Investor Presentation

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

6 November 2018

Contact hosted invited institutional investors and analysts for dinner in Taupo on Monday evening in
advance of an investor day and tour of the company’s geothermal generation assets. Dennis Barnes,
Contact Chief Executive, presented a brief update on current performance.

Flexible generation assets and focus on cost efficiency grows cash flow

Progress on our strategy
“Contact’s strategy remains to optimise the Customer and Wholesale businesses to deliver strong
cash flows, which are ultimately for distribution to our shareholders” said Dennis Barnes, Contact
Chief Executive.
“The focus on improving the operational performance and the simplification of our Customer and
Wholesale businesses is driving a relentless focus on growing cash flow by delivering cost efficiency
which has us targeting operating costs $18m lower in FY19.
In the last year, we announced two significant transactions which are key enablers to accelerate the
delivery of our strategy through simplification and adding flexibility into our business - the sale of
Ahuroa gas storage (AGS), and the sale of the Rockgas LPG business.
Last month, we completed the sale of AGS and received $190 million in cash, with a further $10
million contingent on the new owner obtaining a favourable binding ruling in line with our tax
treatment. Standard and Poors (S&P) will initially capitalise the storage service payments leaving the
S&P net debt to EBITDAF ratio substantially unchanged. However, Contact and FlexGas, the new
operating entity, are increasingly confident in the further commercialisation of the facility which will
trigger a S&P re-assessment, lowering our key debt ratio.
We are making good progress to satisfy the remaining conditions in connection with the sale of
Rockgas and expect to have the sale complete in December, with the $260 million in sale proceeds
applied to the reduction of debt. This will return our net debt to EBITDAF ratio to well below 2.8x,
which secures our BBB credit rating and satisfies the conditionality in our current distribution policy.”
said Mr Barnes.

Strategy Focus areas Progress
Customer
A service and
value focussed
retailer,
connecting
customers and
communities
to smart
solutions that
make living
easier for them
now, and in
the future

» Move to a simple,
lean operating model
centred on the
customer experience
reinventing key
customer experiences
and processes
» Capable employees,
identifying and driving
performance
initiatives with
ownership and
accountability
» Transform technology
to drive both
efficiency and better
automated customer
experiences
» Reposition the brand
and reputation from a
strong operational
» The Customer business continues to
perform well in a highly competitive
market, with strong customer
advocacy as measured by net
promoter scoring and a slight
increase in margins as other
operating expenses continue to
reduce
» Despite volatile wholesale prices,
heavy discounting and large sign on
credits remain the predominant tools
for customer acquisition
» While Contact electricity
customer numbers have
reduced this financial year,
we have a number of
initiatives in place to address
this. The decision to not
renew a large customer
accounted for over half of our
year to date losses and is an

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
retailer to a smart
customer solutions
provider

example of how we are
continuing to balance
customer profitability with the
value received from the
marginal customer
» The rebrand is resonating with
customers
» Introduced smart customer solutions
which our customers value by making
their life easier, this includes weekly
or fortnightly billing payment options
which leverage smart meter data
» Launch of our PrePay product so that
customers are not only able to keep
track of their usage and manage
payments via the app but also
receive all the benefits available to a
post pay customer – which includes
access to discounts and rewards. So
far 71% of customers on this product
would have failed industry credit
checking processes and therefore
would not historically have been able
to get signed up with Contact
» Product planning well progressed
with “free-bill”, an innovative reward
and budgeting offering, in the pipeline
– other customer centric offerings
under development
» Launched our first energy and
broadband advertising campaign as
we look to continue to grow our
broadband offering which now
number more than 3,000
connections
» Investing in our digital and data
capability to understand and improve
customer experience and provide
more choice in how customers
interact with us. Our customers will
see both the Mobile App and the
website continually improved with
new features. These investments are
also building a platform from which
we will further reduce costs and
develop new, innovative propositions

Wholesale
An innovative,
safe and
efficient
generator
working with
business
customers,
partners and
suppliers to
decarbonise
New Zealand’s
energy sector

» Sustainable cost
reduction
» Strengthen
geothermal capability
to remain as a
recognised world
leader
» Partner with
customers on
mutually beneficial
decarbonisation
opportunities
» Contact operates in weather
dependant commodity markets.
Hydrological variability is managed by
using portfolio flexibility and a strong
risk management framework which
has been tested by the current gas
supply constraints
» We will further outline our progress
on our Wholesale strategy tomorrow,
which includes:
» How we think about
sustainability and how the
Wholesale division is

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
» Develop options to
enable the economic
substitution of thermal
generation with
renewables
» Lower the cost of
geothermal to ensure
Contact development
options are cost
competitive with
firmed intermittent
renewables

planning for a lower carbon
future
» TCC and its future role
» Insight into our high quality
and low cost geothermal
operations
» A preview of the many
options for the continued
operations at Wairakei. My
historic comments on the
cost of continuing operations
will seem conservative
» A rich set of brownfield
development opportunities
that will only be developed if
observable demand growth
or contracted by customers

Underpinned by a disciplined and transparent approach to
operating and capital expenditure while continuing to
investigate ways to optimise our portfolio of assets

» Capex spend is on target
» Contact is not integrated into
upstream LPG supply and is exposed
to the fluctuations in oil commodity
prices which are 34% up on the prior
period.
» Focusing on our core areas of
advantage will be key to succeed in
today’s markets and allow us to
participate in those that are only just
starting to emerge. For now the focus
remains on the reduction of
controllable costs, simplification of
the organisation and asset portfolio
and seeking opportunities to deliver
value from scale efficiencies.

Outlook

“With regards to the current review of the electricity sector, Contact agrees with the Panel’s
assessment that the electricity system is working well to produce reliable and sustainable electricity
supply.

Where it isn’t working so well is for those customers who are struggling to pay all their household bills
and we believe the government, social agencies, Contact and the industry can do more for these
customers and we are accelerating the design of new products to play our part.

The current market settings have delivered and changes that would undermine the current
momentum or have unintended consequences should be avoided. We believe customer centred
specific action is necessary not a “one size fits all” approach.

Contact EBITDAF for the financial year to date is higher than the prior comparative period, having
benefitted from comparatively stronger renewable generation following record low inflows during the
first quarter of FY18. In addition, our flexible generation portfolio and stored gas reserves saw an
increase in merchant sales to support the market during the recent high priced periods as the market
responded to gas field outages and lower national hydro storage levels. This has been partly offset by
$3m in higher LPG product costs, as well as payments to secure flexible gas storage which reduce
EBITDAF by $14 million a year from 1 October 2018.

Gas production has recently not been as reliable as we have come to expect but we are unable to
ascertain whether these are one-off in nature or the start of a shift in medium term gas availability.

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
Contact has not contracted for material volumes of gas for calendar year 2019, which is not unusual
for this stage of the year, but is engaging with suppliers. In addition to the gas we expect to contract,
we have access to stored gas in AGS and other contractual options which will give us appropriate
access to energy for our customers.

Contact will continue to focus on delivering operating free cash flow growth, which along with a
strengthened balance sheet will support increasing dividends over time” said Mr Barnes.
ENDS
For further information please contact:

Investor enquiries: Matthew Forbes +64 21 072 8578

---

Contact Energy | Investor day | 6 November 2018
2018 Investor day
1
Te MihiPower Station
6 November 2018

Contact Energy | Investor day | 6 November 2018
2
Disclaimer
This presentation may contain projections or forward-looking statements regarding a variety of items. Such
forward-looking statements are based upon current expectations and involve risks and uncertainties.
Actual results may differ materially from those stated in any forward-looking statement based on a number
of important factors and risks.
Although management may indicate and believe that the assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there
can be no assurance that the results contemplated in the forward-looking statements will be realised.
EBITDAF, underlying profit, free cash flow and operating free cash flow are non-GAAP (generally accepted
accounting practice) measures. Information regarding the usefulness, calculation and reconciliation of these
measures is provided in the supporting material.
Furthermore, while all reasonable care has been taken in compiling this presentation, Contact accepts no
responsibility for any errors or omissions.
This presentation does not constitute investment advice.

Contact Energy | Investor day | 6 November 2018
3
Agenda
1
Wholesale
2
Geothermal advantage
3
Geothermal options
4
Closing remarks and Q&A
James Kilty
Mike Dunstall
Dennis Barnes
James Kilty

Contact Energy | Investor day| 6 November 2018
Wholesale –James Kilty

Contact Energy | Investor day | 6 November 2018
5
Wholesale
1
2
Environment and strategy
3
Organising for success
Wholesale market outlook
James Kilty –Chief Generation and Development Officer

Contact Energy | Investor day | 6 November 2018
About Contact
* -All figures as at June 30 2018
6

Contact Energy | Investor day | 6 November 2018
Sustainability is about integrating diverse
interests into our strategyto ensure long term
value creation.
It’swho we are.
•GRIintegrated reporting since 2015
•Supporter of the Taskforce on Climate Related
Financial Disclosure
•New Zealand’s first Green Borrowing Programme
•Adopting Science Based Targets to limit the effects
of climate change in line with scientific evidence
People
Culture
Economic
Environment
Sustainability is business as usual
How will this
impact people?
How will this impact
the environment?
How will this impact
our business & the
economy?
How will this impact
our culture?
Me haerengatahitatou
7

Contact Energy | Investor day | 6 November 2018
¹ A commitment made by the Government when New Zealand joined the
Powering Past Coal Alliance.
Societal action on climate change isincreasing
Macro-trendtowards a lower carbon future
8

Contact Energy | Investor day | 6 November 2018
9
Contact’s strategy
A service and value focussed
retailer, connecting customers
and communities to smart
solutionsthat make living easier
for them now, and in the future
An innovative, safe and efficient
generatorworking with business
customers, partners and suppliers to
decarbonise New Zealand’s energy
sector
CustomerWholesale
Optimising our Customer and Wholesale businesses to deliver
strong cash flows
Underpinned by a disciplined and transparent approach to operating and capital expenditure
while continuing to investigate ways to optimise our portfolio of assets

Contact Energy | Investor day| 6 November 2018
Strategy to optimise the business and to focus on
cash remains appropriate for now
The medium term demand picture appears increasinglypositive
Electricity demand
and supply
Regulatory settings
Decarbonisation
Retail competition
»National demand for electricity
has been flat since 2007
»Over 10 years renewable
generation has increased from
67% to >80%
»Long term wholesale prices firm
on no significant change to net
supply
»The Tiwaifourth potlineprovides
medium term demand strength
»Regulatory settings have
historically been focused on
creating a progressive, efficient
market structure
»The Government's
decarbonisation agenda and the
speed of movement to act on
climate change has increased
»Government targets are likely to
promote the uptake of further
renewable projects
»Known hydrology risks remain
»Further market led thermal
transition likely in the coming
years
»Retail sector competition
continues with 10 new entrants
in the last 2 years -growing Tier
2 market share has seen
pressure on retail gross
margins
»Increased competition for C&I
load from integrated generator /
retailers looking to match load
with their generation assets
Brand refresh and new customer propositions
to mitigate these headwinds
10

Contact Energy | Investor day | 6 November 2018
To capture value for shareholders we will accelerate
execution of the strategy
CustomerWholesale
»Move to a simple, lean operating model
centred on the customer experience
reinventing key customer experiences and
processes
»Capable employees, identifying and driving
performance initiatives with ownership and
accountability
»Transform technology to drive both efficiency
and better automated customer experiences
»Reposition the brand and reputation from a
strong operational retailer to a smart customer
solutions provider
»Sustainable cost reduction balanced against risk
»Strengthen geothermal capability to remain as a
recognised world leader
»Partner with customers on mutually beneficial
decarbonisation opportunities
»Develop options to enable the economic substitution
of thermal generation with renewables
»Lower the cost of geothermal to ensure Contact
development options are cost competitive with firmed
intermittent renewables
11
Capital discipline to continue

Contact Energy | Investor day | 6 November 2018
12
Delivering on continuous improvement
68%65%60%
Employee
engagement
TRIFR
5.23.33.2
Cash costs
1
$165m$185m$214m
3 year average
forward price
$78.60 / MWh$77.80 / MWh$77.00 / MWh
Plant availability
89%92%90%
Geothermal and
hydro volumes
3,323 GWh
3,479 GWh
3,233 GWh
3,562 GWh
3,297 GWh
4,090 GWh
Cost of energy
$28.00/MWh$27.61/MWh$26.71/MWh
FY16 FY17 FY18 FY19 (f)
Compellinguplift to near term cash flows from execution
73%
3.2
$143m
$79.50/ MWh
89%
3,350 GWh
3,950 GWh²
$21.00/MWh²
²Assumes mean hydrological sequences
1
Operating and SIB capital costs

Contact Energy | Investor day | 6 November 2018
13
Electricity is the solution, not the problem
Alower carbon economy will be enabled by electricity

Contact Energy | Investor day | 6 November 2018
14
Supportfurther decarbonisation of energy
Leveragingcapability to expandC&I products and services
Insightsand
relationships
will allow
Contact to
capture
value from
demand
growth

Contact Energy | Investor day | 6 November 2018
15
New Zealand's lowest cost geothermal producer
Operatingand capital cost of production
30
36
35
33
26
23
24
19
5
5
5
5
1
22
3
$20.27 /MWh
$19.90 /MWh
$20.31 /MWh
$17.92 /MWh
-
10
20
30
40
50
60
70
FY15 FY16 FY17FY18
Direct cash cost of geothermal ($m)
Geothermal operating costsCapex costsTransmission and leviesCarbon chargesGeothermal cash costs ($/MWh)

Contact Energy | Investor day | 6 November 2018
16
Wholesale sales revenue
Electricity sales
to Customer
Fixed price variable
volume sales to
Customer business
mass market at market
linked transfer price
Revenuefrom
contracts for difference
–includes support for
NZAS and direct C&I
Sales
volume
$314m
Electricity sales
to Commercial
and Industrial
Contracted
electricity sales
Steam revenue
Fixed price variable
volume sales to C&I,
includes retailing
margin
Revenue from the sale
of steam
3,648 GWh
$86.13/MWh
Revenue
Volume
weighted
average price
$285m
3,349 GWh
$85.10/MWh
$90m
1,356 GWh
$66.03/MWh
$25m
584 GWh
$42.78/MWh
Sales
channels
* -excludes merchant revenue

Contact Energy | Investor day | 6 November 2018
48
104
9
15
34
78
Electricity transmission & leviesGas costs (net of gas sales)
Gas transmision costsCarbon costs
Indirect operating costsDirect operating costs
17
Cost of supplying energy
($283m)
FY18 components of generation costs ($m)
Generation cost,
including gain on
acquired
generation (+$5m)
FY18 wholesale trading and cost of supply ($m)
840kt of carbon
($17/ NZU)
($681m)
7,416
GWh
$91.82/
MWh
($108m)
1,356
GWh
$79.92/
MWh
$744m
8,614
GWh
$86.39/
MWh
(100)
0
100
200
300
400
500
600
700
800
Wholesale revenue
(GWAP)
Costs to purchase
Customer and C&I
electricity
Cost to supply
contracted electricity
sales
$m
($45m)
17PJ of gas
used in
generation
($6.1/GJ)
(157GWh)
Net spot exposed
revenue

Contact Energy | Investor day | 6 November 2018
18
Demand outlook is positive long term
However, the sector has a bad track record of accurately
forecasting demand growth, investment discipline is key
30
40
50
60
70
80
90
19982003200820132018202320282033203820432048
TWh
NZ Historical DemandTranspowerMBIE - High
MBIE - LowProductivity Comm. HighProductivity Comm. Low
»Consensus demand
growth is
approximately 3 -7
TWhby 2030,
»Geothermal and
Wind expected to
provide this growth
»Annual growth rate
of approximately
0.7–1.5%

Contact Energy | Investor day | 6 November 2018
19
Manysources of lower carbongeneration will be
intermittent
Thermal generation will be needed for some time

Contact Energy | Investor day | 6 November 2018
20
Gas outlook
2018 gas production forecasts (2P)
»NZ has 10 years of reserves, further
investment needed to firm
»Recent deliverability and reliability has been
a concern
»Short term deliverability issues have resulted
in increasing coal imports

Contact Energy | Investor day | 6 November 2018
21
Carbon outlook
Carbon costs starting to send stronger price signals
0
5
10
15
20
25
1-Jul-151-Jan-161-Jul-161-Jan-171-Jul-171-Jan-181-Jul-181-Jan-19
$/ T
NZU spot price
Effective spot price including the surrender
Contact historic cost per Tonne of carbon emitted
+276%
Change since 2015
Spot price
+652%
Spot including
surrender changes
+244%
Contact weighted
average costs

Contact Energy | Investor day | 6 November 2018
Gas costs
$6/GJ
Carbon costs
$15/NZU
What does that mean for thermal generation
+/-$5/T on the NZU
+/-$2/MWh
Economics of the Taranaki combined cycle (TCC)
Short run marginal
cost (FY18)
$52/MWh
Current economics
Next major investment (2022) sensitivities
Gas
2022
refurbishment
capex
Carbon
+/-$1/GJ on the gas price
+/-$7.50/MWh
+$3.5/MWh
+$10/MWh for operating costs and
refurbishment capex (sunk)
22

Contact Energy | Investor day | 6 November 2018
23
Tiwai4
th
pot-line
recommissioned
AGSsale completed
OMV purchases Shell
NZ assets?
NZ election
ETS phase III
AGSexpanded
20202021
2022+
TCC major
maintenance
decision
HuntlyRankine (“swaptions”)
contracted to end 2022
Wairakei consents expire
(2026)
100% renewable target (2035
in a “mean year”)
2018
2019
Interim Climate
Change Commission
report
Electricity Pricing
Review
ETS review
Market developments, some of which we control, will
also impact renewable development timing

Contact Energy | Investor day | 6 November 2018
0
1000
2000
3000
4000
5000
6000
7000
Geothermal Generation (GWh)
Our renewable development programme can be
executed in stages as market conditions demand
24
Brownfield geothermal
range

Contact Energy | Investor day| 6 November 2018
Geothermal advantage –Dr Mike Dunstall

Contact Energy | Investor day | 6 November 2018
26
Geothermal advantage
1
Geothermal 101
2
Critical to creating value
3
4
Our geothermal resources
Sharingour successes
Dr Mike Dunstall –GM Geothermal Resources and
Development

Contact Energy | Investor day | 6 November 2018
27
Geothermal systems are formed at plate boundaries
The Taupo Volcanic Zone is formed by the subduction of the Pacific plate beneath the Indo-
Australian plate

Contact Energy | Investor day | 6 November 2018
28
In localised areas the heat reaches shallow depths
Specific natural upflowsof heat from the plate interaction, when charged with large volumes of
recharging water, give rise to underground geothermal reservoirs

Contact Energy | Investor day | 6 November 2018
We are able to harness the geothermal resource from
depths of up to 3,000m
29
Production
Cooling
Generation
Separation plant
Reinjection
14
3
2
5

Contact Energy | Investor day | 6 November 2018
Contact’s geothermal energy generation
30
3323 GWh
FY18 generation
430 MW
Stationcapacity
8%
of New Zealand’s
annual electricity
supply
122
in service wells,
90 production,
32 injection

Contact Energy | Investor day | 6 November 2018
Wairakei field was the first of its kind in the world
31
Wairakei power
station
commissioned
The Wairakei binary
plant is
commissioned
20052007
2012
The Wairakei
power station
consent renewed
Wairakei
bioreactor
commissioned
1958
2000
Poihipipower
station
purchased
TeMihi power
station
commissioned
2014

Contact Energy | Investor day | 6 November 2018
Wairakei-New Zealand's largestgeothermal field
32
$17.92
$14.23
$53.69
$20.29
$0
$10
$20
$30
$40
$50
Contact geothermalWairakei fieldOhaaki fieldTauhara field
Cost of Energy ($/MWh)
Operating costsSIB capexCarbonTransmission & Levies
Contact geothermal cash costs by field
»Consented until 2026
»Options to add 3rd unitatTe Mihi Unit 3 as well
asfurtherexploring Wairakei
»Significant value for interconnection and consent
variation
35.6
tCO
2
e / GWh across the field
91
in service wells
2,837 GWh
FY18 generation
70.7 TWh
of baseload renewable
generation since 1958
Wairakei extractionvia four interconnected power stations
delivering 85% of Contact’s total geothermal generation

Contact Energy | Investor day | 6 November 2018
Rethinking our Wairakei geothermal operations
1368 GWh
FY18 Te Mihi generation
99.6%
PoihipiFY18 availability
82.6%
Wairakei A&BStation capacity
factor
245,428
t/day average consumptionin
FY18
Redesigning Geo Metrics
3 0 . 4
G W h /mt
3 2 . 5 6
G W h / m t
1
3 1 . 4 6
G W h /mt
FY15FY18FY19YTD
1
–to end of Q1 FY19
Resource consent efficiency
33

Contact Energy | Investor day | 6 November 2018
»Consented until 2048
»Higher cost field, higher carbon emissions
intensity
»Improving injection constraints
»Geo40 silica extractioncreating diversified
resource use
34
385
tCO
2
e / GWh across the field
FY 2018
23
in service wells
280 GWh
FY18 generation
40 MW
October 2018 generation, back
to sustainable capacity
The Ohaaki fieldwill soon celebrate its 30
th
anniversary
ofproduction
$17.92
$14.23
$53.69
$20.29
$0
$10
$20
$30
$40
$50
Contact geothermalWairakei fieldOhaaki fieldTauhara field
Cost of Energy ($/MWh)
Operating costsSIB capexCarbonTransmission & Levies
Contact geothermal cash costs by field

Contact Energy | Investor day | 6 November 2018
At Tauhara we have had a presence since 1996
35
1996
Purchasesrights
to Tauharafield
from Electricity
Corporation of
New Zealand
2006
Tenon direct
heat plant
commissioned
2010
Consent to
develop 250
MW at
Tauhara
Te Huka
power station
commissioned
2010
1999
Purchases wells from
Crown and commences
supply to first heat
customer
2001
Obtains
consents for Te
Huka power
station

Contact Energy | Investor day | 6 November 2018
With a decade of operational experience through
the Tenon and Te Huka plants
36
»Consented until 2045
»Brownfield geothermal –Te Huka and
Tenon operating
»Consents for significant electricity or heat
supply expansion
38
tCO
2
e / GWh across the field
FY 2018
6
in service wells
196 GWh
FY18 generation
250 MW
of consented expansion capacity
$17.92
$14.23
$53.69
$20.29
$0
$10
$20
$30
$40
$50
Contact geothermalWairakei fieldOhaaki fieldTauhara field
Cost of Energy ($/MWh)
Operating costsSIB capexCarbonTransmission & Levies
Contact geothermal cash costs by field

Contact Energy | Investor day | 6 November 2018
Geothermal
capabilities
IdentifyresourcesManage resourcesCosteffective fuellingProject developmentCommercialexecutionValue engineeringSafetyReliableoperationsLow cost maintenance
Contact
capability
assessment
Geology and
geochemistry
Drilling execution
Reservoir engineering
Plant design
Operationand
maintenance
Project management
Underpinning these operations is world class geothermal
capability
37

Contact Energy | Investor day | 6 November 2018
370
02*
16 / 210 / 3
210
011
09
720
38
Without new development, the geothermal team
have been focused on innovation
»SIB wells drilled –major rig
»SIB wells drilled –minor rig
»Rig workovers/ broaching
»Coil tube workovers
»Contact proprietary technology workovers
»Chemical anti-scalantsystems
»Chemical interventions
F Y 1 0 –F Y 1 4
F Y 1 5 –F Y 1 9
O u t l o o k
~$2.50/MWh
1
1
–cost incurred in workovers, scale prevention,connection costs and wells drilled
* -shallow reinjection wells BR68 and BR69 being drilled at Ohaaki during November / December
»Current fuelling cost

Contact Energy | Investor day | 6 November 2018
Out of the box consenting and revised resource
optimisation is delivering value
Illustrative resource consent use of the Wairakei field
180,000
190,000
200,000
210,000
220,000
230,000
240,000
250,000
260,000
270,000
01-Jan01-Feb01-Mar01-Apr01-May01-Jun01-Jul01-Aug01-Sep01-Oct01-Nov01-Dec01-Jan01-Feb01-Mar
Mass extracted (T/day)
AnnualQuarterly
Move outage
Reduce maximum fuel requirement
Maximise efficient plant operation
39

Contact Energy | Investor day | 6 November 2018
Our steamfieldsystem enables this flexibility
Te Mihiwells
Western borefieldwells
FP16
FP15
FP14
Western borefield
Poihipi
Te Mihi
1
Te Mihi
2
Wairakei
Poihipiwells
Well capacity
Steamfield
capacity
Plant capacity
40

Contact Energy | Investor day | 6 November 2018
Te Mihiwells
Western borefieldwells
FP16
FP15
FP14
Western borefield
Poihipi
Te Mihi
1
Te Mihi
2
Wairakei
Poihipiwells
Well capacity
Steamfield
capacity
Plant capacity
40
We can flex our steam to different plants
When a Te Mihi unit comes out of service we can reduce mass and increase generation

Contact Energy | Investor day | 6 November 2018
We have history of environmental upgrades at
Wairakei previously
The world's first geothermal Bioreactor completed in 2012 now removes over 99.5% of all
Hydrogen Sulphide present in the Wairakeidischarge stream
Hydrogen sulphidescrubbing in action
42

Contact Energy | Investor day | 6 November 2018
Generation (GWh)
WairakeiPoihipiWairakei BinaryTe MihiTe Mihi Business Case (GWh)
Wairakei field generation, 1999-2020(f) vs the Te Mihi business case
3,000
2,500
1,500
2,000
1,000
500
0
20
(F)
15161419
(F)
18
(F)
17101105029913081201000706040309
2005
Wairakei binary
complete
2014
Te Mihi completed, initial
generation loss covered
by insurance and claims
2001
Poihipi plant purchased
We have demonstrated our proficiency and capability
over many decades
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Contact Energy | Investor day| 6 November 2018
Geothermal options –James Kilty

Contact Energy | Investor day | 6 November 2018
45
Geothermal options
1
Wairakei 2026
2
Tauharadevelopment
options
James Kilty –Chief Generation and Development Officer

Contact Energy | Investor day | 6 November 2018
Wairakei post 2026 –charting a sustainable path
Consenting and community
»Several consents on the
Wairakei Field expire in 2026 –
with the geothermal fluid take,
water use and discharge
consents being key
»All stakeholder groups need to
be considered –this includes
national as well as local issues
46
Reservoir trends
»We must understand the trends
of the reservoir over time, the
sustainable fluid take and how
to make best use of the energy
available
»The resource is performing
better than expected
Surface facilities
»The Te Mihiand Poihipiplants
utilise modern technology
including cooling towers. The
Wairakei plant (A and B
Stations) rely on the Waikato
River for cooling water supply
and is 60 years old
»Some modifications to the
plant are likely required to
manage discharges and to
extend asset lifetimes

Contact Energy | Investor day | 6 November 2018
Scenariosintegrate resource, plant and stakeholder
opportunities
47
Community
involvement –
tourism, heat
Share the benefits –
more cascade use
Water
stewardship
Reservoir
trends
4
Plant and
asset life
Me haerengatahitatou
–moving forward together
1
5
3
2
Decarbonising
New Zealand

Contact Energy | Investor day | 6 November 2018
2018201920202021202220232024202520262027202820292030203120322033203420352036
Geothermal Fluid Flow
Wairakei Filed MW
PoihipiTe MihiWairakei BinaryWairakei A&BTe Mihi fluidWestern Borefield Fluid
Post 2026 we expect the field will have significant fluid
supply under wellhead
48
Fluid available under wellhead post
2026 above Te Mihi and Poihipicapacity
Future generation on the Wairakei field is compelling

Contact Energy | Investor day | 6 November 2018
Wairakei options post 2026
OptionDescriptionCAPEX
1
Future
cash
cost
2
Complexity
Outage
duration
Plant
efficiency
Flexibility
Maintain
Wairakei
A&B
Maintain similar to
current operations
Repower
Wairakei
A&B
Station elements remain,
but main generating
plant replaced
Greenfield
Wairakei
Greenfield construction
of effective replacement
plant at Wairakei
Te Mihi
Unit 3
Greenfield construction
of Te Mihiunit 3
L
H
L
H
L
H
L
H
49
1
–ReconfigCapex refers to above normal Capex expected to be incurred in the period leading up to 2026 consent expiry
2
–Future Cash Cost refers to expected relative cash costs between scenarios over the preceeding25 -30 years from 2026.

Contact Energy | Investor day | 6 November 2018
50
Tauhara development
213,000
t/day of consent
geothermal fluid take
250 MW
consented capacity
9
years of generation
history on the field
(1,757 GWh)
4
completed
production wells
available for new
project

Contact Energy | Investor day | 6 November 2018
Tauharafield supports staged development
»New Zealand’s pre-eminent renewable
development
»Close proximity to 220 kV transmission grid
»Compact development eastern field fringe likely
51
»Emerging lower cost technology options in 30-80
MW range with increased scale at larger plants
»Later phases to extend reach to west and south
»Long run marginal cost mid $60’s/MWh

Contact Energy | Investor day | 6 November 2018
A brownfield expansion of Te Huka is attractive
52
»Significant excess of production and injection
fluid above plant capacity
»Unlocked via transmission connection point at
Tauhara
»Also low cost generation options –under
assessment
WellsSteamfieldPlant
Te Huka indicative current capacity (t/hr equivalent)

Contact Energy | Investor day | 6 November 2018
0
1000
2000
3000
4000
5000
6000
7000
Geothermal Generation (GWh)
Our renewable development programme can be
executed in stages as market conditions demand
53
Brownfield geothermal
range

Contact Energy | Investor day| 6 November 2018
Closing remarks andQ&A –Dennis Barnes

Contact Energy | Investor day | 6 November 2018
Summary
55
»Sustainability is the way we do things
»Contact is preparing for a lower carbon future –the thermal transition will be well managed
»Contact is a world class operator of geothermal assets and continues to lower the cost of
geothermal
»We have high quality and low cost geothermal operations
»Evaluating all options for future operations at Wairakei post 2026–alternatives are lower
capex than a 3rd Te Mihi unit
»A rich set of brownfield development opportunities that will only be developed backed by
observable and sustainable demand growth or contract

Contact Energy | Investor day | 6 November 2018
Question and answer panel
56
Dennis Barnes
Chief Executive Officer
James Kilty
Chief Generation and Development Officer
Dr Mike Dunstall
GM Geothermal Resources and Development