Meridian Energy Limited 2021 Interim Results

Release






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

m e r i d i a n e n e r g y . c o . n z
Stock Exchange Listings NZX (MEL) ASX (MEZ)
Meridian Energy interim net profit higher, cash earnings
1

lower

24 February 2021
Meridian Energy has reported a 19% increase in net profit for the six months ended 31 December
2020, which includes positive changes in the value of hedge instruments. Excluding these hedge
value movements, Meridian has reported a 9% decrease in its EBITDAF
1
. Customer growth
continued, however lower New Zealand hydro generation and lower market prices in Australia
negatively impacted EBITDAF from last year’s record level.
Chief Executive Neal Barclay says Meridian’s performance partly reflected less than favourable
conditions compared to the prior year. Overall, our generation volumes were down 7% on the prior
period due to lower starting storage and lower inflows into our catchments since October 2020.
Generation volume and price volatility are a feature of New Zealand’s hydro-based renewable
electricity system; however the underlying performance of the business remains strong and we were
particularly pleased that the strength of the Meridian and Powershop brands continued to shine
through.
“Customer numbers across New Zealand and Australia now exceed half a million and have grown 3%
since June 2020. It is pleasing to see continued customer growth, demonstrating that our commitment
to excellent service and support is delivering,” Mr Barclay says.
Meridian announced in January 2021, that it had reached an agreement with its largest customer, Rio
Tinto. Rio Tinto, who operate the Tiwai Point Aluminium Smelter in Southland will extend the planned
closure period from August 2021 to December 2024.
“The additional four years of smelter operation will be invaluable to the Southland region as it allows
time to create new business opportunities and new jobs for Southlanders. Meridian is committed to
working with a range of parties who are progressing some exciting new opportunities in Southland,
from mega scale data centres to hydrogen production at scale. The availability of large amounts of
renewable energy in Southland is a point of difference for the region and our country,” says Barclay.
“As a 100% renewable energy generator who is committed to protecting our environment, we’re
supportive of the Climate Change Commission’s advice. We believe that the electricity sector is a
huge part of the solution to decarbonise our economy and support New Zealand businesses and

1

EBITDAF is a commonly used non-GAAP measure reflecting earnings before interest, tax, depreciation,
changes in fair value of hedges and other significant items (see page 2 for a reconciliation).

m e r i d i a n e n e r g y . c o . n z
PG 2

individuals to make the changes they need. Our decision to build the new Harapaki wind farm is our
next step towards that solution.
“We know that we will play a part in supporting our customers, from large businesses who need to
invest in technology and transition from fossil fuels, to every day New Zealanders. Everyone in our
country has the opportunity to prosper and thrive as we lock in net zero by 2050,” says Barclay.

Income statement
Six months ended 31 December
2020
2019
$M
New Zealand energy margin
540
598
Australia energy margin
59
65
Other revenue
12
13
Energy transmission expense
(44)
(68)
Electricity metering expenses
(19)
(17)
Employee and other operating expenses
(126)
(126)
EBITDAF
422
465
Depreciation and amortisation
(153)
(157)
Impairment of assets
-
-
Gain/(loss) on sale of assets
-
-
Net change in fair value of energy hedges
63
(6)
Net finance costs
(42)
(43)
Net change in fair value of treasury instruments
25
6
Net profit before tax
315
265
Income tax expense
(88)
(74)
Net profit after tax
227
191
Underlying net profit after tax
Six months ended 31 December
2020
2019
$M
Net profit after tax
227
191
Underlying adjustments
Hedging instruments
Net change in fair value of energy hedges
(63)
6
Net change in fair value of treasury instruments
(25)
(6)
Premiums paid on electricity options net of interest
(10)
(10)
Assets
(Gain)/loss on sale of assets
-
-
Impairment of assets
-
-
Total adjustments before tax
(98)
(10)
Taxation
Tax effect of above adjustments
27
3
Underlying net profit after tax
156
184


ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

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

For media queries, please contact:

Polly Atkins
External Communications Manager
021 174 1715

---

Condensed
Interim Financial
Statements.

As at and for
the six months to
31 December 2020.

3Income Statement
The income earned and operating
expenditure incurred by the Meridian
Group during the six months.
3Comprehensive Income Statement
Items of income and operating
expense that are not recognised
in the income statement and
hence taken to reserves in equity.
4Balance Sheet
A summary of the Meridian Group
assets and liabilities at the end of
the six months.
5Changes in Equity
Components that make up the
capital and reserves of the Meridian
Group and the changes of each
component during the six months.
6Cash Flows
Cash generated and used by
the Meridian Group.
7About this report
8Significant matters in the six months
10A. Financial performance
A1. Segment performance
A2. Income
A3. Expenses
A4. Taxation
14B. Assets used to generate and sell electricity
B1. Property, plant and equipment
B2. Intangible assets
15C. Managing funding
C1. Capital management
C2. Earnings per share
C3. Dividends
C4. Borrowings
C5. Green financing
21D. Financial instruments
D1. Financial instruments
25E. Other
E1. Group structure
E2. Contingent assets and liabilities
E3. Subsequent events
E4. Changes in financial
reporting standards
26Review report
Independent auditor’s review report
Notes to the Condensed Interim Financial Statements Condensed Interim Financial Statements
2
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited

Income Statement
For the six months to 31 December 2020
UnauditedUnaudited
Note
2020
$M
2019
$M
Operating revenueA2 1,869 1,780
Operating expensesA3(1,447) (1,315)
Earnings before interest, tax, depreciation,
amortisation, changes in fair value of hedges
and other significant items (EBITDAF)
422 465
Depreciation and amortisationB1, B2(153) (157)
Net change in fair value of energy hedgesD1 63 (6)
Operating profit 332 302
Finance costsA3(42) (43)
Net change in fair value of treasury instrumentsD1 25 6
Net profit before tax 315 265
Income tax expense A4(88) ( 74)
Net profit after tax attributed to the
shareholders of the parent company
227 191
Earnings per share (EPS) attributed to
ordinary equity holders of the parent company
Cents Cents
Basic and diluted earnings per shareC28.97. 5
The notes to the condensed interim financial statements form an integral part of these financial statements.
Comprehensive Income Statement
For the six months to 31 December 2020
UnauditedUnaudited
2020
$M
2019
$M
Net profit after tax 227 191
Other comprehensive income
Items that may be reclassified to profit or loss:
Net (loss)/gain on cash flow hedges (6)3
Income tax on the above items2(2)
Other comprehensive income for the period, net of tax(4)1
Total comprehensive income for the period, net of tax
attributed to shareholders of the parent company
223 192
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
3

The notes to the condensed interim financial statements form an integral part of these financial statements.
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
4
Balance Sheet
As at 31 December 2020
UnauditedUnauditedAudited
Note
31 Dec 2020
$M
31 Dec 2019
$M
30 Jun 2020
$M
Current assets
Cash and cash equivalents 122 55 176
Trade receivables 303 265 323
Customer contract assets 25 23 24
Financial instrumentsD1 151 157 100
Other assets 52 39 42
Total current assets 653 539 665
Non-current assets
Property, plant and equipmentB1 8,466 8,776 8,594
Intangible assetsB2 76 58 65
Deferred tax 34 36 34
Financial instrumentsD1 155 181 265
Total non-current assets 8,731 9,051 8,958
Total assets 9,38 4 9,59 0 9,623
UnauditedUnauditedAudited
Note
31 Dec 2020
$M
31 Dec 2019
$M
30 Jun 2020
$M
Current liabilities
Payables and accruals 332 280 364
Employee entitlements 19 11 24
Customer contract liabilities 21 18 23
Current portion of term borrowingsC4 271 183 88
Current portion of lease liabilities C4 7 7 7
Financial instrumentsD1 57 34 63
Current tax payable 29 50 79
Total current liabilities 736 583 648
Non-current liabilities
Term borrowingsC4 1,408 1 ,374 1,600
Deferred tax 1,852 1,94 4 1,850
Provisions 18 12 17
Lease Liabilities C4 91 99 97
Financial instrumentsD1 214 212 279
Term payables 46 54 49
Total non-current liabilities 3,629 3,695 3,892
Total liabilities 4,365 4,278 4,540
Net assets 5,019 5,312 5,083
Shareholders’ equity
Share capital 1,598 1,599 1,598
Reserves 3,421 3,713 3,485
Total shareholders’ equity 5,019 5,312 5,083
For and on behalf of the Board of Directors who authorised the issue of the condensed interim
financial statements on 23 February 2021.
Mark Verbiest
Board Chair
Julia Hoare
Chair Audit & Risk Committee

The notes to the condensed interim financial statements form an integral part of these financial statements.
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
5
Changes in Equity
For the six months to 31 December 2020
$M
AuditedNote
Share
capital
Share option
reserve
Revaluation
reserve
Foreign
currency
translation
reserve
Cash flow
hedge
reserve
Retained
earnings
Shareholders
equity
Balance at 1 July 2019 1,599 1 5,068 (37) (3) (1,171) 5,457
Net profit for the year – – – – – 176 176
Other comprehensive income
Asset revaluation – – (22) – – – (22)
Net gain on cash flow hedges – – – – 2 – 2
Exchange differences from translation of foreign operations – – – 11 – – 11
Income tax relating to other comprehensive income – – 7 – (1) – 6
Total other comprehensive income, net of tax – – (15) 11 1 – (3)
Total comprehensive income for the year, net of tax – – (15) 11 1 176 173
Share-based transactions(1) – – – – – (1)
Dividends paid – – – – – (546) (546)
Balance at 30 June 2020 and 1 July 2020 1,598 1 5,053 (26) (2) (1,541) 5,083
Unaudited
Net profit for the period – – – – – 227 227
Other comprehensive income
Net (loss) on cash flow hedges – – – – (6) – (6)
Income tax relating to other comprehensive income – – – – 2 – 2
Total other comprehensive income, net of tax – – – – (4) – (4)
Total comprehensive income for the year, net of tax – – – – (4) 227 223
Dividends paidC3 – – – – – (287) (287)
Balance at 31 December 2020 1,598 1 5,053 (26) (6) (1,601) 5,019
Unaudited
Balance at 1 July 2019 1,599 1 5,068 (37) (3) (1,171) 5,457
Net profit for the period – – – – – 191 191
Other comprehensive income
Net gain on cash flow hedges – – – – 3 – 3
Income tax relating to other comprehensive income – – – – (2) – (2)
Total other comprehensive income, net of tax – – – – 1 – 1
Total comprehensive income for the period, net of tax – – – – 1 191 192
Dividends paidC3 – – – – – (337) (337)
Balance at 31 December 2019 1,599 1 5,068 (37) (2) (1,317) 5,312

Cash Flows
For the six months to 31 December 2020
UnauditedUnaudited
Note
2020
$M
2019
$M
Operating activities
Receipts from customers 1,885 1,803
Payments to suppliers and employees(1,523) (1,372)
Interest paid(41) (41)
Income tax paid(134) (124)
Operating cash flows 187 266
Investing activities
Purchase of property, plant and equipment(22) (23)
Purchase of intangible assets(20) (11)
Investing cash flows(42) (34)
Financing activities
Term borrowings drawn 97 141
Term borrowings repaid(5) (55)
Lease Liabilities paid(4) (4)
Dividends C3(287) (337)
Financing cash flows(199) (255)
Net decrease in cash and cash equivalents(54) (23)
Cash and cash equivalents at beginning of the six months 176 78
Cash and cash equivalents at end of the six months 122 55
The notes to the condensed interim financial statements form an integral part of these financial statements.
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
6

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
7
About this report
In this section.
The summary notes to the condensed
interim financial statements include
information which is considered
relevant and material to assist the
reader in understanding changes
in Meridian's financial position
or performance. Information is
considered relevant and material if:
• the amount is significant
because of its size and nature;
• it is important for understanding
the results of Meridian;
• it helps to explain changes
in Meridian's business; or
• it relates to an aspect of Meridian's
operations that is important to
future performance.
Meridian Energy Limited is a for-profit
entity domiciled and registered
under the Companies Act 1993 in
New Zealand. It is a FMC reporting
entity for the purposes of the
Financial Markets Conduct (FMC)
Act 2013. Meridian's core business
activities are the generation, trading
and retailing of electricity and the
sale of complementary products
and services. The registered office of
Meridian is 55 Lady Elizabeth Lane,
Wellington. Meridian Energy Limited
is dual listed on the New Zealand
Stock Exchange (NZX) and the
Australian Securities Exchange (ASX).
As a Mixed Ownership Company,
majority owned by Her Majesty the
Queen in Right of New Zealand, it
is bound by the requirements of
the Public Finance Act 1989.
These unaudited condensed interim
financial statements for the six months
ended 31 December 2020 have
been prepared:
• using Generally Accepted
Accounting Practice in New Zealand
(NZ GAAP), accounting policies
consistent with International
Financial Reporting Standards
(IFRS) and the New Zealand
equivalents (NZ IFRS) and in
accordance with IAS 34: Interim
Financial Reporting and NZ IAS
34: Interim Financial Reporting, as
appropriate for a for-profit entity;
• in accordance with the
requirements of the Financial
Markets Conduct Act 2013;
• on the basis of historical cost,
modified by revaluation of
certain assets and liabilities; and
• in New Zealand dollars (NZD).
The principal functional currency
of international subsidiaries is
Australian dollars. The closing
rate at 31 December 2020 was
0.9339 (December 2019: 0.9596,
30 June 2020: 0.9349).
All values are rounded to millions ($M)
unless otherwise stated.
Accounting policies
The accounting policies, methods
of computation and classification set
out in the Group financial statements
for the year ended 30 June 2020
have been applied consistently to all
periods presented in the condensed
interim financial statements.
Judgements and estimates
The basis of key judgements and
estimates have not changed from
those used in preparing the financial
statements for the year ended
30 June 2020, except for those
relating to the New Zealand
Aluminium Smelter (NZAS) exit.
Refer to the Significant matters
section for further detail on these
judgements and impacts.
Basis of consolidation
The condensed interim Group
financial statements comprise the
financial statements of Meridian
Energy Limited and its subsidiaries
and controlled entities.

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
8
NZAS Exit
On 9 July 2020, the New Zealand
Aluminium Smelter (NZAS)
announced plans to wind-down
its operation at Tiwai Point. NZAS
terminated its 572MW electricity
supply agreement with Meridian,
giving a 14-month notice period
through to 31 August 2021.
For Meridian’s year-end financial
reporting as at 30 June 2020, the
NZAS exit announcement was treated
as a post balance date non-adjusting
event. No adjustment was made to
the Group financial statements to
reflect any impact that the NZAS
exit may have on Meridian. Meridian
did disclose an estimate of how an
NZAS exit on 31 August 2021 may
impact the Group.
Leading into 31 December 2020,
negotiations with NZAS on a
potentially extended exit period
continued. On 14 January 2021
NZAS announced it had accepted
Meridian's offer of an amended
Significant matters
in the six months
In this section.
Significant matters which have
impacted Meridian's financial
performance.

contract covering an extended exit
period and would continue operating
through to 31 December 2024.
For Meridian’s financial reporting
purposes and in keeping with NZ
IFRS, the NZAS extended exit period
announcement has been treated as
a post balance date adjusting event,
as it affirmed a condition that existed
as at 31 December 2020. As such,
Meridian financials are prepared
based on an extended NZAS exit
date of 31 December 2024.
The main outcome of an extended
exit period, relative to the disclosures
made at 30 June 2020, is that there
will not be a consequential decrease
in the value of property, plant &
equipment. Refer to note B1 Property,
plant and equipment and D1 Financial
instruments for more information.

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
9
In this section.
This section outlines significant
matters which have impacted
Meridian's financial performance
and an explanation of non-GAAP
measures used within the notes
to the condensed interim
financial statements.
Hydro Inflows
Meridian started the financial year
with below average storage in Lake
Pūkaki and had inflows from May
to September that were lower than
average. There was a change in
weather patterns mid September
that led the Waiau lakes to reach
their high ranges later that month.
It also resulted in spill for most of
October. The same patterns lifted
hydro storage in our main hydro
storage lake, Pūkaki.
Current conditions and the outlook
are less certain. Metservice forecasts
La Nina conditions for the Pacific this
Summer and, while we do not know
what will play out, since November
we have received below average
inflows into our hydro catchments.
This has meant we have relied on
hydro storage more directly and at
the end of December Lake Pūkaki
had below average storage.
Covid 19
Meridian continues to hold a higher
provision for doubtful debts than
in pre-Covid times, in light of the
continuing uncertainty around
the economy and employment in
both New Zealand and Australia.
Meridian also considered the
impact of COVID 19 as part of
our key assumptions when valuing
our property plant and equipment
and financial instruments. However
there was no impact when taking
this into consideration.
Non-GAAP measures
Meridian refers to non-GAAP financial
measures within these condensed
interim financial statements and
accompanying notes. The limited
use of non-GAAP measures is
intended to supplement GAAP
measures to provide readers with
further information to broaden their
understanding of Meridian's financial
performance and position. They are
not a substitute for GAAP measures.
As these measures are not defined
by NZ GAAP, IFRS, or any other body
of accounting standards, Meridian's
calculations may differ from similarly
titled measures presented by other
companies. The measures are
described below, including page
references for reconciliations to
the condensed interim financial
statements.
EBITDAF
Earnings before interest, tax,
depreciation, amortisation, change
in fair value of hedges, impairments
and gains and losses on sale of assets.
EBITDAF is reported in the income
statement allowing the evaluation
of Meridian's operating performance
without the non-cash impact of
depreciation, amortisation, fair value
movements of hedging instruments
and other one-off or infrequently
occurring events and the effects
of Meridian's capital structure and
tax position. This allows a better
comparison of operating performance
with that of other electricity industry
companies than GAAP measures that
include these items.
Energy margin
Energy margin provides a measure
of financial performance that,
unlike total revenue, accounts for
the variability of wholesale energy
markets and the broadly offsetting
impact of the wholesale prices on
the cost of Meridian's energy
purchases and revenue from
generation. Meridian uses the
measure of energy margin within
its segmental financial performance
in Note A1 Segment performance.
Net debt
Net debt is a metric commonly
used by investors as a measure
of Meridian's indebtedness that
takes account of liquid financial
assets. Meridian uses this measure
within its capital management and
this is outlined in Note C1 Capital
management.
Significant matters
in the six months continued

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
10
A1 Segment performance
The Chief Executive (the chief
operating decision-maker) monitors
the operating performance of each
segment for the purpose of making
decisions on resource allocation
and strategic direction.
The Chief Executive considers the
business according to the nature of the
products and services and the location
of operations, as set out below:
New Zealand wholesale
• Generation of electricity and
its sale into the New Zealand
wholesale electricity market.
• Purchase of electricity from the
wholesale electricity market and
its sale to the New Zealand Retail
segment and to large industrial
customers, including NZAS
representing the equivalent of
38% (31 December 2019: 38%)
of Meridian's New Zealand
generation production.
• Development of renewable
electricity generation
opportunities in New Zealand.
New Zealand retail
• Retailing of electricity and
complementary products through
two brands (Meridian and
Powershop) in New Zealand.
• Electricity sold to residential,
business and industrial customers
on fixed price variable volume
contracts is purchased from
the Wholesale segment at an
average annual fixed price of
$89 per megawatt hour (MWh)
and electricity sold to business
and industrial customers on spot
(variable price) agreements is
purchased from the Wholesale
segment at prevailing wholesale
spot market prices.
• Agency margin from spot sales
is included within "Contracted
sales, net of distribution costs".
• The transfer price is set in a
similar manner to transactions
with third parties.
• Powershop New Zealand
provides front line customer
and back office services for
Powershop Australia. Revenue of
$3 million has been recorded in
'Other revenue' and is eliminated
on Group consolidation.
Australia
• Generation of energy from
Meridian's two wind farms, three
hydro power stations and acquired
under power purchase agreements,
for sale into the Australian
wholesale electricity market.
• Retailing of electricity and gas,
mainly through the Powershop
brand in Australia.
• Development of renewable
electricity generation options
in Australia.
Other and unallocated
• Other operations, that are not
considered reportable segments,
including licensing of the Flux
developed electricity and gas
retailing platform.
• Activities and centrally based
costs that are not directly
allocated to other segments.
The financial performance of the
operating segments is assessed using
energy margin and EBITDAF (see page
9 for a definition of these measures)
before unallocated central corporate
expenses. Balance sheet items are
not reported to the Chief Executive
at an operating segment level.
Financial
performance
In this section.
This section explains the financial
performance of Meridian,
providing additional information
about individual items in the
income statement, including:
a. accounting policies, judgements
and estimates that are relevant for
understanding items recognised
in the income statement; and
b. analysis of Meridian's
performance for the six months
by reference to key areas
including: performance by
operating segment, revenue,
expenses and taxation.
A

A1 Segment performance continued
For the six months to 31 December
NZ Wholesale NZ Retail Australia Other and Unallocated Inter-segment Group
2020
$M
2019
$M
2020
$M
2019
$M
2020
$M
2019
$M
2020
$M
2019
$M
2020
$M
2019
$M
2020
$M
2019
$M
Contracted sales, net of distribution costs 256 246 460 391 92 97 – – – – 808 734
Cost to supply customers (998) (842) (370) (298) (54) (79) – – 417 343 (1,005) (876)
Net cost of hedging 24 32 – – (8) (2) – – – – 16 30
Generation spot revenue 754 727 – – 30 49 – – – – 784 776
Inter-segment electricity sales 417 343 – – – – – – (417) (343) – –
Virtual asset swap margins 1 3 – – – – – – – – 1 3
Other market revenue/(costs) (4) (4) – – (1) – – – – – (5) (4)
Energy margin 450 505 90 93 59 65 – – – – 599 663
Other revenue 1 1 7 6 1 2 23 15 (20) (11) 12 13
Dividend revenue – – – – – – 46 27 (46) (27) – –
Energy transmission expense (41) (65) – – (3) (3) – – – – (44) (68)
Energy metering expenses – – (19) (17) – – – – – – (19) (17)
Gross margin 410 441 7882 57 64 69 42 (66) (38)548591
Employee expenses (16) (16) (16) (16) (7) (6) (15) (15) – – (54) (53)
Other operating expenses (28) (32) (17) (17) (21) (19) (13) (11) 7 6 (72) (73)
EBITDAF 366 393 45 49 29 39 41 16 (59) (32) 422 465
Depreciation and amortisation–––––––––– (153) (157)
Net change in fair value of electricity
and other hedges
–––––––––– 63 (6)
Operating profit–––––––––– 332 302
Finance costs–––––––––– (42) (43)
Net change in fair value of treasury instruments–––––––––– 25 6
Net profit before tax–––––––––– 315 265
Income tax expense –––––––––– (88) ( 74)
Net profit after tax–––––––––– 227 191
Reconciliation of energy margin
Electricity sales revenue, net of hedging 1,294 1,211 800 729 179 170 – – (417) (343) 1,856 1 ,767
Electricity expenses, net of hedging (844) (706) (421) (349) (66) (65) – – 417 343 (914) (777)
Electricity distribution expenses – – (289) (287) (54) (40) – – – – (343) (327)
Energy margin 450 505 90 93 59 65 – – – – 599 663
A
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
11

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
12
A3 Expenses
Six months ended 31 December
UnauditedUnaudited
Operating expenses
2020
$M
2019
$M
Energy expenses, net of hedging
915 777
Energy distribution expenses
343 327
Energy transmission expenses
44 68
Energy metering expense
19 17
Employee expenses
54 53
Other expenses
72 73
1,447 1,315
Finance costs
Interest on borrowings 39 39
Interest on option premium 1 1
Interest on lease liabilities 2 3
42 43
Energy expenses, net of hedging
The cost of:
• energy purchased from wholesale
markets to supply customers;
• the net settlement of buy-side
energy hedges; and
• related charges and services.
Energy expenses are influenced
by quantity and timing of customer
consumption and the wholesale
spot price.
Energy distribution expenses
The cost of distribution companies
transporting energy between
where it is transmitted/stored
and customers' properties.
Energy transmission expenses
Meridian's share of the cost of the
high voltage direct current (HVDC)
link between the North and South
Islands of New Zealand and the cost of
connecting Meridian's generation sites
to the national grid by grid providers.
Employee expenses
Provision is made for benefits owing
to employees in respect of wages
and salaries, annual leave, long service
leave and employee incentives for
services rendered. Provisions are
recognised when it is probable they
will be settled and can be measured
reliably. They are carried at the
remuneration rate expected to
apply at the time of settlement.
A2 Income
Six months ended 31 December
UnauditedUnaudited
Operating revenue
2020
$M
2019
$M
Energy sales to customers 1,086 997
Generation revenue net of hedging 770 770
Energy related services revenue 5 4
Other revenue 8 9
1,869 1,780
Total revenue by geographic area
New Zealand 1,684
1,603
Australia 180
172
United Kingdom 5
5
Total operating revenue 1,869 1,780
A
Energy sales to customers
Revenue received or receivable from
residential, business and industrial
customers. This revenue is influenced
by customer contract sales prices
and their demand for energy.
Generation revenue,
net of hedging
Revenue received from:
• energy generated and sold
into the wholesale markets; and
• the net settlement of energy
hedges sold on futures markets,
and to generators, retailers and
industrial customers.
This revenue is influenced by
the quantity of generation and
the wholesale spot price and is
recognised at the time of
generation or hedge settlement.

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
13
A4 Taxation
UnauditedUnaudited
Income tax expense
2020
$M
2019
$M
Current income tax charge 85 98
Deferred tax 3 (24)
Income tax expense 88 74
Reconciliation to profit before tax
Profit before tax 315 265
Income tax at applicable rates 88 74
Expenditure not deductible for tax - -
Income tax expense 88 74
A
Income tax expense
Income tax expense is the income
tax assessed on taxable profit for
the period. Taxable profit differs
from profit before tax reported in
the income statement as it excludes
items of income and expense that
are taxable or deductible in other
periods and also excludes items that
will never be taxable or deductible.
Meridian’s liability for current tax
is calculated using tax rates that
have been enacted or substantively
enacted at balance date, being
28% for New Zealand and 30%
for Australia.
Income tax expense components are
current income tax and deferred tax.

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
14
In this section.
This section shows the assets
Meridian uses in the production
and sale of electricity to generate
operating revenues. In this section
of the summary notes there is
information about:
a. property, plant and
equipment, and
b. intangible assets
Assets used to generate
and sell electricity
B
Recognition and measurement
Generation structures and plant
assets (including land and buildings)
are held on the balance sheet at their
fair value at the date of revaluation,
less any subsequent depreciation and
impairment losses. All other property,
plant and equipment are stated
at historical cost less accumulated
depreciation and any accumulated
impairment losses.
Fair value and revaluation of
generation structures and plant
Meridian engaged an independent
valuer to assess its generation
structures and plant assets at
31 December 2020 using
capitalisation of earnings and
discounted cashflows (DCFs) when
determining a valuation range.
The review determined that the
current carrying value of Meridian's
generation structure and plant
assets represents fair value.
The value of our generation
structures and plant is sensitive
to movements in fair value as a
result of a change in each valuation
input. The nature of these sensitivities
has not significantly changed since
30 June 2020.
The key assumptions used in
the valuation have not changed
significantly from 30 June 2020
except for the below:
Range of
unobservable inputs
Key input to measure
fair value
DescriptionAs at
31 Dec 20
As at
30 Jun 20
Future NZ
wholesale
electricity prices
The price received for NZ generation$45MWh
to $106MWh
by 2035
(in real terms)
$74MWh
to $105MWh
by 2035
(in real terms)
EBTIDAF earnings
multiple
Valuation multiple
(including control premium 20%)
derived from earnings and valuations
of comparable companies
12.2 x EBITDAF12.2 x EBITDAF

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
15
B2 Intangible assets
UnauditedUnauditedAudited
Position as at
31 Dec 2020
$M
31 Dec 2019
$M
30 Jun 2020
$M
Opening net book value 65 59 59
Additions 20 11 30
Amortisation expense(9) (12) (24)
Closing net book value 76 58 65
B
B1 Property, plant and equipment
UnauditedUnauditedAudited
Position as at
31 Dec 2020
$M
31 Dec 2019
$M
30 Jun 2020
$M
Opening net book value 8,594 8,825 8,825
Additions 19 22 38
Transfers – work in progress – – –
Disposals(1) – –
Decomissioning asset – make good provision – – 6
Adjustment of Right of Use assets(4) – 1
Lease assets recognised on implementation
of NZ IFRS 16 – 75 75
Foreign currency exchange rate movements 2 (1) 15
Generation structures and plant revaluation:
– revaluation reserve – – (21)
– income statement – – (57)
Depreciation expense(144) (145) (288)
Closing net book value 8,466 8,776 8,594
Right-of-Use Assets
Included within property plant
and equipment are right-of-use
lease assets recognised under
NZ IFRS 16. Right-of-use assets
relate to office space, land access,
and grid connection assets.
As at 31 December 2020, total
cost of right-of-use assets is
$107m (2019: $110m). Accumulated
depreciation on these assets totals
$16m (2019: $11m). Net book value
is therefore $91m (2019: $99m).
Depreciation expense on right-
of-use assets for the current
period is $3m (2019: $3m).

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
16
C1 Capital management
Capital risk management objectives
Meridian's objective when managing
capital is to provide appropriate returns
to shareholders whilst maintaining a
capital structure that safeguards its
ability to remain a going concern and
optimises the cost of capital.
Capital is defined as the combination
of shareholders' equity, reserves and
net debt.
Meridian manages its capital
through various means, including:
• adjusting the amount of dividends
paid to shareholders;
• raising or returning capital; and
• raising or repaying debt.
Meridian regularly monitors its capital
requirements using various measures
that consider debt facility financial
covenants and credit ratings. The key
measures being net debt to EBITDAF
and interest cover. The principal
external measure is Meridian's credit
rating from Standard & Poor's.
Meridian is in full compliance with
debt facility financial covenants.
UnauditedUnauditedAudited
Position as at
Note
31 Dec 2020
$M
31 Dec 2019
$M
30 Jun 2020
$M
Share capital 1,598 1,599 1,598
Retained earnings(1,601) (1,317) (1,541)
Other reserves 5,022 5,030 5,026
5,019 5,312 5,083
Drawn borrowingsC4 1,582 1,461 1,491
add Lease liabilities 98 106 104
less: Cash and cash equivalents (122) (55) (176)
1,558 1,512 1,419
Net capital 6,577 6,824 6,502
In this section.
This section explains how Meridian
manages its capital structure and
working capital, the various funding
sources, and how dividends are
returned to shareholders. In this
section of the summary notes
there is information about equity
and dividends.
Managing
funding
C

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
17
C2 Earnings per share
UnauditedUnaudited
Basic and diluted earnings per share (EPS)
31 Dec 202031 Dec 2019
Profit after tax attributable to shareholders of the parent company ($M) 227 191
Weighted average number of shares used in the calculation of EPS 2,563,000,000 2,563,000,000
Basic and diluted EPS (cents per share) 8.9 7. 5
C3 Dividends
Six months ended 31 December
UnauditedUnaudited
Dividends declared and paid
2020
$M
2019
$M
Final ordinary and special dividend 2020: 11.2cps (2019: 13.16cps) 287 337
Total dividends paid 287 337
Dividends declared and not recognised as a liability
Interim ordinary dividend 2021: 5.7cps (2020: 5.7cps)146 146
Interim special dividend 2021: 0cps (2020: 2.44cps) – 63
C
Dividend policy
Meridian's dividend policy considers
free cash flow, working capital
requirements, the medium-term
investment programme, maintaining
a BBB+ credit rating and risks from
short and medium-term economic,
market and hydrology conditions.
Subsequent event –
dividend declared
On 23 February 2021 the Board
declared a partially imputed interim
ordinary dividend of 5.7 cents per share.

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
18
UnauditedUnauditedAudited
Position as at31 Dec 202031 Dec 201930 Jun 2020
Group (NZ$M)
Currency
borrowed in
Drawn
facility
amount
Transaction
costs
Fair value
adjustment
Carrying
amount
Drawn
facility
amount
Transaction
costs
Fair value
adjustment
Carrying
amount
Drawn
facility
amount
Transaction
costs
Fair value
adjustment
Carrying
amount
Current borrowings
Unsecured borrowings NZD 215 (1) – 214 184 (1) – 183 89 (1) – 88
Unsecured borrowings USD 47 – 10 57 – – – – – – – –
Total current borrowings 262 (1) 10 271 184 (1) – 183 89 (1) – 88
Non-current borrowings
Unsecured borrowings NZD 765 (1) – 764 679 (2) – 677 800 (2) – 798
Unsecured borrowings USD 555 (1) 90 644 598 (1) 100 697 602 (1) 201 802
Total non-current borrowings 1,320 (2) 90 1,408 1,277 (3) 100 1,374 1,402 (3) 201 1,600
Total borrowings 1,582 (3) 100 1,679 1,461 (4) 100 1,557 1,491 (4) 201 1,688
C4 Borrowings
C
Meridian has committed bank
facilities of $755 million of which
$525 million were undrawn at
31 December 2020 (31 December
2019: faciliities of $665m of which
$525m were undrawn). Where
faciliities have expiry dates, these
expiries range from June 2021 to
April 2026. $275m of facilities are
Evergreen or have no expiry date.
Borrowings, measurement
and recognition
Borrowings are recognised initially
at the fair value of the drawn facility
amount (net of transaction costs
paid) and are subsequently stated
at amortised cost using the effective
interest method. Any borrowings
which have been designated as
hedged items (USD borrowings)
are carried at amortised cost plus a
fair value adjustment under hedge
accounting requirements. Any
borrowings denominated in foreign
currencies are retranslated to the
functional currency at each reporting
date. Any retranslation effect is
included in the "Fair value adjustment"
column in the above table.
Meridian uses cross currency interest
rate swap (CCIRS) hedge contracts to
manage its exposure to interest rates
and borrowings sourced in currencies
different to that of the borrowing
entity's reporting currency.
Fair value of borrowings held at amortised cost
UnauditedAudited UnauditedAudited
Position as at
31 Dec
2020
$M
31 Dec
2019
$M
30 Jun
2020
$M
31 Dec
2020
$M
31 Dec
2019
$M
30 Jun
2020
$M
Group (NZ$M)
Carrying valueFair value
Retail bonds 500 500 500 554 541 558
Floating rate notes 50 50 50 51 51 51
Unsecured term loan (EKF facility) 55 65 60 58 69 64
Within term borrowings there are longer
dated instruments which are not in hedge
accounting relationships. The carrying
values and estimated fair values of these
instruments are noted in the table above.
Fair value is calculated using a discounted
cash flow calculation and the resultant
values are classified as Level 2 within the fair
value hierarchy. The Retail Bonds are listed
instruments; however, a lack of liquidity
on the NZX precludes them from being
classified as Level 1 (a definition of levels
is included in Note D1 Financial instruments).
Carrying value approximates fair value for all
other instruments within term borrowings.

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
19
Unaudited
31 Dec 2020
Group (NZ$M)
Balance at
30 June 2020
Term
borrowings
drawn
Term
borrowings
repaid
Fair value
adjustments
Foreign
Exchange
Transaction
costs paid &
accrued
Lease
liabilities
recognised
Lease
liabilities
paid
Lease
derecognition
Unwind of
discounting
Balance at
31 Dec 2020
Unsecured borrowings – NZD 886 97 (5) – – – – – – – 978
Unsecured borrowings – USD 802 – – (31) (70) – – – – – 701
Lease Liabilities 104 – – – – – – (4) (4) 2 98
Total 1,792 97 (5) (31) (70) – – (4) (4) 2 1,777
Audited
30 June 2020
Group (NZ$M)
Balance at
30 June 2019
Term
borrowings
drawn
Term
borrowings
repaid
Fair value
adjustments
Foreign
Exchange
Transaction
costs paid &
accrued
Lease
liabilities
recognised
Lease
liabilities
paid
Lease
derecognition
Unwind of
discounting
Balance at
30 June 2020
Unsecured borrowings – NZD 775 172 (60) – – (1) – – – – 886
Unsecured borrowings – USD 695 – – 80 27 – – – – – 802
Lease Liabilities 32 – – (1) (1) – 75 (7) – 6 104
Total 1,502 172 (60) 79 26 (1) 75 (7) – 6 1,792
Unaudited
31 Dec 2019
Group (NZ$M)
Balance at
30 June 2019
Term
borrowings
drawn
Term
borrowings
repaid
Fair value
adjustments
Foreign
Exchange
Transaction
costs paid &
accrued
Lease
liabilities
recognised
Lease
liabilities
paid
Lease
derecognition
Unwind of
discounting
Balance at
31 Dec 2019
Unsecured borrowings – NZD 775 141 (55) – – – – – – – 861
Unsecured borrowings – USD 695 – – 3 (2) – – – – – 696
Lease Liabilities 32 – – – – – 75 (4) – 3 106
Total 1,502 141 (55) 3 (2) – 75 (4) – 3 1,663
Reconciliation of liabilities arising from financing activities
The table below details changes in the Group's liabilities arising from financing activities, including both cash and non-cash changes.
C
C4 Borrowings continued

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
20
C
C5 Green financing
Green Debt allocated to the Hydro Pool
1
Unaudited
31 Dec 2020
Group (NZ$M)
CUSIP/
NZX Code
Currency
borrowed in
Facility
amount
Drawn
facility
amount
USPP Series 2014-1 Tranche A
2
Q5995*AA6USD4747
USPP Series 2014-1 Tranche B
2
Q5995*AB 4USD116116
USPP Series 2019-1 Tranche A
2
Q5995#AE4USD183183
USPP Series 2019-1 Tranche B
2
Q5995#AF1USD183183
USPP Series 2019-1 Tranche C
2
Q5995#AG9USD7373
Total USPP602602
Wholesale FRN - 10yrNZD5050
Bank Facilities
3
NZD700175
Commercial Paper
4
NZD200200
Total Green Debt allocated
to the Hydro Pool
1,552 1,027
Green Debt allocated to the Wind Pool
5
Unaudited
31 Dec 2020
Group (NZ$M)
CUSIP/
NZX Code
Currency
borrowed in
Facility
amount
Drawn
facility
amount
Retail Bond (Mar-23)MEL030NZD150150
Retail Bond (Mar-24)MEL040NZD150150
Retail Bond (Mar-25)MEL050NZD200200
Total Domestic Bonds500500
EKF Amortising FacilityNZD5555
Total Green Debt allocated
to the Wind Pool
555 555
Total Green Debt 2,107 1,582
At 31 December 2020, Meridian remains compliant with the requirements
of the programme.
Further information is available on the Green Finance section of our website.
1. Verified as meeting the criteria established for Meridian by DNV GL which align with the stated
definition of Green Bonds and Loans within the Green Bond/Loan Principles.
2. United States private placement (USPP) Notes are included as the NZD equivalent under the
Cross-Currency Interest Rate Swaps related to the Issue.
3. Committed Bank facilities are included at the face value of the facilities.
4. Commercial Paper is included as the amount on issue.
5. Climate Bonds Standard Certified.

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
21
D1 Financial instruments
Fair value of hedging
financial instruments
The recognition and measurement
of hedging financial instruments
requires management estimation
and judgement (this is discussed in
further detail later in this note). These
estimates can have a significant risk
of material adjustment in future
periods. Fair value measurements
are grouped within a three-level
fair value hierarchy based on the
observability of valuation inputs
(described opposite).
D
Financial
instruments
In this section.
In this section of the summary
notes there is information:
a. analysing financial (hedging)
instruments used to manage
risk; and
b. outlining Meridian's fair value
techniques and key inputs.

Fair value on
the balance sheet
Fair value movements
in the income statement
UnauditedAuditedUnaudited
31 Dec 202031 Dec 201930 Jun 202031 Dec 202031 Dec 2019
Level
Assets
$M
Liabilities
$M
Assets
$M
Liabilities
$M
Assets
$M
Liabilities
$M$M$M
Treasury Hedges
Cross currency interest rate swap (CCIRS) –
interest rate risk
289–43–118–––
CCIRS – basis and margin risk2(11)–(3)–(4)–––
CCIRS – foreign exchange risk210–55–80–––
Total CC IRS88–95–194–––
Foreign exchange hedges21–––––––
Interest rate swaps (IRS)223(207)20(176)29(238)256
Total Treasury Hedges2112(207)115(176)223(238)256
Energy hedges
Market traded electricity hedges186(23)76(3)57(16)114
Market traded gas hedges1–(1)–––(2)1–
Other electricity hedges
1
349(11)52(64)27(65)76(8)
Other gas hedges2–(11)––(10)(1)
Electricity options343–63–50–(7)(7)
Large scale generation certificates (LGC) –
Holdings created from wind farm generation
114–16–6–(1)(2)
LGC – forward and option contracts22(18)16(3)2(11)(6)(3)
Energy hedges 194(64)223(70)142(104)63(6)
Total hedges306(271)338(246)365(342)88–
• Level 1 Inputs – Quoted prices
(unadjusted) in active markets
for identical assets or liabilities
that the entity can access at the
measurement date.
• Level 2 Inputs – Either directly
(i.e. as prices) or indirectly (i.e.
derived from prices) observable
inputs other than quoted prices
included in Level 1.
• Level 3 Inputs – Inputs for the
asset or liability that are not
based on observable market
data (unobservable inputs).
1. The fair value movement in the income statement in other electricity hedges includes the assumed termination of an electricity
derivative contract which was subsequently terminated on 13 January 2021. Refer to Significant matters section for further detail.

Settlements
The following provides a summary of the settlements through EBITDAF for energy hedges:
UnauditedUnaudited
20202019
$M
Operating
Revenue
Operating
expenses
Total
Settlements
In EBITDAF
Operating
Revenue
Operating
expenses
Total
Settlements
In EBITDAF
Market traded electricity hedges(1) (13) (14) 4 (6) (2)
Market traded gas hedges – (1) (1) – – –
Other electricity hedges(19) 50 31 (17) 54 37
Other gas hedges – – – – – –
Electricity options – 1 1 – – –
LGC related14(7)7 14 (7) 7
Total settlements in EBITDAF(6) 3024 1 41 42

Level 3 financial instrument analysis
The following provides a summary of the movements through EBITDAF and movements in the fair value of level three financial instruments:
UnauditedUnaudited
20202019
$M
Other
Electricity
Hedges
Electricity
Options Total
Other
Electricity
Hedges
Electricity
Options Total
Energy hedges settled in EBITDAF:
Operating revenue(19)–(19)(17)–(17)
Operating expenses5015153–53
Total settlements in EBITDAF3113236–36
Net change in fair value of energy hedges:
Remeasurement107(6)10128(7)21
Hedges settled(31)(1)(32)(36)–(36)
Total net change in fair value of energy hedges 76(7)69(8)(7)(15)
Balance at the beginning of the period(38)5012(4)7066
Fair value movements76(7)69(8)(7)(15)
Balance at the end of the year384381(12)6351
D1 Financial instruments continued
D
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
22

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
23
D1 Financial instruments continued
Fair value technique and key inputs
In estimating the fair value of an asset
or liability, Meridian uses market-
observable data to the extent that
it is available. The Audit and Risk
Committee of Meridian determines
the overall appropriateness of key
valuation techniques and inputs for
fair value measurement. The Chief
Financial Officer explains fair value
movements in his report to the Board.

The table below describes the additional key inputs and techniques used in the valuation of level 2 and 3
financial instruments:
Financial asset or liability Description of input
Range of significant
unobservable inputsRelationship of input to fair value
Energy hedges,
valued using DCFs
Price, where quoted prices are not
available or not relevant (i.e. for
long dated contracts), Meridian's
best estimate of long-term forward
wholesale electricity price is used.
This is based on a fundamental
analysis of expected demand and
the cost of new supply and any other
relevant wholesale market factors.
Calibration factors, which are
applied to forward curves as a
consequence of initial recognition
differences (see below table)
$67/MWh to $107/MWh
(in real terms), excludes
observable ASX prices.





An increase in forward wholesale
electricity price increases the fair value
of buy hedges and decreases the fair
value of sell hedges. A decrease in
forward wholesale electricity price
has the opposite effect.
LGC forward contracts and options,
valued using DCFs/Black-Scholes
Price, based on a forward
LGC price curve from a third-
party broker and benchmarked
against market spot prices.

A$5–A$63 An increase in the forward LGC
price decreases the fair value of
sell hedges and increases the fair
value of buy hedges. A decrease
in forward LGC prices has the
opposite effect
Where the fair value of a financial
instrument is calculated as the present
value of the estimated future cash
flows of the instrument (DCFs), a
number of inputs and assumptions
are used by the valuation technique.
These are:
• forward price curves referenced
to the ASX for electricity, published
market data on gas/oil prices,
published market interest rates
and published forward foreign
exchange rates;
• Meridian's best estimate of
electricity volumes called over
the life of electricity options;
• discount rates based on the
forward IRS curve adjusted
for counterparty risk;
• calibration factor applied to forward
price curves as a consequence of
initial recognition differences;
D
• NZAS continues to operate
(refer to significant matters
for further detail); and
• contracts run their full term.

Initial recognition difference
An initial recognition difference
arises when the modelled value of
an energy hedge differs from the
transaction price (which is the best
evidence of fair value). This difference
is accounted for by recalibrating the
valuation model by a fixed percentage
to result in a value at inception equal to
the transaction price. This recalibration
is then applied to future valuations
over the life of the contract.

The resulting difference shown in
the table reflects potential future
gains or losses yet to be recognised
in the income statement over the
remaining life of the contract.
Movements in recalibration differences arising from energy hedges
UnauditedUnauditedAudited
31 Dec 2020
$M
31 Dec 2019
$M
30 Jun 2020
$M
Opening difference
(1) (3) (3)
Initial differences on new hedges – (1) –
Volumes expired and amortised – 1 1
Recalibration for future price estimates and time – – 1
Terminated and adjusted trades (2) – –
Closing difference(3) (3) (1)
D1 Financial instruments continued
D
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
24

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
25
E1 Group structure
No changes occurred to Meridian's
Group structure in the six months
to 31 December 2020.
E2 Contingent assets and liabilities
There were no contingent assets
or liabilities at 31 December 2020
(31 Dec 2019: $3m – $4m, 30 Jun
2020: nil).
E
Other
E3 Subsequent events
On 23 February 2021 the Board
approved to proceed with the
development of the new $395m
Harapaki Wind Farm in the Hawke's
Bay. The Harapaki Wind Farm will
be New Zealand's second largest wind
farm with 41 turbines generating
176MW of renewable energy.
Meridian entered into a new
NZ$70 million unsecured borrowing
facility on 5 February 2021.
There were no other subsequent
events other than dividends declared
on 23 February 2021. Refer to Note C3
Dividends for further details.
E4 Changes in financial
reporting standards
Meridian is not aware of any standards
in issue but not yet effective which
would materially impact on the
amounts recognised or disclosed
in the financial statements.

Independent Review Report
To the Shareholders of Meridian Energy Limited
The Auditor-General is the auditor
of Meridian Energy Limited (the
‘Company’) and its subsidiaries
(the ‘Group’). The Auditor-General
has appointed me, Mike Hoshek,
using the staff and resources of
Deloitte Limited, to carry out the
review of the condensed interim
financial statements (‘interim
financial statements’) of the
Group on his behalf.
Conclusion
We have reviewed the interim financial
statements of the Group on pages
3 to 25, which comprise the balance
sheet as at 31 December 2020, income
statement, comprehensive income
statement, statement of changes in
equity and statement of cash flows
for the six months ended on that date,
and the notes including 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 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 cash flows for the
six months ended on that date, in
accordance with NZ IAS 34 Interim
Financial Reporting and IAS 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 (‘NZ SRE 2410 (Revised)’). Our
responsibilities are further described
in the Auditor’s Responsibilities for
the Review of the Interim Financial
Statements section of our report.
We are independent of the Group
in accordance with the Auditor-
General’s ethical requirements relating
to the audit of the annual financial
statements, which incorporate the
relevant independence requirements
issued by the New Zealand Auditing
and Assurance Standards Board, and
we have fulfilled our other ethical
responsibilities in accordance with
these requirements.
In addition to this review and the
audit of the Group annual financial
statements, our firm carries out
other assurance assignments for the
Group in the areas of greenhouse gas
assurance, limited assurance of the
sustainability content in the integrated
report, audit of the securities registers,
vesting of the executive long-term
incentive plan, the solvency return
of Meridian Captive Insurance
Limited and supervisor reporting.
These services have not impaired
our independence as auditor of
the Group.
In addition to these assignments,
partners and employees of our firm
deal with the Group on normal
terms within the ordinary course of
trading activities of the Group. Other
than these assignments and trading
activities, we have no relationship with,
or interests in the Group.
Directors’ responsibilities for
the interim financial statements
The directors are responsible,
on behalf of the Group, for the
preparation and fair presentation of
these interim financial statements in
accordance with NZ IAS 34 Interim
Financial Reporting and IAS 34
Interim Financial Reporting and for
such internal control as the directors
determine is necessary to enable the
preparation and fair presentation of
the interim financial statements that
are free from material misstatement,
whether due to fraud or error.
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.
NZ SRE 2410 (Revised) requires us
to conclude whether anything has
come to our attention that causes us
to believe that the interim financial
statements, taken as a whole, are not
prepared, in all material respects, in
accordance with NZ IAS 34 Interim
Financial Reporting and IAS 34
Interim Financial Reporting.
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
26

A review of the interim financial
statements in accordance with
NZ SRE 2410 (Revised) is a limited
assurance engagement. We
perform procedures, primarily
consisting of making enquiries,
primarily of persons responsible
for financial and accounting
matters, and applying analytical
and other review procedures. The
procedures performed in a review
are substantially less than those
performed in an audit conducted
in accordance with International
Standards on Auditing (New Zealand)
and consequently do not enable us
to obtain assurance that we might
identify in an audit. Accordingly, we
do not express an audit opinion on
these interim financial statements.
Mike Hoshek
for Deloitte Limited
On behalf of the Auditor-General
23 February 2021
CHRISTCHURCH, NEW ZEALAND
Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
27
This review report relates to the unaudited
condensed interim financial statements of
Meridian Energy for the six months ended
31 December 2020 included on Meridian
Energy’s website.
The Board of Directors are responsible for the
maintenance and integrity of Meridian Energy’s
website. We have not been engaged to report
on the integrity of Meridian Energy’s website.
We accept no responsibility for any changes
that may have occurred to the unaudited
condensed interim financial statements since
they were initially presented on the website.
The review report refers only to the unaudited
condensed interim financial statements
named above. It does not provide an opinion
on any other information which may have
been hyperlinked to/from these unaudited
condensed interim financial statements.
If readers of this report are concerned with
the inherent risks arising from electronic
data communication they should refer to
the published hard copy of the unaudited
condensed interim financial statements and
related review report dated 23 February
2021 to confirm the information included in
the unaudited condensed interim financial
statements presented on this website.
Legislation in New Zealand governing the
preparation and dissemination of financial
statements may differ from legislation in
other jurisdictions.

Group financial statements for the six months ended 31 December 2020
Meridian Energy Limited
28

---

2021 Interim Results Presentation
24 FEBRUARY 2021

2021 INTERIM RESULTS PRESENTATION
2
24 FEBRUARY 2021
Highlights
Nationwide EV
charging network
announced
consistent interim
dividend
13% NZ electricity
sales volume growth
NZ residential prices
at 8-year low
1
13% growth in
Australian customer
numbers
6% growth in New
Zealand customer
numbers
NZAS extended exit
agreed
process heat
electrification and
Datagrid partnership
23% Auselectricity
sales volume growth
1
Ministry of Business, Innovation & Employment household sales-based electricity cost data

Social
KidsCan
Kākāpō
Power Up
community fund
Energy hardship
Governance
Integrated reporting
TCFD, CDP
GHG emissions
Green finance
Environmental
Emissions halved by
2030
Forever Forests
Certified renewable
energy
Process heat
electrification
2021 INTERIM RESULTS PRESENTATION
3
24 FEBRUARY 2021
Sustainability focus

2021 INTERIM RESULTS PRESENTATION
4
24 FEBRUARY 2021
Progress on strategy
Strategic
initiative
Highlights
Challenges
Champion
Competitive markets
Sustainability
Climate action
Optimise
Trading & asset management
Re-consenting
Financing
Grow
Retail
Generation
Flux
Sustainability leadership
Lower real customer prices
Final TPM decision
CCC draft report
2025 Waitaki reconsent
progress
NZAS extended exit agreement
Green financing
Growth in NZ and Ausretail
businesses
Customer support during
COVID
Harapakiconstruction
New NSW wind option
Gas supply uncertainty
Speed of RMA reform and
generation consenting
Dry year support beyond current
thermal fuels
New South Island load beyond
NZAS
Timing of thermal plant
retirement
Future COVID uncertainty
Volatile Auswholesale prices
E.ON’s closure of PowershopUK

5
Financial performance
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

6
Dividends
Interim ordinary dividend declared of 5.70 cps,
86% imputed, unchanged from 1H FY20
Dividend reinvestment plan under consideration,
no decision made yet
Dividendsdeclared1H FY211H FY20
centsper shareimputationcentsper shareimputation
Ordinarydividends5.7086%5.7086%
Capitalmanagement special dividends-2.440%
To t a l5.708.14
Source: Meridian
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
5.33
5.38
5.705.705.70
2.44
2.44
2.442.44
7.77
7.82
8.148.14
5.70
0
2
4
6
8
10
20162017201820192020
CPS
Six Months ended 31 December
Interim dividend declared
Ordinary dividendSpecial dividendTotal

540
598
+40
+29
-9
+27
-131
+130
-142
-2
0
300
400
500
600
700
800
Energy
Margin 31
Dec 19
Mass market
sales
C&I salesNZAS salesGeneration
spot
revenue
Cost to
supply
customers
Derivative
sales and
purchases
Cost of
derivative
sales and
purchases
Net VASOtherEnergy
Margin 31
Dec 20
$M
New Zealand energy margin movement
7
New Zealand energy margin
Customer and sales volume growth across all
segments
Lift in both mass market and corporate average
pricing
Reduced physical generation
Financial contract, spot generation and hedging
revenues all reflected higher wholesale prices
Those higher prices and sales volumes also
increased costs in the portfolio
Resulting lower net physical and net financial
positions drove a 10% reduction in energy margin
Refer to pages 36-37 for a further breakdown of New Zealand energy margin
Source: Meridian
2021 INTERIM RESULTS PRESENTATION
Physical
-$44M
Financial
-$14M
24 FEBRUARY 2021

New Zealand customers
6% sales volume growth in residential and 14% in
small medium business
4% higher mass market average sales price
Mass market revenue increased $40M (16%)
14% growth in corporate sales volume at a 6%
higher average sales price
Corporate sales revenue increased $29M (21%)
8
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
CustomersalesAverage price
($/MWh)
Total sales
volume (GWh)
North Island
sales volume
(GWh)
South Island
sales volume
(GWh)
1H FY21
Residential848463385
Small medium business624366258
Agricultural674185489
Large business289182107
Total mass market$1212,4351,1971,238
Corporate$981,6841,133551
1H FY20
Residential801426375
Small medium business546311235
Agricultural592173419
Large business24816187
Total mass market$1162,1871,0711,116
Corporate$931,4741,042432

44
93
124
101
113
0
50
100
150
20162017201820192020
$/MWh
Six Months ended 31 December
NZ average generation price
702
640
1,449
1,491
968
933
1,132
-500
0
500
1,000
1,500
2,000
Jul-20Aug-20Sep-20Oct-20Nov-20Dec-20Jan-21
GWh
Six Months ended 31 December
Combined catchment inflows
actualspillmonth average
New Zealand generation
7% lower generation in 1H FY21
Despite above average inflows in 1H FY21, low
starting storage and lower than average inflows
since October 2020 have reduced generation
Elevated wholesale prices reflect current dry
conditions and continued gas supply concerns
2H FY21 will see outages on Roxburgh-Livingstone
line as part of CUWLP
9
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
Source: Meridian
Source: Meridian

0
1,000
2,000
3,000
4,000
5,000
6,000
Jan-19Apr-19Jul-19Oct-19Jan-20Apr-20Jul-20Oct-20
PowershopAustralia net customer changes
electricitygas
10
Australian customers
3% growth in electricity customers and 8% growth
in gas customers in 1H FY21
Acquisition rates impacted by introduction of
default market offers and COVID-19
Those impacts, combined with lower market gas
prices and weaker electricity demand have
weighed on retail electricity prices
Source: Meridian
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
49
61
70
97
92
22
37
82
85
71
98
152
182
0
50
100
150
200
20172018201920202021
$M
Financial Year ended 30 June
Australian contracted sales revenue
InterimFinal half-yearTotal
Source: Meridian

59
65
+8
+3
-19
+4
-32
+31
-1
0
10
20
30
40
50
60
70
80
90
Energy
Margin 31
Dec 19
Electricity
sales
Gas salesGeneration
spot revenue
Cost to supply
customers
Derivative
sales and
purchases
Cost of
derivative
sales and
purchases
OtherEnergy
Margin 31
Dec 20
$NZ M
Australian energy margin movement
11
Australian energy margin
Higher electricity and gas sales offset by lower
average prices
Improved hydro generation from the end of the
multi-year drought; total physical generation 6%
higher than 1H FY20
Significantly lower average generation prices with
wind generation price 36% lower
The immediate impact of these lower prices was
mitigated by the Meridian Australia’s vertically
integrated position in the market
The result was a modest impact on the financial
position
Physical
-$4M
Financial
-$1M
Refer to page 40 for a further breakdown of Australian energy margin
Source: Meridian
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

101
106
116
126126
109
116
127
132
210
222
243
258
0
50
100
150
200
250
300
350
20172018201920202021
$M
Financial Year ended 30 June
Adjusted operating costs
1
InterimFinal half-yearTotal
266
↑
261
140
↑
135
12
Operating costs
Operating costs flat compared to 1H FY20
Modest growth in Australia and Flux spend, offset
by lower NZ asset maintenance
FY21 operating costs expected near the middle of
the $261M to $266M range previously indicated
FY21 capex expected at the higher end of the
$70M to $80M range previously indicated
Source: Meridian
Total 31 December 2019 $143m
Total 31 December 2018 $135m
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
1
FY17-FY19 adjusted for IFRS 16. Electricity metering expenses excluded, now classified into Gross Margin

13
EBITDAF
Second highest level of interim EBITDAF
1
in 1H
FY21
9% lower than the 1H FY20 record earnings
Lower transmission costs reflect lower WACC
based charging in the new Regulatory Control
Period
2H FY21 has started with relatively dry conditions
and higher wholesale prices
2021 INTERIM RESULTS PRESENTATION
Source: Meridian
24 FEBRUARY 2021
1
Earnings before interest, tax, depreciation, amortisation, changes
in fair value of hedges and other significant items
354
329
389
465
422
303
337
449
389
657
666
838
854
0
200
400
600
800
1,000
20172018201920202021
$M
Financial Year ended 30 June
Group EBITDAF
InterimFinal half-yearTotal
422
465
-58
-6
-1
+24
-2
0
200
300
400
500
EBITDAF 31
Dec 19
NZ energy
margin
Aus energy
margin
Other revenueTransmission
expenses
Metering
expenses
Operating
expenses
EBITDAF 31
Dec 20
$M
Group EBITDAF movement
Source: Meridian
Source: Meridian

131
104
144
184
156
90
102
189
133
221
206
333
317
0
50
100
150
200
250
300
350
400
20172018201920202020
$M
Financial Year ended 30 June
Underlying npat
InterimFinal half-yearTotal
14
Below EBITDAF
1
Net profit before tax
2
Net profit after tax adjusted for the effects of non-cash fair value movements and other one-off items. A reconciliation of Underlying NPAT is on page 43
Source: Meridian
3% decrease in depreciation
$63M increase in NPBT
1
from fair value of
electricity hedges from termination of several
hedges and rising forward electricity prices ($6M
decrease in 1H FY20)
$25M increase in NPBT from fair value of treasury
instruments from rising interest rates ($6M
decrease in 1H FY20)
Significant 1H FY21 increase in NPAT (+19%)
15% decrease in Underlying NPAT
2
largely from
lower EBITDAF
Lower EBITDAF also lifted Net Debt EBITDAF to 2.0
times
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

15
Markets and regulation
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

16
New Zealand wholesale prices
Wholesale electricity market continues to price in gas
supply concerns
Notably OMV’s December 2020 announcement of
lower 2021 forecast Pohokuradelivery
Following Rio’s 9 July 2020 contract termination, the
market priced in increased likelihood of a longer exit
period
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
30
50
70
90
110
130
1 Jul
20
8 Jul
20
15
Jul
20
22
Jul
20
29
Jul
20
5
Aug
20
12
Aug
20
19
Aug
20
26
Aug
20
2
Sep
20
9
Sep
20
16
Sep
20
23
Sep
20
30
Sep
20
7
Oct
20
14
Oct
20
21
Oct
20
28
Oct
20
4
Nov
20
11
Nov
20
18
Nov
20
25
Nov
20
2
Dec
20
9
Dec
20
16
Dec
20
23
Dec
20
30
Dec
20
6 Jan
21
13
Jan
21
20
Jan
21
27
Jan
21
$/MWh
BENMORE QUARTERLY ASX FUTURES SETTLEMENT PRICE
2021 Calendar year2022 Calendar year2023 Calendar year2024 Calendar year
Source: Electricity Authority
NZAS
contract
termination
Labour’s ‘Just
Southland’
transition
Meridian FY20
annual results
Pohokura
2021
downgrade
NZAS
extended
exit
Beach JV
surrenders
permit
OMV
abandons
permits
75
72
53
68
58
39
0
20
40
60
80
201620172018201920202021
PJ
Calendar Year ended 31 December
Pohokura gas delivery
actualforecast
Source: Meridian

12,930
9,143
2,642
14,212
396
0
4,000
8,000
12,000
16,000
ResidentialCommercialAgricultureIndustrialOther
GWh
Annual national consumption (Sep 2020)
17
New Zealand demand
Demand decline of 1.2% in 2020
Alert Level 4 drove a short, sharp decline in
national demand
Subsequently, demand returned to more average
levels
That return saw higher residential and lower
commercial and industrial demand
Source: Ministry of Business, Innovation and Employment
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
+283GWh
+2.2%
-379GWh
-4.0%
+246GWh
+10.3%
-628GWh
-4.2%
-55GWh
-12.2%
600
650
700
750
800
850
900
05-Jan05-Mar05-May05-Jul05-Sep05-Nov
GWh
NATIONAL DEMAND (WEEKLY)
Range (2015-2019)5 year average20192020
Source: Electricity Authority
31-Dec
Year on
year
change

18
Renewable development - Harapaki
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
41 turbines x 4.3 MW
176 MW
542 GWh p.a. (P50 yield)
$395m capital investment
36months construction time
~$35m EBITDAF p.a.
1
$11 per MWh operating cost
35%capacity factor
94% price participation
145m tip height
mid 2024 final commissioning
initially funded through bank
facilities
260 jobs on site (peak)
23 km roading
232 km cabling
860,000 m
3
cut
18,000 m
3
concrete
1
stand alone operation assuming
~$67/MWh received for generation

Hume battery
A 20MW battery energy storage system co-located
with existing Hume power station
Development approval now granted by NSW
Government
Grid connection and land tenure progressing
Potential investment decision in FY21
Rangoon
Proposed 130MW wind farm and battery storage
system in northern NSW
Development approval and grid connection in
progress
Potential investment decision in FY22
19
Renewable development - Australia
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

UTS
In December 2020, the EA confirmed a final
decision relating to 3-27 December 2019
The EA found a confluence of factors led to a
highly unusual period of wholesale market
operation
The EA is expecting to release a preliminary
‘actions to correct’ paper for consultation by end
of March 2021
20
New Zealand policy and regulation
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

TPM
Transpowerconfirmed NZAS contract extension will
not affect its development of the new TPM
New TPM expected to be in place by April 2023 with
transitional cap on charges
Climate Change Commission’s draft report
Ambitious and necessary emissions targets
Proposes a new national energy strategy to deliver
transport and industry decarbonisation
21
New Zealand policy and regulation
2021 INTERIM RESULTS PRESENTATION
24 FEBRUARY 2021
Expects gas to play a role in electricity generation mix until at least 2035
Outlines an immediate ETS lift to $70, then lifting to $140 by 2023
Electricity demand could increase by up to two thirds in the next three decades

22
NZAS extended exit announcement
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
Revised NZAS contract
400MW
172MW
14Jan
2021
1 Jan
2022
1 Jan
2023
1 Jan
2024
31 Dec
2024
no termination right (except terminal force majeure)
NZAS termination right with 6 months notice (terminal FM also applies)
Meridian portfolio response
Swaption
CUWLP
NI battery
Process heat
IT infrastructure
Green hydrogen
final design
consenting
build
feasibility
Scoping and feasibility
Datagrid(60MW to 100MW), execution of other opportunities
scoping
procurement
execution
potential execution
develop further opportunities

23
Flux
E.ON have announced it intends to close its PowershopUK business during the 2021 calendar year,
through npower, a client of Flux Federation
Settlement terms with npowerto be finalised
78% of Meridian customers either migrated or about to commence migration onto Flux
Meridian customer migration still expected to be completed by September 2021
2021 INTERIM RESULTS PRESENTATION
24 FEBRUARY 2021

24
Closing comments
Customer growth continues in New Zealand and
Australian markets
New Zealand relatively high wholesale prices
reflecting below average hydro storage and
continuing gas supply concerns
Australian wholesale prices reflecting weaker
electricity demand and gas oversupply
January 2021 operating results reflected a
continuation of these factors
January 2021 also saw revised NZAS pricing (from
14
th
January)
CCC’s draft advice offers a bold pathway to a low
carbon future
Harapakiwindfarm is Meridian’s next step
supporting this future
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

25
Additional information
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

26
Debt and funding
2021 INTERIM RESULTS PRESENTATION
December 2020 total borrowings of $1,679M
Committed bank facilities of $755M, of which
$525M were undrawn
$200M of commercial paper issued on an
uncommitted basis
Net debt to EBITDAF at 2.0x
24 FEBRUARY 2021
33%
3%
24%
2%
29%
9%
Sources of Funding -31 December 2020
NZ$ bank facilities
drawn/undrawn
EKF - Danish export credit
Retail Bonds
Floating rate notes
US private placement
Commercial paper
57
361
235
160
210
560
75
150
100
0
100
200
300
400
500
600
202120222023202420252026+
$M
Calendar Year ended 31 December
Debt maturity profile as at 31 December 2020
Drawn debt maturing (face value)Available facilities maturing

27
Capital expenditure
2021 INTERIM RESULTS PRESENTATION
Consistent level of stay in business capex
Largely consists of system and generation asset
enhancement spend
Total capex for 1H FY21 of $41M
Expecting FY21 Group capex of between $70M
and $80M
$50M to $55M of stay in business capex
$20M to $25M of currently approved
investment spend
24 FEBRUARY 2021
20
17
23
24
20
28
30
25
21
48
47
48
45
0
10
20
30
40
50
60
70
80
20172018201920202021
$M
Financial Year ended 30 June
Stay in business capital expenditure
InterimFinal half-yearTotal

28
Segment results
Flux Federation and PowershopUK included in ‘other and unallocated’ segment
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

103
106
109
115
116
115
119
119
120
121
59
66
74
89
96
0
100
200
300
400
Jun-17Jun-18Jun-19Jun-20Dec-20
ICP (000)
New Zealand customer connections
Meridian North IslandMeridian South IslandPowershop
29
New Zealand retail
Customers
3% increase in customers since June 2020
Mass market segment
6% increase in residential volumes
14% increase in small business volumes
16% increase in large business volumes
14% increase in agri volumes
4% increase in average sales price
Corporate segment
14% increase in volumes
6% increase in average sales price
Total
277
291
302
324
333
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
1,886
2,027
1,936
2,187
2,435
911
1,114
1,063
1,474
1,684
2,797
3,141
2,999
3,661
4,119
0
1,000
2,000
3,000
4,000
5,000
20162017201820192020
GWH
Six Months ended 31 December
New Zealand retail sales volume
Residential, SMB, AgriCorporateTotal

30
New Zealand hydrology
Inflows
1H FY21 inflows were 105% of average
January 2021 inflows were 84% of average
Storage
Meridian’s Waitaki storage as of 31 December
2020 was 73% of average
By 31 January 2021, this position was unchanged
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
0
3,000
6,000
9,000
200720082009201020112012201320142015201620172018201920202021
GWH
Financial
year
Meridian’s combined catchment inflows
December YTD87 year average
0
500
1,000
1,500
2,000
2,500
3,000
1-Jan1-Feb1-Mar1-Apr1-May1-Jun1-Jul1-Aug1-Sep1-Oct1-Nov1-Dec
GWH
Meridian’s Waitaki storage
Average 1979-201520162017201820192020
1- Jan

31
New Zealand generation
Volume
1H FY21 generation was 7% lower than 1H FY20,
with lower hydro and lower wind generation
Price
1H FY21 average price Meridian received for its
generation was 12% higher than 1H FY20
1H FY21 average price Meridian paid to supply
customers was 14% higher than 1H FY20
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
6,296
5,289
5,925
6,408
5,911
733
648
621
779
765
7,029
5,937
6,546
7,187
6,676
0
2,000
4,000
6,000
8,000
20162017201820192020
GWH
Six Months ended 31 December
New Zealand generation
HydroWindTotal
44
93
124
101
113
0
20
40
60
80
100
120
140
20162017201820192020
$/MWH
Six Months ended 31 December
NZ average generation price

32
Australian retail
Customers
4% growth in electricity customers since June
2020
8% growth in gas customers since June 2020
Sales volume
23% growth in electricity sales volume in 1H FY21
28% growth in gas sales volume in 1H FY21
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
97
97
110
136
141
23
38
41
0
50
100
150
200
Jun-17Jun-18Jun-19Jun-20Dec-20
Australian customer connections
ElectricityGas
241
289
280
329
405
0
50
100
150
200
250
300
350
400
450
500
20162017201820192020
GWH
Six Months ended 31 December
Australian retail sales volume

33
Australian generation
Volume
1H FY21 generation was 7% higher than 1H FY20
1H FY21 wind generation was 4% lower than 1H
FY20
1H FY21 hydro generation was 47% higher than 1H
FY20
Price
1H FY21 average price Meridian received for its
wind generation was 36% lower than 1H FY20
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
309
305
296
290
278
123
77
113
309
305
419
367
391
0
100
200
300
400
500
600
20162017201820192020
GWH
Six Months ended 31 December
Australian generation
WindHydroTotal
131
170
144
118
75
0
30
60
90
120
150
180
20162017201820192020
$A/MWh
Six Months ended 31 December
AUS average wind generation price

422
465
+69
+10
+27
-154
-8
-2
-6
-1
+24
-2
0
100
200
300
400
500
600
EBITDAF 31 Dec
2019
Retail
contracted sales
Wholesale
contracted sales
Generation spot
revenue
Cost to supply
customers
Net cost of
hedges
Virtual asset
swaps
Other market
costs
Australian
energy margin
Other revenueTransmission
expenses
Metering
expenses
Employee &
other operating
expenses
EBITDAF 31 Dec
2020
$M
Movement in EBITDAF
34
1H FY21 EBITDAF
New Zealand energy margin -$58M
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

35
EBITDAF to NPAT
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
00
156
227
422
-153
-10
-42
-61
+88
0
+10
-27
100
150
200
250
300
350
400
450
500
EBITDAFDepreciation and
amortisation
Premiums paid on
electricity options net
of interest
Net finance costsTaxUnderlying
NPAT
Net change in fair
value of
hedges/instruments
Loss on sale of
assets/impairments
Premiums paid on
electricity options net
of interest
TaxNPAT
$M
1H FY21 EBITDAF TO NPAT RECONCILIATION

36
Energy margin
A non-GAAP financial measure representing
energy sales revenue less energy related
expenses and energy distribution expenses
Used to measure the vertically integrated
performance of the retail and wholesale
businesses
Used in place of statutory reporting which
requires gross sales and costs to be reported
separately, therefore not accounting for the
variability of the wholesale spot market and
the broadly offsetting impact of wholesale
prices on the cost of retail electricity purchases
Defined as
Revenues received from sales to customers net of distribution
costs (fees to distribution network companies that cover the costs
of distribution of electricity to customers), sales to large industrial
customers and fixed price revenues from financial contracts sold
(contract sales revenue)
The volume of electricity purchased to cover contracted customer
sales and financial contracts sold (cost to supply customers)
The fixed cost of derivatives used to manage market risks, net of
spot revenue received from those derivatives (net cost hedging)
Revenue from the volume of electricity that Meridian generates
(generation spot revenue)
The net margin position of virtual asset swaps with Genesis Energy
and Mercury New Zealand
Other associated market revenues and costs including Electricity
Authority levies and ancillary generation revenues, such as
frequency keeping
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

37
New Zealand energy margin
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
540
295
165
256
754
-834
-117
-171
205
-10
1
-4
0
300
600
900
1,200
1,500
Mass market
sales
C&I salesFinancial
contract sales
(incl NZAS)
Generation
spot revenue
Cost to supply
customers
Cost to supply
financial
contracts
Hedging fixed
costs
Hedging spot
revenue
Contract close
outs
VAS marginsMarket costsEnergy Margin
$M
New Zealand energy margin

38
New Zealand energy margin
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
540
598
+40
+29
+10
+27
-131
-23
-114
+111
-5
-2
0
0
200
400
600
800
Energy Margin
31 Dec 19
Mass market
sales
C&I salesFinancial
contract sales
(incl NZAS)
Generation
spot revenue
Cost to supply
customers
Cost to supply
financial
contracts
Hedging fixed
costs
Hedging spot
revenue
Contract close
outs
VAS marginsMarket costsEnergy Margin
31 Dec 20
$M
New Zealand energy margin movement

39
New Zealand energy margin
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

40
Australian energy margin (AUD)
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

41
Fair value movements
Meridian uses derivative instruments to manage
interest rate, foreign exchange and electricity
price risk
As forward prices and rates on these instruments
move, non-cash changes to their carrying value
are reflected in NPAT
Accounting standards only allow hedge accounting
if specific conditions are met, which creates NPAT
volatility
$63M increase in NPBT from fair value of
electricity hedges from changing forward
electricity prices ($6M decrease in 1H FY20)
$25M increase in NPBT from fair value of treasury
instruments ($6M increase in 1H FY20)
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021
-21
-26
-5
-161
88
-250
-200
-150
-100
-50
0
50
100
150
FY17FY18FY19FY201H FY21
$M
Change in fair value of financial instruments

42
Income statement
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

43
Underlying NPAT reconciliation
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

44
Cash flow statement
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

45
Balance sheet
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

46
Glossary
Hedging volumesbuy-side electricity derivativesexcludingthe buy-side of virtual asset swaps
Average generation pricethe volume weighted average price received for Meridian’s physical generation
Average retail contracted sales pricevolume weighted average electricity price received from retail customers, less distribution costs
Average wholesale contracted sales pricevolume weighted average electricity price received from wholesale customers(including NZAS) and financial contracts
Combined catchment inflowscombined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes
Cost of hedgesvolume weighted average price Meridian pays for derivatives acquired
Cost to supply contracted salesvolume weighted average price Meridian pays to supply contracted customer sales and financial contracts
Contracts for Difference (CFDs)an agreement betweenparties to pay the difference between the wholesale electricity price and an agreed fixed price for a specified volume of
electricity. CFDs do not result in the physical supply of electricity
Customer connections (NZ)number of installation control points, excluding vacants
FRMPfinancially responsible market participant
GWhgigawatt hour. Enough electricity for 125 average New Zealand households for one year
Historic average inflowsthe historic average combined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes over the last 84 years
Historic average storagethe historic average level of storage in Meridian’s Waitaki catchment since 1979
HVDChigh voltage direct current link between the North and South Islands of New Zealand
ICPNew Zealand installation control points, excluding vacants
ICP switchingthe number of installation control points changing retailer supplier in New Zealand, recorded in the month the switch was initiated
MWhmegawatt hour. Enough electricity for one average New Zealand household for 46 days
National demandElectricity Authority’s reconciled grid demand
www.emi.ea.govt.nz
NZASNew Zealand Aluminium SmeltersLimited
Retail sales volumescontract sales volumes to retail customers, including both non half hourly and half hourly metered customers
Financial contract salessell-side electricity derivatives excluding thesell-side of virtual asset swaps
TJTerajoules
Virtual Asset Swaps(VAS)CFDs Meridian has with Genesis Energy and Mercury New Zealand. They do not result in the physical supply of electricity
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

47
Disclaimer
The information in this presentation was prepared by Meridian Energy with
due care and attention. However, the information is supplied in summary
form and is therefore not necessarily complete, and no representation is
made as to the accuracy, completeness or reliability of the information. In
addition, neither the company nor any of its directors, employees,
shareholders nor any other person shall have liability whatsoever to any
person for any loss (including, without limitation, arising from any fault or
negligence) arising from this presentation or any information supplied in
connection with it.
This presentation may contain forward-looking statements and projections.
These reflect Meridian’s current expectations, based on what it thinks are
reasonable assumptions. Meridian gives no warranty or representation as to
its future financial performance or any future matter. Except as required by
law or NZX or ASX listing rules, Meridian is not obliged to update this
presentation after its release, even if things change materially.
This presentation does not constitute financial advice. Further, this
presentation is not and should not be construed as an offer to sell or a
solicitation of an offer to buy Meridian Energy securities and may not be
relied upon in connection with any purchase of Meridian Energy securities.
This presentation contains a number of non-GAAP financial measures,
including Energy Margin, EBITDAF, Underlying NPAT and gearing. Because
they are not defined by GAAP or IFRS, Meridian's calculation of these
measures may differ from similarly titled measures presented by other
companies and they should not be considered in isolation from, or construed
as an alternative to, other financial measures determined in accordance with
GAAP. Although Meridian believes they provide useful information in
measuring the financial performance and condition of Meridian's business,
readers are cautioned not to place undue reliance on these non-GAAP
financial measures.
The information contained in this presentation should be considered in
conjunction with the company’s condensed financial statements for the six
months ended 31 December 2020, available at:
www.meridianenergy.co.nz/investors
All currency amounts are in New Zealand dollars unless stated otherwise.
2021 INTERIM RESULTS PRESENTATION24 FEBRUARY 2021

---

Investor Letter. AFor the six months ended 31 December 2020.
For the six months ended
31 December 2020.
Investor
Let ter.

Investor Letter. 1For the six months ended 31 December 2020.
Progress on strategy
Highlights
Challenges
• New South Island
load beyond NZAS
• Timing of thermal
plant retirement
• Future COVID-19
uncertainty
• Volatile Australian
wholesale prices
• E.ON’s closure
of Powershop UK
Champion
Competitive
markets
Sustainability
Climate action
Optimise
Trading and asset
management
Re-consenting
Financing
Grow
Retail
Generation
Flux
• Gas supply
uncertainty
• Speed of RMA
reform and
generation
consenting
• Dry-year support
beyond current
thermal fuels
• Growth in NZ and
Australian retail
businesses
• Customer support
during COVID-19
• Harapaki
construction
• New NSW
wind option
• Sustainability
leadership
• Lower real
customer prices
• Final Transmission
Pricing Methodology
(TPM) decision
• Climate Change
Commission (CCC)
draft advice
• 2025 Waitaki
re-consent progress
• New Zealand
Aluminium Smelter
(NZAS) extended
exit agreement
• Green financing
Strategic theme

Investor Letter. 2For the six months ended 31 December 2020.
The six months ended 31 December
2020 saw a 19% increase in net profit,
mostly as a result of positive changes
in the net value of hedge instruments.
Excluding these hedge value
movements, Meridian has reported
a 9% decrease in EBITDAF
1
compared
to the prior corresponding period.
The decline in EBITDAF was largely
driven by a 7% fall in generation
production due to low inflows to
our South Island hydro catchments
since October 2020. Also, lower
wholesale prices in Australia negatively
affected Meridian Energy Australia’s
interim earnings. Partially offsetting
these negative environmental factors
was continued growth in customer
numbers and sales volumes in both
New Zealand and Australia. We
note that the electricity sector in
New Zealand continues to deliver
value for customers, and residential
prices in real terms are at their
lowest level in the past eight years.
The Board has announced an
interim ordinary dividend of 5.70
cents per share, consistent with
last year’s interim dividend.
The interim ordinary dividend will
be paid on 16 April 2021. Meridian’s
balance sheet remains in a strong
position, with the company maintaining
a BBB+ credit rating as defined by the
agency Standard & Poor’s. See the
interim results financial commentary
for more of Meridian’s results.
www.meridianenergy.co.nz/investors/
reports-and-presentations/interim-
results-and-reports
Tīwai Point Smelter
Last July Meridian’s largest customer,
New Zealand Aluminium Smelter
(NZAS), announced that it would be
exiting New Zealand in August 2021.
Subsequently, and recognising the
disruption that this might create
for our shareholders and the wider
economy, we worked hard to come
to an agreement with NZAS that
would see it stay until December 2024.
We were pleased to announce such an
outcome to the market in January and
we believe that it is value enhancing
for the smelter, our shareholders
and the Southland community.
Meridian has always planned for
the eventual exit of NZAS. We are
excited about the opportunities
that we now have to accelerate
decarbonisation, and we are actively
developing new growth opportunities.
New South Island demand
Given this agreement, the next
four years will see Meridian focus
on encouraging new demand in
Southland and the lower South Island.
We have a number of new demand
options that are progressing well.
We have completed high-level
assessments of options to convert
fossil fuel heat processes to electricity.
This has included looking at small-
and large-scale opportunities in
a number of industries. There is
real interest among these sectors
in decarbonising and Meridian is
pleased to be playing a part to make
this happen. We expect to announce
the first of these opportunities soon.
Late last year Meridian announced,
in partnership with Contact Energy,
a $2 million feasibility study of green
hydrogen. The study will draw on
expertise from New Zealand and
around the world, and will investigate
the export potential, value chain, policy
approaches, technical requirements,
environmental considerations and
practical issues of green hydrogen
production. It will also examine the
potential dry-year reserve opportunity.
We believe that hydrogen could give
New Zealand a superior, low-cost
alternative for balancing supply and
demand in dry years. It could provide
a large amount of New Zealand’s
dry-year reserve at a fraction of the
cost of building new hydro power
stations. Having a large amount of
demand with the flexibility to turn it
down or off during a dry-year is likely to
be far more cost effective and reliable
than building new generation that
only runs during relatively infrequent
droughts. As such, we think hydrogen
production could be of huge benefit
to New Zealand in managing the
security of our energy supply.
In addition, when it comes to green
hydrogen exports, New Zealand
should have a real competitive
advantage given our increasing
levels of renewable energy produced.
A major hydrogen plant in Southland
could ensure that the region’s next big
industry is renewable energy export
in the form of green hydrogen, and
a large-scale local plant could also
open decarbonisation possibilities
for domestic hydrogen-powered
industries such as heavy transport.
We have also been working with the
Datagrid team since last August on
what has the potential eventually
to be a 100-megawatt datacentre
in Southland, connected by a new
fibre-optic cable to the east coast
of Australia. It is progressing ahead
of plan and the Datagrid team have
secured land options and commenced
engineering work. The next significant
step will be their confirming their
first customer.
Harapaki decision
This month the Meridian Energy
Board has approved the construction
of Meridian’s Harapaki wind farm.
The new $395 million wind farm in
Hawke’s Bay was deferred last July
due to NZAS announcing its intention
to exit New Zealand.
But given that NZAS has agreed to
a four-year exit deal, Meridian is now
confident that Harapaki will support
our business’s growth plans.
The Harapaki wind farm will be
New Zealand’s second-largest wind
farm, with 41 turbines generating
176 megawatts of renewable energy,
enough to power more than 70,000
average households. The construction
will take around three years and is
expected to create 260 new jobs.
It will also help boost New Zealand’s
ability to meet its climate change
commitments and accelerate the
transformation of the economy to
clean energy sources.
1. A non-GAAP financial measure representing earnings before interest, tax, depreciation, amortisation, changes in fair value of hedges and other significant items.’

Investor Letter. 3For the six months ended 31 December 2020.
Undesirable trading situation
In late December 2020, the
Electricity Authority released
a final decision confirming an
undesirable trading situation
between 3 and 27 December 2019.
The Authority found a confluence
of factors had led to a highly
unusual period of wholesale
market operation.
The Authority is intending to publish a
preliminary “actions to correct” paper
for consultation in late March 2021.
We have taken lessons from this
process. We accept that even though
the scale of flooding we were dealing
with was exceptional, we will need to
do better in future, and we will remain
especially vigilant at times of spill.
We also want to support the Authority
to ensure the market we work in is
continually improved to maintain its
world-class reputation of delivering
for consumers.
We remain committed to generating
100% renewable energy, and to caring
for our customers and the environment.
Transmission
The Authority’s reform of
Transmission Pricing Methodology
(TPM) continues, with changes
expected to be in place by
April 2023.
In January 2021 Transpower
indicated that its development
of the new TPM and the Clutha
Upper Waitaki Lines Project are
both unaffected by Rio Tinto’s
announcement regarding the
future of NZAS.
Hydrology
Inflows since October 2020 have
been below average. As a result,
South Island storage is now well
below average.
In contrast, the end of a multi-year
drought saw Australian generation
47% higher than the same period
last year.
Flux UK
E.ON has announced that it intends
to close its Powershop UK business,
a client of Flux Federation, during
the 2021 calendar year. Flux is
now considering new potential
opportunities.
The project to migrate all Meridian’s
customer base to the Flux platform is
progressing well and is forecast to be
completed during the third quarter
of this calendar year.
Gas supply influences
In New Zealand, declining delivery
from the key Pohokura gas field
has tightened markets and pushed
wholesale electricity prices higher.
In Australia, a combination of lower
demand and higher domestic gas
supply has pushed wholesale electricity
prices lower.
In both countries, future moves
away from coal and the use of gas
as a transition fuel towards highly
renewable energy systems will likely
cause disruption to current markets.
To date New Zealand has relied
on having some coal and gas-fired
generation available to keep the lights
on when it does not rain too much and
our hydro storage lake levels get low.
While our industry is working hard
to find alternatives to coal and
gas generation, and good options
are starting to emerge, eg. flexible
hydrogen, those options will take
some time to develop. It is likely that
New Zealand will need a relatively
small amount of gas and/or coal
generation for at least another decade.
In short, the industry needs to migrate
away from fossil-fuel-based generation
while still relying on these in very dry
years. Market-based solutions need
to be found to ensure the providers
of that generation have enough
certainty to continue to invest in
a reliable level of service.

Investor Letter. 4For the six months ended 31 December 2020.
Committed to combating
climate change
As a 100% renewable energy
generator that is committed
to protecting the environment,
Meridian is supportive of the
Climate Change Commission’s
and Government’s recent
announcements to further
accelerate our efforts to
combat climate change.
We believe that the electricity
sector has a huge part to play
in decarbonising our economy
and supporting New Zealand
businesses and individuals to
make the changes they need.
We know that we play a part in
bringing our customers along too
and that we need to make sure we
support all our customers, from large
businesses that need to invest in
technology and transition from fossil
fuels, to everyday New Zealanders
who are more and more likely to
adapt their behaviour and drive
this change.
These are not just statements.
We have been working hard for
many years to ensure that our
own house is in order. At the heart
of Meridian’s offering is a deep
and all-encompassing commitment
to being a sustainable partner for
shareholders, stakeholders and
customers.
Since we made the commitment
to generate electricity only from
renewable sources, we have developed
more new renewable electricity than
any other generator in New Zealand.
In the past 15 years Meridian has
invested around $2.2 billion in new
renewable electricity generation that
removes 1.9 to 4.6 million tonnes of
carbon from the environment
ever y year.
For several years now we have
used the Integrated Reporting
Framework for our annual reports,
and we have reported our greenhouse
gas emissions since 2013. We also
report our climate-related risks
through the Task Force on Climate-
related Financial Disclosures and
Carbon Disclosure Project frameworks.
Last year we launched our Green
Finance programme and committed
to halving our own emissions by 2030.
To achieve this we will continue to grow
our own carbon sinks by planting native
and exotic forests, convert 100% of our
passenger fleet to electric, and continue
to support our communities through
our Power Up funds and by being the
Principal Partner of KidsCan. We are
getting recognition from international
shareholders in this regard, with the
BlackRock Sustainable Energy Fund
becoming a substantial shareholder
in the past few months.
Our people
In the past six months our executive
team have continued to go from
strength to strength. We are very
fortunate to have such a great
talent pool at Meridian.
On 1 January 2021 Guy Waipara took
on the newly created role of General
Manager Development. Guy’s job is
to progress a range of opportunities
to support New Zealand industries
in reducing their dependence on
fossil fuels for process heat, and to
grow demand for electricity in the
South Island (given the impending
NZAS exit).
Guy has taken on the role as a
12-month secondment, and as a
result Mat Bayliss and Richard Griffiths
have been appointed to the role of
(Acting) General Manager Generation,
sharing a 12-month term and each
taking the lead for six months.
Both Mat and Richard have worked
for Meridian for decades and bring a
wealth of asset management expertise
and leadership to the executive team.
Mat will take the lead for the first
six months and Richard will take the
second half of the 12-month term.
In late January 2021, Jason Stein,
Chief Executive of Meridian Energy
Australia and Powershop Australia,
made the tough decision to step
down from his role. Due to the
ongoing impacts of COVID-19 on
travel and personal arrangements,
Jason has been unable to relocate
with his family from New Zealand
to Australia.
Under Jason’s leadership Powershop
Australia has significantly increased
Australian customer numbers and has
refreshed its Australian renewables
strategy. This work has set a solid
foundation for future growth in
Australia. Management will now
seek to commence a recruitment
process. Jason will continue until
mid-2021 to allow an orderly transition
of accountabilities for Meridian’s
Australian business.
Closing thoughts
The future is of course unknown.
However, we are proud to be doing
things that we feel will positively
shape the opportunities not only
for our shareholders but also for
our employees, our customers
and our communities.
We are in for an exciting and
challenging few years as we look to
invest in our business and support
New Zealand’s and Australia’s efforts
to reduce carbon emissions while
maintaining high standards of living
for us all.
On behalf of the Board and the
executive team, we would like to thank
our shareholders, our customers and
our stakeholders for their continued
support to help Meridian deliver clean
energy for a fairer and healthier world.