November 2018 Operating Report

Monthly Operating Report
November 2018

For the month of November 2018
»The Customer business recorded:
•Mass market electricity and gas sales of 317 GWh
(November 2017: 319 GWh)
•Mass market electricity and gas netback of
$92.82/MWh(November 2017 $90.39/MWh)
»The Generation business recorded:
•Contracted Wholesale electricity sales, including
that sold to the Customer business, totalled 657
GWh(November 2017: 691 GWh)
•Electricity and steam net revenueof $68.71/MWh
(November 2017: $65.56/MWh)
•Electricity generated (or acquired) in the month of
796 GWh(November 2017: 761 GWh)
•The unit generation cost, which includes acquired
generation was $29.39/MWh(November 2017:
$31.54/MWh)
November overview
Operating reportContact Energy Limited
2
»Otahuhufutures settlement wholesale price for the 1
st
quarter of 2019 (ASX):
•As at 18 December 2018: $128/MWh
•As at 30 November 2018: $96/MWh
•As at 31 October 2018: $112/MWh
»As at 18 December 2018, South Island controlled
storage was 97% of mean (30 November 2018: 104%)
and North Island controlled storage was 73% of mean
(30 November 2018: 66%)
•As at 18 December 2018, total Clutha scheme
storage (including uncontrolled storage) was 67%
of mean
•Inflows into Contact’s Clutha catchment for
November 2018 were 106% of mean (October
2018: 89% September 2018: 72%, August 2018:
99%)
Contact completed the sale of Rockgason 30 November 2018
Contact’s EBITDAF for FY19 for LPG was $14m (unaudited)
Full year FY18 EBITDAF for LPG was $32m, while the prior
comparative period EBITDAF was $17m
In line with the new operating segments announced in August
2018 and the completion of the asset sales, the monthly
operating reporting has been updated
For more detail refer to page 6 onwards

Hydro storage and forward prices
New Zealand controlled hydro storage against mean
Operating reportContact Energy Limited
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
0
20
40
60
80
100
120
140
CY18CY19CY20CY21
$/MWh
30/06/201731/10/201830/11/2018
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201731/10/201830/11/2018
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Dec
17
Jan
18
Feb
18
Mar
18
Apr
18
May
18
Jun
18
Jul
18
Aug
18
Sep
18
Oct
18
Nov
18
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean

Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0%
20%
40%
60%
80%
100%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Nov-18Nov-17Oct-18
0%
20%
40%
60%
80%
100%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Nov-18Nov-17Oct-18
0
50
100
150
200
250
300
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY18 BENFY19 BENFY18 OTAFY19 OTA

Electricity demand
Operating reportContact Energy Limited
5
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on November 2017
Total national demand (FY17, 18 and 19)
»New Zealand electricity demand was down 2.8% on November 2017 (up
0.8% on November 2016)
•Cumulative 12 months demand for December 2017 to November 2018 of
41,318 GWh is 0.5% higher than the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(3%)
1%
3%
0%
(7%)
1%
(41%)
2%
0%
(2%)
1%
1%
Year
2%
(2%)
(25%)
(5%)
(3%)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1617181617181617181617181617181617171817181718171817181718
GWh
North IslandSouth IslandNZAS

New operating segments provide transparency
6
Operating reportContact Energy Limited
The new operating segments provide a clearer view of profitability in
the operating businesses, as the segments exclude indirect Corporate
costs
»Combining C&I and Generation -C&I prices have trended to wholesale levels and large customers are a focus for
decarbonisationand renewable development
»Divested Rockgas
»Revenue from the sale of
electricity to the wholesale
market, to C&I customers and to
the Customer segment, less the
cost to generate and/or
purchase electricity and costs to
serve and distribute electricity to
C&I customers
»Revenue from delivering
electricity, natural gas, LPG
service revenue, broadband
and other products and
services to mass market
customers less the cost of
purchasing those products and
services, and the costs to
serve customers
»Corporate functions (Finance and
Risk, Governance, People &
Safety, Board, Leadership team
and an allocation of ICT costs)
CUSTOMER
WHOLESALE
CORPORATE
New operating segments
This presented an opportunity to develop clearer disclosures of net generation positions. This will assist with Wholesale
channel optimisation decisions and a wider understanding of the drivers of Wholesale profitability

Customer business
7
Operating reportContact Energy Limited
What is Netback?
»Measures the performance of
the Customer business.
»This enables the performance
of the retail channels to be
measured without using an
energy cost. The netback is
meant to cover, inter alia, the
net purchase cost, capital
return, risk margin and a retail
margin.
Electricity revenue from mass market customers
Add: Revenue from gas sales, broadband and legacy meters
Less: Carbon emission costs on the sale of retail gas
Less: Electricity distribution network costs, meter costs and electricity levies
Less: Gas distribution network costs, meter costs and gas levies
Less: Direct operating costs to serve the customer, (excludes head office allocation)
Customer netback ($/MWh)
x
Massmarket electricity and gassales
(GWh)
Electricity sales to Customer business (GWh)
x
FPVV market linked supply from Wholesale
(FY18 average: $80/MWhat the GXP ie
before network losses)
Retail gas sales (PJ)
x
Average gas cost
(FY18 average: $5.80/GJ)
NETBACK
ELECTRICITY COST
GAS COST
Estimating Customer EBITDAF from the operating report
Components of EBITDAF

Wholesale business
8
Operating reportContact Energy Limited
The wholesale business revenues are predominantly linked to ASX futures
Generation costs
•Electricity transmission and levies
•Thermal fuel (gas and diesel)
•Carbon costs
•Gas transmission and levies
•Wholesale operating costs
Acquired generation cost
•Cost of electricity CFD purchases
bought for fuel replacement
•Cost of options for fuel replacement
Electricity sales to Customer
•Fixed price variable volume sales to Customer
business mass market at a market price
Electricity sales to C&I (netback)
•Fixed price variable volume sales to C&I,
includes retailing margin. C&I is shown as a
netback (i.e. net of all pass through and cost to
serve)
•Only the margin from C&I spot sales is shown
(volumes and costs removed –agency
relationship only)
•Direct C&I sales from a generation site
CFD electricity sales
•Revenue from contracts for difference (CFD) –
includes support for NZAS andretailers
Other income
•Revenue from the sale of steam, net proceeds
on wholesale gas sales, net proceeds on
ancillary services, ASX market making and
other income
CONTRACTED
GENERATION COST
TRADING / MERCHANT
Total electricity and steam revenue ($/MWh)
x
Contracted electricity and steam sales (GWh)
Unit generation cost (including acquired
generation) ($/MWh)
x
Electricity generated (or acquired) (GWh)
Spot revenue and settlement on acquired
generation (GWAP)
x
Spot electricity sales + acquired generation (GWh)
Spot purchases and settlement on CFDs sold
(LWAP)
x
Spot exposed purchases / CFD settlement (GWh)
Spot electricity sales to the wholesale
market / settlement of acquired generation
•Spot electricity sales
•Settlement on acquired generation
Purchases from the wholesale market /
settlement on CFD sales
•Spot electricity purchases
•Settlement on CFD sales
Estimating Wholesale EBITDAF from the operating report

Additional insights
9
Operating reportContact Energy Limited
EBITDAF
Customer business EBITDAF (see page 8)
Add: Wholesale EBITDAF (see page 9)
Add: LPG EBITDAF -Sold 30 November 2018 -FY18: $32m, FY19: $14m, FY20: nil
Less: Corporate costs (FY18: $24m), will only be updated at results (half and full)
Q: Why are Wholesale contracted sales higher than previously reported?
A: Contact now reports on the gross CFD sales made (these where previously net settled into wholesale revenue), this
includes the CFD to support the Tiwaismelter and other market participants. The settlement costs of these contracts has
also been included as an effective electricity purchase. Grossing up the CFDs also give a clearer understand of Contact’s
effective generation and sales position.
Q: Why are C&I sales volumes lower than previously reported?
A:Contact acts as an agent to allow some sophisticated C&I customers access to the wholesale spot market, as Contact
does not take any risk or generate to cover this load, these sales (along with the costs) are eliminated from what is reported.
For further information please refer to page 14 for contact details to discuss.
FAQ:

-
10
20
30
40
50
60
-
100
200
300
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600
700
800
900
17 18 17 18 17 18 17 18 17 18 17 18 18 19 18 19 18 19 18 19 18 19 18 19
$/MWh
GWh
GeothermalHydroThermalAcquired generationContracted electricity salesUnit generation cost (RHS)
Contact’s Wholesale business performance
Generation mix, gross sales position and unit generation cost (FY18 and 19)
Operating reportContact Energy Limited
10
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year

-
20
40
60
80
100
0
100
200
300
400
500
600
17 18 17 18 17 18 17 18 17 18 17 18 18 19 18 19 18 19 18 19 18 19 18 19
$/MWh
GWh
Mass market electricity salesRetail gas salesNetback
Retail sales volumes and netback (FY18 and 19)
Contact’s Customer business performance
11
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Operating reportContact Energy Limited

Contact’s operational performance
12
Operating reportContact Energy Limited
Measure
The month ended The month ended The month ended Five months endedFive months ended
November 18November 17October 18November 18November 17
CustomerMass market electricity salesGWh259 263 285 1,628 1,661
Retail gas salesGWh59 57 75 435 408
Mass market electricity and gas salesGWh317 319 360 2,063 2,069
Average electricity sales price$/MWh248.94 248.57 246.06 241.38 238.89
Electricity direct pass thru costs$/MWh(119.98)(121.09)(117.87)(114.69)(115.92)
Cost to serve$/MWh(20.85)(22.79)(19.27)(16.16)(17.04)
Customer netback$/MWh92.82 90.39 90.48 92.02 90.26
Actual electricity line losses%8%10%7%7%8%
Retail gas salesPJ0.2 0.2 0.3 1.5 1.3
Electricity ICPs (rounded to the nearest 500)#406,000 417,500 406,500
Gas ICPs (rounded to the nearest 500)#65,500 64,500 65,500
WholesaleElectricity sales to Customer businessGWh282 292 306 1,751 1,799
Electricity sales to Commercial and IndustrialGWh261 297 261 1,312 1,453
Electricity CFD salesGWh114 103 143 592 518
Contracted electricity salesGWh657 691 710 3,655 3,770
Steam salesGWh66 61 69 296 276
Total electricity and steam net revenue$/MWh68.71 65.56 78.04 79.23 76.01
C&I netback (at the ICP)$/MWh67.92 67.48 86.06 84.10 85.41
C&I line losses%4%6%2%4%5%
Thermal generationGWh31 114 152 797 764
Geothermal generationGWh273 279 293 1,425 1,461
Hydro generationGWh440 293 358 1,680 1,377
Spot electricity salesGWh744 687 803 3,902 3,602
Electricity sales -DirectGWh10 10 10 42 40
Acquired generationGWh42 65 22 112 343
Electricity generated (or acquired)GWh796 761 835 4,055 3,985
Unit generation cost (including acquired generation)$/MWh(29.39)(31.54)(36.62)(33.88)(36.71)
Spot electricity purchasesGWh(533)(579)(557)(3,022)(3,212)
CFD sale settlementsGWh(114)(103)(143)(592)(518)
Spot exposed purchases / CFD settlementGWh(648)(681)(700)(3,614)(3,730)
Spot revenue and settlement on acquired generation
(GWAP)
$/MWh164.23 92.91 283.25 139.92 86.74
Spot purchases and settlement on CFDs sold (LWAP)$/MWh(181.10)(100.50)(297.49)(143.71)(91.87)
LWAP/GWAP%110%108%105%103%106%
Gas used in internal generationPJ0.5 1.3 1.5 7.6 7.5
Gas storage net movement (extraction) / injectionPJ0.4 (0.0)(0.5)(2.1)(0.1)

Contact’s operational performance -history
13
Operating reportContact Energy Limited
Measure
Jul-17Aug-17Sep-17Oct-17Nov-17Dec-17Jan-18Feb-18Mar-18Apr-18May-18Jun-18Jul-18Aug-18Sep-18Oct-18Nov-18
Customer
Mass market electricity sales
GWh
409 365 332 292 263 246 248 234 265 285 325 385 400 365 320 285 259
Retail gas sales
GWh
100 87 85 79 57 43 34 37 50 57 75 100 108 104 89 75 59
Mass market electricity and gas sales
GWh
509 453 417 371 319 289 282 272 315 342 400 485 508 469 409 360 317
Average electricity sales price
$/MWh
227.83 239.33 238.43 245.70 248.57 250.69 255.99 244.89 246.45 244.83 243.21 235.32 235.88 238.14 241.66 246.06 248.94
Electricity direct pass thru costs
$/MWh
(106.85)(110.32)(125.71)(119.86)(121.09)(131.98)(125.13)(120.77)(121.85)(115.04)(117.31)(112.56)(112.44)(111.06)(114.50)(117.87)(119.98)
Cost to serve
$/MWh
(14.25)(14.48)(17.17)(18.92)(22.79)(20.54)(25.21)(23.82)(22.09)(18.12)(16.21)(15.21)(13.26)(14.64)(15.15)(19.27)(20.85)
Customer netback
$/MWh
91.32 96.95 81.19 90.70 90.39 87.34 96.50 89.98 92.14 98.05 94.03 88.71 91.59 92.82 92.36 90.48 92.82
Actual electricity line losses
%
7%8%6%7%10%9%7%6%4%7%11%6%5%7%8%7%8%
Retail gas sales
PJ
0.3 0.3 0.3 0.2 0.2 0.1 0.1 0.2 0.2 0.2 0.3 0.4 0.4 0.4 0.3 0.3 0.2
Electricity ICPs (rounded to the nearest 500)
#
420,000 420,000 419,500 419,000 417,500 416,500 415,500 415,000 414,000 414,000 414,000 413,000 411,500 407,500 406,500 406,500 406,000
Gas ICPs (rounded to the nearest 500)
#
64,000 64,500 64,500 64,500 64,500 64,500 64,500 64,500 64,500 65,000 65,000 65,000 65,000 65,000 65,000 65,500 65,500
Wholesale
Electricity sales to Customer business
GWh
443 397 354 314 292 270 267 249 277 304 366 409 423 394 346 306 282
Electricity sales to Commercial and Industrial
GWh
284 293 288 291 297 283 285 261 288 268 284 253 254 269 267 261 261
Electricity CFD sales
GWh
106 104 103 103 103 140 109 84 94 101 111 108 115 113 108 143 114
Contracted electricity sales
GWh
833 795 745 707 691 693 660 594 660 674 761 771 791 775 721 710 657
Steam sales
GWh
26 58 67 64 61 54 44 46 51 55 39 20 30 63 68 69 66
Total electricity and steam net revenue
$/MWh
90.04 82.23 73.92 65.89 65.56 65.84 70.75 70.82 76.15 75.93 84.45 94.86 91.34 83.58 72.82 78.04 68.71
C&I netback (at the ICP)
$/MWh
103.25 91.24 89.34 75.91 67.48 70.57 75.52 78.79 86.57 86.35 93.51 106.26 96.37 89.81 80.03 86.06 67.92
C&I line losses
%
6%3%5%5%6%1%1%3%4%4%5%4%3%4%7%2%4%
Thermal generation
GWh
365 215 41 29 114 203 305 113 38 55 147 188 198 201 216 152 31
Geothermal generation
GWh
300 300 290 292 279 265 257 245 275 274 283 263 273 291 295 293 273
Hydro generation
GWh
185 270 325 305 293 258 191 267 323 366 380 316 317 322 243 358 440
Spot electricity sales
GWh
850 785 655 625 687 726 753 625 636 694 810 767 788 813 754 803 744
Electricity sales -Direct
GWh
3 8 9 10 10 10 10 8 9 8 4 1 4 9 10 10 10
Acquired generation
GWh
62 44 90 82 65 42 27 31 37 0 6 33 17 9 22 22 42
Electricity generated (or acquired)
GWh
916 837 755 716 761 777 790 665 682 703 821 802 808 831 785 835 796
Unit generation cost (including acquired
generation)
$/MWh
(45.60)(38.49)(31.48)(34.29)(31.54)(40.85)(44.68)(34.21)(28.56)(23.78)(27.06)(33.82)(35.22)(31.85)(36.27)(36.62)(29.39)
Spot electricity purchases
GWh
(723)(682)(632)(595)(579)(543)(542)(501)(557)(564)(646)(661)(673)(654)(604)(557)(533)
CFD sale settlements
GWh
(106)(104)(103)(103)(103)(140)(109)(84)(94)(101)(111)(108)(115)(113)(108)(143)(114)
Spot exposed purchases / CFD settlement
GWh
(829)(787)(735)(697)(681)(683)(651)(586)(651)(666)(757)(770)(788)(767)(711)(700)(648)
Spot revenue and settlement on acquired
generation (GWAP)
$/MWh
137.88 82.28 54.51 53.43 92.91 120.45 118.17 65.04 58.40 56.91 56.82 101.42 79.16 82.66 86.51 283.25 164.23
Spot purchases and settlement on CFDs sold
(LWAP)
$/MWh
(149.05)(86.05)(58.20)(57.51)(100.50)(124.77)(125.81)(69.57)(62.03)(62.05)(63.62)(105.45)(80.72)(86.52)(89.73)(297.49)(181.10)
LWAP/GWAP
%
108%105%107%108%108%104%106%107%106%109%112%104%102%105%104%105%110%
Gas used in internal generation
PJ
3.1 2.0 0.6 0.5 1.3 2.0 2.7 1.2 0.6 0.7 1.4 1.4 1.8 1.8 1.9 1.5 0.5
Gas storage net movement (extraction) / injection
PJ
(1.0)(0.2)0.5 0.6 (0.0)(0.7)(0.5)0.2 0.3 0.5 0.4 (0.4)(0.3)(0.7)(1.0)(0.5)0.4

Keep in touch
Operating reportContact Energy Limited
14
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@ContactEnergy
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investor.centre@contactenergy.co.nz
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+64 4 462 1323
+64 21 072 8578
Investors
Matthew Forbes -Investor Relations Manager
To find out more about Contact Energy