Mercury -- HY2019 Results and Interim Report

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STOCK EXCHANGE LISTINGS: NEW ZEALAND (MCY) / AUSTRALIA (MCY)

Mercury NZ Limited
Results for announcement to the market

Reporting Period Six months to 31 December 2018
Previous Reporting Period Six months to 31 December 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ1,079,000 13.0%
Profit (loss) from ordinary
activities after tax
attributable to security
holder
$NZ104,000 -20.6%
Net profit (loss)
attributable to security
holders
$NZ104,000 -20.6%

Interim/Final Dividend Amount per security Imputed amount per
security
$NZ0.062 $NZ0.0241111

Record Date 14 March 2019
Dividend Payment Date 1 April 2019

Comments: A supplementary dividend of $NZ0.010941 per share
will be payable on the interim dividend to shareholders
who are not resident in New Zealand

---

Page 1 of 2



Mercury earnings strong despite less water
26 February 2019 – Mercury came close to matching last financial year’s record first half performance despite less favourable
hydro conditions in the Waikato catchment leading to lower hydro generation.
Chair, Joan Withers said that earnings (EBITDAF
1
) of $302 million ($304 million
2
HY2018) reflected strong execution across the
entire business, underpinned by record spot market prices, a lift in net sales yields, a disciplined focus on costs and strong
execution of the planned work programme.
Mercury will pay a fully-imputed interim dividend of 6.2 cents per share on 1 April 2019 to its nearly 85,000 owners, including the
Crown. This represents 40% of the full-year ordinary dividend guidance of 15.5 cents per share, an increase of 2.6% on
FY2018.
“The period once again saw strong, focused execution of the company’s strategy. Mercury’s people have excelled in many
areas core to our business,” Mrs Withers said.
FINANCIAL RESULTS
EBITDAF for the period was boosted by movements in energy margin, where elevated wholesale price volatility and increased
geothermal generation experienced during the period came close to compensating for the higher hydro generation output in the
prior comparable period.
Net profit after tax for the period of $104 million was down from $131 million
2
(HY2018), negatively impacted by the change in
fair value of financial instruments (reflecting higher futures prices). Underlying earnings were steady at $114 million.
Stay-in-business capital expenditure of $45 million ($59 million HY2018) was focused on the advancement of refurbishment
work at Whakamaru and Aratiatia hydro stations, IT enhancements and the progression of Mercury’s Auckland office
consolidation to Newmarket which brings together around 550 people from multiple locations.
At $99 million for the period, operating expenditure was in line with HY2018.

HY2019 HY2018
EBITDAF ($m) 302 304
Net profit after tax ($m) 104 131
Underlying earnings after tax ($m) 114 114
Interim dividend (cents per share) 6.2 6.0

HY2019 MILESTONES
Mercury Chief Executive Fraser Whineray said that the ongoing programme of investment in core assets, such as the
refurbishment of Whakamaru and Aratiatia hydro stations contributed to the long-term sustainability of the business, while
securing the country’s renewable energy advantage. The programme is being further advanced, with a $75 million
modernisation project for Karapiro announced in January.
STOCK EXCHANGE LISTINGS: NEW ZEALAND (MCY) / AUSTRALIA (MCY)

NEWS RELEASE

1
EBITDAF = earnings, before interest expenses, taxes, depreciation, amortisation and the change in fair value of financial instruments.
2
Adjusted from HY2018 reported figures (EBITDAF $301 million; NPAT $132 million) to align with International Financial Reporting Standards (IFRS)
changes.

Page 2 of 2
“We are now five of nine stations into a carefully prioritised programme of upgrades that secures Mercury’s ongoing operations
for the long term, while delivering valuable capacity and efficiency improvements,” Mr Whineray said.
In the first quarter of the period, Mercury commissioned a grid-scale and grid-connected battery at its Penrose R&D centre,
trialling automated trading of battery stored electricity. The trial discharged 285MWh back into the grid in the first quarter of
operation.
DELIVERING CUSTOMER ADVOCACY
Mercury also advanced the ease by which customers can interact with the business through the successful launch of its
Mercury Go app, which has already achieved more than 30,000 downloads.
Mercury’s focus on customer value contributed to a reduction in customer numbers of 7,000 over the period but delivered a 4%
lift in the net sales yield across the mass market segment. Mercury brand trader churn, where a customer changes retailer
without moving house, at 7.4%, continues to be maintained at a rate lower than the market average (8.0%).
SPOT MARKET VOLATILITY
Mr Whineray noted that the sector experienced significant spot market volatility in the period, driven by an unusual alignment of
factors including multiple unplanned disruptions in New Zealand’s natural gas sector and low hydro inflows across the country.
“For context, however, the spot market still did not reach the Electricity Authority’s stress test scenario of $250/MWh for a
quarter. The Authority’s quarterly stress test is something that every electricity market participant’s board of directors is aware
of, by design,” Mr Whineray said.
Importantly none of Mercury’s mass market customers were impacted by those spot market conditions.
Mr Whineray said there were still lessons, and opportunities for improvement in how the sector responds.
“We believe the electricity market would benefit from a much stronger disclosure regime from thermal generators concerning
their fuel position and upstream gas and coal supplies, which would make it equivalent to the ability to monitor hydro positions
(lake levels) which are available in real time.”
FY2019 GUIDANCE CONFIRMED
Mercury’s FY2019 EBITDAF guidance remains at $515 million with anticipated 4,150GWh of hydro generation, subject to any
material events, significant one-off expenses or other unforeseeable circumstances including hydrological conditions.
FY2019 stay-in-business capital expenditure guidance remains at $95 million.
The full year ordinary dividend guidance remains at 15.5 cents per share, up 2.6% on FY2018. This would represent the 11
th

consecutive year of ordinary dividend growth.
ENDS
For further information:
Media – Craig Dowling 0272 105 337
Investors – Tim Thompson 0275 173 470



ABOUT MERCURY NZ LIMITED
Mercury’s mission is energy freedom. Our purpose is to inspire New Zealanders to enjoy energy in more wonderful ways and
our goal is to be New Zealand’s leading energy brand. We focus on our customers, our people, our partners and our country;
maintain a long-term view of sustainability; and promote wonderful choices. Mercury is energy made wonderful.
Visit us at: www.mercury.co.nz

---

Financial Results
Six months ended 31 December 2018
WILLIAM MEEK
Chief Financial Officer
FRASER WHINERAY
Chief Executive
26 February 2019

DISCLAIMER
This presentation has been prepared by Mercury NZ Limited and its group of companies (“Company”) for informational purposes. This disclaimer
applies to this document and the verbal or written comments of any person presenting it.
Information in this presentation has been prepared by the Company with due care and attention.However, neither the Company norany of its
directors, employees, shareholders nor any other person gives any warranties or representations (express or implied) as to the accuracy or
completeness of this information. To the maximum extent permitted by law, none of the Company, its directors, employees, shareholders or any
other person shall have any 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 projections or forward-looking statements regarding a variety of items.Such projections or forward-looking
statements are based on current expectations, estimates and assumptions and are subject to a number of risks, and uncertainties,including
material adverse events, significant one-off expenses and other unforeseeable circumstances, such as, without limitation, hydrological conditions.
There is no assurance that results contemplated in any of these projections and forward-looking statements will be realised, noris there any
assurance that the expectations, estimates and assumptions underpinning those projections or forward looking statements are reasonable.Actual
results may differ materially from those projected in this presentation.No person is under any obligation to update this presentation at any time after
its release or to provide you with further information about the Company.
A number of non-GAAP financial measures are used in this presentation, which are outlined in the appendix of the presentation. You should not
consider any of these in isolation from, or as a substitute for, the information provided in the unaudited consolidated financial statements for the six
months ended 31 December 2018, which are available at www.mercury.co.nz.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any
recommendation. The presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security andmay not be relied upon in
connection with the purchase or sale of any security. Nothing in this presentation constitutes legal, financial, tax or other advice.
2
DISCLAIMER

3
OUR MISSION

100% renewable generation
>Two low-cost complementary fuel sources
in base-load geothermal and peaking
hydro
Superior asset location
>North Island generation located near major
load centres; rain-fed hydro catchment
inflows aligned with winter peak demand
Substantial peaking capacity
>The Waikato hydro system is the largest
group of peaking stations in the
NorthIsland
High performance teams
>Dynamic company culture built on the
understanding that our people set
us apart
Track record of customer engagement
>Brand capital built through customer-led
innovation and rewarding loyalty
Long-term commercial partnerships
>With Maori landowners and other
key stakeholders
MERCURY’S COMPETITIVE ADVANTAGE
4
MERCURY

5
HY2019 HIGHLIGHTS

6
>Stable year-on-year earnings despite generation down 206GWh
>NPAT negatively impacted by the change in fair value of financial instruments (reflecting higher futures prices)
>Reduced FCF driven by a $40m increase in receivables (due to higher ASX margin balances) offset by lower CAPEX
HY2019 HIGHLIGHTS
385
304
131
114
158
59
83
380
302
104
114
126
45
84
0
100
200
300
400
500
Energy MarginEBITDAFNPATUnderlying EarningsFree Cash FlowSIB Capital
Expenditure
Declared Ordinary
Interim Dividend
$m
HY2018
HY2019
HALF YEAR FINANCIAL HIGHLIGHTS

7
HY2019 HIGHLIGHTS
One brand,
MERCURY
Bringing together our
heritage and our
customer-driven
innovation
$302m
STABLE EARNINGS
Near-record earnings maintained as
generation alignment with high spot
pricesoffset lower hydro generation
3,901GWh
GENERATION
Hydro down 246GWh from HY2018 as
inflows fell below average; geothermal up
40GWh on increased availability
MARKET THESIS
COMING TO FRUITION
Higher spot price volatility and futures
pricingreflecting short term fuel scarcity
but also improved market fundamentals
6.2cps
INTERIM DIVIDEND
Fully-imputed interim dividend increase of
3.3% versus HY2018
VALUE FOCUS
Mercury has maintained a disciplined
approach in pursuing value over volume
in a highly competitive retail market
INVESTMENT IN CORE
Whakamaruand Aratiatiahydro
refurbishment in progress with Karapiro
refurbishment announced; ensuring
sustainable long-term operation, while
delivering capacityand efficiency
benefits
HY2019 HIGHLIGHTS

DELIVERING CUSTOMER ADVOCACY
>Maintaining commercial discipline in competitive retail market
>Focus on the customer rather than customer numbers contributed to lower sales
volumes but a 4% uplift in volume-weighted average price received across the
Mass Market segment
>Mercury brand trader churn
1
increased to 7.4%
2
, but maintained lower than market
>Trader churn for all Mercury brands increased to 8.5%
2
with the transfer of
customers from Tiny Mighty Power to our main Mercury brand
>Delivering rewarding digital experiences
>Successful launch of our Mercury Go app with more than 30,000 downloads in Q2
FY2019
>Sustained brand momentum
>Our ‘Evie’ campaign continued to drive strong engagement with the Mercury brand
>Launch of Mercury Drive reinforced our support of e.mobilityadoption in NZ
>Fulfilment of our customer promises to Reward, Inspire and Make It Easy
>~154,000 customers
4
now registered to receive Airpoints™
>Over 100,000 customers engaging with our online usage tool every week
5
STRATEGIC DRIVERS & HY2019 OUTCOMES
8
1
Switching where a customer changes retailer without moving house
2
From EA data; 12-monthly rolling trader churn / total churn as at 31 December 2018
3
Based on Mercury’s monthly survey of residential customers, 6-monthly rolling
average to 31 December 2018 / 2017 for Mercury brand only
4
As at 31 December 2018
5
Weekly average over 6 months to 31 December 2018
20.4%
Total churn
2
HY2018: 18.9%
Market: 21.3%
7.4%
Mercury brand
trader churn
2
HY2018: 5.5%
Market: 8.0%
63%
Customer
satisfaction
3
HY2018: 62%
HY2019 OUTCOMES

97%
Geothermal
availability
3
HY2018: 95%
1.06
LWAP/GWAP
2
HY2018: 1.07
0.86
HY2019 TRIFR
1
HY2018: 0.86
LEVERAGING CORE STRENGTHS
>Goal of zero-harm
>No high-severity incidents; TRIFR
1
at 0.86 (flat versus 0.86 in HY2018)
>Focus on High Performance Teams
>Office consolidation successfully completed in Q3 FY2019 bringing together 550+
employees in an environment that will leverage High Performance Teams
>98% of respondents to a recent employee survey say they have participated in
High Performance Team development activities
>Enterprise-wide project execution
>Ongoing hydro refurbishment continuing at Whakamaruand Aratiatiahydro
stations with contract signed in January 2019 for $75m Karapiro refurbishment
>Southdown grid-scale battery storage commissioned with discharge of 285MWh
in the first quarter of operation
>Stable earnings despite lower hydro generation
>HY2019 EBITDAF at $302m as generation alignment with high spot prices offset
lower hydro generation versus HY2018
STRATEGIC DRIVERS & HY2019 OUTCOMES
9
1
12-monthly Total Recordable Injury Frequency Rate per 200,000 hours; includes onsite
employees and contractors
2
Average price of purchases (LWAP) over average price of generation (GWAP)
3
Percentage of time plant able to generate after accounting for outages
HY2019 OUTCOMES

ENHANCED LONG-TERM VALUE
>Operational discipline
>Opexflat versus HY2018 at $99m
>Continued review of capital allocation
>Sale of Metrix smart metering business for $270m; simplifying Mercury while
releasing capital and resources
>Investment in Tilt Renewables maintained at 19.99%
>Dundonnell Wind Farm in Victoria approved by Tilt Renewables Board;
Mercury participated in capital raising in February 2019 ($55m)
>Joint takeover offer with Infratilreached 85.3% combined shareholding, but
did not succeed in reaching the 90% compulsory acquisition threshold
>Returns to shareholders
>FY2019 EBITDAF guidance maintained at $515m on 4,150GWh of hydro
generation, subject to any material events, significant one-off expenses or other
unforeseeable circumstances including hydrological conditions
>HY2019 interim ordinary dividend up 3.3% to 6.2cps
>FY2019 ordinary dividend guidance maintained at 15.5cps, which will be the 11
th
consecutive year of ordinary dividend growth
10
HY2019 OUTCOMES
Tilt Renewables
joint takeover
offer achieved
combined holding of
>85%
6.2cps
Interim
Dividend
HY2018: 6.0cps
$270m
Metrix
Divestment gross
proceeds
STRATEGIC DRIVERS & HY2019 OUTCOMES

11
MARKET DYNAMICS

REGULATORY OVERVIEW
12
>Electricity Price Review (EPR) options paper released 20 February 2019
>Stakeholder engagement through March 2019 with final recommendations to Government by mid-2019
>Support phase-out of Low Fixed Charge Tariff which had industry consensus
>Need for sustainable market making arrangements with appropriate coverage and greater upstream fuel transparency
>Retail price regulation, vertical separation and distributor consolidation not supported by panel
>Prompt Payments recommended to shift from incentive to penalty
>Interim Climate Change Committee
>Final report due end of April presented directly to Government due to inter-party delays on Zero Carbon Bill negotiations
>Targeting 100% renewable electricity prohibitively expensive relative to electrification of transport and process heat
>Transmission Pricing
>Electricity Authority will consult further in June 2019 on next stages
>EPR panel support government statement on whether consumers or businesses should benefit from transmission cost
reallocations
>Tax Working Group
>Hydro generation, a non-consumptive water use, looks likely to be excluded in any potential environmental taxation regime
MARKET DYNAMICS

$0
$100
$200
$300
$400
$500
$600
$/MWh
WHOLESALE PRICE(Daily average)
OtahuhuBenmore
Average spot prices
remain >$100/MWh
0
1,000
2,000
3,000
4,000
5,000
Jul-18
Aug-18Sep-18
Oct-18
Nov-18Dec-18
Jan-19
Feb-19
GWh
NATIONAL STORAGE
Range (since 1927)AverageFY2019
13
HVDC outage causes
price spike
Increased inflows
lower price
Thermal fuel
constraints and
dry conditions
elevate spot
prices
Source: NZX Hydro, Pricing Manager (NZX), Mercury
FUEL SCARCITY INCREASES SPOT PRICES
MARKET DYNAMICS

Oct-18
Nov-18
Dec-18
Jan-19
Feb-19 to date
$0
$50
$100
$150
$200
$250
$300
$350
-1500-1000-500050010001500
OTA Spot Price ($/MWh)
Delta to SI Storage Average (GWh)
SI MONTHLY HYDRO STORAGE AND PRICE
Jan 1999 to Jun 2016
FY2017
FY2018
FY2019
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19 to date
$0
$50
$100
$150
$200
$250
$300
$350
-400-2000200400
OTA Spot Price ($/MWh)
Delta to NI Storage Average (GWh)
NI MONTHLY HYDRO STORAGE AND PRICE
Jan 1999 to Jun 2016
FY2017
FY2018
FY2019
Source: NZX Hydro, Pricing Manager (NZX), Mercury
1
For quarters ended 30 September since 1928
2
For quarters ended 31 December since 1928
14
FUEL SCARCITY INCREASES SPOT PRICES
MARKET DYNAMICS

0
100
200
300
400
500
600
Jul
AugSep
Oct
NovDec
Jan
FebMar
Apr
May
Jun
GWh
LAKE TAUPO STORAGE
(since 1 Jul 1999)
MinimumAverage
MCLFY2019
>Mercury exercised prudent hydrological management as storage approached historical minimum
>Mercury’s generation (relative to average) increased in line with spot prices in Q1 FY2019
>Ability to realisegeneration opportunities in Q2 FY2019 tempered by imminent dry period risk in Q3 FY2019
>High generation relative to inflows caused storage to decrease in Q2 FY2019 instead of increasing as normal
Source: NZX Hydro, Mercury
1
Maximum Controllable Level
2
Monthly average since July 1999
3
Monthly average since July 1927
15
1
Period where fuel
management is critical
with low seasonal inflows
and drought risk in the
Waikato catchment in Q3
HY2019JulAugSepOctNovDec
Hydro Generation -
Delta to Average
2
(GWh)
+73+81+101-10-14-6
Waikato Inflows -
Delta to Average
3
(GWh)
+50+90-35-123-78+20
Spot Price -
Otahuhu
($/MWh)
$82$89$90$300$203$114
Managing risk
versus reward
MARKET DYNAMICS
BALANCED APPROACH TO RISK MANAGEMENT AND OPPORTUNITY

16
MARKET THESIS COMING TO FRUITION
ANTICIPATED MARKET OUTCOMES
>Demand growth
>Increased wholesale price volatility
>Futures price increase
>Commercial and Industrial (C&I) upwards price pressure
>Retail churn reduction
>Upward pressure on retail price
FUNDAMENTALS: SUPPLY AND DEMAND BETTER BALANCED
✓
✓
✓
MARKET DYNAMICS
✓
?
Futures and recent C&I contracted prices up
$10/MWh+
Increase in Futures / C&I prices represents a
cost of retailing and a contraction of retail
margins
Retail competition remains fierce despite this
dynamic with aggressive acquisition offers still
prevalent in the market
}
?

17
$60
$70
$80
$90
$100
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
$/MWh
FUTURES PRICE
(2 year average price starting 3 quarters ahead)
Otahuhu
Benmore
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
FY19FY20FY21
$/MWh
31-Dec-1730-Jun-1830-Sep-1831-Dec-1822-Feb-19
OTAHUHU FUTURES PRICE
Source: ASX, Mercury
MARKET DYNAMICS
FUTURES LIFTING IN LINE WITH MARKET THESIS

18
>Demand down 0.5% in HY2019 (-0.6% normalising for temperature) led by a decrease in the irrigation sector
>Industrial demand (excluding Tiwai) continues to decline –possibly lower than usual in Q2 FY2019 due to high spot
prices
>Tiwai Point 4th potline restart contributed to ~0.3% demand growth in HY2019 (~1.0% annualised)
Source: TranspowerSCADA data, Mercury
1
Normalised for temperature
SectorGWhSector%Total %
Urban
1
+80.1%0.0%
Rural
1
+391.2%0.2%
Dairy processing+20.1%0.0%
Irrigation-191(25.8)%(0.9)%
Industrial+420.9%0.2%
Other-31(8.5)%(0.1)%
Total-131(0.6)%
HY2019 NORMALISED DEMAND GROWTH BY SECTOR
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
UrbanRuralDairyTiwaiIndustrial
(excluding
Tiwai)
Irrigation
GWh
DEMAND
HY2015HY2016HY2017
HY2018HY2019
1
1
SEASONAL FACTORS CONTRIBUTE TO LOWER DEMAND
MARKET DYNAMICS

0%
5%
10%
15%
20%
25%
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Annual Churn
NATIONAL CHURN RATE
(12mth rolling)
All Retailers
Mercury
Mercury Brand
}
>Maintained a disciplined approach in pursuing value over volume despite high levels of retail market activity
>Mercury customer numbers decreased by 7,000 in HY2019, while the average Mass Market yieldincreased by 4%
>Customer satisfaction
1
based on Mercury’s survey remained stable going from 62% in HY2018 to 63%
-10,000
-8,000
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
Switches
NATIONAL SWITCHING
Mercury Group
Mercury Brand
Prior 12mth Mercury Switches
Net Switches
0%
10%
20%
30%
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Switches
Withdrawn
2
19
All switches
Trader switches
3
Source: Electricity Authority, EMI –Market share trends and switching breakdown
1
Based on Mercury’s monthly survey of residential customers, 6-monthly rolling
average to 31 December for Mercury brand only
2
Switches which were initiated but not completed (inclusive of saves)
3
A trader switch is where a customer changes retailer without changing house
}
MARKET DYNAMICS
DISCIPLINE IN A HIGHLY COMPETITIVE MARKET

20
FINANCIAL SUMMARY

304
302
29
122
2
26
32
195
4
4
4
4
-
50
100
150
200
250
300
350
400
450
500
Volume
Price
Volume
Price
Volume
Price
Derivative
Settlements
Derivative
Settlements
Other
Other Income
OPEX
EBITDAF ($m)
21
Generation
HY2018HY2019
FPVV PurchasesFPVV Sales
End User
CFDs
Other Energy
Margin
Generation: 206GWh
Price: $48/MWh
Mass Market Price: 3.8%
C&I Price: flat
Total Net Sales: 112GWh
1
LWAP/GWAP: 1%
Energy Margin: $5m
1
Includes FPVV and net CFD sales
2
Includes ancillary services & gas purchases and sales
2
EBITDAF BRIDGE (HY2019 vs. HY2018)
HIGHER PRICES OFFSETTING REDUCTION IN GENERATION VOLUME
FINANCIAL SUMMARY
0

FY2019 GUIDANCE CONFIRMED
22
>FY2019 EBITDAF guidance remains $515m on 4,150GWh of hydro generation, subject to hydrological volatility,
wholesale market conditions and any material adverse events, significant one-off expenses or other unforeseeable
circumstances
>FY2019 ordinary dividend guidance is 15.5cps (up 2.6% on FY2018)
>FY2019 Free Cash Flow will be positively affected by the maturity of historical interest rate hedges (circa $20m net
annual cash flow benefit); partially offset by higher average debt levels
>Interest paid $10m lower in HY2019 vs. pcp
>Net debt up $183m at 31 December 2018 vs. pcpreflecting Tilt acquisition and share buyback in H2 FY2018
>FY2019 stay-in-business capital expenditure guidance is $95m
FINANCIAL SUMMARY

23
>Focus remains on appropriate capital management reflecting Government ownership constraints and growth
aspirations
>HY2019 fully-imputed interim dividend up 3.3% to 6.2 cents per share
>Interim dividend to be paid on 1 April 2019
>Fully year guidance of 15.5cps represents the 11
th
consecutive year of ordinary dividend growth
0
5
10
15
20
25
200820092010201120122013201420152016201720182019
Cents per share
Financial Year
DECLARED DISTRIBUTIONS
InterimFinalSpecialsShare buybackOrdinary guidance
$3.21/share
$2.14/share
FINANCIAL SUMMARY
DIVIDENDS

24
>The average debt maturity profile for committed facilities was 7.0 years at 31 December 2018
>Subject to market conditions, Mercury intends to refinance its Capital Bonds at the next reset date, being the 11th of
July 2019
>The maturing Wholesale Bonds in H2 FY2019 will be repaid using existing facilities
-
50
100
150
200
250
300
350
2019202020212022202320242025202620272045
$m
Financial Year
DEBT MATURITIES AS AT 31 DECEMBER 2018
Domestic Wholesale BondsUS Private PlacementCapital BondDrawn Bank FacilitiesUndrawn Bank Facilities
1
1
Drawn bank facilities includes issued commercial paper
FINANCIAL SUMMARY
DIVERSIFIED FUNDING PROFILE

25
Q&A
QUESTIONS?

CONTRACTS FOR DIFFERENCE
26
6 months ended
31December2018
6 months ended
31 December2017
Net Contracts for Difference (GWh)(1097)(1,193)
End User(586)(642)
Other (511)(551)
Energy Margin contribution($64m)($6m)
1
VAS included on both buy and sell side CFDs
APPENDIX

27
KEY INVESTOR RELATIONS DATES
APPENDIX
JUN
-
18
JUL
-
18
AUG
-
18
SEP
-
18
OCT
-
18
NOV
-
18
DEC
-
18
JAN
-
19
FEB
-
19
MAR
-
19
APR
-
19
MAY
-
19
JUN
-
19
JUL
-
19
AUG
-
19
SEP
-
19
OCT
-
19
NOV
-
19
DEC
-
19
2018 Financial Year End
-
30
th
Q4
-
FY2018 Operational Statistics
-
18
th
Annual Results Announcement
-
21
st
Annual Shareholders Meeting
-
28
th
Q1
-
FY2019 Operational Statistics
-
17
th
UK & Asia Roadshow
Domestic Governance Roadshow
Q2
-
FY2019 Operational Statistics
Interim Results Announcement
-
26
th
Q3
-
FY2019 Operational Statistics
America
Roadshow
(planned)
2019 Financial Year End
-
30
th
Q4
-
FY2019 Operational Statistics
Annual Results Announcement
Annual Shareholders Meeting
Q1
-
FY2020 Operational Statistics
Capital Markets Day
(planned)
UK & Asia Roadshow
(planned)
Domestic Governance Roadshow
James Flexman (Wholesale Markets Manager) presenting at
Mercury’s 2-yearly Capital Markets Day in 2017

28
REFERENCE MATERIALS
MERCURY REFERENCES
Mercury Investor Centrewww.mercury.co.nz/Investor-Centre
Quarterly Operational Updateshttps://www.mercury.co.nz/investors/results-reports/operating-information
FY2018 ResultsPresentation –August 2018https://issuu.com/mercurynz/docs/20180821_mercury_financial_results?e=25554184/63952632
Investor Presentation –November 2018https://issuu.com/mercurynz/docs/mercury_investor_roadshow_presentat?e=25554184/65954670
Governance Presentation–December 2018https://issuu.com/mercurynz/docs/mercury_governance_roadshow_present?e=25554184/66170875
PUBLICATIONS
Mercury Electricity Price Review Submissionhttps://www.mercury.co.nz/news/electricity-price-review-executive-summary
APPENDIX

FOR FURTHER INFORMATION >> TIM THOMPSON | HEAD OF TREASURY & INVESTOR RELATIONS T. +64 275 173 470 E. INVESTOR@MERCURY.CO.NZ

---

2019 INTERIM REPORT

ii // 01
ENERGY
made
WONDERFUL

02 REPORT CARD
04 C HAIR AND CHIEF EXECUTIVE UPDATES
14 F INANCIAL COMMENTARY
18 I NDEPENDENT REVIEW REPORT
19 F INANCIAL STATEMENTS
33 O THER DISCLOSURES
33 S HAREHOLDER INFORMATION
34 DIRECTORY
CONTENTS

02 // 03
6.2CPS
FULLY-IMPUTED INTERIM
DIVIDEND, UP 3.3%, TO BE
PAID ON 1 APRIL 2019.
$302M
EBITDAF NEAR HY2018
RECORD DESPITE LESS
FAVOURABLE HYDROLOGY.
$104M
NPAT NEGATIVELY IMPACTED BY CHANGE
IN FAIR VALUE OF FINANCIAL INSTRUMENTS
(REFLECTING HIGHER FUTURES PRICE).
> FINANCIALS
SWITCH TO MERCURY.
CALL 0800 456 534 OR
GO TO mercury.co.nz/join
REPORT
CARD.
CHAIR AND
CHIEF EXECUTIVE
FINANCIAL
COMMENTARY
REPORT
CARD

63%
OF MERCURY BRAND
CUSTOMERS ARE
‘HIGHLY SATISFIED’.
> DELIVERING CUSTOMER ADVOCACY
7.4%
MERCURY BRAND TRADER
CHURN REMAINS BELOW
MARKET AVERAGE (8.0%).
> LEVERAGING CORE STRENGTHS
97%
GEOTHERMAL AVAILABILITY MAINTAINED,
SUPPORTED BY FOCUSED STATION
EFFICIENCY PROGRAMMES.
> ENHANCED LONG-TERM VALUE
$270M
GROSS PROCEEDS FROM ANNOUNCED SALE OF
METRIX SMART METERING BUSINESS.
TRANSACTION TO COMPLETE ON 1 MARCH 2019.
2,448GWh
HYDRO GENERATION IMPACTED BY
UNFAVOURABLE Q2 INFLOWS INTO
THE WAIKATO CATCHMENT.
$99M
FLAT OPERATING EXPENDITURE
VS HY2018 REFLECTING
OPERATIONAL DISCIPLINE.

04 // 05
RETAIL MARKET CONDITIONS IN NEW
ZEALAND CONTINUE TO BE EXTREMELY
COMPETITIVE. WE MAINTAIN OUR FOCUS ON
OUR THREE CUSTOMER PROMISES – MAKE IT
EASY, REWARD LOYALTY AND INSPIRE.
JOAN WITHERS
CHAIR
WE WILL CONTINUE TO
REINVEST DILIGENTLY IN OUR
CORE BUSINESS AND PURSUE
LONG-TERM GROWTH.
FRASER WHINERAY
CHIEF EXECUTIVE
CHAIR AND
CHIEF EXECUTIVE
FINANCIAL
COMMENTARY
REPORT
CARD

JOAN WITHERS
CHAIR

06 // 07
It is my pleasure to report to you on our
performance for the half year ended
31 December 2018.
The period once again saw strong,
focused execution of the company’s
strategy. Mercury’s people have also
excelled in many areas core to our
business. As an example, our customer
service teams and individuals won seven
honours, including Energy Retailer of the
Year - Inbound Sales, at the annual CRM
Contact Centre Awards in September.
In December, we announced the sale of
Mercury’s Metrix smart metering business
for $270 million, which is expected to
complete in March 2019. This divestment
represents a significant simplification to
our business model and the consideration
paid is testament to the work done over
the last three years in improving Metrix’s
capability, market position and value.
Mercury also partnered with Infratil with
an offer to take-over the remaining
shares in Tilt Renewables. The offer was
ultimately unsuccessful; however,
Mercury has advanced its relationship
with both Infratil and Tilt as a 19.99%
shareholder. Following the capital raise
for the very significant Dundonnell wind
farm being built in Victoria, Australia,
we expect a director nominated by
Mercury to be appointed to the Tilt
Renewables board.
Retail market conditions in New Zealand
continue to be extremely competitive.
We maintain our focus on our three
customer promises – make it easy,
reward loyalty and inspire. Chief
Executive Fraser Whineray, in his update,
will detail progress on core and new
business initiatives, a number of which
were signalled in Mercury’s 2018 Annual
Report.
FINANCIAL RESULTS
Mercury achieved strong and stable
first half earnings (EBITDAF
1
) of $302
million, close to the record $304 million
2

in the prior corresponding period.
Significantly, this was achieved with
246GWh less hydro generation.
Hydro generation of 2,448GWh
compared with the record 2,694GWh in
the prior comparable period. Careful
portfolio management contributed to
the strong EBITDAF as Mercury adapted
to significantly above average spot prices
in the second quarter. This was a
consequence of unplanned disruptions
to the supply of natural gas coinciding
with a period of low South Island
hydro inflows.
Mercury’s retail customers were not
impacted by the elevated spot prices.
Our focus on customer value rather than
simply customer numbers contributed to
reduced customer numbers in HY2019
(down 7,000), but we achieved a 4%
uplift in volume weighted average
price received across the mass
market segment.
Operating expenditure at $99 million was
in line with HY2018. Full year operating
expenditure is expected to be in line with
FY2018 on a like-for-like basis.
Stay-in-business capital expenditure
(SIB CAPEX) of $45 million in HY2019
($59 million HY2018) was directed to
activities including asset management,
IT enhancements and consolidating our
Auckland locations into one primary,
integrated space as signalled in our 2018
Annual Report. These investments
combined with the contribution of our
people to support improvement of the
company’s infrastructure and intangible
assets.
Through the period, high geothermal
reliability was maintained at 97%
(95% HY2018).
WELLBEING
Health, safety and wellbeing will always
be a focus for Mercury. Pleasingly, no
serious harm injuries were sustained
during the period. Our total recordable
injury frequency rate (TRIFR
3
) for the half
year was 0.86, steady with the prior
corresponding period.
A baseline audit of our safety
management systems, the basis of our
CHAIR AND
CHIEF EXECUTIVE
FINANCIAL
COMMENTARY
REPORT
CARD
CHAIR’S
UPDATE.

safety cases, was completed during this
period by independent experts and
all recommended improvements due in
the period have been actioned.
Mercury continues to offer subsidised
annual health (including mental health
and wellbeing) checks for its people.
INTERIM DIVIDEND
Your Board remains focused on a
transparent approach to capital
management in the context of our
balance sheet, ownership structure,
earnings outlook and growth orientation.
The Board has declared an interim fully
imputed dividend of 6.2 cents per share
to our 85,000 owners including the
Crown. This represents an increase
of 3.3% on the FY2018 interim dividend.
The dividend will be paid on 1 April 2019.
GUIDANCE
Mercury’s FY2019 EBITDAF guidance is
reaffirmed at $515 million subject to any
material events, significant one-off
expenses or other unforeseeable
circumstances including hydrological
conditions. FY2019 EBITDAF guidance
at the time of this report assumes
4,150GWh of hydro production, 150GWh
above average, though 50GWh down on
initial guidance due to dry weather in the
Waikato catchment in Q2-FY2019. The
guidance includes the forecast reduction
to EBITDAF of $10 million from the sale
of Metrix (settlement assumed 1 March
2019; annualised impact $28 million).
FY2019 stay-in-business capital
expenditure guidance remains at
$95 million.
Ordinary FY2019 dividend guidance
remains at 15.5 cents per share, fully
imputed, representing a 2.6% increase
on FY2018 and the 11th year of
progressive ordinary dividend growth.
BOARD COMPOSITION
Mercury’s Board is unchanged from last
year. Prue Flacks, Mike Taitoko and Keith
Smith, who retired by rotation, were
re-elected as directors by owners at
our 2018 ASM. At that meeting,
I reaffirmed that this will be my last
year as Chair of Mercury and the
process to determine my successor
is well underway.
WE CONTINUE TO PAY CLOSE ATTENTION TO
ENSURING WE HAVE THE RIGHT MIX OF
SKILLS, APPROPRIATE DIVERSITY, BOARD
ROTATION AND SUCCESSION PLANNING.
1 EBITDAF = earnings, before interest expenses,
taxes, depreciation, amortisation and the change
in fair value of financial instruments.
2 Adjusted from HY2018 reported EBITDAF of
$301 million to align with International Financial
Reporting Standards (IFRS) change.
3 TRIFR is the rate of recordable injuries that occur
per 200,000 hours worked. Recordable injuries
include fatalities, lost time injuries, substitute
work, and other injuries requiring treatment by
a medical professional.

08 // 09
CHAIR AND
CHIEF EXECUTIVE
FINANCIAL
COMMENTARY
REPORT
CARD
We continue to pay close attention to
ensuring we have the right mix of skills,
appropriate diversity, board rotation and
succession planning. The governance
section in our 2018 Annual Report
provides a comprehensive breakdown
of the skills and experience of our
eight directors.
SKILLS DEVELOPMENT/
GOVERNANCE TRENDS
We are fortunate that we have been able
to attract top governance talent to our
Board over the past nine years.
The experience of our Board in all areas
of governance means we have significant
insight into key issues and challenges
facing boards of directors, which
include emerging trends in executive
remuneration, monitoring and managing
health, safety and wellbeing, mitigation
of risk and regulatory imperatives.
Continuing your Board’s development,
we are visiting Australia in May as part
of our ongoing engagement with
that market given our investment in
Tilt Renewables.
REPORTING
Mercury’s 2018 Annual Report,
supported by our online sharing of
information, continued our progress in
telling Mercury’s story through the
framework of the Global Reporting
Initiative (GRI) and Integrated Reporting
<IR> standards.
We will be transitioning to the new NZX
Listing Rules (NZXLR) before the end of
this financial year.
During the period, Mercury completed its
return as part of the Carbon Disclosure
Project. Mercury was the only generator/
retailer to receive a score. Our rating
signals awareness of climate change
impacts and that progress is being
made on assessing the long-term
climate change risks facing our business.
We look forward to continuing our active
participation in those things that make a
meaningful difference to New Zealand’s
climate change commitments.
LEADERSHIP
Led by Fraser, Mercury continues to play
a valuable role in guiding New Zealand
towards a future where greater
energy freedom benefits customers,
communities and our country.
In October, Fraser was invited to join
the Prime Minister’s Business Advisory
Council, which seeks to include the
voice of businesses in plans to build a
productive, sustainable and inclusive
economy that improves the wellbeing
of New Zealanders.
Fraser has also helped establish
The Aotearoa Circle along with
Vicky Robertson (Secretary for the
Environment), Sir Rob Fenwick and
Sir Jonathon Porritt. The purpose of this
charitable trust is to bring together
senior leaders from across the public
and private sectors to establish a
collaboratively and rigorously derived set
of priorities across six essential pillars of
natural capital, and to see those more
widely adopted through policy settings
and public and private funding.
I was personally delighted that Fraser,
with his broad strategic and systems
thinking and visionary leadership
capabilities, was a finalist in the CEO of
the Year category at the 2018 Deloitte
Top 200 awards in November.
CONCLUSION
On behalf of the Board, I congratulate
Fraser and his management team for
continuing to execute Mercury’s
demanding strategy so well, and role
modelling the high-performance team
framework that is being embedded
throughout the business.
I also acknowledge the contribution of
Mercury’s Board and everyone at
Mercury for their efforts which underpin
these results and the ongoing
improvements to the company’s
long-term performance.
I look forward to a second half of the
year that builds on the significant
momentum evident in the business.
JOAN WITHERS, CHAIR

Tēnā koutou.
The last calendar year, of which this
report covers the six months to
December 2018, saw tremendous
advances in executing Mercury’s
strategy. Like the preceding years, the
long-term value of Mercury continues to
be enhanced. We achieve this through
lifting the positive recognition of
New Zealand’s renewable energy
advantage, high quality reinvestment
throughout all aspects of our core
business, disciplined investment in
new activities and a very holistic and
citizen-centric view of innovation.
Highlights from the 2018 calendar year
included the purchase of a 19.99% stake
in Tilt Renewables Limited; a $50 million
share buy-back; the commissioning of
a grid-tied 1MW/2MWh Tesla battery
for testing at our Solar R&D centre in
Penrose; and the announcement of
the sale of the Metrix smart metering
business for $270 million.
We will continue to reinvest diligently
in our core business and pursue
long-term growth.
EARNINGS AND
WHOLESALE MARKET
CONDITIONS
Our half year earnings of $302 million
EBITDAF, were just short of the record
HY2018 earnings ($304
1
million), despite
246GWh less hydro generation.
The sector experienced significant spot
market volatility driven by an unusual
alignment of factors, including multiple
unplanned disruptions in New Zealand’s
natural gas sector and low hydro inflows
across the country, including in the
Taupo catchment.
For context, however, the spot market still
did not reach the Electricity Authority’s
(EA) stress test scenario of $250/MWh
for a quarter. The quarterly stress test is
something that every electricity market
participant’s board of directors is across,
by design.
Importantly, as our Chair noted, none
of Mercury’s mass market customers
were impacted by those spot market
conditions.
There are opportunities for improvement,
of course. We believe the electricity
market would benefit from a much
stronger disclosure regime from thermal
generators concerning their fuel position
and upstream gas and coal supplies,
which would make it equivalent to the
ability to monitor hydro positions (lake
levels) which are already available in
real time. We were pleased to see
improvements in this area raised in
the recent Electricity Price Review (EPR)
options paper.
Notwithstanding this, and other
opportunities for ongoing improvement
which are known and part of active work
programs, the sector was flexible and
adapted dynamically to real stresses to
deliver reliable electricity.
We were disappointed with the
withdrawal from voluntary ASX market-
making by other market participants and
look forward to the EA promptly working
through equitable improvements to this
very important market construct. This is
in part related to the gas disclosure
issues, mentioned above, which need to
be resolved more promptly than is being
indicated by the Gas Industry Council.
Market-making by four of the generator/
retailers is voluntary and can be very
expensive to our owners. Market-making
is an important market construct that
has grown in its impact over the last five
years. It has increased liquidity, narrowed
margins, enabled competition in both
generation and retailing and provides a
price signal for huge numbers of sales
contracts and derivatives. As such, it
should either be a cost borne by the
entire market or every market participant
should be required to provide
proportionate market-making, either
CHIEF
EXECUTIVE’S
UPDATE.
1 Adjusted from HY2018 reported EBITDAF of
$301 million to align with International Financial
Reporting Standards (IFRS) change.

10 // 11
directly or through an agent. While the
EPR panel considers that market-making
should be made mandatory for large
generator/retailers the regulator has
to date not favoured this approach,
seeking instead to consider more
sustainable arrangements.
Lastly, it is important to understand
that the owners of the four voluntary
market-makers should not bear the cost
of this activity disproportionately, or be
expected to provide liquidity to offshore
or domestic hedge funds.
DEMAND
National electricity consumption was
marginally weaker for the half year by
0.5%. We anticipate full year demand
holding steady or increasing, supported
by a seasonal uplift in irrigation led by
a hot dry January, as well as a full six-
month period of operation of
New Zealand Aluminium Smelter’s Tiwai
Point fourth aluminium potline. The
potline was reactivated in December and
it adds more than 1% to national demand.
ELECTRICITY PRICE
REVIEW
We have welcomed engaging in the
Government’s Electricity Price Review
and are continuing to reflect on the EPR
options paper, released last week. The
subsequent final report is due later this
financial year. This review provides an
opportunity for all political parties to
acknowledge that New Zealand’s
electricity system is an international
competitive advantage, as confirmed by
the International Energy Agency and
numerous other independent
publications. This must be the starting
point, before considering ways for
continuous improvement in policy
settings. Electricity is an easy political
target, largely because it is unconsciously
consumed and typically paid for after
consumption on a monthly basis. Yet the
daily cost as a proportion of household
expenditure has declined to less than
3%, at approximately $6.
Governments must tread carefully on
electricity matters, particularly policies
affecting the complexities of generation
development, generation operation and
re-investment and the wholesale market,
to avoid the tremendous unintended
consequences now plaguing Australia,
the United Kingdom and Germany.
We welcome the recognition in the EPR
options paper that there are many
factors outside of the electricity sector’s
control that contribute to vulnerability
and that there are already many
initiatives underway to address this.
Many Mercury customers, and agencies
working with financially vulnerable
households, are strong advocates for
the support offered through pre-pay
platforms, such as Mercury’s GLOBUG,
that help avoid the accumulation of
debt. Mercury continues to actively
promote these benefits.
We are pleased that the EPR panel
recommends the phasing out of the low
fixed-charge tariff (LFCT) regime, itself a
classic example of poor policy coming
from good intent. All political parties
supported the removal of the LFCT prior
to the 2017 election, the vast majority
of the sector supports its removal and
many reports say it needs to go given
its regressive nature.
We will continue to encourage the
EPR panel to recommend a much
stronger voice to the EA to force network
companies into promptly setting price
signals reflective of costs. The current
situation is one of excessively high
variable (as opposed to fixed) charges
to retailers. This causes a much larger
summer/winter variation in electricity
costs to consumers than is desirable
or necessary.
The long-standing ring-fencing
arrangements for network companies
also need updating to cover new
technologies. As a real example, it is
indefensible that many network
companies think all consumers in their
monopoly area should pay for public
electric car chargers as part of a
regulated asset base. We support
proposals in the EPR options paper to
give greater powers to the EA to regulate
in this area if required.
Prompt-payment discounts (PPDs) for
homeowners have been signalled by the
EPR options paper as a construct to be
disallowed, in favour of late payment fees.
We retain our view that consumers value
choice and we believe most would prefer
a carrot rather than a stick in relation to
payment timing. Removal of PPDs may
result in consumers accumulating more
post-pay debt. We outlined that view in
our submission, and will discuss this
further with the EPR panel as the review
moves into its final stages.
30,000
CUSTOMER DOWNLOADS
OF MERCURY GO APP
2,500
PEOPLE ENJOYED EVIE
VIRTUAL REALITY
EXPERIENCE
79.97GWh
RECORD MONTHLY
GENERATION AT KAWERAU
GEOTHERMAL STATION
CHAIR AND
CHIEF EXECUTIVE
FINANCIAL
COMMENTARY
REPORT
CARD

To ensure there are no unintended
consequences from restricting ways that
electricity retailers look to incentivise
payments, and ensure that all
consumers, not just some, have the
benefit of competition, all retailers
should be required to offer products to
suit the full range of credit and payment
arrangements or pay another retailer to
provide that service for them. That would
be fair to avoid some retailers excluding
more vulnerable households by design.
ICCC AND EXPECTATIONS
Another policy report due out this year
is from the Interim Climate Change
Committee. This Committee has been
extremely well constituted and has
engaged broadly. Though they were
initially asked the wrong question, “how
to reach 100% renewable electricity by
2035”, they are taking a much more
integrated view on renewability, non-
electricity energy (e.g. heating and liquid
transport fuels) and pricing (through
directly engaging with the EPR panel).
In short, the ICCC recognises that
renewable electricity in New Zealand is
no longer the issue. Electricity is the
solution to displace liquid and solid fossil
fuels. Electricity can reduce costs to the
economy and consumers, increase
energy sovereignty (how much energy
we make ourselves) and reduce
carbon emissions.
All political parties should abandon
renewable electricity targets in
New Zealand and instead focus on
New Zealand’s low-carbon energy policy
if they are genuinely interested in
achieving those outcomes.
With commentary on climate change
and emission reduction policies reaching
unprecedented levels globally, there is a
dynamic which drives governments,
NGOs and businesses to be “seen to be
doing something”. This leads to activities
which sound logical but could well be
irrelevant at best and in many instances
likely drive a perverse outcome. This is
greenwashing. And it is the fastest way
to a hot planet.
Saying that “every bit helps” can be an
excuse for mis-allocating resources.
Leadership should be about helping the
population understand what will make
a real difference beyond the endless
soundbites and silver bullets, so that
New Zealanders can, indeed, be a
meaningful part of the solution.
An example is the attention currently
being given to hydrogen as a fuel source.
We think hydrogen could be a great
export but will have only limited and
highly niche applications domestically.
Mercury could selfishly say it would love
a domestic hydrogen economy, because
it takes a lot of electricity to produce
hydrogen in fuel-ready form (more than
three times as much as simply using the
electricity directly). But why would you
direct New Zealand’s electricity, which is
already generated from predominantly
renewable sources, into a less efficient
fuel source? For export, maybe, if you
could transport and price the fuel
appropriately to take advantage of
New Zealand’s renewable electricity
advantage over countries such as Japan.
To advance the hydrogen argument,
interest groups position electricity sector
complexities as ‘problems’ rather than
the opportunities that they are. For
example, hydrogen cannot beat building
new wind or geothermal renewable
generation on pricing. They are worlds
apart in terms of cost. The grid network
is already in place for electricity and it is
efficient, versus manufacturing, storing
and transporting hydrogen as a
supposed solution for a regional energy
problem that doesn’t exist here.
In terms of future growth, New Zealand
has enough commercially feasible
renewable electricity generation for
every car, truck, ferry, train, domestic
plane, bike and scooter to be electric.
And then some.
Mercury continues to promote
New Zealand’s competitive advantage
in low-cost renewable energy to
Government and regulatory decision
makers, as well as to consumers. The
electricity opportunity in an absolute
sense, and also relative to the competing
$75M
ANNOUNCED
MODERNISATION PROJECT
FOR KARAPIRO HYDRO
STATION
0.86
TRIFR STEADY WITH
NO HIGH-SEVERITY
INCIDENTS
550+
PEOPLE MOVING INTO
CONSOLIDATED
AUCKLAND
PREMISES

12 // 13
opportunities, is blindingly obvious. The
open door is right in front of the country
and available to walk through. What,
apart from courage, is preventing clear
multi-partisan long-term policies being
established which are in New Zealand’s,
and her citizens’, interests?
OUR RETAIL CUSTOMERS
The retail electricity sector is intensely
competitive and Mercury’s strategy is
unchanged since refocusing our activity
at the time of our rebrand in July 2016.
We have three customer promises: make
it easy, reward loyalty and inspire.
Advancing the ease with which
customers can interact with us,
more than 30,000 customers have
downloaded the new Mercury Go app
for smart devices since its full launch
in October. The app is designed to be
both functional and compelling,
distinguishing it from other energy
company offerings.
Our e-mobility programme has grown,
with the disruptive innovation “Mercury
Drive” (evdrive.co.nz) testing a way to
inspire motorists with an EV experience
without the capital outlay. While still in
a test phase, Mercury Drive customers
have driven the equivalent of the length
of New Zealand 68 times (more than
100,000km) since the service was
launched last August. This has displaced
approximately 20 tonnes of carbon
emissions. The demand for an expansion
of this pilot continues to be high.
Mercury Drive builds on the profile
gained for Mercury through e.bike ride
days, e.bike and e.scooter discounts
and new versions of the ‘Evie’ electric
vehicle campaign which continues to
sustain strong engagement with the
Mercury brand.
Evie, our electrified classic car
resplendent in ‘Mercury yellow’, has been
so popular we have developed a virtual
reality (VR) experience that allows the
public to enjoy a virtual journey. So far
more than 2500 people have enjoyed
the VR experience at special events and
in shopping malls around the country.
The trader churn rate for the Mercury
brand – the percentage of customers
moving between retailers while at the
same home (rather than when shifting
house) – continues to be lower than
the market average, but was up (to
7.4% from 5.5%). Contributing to this
was the shift of Tiny Mighty Power
brand customers, traditionally a higher
churning group, into the Mercury
brand to deliver more consistent
experience and access to rewards such
as Airpoints
TM
.
NEW ZEALAND HAS ENOUGH COMMERCIALLY
FEASIBLE RENEWABLE ELECTRICITY
GENERATION FOR EVERY CAR, TRUCK, FERRY,
TRAIN, DOMESTIC PLANE, BIKE AND SCOOTER
TO BE ELECTRIC. AND THEN SOME.
CHAIR AND
CHIEF EXECUTIVE
FINANCIAL
COMMENTARY
REPORT
CARD

SECURING VALUE OVER
THE LONG TERM
Mercury progressed refurbishment work
at both Whakamaru and Aratiatia hydro
stations during the period. We also
recently announced further capital
expenditure of $75 million to modernise
our Karapiro power station. The Karapiro
project is a milestone signalling that
we have passed the half-way investment
decision point (five of nine stations)
in our programme across the
Waikato hydro system. This reflects
our commitment to judicious asset
management that secures the legacy
and enhanced long-term contribution of
infrastructure that is as important to the
country as it is to Mercury.
Concurrently, our geothermal teams have
been actively managing our geothermal
assets to operate at a creditable 97%
of capacity. We celebrated the 10th
anniversary of the Kawerau geothermal
station during the half year, and, as an
outcome of focused work from the team
there, the station recorded its highest
ever monthly generation of 79.97GWh
in October.
OUR PEOPLE
None of the activity noted within this
update would be possible without the
mahi (work) and dedication of our
people, aligned to our kaupapa (purpose
and mission). To support that, and to
fully live the vision developed as part of
our rebrand, we have been progressing
towards the consolidation of our various
Auckland office locations, representing
more than 60% of our employees, into
one new building in Newmarket. This has
been a significant project spanning four
years, with the objective of bringing
people together in an environment that
reflects, and contributes to us achieving,
our aspiration to be New Zealand’s
leading energy brand and to deliver the
country’s Energy Freedom.
The extensive investment in technology
and training behind our high performance
team framework has resulted in 98% of
respondents to a recent employee survey
saying they had participated in high
performance team (HPT) activities.
I am particularly pleased to receive
feedback from HPT activities, where our
people note outcomes such as “a greater
willingness to constructively challenge
for the greater good of the customers,
the team and the business”.
CLOSING REMARKS
With our people focused and enjoying
their contribution; with our brand now
well established and resonating with
customer and stakeholders; and with our
mission and strategy clear, we are in a
strong position heading into the second
half of the financial year.
I look forward to the opportunities ahead
to advance our growth, and to reporting
back to you on our progress at the time
of our full year results in August 2019.
Together we are Mercury.
Energy made wonderful.
Nga mihi nui ki a koutou katoa.
FRASER WHINERAY, CHIEF EXECUTIVE

14 // 15
Mercury’s financial performance for the six months to 31 December 2018 is in line
with last year’s record interim result, with EBITDAF of $302 million down just
$2 million on last year’s result. Performance remains strong across the entire
business, underpinned by the combination of record spot prices, rising customer
yields, an ongoing and disciplined focus on managing operating costs and strong
execution of the company’s planned work programme.
FINANCIAL
COMMENTARY.
ENERGY MARGIN
1
Our energy margin of $380 million was $5 million lower than
HY2018 largely due to lower hydro generation, which while
above average for the period was 246GWh lower than last year.
This was partially offset by a 40GWh increase in geothermal
generation and was supported by the company capturing value
during a period of high and volatile spot prices due to its flexible
generation portfolio. Average spot prices in the central North
Island lifted by almost $50/MWh to $138/MWh for HY2019
compared to last year.
The ratio of average electricity purchase prices to average
generation prices for the interim period (LWAP/GWAP, where a
lower ratio is favourable) improved relative to last year from 1.07
to 1.06. This reflects the value of generation flexibility arising
1 Energy Margin is a non-GAAP measure and is defined as sales less
lines charges, energy costs and other direct costs of sales, including
metering (see Note 4 of the Financial Statements). Energy Margin
provides a measure that, unlike total revenue, accounts for the variability
of the wholesale spot price on our generation revenue and the broadly
offsetting impact of wholesale prices on the purchase cost of our
customers’ electricity.
2 HY18 figures have been restated to reflect transition to new international
financial reporting standards (see note 1 of the financial statements).
HY15 to HY17 comparatives have not been restated.
from higher spot prices and locational spot price differences
across the country.
Our average energy price to all our customers was up 2.8%
to almost $107/MWh relative to the same time last year.
This reflects an increase in mass market yields, including
the costs associated with loyalty activity. Sales volumes to
commercial and industrial customers during the period dropped
3% to 1,202GWh with pricing flat at $78/MWh on average.
Mercury’s continued focus on growing customer loyalty by
rewarding, inspiring and making it easy for our customers saw
12-month churn rise to 20.4% across all brands, around 1%
better than average market churn. The company’s focus on
higher quality customers rather than market share contributed
to customer numbers decreasing by 7,000 to 381,000 during
the period.
> FIGURE 1: ENERGY MARGIN
2
> FIGURE 2: OPERATING COSTS
2
CHAIR AND
CHIEF EXECUTIVE
FINANCIAL
COMMENTARY
REPORT
CARD
$M
FINANCIAL YEAR
HY15
HY16HY17HY18HY19
400
300
200
100
350
250
150
50
0
$M
FINANCIAL YEAR
HY15
HY16HY17HY18HY19
120
80
40
100
60
20
0

OTHER INCOME
Other income includes revenue earned by our smart metering
business, operation and maintenance services provided to third
parties and revenue from our solar business, along with other
one-off or irregular occurring items. Our third-party revenue
from Metrix continued to increase during the period as smart
meter deployment and services continued to grow.
OPERATING COSTS
Operating costs represent our indirect costs of sales, including
salaries and wages, maintenance costs, and all other company
overheads and were in line with HY2018 at $99 million for
the period.
OPERATING EARNINGS (EBITDAF
3
)
EBITDAF for the period was down $2 million versus HY2018,
primarily due to the movements in energy margin, where
revenues earned across the portfolio from elevated spot price
levels and volatility during the reporting period could not
compensate for lower overall electricity generation relative
to HY2018.
PROFIT FOR THE PERIOD
Profit for the period decreased by $27 million to $104 million due
to an increase in depreciation and amortisation charges from
IT investments in the prior year and a large negative fair value
movement in the company’s non-hedge accounted electricity
derivative portfolio as forward wholesale market prices have risen.
These impacts were partially offset by lower tax expense and
lower interest costs ($39 million versus $47 million) as expensive
interest rate swaps matured.
3 EBITDAF is reported in the income statement of the Interim Financial
Statements and is a measure that allows comparison across the sector.
EBITDAF is defined as earnings before net interest expense, income tax,
depreciation, amortisation, change in fair value of financial instruments,
impairments, and equity accounted earnings.
UNDERLYING EARNINGS AFTER TAX
4
Underlying Earnings after tax of $114 million was the same as
last year’s result, reflecting the similar EBITDAF performance
between periods.
NET CASH FLOWS PROVIDED BY
OPERATING ACTIVITIES
Net cash provided by operating activities is made up of the cash
flows from the sale of electricity and metering services, along
with the direct and indirect costs associated with their sale and
the cash costs of interest and taxes. Net cash flows from
operating activities decreased by $46 million on HY2018 to
$171 million. A key contributor to this reduction is a $40 million
increase in receivables (due to higher ASX margin balances),
more than offsetting the reduction in cash interest and
tax payments.
BALANCE SHEET
Stay-in-business capital expenditure (SIB capex) represents
the capital expenditure we incur to maintain our assets in good
working order. SIB capex in HY2019 was $45 million, down
$14 million compared to the prior period. SIB capex was focused
on the continuation of major refurbishment works at the
Whakamaru and Aratiatia hydro stations and the fit-out of
the new Auckland office. We expect full year SIB capex to be
$95 million.
4 Underlying earnings after tax is reported in Note 3 of the Interim Financial
Statements and is a non-GAAP measure representing net profit for the year
adjusted for one-off and/or infrequently occurring events exceeding $10 million
of net profit before tax, impairments, and any changes in the fair value of
derivative financial instruments. In contrast to net profit, the exclusion of these
items enables a comparison of the company’s underlying performance between
financial periods. The company has reported Underlying Earnings on this basis
for the last eight years.
> FIGURE 3: EBITDAF
2
> FIGURE 4: UNDERLYING EARNINGS AFTER TAX
2
$M
FINANCIAL YEAR
HY15
HY16HY17HY18HY19
350
300
200
100
250
150
50
0
$M
FINANCIAL YEAR
HY15
HY16HY17HY18HY19
120
100
60
20
80
40
0

16 // 17
CAPITAL STRUCTURE AND DIVIDENDS
Our dividend policy gives due consideration to our working
capital requirements, medium term investment programme,
a sustainable capital structure and recognises a targeted
long-term Standard & Poor’s credit rating of BBB+. Mercury
continues to explore value enhancing opportunities which will
require additional borrowings to fund this growth.
Net debt increased to $1,268 million at 31 December 2018 from
$1,085 million at 31 December 2017. This increase reflects the
company’s acquisition of 19.99% of Tilt Renewables and the
$50 million buyback completed in H2 FY2018. The average cost
of debt of 5.8% dropped from 8.6% in the previous period. The
reduction in interest rate is the result of the maturity of
expensive interest rate hedges put in place in 2008.
In line with our dividend policy to target a pay-out ratio of 70%
to 85% of Free Cash Flow on average over time, a fully-imputed
6.2 cents per share interim dividend has been declared,
payable on 1 April 2019. Full year ordinary dividend guidance of
15.5 cents per share remains unchanged, representing a 2.6%
increase on FY2018.
> FIGURE 5: CAPITAL EXPENDITURE> FIGURE 6: INTERIM DECLARED DIVIDENDS
CHAIR AND
CHIEF EXECUTIVE
FINANCIAL
COMMENTARY
REPORT
CARD
$M
FINANCIAL YEAR
HY15
HY16HY17HY18HY19
60
50
30
10
40
20
0
CENTS PER SHARE
FINANCIAL YEAR
HY15
HY16HY17HY18HY19
8
7
5
2
1
3
6
4
0

FINANCIAL
STATEMENTS.

Review Report to the Shareholders of Mercury NZ Limited
We have reviewed the consolidated interim financial statements of Mercury NZ Limited (“the Company”) and its subsidiaries
and joint ventures (“the Group”) on pages 19 to 32, which comprise the consolidated balance sheet of the Group as at
31 December 2018, and the consolidated income statement, consolidated statement of comprehensive income, consolidated
statement of changes in equity and consolidated cash flow statement of the Group for the six months ended on that date,
and a summary of significant accounting policies and other explanatory information.
This report is made solely to the Company’s shareholders, as a body. Our review has been undertaken so that we might state
to the Company’s shareholders those matters we are required to state to them in a review 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 Company and the
Company’s shareholders as a body, for our review work, for this report, or for our findings.
Directors’ Responsibilities
The directors are responsible for the preparation and fair presentation of consolidated interim financial statements which
comply with New Zealand Equivalent to International Accounting Standard 34
Interim Financial Reporting and for such
internal control as the directors determine is necessary to enable the preparation and fair presentation of the consolidated
interim financial statements that are free from material misstatement, whether due to fraud or error.
Reviewer’s Responsibilities
Our responsibility is to express a conclusion on the consolidated interim financial statements based on our review. We conducted
our review in accordance with New Zealand Standard on Review Engagements 2410
Review of Financial Statements Performed
by the Independent Auditor of the Entity
(NZ SRE 2410). NZ SRE 2410 requires us to conclude whether anything has come to
our attention that causes us to believe that the consolidated interim financial statements, taken as a whole, are not prepared
in all material respects, in accordance with New Zealand Equivalents to International Accounting Standard 34 Interim Financial
Reporting. As the auditor of Mercury NZ Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant
to the audit of the annual financial statements.
Basis of Statement
A review of consolidated interim financial statements in accordance with NZ SRE 2410 is a limited assurance engagement.
The auditor performs procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with
International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on the consolidated
interim financial statements.
In addition to this review and the audit of the annual financial statements of the Group, we are engaged to perform other
engagements in the area of payroll advisory services and tax compliance which are compatible with the independence
requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board.
In addition, partners and staff of Ernst & Young may 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.
Conclusion
Based on our review nothing has come to our attention that causes us to believe that the accompanying financial statements,
set out on pages 19 to 32, do not present fairly, in all material respects, the financial position of the Group as at 31 December
2018 and its financial performance and cash flows for the six months ended on that date in accordance with New Zealand
Equivalent to International Accounting Standard 34 Interim Financial Reporting.
Our review was completed on 26 February 2019 and our findings are expressed as at that date.
Ernst & Young
Auckland, New Zealand
INDEPENDENT REVIEW REPORT
18 // 19

CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
Note
Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
Total revenue41,079 955 1,798
Total expenses4(777)(651)(1,232)
EBITDAF
1
302 304 566
Depreciation and amortisation(104)(98)(201)
Change in the fair value of financial instruments(14)23 48
Earnings of associates and joint ventures– 1 2
Net interest expense4(39)(47)(91)
Profit before tax145 183 324
Tax expense(41)(52)(91)
Profit for the period attributable to owners of the parent104 131 233
Basic and diluted earnings per share (cents) 7. 6 9.6 1 7. 0
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
Profit for the period104 131 233
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Movement in asset revaluation reserve – – 55
Movement in cash flow hedge reserve transferred to balance sheet – – 5
Share of movements in associates’ and joint ventures’ reserves–1 14
Tax effect – – (17)
Items that may be reclassified subsequently to profit or loss
Movement in cash flow hedge reserve (64)11 33
Movement in other reserves – – (64)
Tax effect 18 (3)(9)
Other comprehensive (loss)/income for the period, net of taxation(46)9 17
Total comprehensive income for the period attributable to owners of the parent58 140 250
1 EBITDAF: Earnings before net interest expense, income tax, depreciation, amortisation, change in fair value of financial instruments, impairments and equity
accounted earnings
The accompanying notes form an integral part of these financial statements.

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2018
Note
Unaudited
31 Dec 2018
$M
Restated
Unaudited
31 Dec 2017
$M
Restated
Audited
30 Jun 2018
$M
SHAREHOLDERS’ EQUITY
Issued capital 378378378
Treasury shares(101)(51)(101)
Reserves2,9392,9293,005
Total shareholders’ equity3,2163,2563,282
ASSETS
Current assets
Cash and cash equivalents78475
Receivables243202226
Contract assets343
Inventories273735
Derivative financial instruments6812431
Total current assets432314300
Non-current assets
Property, plant and equipment75,2675,3585,370
Intangible assets81101101
Investments 142–130
Investment and advances to associates8867688
Advances to joint operations777
Receivables31–
Derivative financial instruments6127106110
Total non-current assets5,7135,6495,806
Held-for-sale assets1281––
Total assets6,2265,9636,106
LIABILITIES
Current liabilities
Payables and accruals184187198
Provisions–4–
Borrowings9288135350
Derivative financial instruments6904724
Taxation payable192217
Total current liabilities581395589
Non-current liabilities
Payables and accruals1036
Provisions525251
Derivative financial instruments615010677
Borrowings91,1181,042970
Deferred tax1,0971,1091,131
Total non-current liabilities2,4272,3122,235
Held-for-sale liabilities122––
Total liabilities3,0102,7072,824
Net assets3,2163,2563,282
For and on behalf of the Board of Directors who authorised the issue of the Financial Statements on 26 February 2019.
Joan Withers Keith Smith
Chair Director
26 February 2019 26 February 2019
The accompanying notes form an integral part of these financial statements.
20 // 21

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
Issued
capital
$M
Retained
earnings
$M
Asset
revaluation
reserve
$M
Cash flow
hedge
reserve
$M
Other
reserves
$M
Total
equity
$M
Balance as at 1 July 20173781842,849(53)(50)3,308
Adjustment on adoption of new IFRS–1–(3)–(2)
Restated balance as at 1 July 20173781852,849(56)(50)3,306
Movement in cash flow hedge reserve, net of taxation–––8–8
Share of movements in associates’ and joint ventures’ reserves–––1–1
Other comprehensive income–––9–9
Net profit for the period–131–––131
Total comprehensive income for the period–131–9–140
Dividend–(190)–––(190)
Restated balance as at 31 December 20173781262,849(47)(50)3,256
Restated balance as at 1 January 20183781262,849(47)(50)3,256
Adjustment on adoption of new IFRS–(1)–––(1)
Restated balance as at 1 January 20183781252,849(47)(50)3,255
Movement in asset revaluation reserve, net of taxation––40––40
Movement in cash flow hedge reserve, net of taxation–––19–19
Movements in other reserves––––(14)(14)
Share of movements in associates’ and joint ventures’ reserves
––121–13
Acquisition of treasury shares––––(50)(50)
Other comprehensive income/(loss)––5220(64)8
Net profit for the period–102–––102
Total comprehensive income/(loss) for the period–1025220(64)110
Dividend–(83)–––(83)
Restated balance as at 30 June 20183781442,901(27)(114)3,282
Balance as at 1 July 20183781442,901(27)(114)3,282
Movement in cash flow hedge reserve, net of taxation–––(46)–(46)
Share of movements in associates’ and joint ventures’ reserves––8(8)––
Recycling of fair value losses in available for sale reserves–(15)––15–
Other comprehensive income/(loss)–(15)8(54)15(46)
Net profit for the period–104–––104
Total comprehensive income/(loss) for the period–898(54)1558
Dividend–(124)–––(124)
Balance as at 31 December 20183781092,909(81)(99)3,216
The accompanying notes form an integral part of these financial statements.

CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers1,0579931,800
Payments to suppliers and employees(796)(674)(1,232)
Interest received112
Interest paid(36)(46)(92)
Taxes paid(55)(57)(102)
Net cash provided by operating activities171217376
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment(39)(34)(94)
Acquisition of intangibles(14)(23)(33)
Acquisition of investment––(144)
Disposal of land and associated real property –15
Distributions received from and advances repaid to associates and joint ventures336
Net cash used in investing activities(50)(53)(260)
CASH FLOWS FROM FINANCING ACTIVITIES
Acquisition of treasury shares––(50)
Proceeds from loans6946262
Repayment of loans––(75)
Receipt/(payment) of lease incentives/(liabilities)7(3)(5)
Dividends paid(124)(190)(273)
Net cash used in financing activities(48)(147)(141)
Net increase (decrease) in cash and cash equivalents held7317(25)
Cash and cash equivalents at the beginning of the period53030
Cash and cash equivalents at the end of the period78475
Cash balance comprises:
Cash balance at the end of the period78475
The accompanying notes form an integral part of these financial statements.
22 // 23

NOTE 1. ACCOUNTING POLICIES
1) Reporting entity
Mercury NZ Limited (the “Company”) is incorporated in New Zealand, registered under the Companies Act 1993, an FMC
reporting entity under the Financial Markets Conduct Act 2013, and is listed on the NZX Main Board and ASX.
The consolidated interim financial statements (the “Group financial statements”) are for Mercury NZ Limited Group (“Group”).
The Group financial statements comprise the Company and its subsidiaries, including its investments in associates and
interests in joint arrangements.
The liabilities of the Group are not guaranteed in any way by the Government or by any other shareholder.
2) Basis of preparation
The Group financial statements have been prepared in accordance with the New Zealand equivalent to International
Accounting Standard 34 - Interim Financial Reporting (“NZ IAS 34”). In complying with NZ IAS 34, these statements comply
with International Accounting Standard 34 - Interim Financial Reporting.
These Group financial statements, including the accounting policies adopted, do not include all the information and
disclosures required in the annual financial statements. Except as described below in (3) adoption of new accounting policies,
the Group financial statements have been prepared using the same accounting policies as, and should be read in conjunction
with, the Group’s annual financial statements for the year ended 30 June 2018.
The energy business operates in an environment that is dependent on weather as one of the key drivers of supply and
demand. Fluctuations in seasonal weather patterns, particularly over the short-term, can have a positive or negative effect
on financial performance. It is not possible to consistently predict this seasonality and some variability is common.
The preparation of financial statements requires judgements and estimates that impact the application of policies and
the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
Certain comparatives have been restated where needed to conform to current year classification and presentation.
3) Adoption of new accounting policies
The Group has adopted new international financial reporting standards relating to Financial Instruments (NZ IFRS 9), Revenue
from Contracts with Customers (NZ IFRS 15), and Leases (NZ IFRS 16) for the reporting period ending 31 December 2018.
The adoption of IFRS 9 has not resulted in a material change to the Group’s derivative financial instruments. For the
impairment of financial assets, a lifetime expected credit loss has been recognised in the income statement on trade
receivables, with a corresponding adjustment to provisions on the balance sheet.
The adoption of IFRS 15 results in a change to the Group’s policy relating to the treatment of credits given to customers and
incremental costs (e.g. commissions) of acquiring or retaining customers. The Group previously recognised both customer
credits and incremental costs of acquisition or retention as expenses when incurred. The change of policy results in customer
incentives being recognised directly against revenue when incurred. Incremental costs are recognised on the balance sheet as
customer contract assets, and amortised on a straight-line basis over the period which is consistent with the transfer of the
benefit to the customer, assumed to be two years.
The adoption of IFRS 16 results in all leases being recognised on the balance sheet. Lease payments are now recorded as a
repayment of the lease obligation and interest expense instead of as an operating expense in the income statement. Lease
assets are depreciated on a straight line basis over the current lease term. The Group has recognised lease assets and lease
liabilities at the present value of future lease payments for existing lease terms and all lease renewal options that are
reasonably certain to be exercised.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
These standards have been applied retrospectively. The effect of these changes in accounting policies are shown below:
Unaudited
6 months
ended
31 Dec 2017
$M
Adjustments
$M
Restated
unaudited
6 months
ended
31 Dec 2017
$M
Audited
year
ended
30 Jun 2018
$M
Adjustments
$M
Restated
audited
year
ended
30 Jun 2018
$M
Consolidated Income Statement
Total revenue 958 (3) 955 1,803 (5) 1,798
Total expenses (657) 6 (651) (1,242) 10 (1,232)
EBITDAF 301 3 304 561 5 566
Depreciation and amortisation (96) (2) (98) (197) (4) (201)
Change in the fair value of financial instruments 24 (1) 23 49 (1) 48
Net interest expense (46) (1) (47) (90) (1) (91)
Tax expense (52) – (52) (91) – (91)
Net profit after tax 132 (1) 131 234 (1) 233
Consolidated Balance Sheet
Contract assets – 4 4 – 3 3
Lease assets (Property, plant and equipment) – 14 14 – 12 12
Lease liabilities (Borrowings) – (17) (17) – (15) (15)
Non-current financial instruments (102) (4) (106) (73) (4) (77)
Deferred tax liability (1,109)– (1,109) (1,131) – (1,131)
Retained Earnings (126)– (126) (145) 1 (144)
Cash flow hedge reserve 44 3 47 24 3 27
24 // 25

NOTE 2. SEGMENT REPORTING
Identification of reportable segments
The operating segments are identified by management based on the nature of the products and services provided. Discrete
financial information about each of these operating segments is reported to the Chief Executive, being the chief operating
decision-maker, on at least a monthly basis, who assesses the performance of the operating segments on a measure of
EBITDAF. Segment EBITDAF represents profit earned by each segment exclusive of any allocation of central administration
costs, share of earnings of associates, change in fair value of financial instruments, depreciation, amortisation, impairments,
finance costs and tax expense. Operating segments are aggregated into reportable segments only if they share similar
economic characteristics.
Types of products and services
Energy Markets
The energy markets segment encompasses activity associated with the electricity production, electricity trading, and sale of
energy and related services and products to customers, and generation development activities.
Other Segments
Other operating segments that are not considered to be reporting segments are grouped together as “Other Segments”.
Activities include metering, sales of solar equipment, and international geothermal development and operations.
Unallocated
Represents corporate support services and related elimination adjustments.
Inter-segment
Transactions between segments are carried out on normal commercial terms and represent charges by Other Segments to
Energy Markets.
Segment results
Six months ended 31 December 2018 (unaudited)
Energy
Markets
$M
Other
Segments
$M
Unallocated
$M
Inter-
segment
$M
To t a l
$M
Total segment revenue1,063 27 1 (12)1,079
Direct costs(686) (4) – 12 (678)
Other operating expenses(62)(9)(28) – (99)
Segment EBITDAF315 14 (27) – 302
Six months ended 31 December 2017 (restated unaudited)
Energy
Markets
$M
Other
Segments
$M
Unallocated
$M
Inter–
segment
$M
To t a l
$M
Total segment revenue941 27 – (13)955
Direct costs(562)(3) – 13 (552)
Other operating expenses(62)(9)(28) – (99)
Segment EBITDAF317 15 (28) – 304
Twelve months to 30 June 2018 (restated audited)
Energy
Markets
$M
Other
Segments
$M
Unallocated
$M
Inter–
segment
$M
To t a l
$M
Total segment revenue1,768 53 2 (25)1,798
Direct costs(1,046)(6) – 25 (1,027)
Other operating expenses(130)(17)(58) – (205)
Segment EBITDAF592 30 (56) – 566
At 30 June 2018, the Group adjusted historic other operating expenses of Other Segments to be reflected in direct costs.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
NOTE 3. NON STATUTORY MEASURE - UNDERLYING EARNINGS
Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
Profit for the period104 131 233
Change in the fair value of financial instruments14 (23)(48)
Equity accounted share of the change in the fair value of financial instruments of associate entities – (1)(1)
Adjustments before tax expense14 (24)(49)
Tax expense(4) 7 14
Adjustments after tax expense10 (17)(35)
Underlying earnings after tax114 114 198
Tax has been applied on all taxable adjustments at 28%.
NOTE 4. OTHER INCOME STATEMENT DISCLOSURES
Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
Sales - Electricity generation 535 366 655
Sales to customers and derivatives 519 568 1,096
Other revenue 25 21 47
Total revenue 1,079 955 1,798
Energy costs(423)(290)(527)
Line charges(221)(231)(437)
Other direct cost of sales, excluding third party metering(17)(15)(32)
Direct costs of other revenue(4)(3)(6)
Third party metering(13)(13)(25)
Employee compensation and benefits(45)(43)(87)
Maintenance expenses(21)(20)(51)
Other expenses(33)(36)(67)
Total expenses(777)(651)(1,232)
Interest expense(40)(48)(93)
Interest income112
Net interest expense(39)(47)(91)
26 // 27

NOTE 5. SHARE CAPITAL AND DISTRIBUTION
The share capital of the Company is represented by 1,400,012,517 ordinary shares (30 June 2018: 1,400,012,517) issued and
fully paid. These shares do not have a par value, have equal voting rights and share equally in dividends and any surplus on
winding up.
Unaudited
31 Dec 2018
Number of
shares (M)
Unaudited
31 Dec 2018
$M
Unaudited
31 Dec 2017
Number of
shares (M)
Unaudited
31 Dec 2017
$M
Audited
30 Jun 2018
Number of
shares (M)
Audited
30 Jun 2018
$M
Treasury shares
Balance at the beginning of the period 39 101 24 51 24 51
Acquisition of treasury shares – – – – 15 50
Disposal of treasury shares––––––
Balance at the end of the period 39 101 24 51 39 101
Cents per
share
Unaudited
6 Months
31 Dec 2018
$M
Unaudited
6 Months
31 Dec 2017
$M
Audited
12 Months
30 Jun 2018
$M
Dividends declared and paid
Final dividend for 2017 8.8 – 121 121
Special dividend - paid September 2017 5.0 – 69 69
Interim dividend for 2018 6.0 – – 83
Final dividend for 2018 9.1 124 – –
124 190 273
NOTE 6. FINANCIAL INSTRUMENTS
The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to proactively
manage these risks with the aim of protecting shareholder value. Exposure to price, credit, foreign exchange, liquidity and
interest rate risks arise in the normal course of the Group’s business. The Group’s principal financial instruments comprise
cash and cash equivalents, trade receivables and accruals (not prepayments), advances, payables and accruals, borrowings
and derivative financial instruments. Further information on the identified risks can be found within note 14 of the Group’s
annual financial statements for the year ended 30 June 2018.
Fair values
The carrying amount of financial assets and liabilities recorded in the financial statements approximates their fair values
except for: (i) the Fixed Rate Bonds, the Floating Rate Bonds and the US Private Placement, the fair values for which have
been calculated at $137 million (30 June 2018: $138 million), $295 million (30 June 2018: $293 million) and $303 million
(30 June 2018: $301 million) respectively; and (ii) the Capital Bonds, the fair value for which has been calculated at
$309 million (30 June 2018: $313 million). Fair values are based on quoted market prices and inputs for each bond issue.
Refer to note 9 which outlines the values of each of these instruments.
Valuation techniques
The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:
• Level 1 - the fair value is calculated using quoted prices in active markets;
• Level 2 - the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly (as prices) or indirectly (derived from prices); and
• Level 3 - the fair value is estimated using inputs that are not based on observable market data.
As at 31 December 2018 all of the Group’s financial instruments carried at fair value were categorised as level 2, except
for electricity price derivatives. Electricity price derivative assets of $67 million were categorised as level 1 (30 June 2018:
$21 million) and $85 million were categorised as level 3 (30 June 2018: $63 million). Further information on the identified
risks can be found within note 14 of the Group’s annual financial statements for the year ended 30 June 2018. Electricity price
derivative liabilities of $59 million were categorised as level 1 (30 June 2018: $1 million) and $96 million were categorised as
level 3 (30 June 2018: $9 million).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
Financial instruments that use a valuation technique with only observable market inputs, or unobservable inputs that are not
significant to the overall valuation, include interest rate derivatives and foreign exchange rate derivatives not traded on a
recognised exchange.
Financial instruments that use a valuation technique which includes non-market observable data include non-exchange
traded electricity contracts which are valued using a discounted cash flow methodology using a combination of ASX market
prices for the first four years, combined with management’s internal view of forward prices for the remainder of the contract’s
term. Management’s internal view of forward prices incorporates a minimum price of $69/MWh and a maximum price of
$125/MWh (30 June 2018: a minimum price of $63/MWh and a maximum price of $105/MWh) over the period in question
(in real terms) and is determined by a demand supply based fundamental model which takes account of current hydrological
conditions, future inflows, an assessment of thermal fuel costs, anticipated demand and supply conditions and future
committed generation capacity.
Where the fair value of a derivative is calculated as the present value of the estimated future cash flows of the instrument
there are two key inputs being used; the forward price curve and the discount rate. Where the derivative is an option, then the
volatility of the forward price is another key variable. The selection of the inputs requires significant judgement, and therefore
there is a range of reasonably possible assumptions in respect of these inputs that could be used in estimating the fair values
of these derivatives. Maximum use is made of observable market data when selecting inputs and developing assumptions for
the valuation technique.
Reconciliation of level 3 fair value movements
Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
Opening balance 54 7 7
New contracts (10)– 2
Matured contracts 1 – 8
Gains and losses
Through the income statement (7) 1 (7)
Through other comprehensive income (49) 15 44
Closing balance (11)23 54
Deferred ‘inception’ gains/(losses)
There is an assumption that when derivative contracts are entered into on an arm’s length basis, fair value at inception would
be zero. The contract price of non exchange traded electricity derivative contracts are agreed on a bilateral basis, the pricing
for which may differ from the prevailing derived market price curve for a variety of reasons. In these circumstances an
inception adjustment is made to bring the initial fair value of the contract to zero at inception. This inception value is
amortised over the life of the contract by adjusting the future price path used to determine the fair value of the derivatives by
a constant amount to return the initial fair value to zero.
The table below details the movements in inception value gains/(losses) included in the fair value of derivative financial assets
and liabilities:
Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
Opening deferred inception (losses) (28) (6) (6)
Deferred inception (losses) on new hedges (11) (2) (6)
Deferred inception gains/(losses) realised during the period 3 (2) (16)
Closing inception (losses) (36) (10) (28)
28 // 29

NOTE 7. PROPERTY, PLANT AND EQUIPMENT

Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
Opening net book value 5,370 5,388 5,388
Adjustment on adoption of new IFRS – 16 16
Restated opening net book value 5,370 5,404 5,404
Additions, including transfers from capital work in progress35 42 94
Net revaluation movement – – 55
Transfer to held-for-sale (47) – –
Depreciation charge for the period (91) (88) (183)
Closing net book value 5,267 5,358 5,370
At 31 December 2018, included within property, plant and equipment is $12 million of lease assets. These assets incurred a
depreciation charge of $2 million for the six months ended 31 December 2018.
NOTE 8. INVESTMENT AND ADVANCES TO ASSOCIATES AND
JOINT ARRANGEMENTS (JOINT VENTURES AND JOINT OPERATIONS)
Investments include:
Interest Held
Name of entityPrincipal activityType
Unaudited
31 Dec
2018
Unaudited
31 Dec
2017
Audited
30 June
2018Country
TPC Holdings LimitedInvestment holdingAssociate25.00%25.00%25.00%New Zealand
RotokawaSteamfield operationJoint Operation64.80%64.80%64.80%New Zealand
Nga Awa PuruaElectricity generationJoint Operation65.00%65.00%65.00%New Zealand
Energy Source LLCInvestment holdingJoint Venture20.86%20.86%20.86%United States
Energy Source Minerals LLCMineral extractionJoint Venture20.84%0.00%20.84%United States
Hudson Ranch I Holdings LLCElectricity generationJoint Venture75.00%75.00%75.00%
United States
Associates:Joint Ventures:
Unaudited
6 Months
31 Dec 2018
$M
Unaudited
6 Months
31 Dec 2017
$M
Audited
12 Months
30 Jun 2018
$M
Unaudited
6 Months
31 Dec 2018
$M
Unaudited
6 Months
31 Dec 2017
$M
Audited
12 Months
30 Jun 2018
$M
Balance at the beginning of the period88 76 76 – – –
Share of earnings – 1 2 – – –
Share of movement in other comprehensive income – 1 14 – – –
Distributions received during the period (2) (2) (4) – – –
Balance at the end of the period86 76 88 – – –

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
NOTE 9. BORROWINGS
Borrowing
Currency
DenominationMaturityCoupon
Unaudited
6 Months
31 Dec 2018
$M
Restated
Unaudited
6 Months
31 Dec 2017
$M
Restated
Audited
12 Months
30 Jun 2018
$M
Bank facilitiesNZDVariousFloating130 21 91
Commercial paper programmeNZD< 3 monthsFloating200 100 170
Wholesale bondsNZDMar-20195.03%76 76 76
Wholesale bondsNZDFeb-20208.21%31 31 31
USPP - US$125mUSDDec-20204.25%163 164 163
Wholesale / Credit wrapperNZDSep-2021Floating300 301 300
USPP - US$30mUSDDec-20224.35%39 39 39
Wholesale bondsNZDMar-20235.79%25 25 25
USPP - US$45mUSDDec-20254.60%59 58 59
Capital BondsNZDJul-20446.90%305 305 305
Lease liabilitiesNZD21 17 15
Deferred financing costs(3) (5) (5)
Fair value adjustments60 45 51
Carrying value of loans1,406 1,177 1,320
Current 288 135 350
Non-current1,118 1,042 970
1,406 1,177 1,320
The Group has $550 million of committed and unsecured bank loan facilities as at 31 December 2018 (30 June 2018:
$650 million). The Company cancelled $100 million of facilities and $100 million of facilities matured during the reporting
period. Of the loan facilities of $550 million, $50 million expires in September 2019, $100 million expires in June 2021,
$100 million expires in August 2022, $100m expires in October 2022, and a rolling bank loan of $200 million currently
expires in June 2020.
The Company has a $200 million Commercial Paper programme which is fully backed by committed and undrawn bank
facilities. Notes issued under the programme are short-term money market instruments, unsecured and unsubordinated
and targeted at professional investors. The programme is rated A2 by Standard & Poor’s.
30 // 31

NOTE 10. RELATED PARTY TRANSACTIONS
Ultimate shareholder
The majority shareholder of Mercury NZ Limited is the Government. All transactions with the Government and other entities
wholly or partly owned by the Government are on normal commercial terms. Transactions cover a variety of services including
sales and trading of energy, postal, travel and tax.
Transactions with related parties
Mercury NZ Limited has investments in subsidiaries, associates and joint arrangements, all of which are considered
related parties.
As these are consolidated financial statements, transactions between related parties within the Group have been
eliminated. Consequently, only those transactions between entities which have some owners external to the Group
have been reported below:
Transaction Value
Unaudited
6 Months
31 Dec 2018
$M
Unaudited
6 Months
31 Dec 2017
$M
Audited
12 Months
30 Jun 2018
$M
Associates
Management fees and service agreements received 12 10 14
Energy contract settlements received 13 4 6
Joint operations
Management fees and service agreements received 5 6 11
Energy contract settlements received 18 2 2
Interest income – – 1
Transaction Value
Unaudited
6 Months
31 Dec 2018
$000
Unaudited
6 Months
31 Dec 2017
$000
Audited
12 Months
30 Jun 2018
$000
Key management personnel compensation (paid and payable) comprised:
Directors’ fees 493 470 960
Benefits for the Chief Executive and Senior Management:
Salary and other short-term benefits 3,239 3,191 6,275
Share-based payments 114 293 553
3,846 3,954 7,788
Further information on the terms and conditions of these related party transactions can be found in note 17 of the Group’s
annual financial statements for the year ended 30 June 2018.
Other transactions with key management personnel
Key management personnel are those people with responsibility and authority for planning, directing and controlling the
activities of the Group. Key management personnel for the Group are considered to be the Directors and Senior Management.
Directors and employees of the Group deal with Mercury NZ Limited as electricity consumers on normal terms and conditions,
with staff discounts for employees, within the ordinary course of trading activities. A number of key management personnel
also provide directorship services to other third party entities. A number of these entities transacted with the Group, in all
circumstances on normal commercial terms during the reporting period.
A number of key management personnel provide directorship services to direct subsidiaries and other third party entities as
part of their employment without receiving any additional remuneration. Again, a number of these entities transacted with the
Group, in all circumstances on normal commercial terms in the reporting period.
The Group purchases directors and officers insurance for the benefit of key management personnel in relation to the services
they provide to the Group.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
NOTE 11. COMMITMENTS AND CONTINGENCIES
Unaudited
6 Months
31 Dec 2018
$M
Unaudited
6 Months
31 Dec 2017
$M
Audited
12 Months
30 Jun 2018
$M
Commitments
Capital94 115 106
Other operating commitments99 82 87
Capital commitments include both commitments to purchase property, plant and equipment as well as intangible
commitments. Intangible commitments includes commitments to purchase emissions units. In the event the New Zealand
emissions trading scheme (NZ ETS) is terminated, the forward purchase agreements for the acquisition of emissions units
which cover a 9 year period will also terminate.
Contingencies
The Group has interests in land, fresh water and geothermal resources that are subject to claims against the Government.
In 2014 the Supreme Court dismissed claimants’ action for a declaration that the Government holds those parts of the
Waikato River bed which adjoin former Pouakani land on trust for the Pouakani people. The Supreme Court left open the
possibility of further litigation in respect of ownership of land currently held or used by the Group. The Group is advised
that it may proceed with a high degree of confidence that future decisions on the matter will not impair the Group’s ability
to operate its hydro assets. A separate claim over fresh water and geothermal resources was lodged by the New Zealand
Maori Council with the Waitangi Tribunal in 2012. The Tribunal concluded that Maori have residual (but as yet undefined)
proprietary rights in fresh water and geothermal resources and it will be for the Government to determine how any such
rights and interests may best be addressed. The impact of this claim on the Group’s operations is unknown at this time.

From time to time the Group will issue letters of credit and guarantees to various suppliers in the normal course of business.
However, there is no expectation that any outflow of resource relating to these letters of credit or guarantees will be required
as a consequence.
The Group has no other material contingent assets or liabilities.
NOTE 12. SUBSEQUENT EVENTS
On 17 December 2018, the Company announced the sale of its smart-metering business, Metrix, to intelliHUB Group for a
cash consideration of $270m on 1 March 2019. As a result, the assets and liabilities of Metrix are now recognised as held for
sale in the balance sheet. The annualised reduction to EBITDAF from the sale is $28m.
Under Tilt Renewables Limited’s pro rata entitlement offer of shares announced on 20 February 2019, the Company
committed $55 million of equity funding support to Tilt Renewables Limited for the Dundonnell windfarm project in
Victoria, Australia.
The Board of Directors has approved an interim dividend of 6.2 cents per share to be paid on 1 April 2019.
There are no other material events subsequent to balance date that would affect the fair presentation of these Group
financial statements.
32 // 33

OTHER DISCLOSURES
SHAREHOLDER INFORMATION
The company’s net tangible assets per share (excluding treasury stock) as at 31 December 2018 was $2.30, compared with $2.29 at
31 December 2017.
Control of entities that were gained or lost during the period were as follows:
Company nameDate control gained or lost
Metrix Limited*Entity incorporated on 13 December 2018
* Entity will be transferred pursuant to Mercury’s sale of the Metrix business which is expected to complete on 1 March 2019.
Shareholder enquiries
Changes in address, dividend payment details and
investment portfolios can be viewed and updated online:
www.investorcentre.com/nz. You will need your CSN and
FIN numbers to access this service.
Enquiries may be addressed to the Share Registrar
(see Directory for contact details).
Investor information
Our website at www.mercury.co.nz is an excellent source of
information about what’s happening within the company.
Our Investor Centre allows you to view all regular investor
communications, information on our latest operating and
financial results, dividend payments, news and share price history.
Electronic shareholder communication
It is quick and easy to make the change to receiving your reports
electronically. This can be done either:
• Online at www.investorcentre.com/nz by using your CSN/
Holder Number and FIN numbers (when you log in for the
first time). Select ‘My Profile’, and then select ‘Update’ under
‘Communication Preferences’. You can then enter your email
address and click ‘Submit’; or
• By contacting Computershare Investor Services Limited by
email, fax or post.

DIRECTORY
Board of Directors
Joan Withers, Chair
Prue Flacks
Andy Lark
James Miller
Keith Smith
Scott St John
Patrick Strange
Mike Taitoko
Executive Team
Fraser Whineray,
Chief Executive
Kevin Angland,
General Manager Digital Services
Nick Clarke,
General Manager Geothermal
& Safety
Phil Gibson,
General Manager Hydro
& Wholesale
Julia Jack,
Chief Marketing Officer
William Meek,
Chief Financial Officer
Tony Nagel,
General Manager Corporate Affairs
Matt Olde,
Metrix Chief Executive
Marlene Strawson,
General Manager People
& Performance
Company Secretary
Howard Thomas
Investor Relations &
Sustainability Enquiries
Tim Thompson
Head of Treasury & Investor
Relations
Mercury NZ Limited
P O Box 90399
Auckland 1142
New Zealand
Phone: +64 27 517 3470
Email: investor@mercury.co.nz
34 // 35

insight
creative.co.nz

MERC233
Registered Office in New Zealand
33 Broadway, Newmarket,
Auckland 1023
Registered Office in Australia
c/– TMF Corporate Services
(Australia) Pty Limited
Level 16, 201 Elizabeth Street
Sydney NSW 2000
Phone: +61 2 8988 5800
Legal Advisors
Chapman Tripp
Level 35, ANZ Centre
23 Albert Street, Auckland 1010
PO Box 2206, Auckland
Phone: +64 9 357 9000
Bankers
ANZ Bank
ASB Bank
Bank of New Zealand
China Construction Bank
Mitsubishi UFJ Financial Group
Mizuho Bank
Westpac
Credit Rating (re-affirmed
December 2018)
Long term: BBB+
Outlook: Stable
Share Register – New Zealand
Computershare Investor Services Ltd
Level 2, 159 Hurstmere Road, Takapuna,
Auckland 0622
Private Bag 92 119
Auckland 1142
New Zealand
Phone: +64 9 488 8777
Email: enquiry@computershare.co.nz
Web: www.investorcentre.com/nz
Share Register – Australia
Computershare Investor Services Pty Ltd
Yarra Falls, 452 Johnston Street,
Abbotsford, VIC 3067
GPO Box 3329
Melbourne, VIC 3001
Australia
Phone: 1 800 501 366 (within Australia)
Phone: +61 3 9415 4083 (outside
Australia)
Email: enquiry@computershare.co.nz

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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
x
whether:
Interim
x
YearSpecialDRP 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
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per securityPayment
(does not include any excluded income)
Excluded income per security
(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
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
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:
14 March, 20191 April, 2019
$$0.004306$0.024111
$
New Zealand Dollars$0.010941
$0.062
Date Payable
1 April, 2019
not applicable
Enter N/A if not
applicable
NZMRPE0001S2
In dollars and cents
Income available for distribution
$0.062
Mercury NZ Limited ordinary shares
+64 9 308 8200+64 9 308 820926022019
EMAIL: announce@nzx.com
Notice of event affecting securities
1
Mercury NZ Limited
Howard Thomas, Company SecretaryDirectors' resolution

---

CSN/Security Holder number:









DEAR SHAREHOLDER,
Mercury is pleased to share with you highlights of our results for the half year to 31
December 2018.
We invite you to view our 2019 Interim Report, along with Mercury's investor presentation
and news release.

VIEW OUR
2019 INTERIM REPORT



SEE OUR INVESTOR
PRESENTATION & NEWS
RELEASE





Highlights of the six months to 31 December 2018



OPERATING EARNINGS (EBITDAF)


$302 million
EBITDAF near HY2018 record ($304 million
1
) despite less favourable hydrology.



NET PROFIT AFTER TAX


$104 million
Negatively impacted by a non-cash change in the fair value of financial instruments (reflecting
higher electricity futures price).



INTERIM ORDINARY DIVIDEND


6.2 cents per share
6.2 cents per share fully-imputed up 3.3%, to be paid on 1 April 2019.

It is my pleasure to report to you on our performance for the half year ended 31 December
2018.
The period once again saw strong, focused execution of the company's strategy.
Mercury achieved stable first half earnings (EBITDAF) of $302 million, close to the record
$304 million in the prior comparable period.
This was despite hydro generation 246GWh less than HY2018 (2,694GWh) as a result of less
favourable hydrological conditions in the second quarter of the year. Through the period,
high geothermal reliability was maintained at 97% (95% HY2018).
Operating expenditure at $99 million was in line with HY2018.
Stay-in-business capital expenditure of $45 million ($59 million HY2018) was directed to
activities including asset management, IT enhancements and consolidating our Auckland
locations into one primary, integrated space.
Mercury's FY2019 EBITDAF guidance is reaffirmed at $515 million subject to any material
events, significant one-off expenses or other unforeseeable circumstances including
hydrological conditions. The guidance includes the forecast reduction to EBITDAF of $10
million from of the sale of Metrix (settlement assumed 1 March 2019; annualised impact $28
million).
On behalf of the Board, I look forward to a second half of the year that builds on the platform
that has been established, and reporting to you, our owners, again in August 2019.
Kind regards,

Joan Withers | Chair, Mercury NZ Limited
1
Adjusted from HY2018 reported EBITDAF of $301 million to align with International Financial Reporting Standards
(IFRS) changes.

NOTICE OF REPORT AVAILABILITY
Our Annual and Interim Reports are available on our website www.mercury.co.nz/investors





You are receiving this email because you have signed up for electronic security holder communications.
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© Copyright 2019 Mercury NZ Ltd.
COMPUTERSHARE INVESTOR SERVICES LTD




BACK OF THE FUTURE.
Click through to see Evie's electric makeover

FIND OUT MORE

---

CSN/Security Holder number:









DEAR BONDHOLDER,
Mercury is pleased to share with you highlights of our results for the half year to 31
December 2018.
We invite you to view our 2019 Interim Report, along with Mercury's investor presentation
and news release.
VIEW OUR
2019 INTERIM REPORT



SEE OUR INVESTOR
PRESENTATION & NEWS
RELEASE

Highlights of the six months to 31 December 2018



OPERATING EARNINGS (EBITDAF)


$302 million
EBITDAF near HY2018 record ($304 million
1
) despite less favourable hydrology.



NET PROFIT AFTER TAX


$104 million
Negatively impacted by a non-cash change in the fair value of financial instruments (reflecting
higher electricity futures price).



S&P Credit Rating

BBB+ re-affirmed in December 2018






It is my pleasure to report to you on our performance for the half year ended
31 December 2018.
The period once again saw strong, focused execution of the company's strategy.

Mercury achieved stable first half earnings (EBITDAF) of $302 million, close to the record
$304 million in the prior comparable period.
This was despite hydro generation 246GWh less than HY2018 (2,694GWh) as a result of less
favourable hydrological conditions in the second quarter of the year. Through the period,
high geothermal reliability was maintained at 97% (95% HY2018).
Operating expenditure at $99 million was in line with HY2018.
Stay-in-business capital expenditure of $45 million ($59 million HY2018) was directed to
activities including asset management, IT enhancements and consolidating our Auckland
locations into one primary, integrated space.
On behalf of the Board, I look forward to a second half of the year that builds on the platform
that has been established, and reporting to you again in August 2019.
Kind regards,

Joan Withers | Chair, Mercury NZ Limited
1
Adjusted from HY2018 reported EBITDAF of $301 million to align with International Financial Reporting Standards
(IFRS) changes.





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