2024 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 | F: +64 4 499 4003 | W: contactenergy.co.nz

Wednesday 13 November 2024

Chair’s address to ASM
Kia ora koutou,
On behalf of Contact Energy Board of Directors, I would like to begin by thanking our people,
our customers and you our shareholders for what has been a successful year characterised by
growth, delivery and performance.
As I share my reflections of the past year, I want to acknowledge the energy sector
opportunities and challenges and talk about how Contact continues to play a leading role in the
electrification transition.
For Contact, 2024 has been a year of strong financial performance, significant investment in
growth and a granular focus on project delivery as we see our world-class geothermal power
station at Tauhara, and soon our other new geothermal plant down the road, Te Huka 3, come
online.
Strategic update and highlights of the year
I am also very pleased to report that we are progressing well against our strategy to be a leader
in the decarbonisation of Aotearoa New Zealand.
Our priorities remain to:
• Grow demand for renewable electricity,
• Develop new, flexible, renewable electricity generation,
• Decarbonise our portfolio,
• And create outstanding customer experiences.
The Board is pleased to see the business executing and delivering on our Contact26 strategy.
I am particularly proud to tell you that our new geothermal power station at Tauhara is now fully
operational and delivering 160MW of renewable energy to the New Zealand electricity system.
It is a fantastic long-term asset for New Zealand, and we can confirm it is the country’s largest
capital project started - and delivered - since the pandemic. We look forward to our official
opening next week with the Prime Minister.
Te Huka 3 is expected to be fully operational by the end of this year. Together these new
geothermal stations will deliver enough renewable energy to power the equivalent of 260,000
Kiwi homes.
We have operated on the Wairakei geothermal steamfield for generations with our power plants
there producing close to 3TWh of renewable electricity. In May we announced our refreshed
approach to the long-term sustainable development of the steamfield.

Chair’s address to ASM | 13 November 2024 | Contact Energy Ltd
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Today I am pleased to announce the Board has approved a final investment decision on the first
stage of replacing Wairakei over the coming five years with a new 100 MW binary plant to be
built at Te Mihi, Te Mihi Stage 2.
Mike will talk in further detail in his address about this significant new geothermal project.
Our retail business continued to focus on innovation for our customers with growth in customer
connections and numbers, as well as an increase in the popularity of our time of use plans that
support, and reward, customers to use energy off peak.
However, I do want to acknowledge retail prices. It has been well documented the country is
going through a period of increased transmission and lines charges; charges forecast to step up
in the next year and beyond. The result will be rising prices for consumers as we pass those
costs on.
It is somewhat ironic that a portion of these price increases are due to higher interest rates,
rates that were implemented to reduce inflation.
Energy delivery and market commentary
There are two themes I want to touch on today.
First, there has been significant commentary on whether the energy market is delivering for
New Zealand after the highly volatile spot prices we saw in August. It is important to
acknowledge this.
These unprecedented market conditions were a direct result of a shortage of gas and a dry
hydrological year. I want to assure you that Contact is playing its part in our commitment to
support the security of energy supply while simultaneously focusing on increasing renewable
generation and the resilience of the electricity network.
Having said that we also recognise the very public impact the situation had on certain
businesses and communities, and while the elevated electricity prices did not affect most as
they were appropriately hedged, it did impact some.
It is interesting to note that wholesale prices have now fallen well below the long-run marginal
cost yet there has been deafening silence by those advocating change.
As we transition to a renewable energy future, there will be periods of high prices and very low
prices. That is the market. The market is functioning. And we are preparing the company to be
well positioned for this.
The government has an important role in providing stable market settings, and an environment
that supports investment and long-term infrastructure competition. This will support the
significant investments in the transition to electrification we all make.
At Contact we have invested significantly.
To continue investments and to grow, the market needs certainty that allows companies like
Contact to invest in renewable generation to support the decarbonisation of New Zealand.
Deindustrialisation helps no one.

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We are working hard on the opportunities that come from the abundant natural resources that
can support New Zealand industry in the electrification transition. We are committed to
growing and supporting New Zealand’s economic prosperity and global competitiveness.
Manawa Energy
And so, to the second theme.
I want to touch briefly on Contact’s September announcement of our intention to bring our
company together with Manawa Energy.
For the past 18 months, we have been working hard on this acquisition. It is now pending
regulatory review and Commerce Commission clearance, which we would hope to be
completed by the middle of next year.
While it is a long process, our view is that the combination of Contact and Manawa will allow
our two companies to accelerate investment further. The team is particularly focused on the
opportunities offered by bringing two companies together and how it can help the market more
generally in managing hydro flows and our complementary assets.
We believe this acquisition will bring more competition to the energy market and support more
independent energy generators and retailers to enter and compete in the market.
The investment and growth of the last year would not be possible without the hard work of my
fellow directors, our CEO Mike Fuge and the entire Contact team. To you, I say thank you.
In the coming year, we remain committed to our Contact 26 vision. We will continue
collaborating with stakeholders, exploring new technologies, and advocating for policies that
accelerate electrification. Together, we can build a more sustainable, prosperous New
Zealand.
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
media@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 | F: +64 4 499 4003 | W: contactenergy.co.nz

Wednesday 13 November 2024

CEO’s address to ASM
Tēnā koutou, tēnā koutou, tēnā koutou katoa. Ngā mihi nui ki a koutou katoa.
It is my pleasure to be here with you today, and to share my insights on the significant past year
for Contact. It is a year marked by major achievements, and I also want to share my highlights
of the exciting opportunities we have ahead of us.
Our strategy, to help build a better Aotearoa New Zealand by being a leader in the
decarbonisation, continues to serve us well.
As we continue to invest and grow, I am pleased to report that in FY24 we have both delivered
and maintained a relentless focus on bringing our Contact26 strategy to life.
With significant investment of $1.2 billion in renewable geothermal generation at Tauhara and
Te Huka 3, work on diverse new energy projects underway, and our own continuing
transformation, Contact is well set up to manage and play its part in the energy transition.
I will later touch on the Manawa Energy opportunity. Suffice to say, we believe the combination
of our two companies will add further resilience and diversification to our portfolio, and support
New Zealand’s energy security.
I also want to acknowledge our people. I am incredibly proud of our 1,250-strong Contact team
and what they have achieved.
They are a group of passionate, dedicated professionals who come to work every day focused
on delivering our strategy, the part they play as individuals to support the energy transition, and
to reach our goal of being Net Zero in our generation operations by 2035.
Business and Financial Performance
We have delivered a strong 2024 financial performance with EBITDAF of $663 million and a
profit after tax of $230 million on an underlying basis.
These results are before recognising the net movement in the onerous contract provision
relating to the Ahuroa Gas Storage facility of $12m within EBITDAF, and $5millon within profit
after tax.
Our financial performance demonstrates our underlying strength; strength that is necessary to
support our significant investment programme.
It is this profit and performance that enables us to maintain momentum in delivering existing
and new renewable energy developments to support the energy transition and the wider New
Zealand economy.
It is worth noting we invested double our profit into renewable development in the last financial
year alone.

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The wholesale generation market was characterised this past financial year by hydro volatility
that impacted operating conditions, at the same time as gas supplies tightened rapidly. This
impacted wholesale prices as a result of more thermal generation.
In anticipation of the Tauhara geothermal station coming online, we increased contracted sales
volumes.
FY24 delivered 37c per share annual dividend to shareholders – up six per cent from FY23.
Normalised and expected EBITDAF for FY25 is $770m, an expected increase that reflects our
$1.2 billion investment in new geothermal plants.
Grow demand and renewable development
Decarbonising New Zealand does not require the deindustrialisation of the country. It means
working alongside New Zealand’s leading industries and businesses as they move to renewable
and flexible energy use.
Securing a long-term flexible demand agreement with NZAS in May was not only an important
step forward for Contact, but also for the country.
We are one of three generators supplying electricity to the aluminium smelter in Tiwai. In
August, the benefit of this flexible demand agreement was realised when, for a brief period,
electricity supply was constrained.
The agreement with NZAS de-risks investment in the renewable generation for a minimum of 10
years, contributes to energy security and helps preserve an important export industry, while at
the same time supporting both the growth and decarbonisation of the New Zealand economy.
Contact’s legacy will be investment and building renewable energy generation and is a
demonstration of our commitment to New Zealanders of today and tomorrow.
Next week, we will officially open our new geothermal power station at Tauhara which at full
capacity will operate at 174MW.
It is a stand-out renewable energy project that will provide secure, baseload, reliable power to
Kiwi homes and businesses, and is an outstanding long-term asset for the country.
Soon after, Te Huka 3, one of the world’s largest single unit binary power stations, is expected
to come online for its 30-day reliability run.
Both new geothermal power stations will produce clean, low or no-carbon renewable electricity
and operate around the clock, unaffected by weather or fossil fuel supply.
Together Tauhara and Te Huka 3 will generate enough renewable energy to power the
equivalent of 260,000 New Zealand homes.
Geothermal energy is an important renewable energy source and provides invaluable baseload
generation. It is New Zealand’s alternative to nuclear power, which is relied upon in many other
countries without geothermal as an option.

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As Rob has announced, construction will soon begin on Te Mihi Stage 2. The new binary plant of
101MW is expected to come online in the middle of 2027.
This first stage of replacing Wairakei will ensure the muscle we have built up these last four
years constructing Tauhara and Te Huka 3 is deployed straight away to ensure this new project
is also successfully delivered.
This development will be phased with a further plant, Te Mihi Stage 3, expected to come online
before June 2031 when resource consent to operate Wairakei A&B geothermal stations ends.
Meanwhile, in the South Island, work on our first solar farm with our joint venture partner
Lightsource bp is underway at the Kowhai Park precinct next to Christchurch Airport.
The $273 million solar farm spans 230 hectares and features close to 300,000 panels. It is
expected to generate 275GWh a year – enough renewable energy demand for 36,000 homes.
Contact will buy 80 percent of the electricity generated under a 15-year Power Purchase
Agreement.
Decarbonising our portfolio
Late this winter, construction started on our first grid-scale battery at Glenbrook, on land
leased from NZ Steel.
This 100MW battery will store excess electricity often generated by wind or sun in off-peak
periods when demand is low, and which may otherwise go to waste.
The Tesla energy storage system will store up to two-hours’ worth of power which will help meet
peak demand over the winter, and other periods of high demand. We expect it to be operational
by March 2026.
What’s more it will contribute to our transition away from fossil fuels in a constrained gas
market. Not to mention support solar and wind generation development.
As we recognised the importance of addressing public concerns over New Zealand’s security of
supply experienced this winter, we have decided to keep the Taranaki Combined Cycle thermal
plant available - as a backstop.
This decision to extend TCC availability will support Contact’s Stratford Peaker Units in the
event of an unplanned outage as well as provide further backup to thermal units in the market.
Operating TCC next year remains subject to scheduled inspection and maintenance work to
meet regulatory requirements, as well as securing gas supply, and operation within its
remaining operating 3,000 hours.
Currently, we do not intend to contract gas for the plant unless market participants express a
demand for it, linked to a gas purchase arrangement.
Long term, the Stratford site remains of strategic importance to us, and the local community.
This is not only for the operation of our remaining thermal units, but importantly as we look to
transition it from a traditional fossil fuel site towards a renewable energy hub.

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We have secured resource consent to build a grid-scale battery at Stratford. And we are
exploring the feasibility of a 170MWp solar farm alongside extra battery storage.
Manawa Energy
In September, we announced we are accelerating our renewable energy strategy with our
proposed acquisition of Manawa Energy.
A significant milestone, the agreement to acquire 100 per cent of the electricity generator, is
subject to Commerce Commission approval.
This deal is about two independent energy companies coming together. It is a combination that
will enable us to accelerate investment and innovation in renewable energy for the benefit of all
New Zealand.
With our diversified – and complementary – portfolio across the North and South Islands this
proposal will enable Contact to sell larger volumes of fixed price electricity contracts over
longer periods into the wholesale market.
Contact and Manawa’s hydro power stations generate higher amounts of electricity at different
times of the year. Our South Island hydro stations at Roxborough and Clyde produce more in
the summer following the snowmelt, while Manawa’s hydro assets in the North Island catch
more rainfall in the winter.
The combination will add resilience and support for New Zealand’s large energy users as well
as independent retailers. Manawa’s complementary power stations will help enable a
smoother transition away from thermal fossil fuels and enable Contact to better manage dry
year risk such as we saw this winter.
Rob has already talked about how the market is likely to evolve in this energy transition with
increasing volatility being a hallmark of which some in New Zealand experienced this August.
This transaction allows us to meet this emergent market challenge head on.
While subject to Commerce Commission clearance and Manawa shareholder approval, the
acquisition to acquire the Tauranga-headquartered generator is made via a mix of Contact
shares and cash. The deal has the support of Manawa’s majority shareholders Infratil and TECT.
Overall, Manawa shareholders will own 18 percent of Contact Energy once the transaction is
complete.
Customer Experience
Which brings me now to our retail business.
We work hard to ensure we find ways to make home better for the New Zealanders whose
homes we keep warm.
We have seen significant growth and delivery in the past financial year.
More than 410,000 New Zealanders now choose Contact to connect their homes and
businesses with electricity, gas, broadband, mobile or a combination of all four. We have grown
36,000 connections in the last year, and indications are that is increasing.

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Through our Time of Use plans, where New Zealanders can get free power in return for off peak
use, we’ve helped more than 100,000 New Zealand households do good by their wallet while at
the same time reducing their carbon footprint and lessening peak time demand.
Since we launched our Good Plans in August 2021, our customers have benefited from
151million hours of free power.
In May we started a staged roll out of Hot Water Sorter, a programme to switch off hot water
cylinders when there is high demand for electricity and thermal generation is most likely to be
required.
With this innovative programme, our customers do not need to do anything; we make data
driven decisions based on each customers actual energy usage. During a three-month trial
most customers found no difference to their hot water supply – and we have seen around
9MWh of energy usage a day move to off peak. We are now underway with our national rollout.
We are acutely aware of the cost-of-living pressures on New Zealanders. And we believe
everyone should have a warm, dry safe home and we are working hard to support New
Zealanders’ energy wellbeing.
We have removed disconnection and reconnection fees for those in our credit cycle,
irrespective of their payment method. Our Energy Wellbeing team continues to work alongside
customers in need to support their individual circumstances.
We have recently appointed a Customer Wellbeing Manager and will continue our work with
social agencies including Women’s Refuge and Good Shepherd to help us target meaningful
support to those who need it most.
The future
Before I finish, I wish to specifically acknowledge the upcoming retirements of two of my
leadership team, Jack Ariel, Major Projects Director, and Jacqui Nelson, our Chief Development
Officer.
Jack and Jacqui - thank you both for your leadership, intelligence, dedication and drive. To me,
you both exemplify the very best characteristics of the Contact team.
The past year has shown Contact is well on the path of delivering to our strategy in building
significant renewable energy infrastructure that will benefit all; as well as investing in our
renewable pipeline and helping industries and New Zealanders to decarbonise.
We are excited about the future. We have a clear strategy, and supportive shareholders and
investors.
We stand ready to deliver on the opportunities ahead to help us be a leader in the
decarbonisation of the country.
And finally, to our people. Thank you. I am proud of you and all that you have delivered.
Ngā mihi nui.

- ends –

CEO’s address to ASM | 13 November 2024 | Contact Energy Ltd
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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
media@contactenergy.co.nz