Contact to build Tauhara power station; raise $400m equity
contactenergy.co.nz
NZX RELEASE
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
15 February 2021: Contact Energy FY21 Interim Result
Contact to build Tauhara geothermal power station; will raise $400m in
equity.
Key metrics
Six months ended
31 December 2020
Six months ended
31 December 2019
EBITDAF
1
$246m ↑ 11% from $221m
Profit $78m ↑ 32% from $59m
Interim dividend per share 14.0 cps ↓ 13% from 16.0 cps
Operating free cash flow
2
$157m ↑ 31% from $120m
Operating free cash flow per share 21.9 cps ↑ 30% from 16.8 cps
Stay-in-business capital expenditure $31m ↑ 15% from $27m
Highlights
• Strong financial performance despite uncertainty of gas availability and the near-term
future of major energy users.
• Result underpinned by active channel management to capture higher wholesale prices,
strong asset availability, and disciplined approach to managing commodity risks.
• Several major geothermal outages completed safely, on time and under budget.
• $580m further investment approved to develop a new 152MW geothermal power station
at Tauhara, near Taupō.
• $400m equity raise announced to support a capital investment programme, including
the Tauhara Project.
• Strategic review of thermal assets under way over the next few months.
• Revised dividend policy to distribute ordinary dividends targeting a pay-out ratio of
between 80-100% of the average operating free cash flow of the preceding four financial
years.
• Interim cash dividend of 14 cents per share will be paid on 30 March 2021.
• New director Rukumoana Schaafhausen will join the Contact Board on 1 March 2021.
Current director Whaimutu Dewes retires from the Board on 31 March 2021.
1
Refer to slide 36 of the 2021 interim results presentation for a definition and reconciliation between statutory profit and the non-GAAP profit measures earnings before
net interest expense, tax, depreciation, amortisation, change in fair value of financial instruments (EBITDAF)
2
Refer to note A3 of the 2021 interim financial statements for a definition and reconciliation between cash flow from operating activities and the non-GAAP measure
operating free cash flow. Operating free cash flow represents cash available to repay debt, to fund distributions to shareholders and growth capital expenditure.
contactenergy.co.nz
New Zealand energy company Contact Energy (‘Contact’) released its interim financial
results for the six months to 31 December 2020 and announced it will proceed with the
development of a new 152 megawatt geothermal power station at Tauhara (near Taupō) and
raise $400 million of equity to support funding of the development.
Financial performance
Contact reported a statutory profit of $78m, up 32 per cent ($19m) on the same period last
year. EBITDAF increased by $25m to $246m, up 11 per cent on the prior year. Operating
free cash flow for the period increased from $120m to $157m in the first six months of FY21,
up 31 per cent year-on-year.
Contact CEO Mike Fuge said it had been a very heartening start to the year, in a complex
environment. “We’re pleased to have delivered a strong financial result despite challenging
headwinds in the form of ongoing uncertainty around gas availability, and the doubt swirling
around the future of the Tiwai Point smelter until the extension announced a month ago.
We’re also proud to have played our part in helping secure the financial sustainability of the
unique low-carbon smelter at Tiwai until at least the end of 2024.”
He said the interim result was underpinned by active channel management, strong asset
availability, and a disciplined approach to managing commodity risk. “There is no room for
complacency as there is an ongoing challenge around the deliverability of gas from declining
gas fields and preparing for the exciting opportunity to grow demand for our low carbon
energy.”
The Board has approved an interim cash dividend of 14 cents per share which will be
imputed up to 9 cents per share for qualifying shareholders
3
and paid on 30 March 2021.
Tauhara geothermal development: additional $580m investment approved
The Contact Board has also confirmed the company will proceed with the $580m
4
development of a new geothermal power station on the Tauhara field, near Taupo.
Contact Chair Rob McDonald said: “We’re absolutely delighted that market conditions now
allow us to proceed with this important development for New Zealand – one which has been
in the planning stages for over a decade.
“We believe the Tauhara geothermal project is New Zealand’s best low-carbon renewable
electricity opportunity. It will operate 24/7, is not reliant on the weather and is ideal for
displacing baseload fossil fuel generation from the national grid which will significantly
reduce New Zealand’s carbon emissions.”
Construction will begin shortly and is expected to be completed in the middle of 2023.
Japanese engineering, procurement and construction contractor Sumitomo Corporation is
leading the build, in partnership with New Zealand construction company Naylor Love and
Fuji Electric.
Mr Fuge said the investment in Tauhara was a significant commitment aligned with
Contact’s vision to build a better New Zealand. “It’s hugely exciting to be moving into a
growth and development phase. We have a fantastic team from within and beyond Contact
3
Being Contact shareholders on the register at close of business on 15 March 2021, following the allotment of new shares under the Equity Raise
4
Excluding capitalised interest, sunk costs and capitalised transmission assets
contactenergy.co.nz
who will ensure the construction of a world-class power station that everyone can be very
proud of.
“Proceeding with Tauhara is also the next chapter in our longstanding commitment to the
central North Island and is expected to make an important contribution towards the region’s
post-COVID19 economic recovery.”
Beyond those economic benefits, Mr Fuge said the development would support New
Zealand’s transition to a low-carbon economy.
“Tauhara will provide a foundation to support New Zealand’s increased electricity needs over
the next decade. Geothermal is something of an unsung hero in Aotearoa, but it plays a
crucial role in our generation mix and the transition away from fossil fuels.”
Equity raise
Contact has also announced a $400m equity raise. The proceeds of the equity raise will
initially reduce net debt and provide financial flexibility to fund the Tauhara Project and other
future growth projects.
Mr McDonald said the equity raise would give Contact the flexibility to execute on a
development pipeline beyond Tauhara, comprising up to $800m of additional projects
including the potential replacement and expansion of the company’s geothermal power
station at Wairakei. “It will mean Contact can maintain optionality in respect of future
investment decisions, which will be able to be sized and timed to meet market demand.”
The equity raise will comprise a $325m underwritten placement (Placement) and a non-
underwritten offer to shareholders in New Zealand and Australia to raise up to $75 million
(Retail Offer).
5
Contact will retain the ability to accept oversubscriptions in connection with
the Retail Offer at its discretion, with the objective of ensuring fairness for most retail
shareholders.
Review of thermal assets
Mr Fuge said the company was also undertaking a strategic review of the future role of all
thermal assets in the Contact portfolio.
“We believe the time is right to consider our plans for our thermal assets, including the
Taranaki Combined Cycle Power Station and Peakers at Stratford, the Te Rapa Power
Station and the Whirinaki Peaker Plant. We expect this review will take several months.”
Dividend policy revised
The Board of Contact has updated the company’s dividend policy. Under the new policy,
Contact will distribute ordinary dividends targeting a pay-out ratio of between 80 per cent
and 100 per cent of the average operating free cash flow
6
of the preceding four financial
years.
7
For the FY21 financial year, the target payment for the full year dividend is 35 cents
per share.
5
See ‘Details of the equity raise’ in the Additional information section
6
Operating free cash flow is a non-GAAP cash measure that represents the amount of cash Contact has available to distribute to shareholders, reduce debt or reinvest in
growing the business. Calculated as operating cash flow less stay-in-business CAPEX.
7
This includes Board consideration of the sustainable financial structure of Contact including the targeting of a long-term investment grade credit rating. Dividend
payments are expected to be split into an interim dividend paid in March, targeting around 40% of the total expected dividend for the financial year, and a final dividend to
be paid in December. It is the intention of the Board to attach imputation credits to dividends to the extent they are available.
contactenergy.co.nz
Contact also intends to implement a dividend reinvestment plan and will be providing
shareholders with more information on this in the coming months. The dividend reinvestment
plan will not apply to the dividend to be paid on 30 March 2021.
Outlook
Looking ahead, Mr Fuge said Contact was committed to leading the decarbonisation of New
Zealand. “We are excited about the critical role that Contact’s renewable electricity generation
is set to play in the decarbonisation of the New Zealand economy over the next decade.
“As the Climate Change Commission signalled last month, renewable electricity provides a
key solution to the climate change equation. Sectors such as transport and industrial process
heat will need to move to low-emission electricity for their energy supply, and away from their
stubborn reliance on high-carbon fossil fuels.”
He said the Contact team was looking forward to accelerating its refreshed growth strategy
and building on the company’s strong record of operational performance delivery. “Today’s
announcements of the Tauhara investment and the strategic review of the future role of all
thermal assets in the Contact portfolio are the next steps on this exciting journey.”
-ends-
1/ CONTACT DETAILS
Investor enquiries:
Matthew Forbes, matthew.forbes@contactenergy.co.nz, Ph +64 21 072 8578
Media enquiries:
Paul Ford, paul.ford@contactenergy.co.nz, Ph +64 21 809 589
2/ ADDITIONAL INFORMATION
A. Details of the Equity Raise
Contact is raising NZ$400 million via a NZ$325 million underwritten institutional Placement
and a NZ$75 million non-underwritten Retail Offer. Contact will retain the ability to accept
oversubscriptions in connection with the Retail Offer at its discretion, to maximise fairness
for retail shareholders.
The Placement is fully underwritten and will be conducted today through a bookbuild in
which institutional and other select investors in New Zealand, Australia and other
jurisdictions will be invited to participate. The Placement has been underwritten at a fixed
price of NZ$7.00 per share, which represents a 2.8% discount to Contact’s closing price on
12 February 2021 of NZ$7.20 and a 7.8% discount to the 5-day volume weighted average
price (VWAP) of Contact shares on NZX ending on 12 February 2021 of NZ$7.60. A trading
halt has been granted by NZX and ASX to facilitate the Placement.
Contact intends to make the Retail Offer available to eligible existing shareholders with a
registered address in New Zealand or Australia, enabling them to subscribe for up to
NZ$50,000/A$46,500 of new Contact shares respectively. New shares will be offered under
the Retail Offer at the lower of the Placement price of NZ$7.00 per share and a 2.5%
discount to the 5-day VWAP of Contact shares traded on NZX during the last five trading
days prior to, and including, the closing date for the Retail Offer. If scaling of the Retail Offer
contactenergy.co.nz
is required, it will be done having regard to shareholders’ existing shareholdings at the
record date of 7:00pm NZDT / 5:00pm AEDT on 12 February 2021.
Contact considers that the Retail Offer will cater to almost all of Contact’s non-institutional
shareholders, enabling them to participate pro rata and maintain their relative percentage
shareholdings in Contact following completion of the Equity Raise. A Retail Offer document,
together with an application form, will be sent to eligible shareholders on 18 February 2021
and will be available at www.contactshareoffer.co.nz on the same day. This document will
contain the final terms of the Retail Offer. Applications under the Retail Offer will close at
5.00pm NZDT / 3.00pm AEDT on Friday, 5 March 2021.
New shares to be issued under both the Placement and Retail Offer will rank equally in all
respects with Contact's existing ordinary shares on issue.
B. Key dates
Placement Date
Trading halt commences and bookbuild
undertaken
Monday, 15 February 2021
Announcement of results of Placement and
trading halt lifted
Expected to be 12:00pm NZDT (10:00am
AEDT) Tuesday, 16 February 2021
ASX settlement Thursday, 18 February 2021
NZX settlement Friday, 19 February 2021
Placement shares allotted and commence
trading on NZX and ASX
Friday, 19 February 2021
Retail Offer Date
Record date
7:00pm NZDT (5:00pm AEDT)
Friday, 12 February 2021
Expected dispatch of Offer Document and
application form
Thursday, 18 February 2021
Retail Offer opens Thursday, 18 February 2021
Retail Offer closes
5:00pm NZDT (3:00pm AEDT)
Friday, 5 March 2021
Announcement of results of Retail Offer Thursday, 11 March 2021
NZX and ASX settlement Friday, 12 March 2021
Retail Offer shares allotted and commence
trading on NZX
Friday, 12 March 2021
Retail Offer shares commence trading on ASX Monday, 15 March 2021
contactenergy.co.nz
C. Additional information
A conference call will be held at 10:00am, New Zealand Daylight Time on 15 February 2021
regarding Contact’s interim results announcement, Tauhara investment decision and
updated dividend policy.
If you would like to attend the live presentation, please see the details below to view the
webcast off your chosen device:
Click here to enter the webcast: LIVE EVENT LINK
Or access this link via our website: https://contact.co.nz/aboutus/investor-centre
Additional information regarding the Equity Raise is contained in the Investor Presentation
"Tauhara investment and capital management plan – Powering New Zealand’s renewable
future" accompanying this announcement. That Investor Presentation contains important
information including key risks and foreign selling restrictions with respect to the Equity
Raise.
All dollar amounts are in New Zealand dollars (NZ$) unless otherwise stated. All times and
dates refer to New Zealand Daylight Time.
Nothing contained in this announcement constitutes investment, legal, tax or other advice.
Investors are encouraged to seek appropriate professional advice before making any
investment decision.
For any questions in respect of the Retail Offer, please visit www.contactshareoffer.co.nz or
call Link Market Services Limited on +64 9 375 5998 between 8:30am and 5.00pm (NZDT)
Monday to Friday during the Retail Offer period. For other questions, investors should
contact a professional adviser.
Forward-looking statements
This announcement may contain certain forward-looking statements with respect to the
financial condition, results of operations and business of Contact. Forward-looking
statements can generally be identified by the use of words such as “project”, “foresee”,
“plan”, “expect”, “aim”, “intend”, “anticipate”, “believe”, “estimate”, “may”, “should”, “will” or
similar expressions. Forward-looking statements in this announcement include statements
regarding the timetable, conduct and outcome of the Equity Raise and the use of proceeds
thereof, statements about the timing and cost of the Tauhara geothermal project, the timing
and cost of other potential Contact projects, the future of the Tiwai Point aluminium smelter,
alternative sources of electricity demand and the outlook for New Zealand’s energy market
generally, and Contact’s future financial performance.
Any indications of, or guidance or outlook on, future earnings or financial position or
performance and future distributions are also forward-looking statements. All such forward-
looking statements involve known and unknown risks, significant uncertainties, assumptions,
contingencies, and other factors, many of which are outside the control of Contact, which
may cause the actual results or performance of Contact to be materially different from any
future results or performance expressed or implied by such forward-looking statements.
Such forward-looking statements speak only as of the date of this announcement. Except as
required by law or regulation (including the NZX Listing Rules and the ASX Listing Rules),
Contact undertakes no obligation to update these forward-looking statements for events or
circumstances that occur subsequent to the date of this announcement or to update or keep
current any of the information contained herein. Any estimates or projections as to events
that may occur in the future (including projections of revenue, expense, net income and
contactenergy.co.nz
performance) are based upon the best judgement of Contact from the information available
as of the date of this announcement. A number of factors could cause actual results or
performance to vary materially from the projections, including the risk factors set out in our
Investor Presentation "Tauhara investment and capital management plan". Investors should
consider the forward-looking statements in this announcement in light of those risks and
disclosures.
You are strongly cautioned not to place undue reliance on any forward-looking statements,
particularly in light of the current economic climate and the significant volatility, uncertainty
and disruption caused in relation to Contact and otherwise by the COVID 19 pandemic.
United States selling restrictions
This announcement does not constitute an offer to sell, or the solicitation of an offer to buy,
any securities in the United States. The new shares to be offered and sold in the Equity
Raise have not been, and will not be, registered under the U.S. Securities Act of 1933 (the
"U.S. Securities Act") or the securities laws of any state or other jurisdiction of the United
States. Accordingly, the new shares to be offered and sold in the Placement and Retail offer
may not be offered or sold to any person in the United States, except pursuant to an
exemption from, or in a transaction not subject to, the registration requirements of the U.S.
Securities Act and any other applicable U.S. state securities laws.
---
2 Contact | Interim Financial Statements Contact | Interim Financial Statements 3
About these Financial Statements
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
These interim Financial Statements are for Contact, a group made up of Contact Energy Limited, the entities over which it has
control and its associate.
Contact Energy Limited is registered in New Zealand under the Companies Act 1993. It is listed on the New Zealand stock exchange
(NZX) and the Australian Securities Exchange (ASX) and has bonds listed on the NZX debt market. Contact is an FMC reporting entity
under the Financial Markets Conduct Act 2013.
Contact’s interim Financial Statements for the six months ended 31 December 2020 provide a summary of Contact’s performance
for the period and outline significant changes to information reported in the Financial Statements for the year ended 30 June 2020
(2020 Annual Report). The Financial Statements should be read with the 2020 Annual Report.
The Financial Statements have been prepared:
• in millions of New Zealand dollars (NZD) unless otherwise stated
• in accordance with New Zealand generally accepted accounting practice (GAAP) and comply with NZ IAS 34 Interim Financial
Reporting
• using the same accounting policies and significant estimates and critical judgments disclosed in the 2020 Annual Report,
except as disclosed in note A2 and note C2.
• with certain comparative amounts reclassified to conform to the current period’s presentation.
The Financial Statements were authorised on behalf of the Contact Energy Limited Board of Directors on 12 February 2021:
Robert McDonald Dame Therese Walsh
Chair Chair, Audit & Risk Committee
Statement of Comprehensive Income
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
$m Note
Unaudited
6 months ended
31 Dec 2020
Unaudited
6 months ended
31 Dec 2019
Audited
Year ended
30 June 2020
Revenue and other income A2 1,141 1,110 2,073
Operating expenses A2 (895) (889) (1,627)
Change in fair value of financial instruments A2 4 2 -
Depreciation and amortisation C1 (114) (110) (220)
Net interest expense B4 (26) (28) (55)
Profit before tax 110 85 171
Tax expense (32) (26) (46)
Profit 78 59 125
Items that may be reclassified to profit/(loss):
Change in hedge reserves (net of tax) (9) 3 (10)
Comprehensive income 69 62 115
Profit per share (cents) - basic 10.9 8.3 17.5
Profit per share (cents) - diluted 10.9 8.3 17.4
4 Contact | Interim Financial Statements
Contact | Interim Financial Statements 5
Statement of Cash flows
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
$m Note
Unaudited
6 months ended
31 Dec 2020
Unaudited
6 months ended
31 Dec 2019
Audited
Year ended
30 June 2020
Receipts from customers 1,182 1,141 2,058
Payments to suppliers and employees (914) (913) (1,598)
Interest paid
(22) (25) (49)
Tax paid (58) (56) (70)
Operating cash flows 188 147 341
Purchase of assets (36) (46) (94)
Capitalised interest
(4) (3) (6)
Investment in joint venture/associate (4) (1) (3)
Acquisition of Energyclubnz - - (3)
Investing cash flows (44) (50) (106)
Dividends paid B2 (165) (165) (280)
Proceeds from borrowings 127 55 108
Repayment of borrowings (114) (9) (66)
Financing cash flows (152) (119) (238)
Net cash flow (8) (22) (3)
Add: cash at the beginning of the period 44 47 47
Cash at the end of the period 36 25 44
Statement of Financial Position
AT 31 DECEMBER 2020
$m Note
Unaudited
31 Dec 2020
Unaudited
31 Dec 2019
Audited
30 June 2020
Cash and cash equivalents 36 25 44
Trade and other receivables 148 154 191
Inventories 53 52 56
Intangible assets C1 29 26 3
Derivative financial instruments D1 22 23 37
Total current assets 288 280 331
Property, plant and equipment C1 3,963 4,075 4,026
Intangible assets C1 217 234 227
Goodwill 201 179 179
Investment in joint venture/associate
6 11 14
Derivative financial instruments D1 63 71 119
Total non-current assets 4,450 4,570 4,565
Total assets 4,738 4,850 4,896
Trade and other payables 192 172 190
Tax payable 12 7 28
Borrowings B3 247 262 220
Derivative financial instruments D1 64 46 53
Provisions 18 7 10
Total current liabilities 533 494 501
Borrowings B3 890 879 978
Derivative financial instruments D1 79 64 74
Provisions 59 51 58
Deferred tax 638 673 653
Other non-current liabilities 13 9 11
Total non-current liabilities 1,679 1,676 1,774
Total liabilities 2,212 2,170 2,275
Net assets 2,526 2,680 2,621
Share capital B1 1,530 1,527 1,528
Retained earnings 1,047 1,182 1,134
Hedge reserves (58) (36) (49)
Share-based compensation reserve 7 7 8
Shareholders' equity 2,526 2,680 2,621
6 Contact | Interim Financial Statements
Contact | Interim Financial Statements 7
Statement of Changes in Equity
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
$m Note Share capital
Retained
earnings
Other
reserves
Shareholders'
equity
Balance at 1 July 2019 1,523 1,288 (29) 2,782
Profit A2 - 59 - 59
Change in hedge reserves (net of tax) - - 3 3
Change in share-based compensation reserve - - (3) (3)
Change in share capital B1 4 - - 4
Dividends paid B2 - (165) - (165)
Unaudited balance at 31 December 2019 1,527 1,182 (29) 2,680
Profit A2 - 66 - 66
Change in hedge reserves (net of tax) - - (13) (13)
Change in share-based compensation reserve - - 1 1
Change in share capital B1 1 - - 1
Dividends paid B2 - (115) - (115)
Audited balance at 30 June 2020 1,528 1,134 (41) 2,621
Profit A2 - 78 - 78
Change in hedge reserves (net of tax) - - (9) (9)
Change in share-based compensation reserve - - (1) (1)
Change in share capital B1 2 - - 2
Dividends paid B2 - (165) - (165)
Unaudited balance at 31 December 2020 1,530 1,047 (51) 2,526
A. Our Performance
Notes to the Financial Statements for the six months ended 31 December 2020
A1. SEGMENTS
Contact reports activities under the Wholesale segment and the Customer segment. There have been no significant changes to
Contact’s operating segments in the current period.
The Wholesale segment includes revenue from the sale of electricity to the wholesale electricity market, to Commercial & Industrial
(C&I) customers and to the Customer segment, less the cost to generate and/or purchase the electricity and costs to service and
distribute electricity to C&I customers. The results of Simply Energy Limited, following its acquisition on 31 August 2020, have been
included within the Wholesale segment, within the relevant line items. Prior to acquisition date, Contacts share of net earnings of
Simply Energy Limited were included in ‘Unallocated’ other operating expenses.
The Customer segment includes revenue from delivering electricity, natural gas, broadband and other products and services to
mass market customers less the cost of purchasing those products and services, and the cost to service customers.
‘Unallocated’ includes corporate functions not directly allocated to the operating segments.
The Customer segment purchases electricity from the Wholesale segment at a fixed price in a manner similar to transactions with
third parties.
A2. EARNINGS
The tables on the next pages provide a breakdown of Contact’s revenue and expenses, earnings before interest, tax, depreciation
and amortisation, and changes in fair value of financial instruments (EBITDAF) by segment, and a reconciliation from EBITDAF and
underlying profit to profit reported under NZ GAAP.
Revenue from Simply Energy Limited for electricity supply and billing services is included in the ‘C&I electricity - Fixed price’ and
‘C&I electricity - Pass through’ revenue lines. Simply Energy revenue is recognised when energy is supplied for customer
consumption and as billing services are provided. Revenue recognition involves the calculation of unbilled revenue accruals.
The significant items category has been removed in the current reporting period, to improve the understandability of the EBITDAF
measure. The increase in Holidays Act provision recognised in the year ended 30 June 2020 has been reclassified to other operating
expenses, reducing EBITDAF by $5 million with no overall impact to profit. There is no impact in the 6 months ended 31 December
2019 or the 6 months ended 31 December 2020 as the significant items in these periods were the movements in the fair value of
financial instruments which continue to be excluded from EBITDAF as described above.
EBITDAF and underlying profit are used to monitor performance and are non-GAAP profit measures.
8 Contact | Interim Financial Statements
Contact | Interim Financial Statements 9
Unaudited 6 months ended 31 Dec 2020 Unaudited 6 months ended 31 Dec 2019 Audited year ended 30 June 2020
$m
Wholesale Customer Unallocated Eliminations Total Wholesale Customer Unallocated Eliminations Total Wholesale Customer Unallocated Eliminations Total
Mass market electricity
- 446 - - 446 - 450 - - 450 - 861 - (1) 860
C&I electricity - Fixed price
126 - - - 126 152 - - - 152 275 - - - 275
C&I electricity - Pass through
18 - - - 18 12 - - - 12 16 - - - 16
Wholesale electricity, net of hedging
471 - - - 471 425 - - - 425 791 - - - 791
Electricity-related services revenue
4 - - - 4 3 - - - 3 8 - - - 8
Inter-segment electricity sales
183 - - (183) - 169 - - (169) - 332 - - (332) -
Gas
1 41 - - 42 1 41 - - 42 1 74 - - 75
Steam
17 - - - 17 17 - - - 17 26 - - - 26
Broadband
- 13 - - 13 - 7 - - 7 - 17 - - 17
Total revenue
820 500 - (183) 1,137 779 498 - (169) 1,108 1,449 952 - (333) 2,068
Other income
1 3 - - 4 (1) 3 - - 2 - 5 - - 5
Total revenue and other income
821 503 - (183) 1,141 778 501 - (169) 1,110 1,449 957 - (333) 2,073
Electricity purchases, net of hedging
(371) - - - (371) (355) - - - (355) (635) - - - (635)
Electricity purchases - Pass through
(14) - - - (14) (10) - - - (10) (14) - - - (14)
Electricity related services cost
(3) - - - (3) (3) - - - (3) (7) - - - (7)
Inter-segment electricity purchases
- (183) - 183 - - (169) - 169 - - (332) - 332 -
Gas and diesel purchases
(60) (14) - - (74) (54) (13) - - (67) (90) (24) - - (114)
Gas storage costs
(12) - - - (12) (11) - - - (11) (22) - - - (22)
Carbon emissions
(16) (2) - - (18) (11) (2) - - (13) (24) (4) - - (28)
Generation transmission & levies
(14) - - - (14) (21) - - - (21) (32) - - - (32)
Electricity networks, levies & meter costs - Fixed Price
(43) (199) - - (242) (54) (219) - - (273) (95) (414) - - (509)
Electricity networks, levies & meter costs - Pass through
(4) - - - (4) (2) - - - (2) (2) - - - (2)
Gas networks, transmission & meter costs
(4) (20) - - (24) (5) (20) - - (25) (9) (37) - - (46)
Broadband costs
- (15) - - (15) - (7) - - (7) - (17) - - (17)
Other operating expenses
(51) (40) (13) - (104) (48) (41) (13) - (102) (93) (79) (30) 1 (201)
Total operating expenses
(592) (473) (13) 183 (895) (574) (471) (13) 169 (889) (1,023) (907) (30) 333 (1,627)
EBITDAF
229 30 (13) - 246 204 30 (13) - 221 426 50 (30) - 446
Depreciation and amortisation
(114)
(110)
(220)
Net interest expense
(26)
(28)
(55)
Tax on underlying profit
(31)
(25)
(46)
Underlying profit 75 58 125
Change in fair value of financial instruments
4
2
-
Tax on change in fair value of financial instruments
(1)
(1)
-
Profit 78 59 125
Underlying profit per share (cents) 10.5 8.0 17.5
10 Contact | Interim Financial Statements
Contact | Interim Financial Statements 11
A3. FREE CASH FLOW
$m
Unaudited
6 months ended
31 Dec 2020
Unaudited
6 months ended
31 Dec 2019
Audited
Year ended
30 June 2020
EBITDAF 246 221 451
Tax paid (58) (56) (70)
Change in working capital net of investing and financing activities 21 5 7
Non-cash share-based compensation 1 2 2
Net interest paid, excluding capitalised interest (22) (25) (49)
Operating cash flows 188 147 341
Stay in business capital expenditure (31) (27) (51)
Operating free cash flow and free cash flow 157 120 290
Operating free cash flow per share (cents) 21.9 16.8 40.4
A4. RELATED PARTY TRANSACTIONS
Contact’s related parties include its Directors, the Leadership Team (LT) and Drylandcarbon One Limited Partnership. Contact
Energy Limited increased its shareholding in Simply Energy Limited to 100% on 31 August 2020, at which point Simply Energy
Limited became a subsidiary of Contact Energy Limited. Transactions with Simply Energy Limited up to that point are disclosed
below.
$m
Unaudited
6 months ended
31 Dec 2020
Unaudited
6 months ended
31 Dec 2019
Audited
Year ended
30 June 2020
Simply Energy Limited
Electricity contracts 1 - 2
Drylandcarbon One Limited Partnership
Capital contributions (3) - (4)
Key management personnel
Directors' fees (1) (1) (1)
LT - salary and other short-term benefits (3) (3) (5)
LT - share-based compensation expense - (1) (2)
Members of the LT and Directors purchase goods and services from Contact for domestic purposes on normal commercial terms
and conditions. For members of the LT this includes the staff discount available to all eligible employees.
B. Our Funding
Notes to the Financial Statements for the six months ended 31 December 2020
B1. SHARE CAPITAL
Number $m
Balance at 1 July 2019 716,774,782 1,523
Share capital issued 1,302,816 4
Balance at 31 December 2019 718,077,598 1,527
Share capital issued 54,286 1
Balance at 30 June 2020 718,131,884 1,528
Share capital issued 434,021 2
Balance at 31 December 2020 718,565,905 1,530
Comprised of:
Ordinary shares 718,292,191 1,531
Contact Share 273,714 (1)
During the period Contact granted a new tranche of share awards under the Equity Scheme, comprising 228,761 performance
share rights (PSRs) and 301,355 deferred share rights (DSRs). PSRs and DSRs have no exercise price.
B2. DIVIDENDS PAID
$m Cents per share
Unaudited
6 months ended
31 Dec 2020
Unaudited
6 months ended
31 Dec 2019
Audited
Year ended
30 June 2020
2019 final dividend 23 - 165 165
2020 interim dividend 16 - - 115
2020 final dividend 23 165 - -
165 165 280
On 12 February 2021 the Board declared an interim dividend of 14 cents per share to be paid on 30 March 2021.
12 Contact | Interim Financial Statements
Contact | Interim Financial Statements 13
B3. BORROWINGS
$m
Unaudited
31 Dec 2020
Unaudited
31 Dec 2019
Audited
30 June 2020
Bank overdraft 4 2 1
*Commercial paper 80 100 120
*Drawn bank facilities 191 31 64
Lease obligations 22 24 22
*Wholesale bonds - 50 -
*Retail bonds 350 350 350
*Export credit agency facility
50 57 54
*USPP notes
376 447 447
Face value of borrowings 1,073 1,061 1,058
Deferred financing costs (4) (5) (4)
Fair value adjustment on hedged borrowings 68 85 144
Carrying value of borrowings 1,137 1,141 1,198
Current 247 262 220
Non-current 890 879 978
Borrowings denoted with an asterisk (*) are Green Debt Instruments under Contact’s Green Borrowing Programme, which has
been certified by the Climate Bonds Initiative. At 31 December 2020 Contact remains compliant with the requirements of the
programme. Further information is available on the sustainability section on our website.
B4. NET INTEREST EXPENSE
$m
Unaudited
6 months ended
31 Dec 2020
Unaudited
6 months ended
31 Dec 2019
Audited
Year ended
30 June 2020
Interest expense on borrowings (27) (28) (56)
Unwind of discount on provisions (3) (3) (5)
Capitalised interest 4 3 6
Net interest expense (26) (28) (55)
Included within interest expense on borrowings is $1 million (31 December 2019: $1 million, 30 June 2020: $2 million) of interest
expense relating to finance leases.
C. Our Assets
Notes to the Financial Statements for the six months ended 31 December 2020
C1. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Property, plant and equipment
$m
Unaudited
31 Dec 2020
Unaudited
31 Dec 2019
Audited
30 June 2020
Opening balance 4,026 4,126 4,126
Additions 32 41 84
Depreciation (95) (92) (184)
Disposals - - -
Closing balance 3,963 4,075 4,026
Included within property, plant and equipment is $25 million (31 December 2019: $27 million, 30 June 2020: $25 million) of lease
assets with a depreciation charge of $2 million for the six months ended 31 December 2020 (31 December 2019: $2 million, 30
June 2020: $4 million).
Included within additions is capitalised interest of $4 million (31 December 2019: $3 million, 30 June 2020: $6 million) in relation
to capital works underway at the Tauhara geothermal field.
Intangibles
$m
Unaudited
31 Dec 2020
Unaudited
31 Dec 2019
Audited
30 June 2020
Opening balance 230 260 260
Additions 35 18 33
Amortisation (19) (18) (36)
Disposals - - (27)
Closing balance 246 260 230
Current 29 26 3
Non-current 217 234 227
At 31 December 2020, Contact was committed to $8 million of capital expenditure (31 December 2019: $13 million, 30 June 2020:
$8 million) and $8 million of carbon forward contracts (31 December 2019: $31 million, 30 June 2020: $33 million), all of which are
due within one year of the reporting period end.
Rio Tinto announced on 14 January 2021 that New Zealand’s Aluminium Smelter will continue to operate until the end of 2024, and
Contact has now reached its final investment decision on, and will proceed with, the development of the Tauhara geothermal plant.
Contact is undertaking a strategic review of its thermal assets, from which Taranaki Combined Cycle (TCC) assets with a net book
value of $107 million will be fully depreciated by 31 December 2023.
A useful life review of existing Wairākei assets will also be undertaken in the second half of FY21, allowing for future considerations
of how the existing Wairākei A & B stations will be replaced. This may impact the useful life assessment of Wairākei assets going
forward.
14 Contact | Interim Financial Statements
Contact | Interim Financial Statements 15
C2. GOODWILL AND ASSET IMPAIRMENT TESTING
Contact has two cash-generating units (CGUs): Wholesale and Customer. The Customer CGU includes goodwill of $179 million (31
December 2019 and 30 June 2020: $179 million), and the Wholesale CGU includes goodwill of $23 million, following acquisition of
Simply Energy Limited in the period (31 December 2019 and 30 June 2020: $nil). Capital work in progress (CWIP) includes $150
million (31 December 2019: $116 million, 30 June 2020: $140 million) related to future generation developments not allocated to a
CGU.
Contact Energy Limited increased its shareholding in Simply Energy Limited to 100% on 31 August 2020, as part of its efforts to
accelerate decarbonisation and provide commercial & industrial customers with valuable, innovative energy solutions. The
provisional goodwill of $23 million reflects the capabilities that Simply provides and includes $7.5 million fair value of expected
performance payments which are linked to decarbonisation and earnings targets (possible performance payments of $nil - $15
million).
No impairments were recognised in the current or prior period. Future cash flows were assessed on the basis that New Zealand’s
Aluminium Smelter continues to operate until the end of 2024, reflecting the Rio Tinto announcement of 14 January 2021. This
supports the carrying value of the CGUs and future generation development CWIP.
Sensitivities
The calculation of the value in use for the CGUs is most sensitive to the wholesale electricity prices and the post-tax discount rate.
The sensitivity of the valuation model to the wholesale electricity prices and discount rate, where all other inputs remain constant,
is as follows:
Significant unobservable inputs Sensitivity Impact $m
Post tax discount rate
-0.5% 540
+0.5% -444
Wholesale electricity price path
+10% 346
-10% -346
The value in use exceeds the carrying value for all sensitivities carried out.
16 Contact | Interim Financial Statements
Contact | Interim Financial Statements 17
D. Financial Risks
Notes to the Financial Statements for the six months ended 31 December 2020
D1. SUMMARY OF DERIVATIVE FINANCIAL INSTRUMENTS
A summary of derivatives and the impact on Contact’s financial position is provided below grouped by type of hedge relationship.
Unaudited at 31 December 2020 Unaudited at 31 December 2019 Audited at 30 June 2020
Fair value
hedge
Cash flow and fair
value hedge
Cash flow hedge No hedge
relationship
Fair value
hedge
Cash flow and fair
value hedge
Cash flow hedge No hedge
relationship
Fair value
hedge
Cash flow and fair
value hedge
Cash flow hedge No hedge
relationship
$m IRS CCIRS IRS
Electricity price
derivatives
Electricity price
derivatives Total IRS CCIRS IRS
Electricity price
derivatives
Electricity price
derivatives Total IRS CCIRS IRS
Electricity price
derivatives
Electricity price
derivatives Total
Carrying value of derivatives - asset 9 59 1 5 11 85 7 78 - 2 7 94 12 131 - 8 5 156
Carrying value of derivatives - liability - (7) (75) (52) (9) (143) - (4) (70) (31) (5) (110) - (1) (90) (33) (3) (127)
Carrying value of hedged borrowings (196) (435) - - - (631) (244) (523) - - - (767) (199) (578) - - - (777)
Fair value adjustments to borrowings (9) (59) - - - (68) (7) (78) - - - (85) (12) (132) - - - (144)
Change in fair value of financial
instruments to profit/(loss) - 1 2 - 1 4 - - 2 - - 2 - - 2 - (2) -
Hedge effectiveness recognised in
OCI - (6) 11 (43) - (38) - 1 2 (12) - (9) - 2 (20) (19) - (37)
Amounts reclassified to profit/(loss) - - 3 21 - 24 - - 3 10 - 13 - - 5 19 - 24
The cross currency interest rate swaps (CCIRS) liability arises from the cash flow hedge component.
18 Contact | Interim Financial Statements
Contact | Interim Financial Statements 19
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the interim financial statements on
pages 2 to 17 do not:
i. present fairly in all material respects the company’s financial
position as at 31 December 2020 and its financial performance
and cash flows for the six month period ended on that date; and
ii. comply with NZ IAS 34 Interim Financial Reporting.
We have completed a review of the accompanying interim
financial statements which comprise:
• the statement of financial position as at 31 December 2020;
• the statements of comprehensive income, changes in equity
and cash flows for the six month period then ended; and
• notes, including a summary of significant accounting policies
and other explanatory information.
Basis for conclusion
A review of interim financial statements in accordance with NZ
SRE 2410 Review of Financial Statements Performed by the
Independent Auditor of the Entity (“NZ SRE 2410”) is a limited
assurance engagement. The auditor performs procedures,
consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and
other review procedures.
As the auditor of Contact Energy Limited, NZ SRE 2410 requires
that we comply with the ethical requirements relevant to the
audit of the annual financial statements.
Our firm has also provided other services to the company in
relation to Trustee reporting and other assurance for Greenhouse
gas emissions reporting, Global Reporting Initiative Indicators and
Green Borrowings Programme reporting. Subject to certain
restrictions, partners and employees of our firm may also deal
with the company on normal terms within the ordinary course of
trading activities of the business of the company. These matters
have not impaired our independence as reviewer of the company.
The firm has no other relationship with, or interest in, the
company.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our
review work has been undertaken so that we might state to the
shareholders those matters we are required to state to them in
the Independent 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 shareholders as a body for
our review work, this report, or any of the opinions we have
formed.
Responsibilities of the Directors for the interim financial
statements
The Directors, on behalf of the company, are responsible for:
• the preparation and fair presentation of the interim financial
statements in accordance with NZ IAS 34 Interim Financial
Reporting;
• implementing necessary internal control to enable the
preparation of interim financial statements that is fairly
presented and free from material misstatement, whether
due to fraud or error; and
• assessing the ability to continue as a going concern. This
includes disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless they either intend to liquidate or to cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim
financial statements
Our responsibility is to express a conclusion on the interim
financial statements based on our review. We conducted our
review in accordance with NZ SRE 2410. NZ SRE 2410 requires us
to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with NZ IAS 34
Interim Financial Reporting.
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 interim financial
statements.
This description forms part of our Independent Review Report.
KPMG
Wellington
12 February 2020
Corporate Directory
BOARD OF DIRECTORS
Robert McDonald (Chair)
Victoria Crone
Whaimutu Dewes
Jon Macdonald
David Smol
Elena Trout
Dame Therese Walsh
LEADERSHIP TEAM
Mike Fuge
Chief Executive Officer
Jan Bibby
Chief People Officer
Venasio-Lorenzo Crawley
Chief Customer Officer
Dorian Devers
Chief Financial Officer
James Kilty
Deputy Chief Executive Officer
Jacqui Nelson
Chief Generation Officer
Catherine Thompson
Chief Corporate Affairs Officer and General Counsel
REGISTERED OFFICE
Contact Energy Limited
Harbour City Tower
29 Brandon Street
Wellington 6011
New Zealand
Phone: +64 4 499 4001
Find us on Facebook, Twitter, LinkedIn and Youtube by
searching for Contact Energy
COMPANY NUMBERS
NZ Incorporation 660760
ABN 68 080 480 477
AUDITOR
KPMG
PO BOX 996
Wellington 6140
REGISTRY
Change of address, payment instructions and investment
portfolios can be viewed and updated online:
investorcentre.linkmarketservices.co.nz
investorcentre.linkmarketservices.com.au
New Zealand Registry
Link Market Services Limited
PO Box 91976, Auckland 1142
Level 11, Deloitte Centre
80 Queen Street, Auckland 1010
contactenergy@linkmarketservices.co.nz
Phone: +64 9 375 5998
Australian Registry
Link Market Services Limited
Locked Bag A14, Sydney
South, NSW 1235
680 George Street, Sydney, NSW 2000
contactenergy@linkmarketservices.com.au
Phone: +61 2 8280 7111
INVESTOR ENQUIRIES
Matthew Forbes
GM Corporate Finance
investor.centre@contactenergy.co.nz
Phone: +64 4 462 1323
SUSTAINABILITY ENQUIRIES
Nakia Randle
Sustainability Advisor
nakia.randle@contactenergy.co.nz
To the shareholders of Contact Energy Limited
Report on the interim financial statements
Independent Review Report
---
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Tauhara investment and
capital management plan
2
This presentation has been prepared by Contact Energy Limited (the Company) in relation to an offer of new shares in the
Company (New Shares) by way of:
•a placement to eligible institutional and other selected investors (Placement); and
•a retail share offer to existing shareholders of the Company with a registered address in New Zealand or Australia (Retail
Offer),
in New Zealand under clause 19 of Schedule 1 to the Financial Markets Conduct Act 2013 (FMCA), and in Australia under part
6D.2 of the Corporations Act 2001 (Cth), as notionally modified by Australian Securities and Investments Commission (ASIC)
Corporations (Share and Interest Purchase Plans) Instrument 2019/547 and ASIC Instrument 21-0144 (the Corporations Act) (the
Placement and the Retail Offer, together, are referred to as the Offer).
Information
This presentation contains summary information about the Company and its activities that is current as of the date of this
presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it contain
all the information which a prospective investor may require in evaluating a possible investment in the Company or that would
be required in a product disclosure statement for the purposes of the FMCA. The Company is subject to disclosure obligations
that require it to notify certain material information to NZX Limited (NZX) and ASX Limited (ASX). This presentation should be
read in conjunction with the Company's other periodic and continuous disclosure announcements released to NZX and ASX
(which are available at www.nzx.comand www.asx.com.auunder the ticker code "CEN"). No information set out in this
presentation will form the basis of any contract.
NZX and ASX
The New Shares will be quoted on the NZX Main Board following completion of each of the Placement and the Retail Offer, and
an application will be made by Contact for the New Shares to be quoted on the ASX. Neither NZX nor ASX accepts any
responsibility for any statement in this presentation. NZX is a licensed market operator, and the NZX Main Board is a licensed
market under the FMCA.
Not financial product advice
This presentation does not constitute legal, financial, tax, accounting, financial product or investment advice or a
recommendation to acquire the Company's securities (including the New Shares), and has been prepared without taking into
account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors
should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and
consult a financial adviser, solicitor, accountant or other professional adviser if necessary.
Investment risk
An investment in securities in the Company is subject to investment and other known and unknown risks, some of which are
beyond the control of the Company. Section 5 ("Key Risks") of this presentation includes a non-exhaustive summary of certain key
risks associated with the Company and the Offer. The Company does not guarantee the performance of the Company or any
return on any securities of the Company.
Not an offer
This presentation is not a prospectus or product disclosure statement or other offering document under New Zealand or Australian
law or any other law (and will not be filed with or approved by any regulatory authority in New Zealand, Australia or any other
jurisdiction). This presentation is for information purposes only and is not an invitation or offer of securities for subscription,
purchase or sale in any jurisdiction. Any decision to purchase New Shares in the Retail Offer must be made on the basis of all
information provided in relation to the Offer, including information to be contained or referred to in a separate offer document
which will be available following its release via NZX and ASX (Offer Document). Any eligible shareholder who wishes to participate
in the Retail Offer should consider the Offer Document in deciding to apply under that offer. Anyone who wishes to apply for New
Shares under the Retail Offer will need to apply in accordance with the instructions contained in the Offer Document and the
application form. The distribution of this presentation outside New Zealand or Australia may be restricted by law. Any recipientof
this presentation who is outside New Zealand or Australia must seek advice on and observe any such restrictions. Refer Section 6of
this presentation ("International Offer Restrictions") for information on restrictions on eligibility criteria to participateinthe Offer.
Restrictions on distribution
This presentation is not for distribution or release in the United States. This presentation does not constitute an offer tosell, or the
solicitation of an offer to buy, any securities in the United States. The New Shares have not been, and will not be, registeredunder
the US Securities Act of 1933 (US Securities Act), or the securities laws of any state or other jurisdiction of the United States.
Accordingly the New Shares to be offered and sold in the Placement and the Retail Offer may not be offered or sold, directly or
indirectly, in the United States, except in transactions exempt from, or not subject to, registration under the US SecuritiesAct and
applicable securities laws of any state or other jurisdiction of the United States.
Financial data
All dollar values are in New Zealand dollars (NZ$ or NZD) unless otherwise stated.
This presentation includes certain financial measures that are "non-GAAP (generally accepted accounting practice) financial
information" under Guidance Note 2017: 'Disclosing non-GAAP financial information' published by the New Zealand Financial
Markets Authority, "non-IFRS financial information" under ASIC Regulatory Guide 230: 'Disclosing non-IFRS financial information'
and "non-GAAP financial measures" within the meaning of Regulation G under the U.S. Exchange Act of 1934. Disclosure of such
non-GAAP financial measures in the manner included in this presentation would not be permissible in a registration statement
under the U.S. Securities Exchange Act of 1934.Such financial information and financial measures (including EBITDAF, underlying
profit, free cash flow and operating free cash flow) do not have standardised meanings prescribed under New Zealand equivalents
to International Financial Reporting Standards ("NZ IFRS"), Australian Accounting Standards ("AAS") or International Financial
Reporting Standards ("IFRS") and therefore, may not be comparable to similarly titled measures presented by other entities, and
should not be construed as an alternative to other financial measures determined in accordance with NZ IFRS, AAS or IFRS.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
3
Disclaimer
None of the Company, Macquarie Capital (New Zealand) Limited (acting through Macquarie Securities (NZ) Limited and its
affiliates) and Jarden Securities Limited (“Lead Managers”), or Macquarie Securities (NZ) Limited and Jarden Partners Limited
(“Underwriters”), nor their respective related companies and affiliates including, in each case, their respective shareholders,
directors, officers, employees, agents and advisers, as the case may be (Specified Persons), have independently verified or will
verify any of the content of this presentation and none of them are under any obligation to you if they become aware of any
change to or inaccuracy in the information in this presentation.
To the maximum extent permitted by law, each Specified Person disclaims and excludes all liability (whether in tort (including
negligence) or otherwise) for any direct or indirect loss, damage or other consequence (whether foreseeable or not) suffered by
any person: from the use of or reliance on the information contained in, or omitted from, this presentation; from refraining from
acting because of anything contained in or omitted from this presentation; or otherwise arising in connection therewith (including
for negligence, default, misrepresentation or by omission and whether arising under statute, in contract or equity or from any
other cause). To the maximum extent permitted by law, no Specified Person makes any representation or warranty, either express
or implied, as to the currency, fairness, accuracy, completeness or reliability of the information contained in this presentation. You
agree that you will not bring any proceedings against or hold or purport to hold any Specified Person liable in any respect for this
presentation or the information in this presentation and waive any rights you may otherwise have in this respect.
None of the Lead Managers or the Underwriters or any of their respective affiliates, related bodies corporate, directors, officers,
partners, employees, agents or advisers have authorised, permitted or caused the issue, submission, dispatch or provision of this
presentation and none of them makes or purports to make any statement in this presentation and there is no statement in this
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respective affiliates, related bodies corporate, directors, officers, partners, employees, agents or advisers take responsibility for any
part of this presentation, or the Offer, and make no recommendations as to whether you or your related parties should participate
in the Offer, nor do they make any representations or warranties to you concerning the Offer. You represent, warrant and agree
that you have not relied on any statements made by the Lead Managers, Underwriters, or their respective affiliates, related bodies
corporate, directors, officers, partners, employees, agents or advisers in relation to the Offer and you further expressly disclaim
that you are in a fiduciary relationship with any of them. No person named in this presentation or any of their affiliates accept or
shall have any liability to any person in relation to the distribution of this presentation from or in any jurisdiction.
This presentation contains data sourced from and the views of independent third parties. In such data being replicated in this
presentation, no Specified Person makes any representation, whether express or implied, as to the accuracy of such data. The
replication of any views in this presentation should not be treated as an indication that the Company or any other Specified Person
agrees with or concurs with such views.
Forward-looking statements
This presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and
business of the Company. Forward-looking statements can generally be identified by the use of words such as 'project', 'foresee',
'plan', 'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' or similar expressions. Forward-looking
statements in this presentation include statements regarding the timetable, conduct and outcome of the Offer and the use of
proceeds thereof, statements about the timing and cost of the Tauhara geothermal project, the timing and costs of other potential
Contact projects, the future of the Tiwai Point aluminium smelter, alternative sources of electricity demand and the outlook for
New Zealand’s energy market generally, and Contact’s future financial performance.
Any indications of, or guidance or outlook on, future earnings or financial position or performance and future distributions arealso
forward-looking statements. All such forward-looking statements involve known and unknown risks, significant uncertainties,
assumptions, contingencies, and other factors, many of which are outside the control of the Company, which may cause the actual
results or performance of the Company to be materially different from any future results or performance expressed or implied by
such forward-looking statements. Such forward-looking statements speak only as of the date of this presentation. Except as required
by law or regulation (including the NZX Listing Rules and the ASX Listing Rules), the Company undertakes no obligation to update
these forward-looking statements for events or circumstances that occur subsequent to the date of this presentation or to updateor
keep current any of the information contained herein. Any estimates or projections as to events that may occur in the future
(including projections of revenue, expense, net income and performance) are based upon the best judgement of the Company from
the information available as of the date of this presentation. A number of factors could cause actual results or performancetovary
materially from the projections, including the risk factors set out in this presentation. Investors should consider the forward-looking
statements in this presentation in light of those risks and disclosures.
You are strongly cautioned not to place undue reliance on any forward-looking statements, particularly in light of the current
economic climate and the significant volatility, uncertainty and disruption caused in relation to the Company and otherwise by the
COVID-19 pandemic.
Past performance
Past performance information provided in this presentation is given for illustrative purposes only and should not be relied uponas
(and is not) a promise, representation, warranty or guarantee as to the past, present or future performance of the Company.
General
For the purposes of this Disclaimer and Important Notice, "presentation" means the slides, any oral presentation of the slides by the
Company, any question-and-answer session that follows that oral presentation, hard copies of this presentation and any materials
distributed at, or in connection with, that presentation.
The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to
change without notice. The Company reserves the right to withdraw, or vary the timetable for, the Placement and/or the Retail
Offer, without notice.
Acceptance
By attending or reading this presentation, you agree to be bound by the foregoing limitations and restrictions and, in particular, will
be deemed to have represented, warranted, undertaken and agreed that: (i) you have read and agree to comply with the contents
of this Disclaimer and Important Notice; (ii) you are permitted under applicable laws and regulations to receive the information
contained in this presentation; (iii) you will base any investment decision solely on information released by the Company viaNZX
and ASX (including, in the case of the Retail Offer, the Offer Document); and (iv) you agree that this presentation may not be
reproduced in any form or further distributed to any other person, passed on, directly or indirectly, to any other person or
published, in whole or in part, for any purpose.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Executive summary
1
Investment thesis
Funding strategy
Summary
2
3
4
5-6
7-16
17-21
22
5
6
7
Key risks
Summary of placement agreement
International offer restrictions
23-26
27
28-31
4
8
Glossary of key terms
32
What
New Zealand is in the early stages of a decades-long transformation from reliance on fossil fuels to
renewable electricity. This transformation is being driven by strong tailwinds, including:
Supportive regulatory framework
Climate change –society is demanding action, with clear progress expected
Quality, long-life renewables that can economically replace thermal assets
A long history of renewable energy development and innovation
World class renewable resources; including geothermal
Why
Contact is well placed among world-leading geothermal developers and operators:
Tauhara provides the option to increase Contact’s geothermal generation significantly
Core experienced team retained since TeMihi build
Contact believes this is the most economic renewable scale generation opportunity in New Zealand
1
Outcomes
Delivering for our stakeholders:
Growing economic profit with strong project returns expected above the cost of capital
Playing a role in New Zealand’s economic recovery –specifically supporting regional economies
Delivering on our objective of building a better New Zealand and delivering value to our stakeholders
alongside sustainable, long-term growth
Aligns to New Zealand’s Zero Carbon 2050 ambitions and updated 2030 targets
How
Supported by a $400m equity raise and a new distribution policy
Contact sees a clear pathway to long-term value creation, with significant investment
opportunities in our core markets and in line with our unique capability
5
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
1
Excludes renewable projects already operational
6
NZAS update
•~4 year term agreed with Meridian, ending 31
December 2024 announced on 14 January 2021.
•No unilateral NZAS right to extend, will have to
compete with alternative demand sources for
further contract extension.
•Contact has committed to an average of ~100MW
support contract with Meridian. If the smelter’s
arrangement with Meridian reduces then Contact’s
support reduces accordingly. Competitive lower
pricing reflects the relative contract certainty
negotiated compared to the previous contract.
•Looking forward, strong indicative interest for long-
term baseload renewable energy in the lower South
Island received from credible and well-capitalised
counterparties.
•Contact analysis suggests NZAS is now in the top half
of the global aluminium cost curve.
Tauhara geothermal investment approved
•Committed to investment in a 152MW low carbon renewable
project.
•$580m in estimated go-forward capital expenditure¹.
•Expected commissioning by Q2 2023.
•Projected EBITDAF uplift of ~$85m p.a. at wholesale price of
$80/MWh.
Executable investment pipeline with optionality
(should market conditions allow)
•North Island battery investment.
•Wairakei geothermal plant replacement and expansion.
•Hydro turbine refurbishment programme.
•Decarbonisation investment via Dryland carbon and Simply Energy.
A strategic review of the future role of all thermal
assets in the Contact portfolio has commenced
Offer forms part of the funding
programme which will support
the investment programme
Equity raising overview: $325m Placement
and $75m
2
Retail Offer.
New dividend policy
•Contact’s policy is to distribute ordinary
dividends targeting a pay-out ratio of
between 80 and 100% of the average
Operating Free Cash Flow of the
preceding four financial years
3
.
•Equates to an ordinary dividend35 cps
4
for FY21.
•Dividend reinvestment plan launched to
provide a cost-effective way for
shareholders to reinvest dividends –
effective 2H21.
312
Well-positioned to put capital to work in Contact’s areas of core competence
¹ Excludes capitalised interest or capitalised transmission asset
2
With the ability to accept oversubscriptions
³ This includes Board consideration of the sustainable financial structure of Contact including the targeting of a long-term investment grade credit rating. Dividend payments are expected to be split into an interim dividend paid in March, targeting around40% of the total
expected dividend for the financial year, and a final dividend to be paid in December. It is the intention of the Board to attach imputation credits to dividends to the extent they are available.
4
See slide 18 and 19
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
NZAS retained
for at least
4 years
•NZAS agreement provides medium term
certainty.
•Near term demand strengthand higher gas
and carbon prices underpin medium term
profitability.
•Provides time formarket to adjustfora
potentialNZAS exit through transmission
upgrades and attracting new demand.
•A recoveringpost COVID-19 world
economy which is increasingly focused on
clean energy supply chains,may see a
change in the value attributed to NZAS in
the future.
Market is
entering a
build phase
•Consistently elevated wholesale prices
above firmed renewable LRMC driven by
flexible fuel shortage.
Cost of firming
expected to
increase
•Less thermal generation expected as it is
substituted by renewables –but fixedcosts
will still need to be recovered.
•Natural gas fields becoming less reliable.
•Increased cost of thermal fuel.
•Batteries to start to play a role.
The marketContact’s positioning
Capital structure
to support
growth
•Refreshed capital structure provides the flexibility to fund
growth ambitions.
Highest
quality
renewable
asset
pipeline
•Contact is among the world’s leading geothermal developers and
believes Tauhara is New Zealand’s pre-eminent scale renewable
development project. We believe it is the most economic and
importantly is a firmed option (compared to windand solar
opportunities). With estimated go-forward capex of $0.6Bn¹it is
expected to bring 152MW of baseloadgeneration to market.
•A further $0.8Bnpipeline in best in class long-life renewable
projects including a replacement and expansion of Wairakei up to
~167MW and 50MW of batterystorage can be developed in the
medium-term to deliver shareholder value through the cycle.
•Tauhara and optionality on Wairakei means Contact is ideally
placed to build New Zealand’s most efficient renewable projects to
meet any new market demand over the medium-term.
Resilient
and flexible
asset base
•Contact has a portfolio of long-life renewable generation assets
complemented with risk management flexibility which provides
downside hydrology protection.
•Contact’s customer business limits immediate exposure in the
event of lower wholesale spot prices and, with one of the lowest
cost to serve² in the market, is well placed to compete strongly.
•Success of adjacent broadband offering demonstrates the strong
customer value proposition.
Contact is where it wants to be
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¹ Excludes capitalised interest
² Customer operating costs / customer connections
7
8
Maintaining
demand-supply
balance key
Decarbonisation
growth
opportunities
Investment
in renewable
supply
1
2
3
4
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Disciplined capital allocation will continue to be important
9
Strong wholesale electricity market fundamentals to 2024
•Forward market pricing is strongly signalling new build.
•We believe the market will respond with or without
Contact.
•Investment in Tauhara ensures that what we believe is the
best project is part of the pipeline.
•Most certainty around NZAS demand since 2013.
•Potentially improving outlook for green aluminium in the
future as climate change pressure builds –improving NZAS
relative economics to fossil fuel backed supply.
Post 2024, NZAS could extend
operations if renewable
aluminium market conditions
are conducive.
Will have to compete with
alternative demand sources.
The next four years allows for time for:
•Rational wholesale market PPAs to be agreed.
•Legacy gas contracts to roll off and alternative
users to be found / contracted.
•Orderly thermal asset retirements.
•A range of dry year options to be assessed.
•Attracting new large industrial customers,
including time to deploy capital.
NZAS exits which is
largely a supply side
decarbonisation
opportunity plus new
to market large users
in the South Island.
Data centres
100
650
2,050
Global clean energy opportunities
•Inbound interest since the July 2020 NZAS
announcement of termination of electricity supply.
•Multiple live enquiries collectively targeting 2000
MW + of green electricity for applications in a range
of end use markets.
•Indicative ability to pay of between $45-$65/MWh.
•Early stages only.
MW
potential
Domestic conversion potential
•Schools, dairy and hospitals.
•Indicative ability to pay based on alternative energy sources and risk
tolerance.
Why hydrogen?
Process heat conversion
Hydrogen based green chemicals
and ammonia production
or
1.Decarbonise industrial processes –many industrial nations do not have renewable
endowments.
2.Demand response potential –low carbon contribution to daily peaking and dry year problem.
3.Could stimulate domestic hydrogen market.
•First mover opportunity for one large-scale long-term contract. Any
demand above that would need to provide adequate return to
support new capital investment.
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New industrial demand
FY17FY18FY19
7776
FY20
81
59
FY21 (f)
62
Carbon
Gas
Contact gas plant fuel cost ($/MWh)
Long-run marginal cost (LRMC) by technology ($/MWh)
Cumulative new project generation (TWh)¹
Geothermal is
projected to be
New Zealand’s
lowest cost
renewable
Increasing cost
of risk
management will
impact returns
from
intermittent
renewables
0
100
120
80
20
40
60
208410612241416182022
Gas baseload
Hydro
Geothermal
Wind
Grid scale solar
¹ Source: Energy Efficiency and Conservation Authority, 2018, and Contact data for LRMC for Tauhara from testing and calculations made in the project business case
Geothermal will play a significant role
in the decarbonisation of New Zealand
Intermittent renewables still carry risk management
costs for firming. These costs are linked to thermal
fuel costs which Contact expects will continue to
rise, especially when latent hydro firming capacity is
exhausted
Geothermal energy is a low-cost and indigenous fuel that has been harnessed by New Zealanders for generations. It is uniquely
reliable, with geothermal power stations in New Zealand typically achieving capacity factors of 95%, compared to typical load
factors of between 30 –50% for hydro and wind power stations.
Wairakei Power Station has operated at an average load factor of 90%+ for more than 60 years
Note LRMC does not include the costs of firming which is an additional cost for wind and solar
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
10
Operational experience on the world’s second longest electricity producing geothermal field (Wairakei, since 1958).
Capability in construction management, consenting and stakeholder engagement.
We have maintained a dedicated, internationally-recognised, subsurface teamto lower the cost of operations and
believe we are New Zealand’s lowest cost geothermal operator
1
Most recent geothermal developments
Te Mihi (2014) 166MWTe Huka (2010) 28MWBioreactor (2012)
Provide geothermal consultancy services
internationally.
Developing new live well clean-out
techniques.
Cementing R&D to reduce costs.
Custom drill bit specifications tailored to
expected geological formations.
2008-20 Contact generation mix
2008
20122010
2014
2016
20182020
+2.9TWh
Thermal
Renewables
1. TeHuka commissioned
2. Peakerscommissioned
3. TeMihi commissioned
4. Otahuhu B closed
5. Expected Tauhara
commissioning
6. Projected outlook
Executing on
our multi-decade
strategy to
substitute
thermal
Geothermal is
cheaper and more
reliable than our
combined cycle
gas plant (TCC)
Innovation
% renewable
1
2
3
4
5
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¹ Of the large scale geothermal operators in New Zealand: Mercury and Contact.
2
Depending on the outcome of the thermal strategic review.
11
6
55% 62% 61% 61% 55% 61% 71% 76% 82% 79% 80% 84% 84% 95%
2024
2
New Zealand's premium renewable project
12
Low carbon resource
0.05T of C02e/MWh
(Gas CCGT ~9x more, Gas Peaker ~11x
more)
Estimated MW
(net export to grid)
152.5MW
Estimated plant capacity
factor/
annual generation
96% / ~1,300GWh
Estimated cash costs of
generation
2
~$15/MWh
Estimated % of forward
capital spend in NZD
>65%
% of production/injection
capacity secured
~60% / ~15%
Total estimated construction costs
related to this phase of development
(2008 –2024)
3
$678m ($4.4m/MW)
Estimated forward capital
expenditure (cash)¹
$580m
¹ Excluding capitalised interest
² Includes operating costs, carbon costs and stay-in-business capex (excluding make-up drilling and major mid-life capex replacement)
3
The total addition to PPE on Tauhara commissioning will include ~$18m capitalised transmission asset, ~$70m of capitalised interest ($27m sunk) and $24m of residual sunk capex related to the next phase of development of the field expected total of
$790m ($678m + $18m + $70m + $24m)
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Contact’s expertise to expand production at Tauhara
13
Tauhara field already producing with TeHuka.
90MW equivalent of fuel already secured during appraisal drilling, which is beyond expectations for this stage of the project.
Core experienced team that built TeMihi.
Fixed price EPC contract signed with Sumitomo corporation
1
.
Variable contracting structure for drilling/field facilities aligned to extract most value from Contact subsurface capability.
Current discussions for baseloadTauhara backed PPA.
Limited expected impact from COVID-19; mitigation plans include predominantly using New Zealand based contractors.
Project
readiness
Construction timeline
2
15 February 2021
EPC Signed
mid-2023
First power
0.2
2.6
1.3
1.1
Te HukaTauharaTauhara IIGeneration at
current
consent
Operational
Under
development
Available under our
current consent
Q3 2022
Drilling completed
Tauhara field consented development (TWhper annum)
Elements of current investment programme infrastructure sized to service future
development
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1
Sumitomo Corporation with major partners Fuji Electric and Naylor Love
2
As at February 2021
14
Investment and descriptionStrategic rationale
Estimated
investment decision
timed to meet the
market
Estimatedforward
capital
Wairakei geothermal plant replacement and
expansion (~167MW), could increase
geothermal capacity by 70MW
Replace 68 year old Wairakei powerstation with a larger, more
efficient new technology geothermal station.
2022/2023
$0-$700m
North Island battery investment (50MW)
Effectively increases HVDC flow capacity through the provision of
reserves.
Value of flexibility asset, including price arbitrage and provision of
risk management flexibility if the market pricing becomes
increasingly volatile.
$0 -$60m
Hydro turbine refurbishment programme
–2.5% increase inoutput on the same water
flow through Roxburgh
Replace Roxburghturbines with more efficient plant, increasing
renewable generation.
Investmenttiming
flexible
$0 -$30m
Decarbonisation investment via
Drylandcarbonand Simply Energy
Growelectricity demand through deeper partnerships and
innovation.
Invest in afforestation projects which produce carbon units.
$20 -$50m
Balance sheet flexibility to invest in NPV positive projects if market conditions are supportive
Decision gates for major capital spend on this pipeline align well with when Contact will have a clearer view of demand
post 2024 and when new demand sources will need to be committing to PPAs and capital investment
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Consenting and community
Consents on the Wairakei Field expire in 2026 –
with the geothermal fluid take, water use and
discharge consents being key.
All stakeholder groups need to be considered –this
includes national as well as local issues.
Contact will seek an up to 5 year extension of the
Wairakei station consents to enable reasonable
flexibility over our transition to replacement
generation on the field.
Reservoir trends
We must understand the trends of the reservoir
over time, the sustainable fluid take and how to
make best use of the energy available.
The resource is performing better than expected.
Surface facilities
The TeMihi and Poihipiplants utilise modern
technology including cooling towers. The Wairakei
plant (A and B Stations) relies on the Waikato River
for cooling water supply and are 60 years old.
Some modifications to the plant are likely required
to manage discharges and to extend asset lifetimes.
Battery value pools
Wairakei consenting considerations
Introduction to capital investment pipeline
Source: Rocky Mountain Institute
In addition to managing North Island reserves to effectively
increase HVDC flow in the event of a NZAS exit, Contact is
building the business case to provide a range of services suited to
a grid-scale battery
Battery services across the value chain
2031
Prepare consent
application for a
range of outcomes
Current consent
conditions expire
Wairakei
investment
horizon
2026
Date targeted for
extension request
2020
Indicative timeline
15
16
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
FY24FY23FY21FY22FY28FY25FY26FY27
Ohaaki fieldTe Huka power stationWairakei fieldTauhara power stationGeoFuture(167MW case)
Contact is targeting Wairakei optionality to allow for investments to be sized and timed to meet market
demand
Geothermal generation profile (GWh per annum)
Estimated $1.3b investment in new geothermal development
Wairakei optionality (GeoFuture)
We are developing a
flexibility in future investment
paths, enabling us to respond to
changing conditions:
•Expand generation:
Construct an expanded
~167MW power station.
•Extend generation:
Invest in extension of
Wairakei to FY31. Consenting
programme and asset
capability investigations
underway.
•Do not invest
Limited capital spend, annual
geothermal generation
reduces (Wairakei A&B
generation was 954GWh in
FY20).
~3,300 GWh*
FY18-20 average
Contact continually tests the market
to confirm the relative value of
alternative generation fuels that
might be on more favourable cost
curves.
Wairakei will still need to compete
for scarce capital
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* Variations to long-run averages are as a result of planned maintenance outage and forecast enthalpy decline
1
2
Sustainable ordinary dividend
Equity raise for Tauhara
17
The equity funding strategy balances the high value our
shareholders place on dividends with capital efficiency
$400m
1
Targeting a pay-out ratio
of between 80 and 100%
of the average Operating
Free Cash Flow
2
FY21: 35 cps
700
30
50
Hydro refurbishment
60
Decarbonisation spend
Tauhara
(committed)
Battery
580
Wairakei
$1,420m
Medium-term capital
investment programme
(uncommitted)
Complementing conventional debt funding and potential hybrid debt instruments, Contact
intends to access equity funding to support investment programme
Rationale
Competitive dividend against peers allowing for
Wairakei investment and providing some balance
sheet flexibility.
Provides investors with choice to
participate to fund Tauhara growth
Investments will be
sized to meet the
market
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Commitment to maintaining S&P investment grade credit
rating
1
With the ability to accept oversubscriptions
2
Contact’s policy is to distribute ordinary dividends targeting a pay-out ratio of between 80 and 100% of the average Operating Free Cash Flow of the preceding four financial years. This includes Board consideration of the sustainable financial structureofContact including the
targeting of a long-term investment grade creditrating. Dividend payments are expected to be split into an interim dividend paid in March, targeting around 40% of the total expected dividend for the financial year, and a final dividend to be paid in December. It is the intention of
the Board to attach imputation credits to dividends to the extent they are available.
Balance sheet capacity post equity raise
Assuming EBITDAF of $480m
Ordinary
dividend of
of average Operating
FreeCashFlow¹
35 cps
At the placement price of
$7.00 per share (last close
on 12 February $7.20 per
share)
Expected ordinary
dividend
New distribution policy
18
S&P
investment
grade²
674670
Headroom
S&P net debt ($m)
Change to dividend policy provides clarity to investors across the Tauhara build phase and through Contact’s
investment programme, while improving dividend tax efficiency
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¹ Contact’s policy is to distribute ordinary dividends targeting a pay-out ratio of between 80 and 100% of the average Operating Free Cash Flow of the preceding four financial years. This includes Board consideration of the sustainable financial structureofContact including the
targeting of a long-term investment grade credit rating. Dividend payments are expected to be split into an interim dividend paid in March, targeting around 40% of the total expected dividend for the financial year, and a final dividend to be paid in December. It is the intention
of the Board to attach imputation credits to dividends to the extent they are available.
² Calculated at 2.8x net debt/ EBITDAF –S&Ps current metric for a BBB credit rating. This is may change in the future.
644
700
Interim dividend for 1H21 of 14 cents per share
•Interim dividend of 14 cents per share (1H20 16 cents per share) is
imputed to 64% or 9 cents per share for qualifying shareholders.
This represents a pay-out of 64% of 1H21 operating free cash flow
per share.
•Record date of 15 March 2021; payment date of 30 March 2021.
•The NZD/AUD exchange rate used for the payment of Australian
dollar dividends will be set on 22 March 2021.
Ordinary dividends (cps)
Declared
Final dividendInterim dividend
54%61%
76%
82%
% pay-out of operating free cash flow per share (average issued
shares over the period)
97%
1111
13
1616
14
1515
19
2323
26
FY16FY17
26
1H21FY18FY20FY19
32
3939
Dividend reinvestment plan
•Shareholders will have the option of full, partial or no participation. If a shareholder elects to participate they
will remain in the plan at the same participation level until they elect to terminate or amend their
participation level.
•It is anticipated that there will be no discount offered for the first eligible dividend and Contact will have the
right to terminate or suspend the plan at any time.
•Details of the plan will be sent to shareholders in March. First dividend under the plan is expected to be the
final FY21 dividend.
64%
19
20
Offer size
and structure
Contact is seeking to raise up to NZ$400 million (Equity Raise) in new equity via a:
•NZ$325 million underwritten placement (Placement); and
•NZ$75 million non-underwritten retail offer with the ability to accept oversubscriptions at Contact’s discretion (Retail Offer).
Offer structure is designed to achieve the objective of providing nearly all existing shareholders with the opportunity to subscribe for at least their pro rata portion
of the Equity Raise.
The Placement represents approximately 6.3% of Contact’s market capitalisationas at last close on 12 February 2021 and, on a combined basis, the Equity Raise
(assuming $400 million is raised) represents approximately 7.7% of Contact’s market capitalisation.
Under the Retail Offer, eligible shareholders in New Zealand and Australia will be invited to apply for up to NZ$50,000 / AU$46,500 (respectively) of new shares,
free of any brokerage or transaction costs.
Use of proceedsThe proceeds of the Equity Raise will initially reduce net debt and provide financial flexibility to fund the Tauhara Project and other future growth projects.
Issue price
New shares under the Placement will be issued at a fixed price of NZ$7.00 per share (Placement Price), representing a discount of:
•2.8% to the last close of NZ$7.20 per share on 12 February 2021; and
•7.8% to the 5-day VWAP of NZ$7.60 per share.
New shares under the Retail Offer will be issued at the lower of the Placement Price and a 2.5% discount to the 5-day VWAP of Contact shares traded on the NZX
up to and including the closing date of the Retail Offer and will be eligible for the FY21 interim dividend.
Ranking and
quotation
New shares issued under the Placement and the Retail Offer will rank equally with existing Contact shares on issue and will be quoted on NZX and ASX from the
date of allotment.
Underwriting
The Placement is fully underwritten.
The Retail Offer is not underwritten.
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21
Placement
Date
1
Trading halt commences and bookbuild undertakenMonday, 15 February 2021
Announcement of results of Placement and trading halt liftedExpected to be 12:00pm NZDT (10:00am AEDT) Tuesday, 16 February 2021
ASX settlementThursday, 18 February 2021
NZX settlementFriday, 19 February 2021
Placement shares allotted and commence trading on NZX and ASXFriday, 19 February 2021
Retail Offer
2
Date
1
Record dateFriday, 12 February 2021
Expected dispatch of Offer Document and application formThursday, 18 February 2021
Retail Offer opensThursday, 18 February 2021
Retail Offer closes5:00pm NZDT (3:00pm AEDT) Friday, 5 March 2021
Announcement of results of Retail Offer, including issue price in NZ$
and AU$
Thursday, 11 March 2021
NZX and ASX settlementFriday, 12 March 2021
Retail Offer shares allotted and commence trading on NZXFriday, 12 March 2021
Retail Offer shares commence trading on ASXMonday, 15 March 2021
1
Dates above are subject to change and are indicative only
2
Eligible shareholders with a registered address in New Zealand or Australia can find out more about the Retail Offer at www.contactshareoffer.co.nz and can apply online during the Retail Offer period
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•Contact believes it has the best projects, with the lowest
firmed LRMC and that bringing these projects to market is in
the best interests of the company and New Zealand.
•With New Zealand entering a generation build phase, our high
quality projects are expected to support shareholder returns
through the cycle.
•New Zealand, and Contact specifically, has a long history in
developing resources.
•The flexibility of Wairakei (shut, replace, grow, and options in
between with capex from $0m to $700m) and further Tauhara
development options will let Contact’s geothermal
development flex to meet the market into the future and
facilitate continued thermal substitution, whilst ensuring a
balanced market and effective use of capital.
•Contact has confidence in the market’s ability to attract new
industrial electricity demand.
•Contact understands existing and potential markets and is well
placed to work with local and international partners to
facilitate new market demand.
•Contact has a sustainable funding strategy to support
investment which in turn supports strong dividends.
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23
This section outlines the key risks which Contact has identified in connection with the Offer. These risks may affect the futureoperating and financial performance of Contact and its
share price. Like any investment, there are risks associated with an investment in Contact shares. Please note that this sectiondoes not (and does not purport to) set out all of the risks
related to an investment in Contact shares, the future operating or financial performance of Contact, the Offer or general market or industry risks. Some risks may be unknown and other
risks, currently believed to be immaterial, could turn out to be material.
In light of the COVID-19 pandemic, extra caution should be taken when assessing the risks associated with an investment in Contact. The rapidly changing COVID-19 situation is
bringing unprecedented challenges to global financial markets, and to the New Zealand economy as a whole. Capital markets have seen equity securities suffer from spikes in volatility
and significant, sudden price declines. It is not currently clear when these negative impacts will begin to abate.
Investors should be aware that the spread of COVID-19, its effect on the global economy and actions taken in response by the NewZealand government, and other governments or
regulators around the world, may have a material adverse effect on Contact, its financial performance and position, liquidity, financial condition and operations. There is no certainty as
to the severity or likelihood of any such unforeseen impacts arising nor whether any mitigating action will be effective or can be taken. It is also likely that there will be further unforeseen
negative impacts as COVID-19 continues to spread.
You should make your own assessment of the key risks set out in this section, including the inherent uncertainties as to the impact of COVID-19 noted above, and any other risks
associated with an investment in Contact shares and its business, before deciding whether to invest (or invest further) in Contact. You should also consider whether such an investment
is suitable in light of your individual risk profile, investment objectives and personal circumstances (including financial and taxation issues) and you are encouraged to consult with a
financial or other professional adviser
Key RiskDetails
Economic downturn
and other risks arising
from COVID-19
While the New Zealand electricity industry has to-date not been as severely impacted as some sectors of the New Zealand economy since the onset of the COVID-
19 pandemic, the risk of economic downturn has heightened some risks for Contact including:
•a potential reduction in electricity demand, particularly among commercial and industrial consumers, increasing the risk of oversupply of generation and
depressed pricing in the wholesale market
•consumers may experience greater difficulty in meeting energy costs with the result that there may be increased regulatory focuson pricing or other
intervention
•community outbreak of COVID-19 may mean New Zealand enters a further lockdown period or COVID-19 becomes a long-term feature of life, suppressing
economic activity and energy demand
•illness or suspected illness may close key plant or facilities meaning Contact would be unable operate as it normally would
•border closures may affect Contact’s ability to obtain international expertise required for its projects, including Tauhara, or result in wider market reluctance to
commit to growth projects due to uncertainty
These risks, and other unforeseen COVID-19 related matters, could adversely impact the economy and/or Contact’s ability to operate its business and/or
implement its ongoing capital investment projects.
24
Key RiskDetails
Oversupply / reduced
demand risk
Energy market oversupply leads to low wholesale electricity prices and reduces earnings. Potential key contributors to oversupply include:
•The potential closure of the Tiwai aluminiumsmelter in the future. The smelter currently takes around 13% of national electricity production. The amended
electricity transmission and supply arrangements, and extension of operations at the smelter announced recently provide some time for the electricity industry to
prepare for a potential closure of the smelter. It is expected that this will result in the closure of some less efficient generation within the industry, and provide
time for the industry to develop alternative sources of electricity demand. However, that may not occur, meaning any closureofthe Tiwai smelter in the future
could have the same or similar adverse impacts on the industry and Contact as if closure occurred in 2021. There is also no guarantee that operations will
continue at the smelter until December 2024, despite the recent announcement and expectation that will be the case.
•Reduction in demand by other major industrial consumers. Some major energy users have signalledthat they are reviewing their operations which could result in
a reduction in national energy demand leading to oversupply.
•The decreasing cost of renewable generation. As renewable generation (particularly wind and solar) becomes more economic, thereis the risk of increased
investment in renewable generation as part of decarbonisationefforts by several different market participants resulting in wholesale market oversupply.
•Economic conditions. Reduction in demand could occur as a result of a recessionary economic environment, whether or not arising from the COVID-19 pandemic.
•The risks described below under Regulatory risk and Change in competitive environment risk could also contribute to the risk of oversupply / reduced demand.
Regulatory risk
•Changes to market regulation by the Government or regulators such as the Electricity Authority or the Commerce Commission could have a material impact on
Contact’s financial performance.
•Contact’s decarbonisationstrategy aligns with the Government’s ambitions of 100 percent renewable electricity generation by 2030. However an interventionist
approach by regulators or through regulation could reduce Contact’s ability to respond to market conditions and may impose greater costs or constraints on the
business. Government-backed projects in the industry may also distort existing market forces in a way that cannot currently be predicted and which may be
adverse to Contact. Contact considers that the likelihood of intervention is increased in the current economic environment brought on by the effects of COVID-19.
•The Electricity Authority is currently consulting on changes to its transmission pricing methodology for a proposed final implementation by April 2023. While the
currently proposed model is relatively cost neutral to Contact, the finally adopted form may impose additional material costsonContact or Contact’s customers,
and might negatively impact battery investment returns.
Change in competitive
environment risk
•New generation built by competitors of Contact could adversely affect the prices that Contact can achieve in the wholesale market for electricity sales. See also
Oversupply / reduced demand risk above.
•Contact depends on its ability to compete effectively by providing products and services that keep pace with consumer expectations at competitive prices. This
could be a challenge if there is a significant change in the competitive environment, potentially leading to a material adverse impact on revenue if Contact is not
able to compete effectively.
25
Key RiskDetails
Environmental and
health & safety risk
•The nature of Contact’s business means that Contact and some of its workers and contractors can be exposed to hazardous materials, heavy machinery and
dangerous plant. There is the potential for an incident or accident to occur at one of Contact’s sites which results in seriousinjury. Contact has a strong focus on
ensuring that the health and safety of its employees and contractors is paramount, including through imposing strict contractualrequirements on, and
management of, services provided by third parties. However, non-compliance with environmental and health and safety laws and regulations by either Contact
or its employees or contractors could result in fines or penalties, remediation costs or claims made against Contact, as wellasreputational damage.
•Changes to laws and regulations could result in an increase in required capital expenditure or ongoing compliance costs.
IT systems and
infrastructure risk
•Contact is reliant on the performance of its and its suppliers’ technology infrastructure to manage its widely geographicallydistributed generation assets and
other plant.
•If Contact’s information technology infrastructure was interrupted, compromised or damaged, Contact could suffer loss of controlof assets, inability to dispatch
electricity or gas into the market or adjust to pricing variations, resulting in revenue loss, material harm to its reputation and/or significant expenditure to
restore functionality.
Significant or
prolonged
infrastructure
damage risk
•Contact is dependent on a number of key generation and transmission assets located throughout the country, not all of which are owned by or under the control
of Contact. These assets, ancillary assets or infrastructure connecting those assets to transmission and distribution networks,could be damaged or destroyed by
a natural disaster such as a major volcanic eruption, earthquake or storm. This could result in a major interruption in Contact’s ability to generate and dispatch
electricity into the market, having a material adverse impact on its financial position and performance.
•Contact maintains insurance to cover it against certain events, but the insured sum does not cover the full replacement valueofall plant and insurance policies
do not cover all possible adverse events.
Data security risk
•Given Contact’s large customer base, its systems hold large volumes of confidential personal and business data. Data held by Contact may be accessed or used in
an unauthorisedmanner, including due to a cyber-attack. The frequency and sophistication of cyber-attacks on businesses is growing. If Contactsuffered a major
cyber-attack or data security breach, Contact's reputation would be damaged –which could lead to a loss of existing customers, an inability to attract new
customers, and a corresponding loss in revenue. Contact may also incur fines, penalties or claims as a result of any privacybreach. Contact could also lose
control of its assets, leading to risk of damage or injury.
•Contact invests considerable capital to ensure security and sufficient reliability and diversity of its information technology infrastructure. Like many businesses it
has experienced attempted attacks on its systems from time to time. To date these have not resulted in any material interruption, outage, suspension or loss of
data, but there is a risk that a cyber-attack is successful or another event including human or technical error or acts of terrorism or vandalism results in a data
breach or loss of capacity.
•Remote working (which a large proportion of Contact’s staff increasingly do) also increases the risk of data and security breach.
26
Key RiskDetails
Project and resource
risks
•The Tauhara project carries construction and project-related risks that Contact considers normal for this type of investment. These risks include the risk of
accident or other health and safety event, supply-chain risks, errors in the design, geotechnical conditions varying materially from what is expected, lack of
availability of specialist equipment or people, unfavourableweather conditions for construction, contractor default, delay, cost overrun where pricing is not
fixed and failure to achieve intended specifications. These risks are mitigated by Contact’s recent experience of successfully implementing significant
geothermal projects including TeHuka and TeMihi, as well as by the terms of the engineering, procurement and construction contract for the Tauhara project.
•Contact expects to incur further costs of more than $580 million in order to complete the Tauhara project, requiring additional sources of funding than the
proceeds raised from the Capital Raising. There is no guarantee that Contact will increase its revenue from this investment as quickly as expected, or at all.
•The resource consents that are required for the operation of the Wairakei steamfield, and the associated Wairakei and TeMihi power stations, expire in 2026.
Renewal of these resource consents is a key focus of the Contact management team but is subject to the determination of thirdparty consenting authorities
outside of Contact’s control.
•Contact is also exposed to risks associated with geothermal generation and the natural decline in the enthalpy from production wells. Enthalpy decline is
modelled in the project design but could be more significant than expected, requiring a greater number of wells to be drilledora lower output, which would
impact cost and performance of the plant.
Contact has other projects that it may implement to maintain and improve assets, reduce operating expenses, and introduce newproducts and services. These
other projects may be subject to similar project related risks as described above in relation to Tauhara.
•While it continues to operate thermal plants, Contact is exposed to the risk of a shortage in gas supplies. Recent reductionsinproduction from the Kupe and
Pohokurafields exacerbate this risk. Contact is also exposed to the risk of its hydro plants being unable to operate to full capacity(or at all) in the event of
extremely low water levels.
Risk associated with
failure to complete
the Capital Raising
•Failure to complete the Capital Raising would mean Contact will need to seek alternative sources of funding to complete the Tauharaproject. This may mean
additional borrowings or debt security issuance (and resulting increase to net debt over the construction period), a subsequent equity capital raising or retention
of equity for funding purposes.
•There is no certainty that those alternative sources of funding will be available, or available on terms not materially less favourableto Contact. That may have a
material adverse impact on Contact's financial position or performance.
Ability to pay
dividends
•Contact's business could be materially impacted in an adverse manner by a number of events, including if any of the Key Risksreferred to above eventuated. In
such a case, Contact may be unable to pay dividends at historical levels or at all.
27
Contact has requested that the Underwriters underwrite the Placement and the Underwriters have agreed to do so. This means that the Underwriters will subscribe at the relevant offer price for any New
Shares that are not subscribed for under the Placement in accordance with the terms of the Placement Agreement.
A summary of the principal terms of the Placement Agreement are set out as follows:
•The Underwriters have the power to appoint sub-underwriters.
•The Underwriters will be paid an agreed underwriting fee for their services in connection with the Placement.
•The Placement Agreement contains termination events, representations, warranties and indemnities that are customary for an offerof this nature.
•The Underwriters may terminate their obligations under the Placement Agreement, including by reason of events which have, or arelikely to have, a material adverse effect on Contact, its shares or
the Placement or the Retail Offer. These may be as a result of events specific to Contact or as a result of external events, such as material or fundamental changes in financial, economic and political
conditions in certain countries or financial markets. The Underwriters may also terminate the Placement Agreement where certain conditions to the Placement Agreement or its underwriting
obligations have not been satisfied or waived.
•Contact provides certain undertakings to the Underwriters, including:
oFor a period until three months after the settlement of the Placement, Contact may not:
▪offer for sale, transfer or allot any shares or other equity securities in Contact, or issue or grant any right or option that entitles the holder to call for the issue or transfer of shares in
Contact or that is otherwise convertible into, exchangeable for or redeemable by the issue or transfer of, shares or other equity securities in Contact, in each case other than
pursuant to certain limited exceptions or with the Underwriters’ and Lead Managers’ consent; or
▪acquire or dispose, or agree to acquire or dispose of, any substantial assets or business without first consulting with the Underwriters and Lead Managers, other than as disclosed in
the Offer materials; and
oFor the period until the settlement of the Retail Offer, Contact may not enter into any commitment or arrangement which is ormay be material in the context of the Placement, the Retail
Offer or the underwriting of the Placement.
•Contact has agreed to indemnify the Underwriters and the Lead Managers and their affiliates and the directors, officers, partners, employees and representatives of each such person against certain
losses related to the Placement or Retail Offer.
•Contact has given warranties in the Placement Agreement, including warranties relating to the content and accuracy of the Offer materials, compliance by Contact with relevant laws, the existence
of no material litigation, and the valid issue and allotment of New Shares.
28
Thisdocumentdoesnotconstituteanofferofnewfullypaidordinaryshares(NewShares)ofContactEnergyLimited(the
Company)inanyjurisdictioninwhichitwouldbeunlawful.Inparticular,thisdocumentmaynotbedistributedtoanyperson,
andtheNewSharesmaynotbeofferedorsold,inanycountryexcepttotheextentpermittedbelow.
AUSTRALIA
The offer of New Shares under the Placement is only made available in Australia to persons to whom a disclosure document is
not required to be given under Chapter 6D of the Australian Corporations Act 2001(Cth) ("Australian Corporations Act"). This
document is not a prospectus, product disclosure statement or any other form of formal "disclosure document" for the purposes
of the Australian Corporations Act, and is not required to, and does not, contain all the information which would be requiredina
disclosure document under the Australian Corporations Act.
This document does not take into account the investment objectives, financial situation or needs of any particular person.
Accordingly, before making any investment decision in relation to this document, you should assess whether the acquisition of
any interest in the Company is appropriate in light of your own financial circumstances or seek professional advice.
If you acquire the New Shares under the Placement in Australia then you:
•representandwarrantthatyouareaprofessionalorsophisticatedinvestorforthepurposesofChapter6Dofthe
AustralianCorporationsAct;and
•agreenottosellorofferforsaleanyNewSharesissuedunderthePlacementinAustraliawithin12monthsfromthe
dateoftheirissueunderthePlacement,exceptincircumstanceswhere:
−disclosuretoinvestorswouldnotberequiredunderChapter6DoftheAustralianCorporationsAct;or
−suchsaleorofferismadepursuanttoadisclosuredocumentwhichcomplieswithChapter6Dofthe
AustralianCorporationsAct.
CANADA
This document constitutes an offering of New Shares only in the Provinces of British Columbia, Ontario and Quebec (the
"Provinces") and to those persons to whom they may be lawfully distributed in the Provinces, and only by persons permitted to
sell such New Shares. This document is not, and under no circumstances is to be construed as, an advertisement or a public
offering of securities in the Provinces. This document may only be distributed in the Provinces to persons that are "accredited
investors" within the meaning of NI 45-106 –Prospectus Exemptions, of the Canadian Securities Administrators.
No securities commission or similar authority in the Provinces has reviewed or in any way passed upon this document, the merits
of the New Shares or the offering of New Shares and any representation to the contrary is an offence.
No prospectus has been, or will be, filed in the Provinces with respect to the offering of New Shares or the resale of such securities. Any
person in the Provinces lawfully participating in the offer will not receive the information, legal rights or protections that would be afforded
had a prospectus been filed and receipted by the securities regulator in the applicable Province. Furthermore, any resale of theNew Shares
in the Provinces must be made in accordance with applicable Canadian securities laws which may require resales to be made in accordance
with exemptions from dealer registration and prospectus requirements. These resale restrictions may in some circumstances apply to
resales of the New Shares outside Canada and, as a result, Canadian purchasers should seek legal advice prior to any resale of the New
Shares.
The Company as well as its directors and officers may be located outside Canada and, as a result, it may not be possible for
purchasers to effect service of process within Canada upon the Company or its directors or officers. All or a substantial portion of
the assets of the Company and such persons may be located outside Canada and, as a result, it may not be possible to satisfy a
judgment against the Company or such persons in Canada or to enforce a judgment obtained in Canadian courts against the
Company or such persons outside Canada.
Statutory rights of action for damages and rescission
Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they may haveatlaw,
rights of rescission or to damages, or both, when an offering memorandum that is delivered to purchasers contains a
misrepresentation. These rights and remedies must be exercised within prescribed time limits and are subject to the defenses
contained in applicable securities legislation.Prospective purchasers should refer to the applicable provisions of the securities
legislation of their respective Province for the particulars of these rights or consult with a legal adviser.
The following is a summary of the statutory rights of rescission or to damages, or both, available to purchasers in Ontario. In
Ontario, every purchaser of the New Shares purchased pursuant to this document (other than (a) a "Canadian financial institution"
or a "Schedule III bank" (each as defined in NI 45-106), (b) the Business Development Bank of Canada or (c) a subsidiary of any
person referred to in (a) or (b) above, if the person owns all the voting securities of the subsidiary, except the voting securities
required by law to be owned by the directors of that subsidiary) shall have a statutory right of action for damages and/or rescission
against the Company if this documentor any amendment thereto contains a misrepresentation.If a purchaser elects to exercise
the right of action for rescission, the purchaser will have no right of action for damages against the Company. This right of action
for rescission or damages is in addition to and without derogation from any other right the purchaser may have at law. In
particular, Section130.1 of the Securities Act(Ontario) provides that, if this documentcontains a misrepresentation, a purchaser
who purchases the New Shares during the period of distribution shall be deemed to have relied on the misrepresentation if it wasa
misrepresentation at the time of purchase and has a right of action for damages or, alternatively, may elect to exercise a rightof
rescission against the Company, provided that:
(a)the Company will not be liable if it proves that the purchaser purchased the New Shares with knowledge of
the misrepresentation;
(b)in an action for damages, the Company is not liable for all or any portion of the damages that the Company
proves does not represent the depreciation in value of the New Shares as a result of the misrepresentation
relied upon; and
(c)in no case shall the amount recoverable exceed the price at which the New Shares were offered.
Section138 of the Securities Act(Ontario) provides that no action shall be commenced to enforce these rights more than:
(a)in the case of any action for rescission, 180days after the date of the transaction that gave rise to the cause
of action; or
(b)in the case of any action, other than an action for rescission, the earlier of (i) 180days after the purchaser
first had knowledge of the fact giving rise to the cause of action or (ii) three years after the date of the
transaction that gave rise to the cause of action.
These rights are in addition to and not in derogation from any other right the purchaser may have.
By purchasing the New Shares hereunder, purchasers in British Columbia not entitled to the statutory rights described above are
hereby granted, in consideration of their purchase of securities and upon accepting a purchase confirmation in respect thereof, a
contractual right of action for damages or rescission that is the same as the statutory right of action, if any, provided to residents of
Ontario who purchase the securities.
29
Certain Canadian income tax considerations. Prospective purchasers of the New Shares should consult their own tax adviser with
respect to any taxes payable in connection with the acquisition, holding, or disposition of the New Shares as any discussion of
taxation related matters in this document is not a comprehensive description and there are a number of substantive Canadian tax
compliance requirements for investors in the Provinces.
Language of documents in Canada. Upon receipt of this document, each investor in Canada hereby confirms that it has expressly
requested that all documents evidencing or relating in any way to the sale of the New Shares (including for greater certaintyany
purchase confirmation or any notice) be drawn up in the English language only. Par la réceptionde cedocument, chaque
investisseurcanadienconfirmepar les présentesqu’ila expressémentexigéque tousles documents faisantfoiouse rapportantde
quelquemanière que cesoità la vente des valeursmobilièresdécritesaux présentes(incluant, pour plus de certitude, toute
confirmation d’achatoutout avis) soientrédigésenanglaisseulement.
Notice of Underwriters
The Underwriters are relying on an exemption from the dealer registration requirements of applicable provincial securities laws
pursuant to National Instrument 31-103 –Registration Requirements, Exemptions and Ongoing Registrant Obligationsin
connection with the offering of the New Shares. The Underwriters are not registered in Canada, and are resident in New Zealand.
Accordingly, there may be difficulty enforcing legal rights against the Underwriters because they are resident outside of Canada,
and all or substantially all of their assets may be situated outside of Canada. For the purposes of this offering, prospective
investors may contact the Underwriters to obtain the name and address of each Underwriter’s agent for service of process.
EUROPEANUNION(FRANCE,GERMANY,LUXEMBOURG,NETHERLANDS)
This document has not been, and will not be, registered with or approved by any securities regulator in the European Union.
Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in the European Union
except in circumstances that do not require a prospectus under Article 1(4) of Regulation (EU) 2017/1129 of the European
Parliament and the Council of the European Union (the "Prospectus Regulation").
In accordance with Article 1(4)(a) of the Prospectus Regulation, an offer of New Shares in the European Union is limited to
persons who are "qualified investors" (as defined in Article 2(e) of the Prospectus Regulation).
GREECE
This document has not been, and will not be, registered with or approved by the Hellenic Capital Markets Commission or any
securities regulator in the European Union and, accordingly, may not be used in connection with any offer to purchase or sellthe
New Shares or as part of any form of general solicitation or advertising in circumstances that would constitute an offer to the
public in the Hellenic Republic, except in circumstances that do not require a prospectus under Article 1(4) of Regulation (EU)
2017/1129 of the European Parliament and the Council of the European Union (the “Prospectus Regulation”) and article 58(1) of
the Greek law 4706/2020 implementing the Prospectus Regulation in the Hellenic Republic.
An offer of the New Shares in the Hellenic Republic may be made (a) to any person or entity that is a qualified investor as defined
in Article 2(e) of the Prospectus Regulation (a “Qualified Investor”); (b) to fewer than 150 natural or legal persons (other than
Qualified Investor); or (c) in any other circumstances falling within Article 1(4) of the Prospectus Regulation, providedthat no
such offer of New Shares shall require the publication of a prospectus pursuant to Article 3 of the Prospectus Regulation or article
58 of the Greek law 4706/2020 implementing the Prospectus Regulation in the Hellenic Republic.
For purposes of the foregoing restrictions the expression an “offer to the public” in relation to the New Shares in the Hellenic
Republic means the public communication or announcement in any form and by any means of sufficient information on the
terms of the offer and the New Shares to be offered so as to enable an investor to decide to purchase or subscribe for the New
Shares.
IRELAND
The information in this document does not constitute a prospectus under any Irish laws or regulations including without limitation
the Companies Act, 2014 of Ireland (the "Companies Act"), any rules issued by the Central Bank of Ireland pursuant to section 1363
of the Companies Act, European Union (Prospectus) Regulations 2019 of Ireland, or the Regulation (EU) 2017/1129 of the European
Parliament and of the Council of 14 June 2017 (the "Prospectus Regulation")and this document has not been filed with or
approved by any Irish regulatory authority as the information has not been prepared in the context of a public offering of securities
in Ireland or in connection with admission to trading on a regulated market in Ireland of the New Shares within the meaning of the
Prospectus Regulation. The New Shares have not been offered or sold, and will not be offered, sold or delivered directly or
indirectly in Ireland by way of a public offering, except to “qualified investors” as defined in Article 2(e) of the Prospectus
Regulation.
HONGKONG
WARNING:This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and
Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission
in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the "SFO"). No action has
been taken in Hong Kong to authorise or register this document or to permit the distribution of this document or any documents
issued in connection with it. Accordingly, the New Shares have not been and will not be offered or sold in Hong Kong other than to
"professional investors" (as defined in the SFO and any rules made under that ordinance).
No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the
possession of any person for the purpose of issue, in Hong Kong or elsewhere that is directed at, or the contents of which are likely
to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than
with respect to New Shares that are or are intended to be disposed of only to persons outside Hong Kong or only to professional
investors.
No person allotted New Shares may sell, or offer to sell, such securities in circumstances that amount to an offer to the publicin
Hong Kong within six months following the date of issue of such securities.
The contents of this document have not been reviewed by any Hong Kong regulatory authority. You are advised to exercise caution
in relation to the Placement. If you are in doubt about any contents of this document, you should obtain independent professional
advice.
JAPAN
The New Shares have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange
Act of Japan (Law No. 25 of 1948), as amended (the "FIEA") pursuant to an exemption from the registration requirements
applicable to a private placement of securities to Qualified Institutional Investors (as defined in and in accordance with Article 2,
paragraph 3 of the FIEA and the regulations promulgated thereunder). Accordingly, the New Shares may not be offered or sold,
directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan other than Qualified Institutional Investors. Any
Qualified Institutional Investor who acquires New Shares may not resell them to any person in Japan that is not a Qualified
Institutional Investor, and acquisition by any such person of New Shares is conditional upon the execution of an agreement tothat
effect.
NORWAY
This document has not been, and will not be, registered with or approved by Finanstilsynet(the Financial Supervisory Authority of
Norway) and it does not constitute a prospectus under the Prospectus Regulation (Regulation (EU) 2017/1129) or the Norwegian
Securities Trading Act of 29 June 2007 no. 75. Accordingly, this document may not be made available, nor may the New Shares be
offered for sale, directly or indirectly, in Norway other than under circumstances that are exempted from the prospectus
requirements under the Prospectus Regulation and the Norwegian Securities Trading Act. Any offering of New Shares in Norway is
limited to persons who are "qualified investors" as defined in the Prospectus Regulation. Only such persons may receive this
document and they may not distribute it or the information contained in it to any other person.
30
PEOPLE’SREPUBLICOFCHINA
TheNewSharesmaynotbeoffered,soldordelivered,orofferedorsoldordeliveredtoanypersonforreofferingorresaleor
redelivery,inanysuchcasedirectlyorindirectly,inthePeople'sRepublicofChina(thePRC,excludingHongKong,Macauand
Taiwan)incontraventionofanyapplicablelaws.Thisdocumentdoesnotconstituteanoffertosellorthesolicitationofanoffer
tobuyanyNewSharesinthePRCtoanypersontowhomitisunlawfultomaketheofferorsolicitationinthePRC.
TheCompanydoesnotrepresentthatthisdocumentmaybelawfullydistributed,orthatanyNewSharesmaybelawfully
offered,incompliancewithanyapplicableregistrationorotherrequirementsinthePRC,orpursuanttoanexemptionavailable
thereunder,orassumeanyresponsibilityforfacilitatinganysuchdistributionoroffering.Inparticular,noactionhasbeentaken
bytheCompanywhichwouldpermitapublicofferingofanyNewSharesordistributionofthisdocumentinthePRC.Accordingly,
theNewSharesarenotbeingofferedorsoldwithinthePRCbymeansofthisdocumentoranyotherdocument.Neitherthis
documentnoranyadvertisementorotherofferingmaterialmaybedistributedorpublishedinthePRC,exceptunder
circumstancesthatwillresultincompliancewithanyapplicablelawsandregulations.
SINGAPORE
ThisdocumentandanyothermaterialsrelatingtotheNewShareshasnotbeenandwillnotberegisteredasaprospectuswith
theMonetaryAuthorityofSingapore.Accordingly,theNewSharesmaynotbeofferedorsoldormadethesubjectofan
invitationforsubscriptionorpurchase,normaythisdocumentoranyotherdocumentormaterialinconnectionwiththeofferor
sale,orinvitationforsubscriptionorpurchase,oftheNewSharesbecirculatedordistributed,whetherdirectlyorindirectly,to
anypersoninSingaporeotherthan(i)toaninstitutionalinvestor(asdefinedinSection4AoftheSecuritiesandFuturesAct,
Chapter289ofSingapore(the"SFA"))pursuanttoSection274oftheSFA,(ii)toarelevantperson(asdefinedinSection275(2)of
theSFA)pursuanttoSection275(1)oftheSFA,ortoanypersonpursuanttoSection275(1A)oftheSFA,andinaccordancewith
theconditionsspecifiedinSection275oftheSFA,or(iii)otherwisepursuantto,andinaccordancewith,theconditionsof,any
otherapplicableprovisionoftheSFA.
WheretheNewSharesaresubscribedorpurchasedunderSection275oftheSFAbyarelevantpersonwhichis:
(a)acorporation(whichisnotanaccreditedinvestor(asdefinedinSection4AoftheSFA))thesolebusinessofwhichis
toholdinvestmentsandtheentiresharecapitalofwhichisownedbyoneormoreindividuals,eachofwhomisan
accreditedinvestor;or
(b)atrust(wherethetrusteeisnotanaccreditedinvestor)whosesolepurposeistoholdinvestmentsandeach
beneficiaryisanindividualwhoisanaccreditedinvestor,securitiesorsecurities-basedderivativescontracts(each
termasdefinedinSection2(1)oftheSFA)ofthatcorporationorthebeneficiaries’rightsandinterest(howsoever
described)inthattrustshallnotbetransferredwithinsixmonthsafterthatcorporationorthattrusthasacquiredthe
NewSharespursuanttoanoffermadeunderSection275oftheSFAexcept:
(1)toaninstitutionalinvestorortoarelevantperson(asdefinedinSection275(2)oftheSFA),ortoany
personarisingfromanofferreferredtoinSection275(1A)orSection276(4)(i)(B)oftheSFA;
(2)wherenoconsiderationisorwillbegivenforthetransfer;
(3)wherethetransferisbyoperationoflaw;
(4)asspecifiedinSection276(7)oftheSFA;or
(5)asspecifiedinRegulation37AoftheSecuritiesandFutures(OffersofInvestments)(Securitiesand
Securities-basedDerivativesContracts)Regulations2018ofSingapore.
NotificationunderSection309B(1)(c)oftheSFA–InconnectionwithSection309BoftheSFAandtheSecuritiesandFutures
(CapitalMarketsProducts)Regulations2018ofSingapore(the"CMPRegulations2018"),theCompanyhasdeterminedthe
classificationoftheNewSharesasprescribedcapitalmarketsproducts(asdefinedintheCMPRegulations2018)andExcluded
InvestmentProducts(asdefinedinMASNoticeSFA04-N12:NoticeontheSaleofInvestmentProductsandMASNoticeFAA-N16:
NoticeonRecommendationsonInvestmentProducts).
SOUTHKOREA
Neither the Company nor any placement agent may make any representation with respect to the eligibility of any recipients of this
document to acquire the New Shares offered hereby under the laws of Korea, including but without limitation, the Financial
Investment Services and Capital Market Act and its subordinate decrees and the regulations thereunder (collectively, the "FSCMA"),
and the Foreign Exchange Transaction Law and its subordinate decrees and regulations thereunder (collectively, the "FETL")
The New Shares have not been and will not be registered with the Financial Services Commission of Korea for public offering in
Korea under the FSCMA.
None of the New Shares may be offered, sold or delivered, directly or indirectly, or offered or sold to any person for reoffering or
resale, directly or indirectly, in Korea or to any resident (as defined under FETL) of Korea except as otherwise permitted underthe
applicable laws and regulations of Korea, including the FSCMA and the FETL.
Accordingly, without prejudice to the foregoing, the New Shares shall be offered and sold only to certain professional investorsas
designated by Article 11 of the Presidential Decree of the Financial Investment Services and Capital Market Act.
SWEDEN
This document has not been, and will not be, registered with or approved by Finansinspektionen(the Swedish Financial
Supervisory Authority) and it does not constitute a prospectus under the Prospectus Regulation (Regulation (EU) 2017/1129).
Accordingly, this document may not be made available, nor may the New Shares be offered for sale, directly or indirectly, in
Sweden other than under circumstances that are exempted from the prospectus requirements under the Prospectus Regulation.
Any offering of New Shares in Sweden is limited to persons who are "qualified investors" as defined in the Prospectus Regulation.
Only such persons may receive this document and they may not distribute it or the information contained in it to any other person.
SWITZERLAND
This document is not intended to constitute an offer or solicitation to purchase or invest in the New Shares described herein. The
New Shares may not be publicly offered, sold or advertised, directly or indirectly, in, into or from Switzerland but may be offered to
individually approached professional investors as defined in Article 4 of the Swiss Financial Services Act ("FinSA") and no
application has been or will be made to admit the New Shares to trading on any trading venue (exchange or multilateral trading
facility) in Switzerland. Neither this document nor any other offering or marketing material relating to the New Shares constitutes a
prospectus compliant with the requirements of Article 652a or 1156 of the Swiss Code of Obligations or the listing rules of SIX
Exchange Regulation or pursuant to the FinSAfor a public offering of the New Shares and neither this document nor any other
offering or marketing material relating to the New Shares may be distributed or otherwise made publicly available in, into orfrom
Switzerland.
NeitherthisdocumentnoranyotherofferingormarketingmaterialrelatingtotheofferingoftheNewShareshasbeenorwillbe
filedwithorapprovedbyanySwissregulatoryauthorityoranyreviewbody.
This document is personal to the recipient only and not for general circulation in Switzerland.
31
THEUNITEDARABEMIRATES
TheUnitedArabEmirates(excludingtheDubaiInternationalFinancialCentreandtheAbuDhabiGlobalMarket)
This document is strictly private and confidential and is being distributed to a limited number of investors and must not be
provided to any person other than the original recipient, and may not be reproduced or used for any other purpose. If you arein
any doubt about the contents of this document, you should consult an authorised financial adviser. By receiving this document,
the person or entity to whom it has been issued understands, acknowledges and agrees that this document has not been
approved by or filed with the UAE Central Bank, the UAE Securities and Commodities Authority (the "SCA") or any other
authorities in the UAE (outside of the financial free zones established pursuant to UAE Federal Law No. 8 of 2004), nor has the
Company or the Lead Manager received authorisation or licensing from the UAE Central Bank, SCA or any other authorities in the
UAE to market or sell securities or other investments within the UAE. No marketing of any financial products or services has been
or will be made from within the UAE other than in compliance with the laws of the UAE and no subscription to any securities or
other investments may or will be consummated within the UAE. It should not be assumed that the Company or the Lead Manager
is a licensed broker, dealer or investment adviser under the laws applicable in the UAE, or that any of them advise individuals
resident in the UAE as to the appropriateness of investing in or purchasing or selling securities or other financial products. The
New Shares are not intended for circulation or distribution in or into the UAE, other than to persons who are "Qualified
Investors" within the meaning of the SCA’s Board of Directors Decision No. 37/R.M of 2019 Concerning the Definition of Qualified
Investor to whom the materials may lawfully be communicated. This does not constitute a public offer of securities in the UAEin
accordance with the SCA Chairman of the Board Resolution No. 11/R.M of 2016 on the Regulations for Issuing and Offering
Shares of Public Joint Stock, or otherwise. Nothing contained in this document is intended to constitute investment, legal, tax,
accounting or other professional advice. This document is for your information only and nothing in this document is intended to
endorse or recommend a particular course of action. Any person considering acquiring securities should consult with an
appropriate professional for specific advice rendered based on their respective situation.
Dubai International Financial Centre
The New Shares have not been offered and will not be offered to any persons in the Dubai International Financial Centre except
on that basis that an offer is:
(1)an "Exempt Offer" in accordance with the Markets Rules (MKT) module of the Dubai Financial Services Authority (the
"DFSA"); and
(2)made only to persons who meet the Professional Client criteria set out in Rule 2.3.3 of the DFSA Conduct of Business
Module of the DFSA rulebook.
The DFSA has not approved this document or taken steps to verify the information set out in it, and has no responsibility forit.
The New Shares to which this document relates may be illiquid and/or subject to restrictions on their resale. Prospective
purchasers of the New Shares offered should conduct their own due diligence on the New Shares. If you do not understand the
contents of this document, you should consult an authorised financial adviser.
Abu Dhabi Global Market
The New Shares have not been offered and will not be offered to any persons in the Abu Dhabi Global Market ("ADGM") except on
the basis that an offer is:
(1)an "Exempt Offer" in accordance with the Market Rules of the Financial Services Regulatory Authority ("FSRA") of the
ADGM; and
(2)made only to persons who meet the Professional Client criteria set out in Rule 2.4 of the FSRA Conduct of Business
Rulebook.
The FSRA has not approved this document or taken steps to verify the information set out in it, and has no responsibility forit. The
New Shares to which this document relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasersof
the New Shares offered should conduct their own due diligence on the New Shares. If you do not understand the contents of this
document, you should consult an authorised financial adviser.
THEUNITEDKINGDOM
Neither this document nor any other document relating to the Placement has been delivered for approval to the Financial Conduct
Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act
2000, as amended ("FSMA")) has been published or is intended to be published in respect of the New Shares.
Thisdocumentisissuedonaconfidentialbasisto"qualifiedinvestors"(asdefinedinRegulation(EU)2017/1129oftheEuropean
ParliamentandtheCounciloftheEuropeanUnion("ProspectusRegulation"))intheUnitedKingdom,andtheNewSharesmaynot
beofferedorsoldintheUnitedKingdombymeansofthisdocument,anyaccompanyingletteroranyotherdocument,exceptin
circumstanceswhichdonotrequirethepublicationofaprospectuspursuanttosection86(1)oftheFSMA.Thisdocumentshould
notbedistributed,publishedorreproduced,inwholeorinpart,normayitscontentsbedisclosedbyrecipientstoanyother
personintheUnitedKingdom.
Any invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) received in
connection with the issue or sale of the New Shares has only been communicated or caused to be communicated and will only be
communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of the FSMA does not
apply to the Company.
In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience
in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and MarketsAct
2000 (Financial Promotions) Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d)
(high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully
communicated (together "relevant persons"). The investment to which this document relates is available only to relevant persons.
Any person who is not a relevant person should not act or rely on this document.
UNITEDSTATES
Thispresentationdoesnotconstituteanoffertosell,orthesolicitationofanoffertobuy,anysecuritiesintheUnitedStates.The
NewSharestobeofferedandsoldintheOfferhavenotbeen,andwillnotbe,registeredundertheU.S.SecuritiesActof1933(the
"U.S.SecuritiesAct")orthesecuritieslawsofanystateorotherjurisdictionoftheUnitedStates.Accordingly,theNewSharestobe
offeredandsoldinthePlacementandRetailOffermaynotbeofferedorsoldtoanypersonintheUnitedStates,exceptpursuant
toanexemptionfrom,orinatransactionnotsubjectto,theregistrationrequirementsoftheU.S.SecuritiesActandanyother
applicableU.S.statesecuritieslaws.
TermExplanation
C&ICommercial and Industrial
CFDContract for difference
EBITDAF
Earnings before interest, tax, depreciation, amortisation,
fair value adjustments and other significant items
EBITDAF and underlying profit are used to monitor
performance and are non-GAAP profit measures.
EPCEngineering, procurement and construction
Equity Raise
The equity raise announced by Contact on 15 February
2021 to raise approximately $400 million, comprising the
Placement and the Retail Offer
Enthalpy
decline
Forecasted decline in energy content of the geothermal
fluid
Firming cost
The cost in maintaining the output from a variable,
intermittent power source, such as wind or solar, for a
committed period of time. e.g. by thermal peaking
stations
GJGigajoule (unit of measure)
GWhGigawatt hour (unit of measure); 1,000 MWh
LRMCLong run marginal cost (which excludes the firming cost)
MWMegawatts (unit of measure)
MWh
Megawatthour (unit of measure); 1,000 Kilowatt hours
(KWh)
NPV
Net Present Value
TermExplanation
NZAS
New Zealand Aluminium Smelters
Operating Free
CashFlow
Operating free cash flow is a non-GAAP cash measure
that represents the amount of cash Contact has available
to distribute to shareholders, reduce debt or reinvest in
growing the business. Calculated as operating cash flow
less stay-in-business CAPEX.
Placement
The placement of new shares in Contact to eligible
institutional and other selected investors, to raise
approximately $325 million
PPE
Property, Plant and Equipment
PPA
Power purchase agreement, or electricity power
agreement
Q1Quarter one
R&D
Research and Development
Retail Offer
The offer of new shares in Contact to eligible
shareholders in New Zealand and Australia to raise
approximately $75 million
Stay-in-
business
capital
expenditure
Stay-in-business (SIB) capital expenditure is required to
maintain our business operations and includes major
plant inspections and replacements of existing assets
TWh
Terawatt hour (unit of measure); 1,000 GWh
VWAP
Volume weighted average price
32
---
2021 Interim Results Presentation
Six months ended 31 December 2020
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
2
Disclaimer and important information
This presentation may contain certain forward-looking statements with respect to the
financial condition, results of operations and business of Contact. Forward-looking
statements can generally be identified by the use of words such as 'project', 'foresee',
'plan', 'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' or
similar expressions. Forward-looking statements in this presentation include
statements regarding sustainability and ESG targets, retail gas tariffs, future financial
performance and changes to climate change regulations.
Any indications of, or guidance or outlook on, future earnings or financial position or
performance and future distributions are also forward-looking statements. All such
forward-looking statements involve known and unknown risks, significant
uncertainties, assumptions, contingencies, and other factors, many of which are
outside the control of Contact, which may cause the actual results or performance of
Contact to be materially different from any future results or performance expressed or
implied by such forward-looking statements. Such forward-looking statements speak
only as of the date of this presentation. Except as required by law or regulation
(including the NZX Listing Rules and the ASX Listing Rules), Contact undertakes no
obligation to update these forward-looking statements for events or circumstances
that occur subsequent to the date of this presentation or to update or keep current
any of the information contained herein. Any estimates or projections as to events
that may occur in the future (including projections of revenue, expense, net income
and performance) are based upon the best judgement of Contact from the information
available as of the date of this presentation. A number of factors could cause actual
results or performance to vary materially from the projections, including the risk
factors set out in the Investor Presentation "Tauhara investment and capital
management plan". Investors should consider the forward-looking statements in this
presentation in light of those risks and disclosures.
You are strongly cautioned not to place undue reliance on any forward-looking
statements, particularly in light of the current economic climate and the significant
volatility, uncertainty and disruption caused in relation to the Company and otherwise
by the COVID-19 pandemic.
Actual results may differ materially from those stated in any forward-looking statement
based on a number of important factors and risks.
Although management may indicate and believe that the assumptions underlying the
forward-looking statements are reasonable, any of the assumptions could prove
inaccurate or incorrect and, therefore, there can be no assurance that the results
contemplated in the forward-looking statements will be realised.
EBITDAF, underlying profit, free cash flow and operating free cash flow are financial
measures that are "non-GAAP (generally accepted accounting practice) financial
information" under Guidance Note 2017: 'Disclosing non-GAAP financial information'
published by the New Zealand Financial Markets Authority, "non-IFRS financial
information" under ASIC Regulatory Guide 230: 'Disclosing non-IFRS financial
information' and "non-GAAP financial measures" within the meaning of Regulation G
under the U.S. Exchange Act of 1934. Disclosure of such non-GAAP financial
measures in the manner included in this presentation would not be permissible in a
registration statement under the U.S. Securities Exchange Act of 1934. Such financial
information and financial measures (including EBITDAF, underlying profit, free cash
flow and operating free cash flow) do not have standardised meanings prescribed
under New Zealand equivalents to International Financial Reporting Standards ("NZ
IFRS"), Australian Accounting Standards ("AAS") or International Financial Reporting
Standards ("IFRS") and therefore, may not be comparable to similarly titled measures
presented by other entities, and should not be construed as an alternative to other
financial measures determined in accordance with NZ IFRS, AAS or IFRS." accounting
practice) measures. Information regarding the usefulness, calculation and reconciliation
of these measures is provided in the supporting material.
Furthermore, while all reasonable care has been taken in compiling this presentation,
Contact accepts no responsibility for any errors or omissions.
This presentation does not constitute investment advice.
Numbers in the presentation have not all been rounded and might not appear to add.
All logos and brands are property of their respective owners. All company, product and
service names used in this presentation are for identification purposes only.
All references to $ are New Zealand dollar.
Contact Energy / FY21 Interim Results / 15 February 2021
2
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
3
1H21 Highlights / Mike Fuge, CEO4-12
Operational Performance and Financial Results / Dorian Devers, CFO 13-26
Supporting Materials27-40
2
3
1
3
Contact Energy / FY21 Interim Results / 15 February 2021
PRESENTATION AGENDA
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
4
4
1H21 performance
highlights
Mike Fuge, CEO
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
5
1 Refer to slides 36 for a definition and reconciliation of EBITDAF and underlying profit
2 Refer to note A3 of the 2021 interim financial statements for a definition and reconciliation between cash flow from operating
activities and the non-GAAP measure operating free cash flow. Operating free cash flow represents cash available to repay
debt, to fund distributions to shareholders and growth capital expenditure.
Six months ended
31 December 2020
(1H21)
Six months ended
31 December2019
(1H20)
EBITDAF
1
$246m↑11% from $221m
Profit$78m↑32% from $59m
Operating free cash flow
2
$157m↑31% from $120m
Operating free cash flow per share
2
21.9 cps↑30% from 16.8cps
Stay-in-business(SIB)capital
expenditure (cash)
$31m↑15% from $27m
Operating earnings (EBITDAF
1
) were up by $25m when compared to
1H20.
The operating conditions in 1H21 were characterised by significant
uncertainty around:
•The near-term future of major energy users, including NZAS.
•The future deliverability of gas from declining gas fields.
Despite the uncertainty in operating conditions, active channel
management, combined with strong asset availability, saw Contact
capture higher wholesale prices and disciplined commodity risk
management to control fuel risks delivered an improved financial
performance over 1H20.
Contact completed a suite of major statutory geothermal outages in the
period on time and under budget.
SUMMARY OF KEY FINANCIAL PERFORMANCE MEASURES
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
6
1H21 HIGHLIGHTS
oEnterprise-wide programme management office set up identifying opportunities
to improve performance
•Transforming Ways of Working (TWOW) programme to redesign all
aspects of our work at Contact
•Consolidated physical office space
•Converted a second bilateral bank facility into a Sustainability Linked
Loan.
oMajor outages were managed well with net uplifts in generation when
geothermal plant returned.
oManaged fuel appropriately in line with changes in the market.
oSafety issues at a minimum with a high level of outages in 1H21
oDigital self service interactions up 45%
oLaunch of fully integrated chat service channel
oNPS growth from +17 for FY20 to +30 in 1H21
oOver 500k energy and broadband connections, year on year increase of
2.2%
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
7
FOCUS ON SUSTAINABILITY
Timeline
ESG performance dashboard
Climate
Change:
100% of
passenger fleet
to be electric
by 2023; 100% of
total fleet to be
zero emissions.
2030
ThemeCurrent positionTarget
Climate
Change
-22% reduction on scope 1&2
emissionsachieved
-53% electricpassenger fleet
-1PJ of gas equivalent industrialheat displaced
-Reduce scope 1 and 2 emissions by 34%,
Scope 3 by 30%
-100% electric passenger fleet
-100% total fleet to be zero emissions
Water
Project to reconsent Wairakei
operations and baseline
environmental studies conducted on
Waikato River.
Reduce impact on Waikato River by reducing
operationaldischarges.
Biodiversity
25k trees expected to be planted
2021
100k trees planted by 2024
Community
Wellbeing
37 community orgs supported across
NZ
100 community orgs supported across NZ
Energy
Hardship
$97k spent
(1,005 families / households)
$250k dedicated
Diversity
46% / 54%Between 40-60% gender balance
Sustainable
Finance
-87% of eligible debt certified green
-2 bi-lateral bankfacilities converted
to sustainability linked loans
-62 percentile in the Dow Jones
Sustainability Initiative (DJSI)
-100% of eligible debt certified green
-Allbi-lateral bank facilities converted to
sustainability linked loans.
-Inclusionin the Asia Pacific Index of DJSI
(currently 67 percentile)
Climate change:
Displace 1PJ of
industrial heat
with
electricity.
2022
Biodiversity:
100,000 trees
planted.
2024
2023
Climate
change:
100% of
passenger
fleet to be
electric.
2026
Climate Change:
Reduce scope 1&2
emissions by 34% and
scope 3, use of products
sold emissions by 30%.
Water: Significantly reduce
our impact on Waikato River
through operational
efficiency initiatives.
2021
Community
Wellbeing:
100 Community
organisationsand
initiatives supported
across NZ this year.
Sustainable Finance:
100% of eligible debt
to be certified green.
Biodiversity:
20,000 trees planted
in this financial year.
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
8
Gender diverse workforce
% of total workforce
Total generation emissions intensity
tCO2-e / MWh
FOCUS ON SUSTAINABILITY
Renewable generation
% of total generation
Customers with impaired credit now accepted
% of impaired credit customers accepted
Target
band
0.226
0.158
0.138
0.119
0.145
0.121
0.128
0.124
1H141H211H171H151H201H161H181H19
68%
86%
78%
84%
78%
82%
81%
80%
1H171H141H201H151H161H191H211H18
13%
25%
35%
40%
42%
1H192H202H191H201H21
43%43%43%
35%
48%
46%
57%57%
71%
57%
65%
52%
54%
Key
Management
Personnel
(7)
Board
(7)
Other
personnel
(792)
29%
Other
Managers
(116)
Other
Execs/GMs
(14)
Total
(964)
Senior
Management
(28)
2,433
sign ups
MaleFemaleJune-17 Female %
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
9
(3%)
(3%)
3%
3%
(2%)
13%
4%
1%
2%
1%
5%
(2%)
Source: EMI, Contact.
Does not include NZAS
National electricity demand (TWh)Regional change (%)
1H21 vs 1H20
Source: EMI, Contact
MARKET DEMAND
9
(1%)
1%
(3%)
0%
(6%)
NZAS curtailed production from the 4
th
potline (50MW) from 3 April 2020.
Demand flat despite impact of
COVID lockdown in Auckland
2.52.52.5
2.62.6
2.5
5.4
5.0
5.3
5.0
5.3
5.4
13.4
1H21
13.4
1H16
South Island (ex NZAS)
1H171H18
21.0
1H191H20
North Island
NZAS
21.3
20.8
21.2
21.4
21.3
13.3
13.4
13.4
13.5
0%
1%
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
10
Hydro generation was down
by 4% when compared with
1H20. This was driven by
lower North Island inflows in
the first quarter of 1H21 and
restricted South Island
generation resulting from
the transmission outages
from the Transpower Clutha
Upper Waitaki (CULWP)
Lines project.
With limited gas availability,
generation from coal
increased by 43% on 1H20.
Generation by type (TWh)
FUEL SUPPLY
Despite below average Southern hydro inflows between October and December 2020, storage has been held
relatively steady –this most likely indicates generators are holding storage in anticipation of the effects of dryer La
Nina conditions and reduced gas supply from Pohokura.
Generation from generator retailers
Source: EMI
Source: NZX
1.0
1.0
3.7
3.6
3.5
13.0
12.7
12.2
1.0
2.52.7
2.9
1H20
Hydro
1H21
0.6
0.7
Coal
0.8
1H19
Gas
Geothermal
Wind
20.6
20.7
20.6
1.5
3.0
2.0
0.0
1.0
0.5
4.0
2.5
3.5
4.5
Jul
2019
Jan
2019
Jan
2020
Jul
2020
Mean
Actual
1H20
1H21
Storage
TWh
National hydro storage (TWh)
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
11
Aluminium
Short-term external factors that
can influence the market
Wholesale and futures electricity pricing ($/MWh)
Source: EMI wholesale pricing
Short-term
wholesale
electricity
prices
Long-term pricing is linked to the long-run marginal costs of new renewable projects
plus costs associated with firming renewable intermittency to meet growing demand
Both long-dated and short-dated prices remain well above long-term averages, reflecting
higher thermal fuel costs and fuel risk
11
Gas availability -OMV
announced reduced volumes
from both Pohokura and Maui
gas fields over calendar 2021
Thermal fuel cost will
continue to remain elevated.
FUEL SUPPLY AND NEAR-TERM PRICE IMPACT
Methanol pricing up
by over >$4/GJ gas
equivalent (100%
increase)
Limited impact on
demand from
COVID. Total
demand flat
Aluminium prices sharply
higher (+$277/t, up 16%). New
term NZAS contract signed in
January 2021
Coal prices
increasing
+$31/t (39%)
0
20
40
60
80
100
120
140
160
180
200
220
Jun-
17
Jun-
14
Jun-
12
Jun-
10
Jun-
13
Jun-
15
Jun-
11
Jun-
16
Jun-
18
Jun-
19
Jun-
20
10 year
average
spot price =
$83.10 /MWh
Long-dated futures (>12 months)
Short-dated futures (<12 months)
Monthly average spot price
Changes since June 2020
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
12
RETAIL ELECTRICITY MARKET
12
Retail competition remains intense.
Divergent views on the value of a customer:
▪Tier 1: Mercury reducing customers, Meridian growing market share
▪Nova and Electric Kiwi continuing growth trajectory
▪Reducing market share of main players continues, Tier 2 market share
now at 16% (from 12% November 2018).
▪New connections were up slightly compared to prior year (~1.5% p.a.
increase)
Competitive landscape could change post announced strategic reviews
▪Contact is always open to considering value accretive transactions
aligned to its core business and is therefore monitoring therecent
strategic reviews that have been announced, including Trustpower
Retail, and will consider a range of options and their potential
implications.
Change in customer connections (000s)
2yr % change
2yr ICP delta (1000s)
Retail tariff changes (c/ kWh)
Tier 2: +85k customers
Despite sharply higher wholesale prices over the last three years, tariffs up
by a compound annual growth rate of 1% p.a. reflecting intense
competition and diverging views of long-term wholesale prices.
Regulatory reset of Electricity Distributors WACC, has led to network cost
reductions since 1 April 2020 partially offsetting rising energy costs over
the period.
12 months
ended:
Tier 1: -26k customers
Source: EMI
Source: MBIE
-3%
2%
-12%
12%
-2%
43%
8%
13%
117%
79%
-43%
-60
-40
-20
0
20
40
60
80
100
120
ContactVocusGenesisPulseNovaMercuryMeridianTrustpowerFlickElectric
Kiwi
Other
16.9
17.1
17.4
18.1
19.4
11.9
12.2
12.3
12.1
11.1
Nov-16Nov-19
29.7
Nov-17
29.3
Nov-18Nov-20
28.8
30.2
30.5
+1%
Lines (c/kWh)
Energy & Other (c/kWh)
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
13
13
Operational
performance and
financial results
Dorian Devers, CFO
20
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
14
Profit ($m)
EBITDAF ($m)
Strong
channel
management
with gradual
re-pricing of
channels
Price
impact of
lower gas
availability
continuing
Lower
geothermal
generation
year on year
impacted by
4-yearly Te
Mihioutage
partially
offset by
increased
hydro
generation
Market
making
marginally
improved on
1H20
despite
more
onerous
obligations
Lower
electricity
transmission
costs as
some HVDC
costs fully
recovered.
Transpower
regulated
WACC also
lower.
5
4
321
1H21 RESULTS
Price
Volume
1H20
profit
Net interest
costs
EBITDAF
DepreciationTax
Fair value of
financial
instruments
1H21 profit
Natural gas
constraint
and carbon
Pricing1H20
EBITDAF
RenewablesOther
income
Fixed costs
inc. opex
1H21
EBITDAF
59
78
25
6
2
4
2
+19
24
2
7
7
1
1
221
-6
246
+25
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
15
1H21 RESULTS
Wholesale EBITDAF ($m)
Customer EBITDAF ($m)
Corporate / unallocated costs ($m)
Refer to slides 16 -18
Refer to slide 19
27
2
1H211H20Generation
costs
(including
acquired
generation)
Total
contracted
revenue
0
Trading,
merchant
revenue
and losses
204
229
+25
30
30
2
5
1
7
Electricity
volumes
1H21OPEX1H20Electricity
prices
Other
products*
1
2
0
-13-13
1H211H20
0
Electricity gross
margin
Electricity and
network, levies
and meters cost
inflation
Price recovery
*Other products includes retail gas and broadband gross margins *Simply included within Wholesale EBITDAF
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
16
Electricity generated or acquired (GWh)
1H201H21
Electricity generated or acquired costs ($m)
1H21 RESULTS: WHOLESALE BUSINESS
Gas and diesel
Acquired
Thermal
Renewable
Gas storage
Carbon costs
Electricity and gas
transmission and levies
Other operating costs
Hydro generation up 98GWh on 1H20 (+5%), in line with
that expected in a mean year. Geothermal volumes were
124GWh down on prior year (down on an average 1H
generation by 126GWh) following a significant 4-yearly
outage programme in the period.
•Renewable generation costs were down by $7m.
Transmission costs for renewable assets down by
$6m as HVDC pole 1 costs ended, other operating
costs down $1m.
Thermal generation costs were up by $10m due to
higher gas (1H20 $6.75/GJ, 1H21 $7.20/GJ) and carbon
prices (1H20 $17.6/unit, 1H21 $24/unit) and marginally
higher thermal generation in the six months.
•Gas and carbon unit costs up from $71/MWh in 1H20
to $79/MWh (+11%)
•Fixed costs relating to AGS and other operating costs
were up by $1m on the prior comparative period as
the AGS facility expansion was commissioned on 30
September 2020
Acquired generation was in line with the prior period as
Contact’s improved gas position was offset by the cover
for the planned geothermal outages.
1,649
1,524
1,886
1,984
875
918
208
189
Hydro
Thermal
1H201H21
Acquired
Geothermal
4,617
4,615
60
47
53
46
88
25
98
18
23
54
22
59
11
16
11
12
23
22
Generation
type
Cost
type
Generation
type
Cost
type
173
171171
173
+2
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
17
1H21 RESULTS: WHOLESALE BUSINESS
1,959GWh
$93.2/MWh
Contracted revenue ($m)
982GWh
$78.4/MWh
1,198GWh
$84.3/MWh
-27GWh
+$8.1/MWh
-221GWh
-$1.2/MWh
+218GWh
+$13.3/MWh
•Fixed price variable volume electricity sales to the
Customer segment and C&I customers ended
248GWh lower than 1H20 (-$20m), this was
partially offset by higher prices (+$15m)
predominantly to the Customer business,
reflecting higher wholesale prices over the three
preceding years.
•CFD sales were up by 218GW, despite lower
sales to NZAS (down by 83GWh), as nearer term
higher priced channels were prioritised (+$31m)
•Steam revenue was in line with 1H20 with a
reduction in volume but increased tariffs on rising
carbon costs.
•Other income was up by $2m predominantly on
profit from market making.
24
169
183
96
76
70
101
17
17
Customer sales
Other net income
0
1H20
CFD sales
3
Steam sales
1H21
C&I netback
352
379
+27
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
18
1H21 RESULTS: WHOLESALE BUSINESS
Trading EBITDAF ($m)
Long / short position (GWh)
$108.8/MWh
5.5%
($6.2 / MWh)
6.4%
+$1.8/ MWh
•27GWh increase in
merchant sales volumes.
The price received for this
“long” generation was up by
$9.5/MWh.
•Larger price separation
during periods of
transmission outages saw
LWAP/GWAP increase by
$9m.
Trading revenue
Merchant sales: short-term sales channel available when the
spot prices exceed the opportunity cost of Contact generation.
Pool purchase: short-term opportunisticpurchases from
the spot electricity market when better value than
alternatives (adjusted for volatility and volume).
LWAP / GWAP losses: locational price differences
between where electricity is generated and purchased.
$117.1/MWh
Spot purchases and
sell CFD settlement
Spot sales and buy
CFD settlement
Merchant generation
48
56
-24
-33
1H211H20
23
23
0
449
476
476
-4,091
449
4,118
-4,118
-1
1H20
4,091
0
1H21
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
19
1H21 RESULTS: CUSTOMER BUSINESS
EBITDAF ($m)
Electricity tariff changes balance the
regulatory pressures, the competitive
environment and rising input costs:
•End to further Prompt Payment
Discounts -48% reduction in PPD
not taken
•Around ~40% of customers
received a price increase in FY20
Continue to smooth the impact of
higher electricity costs for customers,
which are up by 11% on 1H20.
•Combination of targeted retail
price rises and a reduction in
network costs from 1 April 2020
has seen gross margins stable.
Retail gas tariffs to SMEs will need to
rise to reflect rising gas and carbon
costs.
Strong growth in Broadband
connections (>90% on 1H20).
Revenue & Tariff
1
($m)
1H201H21Variance
$m$mTariff$mTariff
Electricity gross revenue
448.8445.7
245.8(3.1)4.6
PPD not taken
6.13.1
(2.9)
Incentives paid
-4.1-2.3
1.8
Net revenue (cash)
450.8446.5
246.3(4.3)4.0
Capitalisedincentives
4.13.3
Amortisedincentives
-4.6-4.0
Net revenue (P&L)
450.4445.8
245.8(4.6)3.8
Gas revenue
40.541.3
24.70.81.6
Broadband revenue
7.213.0
65.15.7(5.6)
Other income
2.52.6
0.1
Total revenue
500.5502.6
2.1
Contract Asset (closing)
10.98.5
(2.4)
1. Tariff is $/MWh for electricity, Gas $/GJ and $ per month per customer connection for broadband
5
5
64
63
-41
-40
3
1H21
0
2
1H20
Broadband Gross Margin
30
30
Electricity
Gross Margin
Gas Gross Margin
Operating costs
Other
-2
0
Gross Margin is Revenue less Cost of Goods [Networks, meters, levies, energy, carbon and
broadband]
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
20
Other operating cost movement ($m)
Other operating cost ($m)
Portfolio, performance and non-recurring
Underlying
movement
Underlying movement
$2.3m from transformative ways of working
(TWOW) and lower advertising spend.
•Travel has reduced by $1.1m from TWOW and
changing COVID levels.
•Change in sales channels resulting in $0.9m
saving from a reduction in door-to-door
marketing.
•Bad debts down by $0.7m on prior year due to
focused credit management.
Broadband
Further investment in FTEs to support broadband
growth.
Benefits of change in provider and further
digitisation resulting in 52% productivity increase
as measured by broadband connections per FTE.
Other operating cost trajectory
Reduction of 5% CAGR since FY16.
Underlying savings
Inflation
1.3
1.0
2.3
0.8
1.0
104.2
Broadband1H20Simply Energy
acqusition
0.4
IncentivesStrategyNet Cost Savings1H21
-1.3
102.0
132
125
114
110
102
104
1H161H171H181H191H201H21
-5%
Invest in
growth
1H21 RESULTS
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
21
CFDs725GWh$64/MWh$46m
C&I1,675GWh$81/MWh$136m
Retail2,014GWh$117/MWh$236m
Other income³$29m
$447m
Hydro1,990GWh$0/MWh-$0m
Geo1,650GWh$1/MWh-$2m
Thermal⁴974GWh$66/MWh-$64m
Acquired50GWh$100/MWh-$5m
-$71m
Length⁵$27mTransmission/Storage-$35m
Location losses⁶-$18mOperatingexpenses-$104m
Total$9mTotal-$139m
1H assumptions that deliver expected & normalised EBITDAF of $480m over a financial year
EBITDAF reconciliation to 1H21
Hydrology & Asset
availability optimise generation
3
4
Total
x
=
Access to and price of fuel* drives
financials & risk position
Natural gas constraintand carbon
Normalised & Expected
Lower renewables
Pricing
Other income
Actual
Natural gas availability has led to increased cost
of gas; carbon costs continue to rise
Higher thermal generation required to offset below mean
renewable generation (132GWh) at expected thermal SRMC
Preserved retail margin despite rising wholesale electricity
costs; shorter term wholesale channels prioritised
Channel choices maximise
long term value¹
1
Net price² driven by
best commercial practices
2
Total
x
=
Trading delivers value to more
than offset locational losses
5
Digitalisation & continuous
improvement optimise fixed costs
6
1H21 RESULTS
x
x
x
x
x
x
x
=
=
=
=
=
=
=
* Fuel is natural gas and carbon costs
1.All volumes are at the Grid Exit Point (GXP)
2.Net price is equal to tariff less pass-through
costs (network, meters and levies) /MWh
3.Steam sales, retail gas gross margin, other income
4.Gas price of $6/GJ, carbon price of $20/unit and thermal portfolio heat rate (9.25GJ/MWh)
5.Length of 500GWh p.a. assumed
6.Locational losses of 5.6% on spot purchases and settlement
of CFDs sold at a wholesale price of $75/MWh
Fixed costs
Other operating cost control (-$4m), transmission
costs lower (-$6m)
unit cost
availability
13
20
9
14
1
246
-15
246
0
In line with expectations
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
22
•
EBITDAF up $25m on improved pricing across key channels
•
Working capital changes $17m favourable due to net gas extraction from storage and gas swap
arrangements
•
Capital expenditure (cash) $31m in 1H21, $4m more than 1H20 due to statutory geothermal outage
programme
6 months
ended
31 December
2020
6 months
ended
31 December
2019
Comparison
against 1H20
EBITDAF$246m$221m↑$25m
Workingcapital changes$22m$5m↑$17m
Taxpaid($58m)($56m)↓($2m)
Interest paid, net of interest capitalised($23m)($25m)↑$2m
SIBcapital expenditure($31m)($27m)↓($4m)
Non-cash items includedin EBITDAF$1m$2m↑$1m
Operating free cash flow$157m$120m↑$37m
Operating free cash flow per share21.916.8↑5.1
Free cash flow$157m$120m↑$37m
Cash conversion (OpFCF/EBITDAF)64%54%↑10%
SIB capital expenditure –accounting ($m)
-Investment in associates
-Growth investment
Dividends paid
Sources and uses of cash ($m) 1H21
1H21 RESULTS
13
165
157
10
Cash change
8
Sources
4
Uses
OFCF
Debt movement
179
179
0
20
40
60
80
1H211H171H161H201H181H19
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
23
•
Face value borrowings net of cash (excl. leases) increased by $15m to $1,051m from 30 June 2020. This was primarily due
to growth investments exceeding operating free cash flow.
•
Weighted average interest rate reduced by 29bp compared to FY20. This was due to an increased proportion of floating
rate debt and historically low interest rates during 1H21.
•
An investment grade credit rating (net debt / EBITDAF <2.8x) continues to be targeted.
•
Contact is in the process of converting further bank facilities to sustainability linked loans.
FY17
5.25%
5.61%
5.75%
FY16
5.32%
5.14%
FY19FY18FY20
4.96%
1H21
Closing net debt ($m)
Face value of borrowings less cash
Interest rate (%)
Weighted average net interest¹ on average borrowings
net of cash
Net debt to EBITDAF (x)
Includes S&P adjustments (prior to FY20 AGS was treated as a
lease)
Borrowing maturities ($m)
Average tenor of 2.7 years as at 31 December 2020
1,0221,0541,6471,5701,4681,075
Average borrowings net of cash ($m)
1H21 RESULTS
1.Net interest includes all interest on borrowings, bank commitment fees and
deferred financing costs. Unwind of leases and provisions not included.
990
FY17
23
41
1,504
1,608
-5
968
-6
1H21FY16
38
1,410
-3
22
FY18
25
-47
1,626
FY19
1,036
-44
FY20
22
1,051
-36
1,445
1,539
1,014
1,037
Lease obligationsBorrowingsCash on hand
4
150
100
153
100
136
88
325
191
50
60
FY24FY23FY26
4
FY21
77
FY22
77
FY25
7
11
FY27 -
FY29
482
302
210
167
143
99
Undrawn bank facilities
USPPDrawn bank facilities
DomesticNEXI
3.1
3.0
2.7
2.5
2.4
3.2
3.2
3.1
2.3
2.4
FY20FY16FY17FY19FY18
SnapshotSmoothed
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
24
GUIDANCE
47
* Excludes any additional abnormal impacts due to COVID-19
FY211H21 resultGuidance commentary
Other operating costs
$200–210m*$104mNo change
Stay in business capital
expenditure
$55–60m$31mNo change
Cashspend (‘Totex’)
$255–270m$135mNo change
Depreciation and
amortisation
$215–225m$114mNo change
Net interest (accounting)
$45 –50m$26m
No change
Cash interest(in operating
cash flow)
$40–45m$23m
Cashtaxation
$75 –85m$58m (2/3 payments in 1H)No change
Geothermal volumes
3,100GWh1,524GWh
Significant outages completed in 1H21 –plant back in service
ahead of schedule
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
25
The New Zealand regulatory framework is being
adapted to deliver on this societal imperative.
CLIMATE CHANGE AND REGULATION
Society is demanding action on climate change, with clear progress expected.
¹ A commitment made by the Government when New Zealand joined the Powering Past Coal Alliance.
² Review complete, findings announced and into implementation.
Coal
phase out
for electricity
generation
by 2030¹
Current
Tiwai
contract
ends
2024
Ban on
offshore
oil and gas
exploration
Transport
policies
Net zero
NZ carbon
emissions
by 2050
NZ Battery
Project
Electricity
Pricing
Review²
CC
Response
(Zero
Carbon)
Amendment
Act
Freshwater
reform
Transmission
Pricing
Methodology
Climate
Change
Commission
(CCC)
Potential electricity demand impactPotential renewable generation impactPotential wider electricity
sector impact
In progress
Announced
25
Govt 100%
renewable
generation
target by
2030
Emissions
Trading
Scheme
Ban on
new gas
connections
from 2025
Carbon
Emissions
budgets
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
26
26
Questions
48
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
27
27
Supporting
materials
49
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
28
ASX electricity forward pricing ($/MWh)
Source: ASX Energy 21 Jan 2021
28
ASX FUTURES
130
102
111
112
92
93
102
103
87
91
98
104
81
141
158
160
119
126
129
110110
117
119
107
109
117
119
95
146
Q4 2022Q1 2021Q3 2021Q2 2021Q4 2021
104
121
Q1 2022Q2 2022Q3 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024
146
BENOTA
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
29
Contact generation output sold to the national grid (GWh)
Electricity and generation sales position (GWh)
1H20
1H21
OPERATIONAL DATA
Merchant sales
CFD gross sales
Sales to C&I
Sales to Customer
1,087
1,623
1,552
1,652
1,524
2,129
2,010
2,073
2,045
1,984
1,522
1,036
685
966
836
825
870
4,533
1H191H14
1,166
2,168
1,479
1H151H201H161H17
1,635
1,726
1H18
1,886
4,669
1,649
1H21
Thermal
generation
Geothermal
generation
Hydro
generation
4,738
4,812
4,310
4,327
4,359
4,378
208
189
982
50
980
48
449
476
Sales
1,986
0
4,378
GenerationGeneration
Direct generation
Acquired generation
1,198
1
1,959
Sales
Pool purchase
4,618
1,202
Spot generation
4,618
4,359
4,6154,615
-3
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
30
Geothermal fuel extracted at Wairakeivs consented
(GWh)
Wairakei, Poihipiand TeMihiconversion effectiveness
(MWhper kTextracted)
% of geothermal fluid extractedWairakei mass extracted
GEOTHERMAL PERFORMANCE
0
20
10
30
40
50
5
15
25
35
45
101%
88%
100%
1H15
98%
1H16
94%
1H171H18
97%
1H191H201H21
95%
-5%
30.3
30.8
30.6
31.0
32.3
30.7
30.3
1H181H151H201H161H171H191H21
0%
-1%
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
31
Hydro generation (GWh)
Geothermal generation (GWh)
Thermal generation (GWh)
Te Huka
Ohaaki
Poihipi
Wairakei
Te Mihi
Geothermal generation was 125GWh lower than 1H20 following
the 4-yearly statutory TeMihioutage in the period
Hydro generation was 6GWh below mean (HY 1,990GWh, FY
3,900GWh) in 1H21, 98GWh above 1H20. During the period
Transpowerhad a number of outages to progress the Clutha
Upper WaitakiLines project this meant that we could not process
all of the waterthrough our hydro stations and had to spill it.
Thermal generation volumes were 43GWh higher than 1H20 on lower sales,
stronger renewables and contracted gas.
OPERATIONAL DATA
Te Rapa -spot
Whirinaki
TeRapa -Direct generation
Stratford Peakers
TCC
Otahuhu
Total inflowsInflows storedSpill
582
488
719
716
709
559
569
612
539
486
493
567
208
199
209
203
181
129
165
159
161
155
171
165
98
94
99
92
95
104
1,623
1,649
1H201H16
1,552
1H171H181H211H19
1,726
1,652
1,524
2,213
1,780
2,148
2,789
2,432
2,003
-30
-197
-175
-20-67
-35
-707
-274
1H19
-73
-110
27
1H16
1,984
1H171H18
1,635
-73
1H20
2,045
1H21
2,010
2,073
1,886
553
298
463
649
593
620
156
275
369
69
119
130
211
111
133
114
111
117
116
52
50
51
50
48
54
1H16
4
1H18
0
0
1H17
736
2
1H19
1
1H20
3
1H21
1,090
1,016
887
875
918
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
32
Taranaki combined cycle (TCC)
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
1H1737795%18%2985215
1H1837751%28%46311051
1H1937763%39%64911978
1H2037778%36%59311367
1H2137796%37%62012779
Hydro
Geothermal
Peakers(including Whirinaki)
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
1H1778491%60%2,0734287
1H1878495%47%1,63588144
1H1978495%59%2,045129265
1H2078494%54%1,88698184
1H2178485%57%1,984110218
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
1H1742989%82%1,5525078
1H1842997%91%1,72686148
1H1942591%88%1,652137226
1H2042594%88%1,649106175
1H2142586%81%1,524118180
TeRapa (spot generation only)
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
1H17
360
96%16%2766017
1H18
360
98%21%37012044
1H19
360
79%4%7323117
1H20
360
78%7%12015318
1H21
360
88%8%13315020
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
1H1741100%31%111536
1H184199%37%1339312
1H194198%32%11416118
1H2041100%31%11111613
1H214199%33%11712214
OPERATIONAL DATA
*TCC is currently deratedby 3MW due to vibration. This is not reflected in the availability figure.
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
33
Opening storage
Gas extracted
Gas injected
Inflows
Opening storage
Releases
Haweastrorage(GWh)Gas storage (GWh equivalent)
Using the FY20 thermal efficiency (9.04 TJ/GWh)
CLOSING STORAGE
CLOSING STORAGE
Source: NZX hydro
OPERATIONAL DATA
104
152
103
53
159
152
257
277
174
216
231
252
294
351
244
-228
-299
-140
-282
-146
-302
-246
-412
104
152
103
53
159
152
257
90
277
174
216
231
252
294
351
244
299
-228
-299
-140
-282
-146
-302
-246
-412
-214
2H181H18
152
1H191H172H172H19
27
1H20
257
2H201H21
90
27
103
53
159
152
175
862
770
833
623
495
550
675
164
208
93
60
153
248
85
-256
-145
-303
-188
-98
-123
-205
2H18
556
1H181H191H211H202H192H20
770
833
623
495
550
675
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
34
FUEL OUTLOOK
Portfolio requirements for thermal generation (TWh)
-2.9
Gas supply and demand CAL21 (PJ)
Hydro variation >>
* Hydro generation in FY12
GeothermalExpected
2021
generation
(including
losses)
Hydro in
"extreme
dry" year*
Maximum
thermal
required
"Extreme
dry" to
"mean"
year swing
Mean
thermal
required
Co-
generation
Maximum
thermal
required
"Mean" to
"wet" year
swing
Minimum
thermal
required
Contracted
3.0
11.0
4.3
1.0
4.0
2.0
Mean Thermal
Retail
Mean Year
demand
Co-generation
11.2
CY21
Position
14.0
Balance from storage
Expected further
spot market purchases
8.0
1.5
0.5
0.2
-0.3
-0.3
-2.9
-3.3
-1.0
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
35
Contracted gas volumes (PJ)
Sources and uses of gas (PJ)
Closing storage
Ahuroagas storage monthly
injections and extractions (PJ)
Short-term gas
GenesisMaui -notified
Swap
Maui -contingent
Pohokura
Storage balance at 31 December 2020 was 5.0PJ
OPERATIONAL DATA
Gas injectedGas extracted
6.9
4.1
6.5
4.5
2.3
5.6
8.0
1.2
3.1
3.4
4.5
5.0
5.0
7.5
4.4
4.5
4.5
7.6
4.5
0.2
4.1
6.9
4.0
4.7
CY18CY16CY17
0.0
CY19CY20CY21
0.0
2.6
CY22
16.6
18.6
10.9
18.4
16.6
18.0
16.5
0.16
Jan-
20
0.21
-0.07
Feb-
20
-0.23
Mar-
20
0.62
0.00
Apr-
20
0.50
-0.06
Dec-
20
0.17
May-
20
0.03
0.72
-0.74
Jun-
20
-0.40
Jul-
20
0.18
0.15
-0.38
Aug-
20
0.09
Nov-
20
-0.33
Sep-
20
0.14
-0.40
Oct-
20
-0.22
-0.01
0.05
-0.12
7.8
7.0
7.6
5.6
4.5
5.0
6.1
11.1
9.3
10.0
7.3
9.8
6.7
9.4
-2.0
-1.1
1.2
-9.7
-7.4
-8.1
-5.8
-7.9
-5.4
-8.2
-1.4
-1.4
-1.7
-1.4
-1.8
-1.4
-1.7
-0.4
-0.2
-0.1
-0.1
0.0
2H20
-0.8
0.0
Opening storage
0.5
1H18
6.1
2H18
0.6
1H192H19
5.0
1H211H20
Net extraction
Generation
Customer sales
Wholesale sales
-0.5
Purchases
7.0
7.6
5.6
5.0
0.0
4.5
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
36
•EBITDAF is Contact’s earnings before net interest expense, tax, depreciation, amortisation, and
change in fair value of financial instruments.
•EBITDAF is commonly used in the electricity industry so provides a comparable measure of Contact’s
performance.
•Reconciliation of statutory profit back to EBITDAF:
6 months ended
31 December 2020
6 months ended
31 December 2019
Variance onprior year
$m%
Profit78 591932%
Depreciation and amortisation114110(4)(4%)
Change in fair valueof financial
instruments
(4)(2)2100%
Net interest expense262827%
Tax expense3226623%
EBITDAF246 221 2511%
•Depreciation and amortisation, change in fair value of financial instruments, net interest and tax
expense are explained in the following slide
The adjustments from EBITDAF to reported profit and
movements on 1H20 are as follows:
•Depreciation and amortisation: Increased by $4m (4%) on
1H20 primarily resulting from the review of Ohaakiplant
assets which has resulted in accelerated depreciation
impacting 1H21 only.
•Net interest expense: Reduced by $2m (7%) over 1H20 with
higher average borrowings offset by lower interest rate as well
as the capitalisationof interest relating to the Tauhara
geothermal project (1H21 $4m), a $1m increase against
1H20.
•Tax expense for the period was $6m up following higher
operating earnings and higher depreciation partially offset by
lower net interest expense.Tax expense for 1H21 represents
an effective tax rate of29%. The effective tax rate for 1H20
was 30%.
NON-GAAP PROFIT MEASURE
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
37
Unit
1H171H181H191H201H21
Revenue$m1,0371,1901,3631,1101,141
Expenses$m7739541,072889895
EBITDAF$m264236291221246
Profit/(loss)$m96582765978
Operating free cash flow$m134141203120157
Operating free cash flow per sharecps18.719.728.316.821.9
Dividends declared
1
cps11.013.016.016.014.0
Total assets$m5,5875,3905,1404,8504,738
Total liabilities$m2,7662,6632,2972,1702,212
Total equity$m2,8212,7272,8432,6802,526
Gearing ratio%36.435.429.729.931.1
HISTORIC PERFORMANCE
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
38
1H211H20
Reference number for
Wholesale segment
note (see following
page)
Six months ended 31 December 2020Six months ended 31 December 2019
VolumeGWAPVolumeGWAP
Note: this table has not been rounded andmight not addGWh$/MWh$mGWh$/MWh$m
Electricity sales to Customer
1,95993.2183
1,986 85.2 169 1
Electricity sales to C&I (netback)
93476.772
1,15279.1 91
2Electricity sales –Direct
48110.45
50105.1 5
Electricity sales to C&I
98279.078
1,202 80.2 96
CfDs–Tiwaisupport
353
436
3
CfDs -Long term sales
301
301
CfDs -Short term sales
544
243
Electricity sales -CFDs
1,19884.3101
980 71.0 70
Total contracted electricity sales
4,13887.1361
4,168 80.4 335
Steam sales
39044.117
343 49.4 17 4
Other income
1
(1)5
Net income on gas sales
1
1 6
Net income on electricity related services
1
0 7
Net other income
2
(0)
Total contracted revenue (1)
4,52884.0380
4,512 77.9 352
8
Generation costs
4,426(34.3)(152)
4,409(33.6)(148)
Acquired generation cost
189(117.4)(22)
208(111.3)(23)9
Generation costs (including acquired generation) (2)
4,615(37.7)(174)
4,617 (37.1)(171)
Spot electricity revenue
4,378117.1513
4,359105.2 459 10
Settlement on acquired generation
189116.822
208124.7 26 11
Spot revenue and settlement on acquired generation (GWAP)
4,567117.1535
4,567 106.1 485
Spot electricity cost
(2,893)(127.6)(369)
(3,138)(114.1)(358)12
Settlement on CFDs sold
(1,198)(119.0)(142)
(980)(105.2)(103)13
Spot purchases and settlement on CFDs sold (LWAP)
(4,091)(125.1)(512)
(4,118)(112.0)(461)
Trading, merchant revenue and losses(3)2323
Wholesale EBITDAF (1+2+3)229 204
SEGMENTAL PERFORMANCE
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
39
Wholesale segment
Reference to detailed operating
segment performance
Comment
Revenue
C&I electricity –Fixed Price2
C&I electricity –Spot2-spot
Spot sales are regarded as a pass-through and not reflected in
performance reporting, any margin included in C&I netback
Wholesale electricity, net of hedging3+10+13
Electricity related services revenue7
Inter-segment electricity sales1
Gas6
Revenuefrom wholesale gas sales, purchase cost in gas and
diesel purchases
Steam4
Other income5
Costs
Electricity purchases, net of hedging9+11+12
Electricity purchases–Spot2-spotSpot sales are regarded as a pass-through
Electricity related services cost7
Gasand diesel purchases8 (less costs identified relating to 6)Includeswholesale gas sales purchases (if any)
Gas storage costs8
Carbon emissions8
Generation transmission andreserve costs8
Electricity networks,transmission and meter costs –Fixed Price2
Electricity networks,transmission and meter costs –Spot2-spotSpot sales are regarded as a pass-through
Gas networks,transmission and meter costs8
Other operating expenses8 (less costs identified relating to 2)
C&Ioperating costs are included in the calculation of netback
(2) and are excluded from generation operating costs
SEGMENT NOTE TO OPERATIONAL PERFORMANCE
Contact Energy / FY21 Interim Results Presentation / 15 February 2021
40
Residential electricityunit1H181H191H201H21Residential gasunit1H181H191H201H21
Average connections#361,412352,159355,216357,756Average connections#60,87061,33261,95960,563
Sales volumesGWh1,3431,3351,3281,349Sales volumesTJ946936911954
Average usageper ICP3.73.83.73.8Average usageper ICP15.515.314.715.7
Tariff$/MWh247.8249.9248.2251.1Tariff$/GJ29.629.130.631.3
Network, meters and levies$/MWh-123.3-120.3-119.0-111.7Network, meters and levies$/GJ-18.2-16.7-16.7-14.6
Energy costs$/MWh-84.2-85.4-91.6-101.1Energy costs$/GJ-5.1-5.6-7.6-8.3
Gross margin$/MWh40.344.237.638.3Carbon costs$/GJ-0.5-0.9-1.4-1.4
Gross margin$ per ICP150168141144Gross margin$/GJ5.85.94.97.0
Gross margin$m54595052Gross margin$ per ICP90907388
Gross margin$m5645
SME electricityunit1H181H191H20
1H21
SME gasunit1H181H191H20
1H21
Average connections#57,30255,15655,29551,407Average connections#3,5823,8653,9913,858
Sales volumesGWh564539533465Sales volumesTJ679809845720
Average usageper ICP9.89.89.69.0Average usageper ICP189.7209.4211.8186.7
Tariff$/MWh222.9224.4226.7230.7Tariff$/GJ15.514.814.915.8
Network, meters and levies$/MWh-105.2-106.5-112.2-104.4Network, meters and levies$/GJ-4.4-5.3-5.4-7.9
Energy costs$/MWh-81.9-83.6-89.3-99.7Energy costs$/GJ-5.1-5.6-7.6-8.3
Gross margin$/MWh35.734.225.126.5Carbon costs$/GJ-0.5-0.9-1.4-1.4
Gross margin$ per ICP352335242240Gross margin$/GJ5.53.00.5-1.9
Gross margin$m20181312Gross margin$ per ICP1,049625107-352
Gross margin$m420-1
Customer EBITDAF
Electricity Gross margin$m74776364
Gas Gross Margin$m9855
Broadband Gross Margin$m000-2
Total Gross Margin$m83866867
Other income$m3223
Other operating costs$m-41-40-41-40
Customer EBITDAF$m45483030
Corporate allocation (50%)¹$m-7-7-7-7
Retailing EBITDAF$m39412323
EBITDAF margins (% of revenue)%7.8%8.2%4.7%4.6%
1.Prior to FY18,corporate costs were fully allocated to the reporting segments.
HISTORIC PERFORMANCE
---
Corporate Action Notice
(Other than for a Distribution)
26936593 Page 1 of 2
Section 1: issuer information (mandatory)
Name of issuer Contact Energy Limited
Class of Financial Product Ordinary shares
NZX ticker code CEN
ISIN (If unknown, check on NZX
website)
NZCENE0001S6
Name of Registry Link Market Services Limited
Type of corporate action
(Please mark with an X in the relevant
box/es)
Share purchase
plan
X Renounceable
Rights issue
Capital
reconstruction
Non
Renounceable
Rights issue
Call Bonus issue
Record date 12/2/2021
Ex-Date (one business day before the
Record Date)
11/2/2021
Currency NZD
Section 6: Share purchase plans
Number of financial products to be
issued
OR
Maximum dollar amount of Financial
Products to be issued
Up to NZ$50,000 (comprising a share purchase plan
component of NZ$15,000 per eligible shareholder,
with provision to apply for up to a further NZ$35,000)
per eligible shareholder / beneficial owner with a
registered address in New Zealand or Australia, for
an aggregate offer size of up to NZ$75 million (with
the ability to accept oversubscriptions at Contact
Energy Limited's discretion) (the Retail Offer).
Minimum application amount (if any) N/A
Exercise Price The lower of: (a) the price paid by investors in CEN’s
placement announced on 15 February 2021, being
NZ$7.00; and (b) a 2.5% discount to the volume
weighted average market price of CEN shares traded
on the NZX over the five business day period prior to
and including the closing date for the Retail Offer,
rounded down to the nearest cent.
Scaling reference date By reference to holdings of eligible shareholders at
the Record Date
Closing Date 5/3/2021
Allotment Date
12/3/2021
2 of 2
Section 7: Authority for this announcement (mandatory)
Name of person authorised to make this
announcement
Kirsten Clayton
Contact person for this announcement Kirsten Clayton
Contact phone number 021 228 3539
Contact email address companysecretary@contactenergy.co.nz
Date of release through MAP 15/2/2021
---
This appendix is available as an online form Appendix 3B
Only use this form if the online version is not available Proposed issue of +securities
+ See chapter 19 for defined terms
31 January 2020 Page 1
Appendix 3B
Proposed issue of +securities
Information and documents given to ASX become ASX’s property and may be made public.
If you are an entity incorporated outside Australia and you are proposing to issue a new class of
+securities other than CDIs, you will need to obtain and provide an International Securities
Identification Number (ISIN) for that class. Similarly, if you are an entity incorporated outside Australia,
the +securities proposed to be issued are in an existing class of +security but the event timetable
includes a period of rights or +deferred settlement trading, you will need to obtain and provide an ISIN
code for the rights and/or the deferred settlement +securities. Further information on the requirement
for the notification of an ISIN is available from the Create Online Forms page. ASX is unable to create
the new ISIN for non-Australian issuers.
*Denotes minimum information required for first lodgement of this form, with exceptions provided in
specific notes for certain questions. The balance of the information, where applicable, must be
provided as soon as reasonably practicable by the entity.
Part 1 – Entity and announcement details
Question
no
Question Answer
1.1 *Name of entity
We (the entity here named)
give ASX the following
information about a proposed
issue of
+
securities and, if ASX
agrees to
+
quote any of the
+
securities (including any
rights) on a
+
deferred
settlement basis, we agree to
the matters set out in
Appendix 3B of the ASX
Listing Rules
Contact Energy Limited
1.2 *Registration type and number
Please supply your ABN, ARSN,
ARBN, ACN or another registration
type and number (if you supply
another registration type, please
specify both the type of registration
and the registration number).
ARBN 080 480 477
1.3 *ASX issuer code CEN
1.4 *This announcement is
Tick whichever is applicable.
☒ A new announcement
☐ An update/amendment to a previous announcement
☐ A cancellation of a previous announcement
1.4a *Reason for update
Mandatory only if “Update” ticked in
Q1.4 above. A reason must be
provided for an update.
-
1.4b *Date of previous
announcement to this update
Mandatory only if “Update” ticked in
Q1.4 above.
-
+ See chapter 19 for defined terms
31 January 2020 Page 2
1.4c *Reason for cancellation
Mandatory only if “Cancellation” ticked
in Q1.4 above.
-
1.4d *Date of previous
announcement to this
cancellation
Mandatory only if “Cancellation” ticked
in Q1.4 above.
-
1.5 *Date of this announcement 15 February 2021
1.6 *The proposed issue is:
Note: You can select more than one
type of issue (e.g. an offer of
securities under a securities purchase
plan and a placement, however ASX
may restrict certain events from being
announced concurrently). Please
contact your listing adviser if you are
unsure.
☐ A +bonus issue (complete Parts 2 and 8)
☐ A standard +pro rata issue (non-renounceable or
renounceable) (complete Q1.6a and Parts 3 and 8)
☐ An accelerated offer (complete Q1.6b and Parts 3 and 8)
☒ An offer of +securities under a +securities purchase
plan (complete Parts 4 and 8)
☐ A non-+pro rata offer of +securities under a
+disclosure document or +PDS (complete Parts 5 and 8)
☐ A non-+pro rata offer to wholesale investors under an
information memorandum (complete Parts 6 and 8)
☒ A placement or other type of issue (complete Parts 7 and
8)
1.6a *The proposed standard +pro
rata issue is:
Answer this question if your response
to Q1.6 is “A standard pro rata issue
(non-renounceable or renounceable).”
Select one item from the list
☐ Non-renounceable
☐ Renounceable
1.6b
*The proposed accelerated
offer is:
Answer this question if your response
to Q1.6 is “An accelerated offer”
Select one item from the list
☐ Accelerated non-renounceable entitlement offer
(commonly known as a JUMBO or ANREO)
☐ Accelerated renounceable entitlement offer
(commonly known as an AREO)
☐ Simultaneous accelerated renounceable entitlement
offer (commonly known as a SAREO)
☐ Accelerated renounceable entitlement offer with dual
book-build structure (commonly known as a
RAPIDS)
☐ Accelerated renounceable entitlement offer with retail
rights trading (commonly known as a PAITREO)
+ See chapter 19 for defined terms
31 January 2020 Page 3
Part 2 – Details of proposed +bonus issue
If your response to Q1.6 is “A bonus issue”, please complete Parts 2A – 2D and the details of the securities proposed to be
issued in Part 8. Refer to section 1 of Appendix 7A of the Listing Rules for the timetable for bonus issues.
Part 2A – Proposed +bonus issue – conditions
Question
No.
Question Answer
2A.1 *Are any of the following approvals required
for the +bonus issue to be unconditional?
•
+
Security holder approval
• Court approval
• Lodgement of court order with
+
ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to
the entity.
If any of the above approvals apply to the bonus issue,
they must be obtained before business day 0 of the
timetable. The relevant approvals must be received
before ASX can establish an ex market in the
securities.
2A.1a Conditions
Answer these questions if your response to Q2A.1 is “Yes”.
Select the applicable approval(s) from the list. More than one approval can be selected. The “date for
determination” is the date that you expect to know if the approval is given (for example, the date of the security
holder meeting in the case of security holder approval or the date of the court hearing in the case of court
approval).
*Approval/ condition
Type
*Date for
determination
*Is the date
estimated or
actual?
*Approval received/
condition met?
Please respond “Yes” or
“No”. Only answer this
question when you know
the outcome of the
approval. Please advise
before business day 0 of
the Appendix 7A bonus
issue timetable.
Comments
+Security holder
approval
Court approval
Lodgement of court
order with +ASIC
ACCC approval
FIRB approval
Other (please specify
in comment section)
+ See chapter 19 for defined terms
31 January 2020 Page 4
Part 2B – Proposed +bonus issue - issue details
Question
No.
Question Answer
2B.1 *Class or classes of +securities that will
participate in the proposed +bonus issue
(please enter both the ASX security code &
description)
If more than one class of security will participate in the
proposed bonus issue, make sure you clearly identify
any different treatment between the classes.
2B.2 *Class of +securities that will be issued in
the proposed +bonus issue (please enter
both the ASX security code & description)
2B.3 *Issue ratio
Enter the quantity of additional securities to be issued
for a given quantity of securities held (for example, 1
for 2 means 1 new security issued for every 2 existing
securities held).
Please only enter whole numbers (for example, a
bonus issue of 1 new security for every 2.5 existing
securities held should be expressed as “2 for 5”).
2B.4 *What will be done with fractional
entitlements?
Select one item from the list.
☐ Fractions rounded up to the next whole
number
☐ Fractions rounded down to the nearest
whole number or fractions disregarded
☐ Fractions sold and proceeds distributed
☐ Fractions of 0.5 or more rounded up
☐ Fractions over 0.5 rounded up
☐ Not applicable
2B.5 *Maximum number of +securities proposed
to be issued (subject to rounding)
Part 2C – Proposed +bonus issue – timetable
Question
No.
Question Answer
2C.1 *+Record date
Record date to identify security holders entitled to
participate in the bonus issue. Per Appendix 7A section
1 the record date must be at least 4 business days
from the announcement date (day 0).
2C.3 *Ex date
Per Appendix 7A section 1 the ex date is one business
day before the record date. This is also the date that
the bonus securities will commence quotation on a
deferred settlement basis.
2C.4 *Record date
Same as Q2C.1 above
+ See chapter 19 for defined terms
31 January 2020 Page 5
2C.5 *+Issue date
Per Appendix 7A section 1 the issue date should be at
least one business day and no more than 5 business
days after the record date (the last day for the entity to
issue the bonus securities and lodge an Appendix 2A
with ASX to apply for quotation of the bonus
securities). Deferred settlement trading will end at
market close on this day.
2C.6 *Date trading starts on a normal T+2 basis
Per Appendix 7A section 1 this is one business day
after the issue date.
2C.7 *First settlement date of trades conducted
on a +deferred settlement basis and on a
normal T+2 basis
Per Appendix 7A section 1 this is two business days
after trading starts on a normal T+2 basis (3 business
days after the issue date).
Part 2D – Proposed +bonus issue – further information
Question
No.
Question Answer
2D.1 *Will holdings on different registers or sub
registers be aggregated for the purposes of
determining entitlements to the +bonus
issue?
2D.1a
Please explain how holdings on different
registers or subregisters will be aggregated
for the purposes of determining entitlements
Answer this question if your response to Q2D.1 is
“Yes”.
2D.2
*Countries in which the entity has +security
holders who will not be eligible to participate
in the proposed +bonus issue
Note: The entity must send each holder to whom it will
not offer the securities details of the issue and advice
that the entity will not offer securities to them (listing
rule 7.7.1(b)).
2D.3 *Will the entity be changing its
dividend/distribution policy as a result of the
proposed +bonus issue
2D.3a Please explain how the entity will change its
dividend/distribution policy if the proposed
+bonus issue proceeds
Answer this question if your response to Q2D.3 is
“Yes”.
2D.4 *Details of any material fees or costs to be
incurred by the entity in connection with the
proposed +bonus issue
2D.5 Any other information the entity wishes to
provide about the proposed +bonus issue
+ See chapter 19 for defined terms
31 January 2020 Page 6
Part 3 – Details of proposed entitlement offer
If your response to Q1.6 is “A standard pro rata issue (non-renounceable or renounceable)” or “An accelerated offer”, please
complete parts 3A, 3F and 3G and the details of the securities proposed to be issued in Part 8. Please also complete Parts 3B
and 3C if your response to Q1.6 is “A standard pro rata issue (non-renounceable or renounceable)” and Parts 3D and 3E if your
response to Q1.6 is “An accelerated offer”. Refer to sections 2,3,4,5 and 6 of Appendix 7A of the Listing Rules for the respective
timetables for entitlement offers, including non-renounceable, renounceable and accelerated offers.
Part 3A – Proposed entitlement offer – conditions
Question
No.
Question Answer
3A.1 *Are any of the following approvals required
for the entitlement offer to be unconditional?
•
+
Security holder approval
• Court approval
• Lodgement of court order with
+
ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to
the entity.
If any of the above approvals apply to the entitlement
offer, they must be obtained before business day 0 of
the timetable. The relevant approvals must be received
before ASX can establish an ex market in the
securities.
3A.1a Conditions
Answer these questions if your response to Q3A.1 is “Yes”.
Select the applicable approval(s) from the list. More than one approval can be selected. The “date for
determination” is the date that you expect to know if the approval is given (for example, the date of the security
holder meeting in the case of
+
security holder approval or the date of the court hearing in the case of court
approval).
*Approval/ condition
Type
*Date for
determination
*Is the date
estimated or
actual?
**Approval received/
condition met?
Please respond “Yes” or
“No”. Only answer this
question when you know
the outcome of the
approval. Please advise
before
+
business day 0
of the relevant Appendix
7A entitlement offer
timetable.
Comments
+Security holder
approval
Court approval
Lodgement of court
order with +ASIC
ACCC approval
FIRB approval
Other (please specify
in comment section)
+ See chapter 19 for defined terms
31 January 2020 Page 7
Part 3B – Proposed standard pro rata issue entitlement offer - offer details
If your response to Q1.6 is “A standard pro rata issue (non-renounceable or renounceable)”, please complete the relevant
questions in this part.
Question
No.
Question Answer
3B.1 *Class or classes of +securities that will
participate in the proposed entitlement offer
(please enter both the ASX security code &
description)
If more than one class of security will participate in the
proposed entitlement offer, make sure you clearly
identify any different treatment between the classes.
3B.2 *Class of +securities that will be issued in
the proposed entitlement offer (please enter
both the ASX security code & description)
3B.3 *Offer ratio
Enter the quantity of additional securities to be offered
for a given quantity of securities held (for example, 1
for 2 means 1 new security will be offered for every 2
existing securities held).
Please only enter whole numbers (for example, an
entitlement offer of 1 new security for every 2.5 existing
securities held should be expressed as “2 for 5”).
3B.4 *What will be done with fractional
entitlements?
Select one item from the list.
☐Fractions rounded up to the next whole
number
☐Fractions rounded down to the nearest
whole number or fractions disregarded
☐Fractions sold and proceeds distributed
☐Fractions of 0.5 or more rounded up
☐Fractions over 0.5 rounded up
☐Not applicable
3B.5
*Maximum number of +securities proposed
to be issued (subject to rounding)
3B.6 *Will individual +security holders be
permitted to apply for more than their
entitlement (i.e. to over-subscribe)?
3B.6a *Describe the limits on over-subscription
Answer this question if your response to Q3B.6 is
“Yes”.
3B.7 *Will a scale back be applied if the offer is
over-subscribed?
3B.7a *Describe the scale back arrangements
Answer this question if your response to Q3B.7 is
“Yes”.
3B.8 *In what currency will the offer be made?
For example, if the consideration for the issue is
payable in Australian Dollars, state AUD.
3B.9 *Has the offer price been determined?
3B.9a *What is the offer price per +security?
Answer this question if your response to Q3B.9 is “Yes”
using the currency specified in your answer to Q3B.8.
+ See chapter 19 for defined terms
31 January 2020 Page 8
3B.9b *How and when will the offer price be
determined?
Answer this question if your response to Q3B.9 is “No”.
Part 3C – Proposed standard pro rata issue – timetable
If your response to Q1.6 is “A standard pro rata issue (non-renounceable or renounceable)”, please complete the relevant
questions in this part.
Question
No.
Question Answer
3C.1 *+Record date
Record date to identify security holders entitled to
participate in the issue. Per Appendix 7A sections 2
and 3 the record date must be at least 3 business days
from the announcement date (day 0)
3C.2 *Ex date
Per Appendix 7A sections 2 and 3 the Ex Date is one
business day before the record date. For renounceable
issues, this is also the date that rights will commence
quotation on a deferred settlement basis.
3C.3 *Date rights trading commences
For renounceable issues only - this is the date that
rights will commence quotation initially on a deferred
settlement basis
3C.4 *Record date
Same as Q3C.1 above
3C.5 *Date on which offer documents will be sent
to +security holders entitled to participate in
the +pro rata issue
The offer documents can be sent to security holders as
early as business day 4 but must be sent no later than
business day 6. Business day 6 is the last day for the
offer to open.
For renounceable issues, deferred settlement trading in
rights ends at the close of trading on this day. Trading
in rights on a normal (T+2) settlement basis will start
from market open on the next business day (i.e.
business day 7) provided that the entity tells ASX by
12pm Sydney time that the offer documents have been
sent or will have been sent by the end of the day.
3C.6 *Offer closing date
Offers close at 5pm on this day. The date must be at
least 7 business days after the entity announces that
the offer documents have been sent to holders.
3C.7 *Last day to extend the offer closing date
At least 3 business days’ notice must be given to
extend the offer closing date.
3C.8 *Date rights trading ends
For renounceable issues only - rights trading ends at
the close of trading 5 business days before the
applications closing date.
3C.9 *Trading in new +securities commences on
a deferred settlement basis
Non-renounceable issues - the business day after the
offer closing date
Renounceable issues – the business day after the date
rights trading ends
+ See chapter 19 for defined terms
31 January 2020 Page 9
3C.10 *Last day for entity to announce the results
of the offer to ASX, including the number
and percentage of +securities taken up by
existing +security holders and any shortfall
taken up by underwriters or other investors
No more than 3 business days after the offer closing
date
3C.11 *Issue date
Per Appendix 7A section 2 and section 3, the issue
date should be no more than 5 business days after the
offer closes date (the last day for the entity to issue the
securities taken up in the pro rata issue and lodge an
Appendix 2A with ASX to apply for quotation of the
securities). Deferred settlement trading will end at
market close on this day.
3C.12 *Date trading starts on a normal T+2 basis
Per Appendix 7A section 2 and 3 this is one business
day after the issue date.
3C.13
*First settlement date of trades conducted
on a +deferred settlement basis and on a
normal T+2 basis
Per Appendix 7A section 2 and 3 1 this is two business
days after trading starts on a normal T+2 basis (3
business days after the issue date).
Part 3D – Proposed accelerated offer – offer details
Question
No.
Question Answer
3D.1 *Class or classes of +securities that will
participate in the proposed entitlement offer
(please enter both the ASX security code &
description)
If more than one class of security will participate in the
proposed entitlement offer, make sure you clearly
identify any different treatment between the classes.
3D.2 *Class of +securities that will issued in the
proposed entitlement offer (please enter
both the ASX security code & description)
3D.3 *Has the offer ratio been determined?
3D.3a *Offer ratio
Answer this question if your response to Q3D.3 is
“Yes” or “No”. If your response to Q3D.3 is “No” please
provide an indicative ratio and state as indicative.
Enter the quantity of additional securities to be offered
for a given quantity of securities held (for example, 1
for 2 means 1 new security will be offered for every 2
existing securities held).
Please only enter whole numbers (for example, an
entitlement offer of 1 new security for every 2.5 existing
securities held should be expressed as “2 for 5”).
3D.3b *How and when will the offer ratio be
determined?
Answer this question if your response to Q3D.3 is “No”.
Note that once the offer ratio is determined, this must
be provided via an update announcement.
+ See chapter 19 for defined terms
31 January 2020 Page 10
3D.4 *What will be done with fractional
entitlements?
Select one item from the list.
☐ Fractions rounded up to the next whole
number
☐ Fractions rounded down to the nearest
whole number or fractions disregarded
☐ Fractions sold and proceeds distributed
☐ Fractions of 0.5 or more rounded up
☐ Fractions over 0.5 rounded up
☐ Not applicable
3D.5 *Maximum number of +securities proposed
to be issued (subject to rounding)
3D.6 *Will individual +security holders be
permitted to apply for more than their
entitlement (i.e. to over-subscribe)?
3D.6a *Describe the limits on over-subscription
Answer this question if your response to Q3D.6 is
“Yes”.
3D.7 *Will a scale back be applied if the offer is
over-subscribed?
3D.7a *Describe the scale back arrangements
Answer this question if your response to Q3D.7 is
“Yes”.
3D.8 *In what currency will the offer be made?
For example, if the consideration for the issue is
payable in Australian Dollars, state AUD.
3D.9 *Has the offer price for the institutional offer
been determined?
3D.9a *What is the offer price per +security for the
institutional offer?
Answer this question if your response to Q3D.9 is
“Yes” using the currency specified in your answer to
Q3D.8.
3D.9b *How and when will the offer price for the
institutional offer be determined?
Answer this question if your response to Q3D.9 is “No”.
3D.9c *Will the offer price for the institutional offer
be determined by way of a bookbuild?
Answer this question if your response to Q3D.9 is “No”.
If your response to this question is “yes”, please note
the information that ASX expects to be announced
about the results of the bookbuild set out in
section 4.12 of Guidance Note 30 Notifying an Issue of
Securities and Applying for their Quotation.
3D.9d *Provide details of the parameters that will
apply to the bookbuild for the institutional
offer (e.g. the indicative price range for the
bookbuild)
Answer this question if your response to Q3D.9 is “No”
and your response to Q5B.9c is “Yes”.
3D.10 *Has the offer price for the retail offer been
determined?
+ See chapter 19 for defined terms
31 January 2020 Page 11
3D.10a *What is the offer price per +security for the
retail offer?
Answer this question if your response to Q3D.10 is
“Yes” using the currency specified in your answer to
Q3B.8.
3D.10b *How and when will the offer price for the
retail offer be determined?
Answer this question if your response to Q3D.10 is
“No”.
Part 3E – Proposed accelerated offer – timetable
If your response to Q1.6 is “An accelerated offer”, please complete the relevant questions in this Part.
Question
No.
Question Answer
3E.1a *First day of trading halt
The entity is required to announce the accelerated offer
and give a completed Appendix 3B to ASX. If the
accelerated offer is conditional on security holder
approval or any other requirement, that condition must
have been satisfied and the entity must have
announced that fact to ASX. An entity should also
consider the rights of convertible security holders to
participate in the issue and what, if any, notice needs
to be given to them in relation to the issue
3E.1b *Announcement date of accelerated offer
3E.2 *Trading resumes on an ex-entitlement
basis (ex date)
For JUMBO, ANREO, AREO, SAREO, RAPIDs offers
3E.3 *Trading resumes on ex-rights basis
For PAITREO offers only
3E.4 *Rights trading commences
For PAITREO offers only
3E.5
*Date offer will be made to eligible
institutional +security holders
3E.6 *Application closing date for institutional
+security holders
3E.7 *Institutional offer shortfall book build date
For AREO, SAREO, RAPIDs, PAITREO offers
3E.8 *Announcement of results of institutional
offer
The announcement should be made before the
resumption of trading following the trading halt.
3E.9 *+Record date
Record date to identify security holders entitled to
participate in the offer. Per Appendix 7A sections 4, 5
and 6 the record date must be at least 2 business days
from the announcement date (day 0).
+ See chapter 19 for defined terms
31 January 2020 Page 12
3E.10 *Settlement date of new +securities issued
under institutional entitlement offer
If DvP settlement applies, provided the Appendix 2A is
given to ASX before noon (Sydney time) this day,
normal trading in the securities will apply on the next
business day, and if DvP settlement does not apply on
the business day after that.
3E.11 *+Issue date for institutional +security
holders
3E.12 *Normal trading of new +securities issued
under institutional entitlement offer
3E.13 *Date on which offer documents will be sent
to retail +security holders entitled to
participate in the +pro rata issue
The offer documents can be sent to security holders as
early as business day 4 but must be sent no later than
business day 6. Business day 6 is the last day for the
offer to open. For renounceable offers, deferred
settlement trading in rights ends at the close of trading
on this day. Trading in rights on a normal (T+2)
settlement basis will start from market open on the next
business day (i.e. business day 7) provided that the
entity tells ASX by 12pm Sydney time that the offer
documents have been sent or will have been sent by
the end of the day.
3E.14
*Offer closing date for retail +security
holders
Offers close at 5pm on this day. The date must be at
least 7 business days after the entity announces that
the offer documents have been sent to holders.
3E.15 *Last day to extend the retail offer closing
date
At least 3 business days’ notice must be given to
extend the offer closing date.
3E.16 *Rights trading end date
For PAITREO offers only
3E.17 *Trading in new +securities commences on
a deferred settlement basis
For PAITREO offers only
The business day after rights trading end date
3E.18 *Entity announces results of the retail offer
to ASX, including the number and
percentage of +securities taken up by
existing retail +security holders
3E.19 *Bookbuild for any shortfall (if applicable)
For all offers except JUMBO, ANREO
3E.20 *Entity announces results of bookbuild
(including any information about the
bookbuild expected to be disclosed under
section 4.12 of Guidance Note 30)
For all offers except JUMBO, ANREO
3E.21 *+Issue date for retail +security holders
Per Appendix 7A section 2 and section 3, the issue
date should be no more than 5 business days after the
offer closes date. This is the last day for the entity to
issue the securities taken up in the pro rata issue and
lodge an Appendix 2A with ASX to apply for quotation
of the securities. Deferred settlement trading will end at
market close on this day.
+ See chapter 19 for defined terms
31 January 2020 Page 13
3E.22 *Date trading starts on a normal T+2 basis
For PAITREO offers only
This is one business day after the issue date.
3E.23 *First settlement date of trades conducted
on a +deferred settlement basis and on a
normal T+2 basis
For PAITREO offers only
This is two business days after trading starts on a
normal T+2 basis (3 business days after the issue
date).
Part 3F – Proposed entitlement offer – fees and expenses
Question
No.
Question Answer
3F.1 *Will there be a lead manager or broker to
the proposed offer?
3F.1a *Who is the lead manager/broker?
Answer this question if your response to Q3F.1 is
“Yes”.
3F.1b *What fee, commission or other
consideration is payable to them for acting
as lead manager/broker?
Answer this question if your response to Q3F.1 is
“Yes”.
3F.2 *Is the proposed offer to be underwritten?
3F.2a *Who are the underwriter(s)?
Answer this question if your response to Q3F.2 is
“Yes”.
Note for issuers that are an ASX Listing (i.e. not an
ASX Debt Listing or ASX Foreign Exempt Listing): If
you are seeking to rely on listing rule 7.2 exception 2 to
issue the securities without security holder approval
under listing rule 7.1 and without using your placement
capacity under listing rules 7.1 or 7.1A, you must
include the details asked for in this and the next 3
questions.
3F.2b *What is the extent of the underwriting (i.e.
the amount or proportion of the offer that is
underwritten)?
Answer this question if your response to Q3F.2 is
“Yes”.
3F.2c *What fees, commissions or other
consideration are payable to them for acting
as underwriter(s)?
Answer this question if your response to Q3F.2 is
“Yes”.
This includes any applicable discount the underwriter
receives to the issue price payable by participants in
the issue.
+ See chapter 19 for defined terms
31 January 2020 Page 14
3F.2d *Provide a summary of the significant
events that could lead to the underwriting
being terminated
Answer this question if your response to Q3F.2 is
“Yes”.
You may cross-refer to a disclosure document, PDS,
information memorandum, investor presentation or
other announcement with this information provided it
has been released on the ASX Market Announcements
Platform.
3F.2e *Is a party referred to in listing rule 10.11
underwriting or sub-underwriting the
proposed offer?
Answer this question if the issuer is an ASX Listing (i.e.
not an ASX Debt Listing or ASX Foreign Exempt
Listing) and your response to Q3F.2 is “Yes”.
3F.2e(i) *What is the name of that party?
Answer this question if the issuer is an ASX Listing and
your response to Q3F.2e is “Yes”.
Note: If you are seeking to rely on listing rule 10.12
exception 2 to issue the securities to the underwriter or
sub-underwriter without security holder approval under
listing rule 10.11, you must include the details asked
for in this and the next 2 questions. If there is more
than one party referred to in listing rule 10.11 acting as
underwriter or sub-underwriter include all of their
details in this and the next 2 questions.
3F.2e(ii) *What is the extent of their underwriting or
sub-underwriting (i.e. the amount or
proportion of the issue they have
underwritten or sub-underwritten)?
Answer this question if the issuer is an ASX Listing and
your response to Q3F.2e is “Yes”.
3F.2e(iii) *What fee, commission or other
consideration is payable to them for acting
as underwriter or sub-underwriter?
Answer this question if the issuer is an ASX Listing and
your response to Q3F.2e is “Yes”.
Note: This includes any applicable discount the
underwriter or sub-underwriter receives to the issue
price payable by participants in the issue.
3F.3 *Will brokers who lodge acceptances or
renunciations on behalf of eligible +security
holders be paid a handling fee or
commission?
3F.3a *Will the handling fee or commission be
dollar based or percentage based?
Answer this question if your response to Q3F.3 is
“Yes”.
3F.3b *Amount of handling fee or commission
payable to brokers who lodge acceptances
or renunciations on behalf of eligible
+security holders
Answer this question if your response to Q3F.3 is “Yes”
and your response to Q3F.3a is “dollar based”.
+ See chapter 19 for defined terms
31 January 2020 Page 15
3F.3c *Percentage handling fee or commission
payable to brokers who lodge acceptances
or renunciations on behalf of eligible
+security holders
Answer this question if your response to Q3F.3 is “Yes”
and your response to Q3F.3a is “percentage based”.
3F.3d Please provide any other relevant
information about the handling fee or
commission method
Answer this question if your response to Q3F.3 is
“Yes”.
3F.4 Details of any other material fees or costs to
be incurred by the entity in connection with
the proposed offer
Part 3G – Proposed entitlement offer – further information
Question
No.
Question Answer
3G.1 *The purpose(s) for which the entity intends
to use the cash raised by the proposed
issue
You may select one or more of the items in the list.
☐ For additional working capital
☐ To fund the retirement of debt
☐ To pay for the acquisition of an asset
[provide details below]
☐ To pay for services rendered [provide
details below]
☐ Other [provide details below]
Additional details:
3G.2
*Will holdings on different registers or
subregisters be aggregated for the
purposes of determining entitlements to the
issue?
3G.2a *Please explain how holdings on different
registers or subregisters will be aggregated
for the purposes of determining
entitlements.
Answer this question if your response to Q3G.2 is
“Yes”.
3G.3 *Will the entity be changing its
dividend/distribution policy if the proposed
issue is successful?
3G.3a *Please explain how the entity will change
its dividend/distribution policy if the
proposed issue is successful
Answer this question if your response to Q3G.3 is
“Yes”.
+ See chapter 19 for defined terms
31 January 2020 Page 16
3G.4 *Countries in which the entity has +security
holders who will not be eligible to participate
in the proposed issue
For non-renounceable issues (including
accelerated): The entity must send each holder to
whom it will not offer the securities details of the issue
and advice that the entity will not offer securities to
them (listing rule 7.7.1(b)).
For renounceable issues (including accelerated):
The entity must send each holder to whom it will not
offer the securities details of the issue and advice that
the entity will not offer securities to them. It must also
appoint a nominee to arrange for the sale of the
entitlements that would have been given to those
holders and to account to them for the net proceeds of
the sale and advise each holder not given the
entitlements that a nominee in Australia will arrange for
sale of the entitlements and, if they are sold, for the net
proceeds to be sent to the holder (listing rule 7.7.1(b)
and (c)).
3G.5 *Will the offer be made to eligible
beneficiaries on whose behalf eligible
nominees or custodians hold existing
+securities
3G.5a *Please provide further details of the offer to
eligible beneficiaries
Answer this question if your response to Q3G.5 is
“Yes”.
If, for example, the entity intends to issue a notice to
eligible nominees and custodians please indicate here
where it may be found and/or when the entity expects
to announce this information. You may enter a URL.
3G.6
*URL on the entity's website where
investors can download information about
the proposed issue
3G.7 Any other information the entity wishes to
provide about the proposed issue
3G.8 *Will the offer of rights under the rights issue
be made under a disclosure document or
product disclosure statement under Chapter
6D or Part 7.9 of the Corporations Act (as
applicable)?
+ See chapter 19 for defined terms
31 January 2020 Page 17
Part 4 – Details of proposed offer under +securities purchase plan
If your response to Q1.6 is “An offer of securities under a securities purchase plan”, please complete Parts 4A – 4F and the
details of the securities proposed to be issued in Part 8. Refer to section 12 of Appendix 7A of the Listing Rules for the timetable
for securities purchase plans.
Part 4A – Proposed offer under +securities purchase plan – conditions
Question
No.
Question Answer
4A.1
*Are any of the following approvals required
for the offer of +securities under the
+securities purchase plan issue to be
unconditional?
•
+
Security holder approval
• Court approval
• Lodgement of court order with
+
ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to
the entity.
No
4A.1a
Conditions
Answer these questions if your response to 4A.1 is “Yes”.
Select the applicable approval(s) from the list. More than one approval can be selected. The “date for
determination” is the date that you expect to know if the approval is given (for example, the date of the security
holder meeting in the case of
+
security holder approval or the date of the court hearing in the case of court
approval).
*Approval/ condition
Type
*Date for
determination
*Is the date
estimated or
actual?
**Approval received/
condition met?
Please respond “Yes” or
“No”. Only answer this
question when you know
the outcome of the
approval.
Comments
+Security holder
approval
Court approval
Lodgement of court
order with +ASIC
ACCC approval
FIRB approval
Other (please specify
in comment section)
Part 4B – Proposed offer under +securities purchase plan – offer details
Question
No.
Question Answer
4B.1 *Class or classes of +securities that will
participate in the proposed offer (please
enter both the ASX security code &
description)
If more than one class of security will participate in the
securities purchase plan, make sure you clearly identify
any different treatment between the classes.
CEN Fully Paid Ordinary Shares
4B.2 *Class of +securities to be offered to them
under the +securities purchase plan (please
enter both the ASX security code &
description)
CEN Fully Paid Ordinary Shares
+ See chapter 19 for defined terms
31 January 2020 Page 18
4B.3 *Maximum total number of those +securities
that could be issued if all offers under the
+securities purchase plan are accepted
10,714,286 CEN Fully Paid Ordinary Shares
under the Retail Offer (as described below)
assuming:
(i) the Shares are issued at NZ$7.00 per
Offer Share (being the price paid by
investors in the placement) (see
Question 4B.11(b) below); and
(ii) an aggregate total Retail Offer of up to
NZ$75 million.
If the offer price under the Retail Offer is less
than the offer price under the placement
and/or CEN accepts over-subscriptions such
that the Retail Offer exceeds NZ$75 million,
additional CEN Fully Paid Ordinary Shares
will be issued (with such number of Shares
expected to be announced on 11 March
2021)
The Retail Offer comprises a share
purchase plan component of NZ$15,000 per
eligible shareholder, with provision to apply
for up to a further NZ$35,000 under CEN’s
placement capacity), with a total offer size of
up to NZ$75 million (with the ability to accept
oversubscriptions at CEN's discretion).
4B.4 *Will the offer be conditional on applications
for a minimum number of +securities being
received or a minimum amount being raised
(i.e. a minimum subscription condition)?
No
4B.4a *Describe the minimum subscription
condition
Answer this question if your response to Q4B.4 is
“Yes”.
-
4B.5
*Will the offer be conditional on applications
for a maximum number of +securities being
received or a maximum amount being
raised (i.e. a maximum subscription
condition)?
No
4B.5a *Describe the maximum subscription
condition
Answer this question if your response to Q4B.5 is
“Yes”.
-
4B.6 *Will individual +security holders be
required to accept the offer for a minimum
number or value of +securities (i.e. a
minimum acceptance condition)?
No
4B.6a *Describe the minimum acceptance
condition
Answer this question if your response to Q4B.6 is
“Yes”.
-
4B.7
*Will individual +security holders be limited
to accepting the offer for a maximum
number or value of +securities (i.e. a
maximum acceptance condition)?
Yes
+ See chapter 19 for defined terms
31 January 2020 Page 19
4B.7a *Describe the maximum acceptance
condition
Answer this question if your response to Q4B.7 is
“Yes”.
There is a cap of NZ$50,000 that applies in
respect of eligible shareholders in New
Zealand in the Retail Offer (comprising a
share purchase plan component of
NZ$15,000 per eligible shareholder, with
provision to apply for up to a further
NZ$35,000 per eligible shareholder under
CEN’s placement capacity).
CEN has obtained specific ASIC relief to
allow eligible Australian shareholders to
participate up to NZ$50,000 in the Retail
Offer. However, CEN has set the maximum
Australian dollar application amount at
A$46,500 to allow for NZ$/AU$ exchange
rate movements up to the closing date of the
Offer.
4B.8 *Describe all the applicable parcels
available for this offer in number of
securities or dollar value
For example, the offer may allow eligible holders to
subscribe for one of the following parcels: $2,500,
$7,500, $10,000, $15,000, $20,000, $30,000.
N/A
4B.9 *Will a scale back be applied if the offer is
over-subscribed?
Yes
4B.9a *Describe the scale back arrangements
Answer this question if your response to Q4B.9 is
“Yes”.
The target amount to be raised in the Retail
Offer is up to NZ$75 million (with the ability
to accept oversubscriptions at CEN's
discretion)). CEN will carry out any scaling
back of applications having regard to the
number of Existing Shares held by the
applicant at the Record Date.
4B.10 *In what currency will the offer be made?
For example, if the consideration for the issue is
payable in Australian Dollars, state AUD.
NZD in relation to New Zealand
shareholders.
AUD in relation to Australian shareholders
4B.11 *Has the offer price been determined? No
4B.11a *What is the offer price per +security?
Answer this question if your response to Q4B.11 is
“Yes” using the currency specified in your answer to
Q4B.9.
-
+ See chapter 19 for defined terms
31 January 2020 Page 20
4B.11b *How and when will the offer price be
determined?
Answer this question if your response to Q4B.11 is
“No”.
The issue price is the lower of:
(a) NZ$7.00 per Offer Share (being the
price paid by investors in the
placement); and
(b) a 2.5% discount to the volume
weighted average market price of
the Shares traded on the NZX over
the five business day period prior to
and including the Closing Date,
rounded down to the nearest cent.
The issue price in NZ$ and A$ will be fixed
as at 5.00pm NZDT / 3.00pm AEDT on 5
March 2021 (being the Closing Date) and is
expected to be announced through NZX and
ASX on 11 March 2021.
For eligible Australian shareholders, the
issue price will be determined by reference
to the NZ$:A$ exchange rate published by
the New Zealand Reserve Bank on its
website at 5.00pm NZDT / 3.00pm AEDT on
the Closing Date.
Part 4C – Proposed offer under +securities purchase plan – timetable
Question
No.
Question Answer
4C.1 *Date of announcement of +security
purchase plan
The announcement of the security purchase plan must
be made prior to the commencement on trading on the
announcement date.
15 February 2021
4C.2 *+Record date
This is the date to identify security holders who may
participate in the security purchase plan. Per Appendix
7A section 12 of the Listing Rules, this day is one
business day before the entity announces the security
purchase plan.
Note: the fact that an entity's securities may be in a
trading halt or otherwise suspended from trading on
this day does not affect this date being the date for
identifying which security holders may participate in the
security purchase plan.
7.00pm NZDT / 5.00pm AEDT on 12
February 2021
4C.3 *Date on which offer documents will be
made available to investors
18 February 2021
4C.4 *Offer open date 18 February 2021
4C.5 *Offer closing date 5 March 2021
4C.6 *Announcement of results
Per Appendix 7A section 12 of the Listing Rules, the
entity should announce the results of the security
purchase plan no more than 3 business days after the
offer closing date
11 March 2021
4C.7 *+Issue date
Per Appendix 7A section 12 of the Listing Rules, the
last day for the entity to issue the securities purchased
under the plan is no more than 7 business days after
the closing date. The entity should lodge an Appendix
2A with ASX applying for quotation of the securities
before 12pm Sydney time on this day
12 March 2021
+ See chapter 19 for defined terms
31 January 2020 Page 21
Part 4D – Proposed offer under +securities purchase plan – listing rule requirements
Question
No.
Question Answer
4D.1
*Does the offer under the +securities
purchase plan meet the requirements of
listing rule 7.2 exception 5 that:
the number of +securities to be issued is
not greater than 30% of the number of
fully paid +ordinary securities already on
issue; and
the issue price of the +securities is at
least 80% of the +volume weighted
average market price for +securities in
that +class, calculated over the last 5
days on which sales in the +securities
were recorded, either before the day on
which the issue was announced or before
the day on which the issue was made?
Answer this question if the issuer is an ASX Listing (i.e.
not an ASX Debt Listing or ASX Foreign Exempt
Listing).
N/A
4D.1a *Are any of the +securities proposed to be
issued without +security holder approval
using the entity's 15% placement capacity
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing and
your response to Q4D.1 is “No”.
N/A
4D.1a(i) *How many +securities are proposed to be
issued without +security holder approval
using the entity’s 15% placement capacity
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing,
your response to Q4D.1 is “No” and your response to
Q4D.1a is “Yes”.
Please complete and separately send by email to your
ASX listings adviser a work sheet in the form of
Annexure B to Guidance Note 21 confirming the entity
has the available capacity under listing rule 7.1 to issue
that number of securities.
N/A
4D.1b *Are any of the +securities proposed to be
issued without +security holder approval
using the entity's additional 10% placement
capacity under listing rule 7.1A (if
applicable)?
Answer this question if the issuer is an ASX Listing and
your response to Q4D.1 is “No”.
N/A
4D.1b(i)
*How many +securities are proposed to be
issued without +security holder approval
using the entity's additional 10% placement
capacity under listing rule 7.1A?
Answer this question if the issuer is an ASX Listing,
your response to Q4D.1 is “No” and your response to
Q4D.1b is “Yes”.
Please complete and separately send by email to your
ASX listings adviser a work sheet in the form of
Annexure C to Guidance Note 21 confirming the entity
has the available capacity under listing rule 7.1A to
issue that number of securities.
N/A
+ See chapter 19 for defined terms
31 January 2020 Page 22
Part 4E – Proposed offer under +securities purchase plan – fees and expenses
Question
No.
Question Answer
4E.1
*Will there be a lead manager or broker to
the proposed offer?
Yes
4E.1a *Who is the lead manager/broker?
Answer this question if your response to Q4E.1 is
“Yes”.
Jarden Securities Limited and Macquarie
Securities (NZ) Limited
4E.1b *What fee, commission or other
consideration is payable to them for acting
as lead manager/broker?
Answer this question if your response to Q4E.1 is
“Yes”.
A lead management fee (in aggregate)
equal to 0.75% of the gross proceeds raised
under the Retail Offer (Retail Offer Fee).
4E.2 *Is the proposed offer to be underwritten? No
4E.2a *Who are the underwriter(s)?
Answer this question if your response to Q4E.2 is
“Yes”.
Note for issuers that are an ASX Listing (i.e. not an
ASX Debt Listing or ASX Foreign Exempt Listing):
listing rule 7.2 exception 5 does not extend to an issue
of securities to or at the direction of an underwriter of
an SPP. The issue will require security holder approval
under listing rule 7.1 if you do not have the available
placement capacity under listing rules 7.1 and/or 7.1A
to cover the issue. Likewise, listing rule 10.12
exception 4 does not extend to an issue of securities to
or at the direction of an underwriter of an SPP. If a
party referred to in listing rule 10.11 is underwriting the
proposed offer, this will require security holder approval
under listing rule 10.11.
-
4E.2b
*What is the extent of the underwriting (i.e.
the amount or proportion of the offer that is
underwritten)?
Answer this question if your response to Q4E.2 is
“Yes”.
-
4E.2c
*What fees, commissions or other
consideration are payable to them for acting
as underwriter(s)?
Answer this question if your response to Q4E.2 is
“Yes”.
This information includes any applicable discount the
underwriter receives to the issue price payable by
participants in the issue.
-
4E.2d
*Provide a summary of the significant
events that could lead to the underwriting
being terminated
Answer this question if your response to Q4E.2 is
“Yes”.
You may cross-refer to a disclosure document, PDS,
information memorandum, investor presentation or
other announcement with this information provided it
has been released on the ASX Market Announcements
Platform.
-
+ See chapter 19 for defined terms
31 January 2020 Page 23
4E.2e *Is a party referred to in listing rule 10.11
underwriting or sub-underwriting the
proposed offer?
Answer this question if the issuer is an ASX Listing (i.e.
not an ASX Debt Listing or ASX Foreign Exempt
Listing) and your response to Q4E.2 is “Yes”.
Note: If your response is “Yes”, this will require security
holder approval under listing rule 10.11. Listing rule
10.12 exception 4 does not extend to an issue of
securities to an underwriter or sub-underwriter of an
SPP.
-
4E.2e(i) *What is the name of that party?
Answer this question if the issuer is an ASX Listing and
your response to Q4E.2e is “Yes”.
Note: If there is more than one such party acting as
underwriter or sub-underwriter include all of their
details in this and the next 2 questions.
-
4E.2e(ii) *What is the extent of their underwriting or
sub-underwriting (i.e. the amount or
proportion of the issue they have
underwritten or sub-underwritten)?
Answer this question if the issuer is an ASX Listing and
your response to Q4E.2e is “Yes”.
-
4E.2e(iii) *What fee, commission or other
consideration is payable to them for acting
as underwriter or sub-underwriter?
Answer this question if the issuer is an ASX Listing and
your response to Q4E.2e is “Yes”.
Note: This includes any applicable discount the
underwriter or sub-underwriter receives to the issue
price payable by participants in the issue.
-
4E.3 *Will brokers who lodge acceptances or
renunciations on behalf of eligible +security
holders be paid a handling fee or
commission?
No
4E.3a *Will the handling fee or commission be
dollar based or percentage based?
Answer this question if your response to Q4E.3 is
“Yes”.
-
4E.3b
*Amount of handling fee or commission
payable to brokers who lodge acceptances
or renunciations on behalf of eligible
+security holders
Answer this question if your response to Q4E.3 is “Yes”
and your response to Q4E.3a is “dollar based”.
-
4E.3c *Percentage handling fee or commission
payable to brokers who lodge acceptances
or renunciations on behalf of eligible
+security holders
Answer this question if your response to Q4E.3 is “Yes”
and your response to Q4E.3a is “percentage based”.
-
4E.3d Please provide any other relevant
information about the handling fee or
commission method
Answer this question if your response to Q4E.3 is
“Yes”.
-
4E.4 Details of any other material fees or costs to
be incurred by the entity in connection with
the proposed offer
N/A
+ See chapter 19 for defined terms
31 January 2020 Page 24
Part 4F – Proposed offer under +securities purchase plan – further information
Question
No.
Question Answer
4F.1 *The purpose(s) for which the entity intends
to use the cash raised by the proposed
issue
You may select one or more of the items in the list.
☐ For additional working capital
☒ To fund the retirement of debt
☐ To pay for the acquisition of an asset
[provide details below]
☐ To pay for services rendered [provide
details below]
☒ Other [provide details below]
Additional details:
Please refer to the Investor Presentation
announced to ASX on 15 February 2021.
4F.2
*Will the entity be changing its
dividend/distribution policy if the proposed
issue is successful?
CEN is adopting a new distribution policy in
connection with the offer.
4F.2a *Please explain how the entity will change
its dividend/distribution policy if the
proposed issue is successful
Answer this question if your response to Q4F.2 is
“Yes”.
Please refer to the Investor Presentation
announced to ASX on 15 February 2021.
4F.3 *Countries in which the entity has +security
holders who will not be eligible to participate
in the proposed offer
All countries other than Australia and New
Zealand.
4F.4 *URL on the entity's website where
investors can download information about
the proposed offer
https://contactshareoffer.co.nz/
Information will be available to access from
18 February 2021.
4F.5
Any other information the entity wishes to
provide about the proposed offer
Standard share registry, external advisers
and NZX/ASX administrative fees.
+ See chapter 19 for defined terms
31 January 2020 Page 25
Part 5 – Details of proposed non-pro rata offer under a +disclosure
document or +PDS
If your response to Q1.6 is “A non-pro rata offer of securities under a disclosure document or PDS”, please complete Parts 5A –
5F and the details of the securities proposed to be issued in Part 8. Refer to Listing Rule 7.10 for the rules that apply to non-pro
rata issues to existing security holders.
Part 5A - Proposed non-pro rata offer under a +disclosure document or +PDS –
conditions
Question
No.
Question Answer
5A.1 *Are any of the below approvals required for
the non-pro rata offer of +securities under a
+disclosure document or + PDS?
•
+
Security holder approval
• Court approval
• Lodgement of court order with
+
ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to
the entity.
5A.1a Conditions
Answer these questions if your response to 5A.1 is “Yes”.
Select the applicable approval(s) from the list. More than one approval can be selected. The “date for
determination” is the date that you expect to know if the approval is given (for example, the date of the security
holder meeting in the case of
+
security holder approval or the date of the court hearing in the case of court
approval).
*Approval/ condition
Type
*Date for
determination
*Is the date
estimated or
actual?
**Approval received/
condition met?
Please respond “Yes” or
“No”. Only answer this
question when you know
the outcome of the
approval.
Comments
+Security holder
approval
Court approval
Lodgement of court
order with +ASIC
ACCC approval
FIRB approval
Other (please specify
in comment section)
+ See chapter 19 for defined terms
31 January 2020 Page 26
Part 5B – Proposed non-pro rata offer under a +disclosure document or +PDS –
offer details
Question
No.
Question Answer
5B.1 *Class of +securities to be offered under the
+disclosure document or +PDS (please
enter both the ASX security code &
description)
5B.2 *The number of +securities to be offered
under the +disclosure document or +PDS
5B.3 *Will the offer be conditional on applications
for a minimum number of +securities being
received or a minimum amount being raised
(i.e. a minimum subscription condition)?
5B.3a *Describe the minimum subscription
condition
Answer this question if your response to Q5B.3 is
“Yes”.
5B.4 *Will the entity be entitled to accept over-
subscriptions?
5B.4a *Provide details of the number or value of
over-subscriptions that the entity may
accept
Answer this question if your response to Q5B.4 is
“Yes”.
5B.5 *Will individual investors be required to
accept the offer for a minimum number or
value of +securities (i.e. a minimum
acceptance condition)?
5B.5a
*Describe the minimum acceptance
condition
Answer this question if your response to Q5B.5 is
“Yes”.
5B.6
*Will individual investors be limited to
accepting the offer for a maximum number
or value of +securities (i.e. a maximum
acceptance condition)?
5B.6a *Describe the maximum acceptance
condition
Answer this question if your response to Q5B.6 is
“Yes”.
5B.7 *Will a scale back be applied if the offer is
over-subscribed?
5B.7a *Describe the scale back arrangements
Answer this question if your response to Q5B.7 is
“Yes”.
5B.8 *In what currency will the offer be made?
For example, if the consideration for the issue is
payable in Australian Dollars, state AUD.
5B.9 *Has the offer price been determined?
+ See chapter 19 for defined terms
31 January 2020 Page 27
5B.9a *What is the offer price per +security?
Answer this question if your response to Q5B.9 is “Yes”
using the currency specified in your answer to Q5B.8.
5B.9b *How and when will the offer price be
determined?
Answer this question if your response to Q5B.9 is “No”.
5B.9c *Will the offer price be determined by way of
a bookbuild?
Answer this question if your response to Q5B.9 is “No”.
If your response to this question is “yes”, please note
the information that ASX expects to be announced
about the results of the bookbuild set out in
section 4.12 of Guidance Note 30 Notifying an Issue of
Securities and Applying for their Quotation.
5B.9d
*Provide details of the parameters that will
apply to the bookbuild (e.g. the indicative
price range for the bookbuild)
Answer this question if your response to Q5B.9 is “No”
and your response to Q5B.9c is “Yes”.
Part 5C – Proposed non-pro rata offer under a +disclosure document or +PDS –
timetable
Question
No.
Question Answer
5C.1 *Lodgement date of +disclosure document
or +PDS with ASIC
Note: If the securities are to be quoted on ASX, you
must lodge an Appendix 2A Application for Quotation
of Securities with ASX within 7 days of this date.
5C.2 *Date when +disclosure document or +PDS
and acceptance forms will be made
available to investors
5C.3 *Offer open date
5C.4 *Closing date for receipt of acceptances
5C.6 *Proposed +issue date
Part 5D – Proposed non-pro rata offer under a +disclosure document or +PDS –
listing rule requirements
Question
No.
Question Answer
5D.1 *Has the entity obtained, or is it obtaining,
+security holder approval for the issue
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing (i.e.
not an ASX Debt Listing or ASX Foreign Exempt
Listing).
5D.1a *Date of meeting or proposed meeting to
approve the issue under listing rule 7.1
Answer this question if the issuer is an ASX Listing and
your response to Q5D.1 is “Yes”.
+ See chapter 19 for defined terms
31 January 2020 Page 28
5D.1b *Are any of the +securities proposed to be
issued without +security holder approval
using the entity’s 15% placement capacity
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing and
your response to Q5D.1 is “No”.
5D.1b(i) *How many +securities are proposed to be
issued without +security holder approval
using the entity's 15% placement capacity
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing,
your response to Q5D.1 is “No” and your response to
Q5D.1b is “Yes”.
Please complete and separately send by email to your
ASX listings adviser a work sheet in the form of
Annexure B to Guidance Note 21 confirming the entity
has the available capacity under listing rule 7.1 to issue
that number of securities.
5D.1c
*Are any of the +securities proposed to be
issued without +security holder approval
using the entity's additional 10% placement
capacity under listing rule 7.1A (if
applicable)?
Answer this question if the issuer is an ASX Listing and
your response to Q5D.1 is “No”.
5D.1c(i) *How many +securities are proposed to be
issued without +security holder approval
using the entity’s additional 10% placement
capacity under listing rule 7.1A?
Answer this question if the issuer is an ASX Listing,
your response to Q5D.1 is “No” and your response to
Q5D.1c is “Yes”.
Please complete and separately send by email to your
ASX listings adviser a work sheet in the form of
Annexure C to Guidance Note 21 confirming the entity
has the available capacity under listing rule 7.1A to
issue that number of securities.
Part 5E – Proposed non-pro rata offer under a disclosure document or PDS – fees
and expenses
Question
No.
Question Answer
5E.1 *Will there be a lead manager or broker to
the proposed offer?
5E.1a *Who is the lead manager/broker?
Answer this question if your response to Q5E.1 is
“Yes”.
5E.1b
*What fee, commission or other
consideration is payable to them for acting
as lead manager/broker?
Answer this question if your response to Q5E.1 is
“Yes”.
5E.2 *Is the proposed offer to be underwritten?
5E.2a *Who are the underwriter(s)?
Answer this question if your response to Q5E.2 is
“Yes”.
+ See chapter 19 for defined terms
31 January 2020 Page 29
5E.2b *What is the extent of the underwriting (i.e.
the amount or proportion of the offer that is
underwritten)?
Answer this question if your response to Q5E.2 is
“Yes”.
5E.2c *What fees, commissions or other
consideration are payable to them for acting
as underwriter(s)?
Answer this question if your response to Q5E.2 is
“Yes”.
Note: This includes any applicable discount the
underwriter receives to the issue price payable by
participants in the offer.
5E.2d *Provide a summary of the significant
events that could lead to the underwriting
being terminated
Answer this question if your response to Q5E.2 is
“Yes”.
You may cross-refer to another document with this
information provided it has been released on the ASX
Market Announcements Platform.
5E.2e *Is a party referred to in listing rule 10.11
underwriting or sub-underwriting the
proposed offer?
Answer this question if the issuer is an ASX Listing (i.e.
not an ASX Debt Listing or ASX Foreign Exempt
Listing) and your response to Q5E.2 is “Yes”.
Note: If your response is “Yes”, this will require security
holder approval under listing rule 10.11.
5E.2e(i) *What is the name of that party?
Answer this question if the issuer is an ASX Listing and
your response to Q5E.2e is “Yes”.
Note: If there is more than one such party acting as
underwriter or sub-underwriter include all of their
details in this and the next 2 questions.
5E.2e(ii) *What is the extent of their underwriting or
sub-underwriting (ie the amount or
proportion of the issue they have
underwritten or sub-underwritten)?
Answer this question if the issuer is an ASX Listing and
your response to Q5E.2e is “Yes”.
5E.2e(iii) *What fee, commission or other
consideration is payable to them for acting
as underwriter or sub-underwriter?
Answer this question if the issuer is an ASX Listing and
your response to Q5E.2e is “Yes”.
Note: This includes any applicable discount the
underwriter or sub-underwriter receives to the issue
price payable by participants in the issue.
5E.3 *Will brokers who lodge acceptances or
renunciations on behalf of eligible +security
holders be paid a handling fee or
commission?
5E.3a * Will the handling fee or commission be
dollar based or percentage based?
Answer this question if your response to Q5E.3 is
“Yes”.
+ See chapter 19 for defined terms
31 January 2020 Page 30
5E.3b *Amount of handling fee or commission
payable to brokers who lodge acceptances
or renunciations on behalf of eligible
+security holders
Answer this question if your response to Q5E.3 is “Yes”
and your response to Q5E.3a is “dollar based”.
5E.3c *Percentage handling fee or commission
payable to brokers who lodge acceptances
or renunciations on behalf of eligible
+security holders
Answer this question if your response to Q5E.3 is “Yes”
and your response to Q5E.3a is “percentage based”.
5E.3d
Please provide any other relevant
information about the handling fee or
commission method
Answer this question if your response to Q5E.3 is
“Yes”.
5E.4
Details of any other material fees or costs to
be incurred by the entity in connection with
the proposed offer
Part 5F – Proposed non-pro rata offer under a +disclosure document or +PDS –
further information
Question
No.
Question Answer
5F.1 *The purpose(s) for which the entity intends
to use the cash raised by the proposed offer
You may select one or more of the items in the list.
☐ For additional working capital
☐ To fund the retirement of debt
☐ To pay for the acquisition of an asset
[provide details below]
☐ To pay for services rendered [provide
details below]
☐ Other [provide details below]
Additional details:
5F.2 *Will the entity be changing its
dividend/distribution policy if the proposed
issue is successful?
5F.2a *Please explain how the entity will change
its dividend/distribution policy if the
proposed issue is successful
Answer this question if your response to Q5F.2 is
“Yes”.
5F.3 *Please explain the entity’s allocation policy
for the offer, including whether or not
acceptances from existing +security holders
will be given priority
5F.4 *URL on the entity’s website where
investors can download the +disclosure
document or +PDS
5F.5 Any other information the entity wishes to
provide about the proposed offer
+ See chapter 19 for defined terms
31 January 2020 Page 31
Part 6 – Details of proposed non-pro rata offer to wholesale investors
under an +information memorandum
If your response to Q1.6 is “A non-+pro rata offer to wholesale investors under an information memorandum”, please complete
Parts 6A – 6F and the details of the securities proposed to be issued in Part 8. Refer to Listing Rule 7.10 for the rules that apply
to non-pro rata issues to existing security holders.
Part 6A – Proposed non-pro rata offer to wholesale investors under an +information
memorandum – conditions
Question
No.
Question Answer
6A.1 *Are any of the below approvals required for
the non-pro rata offer to wholesale investors
under an information memorandum issue?
•
+
Security holder approval
• Court approval
• Lodgement of court order with
+
ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to
the entity required to be given/met for
the offer to wholesale investors under
an information memorandum issue.
6A.1a Conditions
Answer these questions if your response to 6A.1 is Yes
Select the applicable approvals from the list. More than one approval can be selected. The “date for
determination” is the date that you expect to know if the approval is given (for example, the date of the security
holder meeting in the case of
+
security holder approval or the date of the court hearing in the case of court
approval).
*Approval/ condition
Type
*Date for
determination
*Is the date
estimated or
actual?
**Approval received/
condition met?
Please respond “Yes” or
“No”. Only answer this
question when you know
the outcome of the
approval.
Comments
+Security holder
approval
Court approval
Lodgement of court
order with +ASIC
ACCC approval
FIRB approval
Other (please specify
in comment section)
Part 6B – Proposed non-pro rata offer to wholesale investors under an +information
memorandum – offer details
Question
No.
Question Answer
6B.1 *Class of +securities to be offered under the
+information memorandum (please enter
both the ASX security code & description)
+ See chapter 19 for defined terms
31 January 2020 Page 32
6B.2 *The number of +securities to be offered
under the +information memorandum
6B.3 *Will the offer be conditional on applications
for a minimum number of +securities being
received or a minimum amount being raised
(i.e. a minimum subscription condition)?
6B.3a *Describe the minimum subscription
condition
Answer this question if your response to Q6B.3 is
“Yes”.
6B.4 *Will the entity be entitled to accept over-
subscriptions?
6B.4a *Provide details of the number or value of
over-subscriptions that the entity may
accept
Answer this question if your response to Q6B.4 is
“Yes”.
6B.5 *Will individual investors be required to
accept the offer for a minimum number or
value of +securities (i.e. a minimum
acceptance condition)?
6B.5a
*Describe the minimum acceptance
condition
Answer this question if your response to Q6B.5 is
“Yes”.
6B.6 *Will individual investors be limited to
accepting the offer for a maximum number
or value of +securities (i.e. a maximum
acceptance condition)?
6B.6a *Describe the maximum acceptance
condition
Answer this question if your response to Q6B.6 is
“Yes”.
6B.7 *Will a scale back be applied if the offer is
over-subscribed?
6B.7a *Describe the scale back arrangements
Answer this question if your response to Q6B.7 is
“Yes”.
6B.8 *In what currency will the offer be made?
For example, if the consideration for the issue is
payable in Australian Dollars, state AUD.
6B.9 *Has the offer price been determined?
6B.9a *What is the offer price per +security?
Answer this question if your response to Q6B.9 is “Yes”
using the currency specified in your answer to Q6B.8.
6B.9b
*How and when will the offer price be
determined?
Answer this question if your response to Q6B.9 is “No”.
+ See chapter 19 for defined terms
31 January 2020 Page 33
6B.9c *Will the offer price be determined by way of
a bookbuild?
Answer this question if your response to Q6B.9 is “No”.
If your response to this question is “yes”, please note
the information that ASX expects to be announced
about the results of the bookbuild set out in
section 4.12 of Guidance Note 30 Notifying an Issue of
Securities and Applying for their Quotation.
6B.9d *Provide details of the parameters that will
apply to the bookbuild (e.g. the indicative
price range for the bookbuild)
Answer this question if your response to Q6B.9 is “No”
and your response to Q6B.9c is “Yes”.
Part 6C – Proposed non-pro rata offer to wholesale investors under an +information
memorandum – timetable
Question
No.
Question Answer
6C.1 *Expected date of +information
memorandum
6C.2 *Date when +information memorandum and
acceptance forms will be made available to
investors
6C.3 *Offer open date
6C.4 *Closing date for receipt of acceptances
6C.6 *Proposed +Issue date
Part 6D – Proposed non-pro rata offer to wholesale investors under an +information
memorandum – listing rule requirements
Question
No.
Question Answer
6D.1
*Has the entity obtained, or is it obtaining,
+security holder approval for the issue
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing (i.e.
not an ASX Debt Listing or ASX Foreign Exempt
Listing).
6D.1a *Date of meeting or proposed meeting to
approve the issue under listing rule 7.1
Answer this question if the issuer is an ASX Listing and
your response to Q6D.1 is “Yes”.
6D.1b *Are any of the +securities proposed to be
issued without +security holder approval
using the entity's 15% placement capacity
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing and
your response to Q6D.1 is “No”.
+ See chapter 19 for defined terms
31 January 2020 Page 34
6D.1b(i) *How many +securities are proposed to be
issued without +security holder approval
using the entity's 15% placement capacity
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing,
your response to Q6D.1 is “No” and your response to
Q6D.1b is “Yes”.
Please complete and separately send by email to your
ASX listings adviser a work sheet in the form of
Annexure B to Guidance Note 21 confirming the entity
has the available capacity under listing rule 7.1 to issue
that number of securities.
6D.1c *Are any of the +securities proposed to be
issued without +security holder approval
using the entity's additional 10% placement
capacity under listing rule 7.1A (if
applicable)?
Answer this question if the issuer is an ASX Listing
your response to Q6D.1 is “No”.
6D.1c(i) *How many +securities are proposed to be
issued without +security holder approval
using the entity's additional 10% placement
capacity under listing rule 7.1A?
Answer this question if the issuer is an ASX Listing,
your response to Q6D.1 is “No” and your response to
Q6D.1c is “Yes”.
Please complete and separately send by email to your
ASX listings adviser a work sheet in the form of
Annexure C to Guidance Note 21 confirming the entity
has the available capacity under listing rule 7.1A to
issue that number of securities.
Part 6E – Proposed non-pro rata offer to wholesale investors under an +information
memorandum – fees and expenses
Question
No.
Question Answer
6E.1
*Will there be a lead manager or broker to
the proposed offer?
6E.1a *Who is the lead manager/broker?
Answer this question if your response to Q6E.1 is
“Yes”.
6E.1b *What fee, commission or other
consideration is payable to them for acting
as lead manager/broker?
Answer this question if your response to Q6E.1 is
“Yes”.
6E.2 *Is the proposed offer to be underwritten?
6E.2a *Who are the underwriter(s)?
Answer this question if your response to Q6E.2 is
“Yes”.
6E.2b *What is the extent of the underwriting (i.e.
the amount or proportion of the offer that is
underwritten)?
Answer this question if your response to Q6E.2 is Yes
+ See chapter 19 for defined terms
31 January 2020 Page 35
6E.2c *What fees, commissions or other
consideration are payable to them for acting
as underwriter(s)?
Answer this question if your response to Q6E.2 is
“Yes”.
Note: This includes any applicable discount the
underwriter receives to the issue price payable by
participants in the issue.
6E.2d *Provide a summary of the significant
events that could lead to the underwriting
being terminated
Answer this question if your response to Q6E.2 is
"Yes”.
You may cross-refer to another document with this
information provided it has been released on the ASX
Market Announcements Platform.
6E.2e *Is a party referred to in listing rule 10.11
underwriting or sub-underwriting the
proposed offer?
Answer this question if the issuer is an ASX Listing and
your response to Q6E.2 is “Yes”.
Note: If your response is “Yes”, this will require security
holder approval under listing rule 10.11.
6E.2e(i) *What is the name of that party?
Answer this question if the issuer is ASX Listing and
your response to Q6E.2e is “Yes”.
Note: If there is more than one such party acting as
underwriter or sub-underwriter include all of their
details in this and the next 2 questions
6E.2e(ii) *What is the extent of their underwriting or
sub-underwriting (ie the amount or
proportion of the issue they have
underwritten or sub-underwritten)?
Answer this question if the issuer is an ASX Listing and
your response to Q6E.2e is “Yes”.
6E.2e(iii) *What fee, commission or other
consideration is payable to them for acting
as underwriter or sub-underwriter?
Answer this question if the issuer is ASX Listing and
your response to Q6E.2e is “Yes”.
Note: This includes any applicable discount the
underwriter or sub-underwriter receives to the issue
price payable by participants in the issue.
6E.3 *Will brokers who lodge acceptances or
renunciations on behalf of eligible +security
holders be paid a handling fee or
commission?
6E.3a
* Will the handling fee or commission be
dollar based or percentage based?
Answer this question if your response to Q6E.3 is
“Yes”.
6E.3b *Amount of handling fee or commission
payable to brokers who lodge acceptances
or renunciations on behalf of eligible
+security holders
Answer this question if your response to Q6E.3 is “Yes”
and your response to Q6E.3a is “dollar based”.
+ See chapter 19 for defined terms
31 January 2020 Page 36
6E.3c *Percentage handling fee or commission
payable to brokers who lodge acceptances
or renunciations on behalf of eligible
+security holders
Answer this question if your response to Q6E.3 is “Yes”
and your response to Q6E.3a is “percentage based”.
6E.3d Please provide any other relevant
information about the handling fee or
commission method
Answer this question if your response to Q6E.3 is
“Yes”.
6E.4 Details of any other material fees or costs to
be incurred by the entity in connection with
the proposed offer
Part 6F – Proposed non-pro rata offer to wholesale investors under an +information
memorandum – further information
Question
No.
Question Answer
6F.1 *The purpose(s) for which the entity intends
to use the cash raised by the proposed offer
You may select one or more of the items in the list.
☐ For additional working capital
☐ To fund the retirement of debt
☐ To pay for the acquisition of an asset
[provide details below]
☐ To pay for services rendered [provide
details below]
☐ Other [provide details below]
Additional details:
6F.2 *Will the entity be changing its
dividend/distribution policy if the proposed
issue is successful?
6F.2a *Please explain how the entity will change
its dividend/distribution policy if the
proposed issue is successful
Answer this question if your response to Q6F.2 is
“Yes”.
6F.3 *The entity’s allocation policy for the offer,
including whether or not acceptances from
existing +security holders will be given
priority
6F.4 *URL on the entity’s website where
wholesale investors can download the
+information memorandum
6F.5
Any other information the entity wishes to
provide about the proposed offer
+ See chapter 19 for defined terms
31 January 2020 Page 37
Part 7 – Details of proposed placement or other issue
If your response to Q1.6 is “A placement or other type of issue”, please complete Parts 7A – 7F and the details of the securities
proposed to be issued in Part 8.
Part 7A – Proposed placement or other issue – conditions
Question
No.
Question Answer
7A.1 *Are any of the following approvals required
for the placement or other type of issue?
•
+
Security holder approval
• Court approval
• Lodgement of court order with
+
ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to
the entity.
No
7A.1a Conditions
Answer these questions if your response to 7A.1 is “Yes”.
Select the applicable approval(s) from the list. More than one approval can be selected. The “date for
determination” is the date that you expect to know if the approval is given (for example, the date of the security
holder meeting in the case of
+
security holder approval or the date of the court hearing in the case of court
approval).
*Approval/ condition
Type
*Date for
determination
*Is the date
estimated or
actual?
**Approval received/
condition met?
Please answer “Yes” or
“No”. Only answer this
question when you know
the outcome of the
approval.
Comments
+Security holder
approval
Court approval
Lodgement of court
order with +ASIC
ACCC approval
FIRB approval
Other (please specify
in comment section)
Part 7B – Details of proposed placement or other issue - issue details
Question
No.
Question Answer
7B.1 Number of +securities proposed to be
issued
46,428,571 CEN Fully Paid Ordinary Shares
7B.2
*Are the +securities proposed to be issued
being issued for a cash consideration?
If the securities are being issued for nil cash consideration, answer
this question “No”.
Yes
+ See chapter 19 for defined terms
31 January 2020 Page 38
7B.2a *In what currency is the cash consideration
being paid
For example, if the consideration is being paid in
Australian Dollars, state AUD.
Answer this question if your response to Q7B.1 is
“Yes”.
NZD
7B.2b *What is the issue price per +security
Answer this question if your response to Q7B.1 is “Yes”
and by reference to the issue currency provided in your
response to Q7B.1a.
Note: you cannot enter a nil amount here. If the
securities are being issued for nil cash consideration,
answer Q7B.1 as “No” and complete Q7B.1c.
NZ$7.00
7B.2c Please describe the consideration being
provided for the +securities
Answer this question if your response to Q7B.1 is “No”.
-
7B.2d Please provide an estimate of the AUD
equivalent of the consideration being
provided for the +securities
Answer this question if your response to Q7B.1 is “No”.
-
Part 7C – Proposed placement or other issue – timetable
Question
No.
Question Answer
7C.1 *Proposed +issue date 19 February 2021
Part 7D – Proposed placement or other issue – listing rule requirements
Question
No.
Question Answer
7D.1 *Has the entity obtained, or is it obtaining,
+security holder approval for the issue
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing (i.e.
not an ASX Debt Listing or ASX Foreign Exempt
Listing).
N/A
7D.1a *Date of meeting or proposed meeting to
approve the issue under listing rule 7.1
Answer this question if the issuer is an ASX Listing and
your response to Q7D.1 is “Yes”.
N/A
7D.1b
*Are any of the +securities proposed to be
issued without +security holder approval
using the entity's 15% placement capacity
under listing rule 7.1?
Answer this question if the issuer is an ASX Listing and
your response to Q7D.1 is “No”.
N/A
+ See chapter 19 for defined terms
31 January 2020 Page 39
7D.1b(i) *How many +securities are proposed to be
issued without +security holder approval
using the entity’s 15% placement capacity
under listing rule 7.1?
Answer this question the issuer is an ASX Listing, your
response to Q7D.1 is “No” and if your response to
Q7D.1b is “Yes”.
Please complete and separately send by email to your
ASX listings adviser a work sheet in the form of
Annexure B to Guidance Note 21 confirming the entity
has the available capacity under listing rule 7.1 to issue
that number of securities.
N/A
7D.1c *Are any of the +securities proposed to be
issued without +security holder approval
using the entity's additional 10% placement
capacity under listing rule 7.1A (if
applicable)?
Answer this question if the issuer is an ASX Listing and
your response to Q7D.1 is “No”.
N/A
7D.1c(i) *How many +securities are proposed to be
issued without +security holder approval
using the entity's additional 10% placement
capacity under listing rule 7.1A?
Answer this question if the issuer is an ASX Listing,
your response to Q7D.1 is “No” and your response to
Q7D.1c is “Yes”.
Please complete and separately send by email to your
ASX listings adviser a work sheet in the form of
Annexure C to Guidance Note 21 confirming the entity
has the available capacity under listing rule 7.1A to
issue that number of securities.
N/A
7D.1c(ii) *Please explain why the entity has chosen
to do a placement or other issue rather than
a +pro rata issue or an offer under a
+security purchase plan in which existing
ordinary +security holders would have been
eligible to participate
Answer this question if the issuer is an ASX Listing,
your response to Q7D.1 is “No” and your response to
Q7D.1c is “Yes”.
N/A
7D.2 *Is a party referred to in listing rule 10.11.1
participating in the proposed issue?
Answer this question if the issuer is an ASX Listing.
Note: If your response is “Yes”, this will require security
holder approval under listing rule 10.11.
N/A
7D.3 *Will any of the +securities to be issued be
+restricted securities for the purposes of the
listing rules?
Note: the entity should not apply for quotation of
restricted securities
No
7D.3a *Please enter, the number and +class of the
+restricted securities and the date from
which they will cease to be +restricted
securities
Answer this question if your response to Q7D.3 is
“Yes”.
N/A
7D.4 *Will any of the +securities to be issued be
subject to +voluntary escrow?
No
+ See chapter 19 for defined terms
31 January 2020 Page 40
7D.4a *Please enter the number and +class of the
+securities subject to +voluntary escrow
and the date from which they will cease to
be subject to +voluntary escrow
Answer this question if your response to Q7D.4 is
“Yes”.
N/A
Part 7E – Proposed placement or other issue – fees and expenses
Question
No.
Question Answer
7E.1 *Will there be a lead manager or broker to
the proposed issue?
Yes
7E.1a *Who is the lead manager/broker?
Answer this question if your response to Q7E.1 is
“Yes”.
Jarden Securities Limited and Macquarie
Securities (NZ) Limited
7E.1b *What fee, commission or other
consideration is payable to them for acting
as lead manager/broker?
Answer this question if your response to Q7E.1 is
“Yes”.
Management fee of 0.60% of the gross
placement proceeds, subject to a minimum
placement lead management fee of NZ$1.8
million.
7E.2 *Is the proposed issue to be underwritten? Yes
7E.2a *Who are the underwriter(s)?
Answer this question if your response to Q7E.2 is
“Yes”.
Jarden Partners Limited and Macquarie
Securities (NZ) Limited
7E.2b *What is the extent of the underwriting (i.e.
the amount or proportion of the issue that is
underwritten)?
Answer this question if your response to Q7E.2 is
“Yes”.
Fully underwritten
7E.2c *What fees, commissions or other
consideration are payable to them for acting
as underwriter(s)?
Answer this question if your response to Q7E.2 is
“Yes”.
Note: This includes any applicable discount the
underwriter receives to the issue price payable by
participants in the issue.
Underwriting fee of 1% of the gross
placement proceeds.
+ See chapter 19 for defined terms
31 January 2020 Page 41
7E.2d *Provide a summary of the significant
events that could lead to the underwriting
being terminated
Answer this question if your response to Q7E.2 is
“Yes”.
Note: You may cross-refer to a covering
announcement or to a separate annexure with this
information.
Termination events which are customary for
an offer of this nature, including:
Material Adverse Event
Occurrence of an event or events, or any
matter or matters or information, which in
the reasonable opinion of the Lead
Managers and the Underwriters has or is
likely to have a material adverse effect on,
among other things, CEN, its business of
prospects, the placement or the Retail Offer,
the price of CEN's shares, or would or would
be likely to give rise to a material liability to
the Underwriters or Lead Managers in
connection with the placement or the Retail
Offer.
Market Fall
The level of the NZX 50 Index or the ASX
200 Index falls by a prescribed amount and
for a prescribed duration (specified in the
placement agreement).
Trading suspension
Trading in all securities quoted on the NZX,
ASX, LSE or NYSE being suspended or
limited in a material respect for a prescribed
duration (specified in the placement
agreement) and that having a material
adverse effect on the Offer.
Disclosures
False, deceptive, misleading or
unsubstantiated disclosures made by CEN
in the offer materials, or there being a
change required to the offer materials.
Regulatory Action
Regulatory action or judicial challenge by a
government entity relating to the offer.
Please also refer to the investor
presentation released on NZX and ASX on
15 February 2021.
7E.3 *Is a party referred to in listing rule 10.11
underwriting or sub-underwriting the
proposed issue?
Answer this question if the issuer is an ASX Listing (i.e.
not an ASX Debt Listing or ASX Foreign Exempt
Listing) and your response to Q7E.2 is “Yes”.
Note: If your response is “Yes”, this will require security
holder approval under listing rule 10.11.
N/A
7E.3a *What is the name of that party?
Answer this question if the issuer is an ASX Listing and
your response to Q7E.3 is “Yes”.
Note: If there is more than one such party acting as
underwriter or sub-underwriter include all of their
details in this and the next 2 questions.
-
+ See chapter 19 for defined terms
31 January 2020 Page 42
7E.3b *What is the extent of their underwriting or
sub-underwriting (i.e. the amount or
proportion of the issue they have
underwritten or sub-underwritten)?
Answer this question if the issuer is an ASX Listing and
your response to Q7E.3 is “Yes”.
-
7E.3c *What fee, commission or other
consideration is payable to them for acting
as underwriter or sub-underwriter?
Answer this question if the issuer is an ASX Listing and
your response to Q7E.3 is “Yes”.
Note: This includes any applicable discount the
underwriter or sub-underwriter receives to the issue
price payable by participants in the issue.
-
7E.4 Details of any other material fees or costs to
be incurred by the entity in connection with
the proposed issue
Standard share registry, external advisers
and NZX/ASX administrative fees.
Part 7F – Proposed placement or other issue – further information
Question
No.
Question Answer
7F.1 *The purpose(s) for which the entity is
issuing the securities
You may select one or more of the items in the list.
☐ To raise additional working capital
☒ To fund the retirement of debt
☐ To pay for the acquisition of an asset
[provide details below]
☐ To pay for services rendered [provide
details below]
☒ Other [provide details below]
Additional details:
Please refer to the investor presentation
released on 15 February 2021.
7F.2 *Will the entity be changing its
dividend/distribution policy if the proposed
issue proceeds?
CEN is adopting a new distribution policy in
connection with the offer.
7F.2a *Please explain how the entity will change
its dividend/distribution policy if the
proposed issue proceeds
Answer this question if your response to Q7F.2 is
“Yes”.
Please refer to the Investor Presentation
announced to ASX on 15 February 2021.
7F.3 Any other information the entity wishes to
provide about the proposed issue
No
+ See chapter 19 for defined terms
31 January 2020 Page 43
Part 8 – details of +securities proposed to be issued
Answer the relevant questions in this part for the type of +securities the entity proposes to issue. If the entity is proposing to
issue more than one class of security, including free attaching securities, please complete a separate version of Part 8 for each
class of security proposed to be issued.
Part 8A – type of +securities proposed to be issued
Question
No.
Question Answer
8A.1 *The +securities proposed to be issued are:
Tick whichever is applicable
Note: SPP offers must select “existing quoted class”
☒ Additional +securities in a class that is
already quoted on ASX ("existing
quoted class")
☐ Additional +securities in a class that is
not currently quoted, and not intended
to be quoted, on ASX ("existing
unquoted class")
☐ New +securities in a class that is not yet
quoted, but is intended to be quoted, on
ASX ("new quoted class")
☐ New +securities in a class that is not
quoted, and not intended to be quoted,
on ASX ("new unquoted class")
Note: If the +securities referred to in this form are being offered under a +disclosure document or
+PDS and the entity selects the first or third option in its response to question 8A.1 above (existing
quoted class or new quoted class), then by lodging this form with ASX, the entity will be taken, for the
purposes of sections 711(5) and 1013H (as applicable) of the Corporations Act, to have applied for
quotation of those +securities. However, once the final number of +securities offered under the
+disclosure document or +PDS is known, the entity must complete and lodge with ASX an
Appendix 2A applying for the quotation of that number of +securities.
Part 8B – details of +securities proposed to be issued (existing quoted class or
existing unquoted class)
Answer the questions in this Part if your response to Q8A.1 is “existing quoted class” or “existing unquoted class”.
Question
No.
Question Answer
8B.1 *ASX security code & description CEN Fully Paid Ordinary Shares
8B.2a
*Will the +securities to be quoted rank
equally in all respects from their issue date
with the existing issued +securities in that
class?
Yes
8B.2b *Is the actual date from which the
+securities will rank equally (non-ranking
end date) known?
Answer this question if your response to Q8B.2a is
“No”.
-
8B.2c *Provide the actual non-ranking end date
Answer this question if your response to Q8B.2a is
“No” and your response to Q8B.2b is “Yes”.
-
8B.2d *Provide the estimated non-ranking end
period
Answer this question if your response to Q8B.2a is
“No” and your response to Q8B.2b is “No”.
-
+ See chapter 19 for defined terms
31 January 2020 Page 44
8B.2e *Please state the extent to which the
+securities do not rank equally:
in relation to the next dividend,
distribution or interest payment; or
for any other reason
Answer this question if your response to Q8B.2a is
“No”.
For example, the securities may not rank at all, or may
rank proportionately based on the percentage of the
period in question they have been on issue, for the
next dividend, distribution or interest payment or they
may not be entitled to participate in some other event,
such as an entitlement issue.
-
Part 8C – details of +securities proposed to be issued (new quoted class or new
unquoted class)
Answer the questions in this Part if your response to Q8A.1 is “new quoted class” or “new unquoted class”.
Question
No.
Question Answer
8C.1 *+Security description
The ASX security code for this security will be
confirmed by ASX in due course.
8C.2 *Security type
Select one item from the list.
Please select the most appropriate security type from
the list. This will determine more detailed questions to
be asked about the security later in this section. Select
“ordinary fully or partly paid shares/units” for stapled
securities or CDIs. For interest rate securities, please
select the appropriate choice from either “Convertible
debt securities” or “Non-convertible debt securities”.
Select “Other” for performance shares/units and
performance options/rights or if the selections available
in the list do not appropriately describe the security
being issued.
☐ Ordinary fully or partly paid shares/units
☐ Options
☐ +Convertible debt securities
☐ Non-convertible +debt securities
☐ Redeemable preference shares/units
☐ Other
8C.3 ISIN code
Answer this question if you are an entity incorporated
outside Australia and you are proposing to issue a new
class of securities other than CDIs. See also the note
at the top of this form.
8C.4a *Will all the +securities proposed to be
issued in this class rank equally in all
respects from the issue date?
8C.4b *Is the actual date from which the
+securities will rank equally (non-ranking
end date) known?
Answer this question if your response to Q8C.4a is
“No”.
8C.4c *Provide the actual non-ranking end date
Answer this question if your response to Q8C.5a is
“No” and your response to Q8C.4b is “Yes”.
8C.4d *Provide the estimated non-ranking end
period
Answer this question if your response to Q8C.4a is
“No” and your response to Q8C.4b is “No”.
+ See chapter 19 for defined terms
31 January 2020 Page 45
8C.4e *Please state the extent to which the
+securities do not rank equally:
in relation to the next dividend,
distribution or interest payment; or
for any other reason
Answer this question if your response to Q8C.4a is
“No”.
For example, the securities may not rank at all, or may
rank proportionately based on the percentage of the
period in question they have been on issue, for the
next dividend, distribution or interest payment; or they
may not be entitled to participate in some other event,
such as an entitlement issue.
8C.5 Please attach a document or provide a URL
link for a document lodged with ASX setting
out the material terms of the +securities
proposed to be issued
You may cross-reference a disclosure document, PDS,
information memorandum, investor presentation or
other announcement with this information provided it
has been released to the ASX Market Announcements
Platform.
8C.6
*Have you received confirmation from ASX
that the terms of the +securities are
appropriate and equitable under listing rule
6.1?
Answer this question only if you are an ASX Listing.
(ASX Foreign Exempt Listings and ASX Debt Listings
do not have to answer this question).
If your response is “No” and the securities have any
unusual terms, you should approach ASX as soon as
possible for confirmation under listing rule 6.1 that the
terms are appropriate and equitable.
8C.7a
Ordinary fully or partly paid shares/units details
Answer the questions in this section if you selected this security type in your response to Question 8C.2.
*+Security currency
This is the currency in which the face amount of an
issue is denominated. It will also typically be the
currency in which distributions are declared.
*Will there be CDIs issued over the
+securities?
*CDI ratio
Answer this question if you answered “Yes” to the
previous question. This is the ratio at which CDIs can
be transmuted into the underlying security (e.g. 4:1
means 4 CDIs represent 1 underlying security whereas
1:4 means 1 CDI represents 4 underlying securities).
*Is it a partly paid class of +security?
*Paid up amount: unpaid amount
Answer this question if answered “Yes” to the previous
question.
The paid up amount represents the amount of
application money and/or calls which have been paid
on any security considered ‘partly paid’
The unpaid amount represents the unpaid or yet to be
called amount on any security considered ‘partly paid’.
The amounts should be provided per the security
currency (e.g. if the security currency is AUD, then the
paid up and unpaid amount per security in AUD).
+ See chapter 19 for defined terms
31 January 2020 Page 46
*Is it a stapled +security?
This is a security class that comprises a number of
ordinary shares and/or ordinary units issued by
separate entities that are stapled together for the
purposes of trading.
8C.7b
Option details
Answer the questions in this section if you selected this security type in your response to Question Q8C.2.
*+Security currency
This is the currency in which the exercise price is
payable.
*Exercise price
The price at which each option can be exercised and
convert into the underlying security.
The exercise price should be provided per the security
currency (i.e. if the security currency is AUD, the
exercise price should be expressed in AUD).
*Expiry date
The date on which the options expire or terminate.
*Details of the number and type of +security
(including its ASX security code if the
+security is quoted on ASX) that will be
issued if an option is exercised
For example, if the option can be exercised to receive
one fully paid ordinary share with ASX security code
ABC, please insert “One fully paid ordinary share
(ASX:ABC)”.
8C.7c
Details of non-convertible +debt securities, +convertible debt securities, or
redeemable preference shares/units
Answer the questions in this section if you selected one of these security types in your response to Question
Q8C.2.
Refer to Guidance Note 34 and the “Guide to the Naming Conventions and Security Descriptions for ASX Quoted
Debt and Hybrid Securities” for further information on certain terms used in this section
*Type of +security
Select one item from the list
☐ Simple corporate bond
☐ Non-convertible note or bond
☐ Convertible note or bond
☐ Preference share/unit
☐ Capital note
☐ Hybrid security
☐ Other
*+Security currency
This is the currency in which the face value of the
security is denominated. It will also typically be the
currency in which interest or distributions are paid.
*Face value
This is the principal amount of each security.
The face value should be provided per the security
currency (i.e. if security currency is AUD, then the face
value per security in AUD).
+ See chapter 19 for defined terms
31 January 2020 Page 47
*Interest rate type
Select one item from the list
Select the appropriate interest rate type per the terms
of the security. Definitions for each type are provided in
the Guide to the Naming Conventions and Security
Descriptions for ASX Quoted Debt and Hybrid
Securities
☐ Fixed rate
☐ Floating rate
☐ Indexed rate
☐ Variable rate
☐ Zero coupon/no interest
☐ Other
*Frequency of coupon/interest payments
per year
Select one item from the list.
☐ Monthly
☐ Quarterly
☐ Semi-annual
☐ Annual
☐ No coupon/interest payments
☐ Other
*First interest payment date
A response is not required if you have selected “No
coupon/interest payments” in response to the question
above on the frequency of coupon/interest payments
*Interest rate per annum
Answer this question if the interest rate type is fixed.
*Is the interest rate per annum estimated at
this time?
Answer this question if the interest rate type is fixed.
*If the interest rate per annum is estimated,
then what is the date for this information to
be announced to the market (if known)
Answer this question if the interest rate type is fixed
and your response to the previous question is “Yes”.
Answer “Unknown” if the date is not known at this time.
*Does the interest rate include a reference
rate, base rate or market rate (e.g. BBSW
or CPI)?
Answer this question if the interest rate type is floating
or indexed.
*What is the reference rate, base rate or
market rate?
Answer this question if the interest rate type is floating
or indexed and your response to the previous question
is “Yes”.
*Does the interest rate include a margin
above the reference rate, base rate or
market rate?
Answer this question if the interest rate type is floating
or indexed.
*What is the margin above the reference
rate, base rate or market rate (expressed as
a percent per annum)
Answer this question if the interest rate type is floating
or indexed and your response to the previous question
is “Yes”.
*Is the margin estimated at this time?
Answer this question if the interest rate type is floating
or indexed.
+ See chapter 19 for defined terms
31 January 2020 Page 48
*If the margin is estimated, then what is the
date for this information to be announced to
the market (if known)
Answer this question if the interest rate type is floating
or indexed and your response to the previous question
is “Yes”.
Answer “Unknown” if the date is not known at this time.
*S128F of the Income Tax Assessment Act
status applicable to the +security
Select one item from the list
For financial products which are likely to give rise to a
payment to which s128F of the Income Tax
Assessment Act applies, ASX requests issuers to
confirm the s128F status of the security:
“s128F exempt” means interest payments are not
taxable to non-residents;
“Not s128F exempt” means interest payments are
taxable to non-residents;
“s128F exemption status unknown” means the
issuer is unable to advise the status;
“Not applicable” means s128F is not applicable to this
security
☐ s128F exempt
☐ Not s128F exempt
☐ s128F exemption status unknown
☐ Not applicable
*Is the +security perpetual (i.e. no maturity
date)?
Yes or No
*Maturity date
Answer this question if the security is not perpetual
*Select other features applicable to the
+security
Up to 4 features can be selected. Further information is
available in the Guide to the Naming Conventions and
Security Descriptions for ASX Quoted Debt and Hybrid
Securities.
☐ Simple
☐ Subordinated
☐ Secured
☐ Converting
☐ Convertible
☐ Transformable
☐ Exchangeable
☐ Cumulative
☐ Non-Cumulative
☐ Redeemable
☐ Extendable
☐ Reset
☐ Step-Down
☐ Step-Up
☐ Stapled
☐ None of the above
*Is there a first trigger date on which a right
of conversion, redemption, call or put can
be exercised (whichever is first)?
*If yes, what is the first trigger date
Answer this question if your response to the previous
question is “Yes”.
+ See chapter 19 for defined terms
31 January 2020 Page 49
*Details of the number and type of +security
(including its ASX security code if the
+security is quoted on ASX) that will be
issued if the +securities to be quoted are
converted, transformed or exchanged
Answer this question if the security features include
“converting”, “convertible”, “transformable” or
“exchangeable”.
For example, if the security can be converted into
1,000 fully paid ordinary shares with ASX security code
ABC, please insert “1,000 fully paid ordinary shares
(ASX:ABC)”.
Introduced 01/12/19; amended 31/01/20
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer Contact Energy Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,141,000 2.8%
Total Revenue $1,141,000 2.8%
Net profit/(loss) from
continuing operations
$78,000 31.1%
Total net profit/(loss) $78,000 31.1%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.14
Imputed amount per Quoted
Equity Security
$0.035
Record Date 15 March 2021
Dividend Payment Date 30 March 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.89 $3.12
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Authority for this announcement
Name of person
authorised
to make this announcement
Kirsten Clayton, Company Secretary
Contact person for this
announcement
Matthew Forbes
Contact phone number +64 21 072 8578
Contact email address investor.centre@contactenergy.co.nz
Date of release through MAP
15/02/2021
Unaudited financial statements accompany this announcement.
---
Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places
Section 1: Issuer information
Name of issuer Contact Energy Limited
Financial product name/description Ordinary Shares
NZX ticker code CEN
ISIN (If unknown, check on NZX
website)
NZCENE0001S6
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 15/03/2021
Ex-Date (one business day before the
Record Date)
12/03/2021
Payment date (and allotment date for
DRP)
30/03/2021
Total monies associated with the
distribution
1
$ 100,599,227
(718,565,905 shares @ $0.14 / share)
Source of distribution (for example,
retained earnings)
Operating Free Cash Flow
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.17500000
Gross taxable amount
3
$0.17500000
Total cash distribution
4
$0.14000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01588235
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Fully imputed
Partial imputation
No imputation
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
If fully or partially imputed, please
state imputation rate as % applied
6
20%
Imputation tax credits per financial
product
$0.03500000
Resident Withholding Tax per
financial product
$0.02275000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP
[dd/mm/yyyy] [dd/mm/yyyy]
Date strike price to be announced (if
not available at this time)
[dd/mm/yyyy]
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
[dd/mm/yyyy]
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Kirsten Clayton, Company Secretary
Contact person for this
announcement
Matthew Forbes
Contact phone number +64 21 072 8578
Contact email address investor.centre@contactenergy.co.nz
Date of release through MAP
15/02/2021
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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