Mercury’s earnings up, generation down

Results announcement





Results for announcement to the market
Name of issuer Mercury NZ Limited (MCY)
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
$944,000 +1.7%
Total Revenue $944,000 +1.7%
Net profit/(loss) from
continuing operations
$130,000 +56.6%
Total net profit/(loss) $130,000 +56.6%
Interim Dividend
Amount per Quoted Equity
Security
$0.06800000
Imputed amount per Quoted
Equity Security
$0.02644444
Record Date 12 March 2021
Dividend Payment Date 1 April 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.65 $2.50
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to accompanying unaudited financial statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Howard Thomas, Company Secretary
Contact person for this
announcement
Howard Thomas, Company Secretary
Contact phone number +64 9 308 8200
Contact email address Howard.Thomas@Mercury.co.nz
Date of release through MAP

23/02/2021

Unaudited financial statements accompany this announcement.

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`
The Mercury Building, 33 Broadway, Newmarket 1023

PHONE:
+ 64 9 308 8200
mercury.co.nz
PO Box 90399, Auckland 1142
New Zealand

FAX:
+ 64 9 308 8209




Mercury’s earnings up, generation down
FY2021 Interim Results Financial Summary
HY21 HY20 Change %
EBITDAF
1
($M) 294 258 +14%
NET PROFIT AFTER TAX ($M) 130 83 +57%
UNDERLYING EARNINGS AFTER TAX ($M) 115 90 +28%
STAY-IN-BUSINESS CAPITAL EXPENDITURE ($M) 27 53 -49%
ELECTRICITY GENERATION (GWh) 3,320 3,428 -3%
INTERIM FULLY IMPUTED ORDINARY DIVIDEND (CENTS PER SHARE)
- TO BE PAID ON 1 APRIL
6.8

6.4

+6%

23 February 2021 – Mercury results for the half year ended 31 December 2020 showed lifts across all key
financial measures due to careful management of generation and retail portfolios, astute contract trading
and ongoing cost control. This was achieved despite lower hydro generation.
Chief Executive Vince Hawksworth said Mercury had demonstrated resilience faced with ongoing COVID-19
uncertainty, sustained elevated wholesale and futures price for electricity and a highly competitive environment.
With such conditions forecast to continue, Mercury is pressing forward with changes to deliver ongoing success.
Mercury recently announced an executive restructure, which was implemented on 2 February. “We are undertaking
process and operational changes aimed at enhancing efficiency and effectiveness and are reviewing both our long-
term asset management plans and our customer strategy to ensure they are fit and flexible enough for such a
dynamic environment,” Mr Hawksworth said.
“Guiding our evolution is our desire to balance the internationally recognised energy trilemma of ensuring that we
achieve our sustainability goals, keep the lights on for New Zealanders and do this all at the least-cost for
consumers.”
FINANCIAL SUMMARY
Mercury’s earnings (EBITDAF
1
) were $294 million, up $36 million on the prior comparable period. Higher energy
margin associated with generation and customer portfolio decisions, additional trading profits and cost control, but
partially offset by 108 GWh lower overall generation, explain most of the earnings uplift.
Net profit after tax (NPAT) was up $47 million to $130 million due mostly to higher EBITDAF and Mercury’s gain on
sale recognised from the sale of our interest in Hudson Ranch 1 and its geothermal power station in California
receiving net proceeds of approximately $40m.
Operational expenditure of $87 million was down $7 million on the prior comparable period.
STOCK EXCHANGE LISTINGS: NZX (MCY) / ASX (MCY)

NEWS RELEASE

| Page 2 of 3
Total capital expenditure for the period was $148 million (up $54 million), comprising $27 million stay-in-business
(“SIB”) expenditure and $121 million relating to growth with $115 million related to the Turitea wind farm
construction and $5 million for our Rotokawa geothermal plant upgrade which will increase output across the
Rotokawa field by 5MW from FY22.
TURITEA WIND FARM
Construction of the Turitea wind farm continues. The transmission infrastructure to serve the wind farm (and scaled
for future development at Puketoi when the time is right) is now largely complete. Wind turbines and the substation
are being constructed in the northern section and environmental controls are being put in place for earthworks and
construction in the south.
Continued contractor delivery delays across design and construction have led to completion of the northern
turbines now being further delayed until October this year (subject to the timing of successful delivery of blades to
site). Construction of the southern turbines portion of the wind farm is also significantly delayed, due in part to
knock-on impacts of the northern build programme. According to Vestas’ most recent schedule completion of the
southern turbines is now forecast to be in July 2023. Concerted effort is being applied to bring that date forward.
OPERATIONAL SUMMARY
Overall customer numbers were down 3% to 336,000, over the period. This was expected given our focus on value
and lower acquisition of customers in a high wholesale price environment which is forecast to continue. Reduced
mass market volume has been replaced with higher yielding wholesale sales.
Work at our Rotokawa geothermal station to boost output by optimising its geothermal fuel mix has progressed
well. This project remains on track to deliver an expected 4-5MW uplift in generation capacity.
Simplification measures:
• moved the approximately 5,000 customers served under our Bosco brand to Mercury. The consolidation
enhanced our ability to offer the benefits of the Mercury brand to Bosco customers
• sale of Mercury Solar (completed in February).
INTERIM DIVIDEND
Mercury Chair Prue Flacks announced the Board has declared a fully imputed interim dividend of 6.8 cents per
share payable to our more than 75,000 owners including the Crown. This represents an increase of 6% on the
HY20 dividend and equates to 40% of the guided full year normal dividend of 17.0 cents per share.
The dividend will be paid on 1 April 2021.
OUTLOOK
Mercury has reinvigorated its focus on continuous improvement with an in-house review of opportunities to work
smarter, faster and to set us up to thrive in the future. Embedding and delivering on a culture of improvement is
seeking to deliver a $30m EBITDAF benefit in FY22.
The ability to plan for an orderly exit of the Tiwai aluminium smelter has been a positive development. Mercury
remains relatively well positioned for this eventuality with its sources of renewable electricity generation located
close to key areas of demand.
The Climate Change Commission’s draft report in February presents a number of opportunities, with renewable
electricity seen as key driver to decarbonising the New Zealand economy.
“Mercury is looking forward to supporting swift action from the Government to respond to the findings. We will
continue to advocate for careful policy settings that are supportive of an electricity sector that can continue to
balance the energy trilemma for New Zealanders,” Mr Hawksworth said.

| Page 3 of 3
“It is pleasing to see strong support for transport electrification, with the Government already committed to an
emissions standard and considering other incentives to support a faster transition.”
GUIDANCE
Mercury’s FY21 EBITDAF guidance has been revised from $535 million to $520 million. This reflects an expected
100GWh decrease in full year hydro generation to 3,800 GWh due to dry weather in the Taupō catchment since
mid-January and ASX electricity futures indicating wholesale prices will remain elevated for the remainder of the
financial year.
Guidance may change and remains subject to any material events, significant one-off expenses or other
unforeseen circumstances including changes to hydrological conditions.
FY21 stay-in-business capital expenditure guidance has also been revised from $80 million to $70 million with the
deferral of non-urgent investment.
FY21 ordinary dividend guidance remains at 17.0 cents per share representing a 7.6% increase on FY20 and the
13th consecutive year of ordinary dividend increases.

Howard Thomas
General Counsel and Company Secretary
Mercury NZ Limited

For investor relations queries, please contact:
Tim Thompson
Head of Investor Relations
0275 173 470
For media queries, please contact:
Craig Dowling
Head of Communications
0272 105 337


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

1
Earnings before net interest expense, tax expense, depreciation and amortisation, change in the fair value of financial instruments, gain on sale
and impairments.

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2021
INTERIM
REPORT.
MERCURY NZ LIMITED

CONTENTS.
01 CHAIR & CHIEF EXECUTIVE UPDATE
05 OUR FINANCIALS
06 INDEPENDENT REVIEW REPORT
07 FINANCIAL STATEMENTS
17 SHAREHOLDER INFORMATION
17 DIRECTORY
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Mercury’s results for the six months ended
31 December 2020 demonstrate the
resilience of our earnings in a volatile
market. Increases across all key financial
measures are due to careful management
of generation and retail portfolios, astute
contract trading and ongoing cost
control. This was achieved despite lower
hydro generation as a consequence of a
continuation of low hydro inflows.
FINANCIAL RESULTS
Mercury’s operational earnings (EBITDAF
1
)
were up $36 million to $294 million.
Contributing to this result was a higher
energy margin associated with additional
trading profits and higher mass market
yields as we adjusted the balance of our
portfolio, offset by 108 GWh lower overall
PRUE FLACKS // CHAIR
VINCE HAWKSWORTH // CHIEF EXECUTIVE
CHAIR
& CHIEF
EXECUTIVE
UPDATE.
MERCURY’S OPERATIONAL
EARNINGS WERE UP $36 MILLION
TO $294 MILLION.
1. EBITDAF: Earnings before net interest expense, tax expense,
depreciation and amortisation, change in the fair value of financial
instruments, gain on sale and impairments.
MERCURY INTERIM REPORT 2021 1

generation. Net other income of
$20 million was favourable by $10 million
when compared to HY20, relating primarily
to increased earnings from Tilt Renewables
and distributions in relation to the sale
of our interest in Hudson Ranch 1 and its
geothermal power station (HR1), located
in California.
Operational expenditure was down
$7 million on the prior comparable period.
Total capital expenditure for the period
was $148 million (up $54 million),
comprising $27 million stay-in-business
expenditure and $121 million relating to
growth ($115 million Turitea wind farm,
$5 million Rotokawa output improvement
and $1 million for Mercury EV
subscription service).
Net profit after tax (NPAT) was up
$47 million to $130 million.
INTERIM DIVIDEND
Your Board has declared a fully imputed
interim dividend of 6.8 cents per share
payable to our over 75,000 owners including
the Crown. This represents an increase of
6% on the HY20 dividend, and equates to
40% of the forecast full year normal
dividend of 17.0 cents per share, in-line
with ordinary dividend guidance given
at our annual shareholders meeting on
24 September 2020.
The dividend will be paid on 1 April 2021.
CREDIT RATING
In November, ratings agency S&P Global
confirmed Mercury’s corporate credit rating
as BBB+/Stable. This rating includes a
one-notch uplift from the company’s
stand-alone rating of ‘BBB', reflecting
the legislated majority ownership by
the New Zealand government.
SUSTAINABLE FUNDING
Mercury went to the capital markets with
a retail green bond offer that closed with
$200 million of seven-year green bonds
allocated. This included oversubscriptions
of $50 million. We also issued a further
green $100 million private placement for
10 years.
WHOLESALE MARKET
Upstream gas supply constraints are
having a pronounced effect on the
wholesale electricity market.
Speculation of an agreement to continue
operations at the Tiwai Point aluminium
smelter was largely priced in by the market
towards the end of the period in review.
However, confirmation of electricity supply
arrangements, and the release of the
Climate Change Commission's draft report,
has seen futures prices lift across the
next four years. This signals considerable
pressure on electricity retail businesses with
likely upward price pressures for end users.
However, these same dynamics create
confidence for new investment in low cost
renewable generation.
HYDRO INFLOWS
We have carefully managed our way
through a difficult period of low inflows
into the Waikato hydro system, following
sustained record low inflows beginning
September 2019. Hydro generation
was 168 GWh down on the prior
comparable period.
Lake management will continue to be key
as we head into winter.
ASSET MANAGEMENT
Preliminary work continues for our
refurbishment at our Karāpiro hydro station.
Major works at Karāpiro have been pushed
out a year to accommodate disruptions
including those caused by the COVID-19
pandemic.
Work at our Rotokawa geothermal
station to boost output by optimising
its geothermal fuel mix has progressed
well. This project remains on track to
deliver an expected 4-5MW uplift in
generation capacity.
We are underway with a review of our
major works programme, taking on
lessons from other refurbishments,
as we continue to focus on effective
and efficient asset management.
$294M
o
EBITDAF
NET PROFIT
AFTER TAX
$130M
o
OPERATING
EXPENDITURE
$87M
p
2

CUSTOMER
Retail mass market competition is intense
with customers having choice in service
and price. Retail margins remain under
considerable pressure with high wholesale
prices and this strong retail competition.
With churn rates (customers moving
between retailers) high, our customer
numbers were down 3% over the period in
review to 336,000. This reflects our focus
on margin and value, and our choice not to
price at unsustainable levels.
Customer debt levels, which spiked
during the first COVID-19 lockdown in
March 2020, returned to near normal
levels during the period in review. That is
encouraging. However, we are conscious
of COVID-19 impacts being experienced
unevenly across communities. Difficulties
faced by vulnerable customers remain an
area of focus and concern.
We have continued our work with
community groups and have supported
the Electricity Retailers' Association of New
Zealand (ERANZ) in initiatives to better
understand and help those families and
individuals facing financial stress.
TURITEA WIND FARM
Construction of the Turitea wind farm
continues. The transmission infrastructure
to serve the wind farm (and scaled for future
development at Puketoi when the time is
right) is now largely complete. Wind turbines
and the substation are being constructed
in the northern section, and environmental
controls are being put in place for
earthworks and construction in the south.
Continued contractor delivery delays
across design and construction have led to
completion of the northern turbines now
being further delayed until October this
year (subject to the timing of successful
delivery of blades to site). Construction of
the southern turbines portion of the wind
farm is also significantly delayed due in
part to knock-on impacts of the northern
build programme. According to Vestas’
most recent schedule, completion of the
southern turbines' is now forecast to be
in July 2023. Concerted effort is being
applied to bring that date forward.
OUR PEOPLE
We launched a new platform to enable
individuals with relevant skills and
interests to connect with projects
around the business.
We offer our congratulations to those
whose contribution was recognised through
external awards, including
Romina Khambatta who was named
Top Outbound Representative at the
annual CRM Awards, and Mercury’s Risk
Assurance Officer Lucie Drummond who
was named Young Executive of the Year in
the 2020 Deloitte Top 200 Awards.
CONSOLIDATION AND RATIONALISATION
Hudson Ranch 1
Mercury sold its interest in HR1, receiving net
proceeds of approximately NZ$40 million.
Mercury retained its minority stake in
EnergySource LLC, the developer and
operator of HR1, and EnergySource Minerals
LLC, a related company currently trialling
lithium and other mineral extraction from
the geothermal brine at HR1.
Solar
Following a review, we decided to exit our
retail solar business in favour of focussing
on core activities and other areas identified
as providing growth opportunities.
Bosco
We also made the decision to move the
approximately 5,000 customers served
under our Bosco brand to Mercury.
The consolidation supports operational
efficiencies, as well as enhancing our
ability to offer benefits of the Mercury
brand to Bosco customers.
6.8CPS
o
INTERIM DIVIDEND
DECLARED
EMBEDDING AND
DELIVERING ON
A CULTURE OF
IMPROVEMENT
IS SEEKING TO
DELIVER A
$30M EBITDAF
BENEFIT IN FY22.
MERCURY INTERIM REPORT 2021 3

LOOKING FORWARD
Being quick to adapt to a very dynamic
environment will be crucial to Mercury’s
ongoing success. Recognising this, we
have strengthened our focus on continuous
improvement with an in-house review of
opportunities to work smarter, faster and
better. Embedding and delivering on a
culture of improvement is seeking to deliver
a $30 million EBITDAF benefit in FY22.
People
Associated with the need to set ourselves
up for success, a new executive structure
was put in place at the start of February.
The structure is designed to support our
contribution to balancing the internationally
recognised energy trilemma of ensuring
that we achieve our environmental goals,
keep the lights on for New Zealanders and
do this all efficiently for consumers.
Climate Change
Mercury welcomed the Climate
Change Commission’s draft report on
New Zealand’s carbon budgets, released
in January. It has a clear message that
decisiveness and action is needed if
New Zealand is to meet the emission
reduction targets needed to secure a
sustainable future.
Mercury is looking forward to supporting
swift action from the Government to
respond to the findings. We will continue to
advocate for careful policy settings that are
supportive of an electricity sector that can
continue to balance the energy trilemma
for New Zealanders.
COVID-19 response
We have continued to apply ourselves to
facing challenges posed by the evolving
COVID-19 pandemic.
We acknowledge and thank the resilience
and determination of our people, the
partners we work with and our customers
in response to the disruption and high
degree of uncertainty that exists.
Our own systems have been tested and
have stood up well to the different levels
of lockdown. This enables us to support
those who rely on us, in particular our more
vulnerable customers. We will continue to
advocate for simple but safe processes that
allow for the movement of people essential
to keeping activity going in the economy.
GUIDANCE
Mercury's FY21 EBITDAF guidance has
been revised from $535 million to
$520 million. This reflects a 100 GWh
decrease in expected full year hydro
generation to 3,800 GWh due to dry weather
in the Taupō catchment since mid-January
and ASX electricity futures indicating
wholesale prices will remain elevated for the
remainder of the financial year.
FY21 stay-in-business capital expenditure
guidance has also been revised from
ZERO
HIGH SEVERITY
HEALTH AND
SAFETY INCIDENTS
NET PROMOTER
SCORE
2
19.0
o
OF STAY-IN-
BUSINESS CAPEX
$27M
p
2. Index ranging from -100 to 100 measuring willingness of customers within
target segment to recommend Mercury (three-month rolling average).
$80 million to $70 million with the deferral
of non-urgent investment.
Guidance may change and remains
subject to any material events, significant
one-off expenses or other unforeseen
circumstances including changes to
hydrological conditions.
FY21 ordinary dividend guidance remains
at 17.0 cents per share, fully imputed,
representing a 7.6% increase on FY20
and the 13th consecutive year of ordinary
dividend increases.
On behalf of your Board and Executive
Management Team we are pleased to
present this update and look forward to
continuing to deliver on our business
strategy through the second half of the year.
Ngā mihi nui ki a koutou katoa
VINCE HAWKSWORTH // CHIEF
EXECUTIVE
PRUE FLACKS // CHAIR
4

LET’S GET
INTO THE
NUMBERS.
OUR FINANCIALS.
MERCURY INTERIM REPORT 2021 5

Interim Financial Reporting and for such
internal control as the Directors determine
is necessary to enable the preparation and
fair presentation of the consolidated interim
financial statements that are free from
material misstatement, whether due to fraud
or error.
AUDITOR’S RESPONSIBILITIES FOR
THE REVIEW OF THE CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
Our responsibility is to express a conclusion
on the consolidated interim financial
statements based on our review. NZ SRE
2410 (Revised) requires us to conclude
whether anything has come to our
attention that causes us to believe that the
consolidated interim financial statements,
taken as a whole, are not prepared in all
material respects, in accordance with
New Zealand Equivalent to International
Accounting Standard 34:
Interim
Financial Reporting.
A review of consolidated interim financial
statements in accordance with NZ SRE
2410 (Revised) is a limited assurance
engagement. We perform procedures,
consisting of making enquiries, primarily
of persons responsible for financial and
accounting matters, and applying analytical
and other review procedures. The procedures
performed in a review are substantially less
than those performed in an audit conducted
in accordance with International Standards
on Auditing (New Zealand) and consequently
do not enable us to obtain assurance that
we would become aware of all significant
matters that might be identified in an
audit. Accordingly, we do not express an
audit opinion on those consolidated interim
financial statements.
The Auditor-General is the auditor of the
Group. The Auditor-General has appointed
Lloyd Bunyan, using the staff and resources
of Ernst & Young, to carry out the audit of the
Group on his behalf. As a result, Ernst & Young
is required to comply with the independence
requirements of the Auditor-General, which
incorporate the independence requirements
of the External Reporting Board.
The engagement partner on the review
resulting in this independent auditor’s review
report is Lloyd Bunyan.
TO THE SHAREHOLDERS OF
MERCURY NZ LIMITED
REPORT ON THE REVIEW OF
THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
CONCLUSION
We have reviewed the consolidated interim
financial statements of Mercury NZ Limited
(“the Company”) and its subsidiaries
and other controlled entities (collectively
referred to as “the Group”) which comprise
the consolidated balance sheet as at
31 December 2020, and the consolidated
income statement, consolidated statement
of comprehensive income, consolidated
statement of changes in equity and
consolidated cash flow statement for the six
months ended on that date, and a summary
of significant accounting policies and other
explanatory information. Based on our review,
nothing has come to our attention that
causes us to believe that the accompanying
consolidated interim financial statements of
the Group do not present fairly, in all material
respects, the financial position of the Group
as at 31 December 2020, and its financial
performance and its cash flows for the six
months ended on that date, in accordance
with New Zealand Equivalent to International
Accounting Standard 34:
Interim
Financial Reporting.
BASIS FOR CONCLUSION
We conducted our review in accordance
with NZ SRE 2410 (Revised)
Review of
Financial Statements Performed by the
Independent Auditor of the Entity. Our
responsibilities are further described in the
Auditor’s Responsibilities for the Review of the
Consolidated Interim Financial Statements
section of our report. We are independent
of the Group in accordance with the relevant
ethical requirements in New Zealand
relating to the audit of the annual financial
statements, and we have fulfilled our other
ethical responsibilities in accordance with
these ethical requirements.
Ernst & Young has provided remuneration
market data and taxation related services,
to the Group. Partners and employees of
our firm may deal with the Group on normal
terms within the ordinary course of trading
activities of the business of the Group. We
have no other relationship with, or interest in,
the Group.
DIRECTORS' RESPONSIBILITY FOR THE
CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
The Directors of the Company are
responsible, on behalf of Company, for the
preparation and fair presentation of the
consolidated interim financial statements
in accordance with New Zealand Equivalent
to International Accounting Standard 34:
INDEPENDENT REVIEW REPORT.
ERNST & YOUNG
CHARTERED ACCOUNTANTS // AUCKLAND
23 February 2021
6

CONSOLIDATED INCOME STATEMENT.
For the six months ended 31 December 2020
Note
Unaudited
6 Months
31 Dec 2020
$M
Unaudited
6 Months
31 Dec 2019
$M
Audited
12 Months
30 Jun 2020
$M
Total revenue2 944 928 1,768
Total expenses 2 (650)(670)(1, 274)
EBITDAF
1
294 258 494
Depreciation and amortisation (110)(105)(214)
Change in the fair value of financial instruments (36)(22)22
Gain on sale and impairments 41 ––
Net interest expense2 (23)(30)(54)
Profit before tax166 101248
Tax exp e nse(36)(18)(41)
Profit for the period attributable to owners of the
parent130 83 207
Basic and diluted earnings per share (cents)9.66.115.2
1. EBITDAF: Earnings before net interest expense, tax expense, depreciation and amortisation, change in the fair
value of financial instruments, gain on sale and impairments.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME.
For the six months ended 31 December 2020
Unaudited
6 Months
31 Dec 2020
$M
Unaudited
6 Months
31 Dec 2019
$M
Audited
12 Months
30 Jun 2020
$M
Profit for the period13083207
Other comprehensive income
Items that will not be reclassified subsequently
to profit or loss
Movement in asset revaluation reserve – – 285
Movement in cash flow hedge reserve transferred
to balance sheet(15) – 6
Share of movements in associates' and joint ventures’ reserves(4)88
Tax ef fe c t–– (91)
Items that may be reclassified subsequently to profit or loss
Movement in cash flow hedge reserve(42)11
Share of movements in associates' and joint ventures' reserves(2)(14)–
Tax ef fe c t12 ––
Other comprehensive (loss)/income for the period,
net of taxation
(51)(5)209
Total comprehensive income for the period attributable
to owners of the parent
7978416
FINANCIAL STATEMENTS.
The accompanying notes form an integral part of these financial statements.MERCURY INTERIM REPORT 2021 7

CONSOLIDATED BALANCE SHEET.
As at 31 December 2020
Note
Unaudited
31 Dec 2020
$M
Unaudited
31 Dec 2019
$M
Audited
30 Jun 2020
$M
SHAREHOLDERS’ EQUITY
Issued capital 378 378 378
Treasury shares(101) (101)(101)
Reserves3,413 3,2113,462
Total shareholders’ equity3,690 3,488 3,739
ASSETS

Current assets
Cash and cash equivalents918579
Receivables229183244
Contract assets122
Inventories232522
Derivative financial instruments58667126
Total current assets430 362 473
Non-current assets
Property, plant and equipment65,9345,5175,898
Intangible assets778378
Investment and advances to associates7276302328
Advances to joint operations666
Receivables366
Derivative financial instruments56110996
Total non-current assets6,357 6,0236,412
Total assets 6,787 6,385 6,885
Note
Unaudited
31 Dec 2020
$M
Unaudited
31 Dec 2019
$M
Audited
30 Jun 2020
$M
LIABILITIES
Current liabilities
Payables and accruals163153280
Provisions21–
Borrowings8554401446
Derivative financial instruments516656116
Taxation payable292233
Total current liabilities914633875
Non-current liabilities
Payables and accruals71012
Provisions725974
Derivative financial instruments5150219138
Borrowings8794851845
Deferred tax1,1601,1251,202
Total non-current liabilities2,183 2,2642,271
Total liabilities3,097 2,897 3,146
Net assets 3,690 3,488 3,739
For and on behalf of the Board of Directors, who authorised the issue of the Financial Statements
on 23 February 2021.
The accompanying notes form an integral part of these financial statements.
PRUE FLACKS // CHAIR
23 February 2021
KEITH SMITH // DIRECTOR
23 February 2021
8

CONSOLIDATED CASH FLOW STATEMENT.
For the six months ended 31 December 2020

Unaudited
6 Months
31 Dec 2020
$M
Restated
Unaudited
6 Months
31 Dec 2019
$M
Restated
Audited
12 Months
30 Jun 2020
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers9709741,679
Payments to suppliers and employees(7 16)(721)(1,205)
Interest received––1
Interest paid(26)(30)(60)
Taxes paid(65)(50)(77)
Net cash provided by operating activities163173338
CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property, plant and equipment(177)(68)(177)
Acquisition of intangibles(17)(19)(28)
Distributions received and advances repaid from associates
and joint ventures5624
(Lodgement)/return of prudential deposits(34)721
Proceeds from the sale of Hudson Ranch44––
Net cash used in investing activities(128)(78)(180)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans300325375
Repayment of loans(193)(300)(330)
Payment of lease liabilities(2)(2)(4)
Dividends paid(128)(127)(214)
Net cash used in financing activities(23)(104)(173)
Net increase/(decrease) in cash and cash equivalents held12(9)(15)
Cash and cash equivalents at the beginning of the period799494
Cash and cash equivalents at the end of the period918579
Cash balance comprises:
Cash balance at the end of the period918579
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.
For the six months ended 31 December 2020
Issued
capital
$M
Retained
earnings
$M
Asset
revaluation
reserve
$M
Cash
flow
hedge
reserve
$M
Other
reserves
$M
Total
equity
$M
Balance as at 1 July 2019378 3003,077(118)(100)3,537
Movement in cash flow hedge reserve,
net of taxation – – – 1 – 1
Share of movements in associates’
and joint ventures’ reserves – – 9(13)(2)(6)
Other comprehensive income/(loss) – – 9(12)(2)(5)
Net profit for the period – 83 – – – 83
Total comprehensive income/(loss)
for the period – 839(12)(2)78
Dividend – (127) – – – (127)
Balance as at 31 December 2019378 2563,086(130)(102)3,488
Balance as at 1 January 2020 378 256 3,086 (130) (102) 3,488
Movement in asset revaluation reserve,
net of taxation – – 205 – – 205
Movement in cash flow hedge reserve,
net of taxation – – – (5) – (5)
Share of movements in associates'
and joint ventures' reserves – (1) (10)131214
Other comprehensive income/(loss) – (1)195812214
Net profit for the period – 124 – – – 124
Total comprehensive income
for the period – 123 195812338
Dividend – (87) – – – (87)
Balance as at 30 June 2020378 292 3,281 (122) (90) 3,739
Balance as at 1 July 2020 378 292 3,281 (122) (90) 3,739
Fair value revaluation of generation
assets, net of taxation – 8(8) – – –
Movement in cash flow hedge reserve,
net of taxation – – – (45) – (45)
Share of movements in associates'
and joint ventures' reserves – – – 2(8)(6)
Other comprehensive income/(loss) – 8 (8) (43) (8) (51)
Net profit for the period – 130 – – – 130
Total comprehensive income/(loss)
for the period – 138 (8) (43) (8) 79
Dividend – (128) – – – (128)
Balance as at 31 December 2020 378 302 3,273 (165) (98) 3,690
The accompanying notes form an integral part of these financial statements.MERCURY INTERIM REPORT 2021 9

TYPES OF PRODUCTS AND SERVICES
Generation/Wholesale
The generation/wholesale market segment encompasses activity associated with the electricity
production, electricity trading, generation development activities and the Group’s share of associates
earnings. It also includes revenue from the sale of electricity to both commercial & industrial customers
and the retail.
Retail
The retail segment encompasses activity associated with sale of energy, related services and products,
to mass market customers in New Zealand.
Other Segments
Represents corporate support services which are not directly attributable to the generation/wholesale or
retail segments.
Inter-segment
Transactions between segments represent transfer charges by generation/wholesale to retail for the
purchase of electricity.
SEGMENT RESULTS
Six months ended 31 December 2019
(Unaudited)
Generation/
Wholesale
$M
Retail
$M
Other
Segments
$M
Inter–
segment
$M
Total
$M
Sales - Electricity generation 398 – – – 398
Sales to customers and derivatives 283 398 – (162) 519
Earnings of associates 1 – 2 – 3
Other revenue 5 3 – – 8
Total revenue 687 401 2 (162) 928
Energy costs (325) (166) – 162 (329)
Line charges (38) (167) – – (205)
Other direct cost of sales, excluding
third party metering
(13) (5) – – (18)
Direct costs of other revenue – (1) – – (1)
Third party metering (1) (22) – – (23)
Employee compensation and benefits (18) (16) (7) – (41)
Maintenance expenses (19) (3) – – (22)
Other expenses (16) (12) (3) – (31)
Allocation of corporate overheads (5) (5) 10 – –
Total expenses (435) (397) – 162 (670)
Segment EBITDAF25242–258
Interest expense (2)– (27)– (29)
Lease interest expense–– (2)– (2)
Interest income–––––
Interest capitalised to capital work in
progress
1 ––– 1
Net interest expense (1)– (29)– (30)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2020
NOTE 1. ACCOUNTING POLICIES
(1) REPORTING ENTITY
Mercury NZ Limited (“the Company”) is incorporated in New Zealand, registered under the Companies
Act 1993, an FMC reporting entity under the Financial Markets Conduct Act 2013, and is listed on the
NZX Main Board and with foreign exempt listed status on the ASX.
The consolidated interim financial statements (“Group financial statements”) are for Mercury
NZ Limited Group (“the Group”). The Group financial statements comprise the Company and its
subsidiaries, including its investments in associates and interests in joint arrangements.
The majority shareholder of Mercury NZ Limited is Her Majesty the Queen in Right of New Zealand
(“the Government”), providing it with significant potential influence over the Group. The liabilities of
the Group are not guaranteed in any way by the Government or by any other shareholder.
(2) BASIS OF PREPARATION
The Group financial statements have been prepared in accordance with the New Zealand equivalent
to International Accounting Standard 34 - Interim Financial Reporting (“NZ IAS 34”). In complying
with NZ IAS 34, these statements comply with International Accounting Standard 34 - Interim
Financial Reporting.
These Group financial statements, including the accounting policies adopted, do not include all the
information and disclosures required in the annual financial statements. The Group financial statements
have been prepared using the same accounting policies as, and should be read in conjunction with, the
Group’s annual financial statements for the year ended 30 June 2020.
The energy business operates in an environment that is dependent on weather as one of the key drivers
of supply and demand. Fluctuations in seasonal weather patterns, particularly over the short-term, can
have a positive or negative effect on financial performance. It is not possible to consistently predict this
seasonality and some variability is common.
The preparation of financial statements requires judgements and estimates that impact the application
of policies and the reported amounts of assets and liabilities, income and expenses. Actual results may
differ from these estimates.
COVID-19 has had no material impact on the operations or financial performance of the Group.
NOTE 2. SEGMENT REPORTING
IDENTIFICATION OF REPORTABLE SEGMENTS
The operating segments are identified by management based on the nature of the products and
services provided. Discrete financial information about each of these operating segments is reported
to the Chief Executive, being the chief operating decision-maker, on a monthly basis, who assesses
the performance of the operating segments on a measure of EBITDAF. Segment EBITDAF represents
earnings before net interest expense, tax expense, depreciation and amortisation, change in the fair
value of financial instruments, gain on sale and impairments by each segment inclusive of an allocation
of central operating revenue and costs. Operating segments are aggregated into reportable segments
only if they share similar economic characteristics.
At the end of the prior year, the company’s operating segments were changed to better reflect how
the business is managed and operating decisions are made. Accordingly, the reported segments are
(i) Generation/Wholesale, (ii) Retail and (iii) Other segments. All comparative information has been
restated accordingly.
10

Six months ended 31 December 2020
(Unaudited)
Generation/
Wholesale
$M
Retail
$M
Other
Segments
$M
Inter–
segment
$M
Total
$M
Sales - Electricity generation 426 – – – 426
Sales to customers and derivatives 275 372 – (151) 496
Earnings of associates 8 – – – 8
Other revenue 10 4 – – 14
Total revenue 719 376 – (151) 944
Energy costs (332) (154) – 151 (335)
Line charges (40) (144) – – (184)
Other direct cost of sales, excluding
third party metering
(14) (5) – – (19)
Direct costs of other revenue – (2) – – (2)
Third party metering (2) (21) – – (23)
Employee compensation and benefits (17) (15) (7) – (39)
Maintenance expenses (13) (3) – – (16)
Other expenses (18) (11) (3) – (32)
Allocation of corporate overheads (5) (5) 10 – –
Total expenses (441) (360) – 151 (650)
Segment EBITDAF27816 – – 294
Interest expense (7) – (19) – (26)
Lease interest expense – – (2) – (2)
Interest income – – – – –
Interest capitalised to capital work in
progress
5 – – – 5
Net interest expense (2) – (21) – (23)
Twelve months ended 30 June 2020
(Audited)
Generation/
Wholesale
$M
Retail
$M
Other
Segments
$M
Inter–
segment
$M
Total
$M
Sales - Electricity generation 706 – – – 706
Sales to customers and derivatives 584 746 – (302) 1,028
Earnings of associates 18 – – – 18
Other revenue 10 6 – – 16
Total revenue 1,318 752 – (302) 1,768
Energy costs (604) (308) – 302 (610)
Line charges (77) (308) – – (385)
Other direct cost of sales, excluding
third party metering
(32) (9) – – (41)
Direct costs of other revenue – (2) – – (2)
Third party metering (3) (43) – – (46)
Employee compensation and benefits (35) (32) (15) – (82)
Maintenance expenses (34) (6) – – (40)
Other expenses (36) (25) (7) – (68)
Allocation of corporate overheads (11) (11) 22 – –
Total expenses (832) ( 74 4) – 302 (1, 274)
Segment EBITDAF4868 – – 494
Interest expense (8) – (48) – (56)
Lease interest expense – – (3) – (3)
Interest income – – 1 – 1
Interest capitalised to capital work in
progress
4 – – – 4
Net interest expense (4) – (50) – (54)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2020
MERCURY INTERIM REPORT 2021 11

NOTE 4. SHARE CAPITAL AND DISTRIBUTION
The share capital of the Company is represented by 1,400,012,517 ordinary shares (30 June 2020:
1,400,012,517) issued and fully paid. These shares do not have a par value, have equal voting rights and
share equally in dividends and any surplus on winding up.
Unaudited
31 Dec
2020
Number of
shares (M)
Unaudited
31 Dec
2020

$M
Unaudited
31 Dec
2019
Number of
shares (M)
Unaudited
31 Dec
2019

$M
Audited
30 Jun
2020
Number of
shares (M)
Audited
30 Jun
2020

$M
Treasury shares
Balance at the
beginning and end
of the period 39 1013910139101
Cents per
share
Unaudited
6 Months
31 Dec
2020 $M
Unaudited
6 Months
31 Dec
2019 $M
Audited
12 Months
30 Jun
2020 $M
Dividends declared and paid
Final dividend for 20199.3–127127
Interim dividend for 20206.4 – – 87
Final dividend for 20209.4128 – –
128127214
NOTE 5. FINANCIAL INSTRUMENTS
The Group’s overall risk management programme seeks to proactively hedge risks arising from the
unpredictability of financial markets with the aim of protecting shareholder value. Exposure to price,
credit, foreign exchange, liquidity and interest rate risks arise in the normal course of the Group’s
business. The Group’s principal financial instruments comprise cash and cash equivalents, trade
receivables and accruals (not prepayments), advances, payables and accruals, borrowings and derivative
financial instruments. Further information on the identified risks can be found in Note 13 of the Group’s
annual financial statements for the year ended 30 June 2020.
Fair Values
The carrying amount of financial assets and liabilities recorded in the financial statements
approximates their fair values except for: (i) the Fixed Rate Bonds, the Floating Rate Bonds and the
US Private Placement, the fair values for which have been calculated at $325 million (30 June 2020:
$28 million), $300 million (30 June 2020: $298 million) and $116 million (30 June 2020: $326
million) respectively; and (ii) the Capital Bonds, the fair value for which has been calculated at
NOTE 3. NON STATUTORY MEASURE – UNDERLYING EARNINGS
Underlying earnings after tax is presented to enable stakeholders to make an assessment and
comparison of earnings after removing one-off and/or infrequently occurring events (exceeding
$10 million of profit before tax, which represents material items), impairments, any change in the fair
value of derivative financial instruments and gain on sale, all net of tax expense. Changes in the fair
value of financial instruments are excluded from underlying earnings in order to align their impact when
they mature with the underlying hedged items.
Unaudited
6 Months
31 Dec 2020
$M
Unaudited
6 Months
31 Dec 2019
$M
Audited
12 Months
30 Jun 2020
$M
PROFIT FOR THE PERIOD130 83 207
Change in the fair value of financial instruments36 22 (22)
Hudson Ranch sale(44)––
Tilt bargain purchase gain –– (18)
Adjustments before tax expense(8)22(40)
Tax exp e nse(7)(15)(3)
Adjustments after tax expense(15)7(43)
Underlying earnings after tax11590164
Tax has been applied on all taxable adjustments at 28%.
During the period the Group sold its interest in its Hudson Ranch 1 Holdings LLC geothermal power
station joint venture in California. The sale resulted in a gain of $41 million and other income of
$3 million. The Group has recognised a $3 million tax expense in relation to this gain.
In the prior year, the Group began accounting for its investment in Tilt Renewables Limited (“Tilt”) as an
investment in an associate. This required a comparison between the cost of the Group’s investment and
the fair value of it’s share of identifiable assets, with the difference of $18 million being recognised as
a bargain purchase gain on transition. Prior to moving to equity accounting, a $10 million deferred tax
expense was recognised in prior periods in relation to unrealised fair value movements of the Group’s
investment in Tilt. This tax expense was reversed during the prior year.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2020
12

Unaudited
6 Months
31 Dec 2020
$M
Unaudited
6 Months
31 Dec 2019
$M
Audited
12 Months
30 Jun 2020
$M
RECONCILIATION OF LEVEL 3 FAIR VALUE
MOVEMENTS
Opening balance (29) (59) (59)
New contracts (10) (4) (6)
Matured contracts5 9 24
Gains and losses
Through the income statement (9) (13)–
Through other comprehensive income (61) 10 12
Closing balance(104)(57)(29)
Deferred ‘inception’ gains/(losses)
There is an assumption that when derivative contracts are entered into on an arm’s length basis, fair
value at inception would be zero. The contract price of non exchange traded electricity derivative
contracts are agreed on a bilateral basis, the pricing for which may differ from the prevailing derived
market price curve for a variety of reasons. In these circumstances an inception adjustment is made to
bring the initial fair value of the contract to zero at inception. This inception adjustment is amortised
over the life of the contract by adjusting the future price path used to determine the fair value of the
derivatives by a constant amount to return the initial fair value to zero.
The table below details the movements in inception value gains/(losses) included in the fair value of
derivative financial assets and liabilities:
Unaudited
6 Months
31 Dec 2020
$M
Unaudited
6 Months
31 Dec 2019
$M
Audited
12 Months
30 Jun 2020
$M
Opening deferred inception (losses)(7)(12)(12)
Deferred inception gains on new hedges8710
Deferred inception (losses) realised during the period–(1)(5)
Closing inception gains/(losses)1(6)(7)
$317 million (30 June 2020: $314 million). Fair values are based on quoted market prices and inputs
for each bond issue. Refer to Note 8 for carrying amounts of borrowings.
Valuation techniques
The Group uses various methods in estimating the fair value of a financial instrument. The methods
comprise:
• Level 1 - the fair value is calculated using quoted prices in active markets;
• Level 2 - the fair value is estimated using inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
• Level 3 – the fair value is estimated using inputs that are not based on observable market data.
As at 31 December 2020 all of the Group’s financial instruments carried at fair value were categorised
as level 2, except for electricity price derivatives. Electricity price derivatives assets of $43 million were
categorised as level 1 (30 June 2020: $54 million) and $71 million were categorised as level 3
(30 June 2020: $70 million). Further information on the identified risks can be found in Note 13 of
the Group’s annual financial statements for the year ended 30 June 2020. Electricity price derivative
liabilities of $30 million were categorised as level 1 (30 June 2020: $12 million) and $176 million were
categorised as level 3 (30 June 2020: $99 million).
Financial instruments that use a valuation technique with only observable market inputs, or
unobservable inputs that are not significant to the overall valuation, include interest rate derivatives and
foreign exchange rate derivatives not traded on a recognised exchange.
Financial instruments that use a valuation technique which includes non-market observable data
include non-exchange traded electricity contracts which are valued using a discounted cash flow
methodology using a combination of ASX market prices for the first three years, combined with
management’s internal view of forward prices for the remainder of the contract’s term. Management’s
internal view of forward prices incorporates a minimum price of $63/MWh and a maximum price of
$147/MWh (30 June 2020: a minimum price of $70/MWh and a maximum price of $115/MWh) over
the period in question (in real terms) and is determined by a demand supply based fundamental
model which takes account of current hydrological conditions, future inflows, an assessment
of thermal fuel costs, anticipated demand and supply conditions and future committed
generation capacity.
Where the fair value of a derivative is calculated as the present value of the estimated future cash
flows of the instrument there are two key inputs being used; the forward price curve and the discount
rate. Where the derivative is an option, then the volatility of the forward price is another key variable.
The selection of the inputs requires significant judgement, and therefore there is a range of reasonably
possible assumptions in respect of these inputs that could be used in estimating the fair values of these
derivatives. Maximum use is made of observable market data when selecting inputs and developing
assumptions for the valuation technique.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2020
MERCURY INTERIM REPORT 2021 13

AssociatesJoint ventures
Unaudited
6 Months
31 Dec
2020
$M
Unaudited
6 Months
31 Dec
2019
$M
Audited
12 Months
30 Jun
2020
$M
Unaudited
6 Months
31 Dec
2020
$M
Unaudited
6 Months
31 Dec
2019
$M
Audited
12 Months
30 Jun
2020
$M
Balance at the beginning
of the period3287676–––
Additions during the
period2230230 – – –
Share of earnings8318 – – –
Share of movement in
other comprehensive
income
(6) (6)8 – – –
Distributions received
during the period
(56) (1) (4) – – –
Balance at the end of the
period276302328 – – –
NOTE 6. PROPERTY, PLANT AND EQUIPMENT
Unaudited
6 Months
31 Dec 2020
$M
Unaudited
6 Months
31 Dec 2019
$M
Audited
12 Months
30 Jun 2020
$M
Opening net book value5,8985,5285,528
Additions, including transfers from capital work in
progress13181260
Net revaluation movement––296
Depreciation charge for the period(95)(92)(186)
Closing net book value5,9345,5175,898
NOTE 7. INVESTMENT AND ADVANCES TO ASSOCIATES AND JOINT
ARRANGEMENTS (JOINT VENTURES AND JOINT OPERATIONS)
Investments include:
Interest held
Name of entity
Principal
activityType
Unaudited
31 Dec
2020
Unaudited
31 Dec
2019
Audited
30 Jun
2020Country
TPC Holdings
Limited
Investment
holdingAssociate25.00%25.00%25.00%New Zealand
Tilt Renewables
Limited
Electricity
generation and
developmentAssociate19.92%19.97%19.96%New Zealand
Rotokawa
Steamfield
operation
Joint
Operation64.80%64.80%64.80%New Zealand
Ngā Awa Purūa
Electricity
generation
Joint
Operation65.00%65.00%65.00%New Zealand
EnergySource LLC
Investment
holding
Joint
Venture20.86%20.86%20.86%United States
EnergySource
Minerals LLC
Mineral
extraction
Joint
Venture20.84%20.84%20.84%United States
Hudson Ranch I
Holdings LLC
Electricity
generation
Joint
Venture0.00%75.00%75.00%United States
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2020
14

The Company has a $200 million Commercial Paper programme which is fully backed by committed
and undrawn bank facilities. Notes issued under the programme are short-term money market
instruments, unsecured and unsubordinated and targeted at professional investors. The programme is
rated A2 by Standard & Poor’s.
The Group has entered into a Master Trust Deed and Supplementary Trust Deeds for all its NZD
denominated Senior Fixed and Floating Rate Bonds with the New Zealand Guardian Trust Group
Limited, acting as trustee for the holders. The Group has agreed, subject to certain exceptions, not to
create or permit to exist a security interest over or affecting its assets to secure indebtedness, and to
maintain certain financial covenants. There has been no breach of the terms of these deeds.
The Group has entered into a negative pledge deed in favour of its bank financiers in which the Group
has agreed, subject to certain exceptions, not to create or permit to exist a security interest over or
affecting its assets to secure its indebtedness, and to maintain certain financial ratios in relation to
the Group. These undertakings and covenants also apply to the US Private Placement terms and
conditions. There has been no breach of the terms of this deed or the terms and conditions of the
US Private Placement.
The Group has entered into various lease contracts for the right to use land & buildings, motor vehicles
and office equipment and is also deemed to be a lessee of transmission equipment.
NOTE 9. RELATED PARTY TRANSACTIONS
Majority shareholder
All transactions with the Crown and other entities wholly or partly owned by the Crown are on normal
commercial terms. Transactions cover a variety of services including selling and trading energy, postal,
travel and tax.
Transactions with related parties
Mercury NZ Limited has investments in subsidiaries, associates and joint arrangements, all of which
are considered related parties.
As these are consolidated financial statements, transactions between related parties within the Group
have been eliminated. Consequently, only those transactions between entities which have some owners
external to the Group have been reported below:
Transaction value
Unaudited
6 Months
31 Dec 2020
$M
Unaudited
6 Months
31 Dec 2019
$M
Audited
12 Months
30 Jun 2020
$M
Associates
• Management fees and service agreements received101016
• Energy contract settlements received7812
Joint operations
• Management fees and service agreements received7616
• Energy contract settlements received1046
NOTE 8. BORROWINGS
Borrowing
Currency
Denomination


Maturity


Coupon
Unaudited
6 Months
31 Dec
2020
$M
Unaudited
6 Months
31 Dec
2019
$M
Audited
12 Months
30 Jun
2020
$M
Bank facilitiesNZDVariousFloating 45 25 75
Commercial paper
programmeNZD< 3 monthsFloating 200 199 200
Wholesale bondsNZDFeb-20208.21% – 31 –
USPP - US$125mUSDDec-20204.25% – 163 163
Wholesale / Credit
wrapperNZDSep-2021Floating 300 300 300
USPP - US$30mUSDDec-20224.35% 39 39 39
Wholesale bondsNZDMar-20235.79% 26 26 26
USPP - US$45mUSDDec-20254.60% 59 59 59
Green retail bondsNZDSept-20271.56% 201 – –
Green wholesale bondsNZDOct-20301.92% 100 – –
Capital BondsNZDJul-20493.60% 302 302 302
Lease liabilitiesNZD 66 69 68
Deferred financing costs(6)(4) (4)
Fair value adjustments 16 43 63
Carrying value of loans 1,348 1,2521,291
Current 554 401 446
Non-current794 851 845
1,348 1,2521,291
On 14 September 2020 Mercury issued $200 million of new unsecured, unsubordinated fixed rate
green bonds (MCY030). The MCY030 bonds are due to mature in September 2027 and have a
fixed interest rate of 1.56%. On 9 October 2020 Mercury issued a further $100 million of unsecured,
unsubordinated fixed rate green bonds (green wholesale bonds). The green wholesale bonds are due to
mature in October 2030 and have a fixed interest rate of 1.92%. Mercury’s USD 125 million tranche of
USPP Notes matured in December 2020, repaid from the proceeds of the new bond issues.
The Group has $500 million of committed and unsecured bank loan facilities as at 31 December 2020
(30 June 2020: $800 million). $200 million of bridge facilities were terminated on issuance of the
MCY030 bonds in September 2020. The company cancelled another $100 million of facilities during
the reporting period. Of the loan facilities of $500 million, $100 million matures in August 2022,
$100 million matures in December 2022 (extended during the period from an initial mature date of
June 2021), $50 million matures in March 2024 and rolling bank facilities of $250 million currently
matures in June 2022. The Group’s $300m wholesale/credit wrapped bond is due to mature in
September 2021 and it is considering potential refinancing options.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2020
MERCURY INTERIM REPORT 2021 15

NOTE 10. COMMITMENTS AND CONTINGENCIES
Commitments
Unaudited
6 Months
31 Dec 2020
$M
Unaudited
6 Months
31 Dec 2019
$M
Audited
12 Months
30 Jun 2020
$M
Capital299489391
Capital commitments include purchases of both property, plant and equipment (PP&E) and intangibles.
PP&E commitments include contracts for construction of wind generation assets at Turitea and
refurbishment of hydro generation assets at Karāpiro. Intangible commitments are contracts to purchase
New Zealand emissions trading scheme (NZ ETS) units. In the event the NZ ETS is terminated the
existing forward purchase agreements, which cover the eight year period from the end of the reporting
period, will also terminate.
Contingencies
The Group holds land and has interests in fresh water and geothermal resources that are subject to
claims that have been brought against the Government.
The Pouākani Claims Trust No 2 and a group of kaumatua have recently filed a claim in the Māori
Land Court seeking a declaration that certain parts of the Waikato riverbed are Māori customary land,
including the riverbed beneath the Whakamaru, Maraetai I and II and Waipapa dams. Mercury holds
the fee simple or beneficial title to that land and has received advice that the applicants are unlikely to
succeed with a claim to customary title in those parts of the Waikato riverbed beneath the Whakamaru,
Maraetai I and II and Waipapa dams.
The Group holds land at Maraetai, Waikato, that is subject to a remedies hearing brought against the
Government in the Waitangi Tribunal pursuant to the Treaty of Waitangi Act 1975. The remedies hearing
relates to an application seeking binding recommendations for the resumption of land at Pouākani,
including the Group’s land at Maraetai. The Group has received advice that the Tribunal’s decision on the
matter is unlikely to impair the Group’s ability to operate its hydro assets.
A separate claim by the New Zealand Māori Council relating to fresh water and geothermal resources was
lodged in 2012 with the Waitangi Tribunal. The Tribunal concluded that Māori have residual (but as yet
undefined) proprietary rights in fresh water and geothermal resources and it will be for the Government
to determine how any such rights and interests may best be addressed. The impact of this claim on the
Group’s operations is unknown at this time.
From time to time the Group will issue letters of credit and guarantees to various suppliers in the normal
course of business. However, there is no expectation that any outflow of resource relating to these
letters of credit or guarantees will be required as a consequence.
The Group has no other material contingent assets or liabilities.
NOTE 11. SUBSEQUENT EVENTS
The Board of Directors has approved an interim dividend of 6.8 cents per share to be paid on 1 April 2021.
The Climate Change Commission released its 2021 draft advice for consultation on 31 January 2021.
The report is likely to prove significant for the energy industry and is currently being reviewed by the Group.
There are no other material events subsequent to balance date that would affect the fair presentation of
these financial statements.
Energy contracts, management and other services are made on normal commercial terms.
An advance to TPC Holdings Limited of $4 million (2020: $4 million) is interest free and repayable on
demand subject to certain conditions being met.
The long-term advance to our Rotokawa Joint Venture partner of $6 million (2020: $6 million) carries
a floating interest rate. Repayments under the advance are linked to the level of receipts under the
geothermal energy supply agreement. There is no fixed repayment date, the agreement will terminate
on receipt of any outstanding balances.
No related party debts have been written off, forgiven, or any impairment charge booked.
Transaction value
Unaudited
6 Months
31 Dec 2020
$000
Unaudited
6 Months
31 Dec 2019
$000
Audited
12 Months
30 Jun 2020
$000
Key management personnel compensation
(paid and payable) comprised:
• Directors’ fees493466948
• Benefits for the Chief Executive and Senior
Management:
Salary and other short-term benefits 3,2413,6837,086
Termination benefits – –324
Share-based payments266228377
4,0004,3778,735
The increase in directors' fees between periods is a result of the Board having a full complement for the
current period.
Other transactions with key management personnel
Key management personnel are those people with responsibility and authority for planning, directing
and controlling the activities of the Group. Key management personnel for the Group are considered to
be the Directors and Senior Management.
Directors and employees of the Group deal with Mercury NZ Limited as electricity consumers on normal
terms and conditions, with staff discounts for employees, within the ordinary course of trading activities.
A number of Directors also provide directorship services to other third party entities. A number of these
entities transacted with the Group on normal commercial terms during the reporting period.
A number of key management personnel provide directorship services to subsidiaries and other third
party entities as part of their employment without receiving any additional remuneration, with exception
to the Group’s Chief Executive who is a member of the Board of Directors of Tilt Renewables Limited and
directly receives renumeration for his directorship services. Again, a number of these entities transacted
with the Group, in all circumstances on normal commercial terms during the reporting period.
The Group purchases directors and officers insurance for the benefit of key management personnel in
relation to the services they provide to the Group.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2020
16

Shareholder enquiries
You can view your investment portfolio,
change your address, supply your email,
update your details or payment instructions
online: www.investorcentre.com/nz. You will
need your CSN and FIN numbers to access
this service.
Enquiries may be addressed to the Share
Registrar (see Directory for contact details).
Investor information
Our website at mercury.co.nz is an excellent
source of information about what’s
happening within the company.
Our Investor Centre allows you to view
all regular investor communicatio ns,
information on our latest operating and
financial results, dividend payments,
news and share price history.
Electronic shareholder communication
It is quick and easy to make the change to
receiving your reports electronically. This can
be done either:
Online at www.investorcentre.com/nz by
using your CSN and FIN numbers (when you
log in for the first time). Select 'My Profile' and
'Communication Preferences' to update your
details, or;
By contacting Computershare Investor
Services Limited (see Directory for
contact details).
Board of Directors
Prue Flacks, Chair
Hannah Hamling
Andy Lark
James Miller
Keith Smith
Scott St John
Patrick Strange
Mike Taitoko
Executive Team
Vince Hawksworth,
Chief Executive
Phil Gibson,
General Manager Portfolio
Julia Jack,
Chief Marketing Officer
William Meek,
Chief Financial Officer
Marlene Strawson,
General Manager People &
Performance
General Manager Customer
Vacant as at 23 February 2021
General Manager Generation
Vacant as at 23 February 2021
General Manager Sustainability
Vacant as at 23 February 2021
Company Secretary
Howard Thomas,
General Counsel and Company
Secretary
Investor Relations
& Sustainability Enquiries
Tim Thompson,
Head of Treasury & Investor Relations
Phone: +64 27 517 3470
Email: investor@mercury.co.nz
Registered Office in New Zealand
33 Broadway, Newmarket, Auckland
1023 Mercury NZ Limited
P O Box 90399
Auckland 1142
New Zealand
Registered Office in Australia
c/– TMF Corporate Services
(Australia) Pty Limited
Level 16, 201 Elizabeth Street
Sydney, NSW 2000
Phone: +61 2 8988 5800
Legal Advisors
Chapman Tripp
Level 34
PwC Tower at Commercial Bay
15 Customs Street West
Auckland 1010
PO Box 2206, Auckland 1140
Phone: +64 9 357 9000
Bankers
ANZ Bank
ASB Bank
Bank of New Zealand
China Construction Bank
Mitsubishi UFJ Financial Group
Mizuho Bank
Westpac
Credit Rating (re-affirmed
November 2020)
Long term: BBB+
Outlook: Stable
Share Registrar – New Zealand
Computershare Investor Services
Limited, Level 2, 159 Hurstmere
Road, Takapuna,
Auckland 0622
Private Bag 92119
Auckland 1142, New Zealand
Phone: +64 9 488 8777
Email: enquiry@computershare.co.nz
Web: www.investorcentre.com/nz
Share Registrar – Australia
Computershare Investor Services Pty
Limited Yarra Falls, 452 Johnston
Street, Abbotsford, VIC 3067, GPO
Box 3329, Melbourne, VIC 3001,
Australia
Phone: 1 800 501 366
(within Australia)
Phone: +61 3 9415 4083
(outside Australia)
Email: enquiry@computershare.co.nz
DIRECTORY.INFORMATION FOR
SHAREHOLDERS.
MERCURY INTERIM REPORT 2021 17

---

Distribution Notice







Section 1: Issuer information
Name of issuer Mercury NZ Limited
Financial product name/description Mercury NZ Limited ordinary shares
NZX ticker code MCY
ISIN (If unknown, check on NZX
website)
NZMRPE0001S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 12/03/2021
Ex-Date (one business day before the
Record Date)
11/03/2021
Payment date (and allotment date for
DRP)
01/04/2021
Total monies associated with the
distribution
$92,578,231.10
Source of distribution (for example,
retained earnings)
Income available for distribution
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.09444444
Gross taxable amount $0.09444444
Total cash distribution $0.06800000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01200000
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.02644444
Resident Withholding Tax per
financial product
$0.00472222

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Howard Thomas, Company Secretary
Contact person for this
announcement
Howard Thomas, Company Secretary
Contact phone number +64 9 308 8200
Contact email address Howard.Thomas@Mercury.co.nz
Date of release through MAP

23/02/2021