March 2018 Meridian Energy Australia Pty Limited
purchased 100 percent of the shares in GSP Energy Pty Limited
(GSP) for $182 million (A$166 million). GSP operates three
hydro power stations: the Hume, Burrinjuck and Keepit power
stations, located in New South Wales, Australia. The generation
produced from these stations will support sales to Powershop
Australia customers.
The total consideration paid and recognised in the financial
statements is as follows:
GROUP
2018
$M
Purchase price 184
Working capital adjustment(2)
Cash consideration paid 182
Acquisition-related costs have been excluded from the total
consideration paid and have been recognised as an expense in
the income statement in the current year within other expenses.
In addition, Meridian Energy Australia Pty Ltd paid stamp duty
of $10 million (A$9 million) to Revenue NSW, which has been
recognised in tax expense in the income statement.
The allocation of the purchase price is as follows:
GROUP
2018
$M
Net assets acquired 182
182
The net assets acquired on 29 March 2018 consisted of the following:
GROUP
2018
$M
Accounts receivable 4
Property, plant and equipment 184
Total assets acquired 188
Accounts payable(5)
Current tax payable(1)
Total liabilities assumed(6)
Net assets acquired 182
Impact of acquisition on the results of the Group
Included in the income statement for the year is $2.3 million
attributable to the additional revenue generated by GSP and
EBITDAF of $0.7 million.
Had the acquisition of GSP been effected at 1 July 2017,
the revenue of the Group from continuing operations would have
been $28.3 million.
Meridian Integrated Report 2018
01:11

F
OTHER
IN THIS SECTION. This section includes the remaining information relating to Meridian’s financial statements, which is
required to comply with financial reporting standards.
F1 SHARE-BASED PAYMENTS
Long-term incentive (LTI)
The LTI is a share loan and cash bonus scheme, where executives
purchase Meridian shares via an interest-free loan from the
company, with the shares held on trust by the LTI plan trustee.
Any shares awarded depend on whether the following
performance hurdles are met over a three-year period:
• The company’s absolute TSR must be positive
• The company’s TSR compared to a benchmark peer group.
If the performance hurdles have been achieved, a progressive
vesting scale is applied to determine how many shares vest:
• If the company’s TSR over the three-year period exceeds
the 50th percentile TSR of the benchmark peer group,
at least 50% of an executive’s shares will vest
• 100% shares will vest on meeting the 75th percentile
TSR of the peer group, with vesting on a straight-line
basis between these two points
• No shares will vest if the company’s TSR is less than the
50th percentile TSR of the peer group.
Once the vesting level has been confirmed, a cash amount
(after the deduction of tax, but before other applicable salary
deductions), is used to repay the executive’s outstanding
loan balance.
For each three-year plan, an independent external expert
measures the TSR of Meridian and the peer group of companies
along with the outcome on the progressive vesting scale. If the
TSR is not positive (that is, in absolute terms, it is less than zero),
or if TSR does not meet the peer group relative TSR hurdle of
50th percentile, all of the shares are forfeited to the trustee
and the relevant executive receives no benefits under the
LTI. Where the TSR is greater than the 50th percentile of the
benchmark peer group, but below the 75th percentile, shares
are allocated on a percentage basis and any that have not
vested will also be forfeited.
For the LTI plan that vested at the end of FY18, the level of vesting
was 100%. Therefore, $0.7 million of interest-free loans that were
granted by the company to LTI participants in 2016 has now been
repaid and a total amount of 439,565 shares have been transferred
to the eligible participants.
Movement in zero-priced share options
NUMBER OF OPTIONS
GRANT
DATE
VESTING
DATE
WEIGHTED
AVERAGE FAIR
VALUE OF OPTION
BALANCE AT
THE START
OF THE YEAR
GRANTED
DURING
THE YEAR
VESTED
DURING
THE YEAR
FORFEITED
DURING
THE YEAR
BALANCE AT
THE END OF
THE YEAR
2018
07/09/201730/06/2020$1.38 – 344,016 – (41,483) 302,533
04/08/201630/06/2019$1.63 456,205 – – (198,142) 258,063
03/09/201530/06/2018$1.20 544,848 – (4 39,565) (105,283) –
Total 1,001,053 344,016 (4 39,565) (344,908) 560,596
2017
04/08/201630/06/2019$1.63 – 456,205 – – 456,205
03/09/201530/06/2018$1.20 544,848 – – – 544,848
17/09/201430/06/2017$1.04 614,325 – (614,325) – –
Total 1,159,173 456,205 (614,325) – 1,001,053
FINANCIALS
01:12

F2 RELATED PARTIES
Meridian transacts with other Government-owned or related
entities independently and on an arm’s-length basis.
Transactions cover a variety of services including trading
energy, transmission, postal, travel and tax.
Directors of the Group may be directors or officers of other
companies or organisations with which members of the Group
may transact.
Compensation of key management personnel
The remuneration of directors and other members of key
management during the year was as follows:
GROUP
2018
$M
2017
$M
Directors’ fees 1 1
Chief Executive, Executive Team and subsidiary chief executives
Salaries and short-term benefits 7 6
Post-employment benefits – –
Redundancy benefits – –
Long-term benefits 1 2
8 8
F3 AUDITOR’S REMUNERATION
GROUP
2018
$M
2017
$M
Audit and review of New Zealand-
based companies’ financial
statements 0.5 0.5
Audit of overseas-based companies’
financial statements 0.2 0.1
Total audit fees 0.7 0.6
Other assurance fees 0.1 0.1
Total auditor remuneration 0.8 0.7
The Board has adopted a policy to maintain the independence
of the Company’s external auditor, including a review of all other
services performed by Deloitte Limited and recommending to the
Office of the Auditor-General that there be lead partner rotation
after a maximum of five years. The Auditor-General appointed
Trevor Deed of Deloitte Limited as auditor of the company in the
last financial year.
The audit fee includes an Office of the Auditor-General overhead
contribution of $29,500 (30 June 2017: $28,600).
Other services undertaken by Deloitte Limited during the year
included other assurance activities including reviews of carbon
emissions, sustainability information, securities registers, vesting
of the Executive Long-Term Incentive Plan, solvency return of
insurance captive and supervisor reporting.
F4 COMMITMENTS
GROUP
NON-CANCELLABLE OPERATING LEASE
COMMITMENTS ARE AS FOLLOWS:
2018
$M
2017
$M
Less than 1 year 7 6
Later than 1 year and not later than
3 years 12 10
Later than 3 years and not later than
5 years 12 8
More than 5 years 45 47
Total operating lease commitments 76 71
GROUP
CAPITAL EXPENDITURE COMMITMENTS
2018
$M
2017
$M
Property, plant and equipment 4 13
Software 1 –
Total capital expenditure
commitments 5 13
Operating leases, measurement and recognition
Operating leases are leases where the lessor effectively retains
substantially all the risks and benefits of ownership of the
leased items.
Operating lease payments are recognised in other operating
expenses on a straight-line basis over the term of the lease.
Lease payments were $6 million in FY18 (30 June 2017: $6 million).
In Australia, Meridian has entered into lease agreements for land
when developing wind farms. These leases range up to 25 years
with options to renew.
Meridian also leases office space, with terms of the leases
ranging from 1 to 12 years, with options to extend up to 11 years.
Lease contracts contain rent review clauses, including Consumer
Price Index increases and market rental reviews, in the event that
Meridian exercises its options to renew.
Guarantees
Meridian Energy Limited provided a bank guarantee of
A$38 million (30 June 2017: A$38 million) to the financiers of
the purchaser of the Macarthur Wind Farm, guaranteeing that
it will comply with its various obligations under the Refinancing
Coordination Deed.
Meridian Energy Limited has provided parent guarantees
for various construction and grid connection obligations of
Mt Mercer Wind Farm Pty Limited. The maximum liability under
these guarantees is A$33 million (30 June 2017: A$35 million).
Meridian Integrated Report 2018
01:13

F5 CONTINGENT ASSETS AND LIABILITIES
The Ministry of Business, Innovation and Employment (MBIE) is
currently reviewing Meridian’s approach to the application of
amounts under the Holidays Act 2003. The review has identified
a potential issue with a specific point of law. Meridian and MBIE
are intending to jointly seek legal clarification and depending on
the outcome, there is a possibility that an underpayment ranging
between $3-4 million will apply.
Apart from the guarantees referred to in F4 Commitments,
there were no other contingent assets or liabilities at 30 June 2018
(30 June 2017: Nil).
F6 SUBSEQUENT EVENTS
There have been no subsequent events other than dividends
declared on 21 August 2018 (refer to note C4 Dividends for
further details).
F7 CHANGES IN FINANCIAL REPORTING STANDARDS
In the current year, Meridian has adopted all mandatory new and
amended standards. The application of these new and amended
standards has affected the amounts recognised or disclosed in
the financial statements as set out in significant matters
in the financial year on page 88.
Meridian is not aware of any standards issued but not yet effective
(other than those listed below) that would materially affect the
amounts recognised or disclosed in the financial statements.
NZ IFRS 9 Financial Instruments (effective 1 January 2018).
NZ IFRS 9 will be effective in Meridian’s 2019 financial year.
This standard requires all financial assets to be measured at
fair value, unless the entity’s business model is to hold the
assets to collect contractual cash flows, and contractual terms
give rise to cash flows that are solely payments of interest and
principal, in which case they are measured at amortised cost.
The standard also broadens the eligibility for hedge accounting
as it introduces an objectives-based test that focuses on the
economic relationship between hedged items and hedging
instruments. Meridian has commenced the process to assess
whether currently fair valued financial instruments could be
hedge accounted. Meridian expects there to be no balance sheet
change, merely a potential shift from the income statement to
other comprehensive income.
NZ IFRS 16 Leases (effective 1 January 2019). NZ IFRS 16 will be
effective in Meridian’s 2020 financial year. It will fundamentally
change the way leases are accounted for by lessees. Currently,
leases are accounted for as either on-balance-sheet finance
leases or off-balance-sheet operating leases (by lessees).
Under the new accounting standard, these will be replaced by
a single, on-balance-sheet model for all leases, which is similar
to the current finance lease approach. The full impact of this
standard has not yet been fully assessed, although it is likely that
certain lease obligations will in future be capitalised as assets the
post implementation. Meridian’s current finance lease position
can be seen in note C8 Finance lease payable on page 102, and
operating lease position in note F4 Commitments on page 113.
FINANCIALS
01:14

INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF
MERIDIAN ENERGY LIMITED GROUP
The Auditor-General is the auditor of Meridian
Energy Limited and its subsidiaries (the Group).
The Auditor-General has appointed me, Trevor
Deed, using the staff and resources of Deloitte
Limited, to carry out the audit of the consolidated
financial statements of the Group on his behalf.
OPINION.
We have audited the consolidated financial
statements of the Group on pages 83 to 114, that comprise
the consolidated balance sheet as at 30 June 2018, and the
consolidated income statement, consolidated comprehensive
income statement, consolidated statement of changes in equity
and consolidated statement of cash flows for the year ended on
that date, and the notes to the consolidated financial statements,
including a summary of significant accounting policies and other
explanatory information.
In our opinion, the consolidated financial statements of the Group
on pages 83 to 114 present fairly, in all material respects, the
consolidated financial position of the Group as at 30 June 2018,
and its consolidated financial performance and consolidated cash
flows for the year then ended in accordance with New Zealand
Equivalents to International Financial Reporting Standards and
International Financial Reporting Standards.
BASIS FOR OPINION. We conducted our audit in
accordance with the Auditor-General’s Auditing Standards,
which incorporate the Professional and Ethical Standards and
the International Standards on Auditing (New Zealand) issued by
the New Zealand Auditing and Assurance Standards Board. Our
responsibilities under those standards are further described in
the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report. We are independent
of the Group in accordance with the Auditor-General’s Auditing
Standards, which incorporate Professional and Ethical Standard 1
(Revised) Code of Ethics for Assurance Practitioners issued by the
New Zealand Auditing and Assurance Standards Board, and we
have fulfilled our other ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Other than the audit, our firm carries out other assurance
assignments for the Group in the areas of greenhouse gas
inventory and sustainability reporting assurance, review
of the interim financial statements, audit of the securities
registers, vesting of the executive long-term incentive plan,
the solvency return of Meridian Captive Insurance Limited
and supervisor reporting, which are compatible with those
independence requirements.
In addition, principals and employees of our firm deal with
the Group on arm’s length terms within the ordinary course of
trading activities of the Group. These services have not impaired
our independence as auditor of the Group. Other than these
engagements and arm’s length transactions, and in our capacity
as auditor acting on behalf of the Auditor-General, we have no
relationship with, or interests in, the Group.
AUDIT MATERIALITY. We consider materiality primarily
in terms of the magnitude of misstatement in the financial
statements of the Group that in our judgement would make
it probable that the economic decisions of a reasonably
knowledgeable person would be changed or influenced (the
‘quantitative’ materiality). In addition, we also assess whether
other matters that come to our attention during the audit would
in our judgement change or influence the decisions of such a
person (the ‘qualitative’ materiality). We use materiality both
in planning the scope of our audit work and in evaluating the
results of our work.
We determined materiality for the Group financial statements as a
whole to be $16 million.
Meridian Integrated Report 2018
01:15

KEY AUDIT MATTERS. Key audit matters are those matters
that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current
period. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate
opinion on these matters.
KEY AUDIT MATTERSHOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTERS
VALUATION OF GENERATION STRUCTURES AND PLANT
As explained in note B1 in the Group financial statements,
generation structures and plant are carried at fair value less
any subsequent accumulated depreciation and impairment
losses at the balance sheet date.
The net book value of generation structures and plant as
reflected in note B1 is $7,776 million (2017: $7,774 million).
The Group obtains an independent valuation every year to
ensure that the carrying value does not differ significantly
from the fair value at balance date. In the current year no
revaluation was accounted for in the financial statements as
the Group assessed that the carrying value is a reasonable
representation of the fair value as at 30 June 2018.
A revaluation gain of $428 million was booked in 2017.
We include valuation of generations structures and plant
as a key audit matter because of the inherent technical and
judgemental complexity associated with the capitalised
earnings and discounted cash flow valuation techniques
for determining the enterprise and business unit values,
specifically the determination of the forecast future
maintainable earnings and earnings multiple, and the
forecast cash flows and discount rates.
Our audit procedures focused on:
• The reasonableness of the earnings multiple used
• The reasonableness of the forecasted future maintainable earnings and
• The reasonableness of the allocations of the enterprise value to
business units/assets.
Our procedures included:
• Evaluating the Group’s processes for the independent valuation of the
generation structures and plant
• Reviewing the valuation methodology and the reasonableness of the
significant underlying assumptions
• Assessing the competence, objectivity and integrity of the independent
registered valuer. We assessed their professional qualifications and
experience. We also obtained representation from them regarding their
independence and the scope of their work
• Meeting with the valuer to understand the valuation process adopted, to
identify and challenge the critical judgement areas in the valuation, and
• Utilising our in-house valuation specialist to assess the appropriateness
of the valuation methodology and challenge the reasonableness of
the underlying key assumptions. Our specialist particularly focused
on the assumptions in respect of earnings multiple, forecasted future
maintainable earnings, the discount rate used in the discounted cash
flow and the long-term energy market outlook.
VALUATION OF LEVEL 3 ELECTRICITY DERIVATIVES
As explained in note D1, the Group’s activities expose it to
electricity wholesale price, currency and interest rate risks
which are managed using derivative financial instruments.
These instruments are carried at their fair value as at
30 June 2018.
At 30 June 2018, level 3 electricity derivative assets totalled
$100 million (2017: $139 million) and level 3 electricity
derivative liabilities were $52 million (2017: $29 million).
We include valuation of level 3 electricity derivatives as a key
audit matter for the following reasons:
• The price used in the valuation of electricity hedges is
based on the Group’s best estimate of long-term forward
wholesale electricity prices, which involves significant
judgment and estimates regarding discount factors,
expected demand, cost of new supply, and other relevant
market factors; and
• The complexity and judgment involved in the valuation
techniques and the judgement involved in evaluating the
long-term expected call volume and discount factor used
to determine the fair value of electricity options and swaps.
Our audit procedures focused on:
• The appropriateness of the valuation techniques
• The reasonableness of the wholesale electricity price path, and
• The reasonableness of the underlying assumptions and inputs in the
valuation models.
Our procedures included:
• In conjunction with our internal experts we evaluated the
appropriateness of the methodology applied in the valuation models for
these electricity hedges, options and swaps
• Challenging the key assumptions applied, including the long-term
forward wholesale electricity prices, day one adjustment and discount
rate, and
• Agreeing underlying data to contract terms, specifically the contract
term, price and volumes.
01:16
INDEPENDENT AUDITOR’S REPORT

OTHER INFORMATION. The Directors are responsible
on behalf of the Group for the other information. The other
information comprises the information included on pages 1 to 82,
but does not include the consolidated financial statements, and
our auditor’s report thereon.
Our opinion on the consolidated financial statements does not
cover the other information and we do not express any form of
audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial
statements, our responsibility is to read the other information and
in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing
to report in this regard.
DIRECTORS’ RESPONSIBILITIES FOR THE
CONSOLIDATED FINANCIAL STATEMENTS.
The Directors are responsible on behalf of the Group for the
preparation and fair presentation of the consolidated financial
statements in accordance with New Zealand Equivalents to
International Financial Reporting Standards and International
Financial Reporting Standards and for such internal control as
the Directors determine is necessary to enable the preparation
of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors
are responsible on behalf of the Group for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern
basis of accounting unless the Directors either intend to liquidate
the Group or to cease operations, or have no realistic alternative
but to do so.
The Directors’ responsibilities arise from the Financial Markets
Conduct Act 2013.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT
OF THE CONSOLIDATED FINANCIAL STATEMENTS.
Our objectives are to obtain reasonable assurance about whether
the consolidated financial statements, as a whole, are free from
material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit carried out in accordance with the
Auditor-General’s Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the
decisions of shareholders taken on the basis of these consolidated
financial statements.
We did not evaluate the security and controls over the electronic
publication of the audited information.
As part of an audit in accordance with the Auditor-General’s
Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Group’s
internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of the use of the going
concern basis of accounting by the directors and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as
a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial
statements represent the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities
within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with the Directors regarding, among other
matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the Directors with a statement that we
have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine
those matters that were of most significance in the audit of the
consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Our responsibilities arise from the Public Audit Act 2001.
TREVOR DEED, Partner
for Deloitte Limited
On behalf of the Auditor-General
Wellington, New Zealand
21 August 2018
Meridian Integrated Report 2018
01:17

REPORT ON THE SUSTAINABILITY CONTENT OF THE
2018 INTEGRATED REPORT. We have been engaged by the
Directors to conduct a limited assurance engagement relating to
the sustainability content prepared in accordance with the GRI
Standards: Core Option on pages 4 to 51 of the 2018 Integrated
Report (the ‘Integrated Report’) of Meridian Energy Limited (the
‘Group’) for the year ended 30 June 2018.
CONCLUSION. This conclusion has been formed on the basis
of, and is subject to, the inherent limitations outlined elsewhere in
this independent assurance report.
Based on the evidence obtained from the procedures we have
performed, nothing has come to our attention that causes us
to believe that the sustainability content included in Meridian’s
2018 Integrated Report has not been prepared, in all material
respects, in accordance with the ‘Core’ requirements of the Global
Reporting Initiative’s Sustainability Reporting Standards (‘the GRI
Standards’), for the year ended 30 June 2018.
BASIS FOR CONCLUSION. Our engagement has been
conducted in accordance with International Standard on
Assurance Engagements (New Zealand) 3000: Assurance
Engagements Other than Audits or Reviews of Historical Financial
Information (‘ISAE (NZ) 3000’) issued by the New Zealand Auditing
and Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our conclusions.
BOARD OF DIRECTOR’S RESPONSIBILITY. The Board of
Directors, on behalf of the Group, is responsible for:
• ensuring that the Integrated Report is prepared in
accordance with the GRI Standards: Core Option;
• determining Meridian’s objectives in respect of sustainability
reporting; and
• establishing and maintaining appropriate performance
management and internal control systems in order to derive
the sustainability information.
The specific GRI Standards reported against are outlined in the
GRI Index on pages 120 to 124.
OUR INDEPENDENCE AND QUALITY CONTROL.
We have complied with the independence and other ethical
requirements of Professional and Ethical Standard 1 (Revised):
Code of Ethics for Assurance Practitioners issued by the
New Zealand Auditing and Assurance Standards Board, which
is founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and
professional behaviour.
Other than this engagement and our role as auditor of the
statutory financial statements on behalf of the Auditor-General,
our firm carries out other assignments for the Group in the areas
of greenhouse gas inventory assurance, review of the interim
financial statements, audit of the securities registers, vesting of
the executive long-term incentive plan, the solvency return of
Meridian Captive Insurance Limited and supervisor reporting,
which are compatible with those independence requirements.
In addition, principals and employees of our firm deal with the
Group on arm’s length terms within the ordinary course of trading
activities of the Group. These services have not impaired our
Independence. Other than these engagements and arm’s length
transactions, and in our capacity as auditor acting on behalf of the
Auditor-General, we have no relationship with, or interests in,
the Group.
The firm applies Professional and Ethical Standard 3 (Amended):
Quality Control for Firms that Perform Audits and Reviews of
Financial Statements, and Other Assurance Engagements issued
by the New Zealand Auditing and Assurance Standards Board,
and accordingly maintains a comprehensive system of quality
control including documented policies and procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
INDEPENDENT ACCOUNTANT’S RESPONSIBILITY.
Our responsibility is to conduct a limited assurance engagement
in order to express a conclusion whether, based on the procedures
performed, anything has come to our attention that causes us to
believe that the sustainability content included in Meridian’s 2018
Integrated Report has not been prepared, in all material respects,
in accordance with the ‘Core’ requirements of the GRI Standards’,
for the period ended 30 June 2018.
INDEPENDENT ACCOUNTANT’S
ASSURANCE REPORT TO THE DIRECTORS
OF MERIDIAN ENERGY LIMITED
01:18
INDEPENDENT ACCOUNTANT’S ASSURANCE REPORT

We did not evaluate the security and controls over the electronic
publication of the sustainability content.
In a limited assurance engagement, the assurance practitioner
performs procedures, primarily consisting of discussion and
enquiries of management and others within the entity, as
appropriate, and observation and walk-throughs, and evaluates
the evidence obtained. The procedures selected depend on our
judgement, including identifying areas where the risk of material
non-compliance with the GRI Standards is likely to arise.
Our procedures included:
• Obtaining an understanding of the internal control
environment, risk assessment process and information
systems relevant to the sustainability reporting process;
• A review of the materiality process followed to determine
the material topics chosen for inclusion in the Report;
• Analytical review and other test checks of the
information presented;
• Checking whether the appropriate indicators have been
reported in accordance with the GRI Standards: Core Level,
and the GRI Electricity Utilities Sector Supplement; and
• Evaluating whether the information presented is consistent
with our overall knowledge and experience of the
sustainability processes of the Group.
The procedures performed in a limited assurance engagement
vary in nature and timing from, and are less in extent than for,
a reasonable assurance engagement. Consequently, the level
of assurance obtained in a limited assurance engagement
is substantially lower than the assurance that would have
been obtained had a reasonable assurance engagement been
performed. Accordingly, we do not express a reasonable
assurance opinion about whether the Group’s Integrated Report
has been prepared, in all material respects, in accordance with
the Core requirements of the GRI Standards.
INHERENT LIMITATIONS. Because of the inherent
limitations of any limited assurance engagement, it is possible
that fraud, error or non-compliance may occur and not be
detected. A limited assurance engagement is not designed
to detect all instances of non-compliance with the Core
requirements of the GRI Standards as it generally comprises
making enquiries, primarily of the responsible party, and applying
analytical and other review procedures. The conclusion expressed
in this report has been formed on the above basis.
A limited assurance engagement does not provide assurance on
whether compliance with the GRI Standards will continue in the
future or any forward looking statements made in the report.
USE OF REPORT. Our assurance report is made solely to
the directors of Meridian Energy Limited in accordance with
the terms of our engagement. Our work has been undertaken
so that we might state to the directors those matters we have
been engaged to state in this assurance 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 directors of
Meridian Energy Limited for our work, for this assurance report,
or for the conclusions we have reached.
Auckland, New Zealand
21 August 2018
Meridian Integrated Report 3021
01:19

65 Disclosures starting with “EU” are from the Electricity Sector Supplement.
66 Non-GRI – some material topics and disclosures listed above are additional or alternatives to those covered in the GRI Standards.
67 Each Disclosure of Management Approach includes “103-1 Explanation of the material topic and its Boundaries”, “103-2 The management approach and
its components”, and “103-3 Evaluation of the management approach”, in accorance with GRI 103: Management Approach 2016.
GRI STANDARDS CONTENT INDEX
This report has been prepared in accordance with the GRI Standards: Core option.
The specific GRI Standards reported against are in italics below.
GRI 101: FOUNDATION 2016
GENERAL DISCLOSURESPG #COMMENT
GRI 102: GENERAL DISCLOSURES 2016
ORGANISATIONAL PROFILE
102-1Name of organisationFront cover
102-2Activities, brands, products, and services6-7
102-3Location of headquarters125
102-4Location of operations6-7Also see meridianenergy.co.nz/asset-map
102-5Ownership and legal form6
102-6Markets served6-7
102-7Scale of the organisation6-7
102-8Information on employees and other workers62
102-9Supply chain6-7
102-10Significant changes2
102-11Precautionary principle or approach39Our approach to environmental management includes the
precautionary-principle-based approach of relevant legislation
102-12External initiativesZero Harm pledge, Climate Leaders Coalition, Sustainable
Business Council’s Platform for Action on Climate and
Emissions (PACE)
102-13Memberships of associations35
EU1
65
Installed capacity6
EU2Net energy output6
EU3Number of customer accounts7
EU4Transmission and distribution linesn/aLength insignificant
EU5Allocation of CO
2
e emissions allowancesn/aNo emissions allowances received
STRATEGY
102-14Statement from senior decision-maker10-17
ETHICS AND INTEGRITY
102-16Values, principles, standards,
and norms of behavior
12-13Also see our Corporate Governance Statement on our website:
meridianenergy.co.nz/investors/governance/
GOVERNANCE
102-18Governance structure4-5Also see our Corporate Governance Statement on our website:
meridianenergy.co.nz/investors/governance/
STAKEHOLDER ENGAGEMENTS
102-40List of stakeholder groups 18-20
102-41Collective bargaining agreements62
102-42Identifying and selecting stakeholders21
102-43Approach to stakeholder engagement18, 4, 7, 34, 35, 39, 40, 51
102-44Key topics and concerns raised18-20
01:20
GLOBAL REPORTING INITIATIVE INDEX

GENERAL DISCLOSURESPG #COMMENT
Reporting practice
102-45Entities included in the consolidated
financial statements
110-111
102-46Defining report content and topic Boundaries21
102-47List of material topics18-20Also see this GRI Content Index
102-48Restatements of informationDiscussed throughout the report where relevant
102-49Changes in reportingNone, other than increased focus on climate change
102-50Reporting period2
102-51Date of most recent report2
102-52Reporting cycle2
102-53Contact point for questions regarding
the report
125
102-54Claims of reporting in accordance
with the GRI Standards
120
102-55GRI content index120
102-56External assurance policy2
MATERIAL TOPICS AND ASSOCIATED DICLOSURESPG #COMMENT
ECONOMIC
Financial performance
66
GRI 103: MANAGEMENT APPROACH 2016
67
15-16
Non-GRI
66
Various financial measures64-70
Financial impacts of hydrology
66
GRI 103: MANAGEMENT APPROACH 2016
16
Non-GRIFinancial implications of variability
in hydrology
16
Financial impacts of climate change
GRI 103: MANAGEMENT APPROACH 2016
27
GRI 201: ECONOMIC PERFORMANCE 2016
201-2Financial implications and other risks and
opportunities due to climate change
27
Pipeline of generation options
66
GRI 103: MANAGEMENT APPROACH 2016
24-25
EU10Planned capacity against demand24-25
ENVIRONMENTAL
Action on climate change
66
GRI 103: MANAGEMENT APPROACH 2016
14-16, 24-28
Non-GRIProportion of Meridian Group generation
from renewable resources
24
Non-GRISupport for customers’ climate change
mitigation actions
27-28
Non-GRIParent company corporate emissions26
Non-GRIParent corporate emissions reduction target26
Non-GRIFunds raised for community energy projects
in Australia
33
Meridian Integrated Report 2018
01:21

MATERIAL TOPICS AND ASSOCIATED DICLOSURESPG #COMMENT
Operational carbon emissions
GRI 103: MANAGEMENT APPROACH 2016
26-27
GRI 305: EMISSIONS 2016
305-1Direct (Scope 1) GHG emissions27
Also see our Meridian Group Greenhouse Gas Inventory
Report FY18 on our website: meridianenergy.co.nz/about-us/
sustainability/green-house-gas-emissions-reports
305-2Energy indirect (Scope 2) GHG emissions27
305-3Other indirect (Scope 3) GHG emissions27
Impact on water
GRI 103: MANAGEMENT APPROACH 2016
39
GRI 303: WATER AND EFFLUENTS 2018
303-1Interactions with water as a shared resource39-40
303-2Management of water
discharge-related impacts
41
303-3Water withdrawal40
303-4Water discharge40
303-5Water consumption40
Impact on biodiversity
GRI 103: MANAGEMENT APPROACH 2016
40-41
GRI 304: BIODIVERSITY 2016
304-2Significant impacts of activities,
products, and services on biodiversity
40-41
Environmental compliance
GRI 103: MANAGEMENT APPROACH 2016
39
GRI 307: ENVIRONMENTAL COMPLIANCE 2016
307-1Non-compliance with environmental
laws and regulations
39
LABOUR PRACTICES
Employee engagement
66
GRI 103: MANAGEMENT APPROACH 2016
51
Non-GRIEmployee engagement surveys51
Occupational health and safety
GRI 103: MANAGEMENT APPROACH 2016
42
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
403-1Occupational health and safety
management system
42
403-2Hazard identification, risk assessment,
and incident investigation
42
403-3Occupational health services42
403-4Worker participation, consultation,
and communication on occupational
health and safety
42
403-5Worker training on occupational
health and safety
42
01:22
GLOBAL REPORTING INITIATIVE INDEX

MATERIAL TOPICS AND ASSOCIATED DICLOSURESPG #COMMENT
403-6Promotion of worker health42
403-7Prevention and mitigation of occupational
health and safety impacts directly linked
by business relationships
42
403-8Workers covered by an occupational
health and safety management system
42
403-9Work-related injuries42
Non-GRITotal recordable injury frequency rate (TRIFR)42
Diversity and equal opportunity
GRI 103: MANAGEMENT APPROACH 2016
47-50
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016
405-1Diversity of governance bodies
and employees
49, 62, 71
405-2Ratio of basic salary and
remuneration of women to men
49
Non-GRIWomen in people leadership
and senior specialist positions
50
Retaining expertise
66
GRI 103: MANAGEMENT APPROACH 2016
41
EU15Tenure by age41
SOCIETY
Access to water
66
GRI 103: MANAGEMENT APPROACH 2016
38-40
Non-GRIStrength of relationships with
stakeholders interested in water
39-41Includes central government, local government, Ngāi Tahu
and other iwi, local community groups and the general public
Contribution to local communities
GRI 103: MANAGEMENT APPROACH 2016
39-40
GRI 413: LOCAL COMMUNITIES 2016
413-1Operations with local community
engagement, impact assessments,
and development programs
13 out of our 14 power stations have local community
engagement programmes (Mt Millar doesn’t) – 93%
Non-GRIContribution to local communities
in New Zealand
40
Non-GRINumber of community fund grants
in New Zealand
40
Contribution to public policy
GRI 103: MANAGEMENT APPROACH 2016
35
GRI 415: PUBLIC POLICY 2016
415-1Political contributions74Meridian does not donate to any political parties
(as specified in Code of Conduct)
Non-GRIExpenditure on “lobbying” organisations
such as trade associations
35
Non-GRIKey regulatory issues17, 29, 35
Meridian Integrated Report 2018
01:23

MATERIAL TOPICS AND ASSOCIATED DICLOSURESPG #COMMENT
Product Responsibility
Customer satisfaction
66
GRI 103: MANAGEMENT APPROACH 2016
34-35
Non-GRILevel of customer satisfaction34
Non-GRICustomer retention rates (churn)35
Electricity pricing
66
GRI 103: MANAGEMENT APPROACH 2016
29, 35
Non-GRIPrice of electricity in AU and NZ
compared to other other OECD countries
35
Support for vulnerable customers
GRI 103: MANAGEMENT APPROACH 2016
28-29
EU27Disconnections28
Plant performance
66
GRI 103: MANAGEMENT APPROACH 2016
42-43
EU30Plant availability factor43
Process safety
66
GRI 103: MANAGEMENT APPROACH 2016
42
Non-GRIActions to improve process safety42
01:24
GLOBAL REPORTING INITIATIVE INDEX

DIRECTORY
Registered office
Meridian Energy Limited
33 Customhouse Quay
Wellington Central
Wellington 6011
New Zealand
PO Box 10840
The Terrace
Wellington 6143
New Zealand
T +64 4 381 1200
F +64 4 381 1201
Offices
Quad 7, Level 2
6 Leonard Isitt Drive
Auckland Airport
Auckland 2022
New Zealand
PO Box 107174
Auckland Airport
Auckland 2150
New Zealand
T +64 9 477 7800
287-293 Durham Street North
Christchurch Central
Christchurch 8013
New Zealand
PO Box 2146
Christchurch 8140
New Zealand
T +64 3 357 9700
Corner of Market Place
and Mackenzie Drive
Twizel 7901
New Zealand
Private Bag 950
Twizel 7944
New Zealand
T +64 3 435 9393
Australian registered office
Meridian Energy
Australia Pty Limited
Level 15
357 Collins Street
Melbourne VIC 3000
Australia
T +61 3 8370 2100
F +61 3 9620 5235
Flux Federation offices
86 Customhouse Quay
Wellington Central
Wellington 6011
New Zealand
T +64 (0)4 389 0859
Level 15
357 Collins St
Melbourne VIC 3000
Australia
9th Floor, Quayside Tower
252-260 Broad Street
Birmingham B1 2HF
United Kingdom
Powershop
Level 3
147 Tory Street
Wellington 6011
New Zealand
T +64 0800 1000 60
PO Box 7651
Newtown
Wellington 6242
New Zealand
Share Registrar New Zealand
Computershare
Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna,
Auckland 0622
New Zealand
Private Bag 92119
Victoria Street West
Auckland 1142
New Zealand
T +64 9 488 8777
F +64 9 488 8787
enquiry@computershare.co.nz
investorcentre.com/nz
Share Registrar Australia
Computershare
Investor Services Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford
VIC 3037
Australia
GPO Box 3329
Melbourne VIC 3001
Australia
T 1800 501 366 (within Australia)
T +61 3 9415 4083 (outside Australia)
F +61 3 9473 2500
enquiry@computershare.co.nz
Auditor
Trevor Deed, Partner
Financial audit on behalf of
the Office of the Auditor-General
Jason Starchrski, Partner
GRI Standards assurance
Deloitte
PO Box 1990
Wellington 6140
New Zealand
Banker
Westpac Wellington
New Zealand
Directors
Chris Moller, Chair
Peter Wilson, Deputy Chair
Mark Cairns
Jan Dawson
Mary Devine
Anake Goodall
Stephen Reindler
Mark Verbiest
Executive Team
Neal Barclay, Chief Executive
Paul Chambers
Jacqui Cleland
Ed McManus
Mike Rogan
Julian Smith
Jason Stein
Guy Waipara
If you have any questions
or comments, please email
investors@meridianenergy.co.nz or
service@meridianenergy.co.nz

20:18
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practices and principles. Please recycle.
ISSN 1173-6275 (print)
ISSN 1173-6305 (online)
meridian.co.nz
INTEGRATED REPORT
FOR THE YEAR ENDED 30 JUNE 2018

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Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
28 September, 201817 October, 2018
Not ApplicableNot Applicable
$$0.0095$0.0299
NZ Dollars$0.0136
$229,132,200
Date Payable
17 October, 2018
Enter N/A if not
applicable
NZMELE0002S7
In dollars and cents
Retained Earnings
$0.0894
Ordinary Shares
+64 4 381 12002282018
EMAIL: announce@nzx.com
Notice of event affecting securities
1
Meridian Energy Limited
Jason SteinDirectors' resolution

---

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
✓
whether:
InterimYearSpecial
✓
DRP 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
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Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per securityPayment
(does not include any excluded income)
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(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
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issue state strike priceWithholding Tax(Give details)
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(Refer Appendix 8 in the NZSX Listing Rules)
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For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
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of applications this must be the
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conversion notices mailedMust be within 5 business days
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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:
28 September, 201817 October, 2018
Not ApplicableNot Applicable
$62,537,200
Date Payable
17 October, 2018
$$0.0081$0.0000
In dollars and cents
Retained Earnings
$0.0244
NZ Dollars$0.0000
Enter N/A if not
applicable
Ordinary Shares
NZMELE0002S7
EMAIL: announce@nzx.com
Notice of event affecting securities
1
Meridian Energy Limited
Jason SteinDirectors' resolution
+64 4 381 12002282018

---

M
E
R
I
D
I
A
N

E
N
E
R
G
Y

L
I
M
I
T
E
D

2
0
1
8

A
N
N
U
A
L

R
E
S
U
L
T
S

P
R
E
S
E
N
T
A
T
I
O
N

LONG RUN
THE

I
N
T
R
O
D
U
C
T
I
O
N

Meridian Energy Limited 2018 Annual Results Presentation
2

3
A

S
N
A
P
S
H
O
T

O
F

O
U
R

P
E
R
F
O
R
M
A
N
C
E

Meridian Energy Limited 2018 Annual Results Presentation

42%
33%
78%
98%
40%
84%
100%
0%
20%
40% 60% 80%
100%
120%
Women in the
business
Women in senior
roles
Engagement Gender pay parity
%
EMPLOYEE MEASURES
FY18
Target
O
U
R

P
E
O
P
L
E

 
78% of our people are highly engaged

 
50% of our people are shareholders.
Directors and officers hold 1.9m shares

 
No serious injuries during the year

 
Physical and mental health is top of mind

 
Targeting 40% of women in people
leadership and senior specialist positions

 
Currently 98% gender pay parity

 
Voluntary increase in parental leave to 22
weeks

 
Rainbow Tick accreditation supports our
diversity and inclusion

 
Conventional remuneration framework:

 
Fixed: base salary and KiwiSaver

 
STI: cash, profit-based

 
LTI: equity, relative TSR-based

 
Enduring partnerships with KidsCan and
Kākāpō Recovery
Engaged and committed people
Global top 10%
benchmark
19%
33%
31%
17%
14%
0%
5%
10%
15%
20%
25%
30%
35%
2014 2015 2016 2017 2018
%
Financial Year ended 30 June
TOTAL SHAREHOLDER RETURN
Meridian
Peer group median
Meridian Energy Limited 2018 Annual Results Presentation
4
Source: Meridian Source: Meridian

O
U
R

S
U
S
T
A
I
N
A
B
I
L
I
T
Y

L
E
A
D
E
R
S
H
I
P

 
Meridian now net zero carbon across
Group operations

 
Pursuing greater decarbonisation of NZ’s
energy system
1
(41% of carbon emissions)

 
Potential to add 75% to electricity demand

 
Pathway to higher renewable participation
has to address potential dry period energy deficit

 
Meridian Australia’s green credentials are
well ahead of the wider market
Climate change
 
Hardship programme to support
vulnerable customers

 
Advocate for distribution pricing reform

 
Supporter of some industry change and
broader social policy reform

 
Converting ourselves to electric vehicles
Affordable and clean energy
Meridian Energy Limited 2018 Annual Results Presentation
5
1
Largely non-renewable fuelled road transport, manufacturing, construction and domestic heating

O
U
R

M
A
R
K
E
T
S

Meridian Energy Limited 2018 Annual Results Presentation
6

N
E
W

Z
E
A
L
A
N
D

D
E
M
A
N
D

 
Continued economic and population
growth during FY18

 
Generally above average temperatures
during the financial year

 
Periods of cold conditions during the
current winter

 
Growth in most regions and irrigation
0.8% growth in FY18
+1.1%
-0.1%
-1.7%
-0.9%
+2.6%
+0.3%
-0.6%
+0.8%
-2%
-1%
0%
1%
2% 3%
2011 2012 2013 2014 2015 2016 2017 2018
%
Financial Year ended 30 June
ANNUAL DEMAND CHANGE SINCE 2010

 
Medium term economic growth expected

 
Policy settings should encourage
decarbonisation

 
Assumptions vary on rate of electrification
of the wider energy system

 
Electrification of the whole light vehicle
fleet represents 19% demand growth

 
Smelter’s 50MW contract represents 1%
demand growth
Different, positive views on future demand
Meridian Energy Limited 2018 Annual Results Presentation
7
Source: Electricity Authority
Source: Meridian
30
40
50
60
70 80 90
1998 2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050
TWh
DEMAND FORECASTS
NZ Historical Demand Transpower MBIE - High MBIE - Low Productivity Comm. - High Productivity Comm. - Low Meridian - High Meridian - Low

N
E
W

Z
E
A
L
A
N
D

S
U
P
P
L
Y

 
North Island storage was above average for
all but 33 days of FY18

 
Varying South Island storage; two
successive dry periods in 1H FY18, storage above average through all of Q4 FY18

 
ASX futures prices finished FY18 lower than
June 2017

 
82% renewable generation in FY18
High FY18 North Island inflows
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18
GWh
NEW ZEALAND LAKE STORAGE
Actual
Average
South Island North Island

 
0.5%-1% demand growth in the short term
is possible

 
Medium term growth could be higher with
greater electrification and plant retirement

 
Depending on views, equivalent of two or
more mid-sized wind farms needed annually over the longer term

 
Consent maturity is near dated
New generation needs
Meridian Energy Limited 2018 Annual Results Presentation
8
0
3,000
6,000 9,000
12,000 15,000
2018 2020 2022 2024 2026 2028 2030 2032 2034
GWh
NZ CONSENT MATURITY
Geothermal
Gas
Wind
Tidal
Hydro
Source: NZX
Source: Meridian

Worst case dry
deficit
Coal storage
Gas storage
Demand
response
HYDRO INFLOW DEFICIT CHALLENGE
N
E
W

Z
E
A
L
A
N
D

P
O
L
I
C
Y

A
N
D

R
E
G
U
L
A
T
I
O
N

 
Agriculture means NZ has one of the
highest per capita rates of emissions

 
32 million tonnes of carbon emissions from
the wider (non-agricultural) sectors could be removed through electrification

 
Converting all fossil fuel based energy use
to renewables could add 75% to electricity demand
Zero Carbon New Zealand by 2050
5%
17%
20%
49%
6%
3%
NZ 2016 SECTOR EMISSIONS
Electricity Road transport Stationary energy* Agricultural Industrial processes Waste
*manufacturing (including milk processing), construction and commercial sectors and domestic heating

 
Potential hydro inflow deficit is currently
managed through thermal capacity and fuel storage

 
Industry shift needed to manage risk as
renewable levels increase and coal exits the system

 
Current battery technology is not suited to
long-term energy storage needs
Renewable electricity grid
5,000
GWh
inflow
deficit

extreme
dry
winter
1-3,000
GWh

storage
and
import
potential
1,000
GWh

potential
storage
and
additional
supplies
1,500
GWh
Swing energy sources
Potential energy deficit ex-coal
Meridian Energy Limited 2018 Annual Results Presentation
9
Source: Ministry for the Environment
Source: Meridian

0
20
40 60 80
100
120
140 160 180
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
$M
TRANSPOWER HVDC REVENUE
N
E
W

Z
E
A
L
A
N
D

P
O
L
I
C
Y

A
N
D

R
E
G
U
L
A
T
I
O
N

 
Review will examine whether prices are
efficient, fair and equitable

 
Review will be forward looking and
consider the entire electricity market

 
Issues paper to be published in September

 
Followed by consultation in early 2019 on
options to address any problems

 
Findings and recommendations are due to
Ministers by May 2019
Electricity price review
 
Beneficiaries pay approach to be central to
EA’s new TPM proposal
–
for all future and
at least some recent major investment

 
Now preparing their policy proposal
including new cost benefit analysis

 
Update from EA in December 2018

 
Status quo cost reduction signalled by
Transpower
Transmission pricing
+0.9%
+2.9%
+0.2%
-2.6%
+1.4%
-0.7%
+7.0%
+4.3%
+6.6%
-0.5%
+3.6%
+2.9%
+3.2%
+3.5%
+2.8%
-1.7%
+2.4%
+0.8%
-4%
-2%
0%
2%
4% 6% 8%
10%
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
% change
AVERAGE RESIDENTIAL ELECTRICITY COST
Energy & other component
Lines component
Total
Meridian Energy Limited 2018 Annual Results Presentation
10
Source: Ministry of Business, Innovation and Employment
Source: Transpower, Meridian

A
U
S
T
R
A
L
I
A
N

M
A
R
K
E
T

 
Liberal National coalition in power,
election between late 2018 and mid 2019

 
More interventionist approach to energy

 
NEG is the Federal Government’s attempt
to coordinate energy and climate policy, Federal and State negotiations continue

 
Dealing with Liberal Party right wing that is
pro-coal and anti-renewables

 
Different degrees of support for
renewables at State Government level

 
Upcoming elections in Victoria (November
2018) and NSW (March 2019)

 
Regulatory reviews on affordability and
transparency:

 
ACCC (Federal)

 
Thwaites (Victoria)

 
Greater transparency is good for consumers
Struggling with policy to coordinate energy affordability, reliability and decarbonisation
Meridian Energy Limited 2018 Annual Results Presentation
11
RESIDENTIAL PRICE COMPARISON

AUSTRALIA
NEW
ZEALAND
Average 2018 prices, Nominal, Including GST
40.76
NZD c/kWh
29.03
NZD c/kWh

2008-2018 Average annual increase, Real, Including GST
5.1% per
annum
1.4% per
annum
Source: ACCC, Ministry of Business, Innovation and Employment, Meridian

T
H
E

U
N
I
T
E
D

K
I
N
G
D
O
M

M
A
R
K
E
T

 
The Competition and Markets Authority
(CMA) report has made recommendations to improve customer engagement and responsiveness to price

 
The CMA recommended a temporary price
cap for prepayment meter customers only

 
Stated that broader price controls would
undermine competition and product innovation

 
Electricity prices became an election issue
in 2017 and the new government put pressure on the regulator to impose price control

 
The regulator refused, so a Bill was
prepared forcing the regulator to implement price controls

 
Implementation is expected in late 2018
Legislated price controls are imminent
Meridian Energy Limited 2018 Annual Results Presentation
12
RESIDENTIAL PRICE COMPARISON

UNITED
KINGDOM
NEW
ZEALAND
Average 2017 prices, Nominal, Including GST/VAT
30.37
NZD c/kWh
28.79
NZD c/kWh

2004-2014 Average annual increase, Real, Including GST/VAT
6.8% per
annum
3.0% per
annum
Source: Competition and Markets Authority, Ministry of Business, Innovation and
Employment, Meridian

O
U
R

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T

Meridian Energy Limited 2018 Annual Results Presentation
13

C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T

 
Existing five-year, $625M programme
commenced in August 2015

 
A special, unimputed dividend of 2.44 cps
declared today

 
Brings distributions to $437.5M to date

 
Board will consider shareholder returns
again under the existing programme in:

 
February 2019

 
August 2019

 
February 2020
Existing programme
0
20
40 60 80
Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20
$M
EXISTING CAPITAL MANAGEMENT
$437.5M to date
Meridian Energy Limited 2018 Annual Results Presentation
14
Source: Meridian

Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22
NEW CAPITAL MANAGEMENT
C
A
P
I
T
A
L

M
A
N
A
G
E
M
E
N
T

 
Expectation we would update the market
on capital management during 2018

 
Announcing a new two-year, $250M
programme commencing in August 2020

 
Signals the Board’s continued willingness
to return capital where possible and give certainty in advance

 
Allows the company to address investment
opportunities in the medium term

 
Manages credit metrics to a level reflective
of Meridian’s hydrology risk

 
Subject to the Board's regular review and
consideration of structural industry risks

 
No change to the existing ordinary dividend
policy of 75%-90% payout of free cash flow
New programme
Meridian Energy Limited 2018 Annual Results Presentation
15
New programme
2 years, $250M
Existing programme
5 years, $625M
Source: Meridian
Board will
consider
returns six
monthly

O
U
R

B
U
S
I
N
E
S
S
E
S

Meridian Energy Limited 2018 Annual Results Presentation
16

O
U
R

N
E
W

Z
E
A
L
A
N
D

C
U
S
T
O
M
E
R
S

CUSTOMER SALES
CUSTOMER
NUMBERS
SALES
VOLUME
(GWH)
AVERAGE
PRICE
1

($/MWH)
FY18
Residential 194,671 1,370 Small medium business
38,137
936
Agricultural 37,752 1,085 Large business
17,807
432
Total Residential/SMB
288,367
3,823
$117
Corporate 2,389 2,158 $83 FY17 Residential 186,165 1,391 Small medium business
35,626
865
Agricultural 36,510 1,029 Large business
16,220
425
Total Residential/SMB
274,521
3,710
$119
Corporate 2,246 2,017 $86

 
Supported by a change in portfolio position

 
Both Meridian (4%) and Powershop (8%)
sales volume growth

 
In all segments, except Residential

 
MoU with Kiwi Property to install 650kW of
solar across four major shopping malls

 
Converted 50% of Meridian’s passenger
fleet to electric

 
New EV tariff pricing plans

 
Flux Federation (software development)
separated from Powershop

 
Decision made to migrate Meridian’s
225,000 customers to the Flux platform ($30M, three year programme)

 
New Powershop offerings
5% growth in customers in FY18
Meridian Energy Limited 2018 Annual Results Presentation
17

1
Volume weighted average price in $/MWh

77
73
+15
-10
+1
-1
-1
50
60
70
80
90
100
EBITDAF 30
Jun 2017
Retail
contracted
sales
Costs to
supply
contracted
sales
Other
market
revenue
Other
revenue
Operating
costs
EBITDAF 30
Jun 2018
$M
MOVEMENT IN RETAIL SEGMENT EBITDAF
1
O
U
R

N
E
W

Z
E
A
L
A
N
D

C
U
S
T
O
M
E
R
S

 
Higher customer sales lifting revenue and
purchase costs

 
Cost per customer down, overall stable
spend supporting a growing customer base

 
Overall 5% increase in retail segment
EBITDAF

 
Meridian churn and disconnection rates
remain below market average

 
Powershop disconnection rate also below
market average

 
Powershop churn rate above market
average, reflects customer demographics
4% increase in retail energy margin
Meridian Energy Limited 2018 Annual Results Presentation
18
Energy margin +$6M (4%)
RETAIL COST TO SERVE
1
FY2018
FY2017
Retail costs excl metering
$65M
$65M
Other segment cost allocation
$15M
$15M
Year-end customer numbers
290,756 276,767
Cost to serve per customer
$275
$290
1
FY17 restated for adoption of NZ IFRS 15
Source: Meridian
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014 2015 2016 2017 2018
Financial Year ended 30 June
ANNUAL ICP CHURN

Meridian
Powershop
Industry
Source: Electricity Authority

O
U
R

N
E
W

Z
E
A
L
A
N
D

G
E
N
E
R
A
T
I
O
N

 
Despite 98% of average inflows

 
Reflecting the timing of those inflows (low
1H FY18 inflows) and a lower wind year

 
Healthy storage at end of July 18:

 
Waitaki 19% (255GWh) above average

 
Manapōuri and Te Anau together 57%
(146GWh) above average
Lowest NZ generation since 2013
Meridian Energy Limited 2018 Annual Results Presentation
19
0
2,000
4,000 6,000 8,000
10,000
12,000
14,000
2004 2006 2008 2010 2012 2014 2016 2018
GWh
Financial Year ended 30 June
NEW ZEALAND GENERATION
Hydro
Wind
500
1,000
1,500
2,000
2,500
01-Jul 01-Sep 01-Nov 01-Jan 01-Mar 01-May
GWh
MERIDIAN'S WAITAKI STORAGE
FY2018
FY2017
Average
Source: Meridian Source: Meridian

O
U
R

N
E
W

Z
E
A
L
A
N
D

G
E
N
E
R
A
T
I
O
N

 
Reflects the impact of the change in
portfolio position, allowing:
 
5% uplift in retail volumes sold

 
43% increase in derivative volumes sold

 
Without additional exposure to high spot
prices

 
CPI increase on NZAS pricing and one
month of price escalator
Despite lower generation, NZ energy margin up by $4M
Meridian Energy Limited 2018 Annual Results Presentation
20
60
68
57
51
83
0
10
20 30
40
50
60
70
80 90
2014 2015 2016 2017 2018
$/MWh
Financial Year ended 30 June
AVERAGE GENERATION PRICE
2,400
2,600
2,800
3,000
3,200
3,400
3,600
Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18
NZD
AVERAGE DAILY LME PRICES
Source: Meridian
Source: London Metal Exchange, Reserve Bank of New Zealand

O
U
R

A
U
S
T
R
A
L
I
A
N

C
U
S
T
O
M
E
R
S

A year of customer consolidation
Meridian Energy Limited 2018 Annual Results Presentation
21

 
While further generation support was
acquired

 
Gas now launched in Victoria, sales of
4,800 GJ’s in June and July 2018

 
Market is highly competitive and has scale
in VIC, NSW, SA and South East QLD
 
7.2M residential (60% disengaged)

 
1.6M SMB customers

 
C&I load equivalent to residential and
SME combined

 
Test bed of innovation for the Meridian
Group
Source: Meridian
13,246
48,208
77,970
100,524
100,545
0
20,000
40,000 60,000
80,000
100,000
120,000
2014 2015 2016 2017 2018
CONNECTIONS
Financial Year ended 30 June
AUSTRALIAN CUSTOMERS

O
U
R

A
U
S
T
R
A
L
I
A
N

G
E
N
E
R
A
T
I
O
N

 
GSP assets acquired

 
Several renewable offtake
agreements

 
Record wind year, FY18
generation 8% above FY17

 
Wholesale prices have
moderated from a peak in early FY18

 
LGC prices have been stable

 
Expected to fall with further
renewables penetration
A growing portfolio
Meridian Energy Limited 2018 Annual Results Presentation
22
HUME

Capacity 58MW 5 year average output
203GWh
Typical seasonal generation
August to
April
BURRINJUCK

Capacity 27.2MW 5 year average output
83GWh
Typical seasonal generation
September
to April
KEEPIT

Capacity 7.2MW 5 year average output
3GWh
Typical seasonal generation
August to
February

O
U
R

U
N
I
T
E
D

K
I
N
G
D
O
M

C
U
S
T
O
M
E
R
S

 
25,000 customers at 30 June 2018

 
Grown by more than 30% in the six weeks
since

 
FY18 milestones delivered:

 
Gas functionality

 
White label

 
Powershop Lite

 
Data protection regulation requirements

 
Further product development underway

 
Complex merger proposed between npower
(our franchisee) and SSE’s domestic retail business

 
Subject to review by the Competition and
Watchdog Authority, decision in October 2018
Main milestones now delivered
Meridian Energy Limited 2018 Annual Results Presentation
23

O
U
R

F
I
N
A
N
C
I
A
L

P
E
R
F
O
R
M
A
N
C
E

Meridian Energy Limited 2018 Annual Results Presentation
24

D
I
V
I
D
E
N
D
S

 
Final ordinary dividend declared of 8.94
cps, 86% imputed

 
Brings FY18 full year ordinary dividend
declared to 14.32 cps, 86% imputed

 
Represents 87% payout of free cash flow

 
Capital management final special dividend
of 2.44 cps, unimputed

 
Brings capital management distributions to
$437.5M since the programme began in August 2015

 
FY18 TSR of 14% from a 7% share price
increase and 18.96 cps of dividends paid during the year
1.5% growth in full year dividends
Meridian Energy Limited 2018 Annual Results Presentation
25
11.01
12.88
13.50
14.03
14.32
2.00
5.35
4.88
4.88
4.88
13.01
18.23
18.38
18.91
19.20
0
5
10
15
20
25
2014 2015 2016 2017 2018
CPS
Financial Year ended 30 June
DIVIDENDS DECLARED
Ordinary dividends
Special dividends
DIVIDENDS DELCARED
CPS IMPUTATION
FY2018 Ordinary dividends
14.32
86%
Capital mgt special dividends
4.88
0%
Total 19.20 FY2017 Ordinary dividends
14.03
88%
Capital mgt special dividends
4.88
0%
Total 18.91
Source: Meridian

F
Y
1
7

R
E
S
T
A
T
E
M
E
N
T

F
O
R

I
F
R
S

1
5

 
Has resulted in a change to the accounting
policy for customer incentives and acquisition and retention costs

 
Previous policy was to recognise these
costs as discounts to sales and expenses

 
New policy results in customer incentives
and incremental costs being deferred to the balance sheet

 
Then amortised over the expected average
customer contract tenure

 
FY17 results reported in August 2017 have
been restated with minor changes

 
Pages 34-35 and 46 have more detailed
restatements
Early adoption of IFRS 15
Meridian Energy Limited 2018 Annual Results Presentation
26
YEAR ENDED 30 JUNE 2017 INCOME STATEMENT
ORIGINAL
2017
$M
ADJUST
MENT
$M
RESTATED
2017
$M
Operating revenue
2,319
1
2,320
Operating expenses
(1,666)
3
(1,663)
EBITDAF 653 4 657 Income tax expense
(80)
(1)
(81)
NPAT 197 3 200
YEAR ENDED 30 JUNE 2017 BALANCE SHEET
ORIGINAL
2017
$M
ADJUST
MENT
$M
RESTATED
2017
$M
Customer contract assets
-
18
18
Deferred tax liability
(1,710)
(5)
(1,715)
Retained earnings
738
(13)
725

E
A
R
N
I
N
G
S

Business specific changes
 
Higher business, lower residential sales
volumes at slightly lower average price

 
Higher corporate sales volumes

 
Higher irrigation sales

 
Higher wholesale volumes

 
Some NZ cost expansion, mainly asset
refurbishments

 
Higher NZAS price on indexation

 
Growth in Australia and UK earnings, some
cost growth to support this
Market and environmental impacts
 
787GWh less physical generation

 
Higher aluminum prices
$9M (1.4%) increase in EBITDAF
Meridian Energy Limited 2018 Annual Results Presentation
27
924
954
1,009
1,014
1,030
850
900
950
1,000
1,050
2014 2015 2016 2017 2018
$M
Financial Year ended 30 June
ENERGY MARGIN
585
618
650
657
666
550
600
650 700
2014 2015 2016 2017 2018
$M
Financial Year ended 30 June
EBITDAF
Source: Meridian Source: Meridian
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers

C
O
S
T
S

 
Refurbishment spend on Te Āpiti wind farm
and the Ōhau hydro stations

 
Transformer replacements at the
Manapōuri power station

 
Maintaining a similar level of promotional
spend to FY17, supporting NZ customer acquisition

 
Higher Australian customer service costs
from higher average customer numbers

 
Costs associated with introduction of gas
offer in Victoria

 
Maintenance costs associated with GSP
hydro assets

 
Flux expansion and preparation for
Meridian customer migration

 
Stable stay in business capex

 
Total capex of $235M in FY18 includes GSP
hydro acquisitions in Australia
5% increase in operating costs
Meridian Energy Limited 2018 Annual Results Presentation
28
58
61
50
48
47
0
10
20 30
40
50
60
70
2014 2015 2016 2017 2018
$M
Financial Year ended 30 June
STAY IN BUSINESS CAPEX
84
96
38 41
259
82
95
33 36
246
0
50
100
150
200
250
300
NZ Wholesale
NZ Retail
Australia
Other
Total
$M
OPERATING COSTS
FY18
FY17
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers

B
E
L
O
W

E
B
I
T
D
A
F

 
$4M (2%) increase in depreciation from
FY17 revaluations

 
FY18 impairments of $2M (Central Wind
consent), compared with $10M in FY17

 
Asset sale gains of $7M in FY18, compared
with losses of $4M in FY17 (farm land sales)

 
$23M reduction to NPBT from fair value of
electricity hedges from changing forward electricity prices ($76M reduction in FY17)

 
$3M reduction to NPBT from fair value of
treasury instruments from increases in forward interest rates ($55M increase in FY17)

 
$4M (5%) increase in net financing costs

 
Tax expense includes stamp duty on GSP
acquisition

 
$15M (7%) decrease in underlying NPAT
with this duty and higher depreciation and interest, some offset from higher EBITDAF
Flat NPAT
Meridian Energy Limited 2018 Annual Results Presentation
29
230
247
185
200
201
0
50
100
150
200
250
300
2014 2015 2016 2017 2018
$M
Financial Year ended 30 June
NET PROFIT AFTER TAX
195
209
233
221
206
0
50
100
150
200
250
2014 2015 2016 2017 2018
$M
Financial Year ended 30 June
UNDERLYING NPAT
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers

D
E
B
T

A
N
D

F
U
N
D
I
N
G

 
Total borrowings as at 30 June 2018 of
$1,473M

 
Up $281M from 3o June 2017

 
Includes $200M, seven year, fixed-rate
retail bonds issue in June 2018

 
Committed bank facilities of $1,914M of
which $486M were undrawn

 
Expiry of these facilities from FY19 to FY27

 
Net debt of $1,529M, up 22% from FY17
Successful retail bond issue in FY18
Meridian Energy Limited 2018 Annual Results Presentation
30
282
205
85
183
160
499
50
230
75
0
100
200 300
400
500
600
2019 2020 2021 2022 2023 2024+
$M
Financial Year ended 30 June
DEBT MATURITY PROFILE AS AT 30 JUNE 2018
Drawn debt maturing (face value)
Available facilities maturing
34%
4%
26%
5%
23%
8%
SOURCES OF FUNDING AT AT 30 JUNE 2018
NZ$ bank facilities drawn/undrawn EKF - Danish export credit Retail Bonds Floating rate notes US private placement Commercial paper
1.8
1.7
1.8
1.9
2.3
0
1
2 3
June 2014
June 2015
June 2016
June 2017
June 2018
TIMES
Financial Year ended 30 June
NET DEBT/EBITDAF

Meridian Energy Limited 2018 Annual Results Presentation
31
O
U
R

C
L
O
S
I
N
G

C
O
M
M
E
N
T
S

 
Good current catchment storage

 
Increasing pace of change in NZ’s climate change actions

 
NZ electricity price review issues paper expected in September 2018

 
Followed by consultation in early 2019

 
Update on NZ transmission pricing due in December 2018

 
Progress on Australian NEG and ACCC recommendations

Q
U
E
S
T
I
O
N
S

Meridian Energy Limited 2018 Annual Results Presentation
32

O
U
R

F
I
N
A
N
C
I
A
L

P
E
R
F
O
R
M
A
N
C
E

I
N

D
E
T
A
I
L

Meridian Energy Limited 2018 Annual Results Presentation
33

F
Y
1
7

S
E
G
M
E
N
T

R
E
S
T
A
T
E
M
E
N
T

Meridian Energy Limited 2018 Annual Results Presentation
34
$M
2017 IRFS 15 Other
2017
2017 IRFS 15 Other
2017
2017 IRFS 15 Other
2017
reported
restated reported
restated reported
restated
Contracted sales
354
354
612
2
614
72
(1)
71
Virtual asset swap margins
4
4
Net cost of acquired generation
(4)
(4)
Generation spot revenue
684
684
48
48
Inter-segment electricity sales
506
506
Costs to supply contracted sales
(753)
(753)
(460)
(460)
(45)
(45)
Other market revenue/(costs)
(6)
(6)
1
1
Energy margin
785
785
153
2
155
75
(1)
74
Other revenue
4
4
11
2
13
Dividend revenueEnergy transmission expense
(125)
(125)
(5)
(5)
Gross margin
664
664
164
2
2
168
70
(1)
69
NZ WHOLESALE
NZ RETAIL
AUSTRALIA
Operating expenses
(82)
(82)
(89)
(6)
(95)
(36)
3
(33)
EBITDAF
582
582
75
2
(4)
73
34
2
36
$M
2017 IRFS 15 Other
2017
2017 IRFS 15 Other
2017
2017 IRFS 15 Other
2017
reported
restated reported
restated reported
restated
Contracted sales
1,038
1
1,039
Virtual asset swap margins
44
Net cost of acquired generation
(4)
(4)
Generation spot revenue
732
732
Inter-segment electricity sales
(506)
(506)
Costs to supply contracted sales
506
506
(752)
(752)
Other market revenue/(costs)
(5)
(5)
Energy margin
1,013
1
1,014
Other revenue
11
(2)
9
(7)
(7)
19
19
Dividend revenue
1
1
(1)
(1)
Energy transmission expense
(130)
(130)
Gross margin
12
(2)
10
(8)
(8)
902
1
903
OTHER AND UNALLOCATED
INTER-SEGMENT
TOTAL GROUP
Operating expenses
(49)
6
(43)
7
7
(249)
3
(246)
EBITDAF
(37)
4
(33)
(1)
(1)
653
4
657

F
Y
1
8

O
P
E
R
A
T
I
N
G

I
N
F
O
R
M
A
T
I
O
N

R
E
S
T
A
T
E
M
E
N
T

Meridian Energy Limited 2018 Annual Results Presentation
35
FY18 OPERATING INFORMATION
J
u
l
A
u
g
S
e
p
O
c
t
N
o
v
D
e
c
J
a
n
F
e
b
M
a
r
A
p
r
M
a
y
J
u
n
2
0
1
7
2
0
1
7
2
0
1
7
2
0
1
7
2
0
1
7
2
0
1
7
2
0
1
8
2
0
1
8
2
0
1
8
2
0
1
8
2
0
1
8
2
0
1
8
N
e
w

Z
e
a
l
a
n
d

C
o
n
t
r
a
c
t
e
d

S
a
l
e
s
Retail contracted sales volume (GWh)
519
529
491
475
539
589
503
438
459
442
496
502
Average retail contracted sales price ($/MWh)
$114.6
$115.9
$109.4
$99.0
$96.0
$93.3
$96.8
$101.6
$100.2
$107.0
$112.5
$115.9
NZAS sales volume (GWh)
426
426
411
426
412
426
426
384
426
412
426
412
Sell side derivative volumes (GWh)
95
100
111
142
194
125
182
239
294
272
244
280
Wholesale contracted sales average price ($/MWh)
$60.9
$59.0
$58.1
$54.9
$57.6
$58.5
$63.0
$61.3
$58.7
$60.1
$62.5
$60.5
Total New Zealand customer connections
278,595
279,967
280,209
280,211
281,314
282,396
283,724
285,611
287,167
288,538
289,431
290,756
N
e
w

Z
e
a
l
a
n
d

G
e
n
e
r
a
t
i
o
n
Hydro generation volume (GWh)
739
831
867
985
1,000
867
888
878
1,049
994
1,037
1,131
Wind generation volume (GWh)
108
118
116
106
82
118
80
102
105
118
113
96
T
o
t
a
l

g
e
n
e
r
a
t
i
o
n

v
o
l
u
m
e

(
G
W
h
)
847
949
983
1,091
1,082
985
968
980
1,154
1,112
1,150
1,227
Average generation price ($/MWh)
$156.5
$83.4
$55.0
$53.1
$95.5
$128.4
$127.2
$64.8
$55.2
$54.3
$56.1
$91.1
Acquired generation volume (GWh)
282
206
158
164
178
200
234
156
152
163
169
160
Cost of acquired generation ($/MWh)
$77.4
$70.1
$62.5
$60.6
$64.9
$69.9
$75.4
$65.0
$63.6
$63.9
$63.2
$63.4
Acquired generation revenue average price ($/MWh)
$138.8
$84.1
$55.6
$54.4
$99.7
$114.2
$114.2
$65.5
$59.8
$57.7
$56.5
$93.2
Future contract close outs ($m)
($0.7)
($0.6)
($0.7)
($0.3)
$0.1
($0.4)
($0.3)
($0.4)
($0.0)
($0.0)
($0.2)
($0.0)
Contracted sales supply volume (GWh)
1,067
1,077
1,053
1,054
1,174
1,163
1,140
1,086
1,205
1,150
1,191
1,225
Cost to supply contracted sales ($/MWh)
$155.0
$88.2
$59.2
$54.4
$100.1
$126.8
$130.2
$69.1
$59.8
$57.5
$58.4
$95.3
A
u
s
t
r
a
l
i
a
Wind generation volume (GWh)
69
60
67
42
32
35
40
37
44
33
51
43
Hydro generation volume (GWh)
222 2 2
Retail contracted sales volume (GWh)
59
58
50
43
39
40
43
39
39
38
47
53
Powershop Australia customer connections
not disclosed
not disclosed
101,096
not disclosed
not disclosed
101,460
not disclosed
not disclosed
100,773
not disclosed
not disclosed
100,545

F
U
L
L

Y
E
A
R

S
E
G
M
E
N
T

R
E
S
U
L
T
S

 
Flux Federation (Powershop platform development) now included in other segment
(previously retail segment)

 
Powershop UK now included in other segment (previously international segment)
FY17 restated for segment changes
Meridian Energy Limited 2018 Annual Results Presentation
36
$M
WHOLESALE RETAIL AUSTRALIA
OTHER/
UNALLOCATED
INTER-
SEGMENT
FINANCIAL YEAR ENDED 30 JUNE
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Energy margin
783 785 161 155 86 74 - - - -
Other revenue
2 4 12 13 1 - 20 9 (13) (7)
Dividend revenue
- - - - - - 46 1 (46) (1)
Energy transmission expense (122) (125) - - (5) (5) - - - - Operating expenses
(84) (82) (96) (95) (38) (33) (49) (43)
8
7
EBITDAF 579 582 77 73 44 36 17 (33) (51) (1)

S
I
X

M
O
N
T
H
L
Y

R
E
S
U
L
T
S

7% decrease in 1H FY18 EBITDAF, 11% increase in 2H FY18
Meridian Energy Limited 2018 Annual Results Presentation
37
$M
2018
2017 CHANGE
2018
2017 CHANGE
2018
2017 CHANGE
Contracted sales
568
494
74
594
545
49
1,162
1,039
123
Virtual asset swap margins
(4)
5
(9)
2
(1)
3
(2)
4
(6)
Net cost of acquired generation
31
(4)
35
10
0
10
41
(4)
45
Generation spot revenue
598
350
248
513
382
131
1,111
732
379
1H
2H
FULL YEAR
Costs to supply contracted sales
(682)
(310)
(372)
(596)
(442)
(154)
(1,278)
(752)
(526)
Other market revenue/(costs)
(2)
(2)
0
(2)
(3)
1
(4)
(5)
1
Energy margin
509
533
(24)
521
481
40
1,030
1,014
16
Other revenue
10
9
1
12
10
2
22
19
3
Energy transmission expense
(63)
(66)
3
(64)
(64)
0
(127)
(130)
3
Gross margin
456
476
(20)
469
427
42
925
903
22
Operating expenses
(127)
(122)
(5)
(132)
(124)
(8)
(259)
(246)
(13)
EBITDAF
329
354
(25)
337
303
34
666
657
9
Depreciation and amortisation
(134)
(132)
(2)
(134)
(132)
(2)
(268)
(264)
(4)
Impairment of assets
(2)
(2)
0
(10)
10
(2)
(10)
8
Gain/(loss) on sale of assets
6
(2)
8
1
(2)
3
7
(4)
11
Net change in fair value of electricity and other hedges
(2)
(75)
73
(21)
(1)
(20)
(23)
(76)
53
Operating profit
197
145
52
183
158
25
380
303
77
Finance costs
(41)
(39)
(2)
(41)
(40)
(1)
(82)
(79)
(3)
Interest income
1
(1)
1
1
0
1
2
(1)
Net change in fair value of treasury instruments
(2)
63
(65)
(1)
(8)
7
(3)
55
(58)
Net profit before tax
154
170
(16)
142
111
31
296
281
15
Interest tax expense
(45)
(45)
0
(50)
(36)
(14)
(95)
(81)
(14)
Net profit after tax
109
125
(16)
92
75
17
201
200
1
Underlying net profit after tax
104
131
(27)
102
90
12
206
221
(15)

N
E
W

Z
E
A
L
A
N
D

R
E
T
A
I
L

 
5% increase in customers since June 2017
Customers
Meridian Energy Limited 2018 Annual Results Presentation
38
108
104
102
103
106
114
116
117
115
119
55
56
56
59
66
277
276
275
277
291
0
50
100
150
200
250
300
350
Jun-14 Jun-15 Jun-16 Jun-17 Jun-18
ICP (000)
NEW ZEALAND CUSTOMER NUMBERS
Meridian North Island
Meridian South Island
Powershop

 
3% increase in overall volumes

 
1.5% decrease in residential volumes

 
8% increase in small business volumes

 
2% increase in large business volumes

 
5% increase in agri volumes, irrigation-
driven

 
1% decrease in average sales price
Residential, Business, Agri segment
3,410
3,691
3,781
3,710
3,823
2,344
2,276
2,188
2,017
2,158
5,754
5,967
5,969
5,727
5,981
0
1,000
2,000 3,000
4,000
5,000
6,000
2014 2015 2016 2017 2018
GWh
Financial Year ended 30 June
RETAIL SALES VOLUMES
Residential, SMB, Agri
Corporate

 
7% increase in volumes

 
3% decrease in average sales price
Corporate segment

N
E
W

Z
E
A
L
A
N
D

H
Y
D
R
O
L
O
G
Y

 
Inflows for FY18 were 98% of historical
average

 
July 2018 inflows were 161% of average
Inflows
Meridian Energy Limited 2018 Annual Results Presentation
39
0
2,000
4,000 6,000 8,000
10,000
12,000
14,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
GWh
Financial year
MERIDIAN'S TOTAL CATCHMENT INFLOWS
June YTD
84 year average

 
Meridian’s Waitaki catchment storage at 30
June 2018 was 113% of historical average

 
By 31 July 2018, this position was 119% of
historical average
Storage
0
500
1,000
1,500
2,000
2,500
1-Jan 1-Mar 1-May 1-Jul 1-Sep 1-Nov
GWh
MERIDIAN'S WAITAKI STORAGE
Average 1979-
2013
2014
2015
2016
2017
2018

N
E
W

Z
E
A
L
A
N
D

G
E
N
E
R
A
T
I
O
N

 
FY18 generation was 6% lower than FY17

 
Reflected both lower hydro and wind
generation

 
1H FY18 generation 16% lower, 2H FY18
generation 5% higher
Volume
Meridian Energy Limited 2018 Annual Results Presentation
40

 
FY18 average price Meridian received for its
generation was 61% higher than FY17

 
FY18 average price Meridian paid to supply
contracted sales was 57% higher than FY17
Price
60
68
57
51
83
0
10
20 30
40
50
60
70
80 90
2014 2015 2016 2017 2018
$/MWh
Financial Year ended 30 June
AVERAGE GENERATION PRICE
11,903
11,911
12,251
11,974
11,265
1,245
1,422
1,456
1,341
1,263
13,148
13,333
13,707
13,315
12,528
0
3,000
6,000 9,000
12,000 15,000
2014 2015 2016 2017 2018
GWh
Financial Year ended 30 June
NEW ZEALAND GENERATION
Hydro
Wind
Total

A
U
S
T
R
A
L
I
A
N

R
E
T
A
I
L

 
Flat customer numbers since June 2017, in
response to higher wholesale market prices
Customers
Meridian Energy Limited 2018 Annual Results Presentation
41

 
12% increase in sales volumes
Sales volume
13,426
48,208
77,970
100,524
100,545
0
20,000
40,000 60,000
80,000
100,000
120,000
2014 2015 2016 2017 2018
CONNECTIONS
Financial Year ended 30 June
AUSTRALIAN CUSTOMERS
26
167
345
493
549
0
100
200 300
400
500
600
2014 2015 2016 2017 2018
GWh
Financial Year ended 30 June
RETAIL SALES VOLUMES

A
U
S
T
R
A
L
I
A
N

G
E
N
E
R
A
T
I
O
N

 
FY18 generation was 14% higher than FY17

 
FY18 includes 28GWh of seasonal
generation from the GSP hydro assets

 
FY18 wind generation was 8% higher than
FY17
Volume
Meridian Energy Limited 2018 Annual Results Presentation
42
99
86
106
96
110
0
20
40 60 80
100
120
2014 2015 2016 2017 2018
$/MWh
Financial Year ended 30 June
AVERAGE GENERATION PRICE

 
FY18 average price Meridian received for its
generation was 15% higher than FY17
Price
285
519 519
510
553
28
285
519 519
510
581
0
100
200 300
400
500
600 700
2014 2015 2016 2017 2018
GWh
Financial Year ended 30 June
AUSTRALIAN GENERATION
Wind
Hydro
Total

666
657
+15
+81
-6
+45
-132
+1
+12
+3
+3
-13
600
640
680
720
760
800
EBITDAF 30
Jun 2017
Retail
contracted
sales
Wholesale
contracted
sales
Net VAS
position
Net cost of
acquired
generation
Net spot
exposed
revenue
Other market
costs
Australian
energy margin
Other revenue Transmission
expenses
Employee &
other
operating
expenses
EBITDAF 30
Jun 2018
$M
MOVEMENT IN EBITDAF
F
Y
1
8

E
B
I
T
D
A
F

Meridian Energy Limited 2018 Annual Results Presentation
43
Energy margin +$4M (0.4%)

E
B
I
T
D
A
F

T
O

N
P
A
T

XXXX
Meridian Energy Limited 2018 Annual Results Presentation
44
206
201
666
-268
-13
-81
-98
-26
+5
+13
+3
100
200 300
400
500
600
700
EBITDAF Depreciation
and
amortisation
Premiums
paid on
electricity
options net of
interest
Net finance
costs
Tax Underlying
NPAT
Net change in
fair value of
hedges/
instruments
Loss on sale
of assets/
impairments
Premiums
paid on
electricity
options net of
interest
Tax NPAT
$M
FY18 EBITDAF TO NPAT RECONCILIATION

N
E
W

Z
E
A
L
A
N
D

E
N
E
R
G
Y

M
A
R
G
I
N

 
A non-GAAP financial measure
representing energy sales revenue less energy related expenses and energy distribution expenses

 
Used to measure the vertically integrated
performance of the retail and wholesale businesses.

 
Used in place of statutory reporting which
requires gross sales and costs to be reported separately, therefore not accounting for the variability of the wholesale spot market and the broadly offsetting impact of wholesale prices on the cost of retail electricity purchases
ENERGY MARGIN
Meridian Energy Limited 2018 Annual Results Presentation
45

 
Revenues received from sales to customers net of
distribution costs (fees to distribution network companies that cover the costs of distribution of electricity to customers), sales to large industrial customers and fixed price revenues from derivatives sold (Contract sales revenue)

 
The net position of virtual assets swaps with
Genesis Energy and Mercury

 
The fixed cost of derivatives acquired to
supplement generation and manage spot price risks, net of spot revenue received for generation acquired from those derivatives (Net cost of acquired generation)

 
Revenue from the volume of electricity that
Meridian generates that is in excess of volumes required to cover contracted customer sales (Spot exposed revenues)

 
Other associated market revenues and costs
including Electricity Authority levies and ancillary generation revenues (i.e. frequency keeping)

N
E
W

Z
E
A
L
A
N
D

E
N
E
R
G
Y

M
A
R
G
I
N

Meridian Energy Limited 2018 Annual Results Presentation
46
FY18 FY17
3
VOLUME
1
VWAP
2
$M VOLUME
1
VWAP
2
$M
Residential/SMB contracted sales
3,823
$117.3
449
3,710
$118.9
441
Corporate contracted sales
2,158
$83.4
180
2,017
$85.7
173
Retail contracted sales
5,981
$105.1
629
5,727
$107.2
614
NZAS sales
5,011
5,011
Sell side CfDs
2,278
1,597
Wholesale contracted sales
7,289
$59.7
435
6,608
$53.5
354
Net VAS position
1,099
(2)
1,148
4
Acquired generation revenue
2,222
$87.6
195
1,564
$61.1
96
Cost of acquired generation
2,222
($67.7)
(150)
1,564
($62.0)
(97)
Future contract close outs
(4)
(3)
Net cost of acquired generation
41
(4)
Generation revenue
12,528
$83.0
1,039
13,315
$51.4
684
Cost to supply retail sales
6,297
6,002
Cost to supply wholesale sales
7,289
6,608
Cost to supply contracted sales
13,586
($87.8)
(1,194)
12,610
($56.1)
(707)
Net spot exposed revenue
(155)
(23)
Other market costs
(4)
(5)
Energy Margin
944
940
LWAP:GWAP FY18 1.04 FY17 1.11
1
GWh
2
Volume weighted average price in $/MWh
3
Restated for IFRS 15

N
E
W

Z
E
A
L
A
N
D

E
N
E
R
G
Y

M
A
R
G
I
N

Meridian Energy Limited 2018 Annual Results Presentation
47
944
629
435
1,039
-1,194
-150
-4
195
-2
-4
0
400
800
1,200
1,600
2,000
2,400
Retail
Contracted
Sales (net)
Wholesale
Contracted
Sales
Meridian
Generation
Spot Revenue
Cost to Supply
Contracted
Sales
Cost of
Acquired
Generation
Future
Contract Close
Outs
Acquired
Generation
Spot Revenue
Net VAS
Position
Market Related
Costs
Energy Margin
$M
NEW ZEALAND ENERGY MARGIN
Contracted sales revenue
$1,064M
Spot exposed revenue
-$155M
Net cost of acquired generation
$41M

944
940
+15
+81
+355
-487
-53
-1
+99
-6
+1
700
900
1,100
1,300 1,500
Energy
Margin 30
Jun 17
Retail
Contracted
Sales (net)
Wholesale
Contracted
Sales
Meridian
Generation
Spot Revenue
Cost to
Supply
Contracted
Sales
Cost of
Acquired
Generation
Future
Contract
Close Outs
Acquired
Generation
Spot Revenue
Net VAS
Position
Market
Related Costs
Energy
Margin 30
Jun 18
$M
NEW ZEALAND ENERGY MARGIN
N
E
W

Z
E
A
L
A
N
D

E
N
E
R
G
Y

M
A
R
G
I
N

M
O
V
E
M
E
N
T

Meridian Energy Limited 2018 Annual Results Presentation
48
Contracted sales
revenue +$96M
Spot exposed revenue
-$132M
Net cost of acquired generation
+$45M

O
T
H
E
R

R
E
V
E
N
U
E

Meridian Energy Limited 2018 Annual Results Presentation
49
FINANCIAL YEAR ENDED 30 JUNE $M
2018
1
2017
RESTATED
1
2016
REPORTED
2015
REPORTED
2014
REPORTED
Retail service revenue (field services revenue etc)
6
6
6
8
10
Arc Innovations
3 6
Damwatch
2 5 5 5
Miscellaneous
2
15 11 5 7 2
Farming
1 3
Lease income
1 0 1 1 1
Total other revenue
22
19
17
25
27
1
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers
2
Includes revenue related to Flux Federation. Also includes settlement of insurance proceeds in the year ended 30 June 2015

F
U
N
D
I
N
G

M
E
T
R
I
C
S

Net debt/EBITDAF
Meridian Energy Limited 2018 Annual Results Presentation
50

 
Net debt/EBITDAF is the principal metric underpinning S&P credit rating

 
S&P calculation of net debt/EBITDAF includes numerous adjustments to reported
numbers;

 
Borrowings adjusted for the impact of finance and operating leases

 
Cash balances adjusted for restricted cash

 
A cash buffer at 25% of unrestricted cash and cash equivalents
FINANCIAL YEAR ENDED 30 JUNE $M
2018
1
2017
RESTATED
1
2016
REPORTED
2015
REPORTED
2014
REPORTED
Drawn borrowings
1,428
1,158
1,136
991
1,146
Finance lease payable
48
47
48
52
49
Operating lease commitments
76
71
59
37
42
Less: cash and cash equivalents

(60) (80) (118) (69) (276)
Add back: restricted cash
29
51
18
22
7
Add back: cash buffer
8
7
25
12
67
Net debt
1,529
1,254
1,168
1,045
1,035
EBITDAF 666 657 650 618 585 Net debt to EBITDAF (times)
2.3
1.9
1.8
1.7
1.8
1
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers

F
A
I
R

V
A
L
U
E

M
O
V
E
M
E
N
T
S

 
Meridian uses derivative instruments to
manage interest rate, foreign exchange and electricity price risk

 
As forward prices and rates on these
instruments move, non-cash changes to their carrying value are reflected in NPAT

 
Accounting standards only allow hedge
accounting if specific conditions are met, which creates NPAT volatility

 
$3M negative change in fair value of
treasury instruments in FY18 from rising forward interest rates

 
$23M negative change in fair value of
electricity and other hedges in FY18 from changing forward electicity prices

On electricity and other hedges and treasury instruments
Meridian Energy Limited 2018 Annual Results Presentation
51
18
-33
-83
-21
-26
-100
-50
0
50
2014 2015 2016 2017 2018
$M
Financial Year ended 30 June
NET CHANGE IN FAIR VALUE OF FINANCIAL INSTRUMENTS

I
N
C
O
M
E

S
T
A
T
E
M
E
N
T

Meridian Energy Limited 2018 Annual Results Presentation
52
FINANCIAL YEAR ENDED 30 JUNE $M
2018
1
2017
RESTATED
1
2016
REPORTED
2015
REPORTED
2014
REPORTED
New Zealand energy margin
944
940
941
900
891
Australia energy margin
86
74
68
54
33
Other revenue
22
19
17
25
27
Energy transmission expense
(127)
(130)
(128)
(123)
(129)
Employee and other operating expenses
(259)
(246)
(248)
(238)
(237)
EBITDAF 666 657 650 618 585 Depreciation and amortisation
(268)
(264)
(236)
(239)
(220)
Impairment of assets
(2)
(10)
4
(38)
-
Gain/(loss) on sale of assets
7
(4)
(1)
19
7
Net change in fair value of electricity and other hedges
(23) (76) (15) (1) (9)
Net finance costs
(81)
(77)
(78)
(78)
(73)
Net change in fair value of treasury instruments
(3)
55
(68)
(32)
27
Net profit before tax
296
281
256
249
317
Income tax expense
(95)
(81)
(71)
(2)
(87)
Net profit after tax
201
200
185
247
230
1
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers

U
N
D
E
R
L
Y
I
N
G

N
P
A
T

R
E
C
O
N
C
I
L
I
A
T
I
O
N

Meridian Energy Limited 2018 Annual Results Presentation
53
FINANCIAL YEAR ENDED 30 JUNE $M
2018
1
2017
RESTATED
1
2016
REPORTED
2015
REPORTED
2014
REPORTED
Net profit after tax
201
200
185
247
230
Underlying adjustments Hedging instruments
Net change in fair value of electricity and other hedges
23 76 15 1 9
Net change in fair value of treasury instruments
3
(55)
68
32
(27)
Premiums paid on electricity options net of interest
(13) (12) (12) (15) (20)
Assets
(Gain)/loss on sale of assets
(7)
4
1
(19)
(7)
Impairment of assets
2
10
(4)
38
-
Total adjustments before tax
8
23
68
37
(45)
Taxation Tax effect of above adjustments
(3)
(2)
(20)
(13)
10
Release of capital gains tax provision
-
(28)
-
Tax depreciation on powerhouse structures
-
(34)
-
Underlying net profit after tax
206
221
233
209
195
1
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers

C
A
S
H

F
L
O
W

S
T
A
T
E
M
E
N
T

Meridian Energy Limited 2018 Annual Results Presentation
54
FINANCIAL YEAR ENDED 30 JUNE $M
2018
1
2017
RESTATED
1
2016
REPORTED
2015
REPORTED
2014
REPORTED
Receipts from customers
2,765
2,250
2,348
2,348
2,083
Interest and dividends received
1
2
2
8
9
Payments to suppliers and employees
(2,152)
(1,596)
(1,723)
(1,742)
(1,480)
Interest and income tax paid
(187)
(186)
(175)
(174)
(179)
Operating cash flows
427
470
452
440
433
Sale of property, plant and equipment
23
-
-
19
41
Sales of subsidiaries and other assets
-
2
5
29
21
Purchase of property, plant and equipment
(33)
(33)
(42)
(131)
(284)
Stamp duty/capitalised interest
(10) - - - (9)
Purchase of intangible assets and investments
(204)
(21)
(19)
(16)
(23)
Investing cash flows
(224)
(52)
(56)
(99)
(254)
Term borrowings drawn
462
158
634
366
134
Term borrowings repaid
(200)
(136)
(478)
(527)
(154)
Shares purchased for long-term incentive
-
-
(1)
(2)
(1)
Dividends and finance lease paid
(487)
(478)
(502)
(385)
(261)
Financing cash flows
(225)
(456)
(347)
(548)
(282)
1
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers

B
A
L
A
N
C
E

S
H
E
E
T

Meridian Energy Limited 2018 Annual Results Presentation
55
FINANCIAL YEAR ENDED 30 JUNE $M
2018
1
2017
RESTATED
1
2016
REPORTED
2015
REPORTED
2014
REPORTED
Cash and cash equivalents
60
80
118
69
276
Trade receivables
261
260
194
191
183
Customer contract assets
19
18
Other current assets
109
91
94
74
64
Total current assets
449
449
406
334
523
Property, plant and equipment
7,941
7,961
7,771
7,097
6,929
Intangible assets
60 58 47 47 54
Other non-curent assets
182
215
314
183
84
Total non-current assets
8,183
8,234
8,132
7,327
7,067
Payables, accruals and employee entitlements
297
311
220
208
236
Current portion of term borrowings
450
170
214
213
133
Other current liabilities
96
98
79
57
97
Total current liabilities
843
579
513
478
466
Term borrowings
1,023
1,022
1,000
863
959
Deferred tax
1,683
1,715
1,617
1,400
1,350
Other non-current liabilities
260
272
358
172
181
Total non-current liabilities
2,966
3,009
2,975
2,435
2,490
Net assets
4,823
5,095
5,050
4,748
4,634
1
Where applicable, includes effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers

Meridian Energy Limited 2018 Annual Results Presentation
56
G
L
O
S
S
A
R
Y

Acquired generation volumes
buy-side electricity derivatives excluding the buy-side of virtual asset swaps
Average generation price
the volume weighted average price received for Meridian’s physical generation
Average retail contracted sales price
volume weighted average electricity price received from retail customers, less distributi
on costs
Average wholesale contracted sales price volume weighted average electricity price received from wholesale customers, including
NZAS
Combined catchment inflows
combined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes
Cost of acquired generation
volume weighted average price Meridian pays for derivatives acquired to supplement generation
Cost to supply contracted sales
volume weighted average price Meridian pays to supply contracted customer sales
Contracts for Difference (CFDs)
an agreement between parties to pay the difference between the wholesale electricity price and
an agreed fixed
price for a specified volume of electricity. CFDs do not result in the physical supply of electricity
Customer connections (NZ)

number of installation control points, excluding vacants
FRMP
financially responsible market participant
GWh
gigawatt hour. Enough electricity for 125 average New Zealand households for one year
Historic average inflows
the historic average combined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes over
the last 84
years
Historic average storage
the historic average level of storage in Meridian’s Waitaki catchment since 1979
HVDC
high voltage direct current link between the North and South Islands of New Zealand
ICP
New Zealand installation control points, excluding vacants
ICP switching
the number of installation control points changing retailer supplier in New Zealand, recorded in the month the switch was initiated
MWh
megawatt hour. Enough electricity for one average New Zealand household for 46 days
National demand
Electricity Authority’s reconciled grid demand
www.emi.ea.govt.nz

NZAS
New Zealand Aluminium Smelters Limited
Retail sales volumes
contract sales volumes to retail customers, including both non half hourly and half hourly metered custome
rs
Sell side derivatives
sell-side electricity derivatives excluding the sell-side of virtual asset swaps
Virtual Asset Swaps (VAS)
CFDs Meridian has with Genesis Energy and Mercury. They do not result in the physical supply of elect
ricity

Meridian Energy Limited 2018 Annual Results Presentation
57
D
I
S
C
L
A
I
M
E
R

THE INFORMATION IN THIS PRESENTATION WAS PREPARED BY MERIDIAN ENERGY WITH DUE CARE AND ATTENTION. HOWEVER, THE INFORMATION IS SUPPLIED IN SUMMARY FORM AND IS THEREFORE NOT NECESSARILY COMPLETE, AND NO REPRESENTATION IS MADE AS TO THE ACCURACY, COMPLETENESS OR RELIABILITY OF THE INFORMATION. IN ADDITION, NEITHER THE COMPANY NOR ANY OF ITS DIRECTORS, EMPLOYEES, SHAREHOLDERS NOR ANY OTHER PERSON SHALL HAVE LIABILITY WHATSOEVER TO ANY PERSON FOR ANY LOSS (INCLUDING, WITHOUT LIMITATION, ARISING FROM ANY FAULT OR NEGLIGENCE) ARISING FROM THIS PRESENTATION OR ANY INFORMATION SUPPLIED IN CONNECTION WITH IT. THIS PRESENTATION MAY CONTAIN FORWARD-LOOKING STATEMENTS AND PROJECTIONS. THESE REFLECT MERIDIAN’S CURRENT EXPECTATIONS, BASED ON WHAT IT THINKS ARE REASONABLE ASSUMPTIONS. MERIDIAN GIVES NO WARRANTY OR REPRESENTATION AS TO ITS FUTURE FINANCIAL PERFORMANCE OR ANY FUTURE MATTER. EXCEPT AS REQUIRED BY LAW OR NZX OR ASX LISTING RULES, MERIDIAN IS NOT OBLIGED TO UPDATE THIS PRESENTATION AFTER ITS RELEASE, EVEN IF THINGS CHANGE MATERIALLY. THIS PRESENTATION DOES NOT CONSTITUTE FINANCIAL ADVICE. FURTHER, THIS PRESENTATION IS NOT AND SHOULD NOT BE CONSTRUED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY MERIDIAN ENERGY SECURITIES AND MAY NOT BE RELIED UPON IN CONNECTION
WITH ANY PURCHASE OF MERIDIAN ENERGY SECURITIES. THIS PRESENTATION CONTAINS A NUMBER OF NON-GAAP FINANCIAL MEASURES, INCLUDING ENERGY MARGIN, EBITDAF, UNDERLYING NPAT AND GEARING. BECAUSE THEY ARE NOT DEFINED BY GAAP OR IFRS, MERIDIAN'S CALCULATION OF THESE MEASURES MAY DIFFER FROM SIMILARLY TITLED MEASURES PRESENTED BY OTHER COMPANIES AND THEY SHOULD NOT BE CONSIDERED IN ISOLATION FROM, OR CONSTRUED AS AN ALTERNATIVE TO, OTHER FINANCIAL MEASURES DETERMINED IN ACCORDANCE WITH GAAP. ALTHOUGH MERIDIAN BELIEVES THEY PROVIDE USEFUL INFORMATION IN MEASURING THE FINANCIAL PERFORMANCE AND CONDITION OF MERIDIAN'S BUSINESS, READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE NON-GAAP FINANCIAL MEASURES. THE INFORMATION CONTAINED IN THIS PRESENTATION SHOULD BE CONSIDERED IN CONJUNCTION WITH THE COMPANY’S FINANCIAL STATEMENTS, WHICH ARE INCLUDED IN MERIDIAN’S INTEGRATED REPORT FOR THE YEAR ENDED 30 JUNE 2018 AND IS AVAILABLE AT: WWW.MERIDIANENERGY.CO.NZ/INVESTORS/ ALL CURRENCY AMOUNTS ARE IN NEW ZEALAND DOLLARS UNLESS STATED OTHERWISE.

---

THE
RUN
LONG
MERIDIAN ENERGY LIMITED
INVESTOR LETTER

00:02
Clean energy for a fairer and healthier world embodies the core values
and the behaviours that lie at the heart of Meridian’s culture.
CHRIS MOLLER CHAIRNEAL BARCLAY CHIEF EXECUTIVE
OUR PEOPLE. An engaged and committed workforce
is really the key to being a successful business.
Our engagement survey results tell us that our people
genuinely want to make a difference. Accordingly, we have
re-defined our statement of purpose ‘Clean energy for a
fairer and healthier world’. We believe this statement best
reflects Meridian and what we stand for. It is a powerful
statement that is consistent with the core values that have
been the essence of Meridian’s culture for many years.
We have also articulated the behaviours that bind us and
allow us to hold ourselves to account – Be Gutsy, Be a
Good Human and Be in the Waka. Simply put it is ‘how
to be’ in Meridian.
We have a strong and positive culture around safety and
we continue to drive for improvement.
Of course, the wellbeing of our people goes beyond
managing their physical safety. We have also invested
in a multifaceted wellness programme.
Meridian also recently became an accredited Rainbow
Tick organisation. And we voluntarily extended our parental
leave programme top-up for Meridian and Powershop
New Zealand employees from 12 weeks to 22 weeks as
part of our drive to bring more women into the Company’s
senior leadership ranks.
Our people are highly committed, so much so that we
have 50% of our permanent New Zealand employees as
shareholders of the company through our MyShare scheme.
We’re proud to have such engaged employees who are
committed to creating a fairer and healthier world.
CARING FOR OUR CUSTOMERS. There is no silver
bullet when it comes to successfully retailing electricity.
Success comes when you focus on what your customers
are telling you they value and being absolutely single-
minded in delivering that to them in the most efficient or
frictionless way possible.
Our ability to innovate and adapt to new customer
demands will be key to our continued success.
Powershop New Zealand took a number of innovative new
offerings to market. They also won the 2018 Consumer
NZ People’s Choice Award and in Australia Powershop
was once again recognised as Australia’s greenest power
company by Greenpeace.
Providing value for our many different customers is
important, and doing this in a way that makes sure that all
customer groups are treated equitably has been a focus for
Meridian. We continue to ensure that those who struggle
to pay their bills from time to time are able to get the most
out of their energy by making sure that they know what is
available to them.
NZAS is New Zealand’s largest electricity customer and
when it approached us in 2017 about the possibility of
purchasing a further 50MW, we worked with the industry
to put a compelling offer to NZAS. A large user like NZAS
could cause a period of disruption to the market if it left
and this new deal has demonstrated that NZAS are thinking
expansively about the economic future of the facility. All up
the NZAS deal was complex as it involved multiple parties
and we are very pleased with the outcome.
At the beginning of the financial year we structurally
separated the software development arm of Powershop
out into a separate organisation named Flux Federation.
Flux has now been operating as a separate Meridian entity
for over 12 months and has demonstrated success in
scaling its development capability to deliver significant
new functionality for Meridian’s Powershop businesses in
New Zealand and Australia and to Npower in the United
Kingdom. Meridian and Flux have commenced a project
to transition Meridian customers to the Flux platform.
Flux will enable Meridian to improve its customer
experience significantly, allowing us to respond to
Dear Investor

00:03
0
NONE OF OUR PEOPLE,
OUR CONTRACTORS OR
MEMBERS OF THE PUBLIC
WERE SERIOUSLY INJURED
AT ANY OF OUR SITES
WE STRENGTHENED
OUR RELATIONSHIP
WITH NZAS BY
SUPPORTING
AN ADDITIONAL
50MW BASE-LOAD
ENERGY SOLUTION
THAT HAS ENABLED
IT TO INCREASE
PRODUCTION AT
THE SMELTER
This year we
completed one of our
biggest ever schedules
of hydro asset
maintenance work
Increase in EBITDAF as improved inflows
into our hydro catchments helped support
stronger second half performance
1.4%
OUR DIVERSIFICATION STRATEGY TO
DEVELOP A VERTICALLY INTEGRATED
RETAILER AND GENERATOR IN
AUSTRALIA IS STARTING TO SHOW
GOOD RESULTS, AND OUR AUSTRALIAN
BUSINESS CONTRIBUTED A SIGNIFICANT
PORTION OF THE OVERALL GROWTH IN
GROUP EBITDAF FOR THE YEAR
NET ZERO CARBON
across our Group
Scope 1 and 2 emissions
Strong cash flows have
allowed us to declare
a 1.5% increase in
dividend and maintain
the capital management
plan the Board put in
place in 2015
19. 20
cents per
share
We genuinely consider ourselves
caretakers of some of NZ’s most iconic
infrastructure assets, so our ongoing
maintenance programme, which looks
forward 20 years, is something on
which we will always put a huge
amount of focus
5%
INCREASED
CUSTOMER
CONNECTIONS
BY 14,000 IN NZ.
IT IS ALSO
PLEASING TO SEE
THE CUSTOMER
CHURN RATE
REDUCING
OUR POWERSHOP AND
MERIDIAN BRANDS TOGETHER
HAD THE STRONGEST GROWTH
IN CUSTOMER CONNECTIONS IN
THE NZ ELECTRICITY SECTOR
We really amped up our efforts around
wellness, diversity and inclusion
WE ARE EXCEPTIONALLY PROUD OF WHAT THE TEAM
HAVE BEEN ABLE TO ACHIEVE DURING THE PAST FINANCIAL YEAR.

00:04
customers’ needs and deliver products to market faster
than our competition.
The journey for Flux is far from limited to our existing
businesses. We are presently focussed on capability to
drive an international sales and business growth strategy.
LEADERSHIP IN SUSTAINABILITY. At Meridian we’ve
long held the view that companies that understand and
manage their key risks across environmental and social
issues, and can articulate the social purpose they fulfil,
are more successful in the long term than companies who
solely pursue financial growth at all costs. Our business
plays an essential role within New Zealand society and we
recognise that by creating value for others in sustainable
ways, we create value for our organisation.
This year we’ve focused on areas where we believe we can
shift the dial in terms of sustainability, and are channelling
much of our effort in line with SDG13, Climate Action and
SDG7, Affordable and Clean Energy.
TAKING ACTION ON CLIMATE CHANGE. Most of the
electricity produced in New Zealand already comes from
renewable sources, and there are many more renewable
options available to be built. So Meridian and the electricity
sector are very well placed to support reductions in our
country’s carbon emissions and the Government’s target
for New Zealand to be net zero carbon by 2050.
New Zealand’s hydro generation assets, which make up
a large portion of total electricity generation (typically
around 55% in any year), provide a great deal of flexibility,
which means the electricity system as a whole can
integrate a lot more intermittent generation like wind
and solar efficiently. Also, the cost of rooftop solar and
grid-scale wind generation continues to fall, so we see
new renewable generation being the most obvious and
economic outcome to meet potential demand growth
in New Zealand.
Our commitment to renewable energy isn’t limited to
New Zealand. This year we purchased the Hume, Burrinjuck
and Keepit hydro power stations in Australia, and we have
entered a number of Power Purchase Agreements with
renewable developers. We have aspirations to grow our
customer base in Australia significantly and believe that
growth will be underpinned by new renewable generation.
We see this growth as a differentiator from the other
New Zealand electricity companies.
From now, we are net zero carbon across our Group
for Scope 1 and 2 emissions, through purchasing and
cancelling carbon credits (NZUs from forestry). We’re
currently reviewing all the data that we have for our value
chain and suppliers, looking for more ambitious ways
to reduce our emissions. Realistically, we know that we
cannot eliminate all use of carbon from our operations
which is why we have committed to native forest planting
this year where possible on our land. By 2025, we plan to
be offsetting emissions from across the full value chain of
our operations (including Scope 3 emissions) using carbon
credits we have grown ourselves.
We’re supporting a number of New Zealand businesses to
achieve their long-term plans to convert their coal-fired
boilers to electricity, and we believe the electricity industry
can play an important role in converting other industrial
users of fossil fuel technologies to renewables.
We believe New Zealand must lead the way in converting
our light transport fleet to electric. With New Zealand’s
mostly renewable electricity system, it just makes so
much sense environmentally and would create a source of
competitive advantage for our country. We’ve successfully
achieved our target of converting 50% of our passenger
fleet to full electric. We have now set ourselves a more
ambitious target of converting 90% of our passenger
fleet to electric in 2020. We have been actively working
with Drive Electric and other partners to provide support
for New Zealand businesses that are wanting to convert
their car fleet to electric. As businesses change their
procurement practices to buy electric, New Zealand will
start to build a second-hand EV fleet that will make EVs
more assessable for everyday kiwis.
Meridian’s position as a leader in sustainability has
allowed us to attract and retain customers who have
similar values to ours and are deeply concerned about the
environment. This year Meridian was again named as one
of New Zealand’s most sustainable brands in the Colmar
Brunton Better Futures report. Meridian has been ranked
as one of the top five most sustainable brands by Colmar
Brunton for the past four years.
Underpinning all of this is our role as a responsible
generator. We strive to make sure that the people,
groups and communities working and living near our wind
and hydro assets feel included and consulted, and trust
our record as a respectful steward of the environments of
which we are a part.
HYDROLO GY. Our New Zealand generation business
is founded on our seven hydro stations in the Waiau and
Waitaki catchments, so hydrology (how much it rains) in
those catchments can have an impact on our year-to-year
earnings. Dry conditions, like the ones we experienced
at times during this financial year can create a commercial
risk. This can create high wholesale market prices during
times when lake levels are low. Conversely, when the lakes
are full, wholesale market prices can fall to low levels due
to the surplus of water and hydro capacity.
We use our vertically integrated business model to
manage this commercial risk and achieve as much price
certainty as we can for our customers and reliable returns
for our investors. In addition, we have agreements with
stakeholders that provide us with increased flexibility in
how we use lake water storage, and we transact a range
of financial instruments with counterparties as forms of
‘dry-year insurance.’

CHAIR AND CHIEF EXECUTIVE VIEW
00:05
Drought and floods are part of our business and we
continue to learn and adapt our risk management practices
to get better at managing difficult trading conditions.
We think this is apparent in the relatively stable and strong
cash flows that the business has produced over a number
of years irrespective of the weather.
THE FINANCIAL RESULTS. The two periods of dry
conditions during the first half of the financial year meant
year-on-year earnings were down for that period. Improved
inflows into our hydro catchments supported a stronger
second-half performance and all up New Zealand Energy
Margin for the year was 0.4% higher than the previous
financial year.
Our operations in Australia also delivered good growth
and demonstrated the value of our strategy to diversify
the Meridian business geographically. Australian energy
margin growth of $12 million was a significant driver of
the overall Group EBITDAF growth.
EBITDAF was 1.4% higher than the previous financial year.
Resilient cash flows enabled dividend growth, with the
company declaring a final dividend 3% higher than last
year. Total dividends paid during the 2018 financial year
were 18.96 cents per share, 2% higher than in FY17.
Combined with the 7% increase in share price during FY18,
this amounted to a total shareholder return (TSR) of 14%
in the year to 30 June 2018.
Meridian has also declared a final special dividend of
2.44 cents per share ($6.25 million) under the company’s
existing five-year capital management programme to
return $625 million to shareholders. While the company’s
existing five-year capital management programme runs
through to 2020, the Board is considering the medium-term
outlook and future capital requirements of the business.
Under current circumstances the Board considers it
appropriate to signal now its intention to pursue a further
two years of capital management beginning in August 2020,
seeking to return a further $250 million to shareholders.
The Board will continue to consider its intention to extend
the capital management programme in light of possible
future impacts to the financial position of the company
and alternative uses of capital.
NEAR TERM OUTLOOK. We finished the year in good
shape from a hydro storage perspective. We are well
positioned to see out the remaining winter months before
the spring snow melts start to arrive in the lakes.
In March, the Government released terms of reference
for a review of the price of electricity in New Zealand.
Meridian believes that the New Zealand electricity
market is largely delivering fair, efficient, reliable and
sustainable outcomes for New Zealand consumers.
We believe distribution pricing reform should if possible
be accelerated to ensure that economic price signals
are in play to support appropriate investment in new
technologies such as rooftop solar and EVs, and to avoid
the risk that those who can least afford it end up paying
for more than their share. Overall, we are supportive of
the review and look forward to the outcome in due course.
But we do think the Government (through the review) needs
to take a considered approach when attempting to fix wider
social and affordability issues to ensure that it doesn’t
negatively impact on competition or the investment needed
to maintain security of supply and thereby delay transition
to a low-emissions economy.
This year the Productivity Commission released its draft
report on how New Zealand can transition to a low-emissions
economy. The report suggests that New Zealand climate
change policies to date have not been effective in reducing
domestic emissions.
We agree with the Productivity Commission’s warning that
we need to be wary of changes in the electricity sector
that have the unintended impact of driving price increases
that slow down the electrification of transport and the
transformation of the thermal-powered industrial plant
in this country.
Separately and collectively, these initiatives indicate
a commitment through Government policy and a range
of user groups to increase the pace of change when it
comes to New Zealand’s climate change actions.
We welcome this new tone of commitment from
Government and the ambitious targets that it looks set
to implement. We look forward to our role in supporting
and enabling other sectors to decarbonise and reduce
their emissions through renewables.
We were disappointed to see the Electricity Authority
further delay the transmission pricing review. Whilst it
now seems likely the review will be delayed into next year,
we remain supportive of its purpose, logic and goals.
Australia, unlike New Zealand, generates most of it’s
electricity by burning fossil fuels and faces some difficult
policy decisions when establishing some form of clean
energy target. We are supportive of and engaged in the
Federal and State Governments’ political and regulatory
attempts to improve the electricity market in Australia.
“ Meridian’s position as a leader in sustainability has allowed us
to attract and retain customers who have similar values and are
deeply concerned about the environment. This year Meridian
was again named as one of New Zealand’s most sustainable
brands in the Colmar Brunton Better Futures report.”

00:06
On behalf of the Board and the Executive Team, we would like to thank our
shareholders for continuing to invest with us, our customers for their relationships
and loyalty, our stakeholders for the interactions we have had with you throughout
the year and of course our people for their energy and enthusiasm in helping
Meridian deliver a sustainable future through renewable energy.
VISIT MERIDIAN.CO.NZ/INVESTORS TO DOWNLOAD THE FULL
MERIDIAN INTEGRATED REPORT FOR THE YEAR ENDED 30 JUNE 2018.
This year’s Integrated Report aims to provide a concise summary of the year in review, and the way in which Meridian takes
care of its customers, people, local communities, iwi and the environment which in turn supports our ability to continue
delivering shareholder returns. This way of reporting is significantly more meaningful and engaging than typical reports,
and we encourage you to read it and would love your feedback which you can email to investors@meridianenergy.co.nz.
FIVE-YEAR PERFORMANCE
1
EBITDAF
200
400
600
800
20142015201620172018
585
618
657
666
650
0
$M
CASH FLOW FROM
OPERATING ACTIVITIES
200
300
400
500
20142015201620172018
433
440
470
427
452
0
$M
100
NET PROFIT AFTER TAX (NPAT)
200
250
300
20142015201620172018
230
247
200
201
185
0
$M
100
150
50
DIVIDENDS DECLARED
10
15
20
201620172018
0
$M
Ordinary
dividends
Special
dividends
5
18.23
5.35
13.01
2.00
18.38
4.88
18.91
4.88
19.20
4.88
14.32
20152014
14.03
13.50
12.88
11.01
UNDERLYING NPAT
100
150
200
250
20142015201620172018
195
209
221
206
233
0
$M
50
TOTAL SHAREHOLDER RETURN (TSR)
10
20
30
40
0
%201620172018
19%
33%
31%
14%
20152014
17%
Meridian
Peer group median
1 Financial years ended 30 June 2014-2016 as reported. 2017-2018 include effects from the adoption of NZ IFRS 15 Revenue from Contracts with Customers.
Financial year ended 30 June

Meridian Energy monthly operating report for July 2018 Meridian Energy Director resigns

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.