Investment in scale, higher generation drive results

Results announcement





Results for announcement to the market
Name of issuer Mercury NZ Limited (MCY)
Reporting Period 6 months to 31 December 2022
Previous Reporting Period 6 months to 31 December 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,299,000 +49%
Total Revenue $1,299,000 +49%
Net profit/(loss) from
continuing operations
$230,000 -46%
Total net profit/(loss) $230,000 -46%
Interim Dividend
Amount per Quoted Equity
Security
$0.08700000
Imputed amount per Quoted
Equity Security
$0.03383333
Record Date 16 March 2023
Dividend Payment Date 3 April 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$3.36 $3.32
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to accompanying unaudited financial statements.

Authority for this announcement
Name of person

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

21/02/2023

Unaudited financial statements accompany this announcement.

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Investment in increased scale, higher generation drive Mercury results
HY23 Financial Results Summary
HY2023 HY2022 Change %
EBITDAF ($M) 451 242 86%
NET PROFIT AFTER TAX ($M) 230 427 -46%
UNDERLYING EARNINGS AFTER TAX ($M) 182 104 75%
STAY-IN-BUSINESS CAPITAL EXPENDITURE ($M) 31 20 55%
ELECTRICITY GENERATION (GWh) 4,817 3,745 29%
INTERIM FULLY IMPUTED ORDINARY DIVIDEND (CENTS PER SHARE) – TO
BE PAID ON 3 APRIL 2023

8.7
8.0 9%

21 February 2023 – Significant investment to increase scale and strong generation underpinned Mercury’s
financial results for the six months to 31 December 2022.
Hydro production was up 852GWh to 2,735GWh after Lake Taupō experienced its highest ever inflows for the July
to December period. Wind production was also notably higher (up 201GWh to 788GWh), reflecting a full six months
of generation across Mercury’s wind farms including from the newly commissioned Turitea North wind farm.
“Wet weather has defined the period, in sharp contrast to a dry FY2022. In addition to producing the highest hydro
generation volume in our company’s history, another 675GWh was spilled to maintain lakes within Resource
Consent operating limits,” said Mercury Chief Executive Vince Hawksworth.
The result also reflects a significantly larger retail business, primarily due to completion of the Trustpower retail
acquisition in May 2022 and a full six-month contribution at increased scale. Mercury also acquired the outstanding
shares in the broadband company NOW NZ in December 2022.
“Mercury is a much larger business than it was this time last year, and it shows strongly in our result. We added
440,000 more connections from those two transactions alone,” said Mr Hawksworth.
The company has recently embarked on a major period of growth, having spent more than $1.7b acquiring Tilt
Renewables’ New Zealand operations in 2021, Trustpower’s retail business in 2022 and building New Zealand’s
biggest windfarm at Turitea.
While operating earnings (EBITDAF) were up $223m to $451m for the period, net profit was down $197m to $230m
with the previous period including the one-off net gain made from the sale of Mercury’s shareholding in Tilt
Renewables when Mercury acquired Tilt’s NZ operations in August 2021.
The early exit of a long-term hedge with Norske Skog in HY2022, which reduced revenue by $65m in that period,
also contributed to the lift in EBITDAF in HY2023.
Operational expenditure was $54m higher than the prior comparable period while stay-in-business capital
expenditure was up $11m, reflecting increased scale and activity across the business.
STOCK EXCHANGE LISTINGS: NZX (MCY) / ASX (MCY)

NEWS RELEASE

RECENT WEATHER EVENTS
While the country’s generating assets were largely undamaged by recent weather events, the scale of destruction
for distribution and lines networks has been significant.
“Resilience of critical infrastructure needs to be one of New Zealand’s biggest priorities. We know that weather
events will become increasingly severe, and we need to adapt,” said Mercury Chair Prue Flacks.
“Keeping the lights on for New Zealanders is a collective goal and so collective action will be vital. Whole-of-system
thinking about the investment and delivery of critical infrastructure is our best hope for a reliable and affordable
system in an uncertain future.
"This has undoubtedly been a challenging time, and our thoughts are with those impacted by the devastation
caused. Across the country many people have lost access to electricity and telecommunications, which has been
hugely disruptive.”
“Like all of New Zealand, we responded quickly to support our customers and communities. Our team have been
making welfare calls, providing financial support to those who are worst affected and staying connected to
communities to help hard-to-reach customers where possible.
DELIVERING THROUGH HEADWINDS
Both the retail and generation business encountered significant headwinds over the period including an inflationary
environment, access to technology and a tight labour market.
“These challenges are not confined to Mercury alone, with businesses around New Zealand facing similar
challenges. We expect these to continue into the future and have factored these into our business planning,” said
Ms Flacks.
CARING FOR CUSTOMERS
Ms Flacks said regardless of the drivers behind the results, it was still coming in a high cost of living environment.
“Recent events aside, we understand the cost pressures many families are facing, and we are focused on our
extensive programme of support for those customers experiencing hardship.”
This includes working with the sector, other essential service providers and community organisations to create a
more comprehensive approach to supporting those in hardship. Mercury’s role will be to trial a capped electricity
product that helps contribute to overall wellbeing for these households.
Last year mass market customers’ prices increased by an average of 2% across lines and energy and will be
limited to between 3% and 5% for the coming year.
“This is despite costs to our business increasing over and above this, which we are absorbing on behalf of our
customers.”
Ms Flacks also noted that in addition to targeted support, Mercury was delaying price changes (including lines
increases) for at least six months for those adversely impacted by recent weather.
EXECUTING ON RENEWABLE GENERATION PIPELINE
The first half of the year saw tangible progress in the delivery of Mercury’s substantial renewable generation
pipeline, consistent with the goal to play a leading role in the low carbon transition.
Commissioning of the 103MW Turitea South wind farm will begin in April with completion taking longer than
expected due to construction and delivery challenges.
“Once complete, Turitea will be Aotearoa New Zealand’s largest wind farm and materially shifts the dial on our
decarbonisation ambitions. That’s a win not just for Mercury, but for the Manawatū region and New Zealand as a
whole,” said Ms Flacks.

In September Mercury also announced the construction of Stage 1 of the Kaiwera Downs wind farm (43MW),
expected to cost $115m excluding capitalised interest. Construction started in October 2022, with all turbines
operational by October 2023.
“We’re advancing several other wind farm projects through prospecting, feasibility, consenting and business case
phases and we want to get the next cab off the rank as quickly as we can.”
OTHER OPERATIONAL HIGHLIGHTS
• Cross-sector work on the low-carbon transition including supporting an independent report by the Boston
Consulting Group to provide a whole-of-sector view of the transition; inputting into a winter peak product
proposed to the Electricity Authority.
• Lodging consent for the expansion of an additional unit at Ngā Tamariki geothermal power station, with
Mercury currently in the process of engaging with iwi partners.
• Progressing the carbon reinjection trial at Ngā Tamariki (8,000 tonnes of CO2e successfully reinjected so
far). Mercury is currently assessing expansion to other units at Ngā Tamariki and researching options for
technology development at Kawerau geothermal power station.
• Piloting a number of customer care initiatives including a trial to secure access to basic needs like food,
water and electricity; and another which caps energy bills for customers.
• Building health, safety and wellbeing maturity with a suite of initiatives to facilitate this. TRIFR (Total
Reportable Incident Frequency Rate) for the half year was 0.58.
INTERIM DIVIDEND
The Board has declared a fully imputed interim dividend of 8.7 cents per share, representing a 9% increase on
HY22 dividend and will continue the Dividend Reinvestment Plan for this dividend.
GUIDANCE
Mercury’s full year EBITDAF guidance remains at $795m.
The uplift in forecasted EBITDAF compared to prior year reflects a lift in the FY23 hydro production forecast to
4,900GWh (from 4,500GWh), with additional hydro mostly generated at a time of low spot electricity prices and the
active management of Lake Taupō within consented operating limits.
This increase in generation margin has been eroded by higher operating expenditure including Trustpower retail
integration costs that have been bought forward into FY23 with the project running ahead of schedule.
Guidance may change and remains subject to any material events, significant one-off expenses or other
unforeseen circumstances including changes to hydrological conditions.
ENDS
Howard Thomas
General Counsel and Company Secretary
Mercury NZ Limited

For investor relations queries, please contact:
William Meek
Chief Financial Officer
0275 173 470
investor@mercury.co.nz
For media queries, please contact:
Shannon Goldstone
Head of Communications
027 210 5337
media@mercury.co.nz

ABOUT MERCURY NZ LIMITED
We generate electricity from 100% renewable sources – hydro, geothermal and wind. We also sell utility services to our
customers through our retail brands – Mercury, Trustpower and GLOBUG.
We’re listed on the New Zealand Stock Exchange and the Australian Stock Exchange with foreign exempt listed status with the
ticker symbol ‘MCY’. The New Zealand Government holds a legislated 51% shareholding in the Company. Visit us at:
www.mercury.co.nz

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MERCURY NZ LIMITED
2023
INTERIM REPORT.

2
This report covers the six-month period
to 31 December 2022, a period characterised
by the wettest first half in Mercury’s history
(in contrast to a dry FY22). As a result
675GWh was spilled to maintain lakes
within operating limits.
We are now halfway through our three-year
objectives to FY24 and are pleased with the
progress made towards our thriving today and
CONTENTS.
02 CHAIR & CHIEF EXECUTIVE UPDATE
06 OUR FINANCIALS
07 INDEPENDENT REVIEW REPORT
08 FINANCIAL STATEMENTS
19 SHAREHOLDER INFORMATION
19 DIRECTORY
shaping tomorrow goals. We reached several
generation development and Trustpower retail
integration milestones.
Cross-sector work to support the transition to
a low carbon economy was another key feature
during the period. This included sector support
of an independent report by the Boston
Consulting Group to provide a whole-of-system
decarbonisation roadmap and inputs into the
development of a winter peak product proposed
to the Electricity Authority.
The sector’s ability to work constructively with
Government will be key to New Zealand
successfully navigating the transition. The sector
has expertise, capital and a pipeline of projects
ready to be deployed. We are actively seeking
greater engagement from Government so that
a more collaborative approach can be taken.
This becomes increasingly important as we
navigate significant headwinds including
an inflationary environment, supply chain delays
and a tight labour market. We expect these
challenges will continue over the medium term
and are considering these in our planning.
CHAIR
& CHIEF
EXECUTIVE
UPDATE.
PRUE FLACKS // CHAIR
VINCE HAWKSWORTH // CHIEF EXECUTIVE

3
INTERIM DIVIDEND
Your Board has declared a fully imputed interim
dividend of 8.7 cents per share, representing a 9%
increase on HY22 dividend. We have extended
our Dividend Reinvestment Plan to allow our
shareholders to reinvest their returns into Mercury.
The dividend will be paid on 3 April 2023.
$451M
o
EBITDAF
8.7CPS
o
INTERIM DIVIDEND
DECLARED
NET PROFIT
$230M
p
OPERATING
EXPENDITURE
$160M
o
HYDRO GENERATION
2,735GWh
o
WETTEST FIRST HALF
ON RECORD
2022
FINANCIAL OVERVIEW
Operating earnings (EBITDAF
1
) were up $209
million to $451 million for the period, with a
significant increase in hydro generation
of 852GWh, and increased wind generation
of 201GWh positively contributing to this result.
Operational expenditure was also up $54 million
on prior comparable period, and stay-in-business
capital expenditure for the period was $31 million
(up $11 million), reflecting increased scale and
activity across the business.
Net profit was down $197 million to $230 million,
with the previous year’s results capturing the
one-off net gain made on the sale of our Tilt
Renewables shareholding.
Mercury’s full year EBITDAF guidance remains
at $795m. This reflects a lift in the FY23 hydro
production forecast to 4,900GWh (from
4,700GWh), with additional hydro mostly
generated at a time of low spot electricity prices
and the active management of Lake Taupō within
consented operating limits.
In addition, Trustpower retail integration costs have
been brought forward into FY23 with the project
running ahead of schedule.
WE ARE NOW HALFWAY THROUGH
OUR THREE-YEAR OBJECTIVES
TO FY24 AND ARE PLEASED WITH
THE PROGRESS MADE.
1 EBITDAF: Earnings before net interest expense, tax expense, depreciation
and amortisation, change in the fair value of financial instruments,
gain on sale and impairments.

4
EXECUTING OUR GENERATION PIPELINE
Delivery of our renewable generation pipeline
remains a core focus for our business and the
first half of the year saw tangible progress.
Commissioning for the 103MW Turitea South
wind farm will begin in April. Construction, which
commenced in August 2019, has taken longer
than expected due to construction challenges.
Mercury is confident that the project is on-track
to be fully operational by mid-CY2023 with a
forecast project cost of $450m (excluding
capitalised interest).
In September we announced the construction
of Stage 1 of the Kaiwera Downs wind farm
(43MW), expected to cost $115m excluding
capitalised interest. Construction started
in October 2022, and we expect all turbines
operational by October 2023.
We are experiencing some delays in
progressing the Kaiwaikawe wind farm to
construction phase, reflecting the complex
nature of this project. Underlying causes
include delays in the consenting process,
the pace at which we can contract with
landowners for the transmission line route
and the complexity of the connection within
an embedded network.
We are advancing several other wind farm
projects through prospecting, feasibility,
consenting, constructability and business case
phases, and our adaptive development model
positions us well to respond to investment
opportunities.
Consent for the expansion of an additional
unit at Ngā Tamariki geothermal power station
has been lodged, and we are currently in the
process of engaging with our iwi partners.
The carbon reinjection trial on one of the four
units at this site continues to progress well,
with about 8,000 tonnes of CO2e now
successfully reinjected. We are currently
assessing expansion to other units at Ngā
Tamariki, as well as researching options
for technology development at our Kawerau
geothermal power station.
PROGRESSING THE TRUSTPOWER
INTEGRATION
We are pleased with the progress being made
on the integration of Trustpower’s retail
business. A highly experienced integration
team has been established, and the team
are focused on moving the combined retail
business onto a common operating model
(people, process and systems) as efficiently
as possible. We are now starting to see
benefits from synergies associated with
bringing these two businesses together.
The programme is likely to run across
a two-year time horizon and our people
are central to its ongoing success. In order
to manage retention and engagement risks
we have incorporated long-term workforce
planning into the project and are widening
the net in terms of the capability within
our business beyond the immediate
integration team.
SHAPING TOMORROW.

5
BUILDING ON HEALTH & SAFETY
We continue to build the maturity of our
approach to health, safety and wellbeing
by lifting our sights beyond policies and
procedures to supporting the growth in
capability of our people and systems. This will
enable us to build a stronger culture across all
parts of Mercury and drive better health, safety,
wellbeing and engagement outcomes.
We have implemented a suite of initiatives to
facilitate this including extending training to
employees in a psychologically-based safety
process (Zero Incident Process) designed to
connect the outcomes of safety with personal
behaviours and empower and promote safer
behaviours through learning and sharing. In
addition we are piloting an approach to better
bring lifesaving controls into regular work
routines and more effectively integrating Health
and Safety leadership into major projects.
Our TRIFR (Total Reportable Incident Frequency
Rate) for the half year was 0.58. The 12 month
rolling TRIFR was 0.62 which is consistent with
TRIFR for the prior two years.
In early FY22, WorkSafe laid charges against
Mercury alleging breaches of health and safety
legislation arising from a July 2021 'water
hammer' event which resulted in a loss
of containment of steam. Mercury continues
to co-operate with WorkSafe and consider
its response to the charges.
Mercury has worked hard to balance
commercial outcomes with customer needs.
Like all businesses, we are facing cost
pressures and recognise inflation impacts
on our customers as well. We have capped
our annual price change in recognition of the
cost pressures many families will face in the
near term.
Our post-pay disconnection trends remain
low across our brands. Customer churn over
the period across all brands was 17%, and it is
pleasing to see con nection numbers growing,
with a net gain of 14,000 connections over the
period to 813,000 connections.
Following on from the Commerce Commission
filing seven charges against Mercury for
incorrectly applying early termination fees to
about 2,000 customers, we have now entered
guilty pleas in respect of six of the charges.
We are extremely disappointed that this incident
has occurred and have taken action to
ENHANCING AND MAINTAINING
OUR ASSETS
Progress on the $75 million, six-year upgrade
to the Karāpiro hydro station continued over the
period – the fifth of a nine-station investment
programme spanning almost two decades.
We are engaging closely with the community
to minimise the impact of this work.
We are also preparing to implement a
permanent repair on the Kawerau geothermal
power station this June, following the 44-day
unplanned outage during June and July 2021.
SERVING OUR CUSTOMERS
We acknowledge the cost of living pressure
many New Zealand families are facing and are
taking action to support our customers.
This includes delivering a comprehensive
programme of customer care, with a growing
number of customers expected to experience
hardship at some point in time. We are working
with the sector, other essential service providers
and the community to create a more joined up
approach to supporting consumers in hardship,
in line with feedback from communities.
We are piloting a scheme which secures access
to basic needs like food, water and electricity
and another which caps energy bills for
customers. In addition, we are participating
in multiple cross-sector support schemes with
our peers and co-designing research with the
community to help us better understand how
the industry can best support vulnerable
consumers.
PRUE FLACKS // CHAIRVINCE HAWKSWORTH // CHIEF EXECUTIVE
IN CLOSING
There has been much discussion about the
challenges New Zealanders will navigate over
the coming months. We are mindful of our
role as a major employer, service provider and
generator of electricity and the responsibility
that entails.
We thank all of our people and our owners,
who are fundamental to our ongoing success.
We look forward to continuing to deliver for
New Zealand in the second half of the year.
Ngā mihi nui ki a koutou katoa.
remediate where appropriate. We have also
made changes to our processes to address this.
BUILDING CAPABILITY
We have evolved our Thrive programme
(building a continuous improvement mindset)
to integrate this further into our core as we
look to make ‘thriving’ an ongoing mindset.
This will see us moving towards a more adaptive
operating model and adopting new ways
of working.
Building capability remains another key area
of focus for Mercury, reflecting a broader trend
across the energy sector as activity ramps
up for the low carbon transition. This includes
ensuring we have policies in place that foster
an inclusive environment for all employees.
Over the period we also continued to focus
on fair remuneration, with salary changes
prioritising lower salaries and gender pay gaps.
THRIVING TODAY.

6
LET’S GET INTO
THE NUMBERS.
OUR FINANCIALS.

7
In addition to the audit we have carried
out engagements in the areas of agreed
upon procedures, pre-assurance reviews
and other limited assurance reporting
engagements, which are compatible with
those independence requirements. Other than
the audit and these engagements, we have
no relationship with or interests in the Group.
DIRECTORS’ RESPONSIBILITIES FOR THE
CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
The Directors are responsible, on behalf
of the Group, for the preparation and fair
presentation of these consolidated interim
financial statements in accordance with
New Zealand Equivalent to International
Accounting Standard 34: Interim Financial
Reporting and International Accounting
Standard 34: Interim Financial Reporting
and for such internal control as the Directors
determine is necessary to enable the
preparation and fair presentation of the
consolidated interim financial statements that
are free from material misstatement, whether
due to fraud or error.
The Directors are also responsible for the
publication of the consolidated interim
financial statements, whether in printed or
electronic form.
TO THE SHAREHOLDERS OF
MERCURY NZ LIMITED
The Auditor-General is the auditor of
Mercury NZ Limited (‘the Company’).
The Auditor-General has appointed me,
Lloyd Bunyan, using the staff and resources
of Ernst & Young, to carry out the review of
the consolidated interim financial statements
of the Group (comprising the Company, its
subsidiaries and other controlled entities)
on his behalf.
CONCLUSION
We have reviewed the consolidated interim
financial statements of the Group on pages
8 to 18, which comprise the consolidated
balance sheet as at 31 December 2022,
and the consolidated income statement,
consolidated statement of comprehensive
income, consolidated statement of changes
in equity and consolidated 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
consolidated interim financial statements of
the Group do not present fairly, in all material
respects, the consolidated financial position
of the Group as at 31 December 2022, and its
consolidated financial performance and cash
flows for the six months ended on that date,
in accordance with New Zealand Equivalent
to International Accounting Standard
34: Interim Financial Reporting and
International Accounting Standard
34: Interim Financial Reporting.
BASIS FOR CONCLUSION
We conducted our review in accordance with
NZ SRE 2410 (Revised) Review of Financial
Statements Performed by the Independent
Auditor of the Entity (‘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 independence
requirements of the Auditor-General’s
Auditing Standards, which incorporate the
independence requirements of Professional
and Ethical Standard 1
International Code of
Ethics for Assurance Practitioners issued by
the New Zealand Auditing and Assurance
Standards Board.
AUDITOR’S RESPONSIBILITY FOR THE
REVIEW OF THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on
the consolidated interim financial statements
based on our review. NZ SRE 2410 (Revised)
requires us to conclude whether anything
has come to our attention that causes us to
believe that the consolidated interim financial
statements, taken as a whole, are not prepared,
in all material respects, in accordance with
New Zealand Equivalent to International
Accounting Standard 34: Interim Financial
Reporting and International Accounting
Standard 34: Interim Financial Reporting.
A review of the consolidated 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
LLOYD BUNYAN
ERNST & YOUNG
ON BEHALF OF THE AUDITOR-GENERAL
AUCKLAND, NEW ZEALAND
21 FEBRUARY 2023
with International Standards on Auditing
(New Zealand) and consequently do not enable
us to obtain assurance that we would become
aware of all significant matters that might be
identified in an audit. Accordingly, we do not
express an audit opinion on these consolidated
interim financial statements.
INDEPENDENT AUDITOR’S REVIEW REPORT.

8
INCOME STATEMENT.
For the six months ended 31 December 2022
Note
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Total revenue2
1,299 8732,188
Total expenses 2
(848)(631)(1,607)
EBITDAF
1
451 242581
Depreciation and amortisation
(161)(138)(293)
Change in the fair value of financial instruments2
52 7(82)
Gain/(loss) on disposal2
11 365 366
Net interest expense2
(47)(26)(62)
Profit before tax
306 450510
Tax exp e nse
(76)(23)(41)
Profit for the period attributable to owners of the parent
230 427469
Basic and diluted earnings per share (cents)
16.931.4 34.3
1. EBITDAF: Earnings before net interest expense, tax expense, depreciation and amortisation, change in the fair value of financial instruments,
gain/(loss) on disposal and impairments.
STATEMENT OF COMPREHENSIVE INCOME.
For the six months ended 31 December 2022
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Profit for the period attributable to owners of the parent230427469
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Change in asset revaluation reserve––298
Change in cash flow hedge reserve transferred to balance sheet––(1)
Share of movements in associates' and joint ventures' reserves(1)–1
Tax ef fe c t–– (83)
Items that may be reclassified subsequently to profit or loss
Change in cash flow hedge reserve (52)20259
Cash flow hedge reserve reclassified to profit or loss –––
Transfer of share of associate's reserves to profit or loss upon disposal of
investment in associate
–(21) (21)
Share of movements in associates' and joint ventures' reserves 5 7–
Tax ef fe c t 15 (57)(16)
Other comprehensive income/(loss) for the period, net of taxation (33)131237
Total comprehensive income for the period attributable
to owners of the parent
197558706
FINANCIAL STATEMENTS.

9
BALANCE SHEET.
As at 31 December 2022
Note
Unaudited
31 Dec 2022
$M
Unaudited
31 Dec 2021
$M
Audited
30 Jun 2022
$M
SHAREHOLDERS’ EQUITY
Issued capital 378378378
Treasury shares(38)(100)(50)
Reserves4,4664,3274,424
Total shareholders’ equity4,8064,6054,752
ASSETS

Current assets
Cash and cash equivalents534865
Receivables394250489
Contract assets28220
Inventories1216594
Taxation receivable–2–
Derivative financial instruments34073328
Total current assets936440996

Non-current assets
Property, plant and equipment67,9797,8138,080
Intangible assets15681123
Investment and advances to associates and joint ventures7709173
Advances to joint operations354
Receivables333
Contract assets12–10
Derivative financial instruments47564371
Total non-current assets8,6988,0578,664
Total assets9,634 8,497 9,660
Note
Unaudited
31 Dec 2022
$M
Unaudited
31 Dec 2021
$M
Audited
30 Jun 2022
$M
LIABILITIES
Current liabilities
Payables and accruals303175400
Borrowings8462487561
Derivative financial instruments323149292
Taxation payable38–14
Total current liabilities1,1268111,267

Non-current liabilities
Payables and accruals19712
Provisions838881
Derivative financial instruments499209400
Borrowings81,3521,1781,395
Deferred tax1,7491,5991,753
Total non-current liabilities3,7023,0813,641
Total liabilities4,8283,8924,908
Net assets4,806 4,605 4,752
For and on behalf of the Board of Directors who authorised the issue of the Consolidated Interim Financial Statements on
21 February 2023.
9
PRUE FLACKS // CHAIR OF
THE BOARD OF DIRECTORS
JAMES MILLER // CHAIR OF THE RISK
ASSURANCE AND AUDIT COMMITTEE

10
CASH FLOW STATEMENT.
For the six months ended 31 December 2022
Note
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers1,3329512,011
Payments to suppliers and employees(898)(751)(1,526)
Interest received2–2
Interest paid(45)(28)(61)
Taxes paid(46)(40)( 74)
Net cash provided by operating activities345132352

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment(75)(70)(114)
Purchase of intangibles(15)(6)(25)
Net receipts from and advances repaid to associates and joint ventures3710
Proceeds from disposal of Tilt–603603
Purchase of Tilt New Zealand–(631)–
Purchase of NOW New Zealand1(17)––
Proceeds from receivables recognised on acquisition–72124
Payments associated with business combinations, net of cash acquired––(1,099)
(Lodgements)/return of prudential deposits(5)(13)(33)
Net cash used in investing activities(109)(38)(534)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings115482777
Repayment of borrowings(214)(548)(548)
Principal repayment of lease liabilities(6)(4)(6)
Net proceeds from disposal of treasury shares––93
Dividends paid4(143)(139)(232)
Net cash (used in)/received in financing activities(248)(209)84
Net increase/(decrease) in cash and cash equivalents held(12)(115)(98)
Cash and cash equivalents at the beginning of the period65163163
Cash and cash equivalents at the end of the period534865
Cash balance comprises:
Cash balance at the end of the period534865
STATEMENT OF CHANGES IN EQUITY.
For the six months ended 31 December 2022
Note
Issued
capital
$M
Retained
earnings
$M
Asset
revaluation
reserve
$M
Cash flow
hedge
reserve
$M
Other
reserves
$M
Total
equity
$M
Balance as at 1 July 20213782143,959(268)(97)4,186
Recycling of share of associate's reserves to retained
earnings upon disposal of investment in associate
–22(21)–(1)–
Transfer of share of associate's reserves to profit or
loss upon disposal of investment in associate
–––(20)(1)(21)
Change in cash flow hedge reserve–––145–145
Movements in associates' and joint ventures' reserves–––7–7
Other comprehensive income/(loss)–22(21)132(2)131
Net profit for the period–427–––427
Total comprehensive income/(loss) –449(21)132(2)558
Dividend–(139)–––(139)
Balance as at 31 December 2021 (unaudited)3785243,938(136)(99)4,605
Balance as at 1 January 20223785243,938(136)(99)4,605
Recycling of share of associate's reserves to retained
earnings upon disposal of investment in associate
–1––(1)–
Transfer of share of associate's reserves to profit or
loss upon disposal of investment in associate
––––––
Movement in asset revaluation reserve, net of taxation––215––215
Movement in cash flow hedge reserve, net of taxation–––(123)–(123)
Share of movements in associates' and joint ventures'
reserves
–––14–14
Other comprehensive income/(loss)–1215(109)(1)106
Net profit for the period–42–––42
Total comprehensive income/(loss)–43215(109)(1)148
Dividend–(109)–––(109)
Disposal of treasury shares 4–58––50108
Balance as at 30 June 2022 (audited)3785164,153(245)(50)4,752
Balance as at 1 July 2022 378 516 4,153 (245) (50) 4,752
Recycling of share of associate's reserves to retained
earnings upon disposal of investment in associate
––––––
Transfer of share of associate's reserves to profit or
loss upon disposal of investment in associate
––––––
Movement in asset revaluation reserve, net of taxation––––––
Movement in cash flow hedge reserve, net of taxation––– (37)– (37)
Share of movements in associates' and joint ventures'
reserves
––(1) 5 –4
Other comprehensive income/(loss)–– (1) (32)– (33)
Net profit for the period– 230 ––– 230
Total comprehensive income/(loss) – 230 (1) (32)– 197
Dividend– (166)––– (166)
Disposal of treasury shares 4– 11 –– 12 23
Balance as at 31 December 2022 (unaudited) 378 591 4,152 (277) (38) 4,806

11
Acquisition consideration – by way of cash ($M)469
Fair value allocated
on 1 May 2022
($M)
Derivative financial instruments 488
Intangible assets 32
Property, plant and equipment 19
Right-of-use assets 22
Lease liabilities (22)
Contract assets 28
Inventories 3
Receivables 49
Payables and accruals (3)
Deferred tax liabilities (146)
Net assets acquired470
The Group has previously recognised and disclosed a bargain purchase gain of $1 million in relation to the transaction.
Acquisition of remaining shares in NOW New Zealand Limited
In the 2021 financial year Mercury had acquired a 48% interest in NOW New Zealand ("NOW"). On 15 December 2022, the Group
acquired the remaining 52% of shares in NOW for $16.7m, valuing the entire investment at $32.4m. The Group has prepared a
provisional purchase price allocation in accordance with NZ IFRS 3 Business Combinations. The provisional fair value allocated to
the asset and liability classes upon acquisition are disclosed below.
Fair value allocated on
15 December 2022
($M)
Customer assets 31
Property, plant and equipment 4
Receivables 5
Payables and accruals (10)
Borrowings (2)
Deferred tax liabilities (5)
Goodwill9
Net assets acquired32
Goodwill
The Group expects to recognise $9m goodwill from the transaction. However, at the time the financial statements were approved
for issue, the Group had not yet completed the accounting for the acquisition. In particular, the fair values of the assets and
liabilities disclosed above have only been determined provisionally as valuations have not been finalised.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2022
NOTE 1. ACCOUNTING POLICIES
(1) REPORTING ENTITY
Mercury NZ Limited (“the Company”) is incorporated in New Zealand, registered under the Companies Act 1993, an FMC
reporting entity under the Financial Markets Conduct Act 2013, and is listed on the NZX Main Board and on the ASX, with foreign
exempt listed status.
The consolidated interim financial statements (“Group financial statements”) are for Mercury NZ Limited Group (“the Group”). The
Group financial statements comprise the Company and its subsidiaries, including its investments in associates and interests in
joint arrangements.
The majority shareholder of Mercury NZ Limited is His Majesty the King in Right of New Zealand (“the Government”), providing
it with potential influence over the Group. The liabilities of the Group are not guaranteed in any way by the Government or by any
other shareholder.
(2) BASIS OF PREPARATION
The Group unaudited financial statements have been prepared in accordance with the New Zealand equivalent to International
Accounting Standard 34
Interim Financial Reporting ("NZ IAS 34"). In complying with NZ IAS 34, these statements comply with
International Accounting Standard 34
Interim Financial Reporting.
The preparation of financial statements requires judgements and estimates that impact the application of policies and the
reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Key areas
of significant estimates and judgements include fair value of generation plant and equipment and valuation of financial
instruments. The Group has considered the impact of macro-economic conditions including rising interest rates and inflation and
is comfortable that these values are materially correct.
Where applicable, presentation for comparatives have been changed to comply with the accounting presentation adopted in the
current year to ensure consistency with the current year classification. Refer to Note 2 following a change in the presentation of
reportable segments.
These Group financial statements, including the accounting policies adopted, do not include all the information and disclosures
required in the annual financial statements. Beyond those disclosed below, the Group financial statements have been prepared
using the same accounting policies as, and should be read in conjunction with, the Group's annual financial statements for the
year ended 30 June 2022.
Non-GAAP measures: The Group refers to EBITDAF (a non-GAAP financial measure) within these financial statements and
accompanying notes. The use of non-GAAP measures are intended to supplement GAAP measures and they are not a substitute.
EBITDAF is earnings before net interest expense, tax expense, depreciation and amortisation, change in the fair value of financial
instruments, gain/(loss) on disposal and impairments.
Acquisition of Trustpower Limited's Retail Business ("Trustpower transaction")
In the previous reporting period the Group completed its acquisition of Trustpower Limited's retail business and disclosed a
provisional purchase price allocation. The Group has now completed its purchase price allocation in accordance with NZ IFRS3
Business Combinations. The fair value allocated to the asset and liability classes upon acquisition are disclosed below. The final
allocation differs from the provisional purchase price allocation by $1 million as a result of a reduction in the receivables balance
acquired and a corresponding reduction in the acquisition consideration amount.

12
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2022
Six months ended 31 December 2022 (Unaudited)
Generation/
Wholesale
$M
Retail
$M
Other
$M
Inter–
segment
$M
Total
$M
ELECTRICITY MARGIN526 81 ––607
Gas Revenue– 46 ––46
Purchases– (17) –– (17)
Transmission & distribution– (17) –– (17)
Metering– (4) –– (4)
GAS MARGIN– 8 ––8
Telco Revenue–65 ––65
Cost of sales– (46) –– (46)
TELCO MARGIN–19 ––19
Earnings of associates– – (1) – (1)
Other revenue52 ––7
Other direct cost of sales (14) (15) –– (29)
Direct costs of other revenue–––––
TOTAL MARGIN517 95 (1) –611
Employee compensation and benefits (21) (39) (11) – (71)
Maintenance expenses (22) (8) (1) – (31)
Other expenses (20) (20) (18) – (58)
Allocation of corporate overheads (13) (17) 30 – -
Total operating expenses (76) (84) –– (160)
Segment EBITDAF441 11 (1) –451
Summary
Total Revenue837 734 (1) (271) 1,299
Total Cost of sales (320) (639) –271 (688)
Total Margin517 95 (1) –611
Total Operating expenses (76) (84) –– (160)
Segment EBITDAF441 11 (1) –451
Net interest expense (47)
Gain / (loss) on disposal11
Depreciation and amortisation (161)
Change in the fair value of financial instruments52
Profit before tax306
NOTE 2. SEGMENT REPORTING
IDENTIFICATION OF REPORTABLE SEGMENTS
The operating segments are identified by management based on the nature of the products and services provided. Discrete
financial information about each of these operating segments is reported on a monthly basis to the Chief Executive, being
the chief operating decision-maker, who assesses the performance of the operating segments on a measure of EBITDAF.
Segment EBITDAF represents earnings before net interest expense, tax expense, depreciation, amortisation, change in the fair
value of financial instruments, gain/(loss) on disposal and impairments by each segment inclusive of an allocation of central
operating revenue and costs. Operating segments are aggregated into reportable segments only if they share similar economic
characteristics.
The presentation of segment EBITDAF has been split out in more detail than previous disclosures to provide more transparency on
the revenue of products and services provided by the Group.
TYPES OF PRODUCTS AND SERVICES
Generation/Wholesale
The generation/wholesale market segment encompasses activity associated with electricity production, electricity trading,
generation development activities and the Group's share of associates earnings. It also includes revenue from the sale of
electricity to both commercial & industrial customers and the retail segment.
Retail
The retail segment encompasses activity associated with sale of energy, telecommunication products/services and other related
products and services to mass market customers in New Zealand.
Other
Represents corporate support services which are not directly attributable to the generation/wholesale or retail segments.
Inter-segment
Transactions between segments represent transfer charges by generation/wholesale to retail for the purchase of electricity.
SEGMENT RESULTS
Six months ended 31 December 2022 (Unaudited)
Generation/
Wholesale
$M
Retail
$M
Other
$M
Inter–
segment
$M
Total
$M
Generation297 –––297
Sales to Customers210 621 ––831
Inter-segment sales271 –– (271) –
Derivatives settlement54 –––54
Electricity Revenue832 621 – (271) 1,182
Purchases (248) (271) –271 (248)
Transmission & distribution (56) (238) –– (294)
Metering (2) (31) –– (33)

13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2022
Six months ended 31 December 2021 (Unaudited)
Generation/
Wholesale
$M
Retail
$M
Other
$M
Inter–
segment
$M
Total
$M
Generation378 –––378
Sales to Customers170 345 ––515
Inter-segment sales143 –– (143) –
Derivatives settlements (51) ––– (51)
Electricity Revenue640 345 – (143) 842
Purchases (287) (143) –143 (287)
Transmission & distribution (48) (132) –– (180)
Metering (2) (18) –– (20)
ELECTRICITY MARGIN303 52 ––355
Gas Revenue–21 ––21
Purchases– (5) –– (5)
Transmission & distribution– (9) –– (9)
Metering– (3) –– (3)
GAS MARGIN–4 ––4
Telco Revenue–––––
Cost of sales–––––
TELCO MARGIN–––––
Earnings of associates2 (2) –––
Other revenue6 3 ––9
Other direct cost of sales (16) (4) –– (20)
Direct costs of other revenue–––––
TOTAL MARGIN295 53 ––348
Employee compensation and benefits (20) (15) (8) – (43)
Maintenance expenses (20) (3) –– (23)
Other expenses (19) (22) 1 – (40)
Allocation of corporate overheads (4) (3) 7 ––
Total operating expenses (63) (43) –– (106)
Segment EBITDAF232 10 ––242
Summary
Total Revenue648 367 – (143) 872
Total Cost of sales (353) (314) –143 (524)
Total Margin295 53 ––348
Total Operating expenses (63) (43) –– (106)
Segment EBITDAF232 10––242
Net interest expense (26)
Gain / (loss) on disposal365
Depreciation and amortisation (138)
Change in the fair value of financial instruments7
Profit before tax450
Twelve months ended 30 June 2022 (Audited)
Generation/
Wholesale
$M
Retail
$M
Other
$M
Inter–
segment
$M
Total
$M
Generation1,041 –––1,041
Sales to Customers377 748 ––1,125
Inter-segment sales300 –– (300) –
Derivatives settlements (86) ––– (86)
Electricity Revenue1,632 74 8 – (300) 2,080
Purchases (851) (300) –300 (851)
Transmission & distribution (101) (288) –– (389)
Metering (4) (39) –– (43)
ELECTRICITY MARGIN676 121 ––797
Gas Revenue–46 ––46
Purchases– (13) –– (13)
Transmission & distribution– (19) –– (19)
Metering– (5) –– (5)
GAS MARGIN–9 ––9
Telco Revenue–21 ––21
Cost of sales– (17) –– (17)
TELCO MARGIN–4 ––4
Earnings of associates3 – (7) – (4)
Other revenue38 2 5 –45
Other direct cost of sales (30) (10) –– (40)
Direct costs of other revenue–––––
TOTAL MARGIN687 126 (2) –811
Employee compensation and benefits (41) (37) (16) – (94)
Maintenance expenses (41) (10) –– (51)
Other expenses (43) (30) (12) – (85)
Allocation of corporate overheads (14) (14) 28 ––
Total operating expenses (139) (91) –– (230)
Segment EBITDAF548 35 (2) –581
Summary
Total Revenue1,673 817 (2) (300) 2,188
Total Cost of sales (986) (691) –300 (1,377)
Total Margin687 126 (2) –811
Total Operating expenses (139) (91) –– (230)
Segment EBITDAF548 35 (2) –581
Net interest expense (62)
Gain / (loss) on disposal366
Depreciation and amortisation (293)
Change in the fair value of financial instruments (82)
Profit before tax510
NOTE 2. SEGMENT REPORTING (CONTINUED)

14
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2022
Cents per share
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Dividends declared and paid
Final dividend for 2021 10.2 – 139 139
Interim dividend for 2022 8.0 –– 109
Final dividend for 2022 12.0 166 ––
166 139 248
NOTE 5. FINANCIAL INSTRUMENTS
The Group's principal financial instruments comprise cash and cash equivalents, trade receivables and accruals (not
prepayments), advances, payables and accruals, borrowings and derivative financial instruments. Further information on the
identified risks can be found in note 13 of the Group's annual financial statements for the year ended 30 June 2022.
Fair Values
The carrying amount of financial assets and liabilities recorded in the financial statements approximates their fair values as at 31
December 2022 except for those detailed in the table below. Fair values are based on quoted market prices and inputs for each
bond issue. Refer to Note 8 for carrying amounts of borrowings.
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Fixed Rate Wholesale Bond 26 26 26
Fixed Rate Wholesale Green Bond 112 130 115
Fixed Rate Retail Bond 342 376 349
Capital Bonds 530 305 542
US Private Placement (USPP) 70 118 122
Australian Medium Term Note (AMTN) 184 214 192
Valuation techniques
The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:
• Level 1 – the fair value is calculated using quoted prices in active markets;
• Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices); and
• Level 3 – the fair value is estimated using inputs that are not based on observable market data.
NOTE 3. NON GAAP MEASURE – UNDERLYING EARNINGS
Underlying earnings after tax is presented to enable stakeholders to make an assessment and comparison of earnings after
removing one-off and/or infrequently occurring events, impairments, any change in the fair value of derivative financial
instruments and gain/(loss) on disposal, all net of tax expense. Changes in the fair value of financial instruments are excluded
from underlying earnings in order to align their impact when they mature with the underlying hedged items.
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
PROFIT FOR THE PERIOD 230 427 469
Change in the fair value of financial instruments (52) (7)82
Fixed asset loss on disposal– 2 –
Kawerau insurance receipts–– (26)
Close-out of electricity swap–50–
Sale of share in Tilt Renewables Limited– (367) (367)
Gain on existing NOW Broadband investment (11)––
Adjustments before tax expense (63)(323)(311)
Tax exp e nse15 (16) (12)
Adjustments after tax expense (48)(339)(323)
Underlying earnings after tax18289 146
Tax has been applied on all taxable adjustments at 28%.
NOTE 4. SHARE CAPITAL AND DISTRIBUTION
The share capital of the Company is represented by 1,400,012,517 ordinary shares (30 June 2022: 1,400,012,517) issued and fully
paid. These shares do not have a par value, have equal voting rights and share equally in dividends and any surplus on winding up.
Unaudited
31 Dec 2022
Number of
shares (M)
Unaudited
31 Dec 2022

$M
Unaudited
31 Dec 2021
Number of
shares (M)
Unaudited
31 Dec 2021

$M
Audited
30 Jun 2022
Number of
shares (M)
Audited
30 Jun 2022

$M
Treasury shares
Balance at the beginning
of the period 19 50 39 100 39 100
Disposal of treasure shares (5) (12)–– (20) (50)
Balance at the beginning
and end of the period 14 38 39 100 19 50
In February 2022, the Company announced a Dividend Reinvestment Plan ("DRP") that applied to the 2022 final dividend.
The DRP resulted in the transfer of 3,949,542 treasury shares to shareholders that elected to reinvest the net proceeds of
cash dividend paid.

15
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2022
Deferred ‘inception’ gains/(losses)
There is an assumption that when derivative contracts are entered into on an arm's length basis, fair value at inception would be
zero. Where the contract price of non exchange traded electricity derivative contracts and Power Purchase Agreement (PPA) differ
from the prevailing derived market price curve, an inception adjustment is made to bring the initial fair value of the contract to
zero at inception. This inception adjustment is amortised over the life of the contract by adjusting the future price path used to
determine the fair value of the derivatives by a constant amount to return the initial fair value to zero.
The table below details the movements in inception value gains/(losses) included in the fair value of derivative financial assets
and liabilities:
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Opening balance 26 27 27
New hedges 21 (79) 10
Existing hedges realised during the period– (3) (11)
Closing balance 47 (55) 26
NOTE 6. PROPERTY, PLANT AND EQUIPMENT
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Opening net book value 8,080 6,828 6,828
Additions in relation to the acquisition of Tilt New Zealand assets– 1,048 1,042
Additions in relation to the acquisition of Trustpower retail business–– 41
Additions in relation to the acquisition of NOW New Zealand assets 4 ––
Additions 41 69 154
Disposals– (3) (7)
Net revaluation movement–– 293
Depreciation charge for the period (146) (129) (271)
Closing net book value 7,979 7,813 8,080
Property, plant and equipment includes $92 million of right-of-use assets (31 December 2021: $53 million,
30 June 2022: $97 million).
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Financial Assets
Level 1 57 33 48
Level 2 43 39 59
Level 3 715 66 592
Total 815 138 699
Financial Liabilities
Level 1 58 31 46
Level 2 168 102 148
Level 3 616 225 498
Total 842 358 692
Valuation Process of Level 3 Financial Instruments
Level 3 financial instruments included non-traded electricity contracts which are valued using a discounted cashflow
methodology incorporating a combination of ASX market prices for first three years and Management's internal view
of forward prices which range from a minimum of $76/MWh and a maximum of $214/MWh.
RECONCILIATION OF LEVEL 3
FAIR VALUE MOVEMENTS
Fair value through
other comprehensive income
Fair value through profit or loss
Unaudited
6 Months
31 Dec
2022
$M
Unaudited
6 Months
31 Dec
2021
$M
Audited
12 Months
30 Jun
2022
$M
Unaudited
6 Months
31 Dec
2022
$M
Unaudited
6 Months
31 Dec
2021
$M
Audited
12 Months
30 Jun
2022
$M
Opening balance (257) (284) (284) 351 25 25
Acquired contracts–– – –– 345
New contracts (9) (54) (76) (1) (7) (12)
Matured contracts 18 10 30 4 5 6
Gains and losses
Through the income statement – – – 48 (3) (13)
Through other comprehensive income (55) 149 73 – – –
Closing balance (303) (179) (257) 402 20 351
NOTE 5. FINANCIAL INSTRUMENTS (CONTINUED)

16
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2022
NOTE 8. BORROWINGS

Borrowing
Currency
Denomination


Maturity


Coupon
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Bank facilitiesNZDVariousFloating 130 160 226
Commercial paper programmeNZD< 3 monthsFloating 288 275 255
USPP – US$30mUSDDec-20224.35%– 39 39
Wholesale bondsNZDMar-20235.79% 25 26 25
USPP – US$45mUSDDec-20254.60% 59 59 59
Green retail bonds (MCY040)NZDSept-20262.16% 201 201 201
Green retail bonds (MCY030)NZDSept-20271.56% 201 201 201
Green wholesale bondsAUDNov-20282.92% 208 208 208
Green wholesale bondsNZDOct-20301.92% 148 146 147
Capital Bonds (MCY020)NZDJul-20493.60% 302 302 302
Capital Bonds (MCY050)NZDMay-20525.73% 252 – 252
Lease liabilitiesNZD 117 77 120
Deferred financing costs (8) (6) (9)
Fair value adjustments (109) (23) (70)
Carrying value of loans 1,814 1,665 1,956
Current 462 487 561
Non-current1,352 1,178 1,395
1,814 1,665 1,956
The Group has $725 million of committed and unsecured bank loan facilities as at 31 December 2022 (30 June 2022: $750m).
NOTE 7. INVESTMENT AND ADVANCES TO ASSOCIATES AND JOINT ARRANGEMENTS
(JOINT VENTURES AND JOINT OPERATIONS)
Investments include:
Interest held
Name of entityPrincipal activityType
Unaudited
31 Dec
2022
Unaudited
31 Dec
2021
Audited
30 Jun
2022Country
TPC Holdings LimitedInvestment holdingAssociate25.00%25.00%25.00%New Zealand
NOW New Zealand LimitedInternet Service ProviderAssociate0.00%48.46%48.46%New Zealand
RotokawaSteamfield operationJoint operation64.80%64.80%64.80%New Zealand
Ngā Awa PūruaElectricity generationJoint operation65.00%65.00%65.00%New Zealand
EnergySource LLCInvestment holdingJoint venture20.86%20.86%20.86%United States
EnergySource Minerals LLCMineral extractionJoint venture18.41%20.26%18.99%United States
In December 2022 the Group acquired the remaining 51.54% shareholding in NOW New Zealand Limited. In accordance
NZ IFRS 3 - Business Combinations, the Group's existing stake was remeasured to fair value resulting in a gain of $11m reported
in the Income Statement with the entire investment subsequently being reclassified as a wholly owned subsidiary.
AssociatesJoint ventures
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Balance at the beginning
of the period 67 77 77 6 9 9
Additions during the period– ––3––
Share of earnings (1)– (2)–– (3)
Share of movement in other
comprehensive income
5 7 (2)–––
Distributions received during
the period
(3) (2) (6)(3)––
Reclassification to subsidiary
during the year
(16)–––––
Fair value revaluation during the year 11 –––––
Balance at the end of the period 63 82 67 6 9 6

17
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2022
Transaction value
Unaudited
6 Months
31 Dec 2022
$000
Unaudited
6 Months
31 Dec 2021
$000
Audited
12 Months
30 Jun 2022
$000
Key management personnel compensation
(paid and payable) comprised:
• Directors’ fees5775301,030
• Benefits for the Chief Executive and Senior Management:
Salary and other short-term benefits 3,673 3,170 6,564
Share-based payments 416 281 561
4,666 3,981 8,155
Increase in Director's fees is due to the addition of two new directors in the current financial year.
Other transactions with key management personnel
Key management personnel are those people with responsibility and authority for planning, directing and controlling the activities
of the Group. Key management personnel for the Group are considered to be the Directors and Senior Management.
A number of Directors provide directorship services to other third party entities.
A number of key management personnel provide directorship services to subsidiaries and other third party entities as part of their
employment without receiving any additional remuneration.
The Group purchases directors and officers insurance for the benefit of key management personnel in relation to the services they
provide to the Group.
NOTE 9. RELATED PARTY TRANSACTIONS
Majority shareholder
The majority shareholder of Mercury NZ Limited is the Crown, providing it with potential influence over the Group.
Transactions cover a variety of services including trading energy, postal, travel and tax.
Transactions with related parties
The Group entered into a number of contracts with other Crown-controlled entities to hedge against wholesale electricity price
risk, the most significant being a virtual asset swap with Meridian Energy Limited which has a remaining life of 3 years and a
contract for difference with Genesis Energy Limited for generation produced at the Waipipi wind farm.
Mercury NZ Limited has investments in subsidiaries, associates and joint arrangements, all of which are considered related parties.
As these are consolidated financial statements, transactions between related parties within the Group have been eliminated.
Consequently, only those transactions between entities which have some owners external to the Group have been reported
below:
Transaction value
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Associates
• Management fees and service agreements received 10 5 13
• Energy contract settlements received/(paid) (3) 5 21
• Service agreements (paid)/received (3) 1 4
Joint operations
• Management fees and service agreements received/(paid)107 18
• Energy contract settlements received/(paid)11 10
An advance to TPC Holdings Limited of $4 million (30 June 2022: $4 million) is interest free and repayable on demand subject to
certain conditions being met.
The long-term advance to our Rotokawa Joint Venture partner of $4 million (30 June 2022: $4 million) carries a floating interest
rate. Repayments under the advance are linked to the level of receipts under the geothermal energy supply agreement. There is
no fixed repayment date, the agreement will terminate on payment of any outstanding balances.
No related party debts have been written off, forgiven, or any impairment charge booked.

18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2022
NOTE 10. COMMITMENTS AND CONTINGENCIES
Commitments
Unaudited
6 Months
31 Dec 2022
$M
Unaudited
6 Months
31 Dec 2021
$M
Audited
12 Months
30 Jun 2022
$M
Capital327195245
Capital commitments include purchases of both property, plant and equipment (PP&E) and intangibles. PP&E commitments
include contracts for construction of wind generation assets at Turitea and Kaiwera Downs and refurbishment of hydro generation
assets at Karapiro. Intangible commitments are contracts to purchase New Zealand emissions trading scheme (NZ ETS) units. In
the event the NZ ETS is terminated the existing forward purchase agreements, which cover the five year period from the end of
the reporting period, will also terminate.
Contingencies
The Group holds land and has interests in fresh water and geothermal resources that are subject to claims that have been brought
against the Government.
The Pouakani Claims Trust No 2 and a group of kaumatua have filed a claim in the Māori Land Court seeking a declaration that
certain parts of the Waikato riverbed are Māori customary land, including the riverbed beneath the Whakamaru, Maraetai I and II
and Waipapa dams. The claim has been amended to include interests in the water flowing over the riverbed. Mercury holds the
fee simple or beneficial title to those parts of Waikato riverbed beneath the Whakamaru, Maraetai I and II and Waipapa dams
and has received advice that the applicants are unlikely to succeed with a claim to customary title in that land. Mercury sought
orders striking out the claim in relation to the parts of the riverbed to which Mercury holds fee simple or beneficial title, and water.
The Court recently dismissed Mercury’s strike out application, on the basis that the matters Mercury raised should be dealt with
at trial. Mercury has challenged this decision by issuing a judicial review claim. The applicants have also filed a related claim in
the Waitangi Tribunal pursuant to the Treaty of Waitangi Act 1975, but have not yet taken any further steps in relation to that
claim. The applicants recently launched a third judicial review proceeding in the High Court seeking to place s 27A State-owned
Enterprises Act 1986 memorials on the record of title of certain Mercury operating easements. The judicial review claim is yet to
be heard.
The Group holds land at Maraetai, Waikato that was subject to a remedies hearing brought against the Government in the
Waitangi Tribunal. The remedies hearing related to an application seeking binding recommendations for the resumption of land
at Pouakani, including the Group’s land at Maraetai. Until recently, this claim was the subject of litigation. However, that litigation
ended in December 2022, when Parliament enacted legislation that brought the claim concerning Mercury’s land at Maraetai to
an end without any resumption of Mercury’s land.
A separate claim by the New Zealand Māori Council relating to fresh water and geothermal resources was lodged in 2012 with the
Waitangi Tribunal. The Tribunal concluded that Māori have residual (but as yet undefined) proprietary rights in fresh water and
geothermal resources and it will be for the Government to determine how any such rights and interests may best be addressed.
The Tribunal has recently indicated its intention to progress to stage three of that inquiry, albeit the scope of stage three is still
being considered in light of the Government’s draft Natural and Built Environments Bill. The impact of this claim on the Group’s
operations is unknown at this time.
From time to time the Group will issue letters of credit and guarantees to various suppliers in the normal course of business.
However, there is no expectation that any outflow of resource relating to these letters of credit or guarantees will be required as a
consequence.
The Group has no other material contingent assets or liabilities.
NOTE 11. SUBSEQUENT EVENTS
The Board of Directors has approved an interim dividend of 8.7 cents per share to be paid on 3 April 2023 and has announced a
dividend reinvestment plan.
There are no other material events subsequent to balance date that would affect the fair presentation of these financial
statements.

19
Shareholder enquiries
You can view your investment portfolio,
change your address, supply your email,
update your details or payment instructions
online: www.investorcentre.com/nz. You will
need your CSN and FIN numbers to access
this service.
Enquiries may be addressed to the Share
Registrar (see Directory for contact details).
Investor information
Our website at mercury.co.nz is an excellent
source of information about what’s happening
within the company.
Our Investor Centre allows you to view all regular
investor communications, information on our
latest operating and financial results, dividend
payments, news and share price history.
Electronic shareholder communication
It is quick and easy to make the change to
receiving your reports electronically. This can
be done either:
Online at www.investorcentre.com/nz by using
your CSN and FIN numbers (when you log
in for the first time). Select 'My Profile' and
'Communication Preferences' to update your
details, or;
By contacting Computershare Investor Services
Limited (see Directory for contact details).
Board of Directors
Prue Flacks, Chair
Dennis Barnes*
Hannah Hamling
Andy Lark**
James Miller
Susan Peterson
Scott St John
Patrick Strange
Mike Taitoko
Lorraine Witten
Executive Management Team
Vince Hawksworth,
Chief Executive
Lucie Drummond,
General Manager Sustainability
Phil Gibson,
General Manager Portfolio
Stewart Hamilton,
General Manager Generation
Julia Jack***,
Chief Marketing Officer
William Meek,
Chief Financial Officer
Craig Neustroski,
General Manager Commercial Operations
Fiona Smith,
General Manager Customer Operations
Marlene Strawson,
General Manager People & Performance
Company Secretary
Howard Thomas,
General Counsel and Company Secretary
Investor Relations
& Sustainability Enquiries
William Meek,
Chief Financial Officer
Phone: +64 27 517 3470
Email: investor@mercury.co.nz
Registered Office in New Zealand
Mercury NZ Limited
33 Broadway, Newmarket, Auckland 1023
P O Box 90399
Auckland 1142
New Zealand
Registered Office in Australia
c/– TMF Corporate Services
(Australia) Pty Limited
Suite 1, Level 11, 66 Goulburn Street,
Sydney, NSW 2000
Phone: +61 2 8988 5800
Legal Advisors
Chapman Tripp
Level 34
PwC Tower at Commercial Bay
15 Customs Street West
Auckland 1010
PO Box 2206, Auckland 1140
Phone: +64 9 357 9000
Bankers
ANZ Bank
ASB Bank
Bank of China
Bank of New Zealand
China Construction Bank
Commonwealth Bank of Australia
Industrial and Commercial Bank of China
MUFG Bank
Mizuho Bank
Westpac
Credit Rating (re-affirmed November 2021)
Long-term: BBB+
Outlook: Stable
Share Registrar – New Zealand
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna,
Auckland 0622
Private Bag 92119
Victoria Street West
Auckland 1142, New Zealand
Phone: +64 9 488 8777
Email: enquiry@computershare.co.nz
Web: www.investorcentre.com/nz
Share Registrar – Australia
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street, Abbotsford,
VIC 3067, GPO Box 3329, Melbourne,
VIC 3001, Australia
Phone: 1 800 501 366 (within Australia)
Phone: +61 3 9415 4083 (outside Australia)
Email: enquiry@computershare.co.nz
* Mercury has announced that as a result of taking up a full time executive appointment
in Australia, Dennis Barnes will step down from the Board at a date to be determined.
** Andy Lark retired from the Mercury Board on 22 September 2022.
*** Julia Jack has resigned from Mercury effective before end April 2023.
INFORMATION FOR
SHAREHOLDERS.
DIRECTORY.

---

Distribution Notice



Section 1: Issuer information
Name of issuer Mercury NZ Limited
Financial product name/description Mercury NZ Limited ordinary shares
NZX ticker code MCY
ISIN (If unknown, check on NZX
website)
NZMRPE0001S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date 16/03/2023
Ex-Date (one business day before
the Record Date)
15/03/2023
Payment date (and allotment date
for DRP)
03/04/2023
Total monies associated with the
distribution
$120,582,693
Source of distribution (for example,
retained earnings)
Income available for distribution
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.12083333
Gross taxable amount $0.12083333
Total cash distribution $0.08700000
Excluded amount (applicable to
listed PIEs)
N/A
Supplementary distribution amount $0.01535294
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.03383333
Resident Withholding Tax per
financial product
$0.00604167

Section 4: Distribution re-investment plan
DRP % discount (if any)
0.0%

Start date and end date for
determining market price for DRP
20/03/2023 24/03/2023
Date strike price to be announced
(if not available at this time)
27/03/2023
Specify source of financial products
to be issued under DRP
programme (new issue or to be
bought on market)
Treasury stock
DRP strike price per financial
product
TBC
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
17/03/2023
Section 5: Authority for this announcement
Name of person

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

21/02/2023