Meridian Energy Limited 2020 Interim Results

Release






M e r i d i a n E n e r g y L i m i t e d ( A R B N 1 5 1 8 0 0 3 9 6 ) A c o m p a n y i n c o r p o r a t e d i n N e w Z e a l a n d
L e v e l 2 , 5 5 L a d y E l i z a b e t h L a n e , P O B o x 1 0 8 4 0 , W e l l i n g t o n 6 1 4 3

m e r i d i a n e n e r g y . c o . n z
Stock Exchange Listings NZX (MEL) ASX (MEZ)
Meridian Energy delivers record interim result
26 February 2020
Meridian Energy has reported record interim earnings and net profit. Group EBITDAF increased by
20% to $465 million, while net profit reached $191 million, up 26%. Along with a record level of hydro
generation in New Zealand, the results reflect significant customer and sales volume growth across all
segments, including a 39% growth in corporate sales.
Chief Executive Neal Barclay says Meridian’s outstanding performance has been delivered in part
due to favourable conditions and also the work of our dedicated team across both the Meridian and
Powershop brands. While our financial results are pleasing, I am also thrilled that Powershop was
ranked the top electricity provider by Consumer NZ and Meridian was ranked the top large retailer.
“Customer numbers across New Zealand and Australia have grown 8% since June 2019. I think this
demonstrates that as a Group, by doing right by people and right by the environment, we’re delivering
for our customers,” Mr Barclay says.
Meridian’s largest customer, Rio Tinto, announced in October 2019 that they would be conducting a
strategic review of the Tiwai smelter. Meridian has offered contract changes to Rio Tinto and we note
the smelter may receive lower transmission costs in the future. The review is expected to be
completed by end of the first quarter in 2020.
“As a 100% renewable energy generator, we continue to lead environmental change as New Zealand
works towards a low carbon future. Meridian is now net zero carbon across our operations and we
have committed to halve our gross emissions by 2030,” says Mr Barclay.
ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772

For media queries, please contact:

Polly Atkins
Senior External Communications Specialist
021 174 1715

---

Condensed
Interim Financial
Statements.

As at and for the
six months to 31
December 2019.

3Income Statement
The income earned and operating
expenditure incurred by the Meridian
Group during the six months.
3Comprehensive Income Statement
Items of income and operating expense
that are not recognised in the income
statement and hence taken to reserves
in equity.
4Balance Sheet
A summary of the Meridian Group
assets and liabilities at the end of
the six months.
5Changes in Equity
Components that make up the capital
and reserves of the Meridian Group and
the changes of each component during
the six months.
6Cash Flows
Cash generated and used by the
Meridian Group.
7About this report
8Significant matters in the six months
9A. Financial performance
A1. Segment performance
A2. Income
A3. Expenses
A4. Taxation
13B. Assets used to generate and sell electricity
B1. Property, plant and equipment
B2. Intangible assets
14C. Managing funding
C1. Capital management
C2. Earnings per share
C3. Dividends
C4. Borrowings
18D. Financial instruments
D1. Financial instruments
22E. Other
E1. Group structure
E2. Contingent assets and liabilities
E3. Subsequent events
E4. Changes in financial
reporting standards
23Review report
Independent auditor’s review report
Notes to the Condensed Interim Financial Statements Condensed Interim Financial Statements
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
2

Income Statement
For the six months to 31 December 2019
UnauditedUnaudited
Note
2019
$M
2018
$M
Operating revenueA2 1,780 1,691
Operating expensesA3(1,315) (1,302)
Earnings before interest, tax, depreciation,
amortisation, changes in fair value of hedges
and other significant items (EBITDAF)
465 389
Depreciation and amortisationB1, B2(157) (137)
Net change in fair value of electricity and other hedgesD1(6) 20
Operating profit 302 272
Finance costsA3(43) (43)
Net change in fair value of treasury instrumentsD1 6 (15)
Net profit before tax 265 214
Income tax expense A4(74) (62)
Net profit after tax attributed to the
shareholders of the parent company
191 152
Profit attributed to the shareholders of the
parent company
191 152
Earnings per share (EPS) attributed to
ordinary equity holders of the parent company
Cents Cents
Basic and diluted earnings per shareC27. 55.9
The notes to the condensed interim financial statements form an intergal part of these financial statements.
Comprehensive Income Statement
For the six months to 31 December 2019
UnauditedUnaudited
2019
$M
2018
$M
Net profit after tax 191 152
Items that may be reclassified to profit or loss:
Net gain on cash flow hedges 3 -
Exchange differences arising from translation
of foreign operations
- (19)
Income tax on the above items(2)-
Other comprehensive income for the period, net of tax 1 (19)
Total comprehensive income for the period, net of tax attributed to
shareholders of the parent company
192 133
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
3

The notes to the condensed interim financial statements form an integral part of these financial statements.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
4
Balance Sheet
As at 31 December 2019
Note
Unaudited
31 Dec 2019
$M
Unaudited
31 Dec 2018
$M
Audited
30 Jun 2019
$M
Current assets
Cash and cash equivalents 55 78 78
Trade receivables 265 259 292
Customer contract assets 23 20 20
Financial instrumentsD1 157 106 118
Other assets 39 35 34
Total current assets 539 498 542
Non-current assets
Property, plant and equipmentB1 8,776 7, 8 0 9 8,825
Intangible assetsB2 58 59 59
Deferred tax 36 38 40
Financial instrumentsD1 181 162 191
Total non-current assets 9,051 8,068 9, 115
Total assets 9,59 0 8,566 9,6 57
Note
Unaudited
31 Dec 2019
$M
Unaudited
31 Dec 2018
$M
Audited
30 Jun 2019
$M
Current liabilities
Payables and accruals 280 293 303
Employee entitlements 11 11 17
Customer contract liabilities 18 15 16
Current portion of term borrowingsC4 183 512 167
Current portion of lease liabilities 7 1 1
Financial instrumentsD1 34 52 36
Current tax payable 50 30 80
Total current liabilities 583 914 620
Non-current liabilities
Term borrowingsC4 1 ,374 1,049 1,303
Deferred tax 1,94 4 1,668 1,96 8
Provisions 12 9 9
Lease Liabilities 99 45 31
Financial instrumentsD1 212 151 209
Term payables 54 66 60
Total non-current liabilities 3,695 2,988 3,580
Total liabilities 4,278 3,902 4,200
Net assets 5,312 4,664 5,457
Shareholders’ equity
Share capital 1,599 1,598 1,599
Reserves 3,713 3,066 3,858
Total shareholders’ equity 5,312 4,664 5,457
For and on behalf of the Board of Directors who authorised the issue of the condensed interim
financial statements on 25 February 2020.



Mark Verbiest
Board Chair
Julia Hoare
Chair Audit & Risk Committee

The notes to the condensed interim financial statements form an integral part of these financial statements.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
5
Changes in Equity
For the six months to 31 December 2019
$M
Audited
Note
Share
capital
Share option
reserve
Revaluation
reserve
Foreign
currency
translation
reserve
Cash flow
hedge
reserve
Retained
earnings
Shareholders
equity
Balance at 1 July 2018 1,598 1 4,249 (16) 1 (1,010) 4,823
Net profit for the year - - - - - 339 339
Other comprehensive income
Asset revaluation - - 1,139 - - - 1,139
Net gain on cash flow hedges - - - - (5) - (5)
Exchange differences from translation of foreign operations - - - (21) - - (21)
Income tax relating to other comprehensive income - - (320) - 1 - (319)
Total other comprehensive income, net of tax - - 819 (21) (4) - 794
Total comprehensive income for the year, net of tax - - 819 (21) (4) 339 1,133
Share-based transactions 1 - - - - - 1
Dividends paid - - - - - (500) (500)
Balance at 30 June 2019 and 1 July 2019 1,599 1 5,068 (37) (3) (1,171) 5,457
Unaudited
Net profit for the period - - - - - 191 191
Other comprehensive income
Net gain on cash flow hedges - - - - 3 - 3
Income tax relating to other comprehensive income - - - - (2) - (2)
Total other comprehensive income, net of tax - - - - 1 - 1
Total comprehensive income for the year, net of tax - - - - 1 191 192
Dividends paidC3 - - - - - (337) (337)
Balance at 31 December 2019 1,599 1 5,068 (37) (2) (1,317) 5,312
Unaudited
Balance at 1 July 2018 1,598 1 4,249 (16) 1 (1,010) 4,823
Net profit for the period - - - - - 152 152
Other comprehensive income
Exchange differences from translation of foreign operations - - - (19) - - (19)
Total other comprehensive income, net of tax - - - (19) - - (19)
Total comprehensive income for the period, net of tax - - - (19) - 152 133
Dividends paidC3 - - - - - (292) (292)
Balance at 31 December 2018 1,598 1 4,249 (35) 1 (1,150) 4,664

Cash Flows
For the six months to 31 December 2019
UnauditedUnaudited
Note
2019
$M
2018
$M
Operating activities
Receipts from customers 1,803 1,690
Payments to suppliers and employees(1,372) (1,305)
Interest paid(41) (41)
Income tax paid(124) (82)
Operating cash flows 266 262
Investing activities
Purchase of property, plant and equipment(23) (23)
Purchase of intangible assets(11) (12)
Investing cash flows(34) (35)
Financing activities
Term borrowings drawn 141 89
Term borrowings repaid(55) (5)
Lease Liabilities paid(4) -
Dividends C3(337) (292)
Financing cash flows(255) (208)
Net increase in cash and cash equivalents(23) 19
Cash and cash equivalents at beginning of the six months 78 60
Effect of exchange rate changes on net cash - (1)
Cash and cash equivalents at end of the six months 55 78
The notes to the condensed interim financial statements form an integral part of these financial statements.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
6

Meridian Energy Limited is a
for-profit entity domiciled and
registered under the Companies Act
1993 in New Zealand. It is an FMC
reporting entity for the purposes of
the Financial Markets Conduct (FMC)
Act 2013. Meridian’s core business
activities are the generation, trading
and retailing of electricity and the
sale of complementary products
and services. The registered office of
Meridian is 55 Lady Elizabeth Lane,
Wellington. Meridian Energy Limited
is dual listed on the New Zealand
Stock Exchange (NZX) and the
Australian Securities Exchange (ASX).
As a Mixed Ownership Company,
About this report
In this section.
The summary notes to the condensed
interim financial statements include
information which is considered
relevant and material to assist the
reader in understanding changes
in Meridian’s financial position
or performance. Information is
considered relevant and material if:
• the amount is significant because
of its size and nature;
• it is important for understanding
the results of Meridian;
• it helps to explain changes in
Meridian’s business; or
• it relates to an aspect of Meridian’s
operations that is important to
future performance.
majority owned by Her Majesty the
Queen in Right of New Zealand, it is
bound by the requirements of the
Public Finance Act 1989.
These unaudited condensed
interim financial statements for the
six months ended 31 December 2019
have been prepared:
• using Generally Accepted
Accounting Practice (NZ GAAP) in
New Zealand, accounting policies
consistent with International
Financial Reporting Standards
(IFRS) and the New Zealand
equivalents (NZ IFRS) and in
accordance with IAS 34: Interim
Financial Reporting and NZ IAS
34: Interim Financial Reporting, as
appropriate for a for-profit entity;
• in accordance with the
requirements of the Financial
Markets Conduct
Act 2013;
• on the basis of historical cost,
modified by revaluation of certain
assets and liabilities; and
• in New Zealand dollars (NZD).
The principal functional currency
of international subsidiaries is
Australian dollars. The closing rate
at 31 December 2019 was 0.9596
(December 2018: 0.9529, 30 June
2019: 0.9571).
All values are rounded to millions ($M)
unless otherwise stated.
Accounting policies
The accounting policies, methods
of computation and classification
set out in the Group financial
statements for the year ended
30 June 2019 have been applied
consistently to all periods presented
in the condensed interim financial
statements, with the exception that
NZ IFRS 16 Leases has been adopted
during the current period.
NZ IFRS 16 was adopted using the
modified retrospective approach
and therefore no adjustment or
restatment of comparative figures
have been made.
The adoption of NZ IFRS 16 results
in those leases previously classified
as operating leases being recorded
on the balance sheet. All other
arrangements will be considered
under NZ IFRS 16 when the contract is
amended/renewed.
As a result of applying NZ IFRS 16,
the Group recognised $75m of new
right-of-use lease assets, which
form part of the Property Plant &
Equipment category on the balance
sheet. Lease assets are depreciated
over the expected lease term. The
expected lease term may including
the taking-up of optional lease
extensions, if the Group is reasonably
certain of exercising such options.
New liabilities of $75m were also
recognised. These are classified as
Lease Liabilities on the balance sheet
and split into current and non-current
portions. Expected lease payments
are discounted back to present
value using incremental borrowing
costs. Discount rates are set on a
lease-by-lease basis, with key inputs
being the expected term of the lease
and the currency of the lease (the
country in which it is domiciled).

In the income statement, application
of NZ IFRS 16 in HY20 has decreased
Group operating expenses by $3m,
increased finance costs by $1m and
increased depreciation expense by
$2m. These changes meant a net
increase in EBITDAF of $3m, but a
net nil impact to net profit before tax.
The application of further new or
amended standards has no material
impact on the amounts recognised
in the condensed interim financial
statements.
Judgements and estimates
The basis of key judgements and
estimates have not changed from
those used in preparing the financial
statements for the year ended 30
June 2019.
Basis of consolidation
The condensed interim Group
financial statements comprise the
financial statements of Meridian
Energy Limited and its subsidiaries
and controlled entities.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
7

Beneficial hydrology, strong
generation volumes, and high market
prices combined to deliver strong
energy margins with revenues from
generation production outweighing
the negative impacts seen in the cost
to supply contracted physical and
financial electricity sales.
NZAS
In October 2019, New Zealand
Aluminium Smelters (NZAS) notified
Meridian of its intent to commence
a strategic review of its business
at Tiwai Point. NZAS noted that it
expects to release details of the
result of this review in Q1 2020. NZAS
continues to be a major customer
of Meridian’s and all contractual
obligations continue unaffected
during the strategic review.
Due to the lack of certainty
surrounding the outcome of the NZAS
review, Meridian has not adjusted
any balance sheet items or valuations
which may be impacted by the NZAS
final decision.
Significant matters in
the six months
Non-GAAP measures
Meridian refers to non-GAAP financial
measures within these condensed
interim financial statements and
accompanying notes. The limited
use of non-GAAP measures is
intended to supplement GAAP
measures to provide readers with
further information to broaden their
understanding of Meridian’s financial
performance and position. They are
not a substitute for GAAP measures.
As these measures are not defined
by NZ GAAP, IFRS, or any other body
of accounting standards, Meridian’s
calculations may differ from similarly
titled measures presented by other
companies. The measures are
described below, including page
references for reconciliations to
the condensed interim financial
statements.
EBITDAF
Earnings before interest, tax,
depreciation, amortisation, change
in fair value of hedges and other
significant items.
EBITDAF is reported in the income
statement allowing the evaluation of
Meridian’s operating performance
without the non-cash impact of
depreciation, amortisation, fair value
movements of hedging instruments
and other one off and/or infrequently
occurring events as well as the effects
of Meridian’s capital structure and
tax position.
In this section.
This section outlines significant
matters which have impacted
Meridian’s financial performance
and an explanation of non-GAAP
measures used within the notes to
the condensed interim financial
statements.
This allows a better comparison of
operating performance with that of
other electricity industry companies
than GAAP measures that include
these items.
Energy margin
Energy margin provides a measure of
financial performance that, unlike total
revenue, accounts for the variability
of the wholesale electricity market
and the broadly offsetting impact of
the wholesale prices on the cost of
Meridian’s retail electricity purchases
and revenue from generation.
Meridian uses the measure of energy
margin within its segmental financial
performance in note A1 Segment
performance on page 10.
Net debt
Net debt is a metric commonly
used by investors as a measure
of Meridian’s indebtedness that
takes account of liquid financial
assets. Meridian uses this measure
within its capital management and
this is outlined in note C1 Capital
management on page 14.

Hydro inflows
The first half of the financial year
began with above-average lake
storage levels. Large weather
events in November and December
combined to drive storage levels
to above the maximum control
level at both Lake Tekapo and Lake
Pukaki and well into the high range
in the Waiau, with high generation
volumes and significant reservoir
and river spill occurring as a result.
Positive demand growth across
New Zealand has been supported
by strong growth in agricultural
pumping load. The robust NZ
demand growth and continuing
concerns about gas restrictions
combined with contracting
behaviours in the gas market saw
high wholesale prices persist.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
8

A1 Segment performance
The Chief Executive (the chief
operating decision-maker) monitors
the operating performance of each
segment for the purpose of making
decisions on resource allocation and
strategic direction.
The Chief Executive considers
the business according to the nature
of the products and services and the
location of operations, as set
out below:
New Zealand wholesale
• Generation of electricity and
its sale into the New Zealand
wholesale electricity market.
• Purchase of electricity from
the wholesale electricity market
and its sale to the New Zealand
Retail segment and to large
industrial customers, including
NZAS representing the equivalent
of 38% (31 December 2018:
40%) of Meridian’s New Zealand
generation production.
• Development of renewable
electricity generation opportunities
in New Zealand.

New Zealand retail
• Retailing of electricity and
complementary products through
two brands (Meridian and
Powershop) in New Zealand.
• Electricity sold to residential,
business and industrial customers
on fixed price variable volume
contracts is purchased from the
Wholesale segment at an average
annual fixed price of $77 - $82
per megawatt hour (MWh) and
electricity sold to business and
industrial customers on spot
(variable price) agreements is
purchased from the Wholesale
segment at prevailing wholesale
spot market prices.
• Agency margin from spot sales is
included within “Contracted sales,
net of distribution costs”.
• The transfer price is set in a
similar manner to transactions
with third parties.
• Powershop New Zealand provide
front line customer and back office
services for Powershop Australia.
Revenue of $2 million has been
recorded in ‘other revenue’ and is
eliminated on Group consolidation.

Australia
• Generation of electricity from
Meridian’s two wind farms,
three hydro power stations and
acquired under power purchase
agreements, for sale into the
Australian wholesale electricity
market.
• Retailing of energy, mainly through
the Powershop brand
in Australia.
• Development of renewable
electricity generation options
in Australia.
Other and unallocated
• Other operations, that are not
considered reportable segments,
including licensing of the Flux
developed electricity and gas
retailing platform.
• Activities and centrally based costs
that are not directly allocated to
other segments.
The financial performance of the
operating segments is assessed using
energy margin and EBITDAF (see page
8 for a definition of these measures)
before unallocated central corporate
expenses. Balance sheet items are not
reported to the Chief Executive at an
operating segment level.
Financial
performance
In this section.
This section explains the financial
performance of Meridian, providing
additional information about
individual items in the income
statement, including:
a. accounting policies, judgements
and estimates that are relevant
for understanding items
recognised in the income
statement; and
b. analysis of Meridian’s
performance for the 6 months
by reference to key areas
including: performance by
operating segment, revenue,
expenses and taxation.
A
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
9

A1 Segment performance continued
For the six months to 31 December
NZ Wholesale NZ Retail Australia Other and Unallocated Inter-segment Group
2019
$M
2018
$M
2019
$M
2018
$M
2019
$M
2018
$M
2019
$M
2018
$M
2019
$M
2018
$M
2019
$M
2018
$M
Contracted sales, net of distribution costs 246 249 391 312 97 70 - - - - 734 631
Cost to supply customers (842) (1,005) (298) (233) (79) (60) - - 343 296 (876) (1,002)
Net cost of acquired generation 32 76 - - (2) (4) - - - - 30 72
Generation spot revenue 727 812 - - 49 60 - - - - 776 872
Inter-segment electricity sales 343 296 - - - - - - (343) (296) - -
Virtual asset swap margins 3 6 - - - - - - - - 3 6
Other market revenue/(costs) (4) (4) - 1 - - - - - - (4) (3)
Energy margin 505 430 93 80 65 66 - - - - 663 576
Other revenue 1 2 6 6 2 1 15 13 (11) (9) 13 13
Dividend revenue------27-(27)- - -
Energy transmission expense (65) (63) - - (3) (2) - - - - (68) (65)
Gross margin 441 369 99 86 64 65 42 13 (38) (9) 608 524
Employee expenses (16) (14) (16) (16) (6) (6) (15) (13) - - (53) (49)
Electricity metering expenses - - (17) (16) - - - - - - (17) (16)
Other operating expenses (32) (30) (17) (17) (19) (18) (11) (10) 6 5 (73) (70)
EBITDAF 393 325 49 37 39 41 16 (10) (32) (4) 465 389
Depreciation and amortisation---------- (157) (137)
Net change in fair value of electricity and other
hedges
---------- (6) 20
Operating profit---------- 302 272
Finance costs---------- (43) (43)
Net change in fair value of treasury instruments---------- 6 (15)
Net profit before tax---------- 265 214
Income tax expense ---------- (74) (62)
Net profit after tax---------- 191 152
Reconciliation of energy margin
Electricity sales revenue 1,211 1,187 729 639 170 148 - - (343) (296) 1,767 1,678
Electricity expenses, net of hedging (706) (757) (349) (306) (65) (49) - - 343 296 (777) (816)
Electricity distribution expenses - - (287) (253) (40) (33) - - - - (327) (286)
Energy margin 505 430 93 80 65 66 - - - - 663 576
A
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
10

Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
11
A2 Income
Six months ended 31 December
UnauditedUnaudited
Operating revenue
2019
$M
2018
$M
Electricity sales to customers 997 875
Electricity generation, net of hedging 770 803
Electricity related services revenue 4 4
Other revenue 9 9
1,780 1,691
Total revenue by geographic area
New Zealand 1,603
1,535
Australia 172
150
United Kingdom 5
6
Total operating revenue 1,780 1,691
A
Operating revenue
Electricity sales to customers
Revenue received or receivable from
residential, business and industrial
customers. This revenue is influenced
by customer contract sales prices and
their demand for electricity.
Electricity generation, net of hedging
Revenue received from:
• electricity generated and sold into
the wholesale markets; and
• the net settlement of electricity
hedges sold on electricity futures
markets, and to generators,
retailers and industrial customers.
This revenue is influenced by
the quantity of generation and
the wholesale spot price and is
recognised at the time of generation
or hedge settlement.

A3 Expenses
Six months ended 31 December
UnauditedUnaudited
Operating expenses
2019
$M
2018
$M
Electricity expenses, net of hedging
777 816
Electricity distribution expenses
327 286
Electricity transmission expenses
68 65
Employee expenses
53 49
Electricity metering expense
17 16
Other expenses
73 70
1,315 1,302
Finance costs
Interest on borrowings 39 39
Interest on option premium 1 1
Interest on lease liabilities 3 3
43 43
A4 Taxation
Income tax expense
UnauditedUnaudited
Income tax expense
2019
$M
2018
$M
Current income tax charge 98 76
Deferred tax (24) (14)
Income tax expense 74 62
Reconciliation to profit before tax
Profit before tax 265 214
Income tax at applicable rates 74 60
Expenditure not deductible for tax - 2
Income tax expense 74 62
A
Electricity expenses, net of hedging
The cost of:
• electricity purchased from
wholesale markets to supply
customers;
• the net settlement of buy-side
electricity hedges; and
• related charges and services.
Electricity expenses are influenced
by quantity and timing of customer
consumption and the wholesale
spot price.
Electricity distribution expenses
The cost of distribution companies
transporting electricity between the
national grid and customers’ properties.
Electricity transmission expenses
Meridian’s share of the cost of the
high voltage direct current (HVDC)
link between the North and South
Islands of New Zealand and the cost of
connecting Meridian’s generation sites
to the national grid by grid providers
Employee expenses
Provision is made for benefits owing
to employees in respect of wages and
salaries, annual leave, long service
leave and employee incentives for
services rendered. Provisions are
recognised when it is probable they
will be settled and can be measured
reliably. They are carried at the
remuneration rate expected to apply
at the time of settlement.
Income tax expense
Income tax expense is the income
tax assessed on taxable profit for
the period. Taxable profit differs
from profit before tax reported in
the income statement as it excludes
items of income and expense that
are taxable or deductible in other
periods and also excludes items that
will never be taxable or deductible.
Meridian’s liability for current tax
is calculated using tax rates that
have been enacted or substantively
enacted at balance date, being 28%
for New Zealand and 30%
for Australia.
Income tax expense components are
current income tax and deferred tax.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
12

B1 Property, plant and equipment
UnauditedUnauditedAudited
Position as at
31 Dec 2019
$M
31 Dec 2018
$M
30 Jun 2019
$M
Opening net book value 8,825 7,9 4 1 7,9 4 1
Additions 22 19 39
Derecognition of Mt Mercer leases- - (11)
Lease assets recognised under NZ IFRS 16 75 - -
Foreign currency exchange rate movements (1) (26) (28)
Generation structures and plant revaluation:
- revaluation reserve - - 1,139
- income statement - - (5)
Depreciation expense(145) (125) (250)
Closing net book value 8,776 7, 8 0 9 8,825
B2 Intangible assets
UnauditedUnauditedAudited
Position as at
31 Dec 2019
$M
31 Dec 2018
$M
30 Jun 2019
$M
Opening net book value 59 60 60
Additions11 11 25
Amortisation expense(12) (12) (25)
Closing net book value 58 59 60
In this section.
This section shows the assets
Meridian uses in the production
and sale of electricity to generate
operating revenues. In this section
of the summary notes there is
information about:
a. property, plant and
equipment, and
b. intangible assets
Assets used to
generate and
sell electricity
B
Recognition and measurement
Generation structures and plant assets
(including land and buildings) are
held on the balance sheet at their fair
value at the date of revaluation, less
any subsequent depreciation and
impairment losses. All other property,
plant and equipment are stated
at historical cost less accumulated
depreciation and any accumulated
impairment losses.
Fair value and revaluation of
generation structures and plant
Meridian engaged an independent
valuer to assess its generation
structures and plant assets at 30
June 2019 using capitalisation of
earnings and discounted cashflows
(DCFs) when determining a valuation
range. The review resulted in a
net revaluation increase of $657m
(after the reversal of depreciation)
in the carrying value of generation
structures and plant assets. The
impact of the revaluation was
recognised as an increase of $819m
(net of deferred tax) in the revaluation
reserve and as a $5m impairment
of Australian generation assets
recognised in the Income Statement.
A review and assessment of key
valuation inputs included in that
valuation has been undertaken as
at 31 December 2019, indicating that
there has been no material change in
fair value.
Right-of-Use Assets
As part of the implementation of NZ
IFRS 16, the Group has recognised
$75m of new right-of-use assets in the
current period. Right-of-use assets
relate to office space and land access.
As at 31 December 2019, total cost
of right-of-use assets is $110m
(this includes finance lease assets
previously recognised under NZ
IAS 17). Accumulated depreciation
on these assets totals $11m (which
includes depreciation previously
accumulated under NZ IAS 17).
Net book value is therefore $99m.
Depreciation expense on right-of-use
assets for the current period is $3m.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
13

C1 Capital management
Capital risk management objectives
Meridian’s objective when managing
capital is to provide appropriate
returns to shareholders whilst
maintaining a capital structure that
safeguards its ability to remain a
going concern and optimises the cost
of capital. Capital is defined as the
combination of shareholders’ equity,
reserves and net debt.
Meridian manages its capital through
various means, including:
• adjusting the amount of dividends
paid to shareholders;
• raising or returning capital; and
• raising or repaying debt.
Meridian regularly monitors its capital
requirements using various measures
that consider debt facility financial
covenants and credit ratings. The key
measures being net debt to EBITDAF
and interest cover. The principal
external measure is Meridian’s credit
rating from Standard & Poor’s.
Meridian is in full compliance with
debt facility financial covenants.
UnauditedUnauditedAudited
Position as at
Note
31 Dec 2019
$M
31 Dec 2018
$M
30 Jun 2019
$M
Share capital 1,599 1,5981,599
Retained earnings(1,317) (1,150) (1,171)
Other reserves 5,030 4,216 5,029
5,312 4,664 5,457
Drawn borrowingsC4 1,461 1,505 1 ,376
add Lease liabilities 106 46 32
less: Cash and cash equivalents (55) (78) (78)
1,512 1,473 1,330
Net capital 6,824 6,137 6,787
In this section.
This section explains how Meridian
manages its capital structure and
working capital, the various funding
sources, and how dividends are
returned to shareholders. In this
section of the summary notes there
is information about:
a. equity and dividends: and
b. net debt.
Managing
funding
C
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
14

C2 Earnings per share
UnauditedUnaudited
Basic and diluted earnings per share (EPS)
31 Dec 201931 Dec 2018
Profit after tax attributable to shareholders of the parent company ($M) 191 152
Weighted average number of shares used in the calculation of EPS2,563,000,000 2,563,000,000
Basic and diluted EPS (cents per share) 7. 55.9
C3 Dividends
Six months ended 31 December
UnauditedUnaudited
Dividends declared and paid
2019
$M
2018
$M
Final ordinary and special dividend 2019: 13.16cps (2018: 11.38cps) 337 292
Total dividends paid 337 292
Dividends declared and not recognised as a liability
Interim ordinary dividend 2020: 5.7cps (2019: 5.7cps) 146 146
Interim special dividend 2020: 2.44cps (2019: 2.44cps) 63 63
C
Dividend policy
Meridian’s dividend policy considers
free cash flow, working capital
requirements, the medium-term
investment programme, maintaining a
BBB+ credit rating and risks from short
and medium-term economic, market
and hydrology conditions.
Subsequent event - dividend
declared
On 25 February 2020 the Board
declared a partially imputed interim
ordinary dividend of 5.7 cents per
share. Additionally the Board declared
an un-imputed special dividend of
2.44 cents per share.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
15

UnauditedUnauditedAudited
Position as at31 Dec 201931 Dec 201830 Jun 2019
Group (NZ$M)
Currency
borrowed in
Drawn
facility
amount
Transaction
costs
Fair value
adjustment
Carrying
amount
Drawn
facility
amount
Transaction
costs
Fair value
adjustment
Carrying
amount
Drawn
facility
amount
Transaction
costs
Fair value
adjustment
Carrying
amount
Current borrowings
Unsecured borrowings NZD 184 (1) - 183 233 (1) - 232 168 (1) - 167
Unsecured borrowings USD - - - - 272 - 8 280 - - - -
Total current borrowings 184 (1) - 183 505 (1) 8 512 168 (1) - 167
Non-current borrowings
Unsecured borrowings NZD 679 (2) - 677 840 (2) - 838 610 (2) - 608
Unsecured borrowings USD 598 (1) 100 697 160 - 51 211 598 (1) 98 695
Total non-current borrowings 1,277 (3) 100 1,374 1,000 (2) 51 1,049 1,208 (3) 98 1,303
Total borrowings 1,461 (4) 100 1,557 1,505 (3) 59 1,561 1,376 (4) 98 1,470
C4 Borrowings
C
Meridian has committed bank
facilities of $665 million of which $525
million were undrawn at 31 December
2019 (31 December 2018: faciliities
of $725m of which $300m were
undrawn). The expiry of these facilities
range from June 2020 to April 2026.
Borrowings, measurement
and recognition
Borrowings are recognised initially
at the fair value of the drawn facility
amount (net of transaction costs
paid) and are subsequently stated
at amortised cost using the effective
interest method. Any borrowings
which have been designated as
hedged items (USD borrowings)
are carried at amortised cost plus a
fair value adjustment under hedge
accounting requirements. Any
borrowings denominated in foreign
currencies are retranslated to the
functional currency at each reporting
date. Any retranslation effect is
included in the "Fair value adjustment"
column in the above movement table.
Meridian uses cross currency interest
rate swap (CCIRS) hedge contracts to
manage its exposure to interest rates
and borrowings sourced in currencies
different to that of the borrowing
entity's reporting currency.
Fair value of borrowings held at amortised cost
UnauditedAuditedUnauditedAudited
Position as at
31 Dec
2019
$M
31 Dec
2018
$M
30 Jun
2019
$M
31 Dec
2019
$M
31 Dec
2018
$M
30 Jun
2019
$M
Group (NZ$M)
Carrying valueFair value
Retail bonds 500 500 500 541 523 542
Floating rate notes 50 100 100 51 101 101
Unsecured term loan (EKF facility) 65 75 70 69 80 75
Within term borrowings there are longer
dated, fixed-interest-rate instruments which
are not in hedge accounting relationships.
The carrying values and estimated fair
values of these instruments are noted in
the table above.

Fair value is calculated using a discounted
cash flow calculation and the resultant
values are classified as Level 2 within the fair
value hierarchy. The Retail Bonds are listed
instruments; however, a lack of liquidity
on the NZX precludes them from being
classified as Level 1 (a definition of levels
is included in D1 Financial instruments) on
page 18.
Carrying value approximates fair value for all
other instruments within term borrowings.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
16

Unaudited
31 Dec 2019
Group (NZ$M)
Balance at
30 June
2019
Term
borrowings
drawn
Term
borrowings
repaid
Fair value
adjustments
Foreign
Exchange
Transaction
costs paid &
accrued
Lease
liabilities
recognised
Lease
liabilities
paid
Lease
derecognition
Unwind of
discounting
Balance at
31 Dec 2019
Unsecured borrowings - NZD 775 141 (55) - - - - - - - 861
Unsecured borrowings - USD 695 - - 3 (2) - - - - - 696
Lease Liabilities 32 - - - - - 75 (4) - 3 106
Total 1,502 141 (55) 3 (2) - 75 (4) - 3 1,663
Audited
30 June 2019
Group (NZ$M)
Balance at
30 June
2018
Term
borrowings
drawn
Term
borrowings
repaid
Fair value
adjustments
Foreign
Exchange
Transaction
costs paid &
accrued
Lease
liabilities
recognised
Lease
liabilities
paid
Lease
derecognition
Unwind of
discounting
Balance at
30 June
2019
Unsecured borrowings - NZD 986 - (212) - - 1 - - - - 775
Unsecured borrowings - USD 487 439 (272) 37 5 (1) - - - - 695
Lease Liabilities 48 - - - (3) - - (1) (16) 4 32
Total 1,521 439 (484) 37 2 - - (1) (16) 4 1,502
Unaudited
31 Dec 2018
Group (NZ$M)
Balance at
30 June
2018
Term
borrowings
drawn
Term
borrowings
repaid
Fair value
adjustments
Foreign
Exchange
Transaction
costs paid &
accrued
Lease
liabilities
recognised
Lease
liabilities
paid
Lease
derecognition
Unwind of
discounting
Balance at
30 June
2018
Unsecured borrowings - NZD 986 89 (5) - - - - - - - 1,070
Unsecured borrowings - USD 487 - - (10) 14 - - - - - 491
Lease Liabilities 48 - - - (3) - - - - 1 46
Total 1,521 89 (5) (10) 11 - - - - 1 1,607
Reconciliation of liabilities arising from financing activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes.
$75m in new lease liabilities were recognised following implementation of NZ IFRS 16 and are noted in the column “Lease liabilities recognised”.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
17

D1 Financial instruments
Fair value of hedging financial
instruments
The recognition and measurement
of hedging financial instruments
requires management estimation
and judgement (this is discussed in
further detail later in this note). These
estimates can have a significant risk of
material adjustment in future periods.
D
Financial
instruments
In this section.
In this section of the summary notes
there is information:
a. analysing financial (hedging)
instruments used to manage
risk; and
b. outlining Meridian’s fair value
techniques and key inputs.
Fair value on the balance sheet
Fair value movements in the
income statement
UnauditedAuditedUnaudited
31 Dec 201931 Dec 201830 Jun 201931 Dec 201931 Dec 2018
Level
Assets
$M
Liabilities
$M
Assets
$M
Liabilities
$M
Assets
$M
Liabilities
$M$M$M
Treasury Hedges
Cross currency interest rate swap (CCIRS) -
interest rate risk
243-5-40---
CCIRS - basis and margin risk2(3)-(1)-(6)---
CCIRS - foreign exchange risk255-55-58---
Total CC IRS95-59-92---
Interest rate swaps (IRS)220(176)16(130)22(184)6(15)
Total Treasury Hedges115(176)75(130)114(184)6(15)
Electricity and other hedges
Market traded electricity hedges176(3)31(8)52(3)144
Other electricity hedges352(64)27(59)51(58)(8)6
Electricity options363-82-70-(7)(4)
Large scale generation certificates (LGC) -
Holdings created from wind farm generation
116-23-6-(2)(13)
LGC - forward and option contracts216(3)30(6)16-(3)27
Electricity and other hedges 223(70)193(73)195(61)(6)20
Total hedges338(246)268(203)309(245)-5
Fair value measurements are grouped
within a three-level fair value hierarchy
based on the observability of valuation
inputs (described below).
• Level 1 Inputs - Quoted prices
(unadjusted) in active markets
for identical assets or liabilities
that the entity can access at the
measurement date.
• Level 2 Inputs - Either directly (i.e.
as prices) or indirectly (i.e. derived
from prices) observable inputs
other than quoted prices included
in Level 1.
• Level 3 Inputs - Inputs for the
asset or liability that are not
based on observable market data
(unobservable inputs).
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
18

Settlements
The following provides a summary of the settlements through EBITDAF for financial instruments:
UnauditedUnaudited
20192018
$M
Electricity
Hedges LGCs
Electricity
Options Total
Electricity
Hedges LGCs
Electricity
Options Total
Operating revenue(13) 14 - 1 (64) 22 - (42)
Operating expenses 48 (7) - 41 96 (6) 9 99
Total settlements in EBITDAF 35 7 - 42 32 16 9 57
Level 3 financial instrument analysis
The following provides a summary of the movements through EBITDAF and movements in the fair value of level three financial instruments:
UnauditedUnaudited
20192018
$M
Electricity
Hedges
Electricity
Options Total
Electricity
Hedges
Electricity
Options Total
Electricity and other hedges settled in EBITDAF:
Operating revenue(17)-(17)(39)-(39)
Operating expenses53-531039112
Total settlements in EBITDAF36-3664973
Net change in fair value of electricity and other hedges:
Remeasurement28(7)2171475
Hedges settled(36)-(36)(64)(9)(73)
Total net change in fair value of electricity and other hedges (8)(7)(15)7(5)2
Balance at the beginning of the period(4)7066(39)8748
Fair value movements(8)(7)(15)7(5)2
Balance at the end of the year(12)6351(32)8250
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
19

D1 Financial instruments continued
Fair value technique and key inputs
In estimating the fair value of
an asset or liability, Meridian uses
market-observable data to the
extent that it is available. The
Audit and Risk Committee of
Meridian determines the overall
appropriateness of key valuation
techniques and inputs for fair value
measurement. The Chief Financial
Officer explains fair value movements
in his report to the Board.
The table below describes the additional key inputs and techniques used in the valuation of
level 2 and 3 financial instruments:
Financial asset or liability Description of input
Range of significant
unobservable inputsRelationship of input to fair value
Electricity hedges and options,
valued using DCFs
Price, where quoted prices are not
available or not relevant (i.e. for
long dated contracts), Meridian’s
best estimate of long-term forward
wholesale electricity price is used.
This is based on a fundamental
analysis of expected demand and
the cost of new supply and any other
relevant wholesale market factors.

Calibration factors, which are applied
to forward curves as a consequence
of initial recognition differences
(see table on page 21).
$47/MWh to $112/MWh
(in real terms), excludes observable
ASX prices.
An increase in forward wholesale
electricity price increases the fair value
of buy hedges and decreases the fair
value of sell hedges. A decrease in
forward wholesale electricity price has
the opposite effect.
LGC forward contracts and options,
valued using DCFs/Black-Scholes
Price, based on a forward LGC
price curve from a third-party
broker and benchmarked against
market spot prices.
A$15 - A$39 An increase in the forward LGC
price decreases the fair value of
sell hedges and increases the fair
value of buy hedges. A decrease in
forward LGC prices has the
opposite effect.
Where the fair value of a financial
instrument is calculated as the present
value of the estimated future cash
flows of the instrument (DCFs), a
number of inputs and assumptions
are used by the valuation technique.
These are:
• forward price curves referenced to
the ASX for electricity, published
market interest rates and published
forward foreign exchange rates;
• Meridian’s best estimate of
electricity volumes called over the
life of electricity options;
• discount rates based on the
forward IRS curve adjusted for
counterparty risk;
• calibration factor applied
to forward price curves as a
consequence of initial recognition
differences;
• NZAS continues to operate; and
• contracts run their full term.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
20

Initial recognition difference
An initial recognition difference
arises when the modelled value of
an electricity hedge differs from the
transaction price (which is the best
evidence of fair value). This difference
is accounted for by recalibrating the
valuation model by a fixed percentage
to result in a value at inception equal to
the transaction price. This recalibration
is then applied to future valuations
over the life of the contract.
The resulting difference shown in the
table reflects potential future gains
or losses yet to be recognised in the
income statement over the remaining
life of the contract.
D1 Financial instruments continued
Movements in recalibration differences arising from electricity hedging

UnauditedUnauditedAudited
31 Dec 2019
$M
31 Dec 2018
$M
30 Jun 2019
$M
Opening difference
(3) 5 5
Initial differences on new hedges(1) (6) (7)
Volumes expired and amortised 1 (1) (1)
Closing difference(3) (2) (3)
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
21

E1 Group structure
No changes occurred to Meridian's
Group structure in the six months to
31 December 2019.
E2 Contingent assets
and liabilities
The Ministry of Business, Innovation
and Employment's (MBIE) review
of Meridian's approach to the
application of amounts under the
Holidays Act (2003) remains on going.
The review has identified a potential
issue with a specific point of law.
Meridian and MBIE are intending
to jointly seek legal clarification and
depending on the outcome, there is
a potential underpayment ranging
between $3m and $4m.
E
Group structure
and other
The Electricity Authority is currently
reviewing an Undesirable Trading
Situation (UTS) claim made in respect
of market conditions over November
and December.  While Meridian’s
view is the claim is without merit, if
the Authority disagrees and decides
to reset prices for the relevant period
there is a potential reduction in
Meridian’s 1H FY2020 revenue.  The
scale of reduction would be for the
Authority to decide and we have
made no provision for this outcome.
There were no other contingent assets
or liabilities at 31 December 2019 (31
Dec 2018: nil, 30 Jun 2019: nil).
E3 Subsequent events
There were no other subsequent
events other than dividends declared
on 25 February 2020. Refer to Note
C3 Dividends for further details.
E4 Changes in financial
reporting standards
This is the first reporting period
Meridian has reported under NZ IFRS
16 Leases.
Meridian is not aware of any standards
in issue but not yet effective (other
than those listed below) which
would materially impact on the
amounts recognised or disclosed in
the financial statements. Meridian
intends to adopt when they become
mandatory.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
22

Independent Review Report to the
To the Shareholders of Meridian Energy Limited
We have reviewed the condensed
interim financial statements of
Meridian Energy Limited and its
subsidiaries (‘the Group’) which
comprise the balance sheet as at
31 December 2019, and the income
statement, comprehensive income
statement, statement of changes in
equity and statement of cash flows
for the six month period ended on
that date, and other explanatory
information on pages 2 to 22.
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’s
shareholders as a body, for our
engagement, for this report, or for the
opinions we have formed.
Board of Directors’ Responsibilities
The Board of Directors are responsible
on behalf of the Group for the
preparation and fair presentation
of the condensed interim financial
statements, in accordance with NZ
IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting and
for such internal control as the Board
of Directors determine is necessary
to enable the preparation and fair
presentation of the condensed
interim financial statements that are
free from material misstatement,
whether due to fraud or error.
The Board of Directors are also
responsible for the publication of
the condensed interim financial
statements, whether in printed or
electronic form.
Our Responsibilities
The Auditor-General is the auditor of
the Group pursuant to section 5(1)(f)
and section 14 of the Public Audit Act
2001. Pursuant to section 32 of the
Public Audit Act 2001, the Auditor-
General has appointed Mike Hoshek
of Deloitte Limited to carry out an
annual audit of the Group.
Our responsibility is to express a
conclusion on the condensed interim
financial statements based on our
review. We conducted our review in
accordance with NZ SRE 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 condensed
interim financial statements, taken as a
whole, are not prepared, in all material
respects, in accordance with NZ IAS
34 Interim Financial Reporting and IAS
34 Interim Financial Reporting. As the
auditor of Meridian Energy Limited,
NZ SRE 2410 requires that we comply
with the ethical requirements relevant
to the audit of the annual financial
statements.
A review of the condensed 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
these financial statements.
In addition to this review and the
audit of the Group annual financial
statements, we have carried out
other assurance assignments for the
Group in the areas of greenhouse gas
inventory and sustainability reporting
assurance , audit of the securities
registers, vesting of the executive
long-term incentive plan, the solvency
return of Meridian Captive Insurance
Limited and supervisor reporting,
which are compatible with the
independence requirements of the
Auditor-General, which incorporate
the independence requirements of
the External Reporting Board.
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
23

These services have not impaired
our independence as auditor of
the Group. In addition, principals
and employees of our firm deal
with the Group on arm’s length
terms within the ordinary course
of trading activities 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 condensed interim
financial statements of the Group
do not present fairly, in all material
respects, the financial position of the
Group as at 31 December 2019 and its
financial performance and cash flows
for the six month period ended on
that date in accordance with NZ IAS
34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting.
Mike Hoshek
for Deloitte Limited
On behalf of the Auditor-General
25 February 2020
CHRISTCHURCH, NEW ZEALAND
Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
24
This review report relates to the unaudited
condensed interim financial statements of
Meridian Energy for the six months ended
31 December 2019 included on Meridian
Energy’s website.
The Board of Directors are responsible for the
maintenance and integrity of Meridian Energy’s
website. We have not been engaged to report
on the integrity of Meridian Energy’s website.
We accept no responsibility for any changes that
may have occurred to the unaudited condensed
interim financial statements since they were
initially presented on the website.
The review report refers only to the unaudited
condensed interim financial statements
named above. It does not provide an opinion
on any other information which may have
been hyperlinked to/from these unaudited
condensed interim financial statements.
If readers of this report are concerned with
the inherent risks arising from electronic
data communication they should refer to
the published hard copy of the unaudited
condensed interim financial statements and
related review report dated 25 February
2020 to confirm the information included in
the unaudited condensed interim financial
statements presented on this website.
Legislation in New Zealand governing the
preparation and dissemination of financial
statements may differ from legislation in
other jurisdictions.

Group financial statements for the six months ended 31 December 2019
Meridian Energy Limited
25

---

2020 Interim Results
Presentation
26 FEBRUARY 2020

2020 INTERIM RESULTS PRESENTATION
2
26 FEBRUARY 2020
Progress on strategy

2020 INTERIM RESULTS PRESENTATION
3
26 FEBRUARY 2020
Progress on strategy

4
Financial performance
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

5
Dividends
Interim ordinary dividend declared of 5.70 cps,
86% imputed, unchanged from 1H FY19
Capital management interim special dividend
of 2.44 cps, unimputed
Capital management distributions to $625M
since the programmebegan in August 2015
Ordinary dividend and capital management
update later in 2020
Dividendsdeclared1H FY201H FY19
centsper shareimputationcentsper shareimputation
Ordinary dividends5.7086%5.7086%
Capitalmanagement special dividends2.440%2.440%
Total8.148.14
Source: Meridian
2020 INTERIM RESULTS PRESENTATION
5.10
5.33
5.38
5.705.70
2.44
2.44
2.44
2.442.44
7.54
7.77
7.82
8.148.14
0
1
2
3
4
5
6
7
8
9
10
20152016201720182019
CPS
Six Months ended 31 December
Interim dividend declared
Ordinary dividendSpecial dividendTotal
26 FEBRUARY 2020

598
510
+30
+49
+8
-85
+92
-67
+65
-3
-1
300
400
500
600
700
Energy
Margin 31
Dec 18
Res, SMB,
Agi sales
C&I salesNZAS salesGeneration
spot
revenue
Cost to
supply
customers
Derivative
sales and
purchases
Cost of
derivative
sales and
purchases
Net VASOtherEnergy
Margin 31
Dec 19
$M
New Zealand energy margin movement
6
New Zealand energy margin
Customer and sales volume growth across all
segments
Mass market average price flat, upward price
pressure in corporate
Financial contract, spot generation and
hedging revenues all reflected lower
wholesale prices
Those lower prices also reduced costs in the
portfolio
Higher net physical and lower net financial
positions
Refer to pages 38-39 for a further breakdown of New Zealand energy margin
Source: Meridian
2020 INTERIM RESULTS PRESENTATION
Physical
+$94M
Financial
-$5M
26 FEBRUARY 2020

New Zealand customers
5% sales volume growth in residential and
10% in small medium business while
maintaining average sales price
Residential, business, agr
i revenue increased
$30M (13%)
39% growth in corporate sales volume at a
13%
higher average sales price
Corporate sales revenue increased $49M
(
57%)
Powershopw
as the top ranked electricity
provider in Consumer NZ’s annual survey
Meridian was the top ranked large retailer
Customersales
Customer numbers
(ICPs)
Sales volume
(GWh)
Average price
($/MWh)
1H FY20
Residential205,712801
Small medium business42,308546
Agricultural40,661592
Large business21,605248
Total Residential/SMB310,2862,187$116
Corporate3,3131,474$93
1H FY19
Residential198,740762
Small medium business38,781496
Agricultural37,978455
Large business18,658223
Total Residential/SMB294,1571,936$116
Corporate2,4261,063$82
7
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

57
44
93
124
101
0
50
100
150
20152016201720182019
$/MWh
Six Months ended 31 December
NZ average generation price
New Zealand generation
Record levels of hydro and wind generation
for a first half financial year
Major flood event in early December 2019
l
ifted Meridian’s 1H FY20 inflows to 136% of
average
Some moderation in wholesale prices during
1H
FY20, concerns around gas supply remain
Major outages on the HVDC between January
and A
pril 2020 for reconductoring and
replacement works
Meridian’s North Island position managed
t
hrough wind generation and financial
contracting
Actual level of HVDC transfer depends on
N
orth Island reserve availability and pricing
Source: Meridian
8
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
Source: Transpower
0
200
400
600
800
1,000
1,200
1,400
1
Jan
8
Jan
15
Jan
22
Jan
29
Jan
5
Feb
12
Feb
19
Feb
26
Feb
4
Mar
11
Mar
18
Mar
25
Mar
1
Apr
8
Apr
15
Apr
22
Apr
29
Apr
MW
2020 HVDC capacity
Pole 2 Out
DC Max:
780MW
Earth Electrode
Out
DC Max:
400MW
Pole 3 Out
DC Max:
500MW
today

9
Australian customers
Electricity and gas customer growth in all
states and white label channels
Reported average electricity sales price
decline reflects higher amounts paid to
customers for solar export
Average gas sales price decline reflects
competitive repositioning
PowershopAustralia winner of Roy Morgan’s
Electricity Provider of the Year
Source: Meridian
2020 INTERIM RESULTS PRESENTATION
-500
500
1,500
2,500
3,500
4,500
5,500
Jan-17Jun-17Nov-17Apr-18Sep-18Feb-19Jul-19Dec-
Powershop Australia net customer changes
electricitygas
26 FEBRUARY 2020

65
66
+6
+10
-11
-12
+19
-13
0
10
20
30
40
50
60
70
80
90
Energy
Margin 31
Dec 18
Electricity
sales
Gas salesGeneration
spot revenue
Cost to
supply
customers
Derivative
sales and
purchases
Cost of
derivative
sales and
purchases
Energy
Margin 31
Dec 19
$NZ M
Australian energy margin movement
10
Australian energy margin
Electricity and gas sales have lifted physical
margin
Drought conditions and wind farm availability
impacted total generation, 13% lower than 1H
FY19
Higher net financial position
Physical
-$7M
Financial
+$6M
Refer to page 40 for a further breakdown of Australian energy margin
Source: Meridian
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

48
50
25
20
44
49
24
18
0
10
20
30
40
50
60
NZ WholesaleNZ RetailAustraliaOther
$M
Six Months ended 31 December
Operating costs
20192018
11
Operating costs
Operating costs 6% higher in 1H FY20
Ōhaurefurbishment programme expanded,
now $75M (multi-year opexand capex) and
allows a 10-year deferral of other works
Growth in Flux UK spend, revenue recovery
FY20 operating costs expected at the top of
the $280M to $286M range previously
indicated
FY20 capex expected at the lower end of the
$70M to $80M range previously indicated
IFRS 16 reduction in full year FY20 operating
costs of $6M (compared to FY19)
Offsetting increase in lease costs and
depreciation (below EBITDAF)
Source: Meridian
Total 31 December 2019
$143m
Total 31 December 2018
$135m
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

465
389
+88
-1
-3
-8
200
300
400
500
EBITDAF 31
Dec 18
NZ energy
margin
Aus energy
margin
Other revenueTransmission
expenses
Operating
expenses
EBITDAF 31
Dec 19
$M
Group EBITDAF movement
12
EBITDAF
Record level of 1H FY20 EBITDAF
1
, +20% on
1H FY19 supported by higher customer sales
Higher asset maintenance/refurbishment costs
and lower Australian generation
Transmission costs include $5M Clutha Upper
Waitaki Lines Project support
Lower 2H FY20 wholesale prices and HVDC
outages will weigh on NZ earnings run rate
Source: Meridian
2020 INTERIM RESULTS PRESENTATION
332
354
329
389
465
318
303
337
449
650
657
666
838
0
200
400
600
800
1,000
20162017201820192020
$M
Financial Year ended 30 June
Group EBITDAF
InterimFinal half-yearTotal
Source: Meridian
26 FEBRUARY 2020
1
Earnings before interest, tax, depreciation, amortisation,
changes in fair value of hedges and other significant items
0

122
131
104
144
184
111
90
102
189
233
221
206
333
0
100
200
300
400
20162017201820192020
$M
Financial Year ended 30 June
Underlying npat
InterimFinal half-yearTotal
13
Below EBITDAF
1
Net profit before tax
2
Net profit after tax adjusted for the effects of non-cash fair value movements and other one-off items
Source: Meridian
15% increase in depreciation from June 2019
revaluation (+$1B)
$6M decrease in NPBT
1
from fair value of
electricity hedges from changing forward
electricity prices ($20M increase in 1H FY19)
$6M increase in NPBT from fair value of
treasury instruments ($15M decrease in 1H
FY19)
Significant 1H FY20 increases in NPAT
(+26%) and Underlying NPAT
2
(+28%)
Net debt EBITDAF stable at 1.7 times
IFRS 16 now adopted, no restatement of
comparatives, $6M full year EBITDAF
increase
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

14
Markets and regulation
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

90
100
110
120
130
0
20
40
60
80
100
120
140
160
180
200
1-Dec-1915-Dec-1929-Dec-1912-Jan-2026-Jan-20
GWh
$/MWh
Spot wholesale prices and demand
National demandOtahuhuBenmore
15
New Zealand wholesale prices
Wholesale electricity market continues to price
in gas supply concerns
Notably OMV’s January 2020 announcement
of further, unplanned issues with Pohokura
supply
Early December 2019 inflow event required
significant flood management in both
catchments
Late December 2019 to early January 2020
wholesale price declines in line with Christmas
demand reduction
Some price separation since commencement
of HVDC outages, most notable in February
2020
Source: Electricity Authority, Meridian
2020 INTERIM RESULTS PRESENTATION
HVDC outage
commenced
26 FEBRUARY 2020
60
100
140
180
220
Q3
2018
Q1
2019
Q3
2019
Q1
2020
Q3
2020
Q1
2021
Q3
2021
Q1
2022
Q3
2022
Q1
2023
Q3
2023
$/MWh
Otahuhu ASX futures price settment
31 August 201831 January 2020actual since September 2018
Source: ASX

16
New Zealand demand
Demand growth of 1.3% in 2019
Continuing trend of annual increases in
demand (excluding agricultural)
Agricultural load (2.5TWh) reasonably flat
annual consumption with variable seasonal
usage
Tighter demand supply balance and higher
wholesale prices are encouraging new
generation to market
Source: Ministry of Business, Innovation and Employment
2020 INTERIM RESULTS PRESENTATION
37.2
37.6
37.3
37.0
37.2
37.7
35
36
37
38
39
Sep-14Sep-15Sep-16Sep-17Sep-18Sep-19
TWh
Annual electricity consumption (excl. agri)
26 FEBRUARY 2020

17
Renewable development
Harapakiwindfarm investment decision
expected by the middle of 2020
Access to lower Lake Pukakistorage (to
513.0m), providing 367GWh of additional
storage
Early stage development licenses purchased
for a new 115MW wind farm in northern NSW
Hume 20MW battery storage proposal in
development
Source: Ministry of Business, Innovation and Employment
2020 INTERIM RESULTS PRESENTATION
26 FEBRUARY 2020

EPR
Final Report of the Electricity Price Review
and Government’s response released in
October 2019
Government will progress almost all the 32
r
ecommendations
TPM
Submissions and cross submissions heard
during Q4 2019
Further supplementary consultation in Q1
2020,
including prudent discounts
Final decision on the EA’s TPM guidelines
ex
pected in Q2 2020
18
New Zealand policy and regulation
2020 INTERIM RESULTS PRESENTATION
Electricity Price Review key recommendations
within 3
months
within 12
months
within 18
months
in 3 years
End Prompt
Payment
Discounts,
reasonable late
payment fees
allowed
Mandatory ASX
futures market
making unless
industry
incentive-based
scheme
Generator-
retailers to
report
separately on
financial
performance of
retail and
generation
segments
Further review
of industry in
Government’s
second term to
ensure savings
for customers
Introduce
moratorium on
saves and win-
backs
Establish a pilot
scheme to help
non-switching
customers
Phase out low
fixed charge
tariff
regulations over
5 years
commenced
26 FEBRUARY 2020

Zero Carbon Bill
Passed into law as part of the Climate Change
Response Act
Sets a 2050 emissions target of net zero
gr
eenhouse gases, excluding methane
Establishes a Climate Change Commission
Emissions Trading Reform Bill
Brings agriculture emissions into the ETS by
2025 (initially with 95% free allocation)
Removal of current $25 fixed price option
Supply of emissions units to be set through
auc
tions and capped
Phase-dow
n of free allocation from 2021
19
New Zealand policy and regulation
2020 INTERIM RESULTS PRESENTATION
26 FEBRUARY 2020

20
New Zealand policy and regulation
Action for Healthy Waterways
The Government’s proposals for water reform,
prioritisingthe health of waterways
RMA changes to speed up water planning
processes and set national standards
A new National Policy Statement for
Freshwater Management
Six large hydro schemes (including Meridian’s)
are explicitly recognised as crucial to energy
and climate change
Councils are still required to improve water
health in those catchments
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

21
Rio strategic review
In October 2019, Rio Tinto announced a
strategic review of the Tiwaismelter
Rio Tinto have indicated the review will
consider all options, including curtailment and
closure
The review is expected to be completed by the
end of the first quarter in 2020
Meridian has offered contract changes to Rio
Tinto for 622MW and 450MW of electricity
Significant future transmission cost savings for
the smelter are possible
Potential closure impacts multiple stakeholders
and all generators
Numerous mitigants, including new South
Island transmission and demand sources,
however an orderly exit will need time
Source: NZX, Meridian
2020 INTERIM RESULTS PRESENTATION
26 FEBRUARY 2020

22
Clutha Upper Waitaki Lines Project
Agreement reached with Transpowerto
support recommencement of Clutha
Upper Waitaki Lines Project
Projects 1-2 have been completed
Projects 3-5 were previously on hold
pending a smelter exit
Should see lower South Island
transmission constraints alleviated by
June 2022
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
3
1
4
5
2

23
Flux
Now supports 400,000 customers
across 3 geographies
Terms agreed with npowerto add an
additional 200,000 customers by end of
2020
55,000 Meridian customers migrated
from legacy systems at end of January
2020
Source: NZX, Meridian
2020 INTERIM RESULTS PRESENTATION
26 FEBRUARY 2020

24
Closing comments
1H FY20 result had market and weather
tailwinds, however execution was excellent
Customer growth in all geographies
New Zealand gas market remains tight, with
further field outages in 2020
Solid January 2020 operating result
HVDC outages are constraining discretionary
generation, strong North Island wind has
helped
Harapakiwindfarm decision by mid 2020
Implementation of the major environmental
policies of the coalition Government will
support future renewable generation
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

25
Additional information
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

26
Debt and funding
2020 INTERIM RESULTS PRESENTATION
December 2019 total borrowings of $1,557M
Committed bank facilities of $665M, of which
$525M were undrawn
$170M of commercial paper issued on an
uncommitted basis
Net debt to EBITDAF at 1.7x
26 FEBRUARY 2020
30%
3%
25%
3%
30%
9%
Sources of Funding - 31 December 2019
NZ$ bank facilities
drawn/undrawn
EKF - Danish export
credit
Retail Bonds
Floating rate notes
US private placement
Commercial paper
89
225
60
160 160
767
71
105
175
0
100
200
300
400
500
600
700
800
900
CY20CY21CY22CY23CY24CY25+
$M
Debt maturity profile as at 31 December 2019
Available facilities maturing
Drawn debt maturing (face value)

27
Capital expenditure
2020 INTERIM RESULTS PRESENTATION
Consistent level of stay in business capex
Largely consists of system and generation
asset enhancement spend
Total capex for 1H FY20 of $32M
Expecting FY20 Group capex of between
$70M and $80M
$50M to $55M of stay in business capex
$20M to $25M of currently approved
investment spend
26 FEBRUARY 2020
19
20
17
23
24
31
28
30
25
50
48
47
48
0
20
40
60
80
20162017201820192020
$M
Financial Year ended 30 June
Stay in business capital expenditure
InterimFinal half-yearTotal

28
Segment results
Flux Federation and PowershopUK included in ‘other and unallocated’ segment
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

102
103
106
109
112
117
115
119
119
120
56
59
66
74
82
0
100
200
300
400
Jun-16Jun-17Jun-18Jun-19Dec-19
ICP (000)
New Zealand customer connections
Meridian North IslandMeridian South IslandPowershop
29
New Zealand retail
Customers
4% increase in customers since June 2019
Residential, business, agri segment
5% increase in residential volumes
10% increase in small business volumes
11% increase in large business volumes
30% increase in agri volumes
Constant average sales price
Corporate segment
39% increase in volumes
13% increase in average sales price
Total
275
277
291
302
314
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
2,001
1,886
2,027
1,936
2,187
1,163
911
1,114
1,063
1,474
3,164
2,797
3,141
2,999
3,661
0
1,000
2,000
3,000
4,000
20152016201720182019
GWH
Six Months ended 31 December
New Zealand retail sales volume
Residential, SMB, AgriCorporateTotal

30
New Zealand hydrology
Inflows
1H FY20 inflows were 136% of average
January 2020 inflows were 71% of average
Storage
Meridian’s Waitaki storage 31 December 2019
was 136% of average
By 31 January 2020, this position was 118% of
average
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
200620072008200920102011201220132014201520162017201820192020
GWH
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
December YTD86 year average
0
500
1,000
1,500
2,000
2,500
1-Jan1-Feb1-Mar1-Apr1-May1-Jun1-Jul1-Aug1-Sep1-Oct1-Nov1-Dec
GWH
MERIDIAN'S WAITAKI STORAGE
Average 1979-201320152016201720182019

31
New Zealand generation
Volume
1H FY20 generation was 10% higher than 1H
FY19, with higher hydro and higher wind
generation
Price
1H FY20 average price Meridian received for
its generation was 19% lower than 1H FY19
1H FY20 average price Meridian paid to
supply customers was 21% lower than 1H
FY19
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
6,087
6,296
5,289
5,925
6,408
771
733
648
621
779
6,858
7,029
5,937
6,546
7,187
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
20152016201720182019
GWH
Six Months ended 31 December
New Zealand generation
HydroWindTotal
57
44
93
124
101
0
20
40
60
80
100
120
140
20152016201720182019
$/MWh
Six Months ended 31 December
NZ average generation price

32
Australian retail
Customers
14% growth in electricity customers since
June 2019
35% growth in gas customers since June
2019
Sales volume
18% growth in electricity sales volume in 1H
FY20
773TJ in gas sales in 1H FY20
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
163
241
289
280
329
0
50
100
150
200
250
300
350
20152016201720182019
GWH
Six Months ended 31 December
Australian retail sales volume
78
97
97
110
125
23
30
0
20
40
60
80
100
120
140
160
Jun-16Jun-17Jun-18Jun-19Dec-19
Australian customer connections
ElectricityGas

33
Australian generation
Volume
1H FY20 generation was 13% lower than 1H
FY19
1H FY20 wind generation was 2% lower than
1H FY19
1H FY20 hydro generation was 37% lower
than 1H FY19
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
437
309
305
296
290
123
77
437
309
305
419
367
0
100
200
300
400
500
600
20152016201720182019
GWH
Six Months ended 31 December
Australian generation
WindHydroTotal

465
389
+79
-3
-85
+145
-44
-3
-1
-1
-3
-8
0
100
200
300
400
500
600
EBITDAF 31
Dec 2018
Retail
contracted
sales
Wholesale
contracted
sales
Generation
spot revenue
Cost to
supply
customers
Net cost of
hedges
Virtual asset
swaps
Other market
costs
Australian
energy
margin
Other
revenue
Transmission
expenses
Employee &
other
operating
expenses
EBITDAF 31
Dec 2019
$M
Movement in EBITDAF
34
1H FY20 EBITDAF
New Zealand energy margin +$88M
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
0

35
EBITDAF to NPAT
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
184
191
465
-157
-10
-43
-71
+10
-3
100
150
200
250
300
350
400
450
500
EBITDAFDepreciation and
amortisation
Premiums paid on
electricity options net
of interest
Net finance costsTaxUnderlying
NPAT
Net change in fair
value of
hedges/instruments
Loss on sale of
assets/impairments
Premiums paid on
electricity options net
of interest
TaxNPAT
$M
1H FY20 EBITDAF TO NPAT RECONCILIATION
00

36
Energy margin
A non-GAAP financial measure
representing energy sales revenue less
energy related expenses and energy
distribution expenses
Used to measure the vertically integrated
performance of the retail and wholesale
businesses
Used in place of statutory reporting which
requires gross sales and costs to be
reported separately, therefore not
accounting for the variability of the
wholesale spot market and the broadly
offsetting impact of wholesale prices on the
cost of retail electricity purchases
Defined as
Revenues received from sales to customers net of
distribution costs (fees to distribution network companies that
cover the costs of distribution of electricity to customers),
sales to large industrial customers and fixed price revenues
from financial contracts sold (contract sales revenue)
The volume of electricity purchased to cover contracted
customer sales and financial contracts sold (cost to supply
customers)
The fixed cost of derivatives used to manage market risks,
net of spot revenue received from those derivatives (net cost
hedging)
Revenue from the volume of electricity that Meridian
generates (generation spot revenue)
The net margin position of virtual asset swaps with Genesis
Energy and Mercury New Zealand
Other associated market revenues and costs including
Electricity Authority levies and ancillary generation revenues,
such as frequency keeping
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

37
New Zealand energy margin
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
598
255
136
246
727
-703
-94
-57
94
-5
3
-4
0
300
600
900
1,200
1,500
Res, SMB,
Agi sales
C&I salesFinancial
contract
sales (incl
NZAS)
Generation
spot revenue
Cost to
supply
customers
Cost to
supply
financial
contracts
Hedging
fixed costs
Hedging spot
revenue
Contract
close outs
VAS marginsMarket costsEnergy
Margin
$M
New Zealand energy margin

38
New Zealand energy margin
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
598
510
+30
+49
-3
-85
+92
+53
+15
-56
-3
-3
-1
200
300
400
500
600
700
Energy
Margin 31
Dec 18
Res, SMB,
Agi sales
C&I salesFinancial
contract
sales (incl
NZAS)
Generation
spot revenue
Cost to
supply
customers
Cost to
supply
financial
contracts
Hedging
fixed costs
Hedging
spot revenue
Contract
close outs
VAS marginsMarket costsEnergy
Margin 31
Dec 19
$M
New Zealand energy margin movement

39
New Zealand energy margin
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

40
Australian energy margin (AUD)
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

41
Fair value movements
Meridian uses derivative instruments to
manage interest rate, foreign exchange and
electricity price risk
As forward prices and rates on these
instruments move, non-cash changes to their
carrying value are reflected in NPAT
Accounting standards only allow hedge
accounting if specific conditions are met,
which creates NPAT volatility
$6M decrease in NPBT from fair value of
electricity hedges from changing forward
electricity prices ($20M increase in 1H FY19)
$6M increase in NPBT from fair value of
treasury instruments ($15M decrease in 1H
FY19)
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020
-83
-21
-26
-5
0
-100
-80
-60
-40
-20
0
FY16FY17FY18FY191H FY20
$M
Change in fair value of financial instruments

42
Income statement
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

43
Underlying NPAT reconciliation
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

44
Cash flow statement
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

45
Balance sheet
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

46
Glossary
Hedging volumesbuy-side electricity derivativesexcludingthe buy-side of virtual asset swaps
Average generation pricethe volume weighted average price received for Meridian’s physical generation
Average retail contracted sales pricevolume weighted average electricity price received from retail customers, less distribution costs
Average wholesale contracted sales pricevolume weighted average electricity price received from wholesale customers(including NZAS) and financial contracts
Combined catchment inflowscombined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes
Cost of hedgesvolume weighted average price Meridian pays for derivatives acquired
Cost to supply contracted salesvolume weighted average price Meridian pays to supply contracted customer sales and financial contracts
Contracts for Difference (CFDs)an agreement betweenparties to pay the difference between the wholesale electricity price and an agreed fixed price for a specified
volume of electricity. CFDs do not result in the physical supply of electricity
Customer connections (NZ)number of installation control points, excluding vacants
FRMPfinancially responsible market participant
GWhgigawatt hour. Enough electricity for 125 average New Zealand households for one year
Historic average inflowsthe historic average combined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes over the last 84 years
Historic average storagethe historic average level of storage in Meridian’s Waitaki catchment since 1979
HVDChigh voltage direct current link between the North and South Islands of New Zealand
ICPNew Zealand installation control points, excluding vacants
ICP switchingthe number of installation control points changing retailer supplier in New Zealand, recorded in the month the switch was initia ted
MWhmegawatt hour. Enough electricity for one average New Zealand household for 46 days
National demandElectricity Authority’s reconciled grid demand
www.emi.ea.govt.nz
NZASNew Zealand Aluminium SmeltersLimited
Retail sales volumescontract sales volumes to retail customers, including both non half hourly and half hourly metered customers
Financial contract salessell-side electricity derivatives excluding thesell-side of virtual asset swaps
TJTerajoules
Virtual Asset Swaps(VAS)CFDs Meridian has with Genesis Energy and Mercury New Zealand. They do not result in the physical supply of electricity
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

47
Disclaimer
The information in this presentation was prepared by Meridian Energy
with due care and attention. However, the information is supplied in
summary form and is therefore not necessarily complete, and no
representation is made as to the accuracy, completeness or reliability
of the information. In addition, neither the company nor any of its
directors, employees, shareholders nor any other person shall have
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 forward-looking statements and
projections. These reflect Meridian’s current expectations, based on
what it thinks are reasonable assumptions. Meridian gives no warranty
or representation as to its future financial performance or any future
matter. Except as required by law or NZX or ASX listing rules, Meridian
is not obliged to update this presentation after its release, even if things
change materially.
This presentation does not constitute financial advice. Further, this
presentation is not and should not be construed as an offer to sell or a
solicitation of an offer to buy Meridian Energy securities and may not
be relied upon in connection with any purchase of Meridian Energy
securities.
This presentation contains a number of non-GAAP financial measures,
including Energy Margin, EBITDAF, Underlying NPAT and gearing.
Because they are not defined by GAAP or IFRS, Meridian's calculation
of these measures may differ from similarly titled measures presented
by other companies and they should not be considered in isolation
from, or construed as an alternative to, other financial measures
determined in accordance with GAAP. Although Meridian believes they
provide useful information in measuring the financial performance and
condition of Meridian's business, readers are cautioned not to place
undue reliance on these non-GAAP financial measures.
The information contained in this presentation should be considered in
conjunction with the company’s condensed financial statements for the
six months ended 31 December 2019, available at:
www.meridianenergy.co.nz/investors
All currency amounts are in New Zealand dollars unless stated
otherwise.
2020 INTERIM RESULTS PRESENTATION26 FEBRUARY 2020

---

For the six months ended
31 December 2019
Investor
Let ter.

Progress on strategy
Highlights
Challenges
• High
wholesale
prices and
shrinking
margins
• Intense
competition
• Consenting
complexity
• Smelter
uncertainty
• Decarbonisation
timing
• Stretched
development
valuations
• npower
E.ON merger
uncertainty
• IT resources
Champion the
benefits of
competitive
markets
Grow
New Zealand
retail
Support retail
and protect
our generation
legacy
Grow
overseas
earnings
• Powershop
Australia sales
momentum
• New NSW wind
option
• Further 200K
UK customers
in 2020
• Gas
uncertainty
• High
wholesale
prices
• Balance
between
water, RMA
reform and
generation
• 2020 Harapaki
investment
decision
• Additional
367GWh
storage in
Lower Pukaki
• Development
team
expansion
• EPR outcomes
• New
generation
and
transmission
• Progress on
Govt climate
policies
• 22% growth in
sales volumes
• Meridian retail
churn improved
to 16%
• Consumer NZ
survey rankings
Strategic theme
2 Investor Letter.

The six months ended 31 December
2019 saw a strong performance across
the business, with Meridian reporting
a record level of interim earnings
(EBITDAF), 20% higher than the prior
corresponding period.
This result was supported by compelling
growth in customer numbers and sales
volumes in both New Zealand and
Australia. High customer satisfaction
across both brands was evident in the
2019 Consumer NZ annual electricity
survey, with Powershop taking out the
top electricity provider and Meridian
ranked ahead of the other large retailers.
Favourable conditions led to record
hydro and wind generation in
New Zealand, however Australian
generation was lower than last year,
affected by ongoing drought conditions
and wind farm availability issues.
The Board has announced an
interim dividend of 5.70 cents per
share, consistent with last year’s
interim dividend.
Meridian has also declared an interim
special dividend of 2.44 cents per share
($62.5 million) under the company’s
capital management programme. This
means that $625 million of the $875
million programme has now been
distributed to shareholders since the
capital management programme
commenced in August 2015.
Both the interim ordinary and special
dividends will be paid on 16 April 2020.
Meridian’s balance sheet remains
in a strong position, with the company
maintaining a BBB+ credit rating
as defined by the agency Standard
& Poor’s.
See the interim results financial
commentary for more of
Meridian’s results
www.meridianenergy.co.nz/investors/
reports-and-presentations/interim-
results-and-reports
Our customers
Increases in customer electricity
sales of 22% in New Zealand and
18% in Australia were highlights in
the six months ended 31 December
2019, supported by an 8% increase in
Australasian customer numbers.
Sales and customer numbers in
Australia included higher gas sales
in Victoria and sales through Kogan
Energy, a partnership Powershop
Australia launched with Kogan.com
in 2019.
Meridian’s own software as a service
company Flux, continues to grow
customers on its platform, and is
now serving more than 400,000
customers, including 55,000 Meridian
New Zealand customers and 100,000
UK customers.
Hydrology
Meridian’s water storage in
New Zealand was well above
average at the end of December
2019, with catchment inflows in the
six months to 31 December 2019 136%
of the historical average. The heavy
December 2019 rainfall caused Lake
Te Anau and Lake Manapōuri to
record the second highest levels on
record, only beaten by the November
1988 event.
In contrast, persistent hot, dry
conditions in Australia saw hydro
generation 37% lower than the
same period last year.
Investor Letter. 3

Government Policy
The second half of 2019 saw
significant progress by the
New Zealand Government on their
environmental policy agenda. The
Zero Carbon Bill passed into law,
setting the country a 2050 emissions
target of net zero greenhouse gas
emissions, excluding methane.
Reforms to New Zealand’s emissions
trading also continued with proposals
to partly expose agricultural emissions
to the Emissions Trading Scheme,
removal of the $25 per tonne fixed
price option, a capped supply of
emission units set through auctions
and a phase-down of free allocations.
Meridian has been strongly supportive
of decarbonisation efforts and these,
together with a more appropriate
price on carbon emitters, will give
New Zealanders a lower carbon,
cleaner energy future.
The New Zealand Government also
announced water reform proposals
and its response to the Electricity Price
Review, both of which Meridian is
broadly supportive of.
A final decision by the Electricity
Authority on the long running
Transmission Pricing Methodology
reforms is expected by the middle
of 2020.
Tiwai Point
In late October Rio Tinto, the owners
of the New Zealand aluminium
smelter (NZAS) at Tiwai Point,
announced a Strategic Review of
their operations.
Rio Tinto has indicated the Strategic
Review will look at all options to
improve the economics of the smelter,
including curtailment and closure. Rio
Tinto has advised it will provide the
market with an update on its review by
the end of the first quarter of 2020.
Meridian has been in regular
dialogue with the smelter owners and
have offered changes to the current
contract for existing and reduced
consumption volumes.
The smelter also stands to see future
transmission cost savings, particularly
as the Electricity Authority advances its
transmission pricing reforms.
Our People
Over the last six months our
executive team has gone from
strength to strength with some very
talented leaders joining the team to
drive Meridian’s business and deliver
on our strategy and purpose.
At Meridian we’re very fortunate to
have such a great talent pool. The
depth of our talent has meant that
we’ve been able to make three internal
appointments to the executive team.
Chris Ewers has been appointed
General Manager of Wholesale. Chris
has been with Meridian since it was
first formed in 1999 and most recently,
he was responsible for Meridian’s
wholesale business strategy as
Portfolio Manager.
Lisa Hannifin is our new Chief Customer
Officer. Lisa is responsible for both
the Meridian retail business and our
subsidiary Powershop in New Zealand.
Lisa has spent more than a decade
in the electricity sector. Most recently
she was Head of Business and
Residential at Meridian.
And finally, Jason Stein was appointed
as CEO of Meridian Energy and
Powershop Australia in December
2019. He officially took over the reins
in Melbourne in January. Jason has
been with Meridian for nearly 10
years and was previously General
Manager of Office of the CEO, and
General Counsel. Jason brings a sharp
customer focus and considerable
commercial experience to his role.
Along with welcoming new executive
team members, Meridian welcomed
a new Chair of the Board – Mark
Verbiest who replaced Chris Moller
after the Annual Shareholder Meeting
in October last year. Three new Board
members were also appointed in late
2019 and early 2020, Julia Hoare,
Michelle Henderson and Nagaja
Sanatkumar.
Julia brings extensive governance,
financial and accounting experience
and Michelle’s background is in
engineering and the heavy industry
sector. Nagaja has had an impressive
international career and brings
to Meridian her expertise in retail,
customer experience, innovation
and technology.
4 Investor Letter.

Commitment to sustainability
As a 100% renewable energy
generator, our commitment
is to protect the environment
while looking after people and
shareholders. One of the biggest
ways that we demonstrate this
commitment is through our focus
on sustainability.
Over the last six months Meridian
has continued to demonstrate our
commitment as leaders in this space
by actively working towards a low
carbon future.
Last year we released New Zealand’s
first corporate report disclosing
risks to our business resulting from
climate change:
www.meridianenergy.co.nz/assets/
Sustainability/e93f942ead/Meridian-
Climate-Disclosures-TCFD-Report-
F Y 19.pdf
Being a strong corporate advocate for
climate action means understanding
and acknowledging our risks and
encouraging others to do the same.
It’s the ethical and responsible
thing to do for our investors and all
New Zealanders. Understanding
and reporting climate risk will be
an ongoing commitment from
Meridian and is integral to our work
on reducing emissions, supporting
accelerated action on renewables and
decarbonisation, and engaging staff
and suppliers to improve sustainability.
Meridian has also been a strong
supporter of the Climate Change
Response (Zero Carbon) Amendment
Bill introduced by the Government last
year. Given Meridian’s 100% renewable
generation legacy in New Zealand,
we continue to lead environmental
change. Meridian is now net zero
carbon across our operations and
we have committed to halve our
gross emissions by 2030. We have
made real progress in Australia,
growing renewable generation and
customers, including offering a carbon
neutral alternative in a country that
is dominated by fossil fuel energy.
Similarly, in New Zealand Meridian
has launched a renewable energy
certification that provides business
customers with an assurance the
Company has generated enough
renewable energy to cover their
electricity usage. The first customer
to utilise this certification was Garage
Project, a craft beer company that is
passionate about making its business
as sustainable as it can, with
Meridian’s help
Closing thoughts
Meridian produced strong financial
results for the six months ended
31 December 2019 and while we
benefited from good wind and rain
and continued high wholesale prices,
operationally our performance
was excellent.
The second half of this financial
year is bringing challenges, particularly
as the interisland high voltage direct
current link is constrained through until
April for major maintenance. These
outages have been well signalled
and we have hedged our position
against constrained South Island
generation transfer.
We also continue to advance our
renewable generation development,
having secured a new wind
development option in New South
Wales and moving forward with
access to lower levels of storage in
Lake Pukaki. We also expect to
make an investment decision on
our Hawkes Bay wind development
(Harapaki) by the middle of this year.
Investor Letter. 5

On behalf of the Board and the
Executive Team, we would like
to thank our shareholders, our
customers and our stakeholders
for their continued support to
help Meridian deliver clean energy
for a fairer and healthier world.

---

1
Financial Commentary
Meridian Energy Limited
Five-Year Performance
Financial
Commentary.
Group EBITDAF
Interim
Final half-year
Total
Financial Year ended 30 June
$M20162017201820192020
1,000
800
600
400
200
0
332

318
650
354

303
657
329

337
666
389

449
838
465
Net profit after tax
Financial Year ended 30 June
Interim
Final half-year
Total
$M20162017201820192020
400
300
200
100
0
104

81
185
125

75
200
109

92
201
152

187
339
191
Underlying N PAT
Financial Year ended 30 June
Interim
Final half-year
Total
$M20162017201820192020
400
300
200
100
0
122

111
233
131

90
221
104

102
206
144

189
333
184
Operating cash flows
Financial Year ended 30 June
Interim
Final half-year
Total
$M20162017201820192020
700
600
500
400
300
200
100
0
206

246
452
203

267
470
162

265
427
262

373
635
266
Interim dividend declared
Six Months ended 31 December
Ordinary dividend
Special dividend
Total
CPS20152016201720182019
10
8
6
4
2
0
5.10

2.44
7. 5 4
5.33

2.44
7.7 7
5.38

2.44
7. 8 2
5.70

2.44
8.14
5.70

2.44
8.14

2
Financial Commentary
Meridian Energy Limited
Progress on strategy
Highlights
Challenges
• High
wholesale
prices and
shrinking
margins
• Intense
competition
• Consenting
complexity
• Smelter
uncertainty
• Decarbonisation
timing
• Stretched
development
valuations
• npower
E.ON merger
uncertainty
• IT resources
Champion the
benefits of
competitive
markets
Grow
New Zealand
retail
Support retail
and protect
our generation
legacy
Grow
overseas
earnings
• Powershop
Australia sales
momentum
• New NSW wind
option
• Further 200K
UK customers
in 2020
• Gas
uncertainty
• High
wholesale
prices
• Balance
between
water, RMA
reform and
generation
• 2020 Harapaki
investment
decision
• Additional
367GWh
storage in
Lower Pukaki
• Development
team
expansion
• EPR outcomes
• New
generation
and
transmission
• Progress on
Govt climate
policies
• 22% growth in
sales volumes
• Meridian retail
churn improved
to 16%
• Consumer NZ
survey rankings
Strategic theme

3
Financial Commentary
Meridian Energy Limited
Overview
Meridian saw its earnings (EBITDAF)
for the six months ended 31 December
2019 increase 20% compared to the
prior corresponding period. Higher
hydro and wind generation and strong
customer sales saw New Zealand
EBITDAF increase 22%. Our operations
in Australia delivered 5% lower
EBITDAF, despite strong customer
sales, as drought conditions and wind
farm availability reduced generation.
This represents the highest level of
Group EBITDAF Meridian has delivered
in the first six months of any financial
year and has supported a consistent
dividend, with the company declaring
an interim ordinary dividend of 5.70
cents per share.
Meridian has also declared an
interim special dividend of 2.44 cents
per share ($62.5 million) under the
company’s capital management
programme.
This means that $625 million of the
$875 million programme has now
been distributed to shareholders since
the capital management programme
commenced in August 2015.
Meridian’s balance sheet remains
in a strong position, with the company
maintaining a BBB+ credit rating
as defined by the agency Standard
& Poor’s.
1H FY201H FY19
cents per
share
imputationcents per
share
imputation
Ordinary dividends5.7086%5.7086%
Capital management special dividends2.440%2.440%
Total8.148.14
Dividends declared
Financial performance against prior year
Six months ended 31 December 2019
Six months ended 31 December 2018
663
576
Energy
Margin
68
65
Transmission
Costs
143
465
191
184
266
209209
262
135
389
152
144
Operating
Expenditure
NPATUnderlying
NPAT
Operating
Cash Flow
Dividend
Declared
EBITDAF
700
600
500
400
300
200
100
0
$M
Net debt/EBITDAF
Jun-16Jun-17Jun-18Jun-19Dec-19
3
2
1
0
1.8
1.9
2.3
1.71.7
Times