Contact invests in Simply Energy

11 June 2019
Contact invests in Simply Energy
Contact Energy announced today an investment of $10.7 million over three financial
years to acquire a 49.9% shareholding in Simply Energy, a specialist Wellington-
based electricity solutions business which provides tailored solutions for commercial
and industrial energy clients.

Contact Energy (Contact) has invested in an innovative energy solutions company to help
commercial and industrial customers reduce their carbon footprint and accelerate our
strategy to decarbonise New Zealand’s energy system.

“Our commercial and industrial customers have told us they want to transition to a lower
carbon future through a partnership that goes beyond the competitive electricity price we
already offer,” Contact’s Chief Generation and Development Officer James Kilty says.

“In Simply Energy we see a track record of delivering innovative, bespoke electricity supply
solutions, including wholesale electricity supply, hedging and tariff services combined with
energy management solutions and we are looking forward to working with them to help our
customers make the transition in an economically sensible way.”

As a result of the investment, Simply Energy will broaden the range of products and services
for customers. It will also work closely with our fulfilment partners to provide tailored services
to those who want to switch from fossil fuels to renewable electricity.

Simply Energy Managing Director Murray Dyer says the investment is an important and
significant step towards a lower carbon future.

“This is an exciting venture for Simply Energy and Contact to provide more sustainable
energy solutions for customers. We have an aligned business plan and structure to ensure
our customers have access to some of the most innovative energy solutions. We look
forward to working with Contact to further develop these services to help customers
transition to a lower carbon future.”

Simply will continue to operate independently as a trusted service partner to its existing
customers but with full access to add innovative products to Contact’s commercial and
industrial customer base.

The purchase price, which is payable over three financial years, includes a $2 million
injection into Simply to fund investment in systems and technology to enhance the range of
products and services available to customers.

Contact will use existing credit facilities to fund the investment, which is expected to
complete by the end of June 2019. Contact expects the investment in Simply to be earnings
accretive from FY21 onwards. Contact has the option to increase its shareholding in two
years depending on the success of the venture in achieving our decarbonisation priorities.

About Simply Energy
Simply Energy is the service partner of choice for New Zealand independent generators,
distribution companies, electricity retailers and commercial energy users with three core
service offerings:

 Generation management services for embedded generators including landfill waste to
energy generation, hydro, geothermal, wind, gas engines and solar generation.
 Retail services for independent retailers and new entrants. Bespoke agile services and
turn-key “white label” retail solutions for established retailers and distribution
companies.
 Electricity supply solutions for commercial and industrial energy consumers. These
include wholesale electricity supply, hedging and tariff services combined with energy
management solutions.

Investor enquiries
Matthew Forbes
+64 21 072 8578

Media enquiries
Raphael Hilbron
+64 21 605 371