Contact completes the sale of Ahuroa Gas Storage facility

Contact Energy Limited. Level 2 Harbour City Tower, 29 Brandon St, Wellington 6011. PO Box 10742 Wellington 6143.
P: +64 4 499 4001 F: +64 4 499 4003 contactenergy.co.nz


1 October 2018


Contact completes the sale of the Ahuroa Gas Storage facility

Contact Energy (Contact) has completed the sale of the Ahuroa Gas Storage facility and
associated assets to Gas Services New Zealand (GSNZ), an associate of First Gas Limited.
The Ahuroa Gas Storage Facility will operate as Flex Gas (www.flexgas.co.nz).

One of the conditions precedent of the transaction was GSNZ obtaining an IRD binding
ruling as to the tax treatment of the main assets it acquired. The parties have agreed to
complete the transaction despite the condition remaining unsatisfied. While the terms of the
agreements are substantially unchanged, $10 million of the total consideration of $200
million remains contingent on obtaining a future favourable binding ruling in line with the
historic treatment.

The initial $190 million cash proceeds received from the disposal will be subject to income
tax payable of approximately $45 million with net transaction proceeds of $144 million (after
transaction costs of $1 million) applied to the reduction of debt.

Contact is expected to record an unaudited estimated gain on the disposal of assets of
approximately $5 million.

Until there are additional long term customers of the facility, S&P will capitalise the storage
service payments leaving the S&P net debt to EBITDAF ratio substantially unchanged on
completion. Contact and GSNZ remain confident in the further commercialisation of the
facility.

For further information please contact:

Investor enquiries:
Matthew Forbes
Investor Relations Manager
+64 21 072 8578

Media enquiries:
Andrew Austin
Communications Advisor
+64 21 644 167