2023 Annual Shareholder Meeting

Contact Energy Limited Level 2 Harbour City Tower, 29 Brandon Street, Wellington 6011 | PO Box 10742, Wellington 6143
P: +64 4 499 4001 | W: contactenergy.co.nz



Wednesday, 15 November 2023

Chair’s address to ASM
On behalf of the Contact Energy Board of Directors, I am pleased to share reflections and
observations on the past year, provide an update on our strategic ambitions, and our views
on the path ahead; a path that provides an opportunity for Contact to play an integral part in
shaping the future of a truly electrified New Zealand.
This past year is best characterised by our ongoing investment in renewable generation, our
commitment to decarbonise our portfolio, and the ongoing transformation of Contact to
ensure that we are well positioned for the future.
Before I start, I want to acknowledge and thank my fellow Board members, our CEO Mike
Fuge, and the entire Contact team who have again put in significant effort this year.
Financial Performance
It has been a year of solid financial performance achieved in an environment that has
included unprecedented weather events and New Zealand and international economic
headwinds.
In line with guidance, the company delivered an underlying EBITDAF of $573 million, and in
the 2023 financial year delivered investors with an annual dividend of 35 cents per share in
line with the 2022 financial year.
Mike will take you through the financial results in more detail during his address.
Strategic update
As Chair, I want to reiterate the commitment and focus on delivering the Contact26 strategy
- to build a better New Zealand by being a leader in the country’s decarbonisation.
We’re now in the third year of our Contact26 strategy. I am pleased to say that Contact is
delivering against this strategy. Our focus on strategy execution and operational excellence
supports not only our solid performance in the past year, but also sets Contact up strongly
for future growth.
Highlights of the year
Highlights of the year include the $1.2billion of renewable geothermal developments at
Tauhara and Te Huka unit 3 currently under construction, Contact’s pioneering energy
agreement with industrial giant NZ Steel will remove one per cent of New Zealand’s
emissions, and finally we accelerated our ambition to decarbonise Contact’s portfolio.

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We now have a clear path and are committed to net zero emissions from our generation
portfolio by 2035.
We also have a significant and well progressed pipeline of renewable development projects
across geothermal, wind, solar and grid-scale batteries which, subject to final investment
decisions and appropriate market conditions, we intend to progress further in the next 12
months.
This month we updated the market that the online date for the Tauhara geothermal plant is
moving from the first quarter of 2024 to Q3 in 2024.
Tauhara, near Taupō, is a nationally significant renewable energy project which will have a
substantial impact on the country’s transition to electrification.
Tauhara is an important development for both Contact and the country. Let’s not forget it
was more than a decade in the planning stages, so it stands to reason, as we work through
the stages of commissioning, we take a prudent and pragmatic approach to coming online.
As with all projects of this magnitude and complexity, the final stages and commissioning is
complex. The Board has full trust and faith in the team that they will deliver.
Other reflections
The independent Boston Consulting Group (BCG) report, The Future is Electric, was
released in 2022. We were part of a large stakeholder group, including gentailers and major
distribution companies, who commissioned this important analysis.
BCG identified the significant level of investment across generation, distribution and
transmission required to both decarbonise the energy sector and support the broader
decarbonisation of the economy through electrification.
Prudent investment in new generation requires reasonable investment certainty – certainty
of government policy and certainty the government will not crowd out private sector
investment and allow for infrastructure to flow.
We are optimistic - given the signals from the incoming government – that the pathway for
investment, and subsequent decarbonisation of our economy for the good of New Zealand
and the planet – will be clear.
We have been concerned about the impact of the proposed battery project at Lake Onslow
that was intended to address dry year risk. I am pleased that the parties involved in the
incoming government have indicated they intend to shelve ongoing work on the Lake
Onslow project. It will be a sound decision to cancel ongoing evaluation of a speculative,
risky and extremely expensive venture that continued to undermine certainty in the market –
a necessary condition of accelerated investment in renewable generation by the private
sector.
However, as we transition to decarbonise the energy sector the issue of dry year risk has not
disappeared. There are renewable projects in development across the industry that will
materially reduce that risk over time. We remain of the view that Lake Onslow was not the

Chair’s address to ASM | 15 November 2023 | Contact Energy Ltd
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solution. There is now further opportunity and a positive emphasis for the industry and
government to work together to find a practical and affordable dry year solution for the good
of the country.
The BCG report also highlighted that current regulatory settings for both transmission and
lines companies may not be consistent with, or appropriately support, the significant
investment required to transition to a renewable, electric future.
The incoming government will need to focus on supporting appropriate regulation for
transmission and distribution to ensure that the investment is realised. The current
regulatory framework is not fit for purpose. The government needs to work quickly and
effectively to develop a new framework to enable investment in those areas if we are to
achieve New Zealand’s carbon reduction targets in the coming decades.
Tiwai update
Contact plays an important role in supporting New Zealand industry to decarbonise and to
help build and contribute to a healthy economy.
The New Zealand Aluminium Smelter (NZAS) continues to indicate a desire to maintain
operations at Tiwai Point beyond 2024.
The smelter is valuable to our country, and our economy particularly as a significant
exporter. It is also highly carbon efficient in its production of premium aluminium as well as
a major contributor to the Southland economy. New Zealand Aluminium Smelter has also
signalled that the smelter can play a key role in addressing the dry year risk through demand
response.
We believe that the fundamentals for the green and high-purity aluminium production at
Tiwai remain strong. We have played our part to support the extension. It is now up to
others.
It would be a travesty if the parties did not reach a satisfactory agreement that gave certainty
to the people of Southland and to the New Zealand economy.
Thank you
And finally, I would like to finish by thanking long-serving director Vic Crone for her eight
years of service with Contact. Vic, who has also served on the Audit and Risk Committee, is
retiring from Contact this month to pursue new endeavours. We appreciate the expertise,
insights and guidance Vic shared during her time with us and wish her all the best.
Ngā mihi nui.
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Investor enquiries
Shelley Hollingsworth
Investor Relations and Strategy Manager
+64 27 227 2429
shelley.hollingsworth@contactenergy.co.nz

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Media enquiries
Louise Wright
Head of Communications and Reputation
+64 21 840 313
louise.wright@contactenergy.co.nz

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Contact Energy Limited Level 2 Harbour City Tower, 29 Brandon Street, Wellington 6011 | PO Box 10742, Wellington 6143
P: +64 4 499 4001 | W: contactenergy.co.nz



Wednesday, 15 November 2023

CEO’s address to ASM
Tēnā koutou, tēnā koutou, tēnā koutou katoa. Ngā mihi nui ki a koutou katoa.
Today I want to share my reflections on the past 12 months with you, what we have
achieved, what we have learned, and what we have in front of us.
We’re now into the third year of our Contact26 strategy with the vision to build a better
Aotearoa New Zealand by leading the decarbonisation of our country. The place we all call
home.
Our strategy is to:
• Grow demand;
• Grow renewable development;
• Decarbonise our portfolio; and
• Create outstanding customer experiences.
This strategy remains sound. It is delivering on our strong commitment to decarbonise,
invest, grow and deliver shareholder value.
We’re deep in execution mode, in what has been a year that can be characterised by
significant investment, continued transformation and demonstrable progress against our
strategy. As Contact transforms and grows, we remain focussed on operational excellence,
using the learning from this period of change and expansion to continuously improve the
execution of our strategy.
I am incredibly proud of our 1200-strong Contact team and what they have achieved. They
are a team of dedicated professionals who everyday come to work passionate about the part
they play in helping us reach our goal of Net Zero from our generation activities by 2035.
But more on Net Zero later.
Business and Financial performance
Looking at our achievements in the past financial year, our business underlying performance
has remained resilient in a volatile environment.
We have delivered a solid financial performance with underlying EBITDAF growth to
$573million - a five per cent increase from last year.
Contact’s profit after tax was $127million. This included an onerous contract provision for
the Ahuroa Gas Storage facility. On an underlying basis, our profit was $211 million.

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This solid performance was delivered despite soft short-term wholesale market conditions,
the highest hydro inflows in post-market history, and the North Island’s rainfall being the
highest on record.
This resulted in lower spot market prices and saw spot prices separate between the North
and South Islands. We responded to these conditions by reducing thermal generation to the
lowest in Contact’s history. The decision bore good financial results – and lowered our
greenhouse gas emissions.
We continue to carefully manage existing operations to optimise performance while focusing
on investment in renewable generation and innovation and decarbonising our portfolio. This
includes the $1.2billion of construction currently underway, a strong pipeline of potential
geothermal, wind, solar and battery investments, the measured retirement of thermal
generation, and investment in digital innovation in retail and generation.
As the benefits of this investment is realised, we anticipate a sustained uplift in earnings and
shareholder returns and cash flow in future years.
Our FY24 normalised and expected EBITDAF guidance of $600million remains.
Grow demand
Demand for our renewable energy is strong.
Our watershed moment came in May when we announced a pioneering energy agreement
with industrial giant New Zealand Steel. We will provide 30MW of energy for its new
$300million electric arc furnace in a unique arrangement that will enable the industry leader
to scale down production in peak demand time, or supply shortages.
The flexible off-peak feature is also part of a significant step towards meeting New Zealand’s
climate change goals and once in operation this feature will remove 800,000 tonnes of
greenhouse gas emissions annually. This is the same as taking 300,000 cars off the road
permanently, or one per cent of New Zealand’s total emissions. This is an outstanding
example of how we – in industry – can with smart thinking and a partnership mindset work
together for the good of the planet.
The trend continues with accelerating opportunities with other industrial companies exploring
similar opportunities to decarbonise industrial heat processes and cut fossil fuel use.
And so, to Tiwai. We believe strongly that decarbonisation of our economy should not mean
the deindustrialisation of our country. The New Zealand Aluminium Smelter at Tiwai is
valuable to our economy, is a significant exporter, and a major employer and contributor to
the Southland economy.
Contact has provided Tiwai with commercial terms for a long-term agreement to support a
tranche of its electricity requirements. Like New Zealand Steel, demand response
opportunities at Tiwai also offer an opportunity to support New Zealand’s energy security
with the ability to scale down production if required in the event of supply shortages. It is
time that we moved forward from talking, and to get this settled.

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Grow renewable development: Tauhara and Major Projects
I also want to update you all on our $1.2 billion of renewable generation sites currently under
construction, along with an update on our pipeline of potential geothermal, wind, solar and
battery investments.
As we go on a journey of decarbonisation and make a real difference to the world in which
we live, we are going to have some tough experiences. Being a leader is bold, and at times
you have to pause and regroup in order to move forward. As history shows there are
challenges and opportunities whenever there is big change.
Ignoring the challenges of climate change is not an option. To improve the outcomes for
New Zealand and to play our part in the country’s electric future demands grit,
determination, and focus. We play the long game in leaving our legacy for good. A legacy for
future generations.
We have announced that Tauhara, in Taupō is now expected to come online in Q3 2024,
from Q1 2024.
Building a geothermal plant is complex. We are working through a range of commissioning
issues at the development, including the remediation of underperforming steam-field valves
and liquid handling systems, as well as the implications of a steam hammer event.
Given the range of commissioning issues identified, some elements of the steam separation
plant will require further design and modification. It is because of this; the timeline is
impacted.
With the expectation to have the plant online in Q3, this will be at least at the initial design
capacity of 152MW, and we are targeting the full planned output of 174MW at Tauhura’s first
planned outage following further optimisation and plant modifications.
While this is not the outcome we were targeting when we started commissioning, the
commissioning stage in any geothermal project is when unknowns such as this are brought
to the fore and mitigations are applied.
The onsite team are expert in major infrastructure and geothermal development, and are
focussed on minimising this delay, while ensuring process safety first on this asset, Tauhara,
that will serve generations.
It is in the Major Projects team, created by us to support our execution mode, we have built
in-house expertise so we can troubleshoot these issues in real time, and without delay for
the best outcome.
Tauhara remains a stand-out renewable energy project that will be a fantastic long-term
asset for New Zealand and Contact.
Contact knows the importance to New Zealand of quality infrastructure and rebuilding
executional capability.
In line with international best practice, we have stronger processes with front end design,
have applied modern digital design tools, and significantly bolstered in-house capability and

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capacity with the setting up of a Major Projects division led by Jack Ariel, with a significant
depth of experience developing large infrastructure programmes internationally.
Te Huka3 is now more than 66 per cent complete, ahead of schedule and with all major
equipment here in New Zealand or in transit.
Te Huka 3, next to our existing Te Huka geothermal power station, will be a single unit
binary power plant at 51.4MW, with carbon capture capability from day one. Once
operational it will produce clean, renewable electricity that operates 24/7 and common with
all geothermal generation, is not reliant on the weather.
Our GeoFuture project, while subject to a final investment decision, will see us replace the
original Wairakei geothermal plant commissioned in 1958, and move existing operations
away from the Waikato River, increasing the efficiency and generation capacity from the
Wairakei geothermal source.
After comprehensive engagement with the local community and tangata whenua, we
received consents to operate for the next 35 years on the Wairakei steamfield.
As part of our commitment to reducing and mitigating the impacts of the environment, we are
reducing significantly our impacts on the local waterways. Through GeoFuture we will be
able to stop all operational discharges of geothermal and cooling water into the Waikato
River.
We are confident of the lessons we have learned, and changes made since Tauhara’s final
investment decision, starting with Te Huka 3 and firmly applied for GeoFuture to ensure
much-improved performance.
This will also apply to our proposed wind, solar and industrial grid-scale batteries. We will
ensure the business cases and market conditions are right for final investment.
Our customers
We’ve worked hard to ensure it is good to be home for New Zealanders in our retail
business. We’re stepping beyond the big stuff to help everyday Kiwi homes decarbonise.
And it’s working.
The FY23 year saw us finish with over 589,000 total customer connections – and a net back
growth of 11.1 per cent on the previous year. Connection growth continues to increase with
as of this month total customer connections is just shy of 600,000.
Also growing, is the uptake of innovative products to help Kiwis lower their own carbon
emissions by making a small change to their behaviour. More than 66,000 customers are
using either our Good Nights plan where electricity is free between 9pm and midnight, or
Dream Charge plan which gives EV owners cheaper rates between 11pm and 7am. So far
84 million hours of free off-peak time has been used by New Zealanders choosing these
products. Next month Good Weekend launches, incentivising customers to use weekend off
peak energy – further reducing the need to use gas or other fossil fuels at peak times.

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Our brand tracking research shows that we are second equal for brand trust amongst New
Zealand energy providers. Our Net Promoter Score (the number of customers who say they
would recommend us, versus those who would not) increased again this year from +39 to
+41. Seventy six percent of customers say Contact is easy to deal with.
Our Legacy for good
As a company we are an integral part of daily life in New Zealand and we’re acutely aware
that our every action, good and bad, has a marked impact on the wellbeing of our
communities – today and in the future.
This was acknowledged in December 2022 when we joined the Dow Jones Sustainability
Asia Pacific Index achieving the second highest ranking of any New Zealand company. We
are delighted to be among the best. It reflects where we are, and a sense that people are
appreciative of businesses that put words into actions, rather than just talk about ambition.
This year, we took the step of accelerating our ambitions to decarbonise our own portfolio.
We now have a clear path to achieve net zero emissions from our generation operations by
2035.
The focus on an orderly transition to renewable energy generation, to retire baseload gas
generation, and to invest and innovate to support the eventual retirement of our peaking
plant, along with targeted sustainable forestry investments, has given us the confidence –
and pathway – to commit to Net Zero for our generation operations by 2035.
It takes courage to take steps forward, and to improve the outcomes for communities and for
people.
As we go on our decarbonisation journey and commit to making a difference, we are going
to have some tough experiences, but fundamentally this is the right thing to do.
Decarbonisation is our legacy for good.
Ngā mihi nui.
- ends -


Investor enquiries
Shelley Hollingsworth
Investor Relations and Strategy Manager
+64 27 227 2429
shelley.hollingsworth@contactenergy.co.nz


Media enquiries
Louise Wright
Head of Communications and Reputation
+64 21 840 313
louise.wright@contactenergy.co.nz