Robust performance in challenging conditions

Results announcement




Results for announcement to the market
Name of issuer Mercury NZ Limited (MCY)
Reporting Period 6 months to 31 December 2024
Previous Reporting Period 6 months to 31 December 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,755,000 +9.35%
Total Revenue $1,755,000 +9.35%
Net profit/(loss) from
continuing operations
($67,000) -138.51%
Total net profit/(loss) ($67,000) -138.51%
Interim Dividend
Amount per Quoted Equity
Security
$0.09600000
Imputed amount per Quoted
Equity Security
$0.03733333
Record Date 06 March 2025
Dividend Payment Date 01 April 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$3.26 $3.36
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

25/02/2025

Unaudited financial statements accompany this announcement.

---

The Mercury Building, 33 Broadway, Newmarket 1023
PO Box 90399, Auckland 1142





STOCK EXCHANGE LISTINGS: NZX (MCY) / ASX (MCY)

NEWS RELEASE
Robust performance in challenging conditions
25 February 2025 – Careful portfolio management helped mitigate the full impact of dry weather and reduced
generation for Mercury over the period.
HY25 FINANCIAL RESULTS SUMMARY


HY2025 HY2024 Change %
EBITDAF ($M) 418 434 (4)%
NET PROFIT AFTER TAX ($M) (67) 174 (139)%
STAY-IN-BUSINESS CAPITAL EXPENDITURE ($M) 73 60 22%
ELECTRICITY GENERATION (GWh) 4,191 4,486 (7)%
INTERIM FULLY IMPUTED ORDINARY DIVIDEND (CENTS PER SHARE) – TO BE PAID ON 1
APRIL 2025
9.6 9.3 3%

“Despite challenging operational conditions, we’ve continued to pursue growth in new renewables and importantly, support
security of supply,” said Mercury Chair Scott St John.
“We’ve seen good progress on our commitment to investing over $1 billion in new renewables, with three renewable projects
under construction – enough to power up to 142,000 houses with renewable energy,” said Mr St John.
FINANCIAL OVERVIEW
Lake Taupō was above normal levels by the end of the calendar year, despite low hydro inflows, due to a focus on rebuilding
storage ahead of winter 2025.
Mercury reported EBITDAF over the period of $418 million ($16 million down on the prior comparable period) largely reflecting
lower generation and increased operating expenses, offset by increased sales yields. Net profit after tax was a loss of $67
million for the period ($241 million lower than the prior comparable period), largely due to adverse non-cash movements of non-
hedge accounted electricity derivatives.
Operational expenditure tracked up to $207 million ($16 million up on the prior comparable period) reflecting continued
investment in generation maintenance.
Meanwhile, stay-in-business capital expenditure for the period was $73 million (up $13 million on the prior comparable period)
and growth capital expenditure was $139 million (up $69 million on the prior comparable period). This largely related to
construction costs for new generation projects (fifth unit at Ngā Tamariki geothermal station, Kaiwera Downs stage 2 and
Kaiwaikawe wind farms).
“Nearly 50% of our first half earnings have been reinvested in new and existing renewable assets,” said Mr St John.


KEY INFORMATION
 Challenging conditions: Low hydro inflows contributed to reduced generation, impacting earnings.
 Significant investment in renewables: 46% of HY25 earnings reinvested into new and existing assets; $1 billion currently
committed to new renewables.
 Prioritising security of supply: in addition to taking direct action, contributing to whole-of-system solutions.

The Mercury Building, 33 Broadway, Newmarket 1023
PO Box 90399, Auckland 1142
NAVIGATING COMPLEXITY THROUGH THE TRANSITION
Mr St John said the period was marked by significant challenges for both New Zealand and the sector, including inflationary and
cost of living pressures.
Energy transition challenges also emerged with low national hydro storage and gas supply constraints tightening New Zealand’s
increasingly intermittent renewable supply. This led to increased price volatility, with flow on impacts for a small number of
industrial consumers that did not have fixed price contracts.
“Collaboration from sector participants was key to helping manage this tight period, including demand response from industrials.
Discussions to explore market options for the Huntly Power Station will be one of the important measures we take into the future
to help improve security of supply.
“Mercury and others in the sector are firmly focussed on security of supply as the number one priority that will drive further
traction on the energy transition. In addition to actions the sector is taking, we believe it should be a key focus of regulatory
processes currently underway.”
DELIVERING MORE RENEWABLES
Mercury’s Chief Executive, Stew Hamilton, said Mercury had progressed work over the period to build more renewables.
“There is an enormous level of activity underway to support New Zealand’s electrification and further improve security of supply,
including construction of more renewables. I’m incredibly proud of the hard work our team are putting in, with three new builds
currently on the go,” he said.
This included the $287 million Kaiwaikawe Wind Farm (77 MW), confirmed over the period and with construction now underway.
Additionally, the $486 million Kaiwera Downs Wind Farm expansion (155 MW) is on track to reach full generation by the end of
the 2026 calendar year and the $267 million Ngā Tamariki Geothermal Station expansion and associated geothermal drilling (46
MW) is expected to deliver first generation late this calendar year.
Generation maintenance and enhancement also continued to deliver positive outcomes with the $90 million Karāpiro Hydro
Station upgrade (representing a 16.5 MW uplift) on track for completion in August 2025. As part of the $175 million geothermal
drilling campaign, two of the three planned wells were completed over the period and the third finished after period end.
ENABLING CUSTOMER BENEFITS THROUGH ELECTRIFICATION
A continued focus on supporting consumers to shift to and benefit from electrification shaped much of Mercury’s customer-
focussed activity over the period.
Following period end, New Zealand Aluminium Smelters became Mercury’s largest customer, with the commencement of a 20-
year contract (657 GWh pa) broadly equivalent to the annual output of the entire Kaiwera Downs Wind Farm. Mercury also
agreed a long-term contract with Fonterra to support the electrification of their Edgecumbe and Waitoa operations.
“In addition to large industrials, households will play an increasingly important role supporting the supply and demand balance in
New Zealand’s electricity system, and we’re encouraging customers to participate in the transition.”
Over the period, the second phase of a hot water control trial was completed and work is now underway to scale this offering.
Progress was also made on EV time-of-use charging trial.
Mercury’s customer care programme continued to be a critical input into energy equity, with strong inroads made. This included
continuing to provide hedges to social retailers at rates that enable them to deliver on their goal of eliminating energy hardship,
with 31 GWh volume sold to Nau Mai Rā and Toast Electric over the period.
“We also did not make any post-pay disconnections for people unable to pay due to hardship. The team are making great
progress, but there’s plenty more opportunities to build on this and we’ll keep working hard in this space,” said Mr Hamilton.
Looking forward, energy prices (gas and electricity) for consumers are expected to increase across the board. From April, the
overall electricity bill increase for Mercury residential customers will be approximately 9.7% on average. This primarily reflects
increases in lines and transmission charges due to rising costs and the level of investment in infrastructure required, in line with
the Commerce Commission’s price path reset for the next five-year period. It also reflects the rise in the cost of wholesale
electricity and other costs.
"While ensuring resilient, safe, and secure electricity is paramount, we recognise that the impacts will be felt to varying degrees
with our customers. We are committed to directing our support to those who need it most."
OTHER KEY OPERATIONAL ACTIVITIES
 Energy Transition Framework signed by all sector participants following period-end.

The Mercury Building, 33 Broadway, Newmarket 1023
PO Box 90399, Auckland 1142
 Steady energy customer numbers, including 200,000 customers with two or more products.
 Welcomed new Chief Executive, Stew Hamilton following a comprehensive search process.
INTERIM DIVIDEND
The Board has declared a fully imputed interim dividend of 9.6 cents per share, up 3% on the 1HY24 interim dividend. Full year
dividend guidance is unchanged at 24.0 cents per share, expected to be the 17th consecutive year of ordinary dividend growth.
Mercury’s Dividend Reinvestment Plan continues, with shareholders able to reinvest their dividends into Mercury shares at a 2%
discount.
GUIDANCE
FY25 EBITDAF guidance remains at $820 million. 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:
Paul Ruediger
Head of Business Performance & Investor
Relations
027 517 3470
investor@mercury.co.nz

For media inquiries, please contact:
Shannon Goldstone
Reputation and Social Impact Lead
027 210 5337
mercurycommunications@mercury.co.nz


ABOUT MERCURY NZ LIMITED
Mercury generates electricity from 100% renewable sources: hydro, geothermal and wind. We are also a retailer of
electricity, gas, broadband and mobile services. We’re listed on the New Zealand Stock Exchange and the
Australian Stock Exchange with the ticker symbol ‘MCY’, with foreign exempt listed status. The New Zealand
Government holds a legislated minimum 51% shareholding in the Company.
Visit us at: www.mercury.co.nz

---

Six Months Ended 31 December 2024
25 February 2025
STEWART HAMILTON
Chief Executive
WILLIAM MEEK
Chief Financial Officer
PAUL RUEDIGER
Head of Business Performance & Investor Relations

DISCLAIMER.
2
This presentation has been prepared by Mercury NZ Limited and its group of companies (“Company”) for informational purposes. This disclaimer applies to this document and
the verbal or written comments of any person presenting it.
Information in this presentation has been prepared by the Company with due care and attention. However, neither the Company nor any of its directors, employees,
shareholders nor any other person gives any warranties or representations (express or implied) as to the accuracy or completeness of this information. To the maximum extent
permitted by law, none of the Company, its directors, employees, shareholders or any other person shall have any liability whatsoever to any person for any loss (including,
without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current
expectations, estimates and assumptions and are subject to a number of risks, and uncertainties, including material adverse events, significant one-off expenses and other
unforeseeable circumstances, such as, without limitation, hydrological conditions. There is no assurance that results contemplated in any of these projections and forward-
looking statements will be realised, nor is there any assurance that the expectations, estimates and assumptions underpinning those projections or forward-looking statements
are reasonable. Actual results may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its
release or to provide you with further information about the Company.
A number of non-GAAP financial measures are used in this presentation. You should not consider any of these in isolation from, or as a substitute for, the information provided
in the unaudited consolidated financial statements for the six months ended 31 December 2024, which are available at www.mercury.co.nz/investors
.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. The presentation does
not constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security. Nothing in this
presentation constitutes legal, financial, tax or other advice.

FY25 EBITDAF guidance unchanged at $820m.
9.6cps interim dividend declared (3% higher than
HY24).
FY25 ordinary dividend guidance maintained at
24.0cps, the 17
th
year of consecutive dividend growth
MERCURY TAKES LEADING ROLE IN NEW ZEALAND’S ENERGY TRANSITION.
3
Business performance and major events
Robust performance in challenging conditions,
with careful portfolio management mitigating
the impact of drought.
For HY25, EBITDAF was $418m with generation
of 4.2TWh, -$16m and 0.3TWh lower than pcp
Increased customer connections to 888k, 33k
higher than pcp mainly from the cross-sell focus
increasing telco and mobile customers by 25k.
10-year contracts signed with Fonterra to support
the electrification of two sites
STRATEGIC
STRATEGICOPERATIONS
CUSTOMERS
FINANCIALS
Construction of Kaiwaikawe wind farm underway in
Northland.
This twelve turbine 77MW and 221GWh per annum
wind farm was committed in Dec-24, is expected to
cost $287m with first generation mid Cal-26
We are investing $1 billion into new renewables
across three projects generating 1,136GWh per
annum on average. Construction is on time and
on budget
OPERATIONS
Strong market responses from sector participants
helped maintain energy security.
Going forward, we support actions that enhance
governance and market arrangements to encourage
further investment in generation

KEY PROGRESS ON STRATEGIC OBJECTIVES DURING HY25.
4
On track with our three-year FY25 to FY27 objectives
Achieving what matters most through financial growth
•Embedding operating model tracking to deliver on synergies
•Increasing broadband and mobile connections
Delivering more reliable and renewable energy to power Aotearoa
•Resource consent application lodged for Whakamaru BESS
•Focus on improving geothermal resilience with FOF <2%
Accelerating the shift to a low carbon future
•Energy Transition Framework signed by sector participants
•Supporting Fonterra electrification at Edgecumbe and Waitoa
Creating success with others
•Over 6 months of zero bad credit disconnections as part of our
customer care programme
•Establishing new iwi relationships related to our pipeline
Innovating with technology
•Delivered the update to our core Financial technology platform
•Proof of concept for Autonomous Inspection underway
Performing with an adaptive and inclusive culture
•Launched new leader routines at sites as a step towards safety
citizenship
•Key collaboration and roles/responsibility measures on track
Our three-year objectives reflect our conviction that the electrification
opportunity in NZ is significant. We are focused on pursuing this by growing and
executing our renewable generation options and supporting NZ to electrify

0
0.5
1
1.5
FY18FY19FY20FY21FY22FY23FY24CAL-24
TRIFRHigh Severity Incidents
OUR PEOPLE.
5
Employee measures
•Our new Diversity, Equity, Inclusive and Belonging strategy
puts inclusivity, equity and belonging at the forefront,
making us stronger and better as a business to deliver
•Internal mobility decrease is relative to the reduction in
recruitment activity. Filling roles internally remains a
priority, providing growth opportunities for our people to
learn and develop their skills
Continued focus on Health, Safety and Wellbeing
Health, safety and wellbeing
•We are on track to transition to safety citizenship, the gold
standard in HSW culture by Dec-26. To support this, we
launched new routines (incl. short interval controls) that allow
us to utilise data for real time decision making. In addition,
we implemented critical risk and assurance programmes
•Zero fatality and high severity Health & Safety incidents
occurred in Cal-24. 12-month rolling TRIFR for Cal-24 at
0.64, impacted by four recordable incidents
1
TRIFR is the Total Recordable Injury Frequency Rate per 200,000 hours, includes employees and on-site contractors.
46
60
21
75
49
45
21
72
0
20
40
60
80
100
Women In
Leadership
Internal MobilityPeople Leaders
of Ethnicity
Mercury's Cultural
Index
%
FY24CAL-24Target

•Operating Cash Flow was lower primarily due to the impact
of $47 million in higher provisional tax payments
•Stay-In-Business capital expenditure higher predominantly
from geothermal drilling campaign and hydro rehabilitation
•Growth investment includes construction costs of OEC5 at
Ngā Tamariki geothermal station and associated
drilling, Kaiwera Downs stage 2 and Kaiwaikawe
MERCURY PURSUING GROWTH OVER HY25, DESPITE CHALLENGING CONDITIONS.
6
HY25 Performance reflects lower generation volume
HY25 Financial Performance
•EBITDAF was lower mainly from a 295GWh decrease in
renewable generation and higher operating expenditure.
Produced 4.2TWh of renewable generation from hydro
(44%), geothermal (30%) and wind (26%)
•NPAT was lower from EBITDAF (as above), and by adverse
unrealised movements in non-hedge accounted derivatives
mainly from the Manawa buy contract and Tiwai sell contract.
This was partially offset by a reduction in tax expense
605
207
418
(67)
227
73
139
134
618
191
434
174
283
60
70
129
Trading MarginOperating
Expenditure
EBITDAFNPATOperating Cash FlowStay-In-Business
Capital Expenditure
Growth InvestmentDeclared Ordinary
Interim Dividend
$m
HY2025
HY2024

•Trading: Realised $12m trading gains during the period,
this was -$2m lower than pcp
•Price: Favourable hedge accounting adjustments partially
offset by unfavourable LWAP/GWAP movements
•Operating expenses: see next slide
FINANCIAL – ROBUST PERFORMANCE IN CHALLENGING CONDITIONS.
7
EBITDAF bridge (HY24 to HY25)
Decrease Increase
HY25 Financial Performance
•Generation volume down 295GWh from lower hydro
(236GWh) lower geo (34GWh) and lower wind (25GWh)
•Sales yields: Mass market VWAP up $8/MWh, commercial
and industrial VWAP up $16/MWh
•Gas: elevated gas purchase prices due to gas supply
constraints and tight energy market conditions
434
418
27
20
3
(45)
(7)
(2)
(16)
HY24Generation
volume
C&I
sales
Mass market
sales
GasTradingPriceOperating
expenses
HY25
EBITDAF ($m)

FINANCIAL – INVESTING IN FUTURE GROWTH.
8
Operating Expenditure
•Employee costs increased from inflationary impacts
•Generation projects including turnaround costs of Ngā
Tamariki and Rotokawa
•Brand and Marketing increase primarily due to brand refresh
•Other costs include higher rates and timing of R&D credits
Continued investment in growth and existing assets
Movement in Net Debt
•46% of earnings reinvested in new and existing assets
•Robust performance enabled continued investment in
growth, with net debt lifting $140m from June 2024
•Investing cash flows mainly capital expenditure
(stay-in-business and growth capex)
191
207
4
6
4
2
HY24Employee
Costs
Generation
Projects
Brand and
Marketing
Other CostsHY25
Opex ($m)
418
(140)
(194)
(163)
(140)
(60)
(1)
EBITDAFInvestingDividends
paid
TaxInterestOther
capital
Increase in
net debt
$m

26
13
17
4
13
Geothermal
drilling
Hydro
rehabilitation
Other Generation
Capex
Taupo Control
Gates
Enterprise and
other
SIB Capex ($m)
FINANCIAL – CAPEX ENHANCING GEOTHERMAL RESILIENCE AND HYDRO CAPACITY.
9
Geothermal drilling lifted HY25 SIB capex
HY25 Stay-In-Business Capex
•Geothermal drilling programme ramped up further
•Karāpiro rehabilitation increased with the second of
three generator units
•Taupō Control Gate’s erosion repairs commenced in
Aug-24 involving works around the structure. Further
erosion repairs to be completed during 2H-FY25
HY25 Stay-In-Business Capex Breakdown
•Geothermal drilling relates to the completion of two
injection wells at Kawerau and Rotokawa
•Hydro rehabilitation spend is primarily driven by the
Karāpiro rehabilitation, a three-year project is expected to
end by Aug-25, increasing station capacity by 17MW (17%)
•Enterprise and other projects mainly related to
retail and generation technology projects
60
73
7
3
3
HY24Geothermal
drilling
Hydro
rehabilitation
Taupo Control
Gates
HY25
SIB Capex ($m)

0
100
200
300
400
500
600
GWh
LAKE TAUPŌ STORAGE (since 1 Jul 1999)
Min / MaxAvgLake Taupo MCLFY2024FY2025
CONTEXT - 1H TAUPŌ STORAGE MANAGED WHEN SPOT PRICES LOW IN Q2.
10
>50GWh above average
Month EndJulAugSepOctNovDecJanFeb
5
MarAprMayJun
Hydro Generation -
Delta to Average
2
(GWh)
-7-91-116-54-35-59-60-59
Waikato Inflows -
Delta to Average
3
(GWh)
-137-89-177-58-114-145-68
Taupō Storage –
Delta to Average
2
(GWh)
-190-148-33627536-37-48
Spot Price -
Ōtāhuhu ($/MWh)
$355$452$80$59$35$37$122$254
Futures Price (M-3
4
)
Ōtāhuhu ($/MWh)
$247$258$219$365$179$118$87$144$162$287
1
Maximum Control Level
2
Monthly average since July 1999
3
Monthly average since July 1927
4
Closing price 3 months prior to end of month
5
To 17 February 2025
>50GWh below average
Source: NZXHydro, WITS, ASX
Above $100/MWh
Above $200/MWh
•HY25 15
th
percentile Waikato catchment hydro inflows
•FY25 YTD 6
th
percentile Waikato catchment hydro inflows

-
1,000
2,000
3,000
4,000
5,000
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
GWh
National Hydro Daily Storage
CAL2024Average (since April 1999)
0
50
100
150
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
GWh
NZ Daily Average Generation by Type
SI HydroNI HydroGeothermalWind
ThermalCogenSolar
Thermal generation
supported winter 2024
0
10
20
30
40
50
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$/GJ
Gas Price (28-day rolling average)
CAL2023CAL2024
High gas prices returned to normal levels after
demand side deals & higher hydro generation
-40%
-30%
-20%
-10%
0%
10%
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Gas Production (growth vs pcp, 28-day rolling)
Significant gas production
decline throughout 2024
0
100
200
300
400
500
600
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$/MWh @ OTA2201
Electricity Spot Price (28-day rolling average)
CAL2023CAL2024
Market prices collapsed to lower
levels after market responses and
increased hydrology
CONTEXT - 2024 HIGH PRICES COLLAPSED AFTER MARKET RESPONSE AND HYDROLOGY.
11
Source: Transpower, BGIX, NZX, Mercury
-10%
-5%
0%
5%
10%
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Demand Growth vs PCP (28-day rolling)
TotalTiwai Only
Industrial Demand
Response
Near record low hydrology,
followed by high inflows

CONTEXT - FOCUS NOW SHIFTING TO ENERGY SECURITY FOR WINTER 2025 AND BEYOND.
12
Key messages
•Low hydro storage occurred Aug-24, after the higher risk
period mid Cal-24. Strong market responses from sector
participants helped maintain energy security, including –
•Industrial demand response, mainly NZAS
•Methanex sold ~6.5PJs of gas to generators
•Increased thermal coal, gas and diesel generation
•Inter-generator hedging arrangements
•ERCs for 2025 slightly better than 2024. National storage
lower than this time last year. Risk of energy shortages in
2025 is currently low
•Mercury’s response for winter 2025 includes increasing the
Huntly Firming Option volume and taking a structurally
longer net portfolio position
•Going forward, we support actions that enhance governance
and market arrangements to encourage further
investment in generation
Multiple responses to 2024 energy shortage
System Operator Electricity Risk Curves (ERCs) reflect the risk of
extended energy shortages. Specifically, ERCs show how actual hydro
storage is tracking relative to a calculated risk of energy shortage
based on forecast of non-hydro generation and demand
Actual Est.

CONTEXT - MARKET AND REGULATORY EVOLUTION TO SUPPORT THE TRANSITION.
13
Policy and regulatory settings need to support the pace
and scale of investment needed to deliver the energy
transition – to ensure best outcomes for New Zealand.
Key focus areas include:
Key government regulatory reviews are underway with the Ministerial
review of electricity market performance, expected June 2025 and the
Energy Competition Taskforce run by the Electricity Authority and
Commerce Commission. Key issues for both processes include:
•Enhancing focus on supporting security of supply
•Access to flexibility; and
•Institutional, governance and policy arrangements to support the
transition
Mercury is engaging constructively, contributing expertise and providing
expert input – including the
Sapere report on Key priorities for the New
Zealand electricity system
Inconsistent policy can drive excessive uncertainty. Strategic decisions
must be informed by broad industry expertise that supports a
coordinated market and policy platform. The Energy Transition Framework
serves as a mechanism to consolidate sector-wide knowledge on key
transition actions. It has been signed by all sector participants following
period-end.
Incorporating the climate benefits of electricity infrastructure that
facilitates the transition into all legislative levels would improve the
consistency of the consenting pathway
1.A laser focus on security of supply
2.Encouraging more flexibility and greater
transparency of risk management options
3.Improving governance and increasing
policy certainty
4.Ensuring a whole of system approach
5.Enabling consenting arrangements

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
Jan-24
Rolling 12-month market share by generation type
Cogeneration
Thermal
Wind
Geothermal
Hydro
0
50
100
150
200
250
300
350
400
0
10
20
30
40
50
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
Jan-24
Jan-25
Jan-26
Jan-27
Jan-28
$/MWh
TWh
Demand (excl. Tiwai) and Price
Demand (excl. Tiwai)ASX (as at 17 Feb, RHS)
Price @ OTA (12-mth rolling average, RHS)
CONTEXT - SUSTAINABILITY IMPROVING, ENERGY SECURITY EXPERIENCING CHALLENGES.
14
Key messages
•Environmental sustainability of NZ’s electricity market is
high. Renewable generation is trending towards 90%
mainly from increased geothermal and wind generation
•Affordability impacted by firm electricity prices from lower
thermal utilisation, higher thermal fuel costs, increased
demand and variable hydrological inflows
•NZ has a strong track record in energy security but is now
experiencing some challenges, as seen during winter 2024.
The sector is collectively working on solutions which will
also help with affordability, but there is no silver bullet
Renewable generation
trending towards 90%
Forecast demand
expected to increase,
forward prices remain firm




CONTEXT - LEANING INTO NEW ZEALAND’S DRY YEAR ENERGY SECURITY CHALLENGE.
15
Key messages
•Market participants delivered a range of initiatives in recent
years to improve energy security including new renewables,
maintaining thermal flex and securing demand flexibility
•A combination of levers are required to meet NZ’s dry year
deficit of ~2 to 4 TWh pa including a modest renewable
overbuild, demand response & contingent storage
•A range of options exist for primary and complementary
fuels through time. Thermal fuels provide flexibility in the
near term
•Coal is the only feasible primary fuel to 2027, with domestic
gas favourable from 2028 if availability challenges can be
addressed. This includes investment in storage, new local
supply and demand flex agreements
•LNG has a low likelihood of becoming economic due to
high upfront investment and higher ongoing generation
costs. Biomass is feasible over time if significant investment
is made in the local supply chain
Coal is the only feasible primary thermal fuel to 2027
Coal – Status Quo
Primary Fuel Scenarios
Domestic Gas - Addressed
LNG - Supplements
Biomass – Displacing Coal
25-27 28-30 31-35








STRATEGIC – $1B INVESTMENT AND OVER 1.1 TWH OF RENEWABLES UNDER CONSTRUCTION.
16
-
500
1,000
1,500
2,000
2,500
FY22FY23FY24FY25FY26FY27FY28
TUR | KWDOEC5KD2KWK
New and committed generation (GWh)
Key messages
•$1 billion and 1,136 GWh of renewables under construction
across 3 major generation projects - Ngā Tamariki OEC5
geothermal, Kaiwera Downs stage 2 and Kaiwaikawe
•Puketoi: Scheme optimisation progressing to improve
commercials and de-risk delivery across the steep and
challenging terrain. As a result of the optimisation,
additional landowner agreements and consent
amendments are required. FID anticipated in FY27
•Mahinerangi 2: Changes to turbine technology and
regulation require consent amendments for transmission,
tip height and renewal of construction consents. Field work
and engineering is underway. FID anticipated in early FY27.
•Waikokowai: Core landowner agreements signed.
Negotiating with additional landowners for an expanded
site and transmission. On site monitoring and consenting
studies to support a resource consent are underway. FID
anticipated in FY28
•All three wind farm projects are listed in the
Government’s Fast Track Approvals Bill

STRATEGIC - HIGH QUALITY GENERATION PIPELINE.
17
Kaiwaikawe wind farm progressed to construction phase
Key messages
•Construction of Ngā Tamariki OEC5 geothermal
expansion started in Apr-24. Construction of Kaiwera
Downs stage 2 wind farm expansion started in Jun-24.
Construction of Kaiwaikawe started in Jan-25
•Two new projects have been added to the pipeline in
FY25, a grid-scale battery at Whakamaru hydro station
and Waikokowai wind farm
•4 projects included in the Government’s one-stop-shop
Fast Track Approvals Bill. This included Puketoi,
Mahinerangi 2, Waikokowai and Tararua
Project
Capacity
(MW)
Generation
(GWh pa)
Type &
Location
StageProgress Comment
Ngā Tamariki
OEC5
46390 uplift
Geothermal
near Reporoa
ConstructionFirst generation late Cal-25
Kaiwera Downs II
155525
Wind farm near
Gore
Construction
First generation mid Cal-26
Full generation late Cal-26
Kaiwaikawe
77221
Wind farm near
Dargaville
Construction
First generation mid Cal-26
Full generation late Cal-26
Beyond FY25
Puketoi
2281,080
Wind farm near
Pahiatua
Feasibility & pre-
reconsenting
Scheme optimisation and
development work progressing
Mahinerangi 2
138470
Wind farm near
Dunedin
Feasibility & pre-
reconsenting
Development work progressing
Waikokowai
200-300600-900
Wind farm near
Huntly
Feasibility & pre-
consenting
Signed core wind farm
landowners and engaging other
landowners to secure expanded
site. Development work
progressing
Whakamaru BESS
stage 1
100-150
2hr
(300MWh)
BESS near
Taupō
Feasibility &
consenting
Preliminary design, consent
processing, stakeholder
engagement. FID anticipated in
FY26
Tararua
repowering
60MW
Uplift, to
221MW
270 uplift
Wind farm near
Palmerston
North
Feasibility & pre-
consenting
Developing the repowering
strategy. Project planned beyond
2030
Various other
prospects
1500~5,000Various
Prospecting,
feasibility
Includes onshore wind, solar,
geothermal & BESS

STRATEGIC – EXPANSION OF HIGH-QUALITY GEOTHERMAL GENERATION.
18
Key messages
•Ngā Tamariki power station consists of four Ormat Energy
Converter (OEC) units providing a net station capacity of
86MW. In Sep-23, the $220 million OEC5 unit was
committed and will increase site generation by 390GWh
and net output by 46MW. The two associated geothermal
development wells are expected to cost $47m
•Heat exchangers are in place, and both the generator and
70MVA transformer passed factory acceptance test in
Dec-24 and are on track for arrival in Feb-25 and Mar-25
respectively. Over 45k contractor hours worked safely over
241 days to end of Dec-24 without any Medical Treatment
Injury or Lost Time Injury
•Significant progress has been made in the construction
phase of the project with several major milestones
achieved. Overall, the project is tracking to budget and
planned first generation by late Cal-25
Ngā Tamariki OEC5 under construction
First generation expected late calendar 2025

STRATEGIC – LEADING THE WAY IN THE CONSTRUCTION OF WIND GENERATION.
19
Kaiwera Downs stage 2 wind farm under construction
Key messages
•Construction of Kaiwera Downs 2 wind farm expansion
started in Jun-24. Construction is proceeding as
scheduled despite a few wet months over spring
•Project is currently 8 months into civil work with ~10kms
of onsite roading, a number of hardstands in progress,
and first foundation pours planned in the next few
months
•~10kms of 33kv reticulation cable has been laid to date
and substation and transmission works are underway
•Long-lead equipment deliveries including wind turbine
components are aligned with the schedule
Kaiwera Downs stage 2 Construction

STRATEGIC – LEADING THE WAY IN THE CONSTRUCTION OF WIND GENERATION.
20
First wind farm to be constructed in Northland
Key messages
•Kaiwaikawe is a 12 turbine 77MW wind farm near
Dargaville, with annualised generation of 221GWh.
Construction costs of $287m brings Mercury’s total
commitment to new renewables to over $1b in two years
•Construction started in Jan-25 with first generation
expected in mid Cal-26 and full generation by the end
of Cal-26
•A multi-contract delivery approach, similar to the
Kaiwera Downs stage 1 and stage 2 wind farm projects
will be utilised to deliver the project. The wind farm will
feature 12 Vestas V162-6.4MW wind turbines, the first of
this model built in New Zealand
•The wind farm development is expected to involve up to
100 jobs during construction, providing employment
opportunities for the Northland region
•Negotiations nearing conclusion with Genesis
on offtake arrangements
Kaiwaikawe site photo

OPERATIONAL – GEOTHERMAL DRILLING ACCELERATED.
21
Geothermal drilling programme rephased
Key messages
•The 8 well geothermal drilling campaign continues to
sustain capacity of the Kawerau, Ngā Tamariki and
Rotokawa fields, offsetting the natural decline of well
performance
•We have taken advantage of a second domestic drilling
contractor to drill the two Ngā Tamariki OEC5
development wells during FY25
•Two of the three planned wells were completed over the
period and the third finished after period end
•To Fe b-25, we have completed 5 wells and invested $113
million in this drilling campaign. A further $62 million is
expected to complete the remaining three wells through
to FY26 (Total cost $175m), up $6m from previous
estimate. This total cost includes the two Ngā Tamariki
OEC5 development wells in growth capex ($47m)
Geothermal drilling rig at Rotokawa

OPERATIONAL – REHABILITATION PROGRAMME FOR HYDRO ASSETS.
22
Key messages
•The Karāpiro project remains on schedule with the
second unit completed in Sep-24
•The third and final unit was removed from service in
Oct-24 and due to be returned back into service in
Aug-25
•The two completed units are performing per design
with 5MW increased output and improved overall
efficiency from both units
•The next station rehab program for Maraetai,
Atiamuri, and Ohakuri is in progress and awarding of
key contracts planned during Cal-25
Karāpiro station capacity already increased by 10MW
Karāpiro head gate installation

CUSTOMER – FOCUS ON TELCO CROSS-SELL OPPORTUNITIES POST INTEGRATION.
23
Total of 888k connections across all products
Key messages
•Our scaled retail business increased to 888k customer
connections, 33k higher than PCP mainly from the cross-
sell focus and compelling customer offers, increasing
Telco and Mobile customers by 25k. Electricity and gas
connections increased by 8k
•Mercury has agreed a long-term contract with Fonterra to
support the electrification of their Edgecumbe and Waitoa
operations. The supply agreements extend for ten years
for each site, with Waitoa commencing from Aug-25 and
Edgecumbe from Jul-26. This represents total demand of
~260 GWh per year, weighted towards summer quarters
•Elevated forward curve pricing has seen strong contract
renewal prices through FY25. C&I yields (including
physical sales and end user CfDs) were $16/MWh higher
relative to PCP, whilst Mass Market yields were $8/MWh
higher
574
579
585
590
584
579
578
576
579
582
96
98
100
102
102
102
103
104
105
107
128
161
162
168
172
174
177
184
193
199
0
200
400
600
800
1,000
Q1 FY23Q2 FY23Q3 FY23Q4 FY23Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25
Total Connections ('000)
ElectricityGasTelco
1325
962
901
1164
1370
992
923
1175
1325
970
911
929
839
913
931
819
791
813
883
747
0
1,000
2,000
3,000
Q1 FY23Q2 FY23Q3 FY23Q4 FY23Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25
GWh
Mass Market (includes Trustpower retail)C&I (includes physical and financial sales)

CUSTOMER – THE JOURNEY TO BECOMING A LEADING MULTI-PRODUCT RETAILER.
24
Mercury named 2024 energy retailer of the year
Key messages
•Mercury was named Energy Retailer of the Year at the
2024 New Zealand Energy Excellence Awards. This
award recognises the significant amount of activity
centered around innovation and giving customers access
to a broader range of solutions, benefits, and services
•Mercury’s Retail Integration also won the Business
Transformation through Digital & IT award at the 2024
New Zealand CIO Summit & Awards. This award
celebrates the mahi to bring the Mercury and Trustpower
businesses together as part of Retail Integration. The
integration project was completed within just 18 months
•Over 6 months of zero bad credit disconnections as part
of our customer care programme
Mercury staff at the NZ Excellence Awards

CUSTOMER ELECTRICITY PRICING TRACKING BACK TO LONG TERM INFLATION.
25
0
5
10
15
20
25
30
35
40
45
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Nominal c/kWh
Years ending 30 June
RESIDENTIAL PRICE
Lines componentEnergy and other component
TotalLines (CPI adjusted)
Energy and other (CPI adjusted)Total (CPI adjusted)
Residential electricity has tracked below inflation
Key messages
•Total residential electricity price has tracked at lower than
inflation. From Apr-25 the revenueTranspower and most
local lines companies canearn over the next five-year cycle
has been reset by the Commerce Commission. The
increased charges over this period reflectinflation,
increased interest rates, and the need for significant
investment in maintaining the network
•From April, the overall electricity bill increase for Mercury
residential customers will be approximately 9.7% on
average. This primarily reflects increases in lines and
transmission charges due to rising costs and the level of
investment in infrastructure required, in line with the
Commerce Commission’s price path reset for the next five-
year period. It also reflects the rise in the cost of wholesale
electricity and other costs
•We continue to target our support to those who need it
most, while also working to provide consumers greater
choice and control over cost

0
100
200
300
400
500
600
20252026202720282029203020312052205320542055
$m
Financial Year
Commercial PaperUndrawn Bank FacilitiesUndrawn Rolling Bank FacilitiesDrawn Bank FacilitiesUS Private Placement
AUD Green BondsCapital BondsDomestic Wholesale Green BondsRetail Green Bonds
1
Requires 18 months notice of termination from lender
26
Debt maturities as at 31 December 2024
•Diversified funding sources: commercial paper, bank facilities, domestic wholesale bonds, retail bonds, AUD wholesale
bonds, USPP and capital bonds
•$350m Capital Bond (MCY070) issued in Jul-24 to refinance the $300m MCY020 redemption
•New debt capital markets transaction under consideration to fund renewable development and refinancing
1
FINANCIAL – DIVERSIFIED FUNDING PROFILE.

0
1
2
3
FY20FY21FY22FY23FY24HY25
Net Debt ($b) and Debt/EBITDA
Net Debt ($b)Debt/EBITDA
FINANCIAL – STRONG BALANCE SHEET SUPPORTS GROWTH.
27
Key messages
•Mercury targets Debt/EBITDA between 2x-3x after
adjusting for S&P Global treatment, consistent with our
BBB+ rating
•Debt/EBITDA
1
at ~2.3x for HY25, well positioned to
accommodate recent project commitments and growth
•S&P Global re-affirmed Mercury’s credit rating of
BBB+/stable in Dec-24
Forecast Debt/EBITDA provides platform for growth
1
Adjusted for actual / expected S&P Global treatment, based on FY25 EBITDA guidance
1

•Hydro generation 250GWh lower at 3,550GWh based on 50
th
percentile forecast
(mean hydro generation is 4,078GWh per annum)
•Geothermal output 47GWh down due to extended outages Rotokawa and Ngā Tamariki
(now resolved) and wind generation 92GWh lower
•Portfolio: improved trading gains (+$25m) and portfolio management (net position)
•Gas: Tariff increases and lower wholesale gas purchase costs
•Yield growth in C&I and Mass Market customers
•Opex: includes the addition of a $9m well repair at Kawerau
FY25 EBITDAF guidance unchanged at $820m on 3,550GWh of hydro generation subject to hydrological volatility, wholesale
market conditions and any material adverse events, significant one-off expenses or other unforeseeable circumstances
•
Lower forecast FY25 generation across the fleet ($101m) plus elevated OPEX ($25m) offset by $126m improvement in
portfolio (including trading), gas & yield growth
•
FY25 EBITDAF normalised at $900m on average total generation
•
FY25 ordinary dividend guidance unchanged at 24.0cps (up 3% on FY24)
•
FY25 stay-in-business capital expenditure guidance of $150m reflects the geothermal drilling and hydro rehab projects
28
Decrease Increase
FINANCIAL – FY25 GUIDANCE.
820820
900
85
14
27
-
(71)
(30)
(25)
Initial
guidance
Hydro GenerationWind and Geo
Generation
PortfolioGasYield GrowthOperating expensesFY25
Guidance
FY25
Normalised
EBITDAF ($m)

29
Q&A
Maraetai 1 and 2

---

INTERIM
REPORT

03 CHAIR & CHIEF EXECUTIVE UPDATE
10 OUR FINANCIALS
11 INDEPENDENT AUDITOR'S REVIEW REPORT
12 FINANCIAL STATEMENTS
27 SHAREHOLDER INFORMATION
27 DIRECTORY
CONTENTS
Ngā Tamariki Geothermal Station
2

U
P
P
D
D
ATE
CHAIR & CHIEF EXECUTIVESNAPSHOT
Kia ora and welcome to
Mercury’s six-month update
to 31 December 2024.
Over the period we maintained our focus on delivering
sustainable growth by investing in outcomes that help
address the energy trilemma and build Aotearoa
New Zealand’s future prosperity.
This included our commitment to investing over
$1 billion to new renewables in the past two years.
Mercury now has three renewable projects under
construction, which combined will add an additional
1,136 GWh per year for New Zealand, enough to
power up to 142,000 houses.
This commitment comes at a critical time
in New Zealand’s low carbon energy transition.
SCOTT ST JOHN, CHAIR & STEW HAMILTON, CHIEF EXECUTIVE
COLLABORATING WITH OTHERS
• Energy Transition Framework signed.
• Exploring Huntly Power Station options
to enhance energy security.
STEADY PERFORMANCE IN CHALLENGING
CONDITIONS
• EBITDAF of $418 million largely reflects lower
generation and increased operating expenses.
• A loss after tax of $67 million largely due to adverse
non-cash movements of non-hedge accounted
electricity derivatives.
• FY25 EBITDAF guidance remains at $820 million.
$1 BILLION COMMITTED TO NEW RENEWABLES
IN TWO YEARS
• Kaiwaikawe Wind Farm confirmed, construction
underway.
• Kaiwera Downs Wind Farm expansion tracking well.
• Ngā Tamariki Geothermal Station expansion tracking well.
• Significant maintenance and enhancement
activity underway.
ENABLED CUSTOMER BENEFITS THROUGH
ELECTRIFICATION
• Supported industrial electrification including major
contracts with New Zealand Aluminium Smelters
& Fonterra.
• Residential demand management trials completed.
• Customer care prioritised, zero disconnections
due to hardship.
• Mass market customer numbers steady, positive
growth of multi-product segment.
Scott St John, Chair.
Stew Hamilton, Chief Executive.
FOR SIX MONTHS TO 31 DECEMBER 2024
o
TOTAL
GENERATION
4
,
191GWh
o
RENEWABLES
UNDER CONSTRUCTION
1
,
136GWh
o
o
TOTAL CUSTOMER
CONNECTIONS
EBITDAF
888K
$418M
3

The past six months have presented
multi-faceted challenges for the
sector and New Zealand as a whole.
Inflationary pressures, elevated interest rates
and higher unemployment all contributed
to a subdued economic outlook.
Amidst this backdrop, challenges related
to the transition also came to the fore.
Low national hydro storage and gas
supply constraints tightened New Zealand's
increasingly intermittent renewable electricity
supply and caused significant volatility.
A short period of record high spot electricity
prices sent a strong price signal, before
dropping to near record lows.
Action from sector participants, including
demand response from industrials (primarily
New Zealand Aluminium Smelters Ltd
reducing electricity consumption and
Methanex freeing up gas), helped maintain
PURSUING GROWTH IN A
ENVIRONMENT
supply over the period. However, this has
brought sharply into focus the key challenge
of managing security of supply in an
increasingly renewable energy system.
As a result, significant activity is now
underway with a strong lens on competition
as a means to improve affordability and
security of supply. Mercury believes security
of supply is the single biggest priority (which
will in turn help address affordability). We
support actions that enhance governance
and market arrangements to encourage
further investment in generation. It is clear
there is no single solution, and collaboration
across the sector is key.
Meanwhile, Resource Management reform
was another key activity occurring over
the period with potential to shape the sector
in coming years. If executed well, it will be
a fundamental enabler of our sector’s ability
to build more renewable infrastructure.
Looking ahead, the transition will be gradual,
and we will continue to encounter challenges
including those recently experienced.
We are mindful of concerns as we go
through this period and are keenly aware
of the importance of bringing New Zealanders
with us on this journey.
Despite near-term challenges, the long-
term outlook for customers, Mercury and
New Zealand is positive. Ongoing demand
for renewable electricity in New Zealand
is expected to grow, consistent with
international trends towards electrification.
There are broad gains to be made through
the electrification of our economy and
Mercury remains well positioned to both
deliver on and benefit from these.
Aratiatia Hydro Station
4

5
Financial performance was robust
despite challenging conditions,
with careful portfolio management
helping to mitigate the full impact
of these conditions.
Despite low hydro inflows over the last
six months in the North Island, Lake Taupō
was above normal levels by the end of the
year due to a focus on rebuilding storage
ahead of winter 2025.
Mercury reported EBITDAF
1
over the
period of $418 million ($16 million down
on the prior comparable period) largely
reflecting lower generation and increased
operating expenses, offset by increased
sales yields.
Inflows for the period at 15th percentile
delivered hydro generation of 1,836 GWh
(down from 2,072 GWh on the prior
comparable period). Wind generation
of 1,083 GWh (down 26 GWh on the prior
comparable period) reflected lower than
average wind. Planned maintenance
outages at Ngā Awa Pūrua and Rotokawa
stations have resulted in 33 GWh lower
geothermal generation than prior
comparable period at 1,272 GWh.
C&I yields were up 13% due to contract
repricing at sustained higher electricity
forward curve.
Net profit after tax was a loss of $67
million for the period ($241 million lower
than the prior comparable period), largely
due to adverse non-cash movements of
non-hedge accounted electricity derivatives.
Operational expenditure tracked up
to $207 million ($16 million up on the prior
comparable period) reflecting continued
investment in generation maintenance.
Meanwhile, stay-in-business capital
expenditure for the period was $73 million
(up $13 million on the prior comparable
period) and growth capital expenditure
was $139 million (up $69 million on the
prior comparable period). This largely related
to construction costs for new generation
projects (fifth unit at Ngā Tamariki
Geothermal Station, Kaiwera Downs
stage 2 and Kaiwaikawe wind farms).
Net debt was $2,093 million, up $140 million
on the prior comparable period reflecting
increased debt funding capital projects.
FY25 EBITDAF guidance remains
at $820 million.
Guidance may change and remains subject
to any material events, significant one-off
expenses or other unforeseen circumstances
including changes to hydrological conditions.
INTERIM DIVIDEND
The Board has declared a fully imputed
interim dividend of 9.6 cents per share,
up 3% on the 1HY24 interim dividend.
Full year dividend guidance is unchanged
at 24.0 cents per share, expected to be the
17th consecutive year of ordinary dividend
growth. Our Dividend Reinvestment
Plan continues, with shareholders able
to reinvest their dividends into Mercury
shares at a 2% discount.
1 EBITDAF: Earnings before net interest expense, tax expense, depreciation and amortisation,
and unrealised change in fair value of financial instruments and carbon.
5

CONSTRUCTION UNDERWAY
KAIWAIKAWE WIND FARM
$287M
(77MW, 221 GWh PA)
CONSTRUCTION UNDERWAY
NGĀ TAMARIKI GEOTHERMAL
STATION EXPANSION
AND ASSOCIATED DRILLING
$267M
(46MW, 390 GWh PA)
CONSTRUCTION UNDERWAY
KAIWERA DOWNS
WIND FARM EXPANSION
$486M
(155MW, 525 GWh PA)
Over the period we were pleased to
confirm our decision to build the $287
million Kaiwaikawe Wind Farm (77 MW,
221 GWh per year) in Northland with
construction now underway.
Despite a wet spring, construction of
the $486 million Kaiwera Downs Wind
Farm expansion (155 MW, 525 GWh
per year) remains on track to reach
full generation by the end of the 2026
calendar year.
Progress continued on the $267 million
Ngā Tamariki Geothermal Station expansion
and associated geothermal drilling (46 MW,
390 GWh per year). Progress is tracking
well, with first generation on track for late
this calendar year.
Our focus on generation maintenance
and enhancement also continued to
net positive outcomes over the period.
Our multi-year hydro refurbishment
programme is progressing well, with
the $90 million Karāpiro Hydro Station
upgrade on track for completion
in August 2025.
This represents a 16.5 MW uplift to 112.5
MW for this station. Maraetai, Ātiamuri
and Ōhakuri hydro stations are next
in line, with contracts for their upgrades
expected to be signed later in 2025.
Meanwhile our $175 million geothermal
drilling campaign continues to progress
well, with two of the three wells planned
this financial year successfully completed
over the period, and the third completed
after period end.
6

We continued to focus on
supporting consumers to shift
to and benefit from electrification.
New Zealand Aluminium Smelters
is now our largest customer, with
our 20-year contract commencing
on 1 January 2025. This long-term
agreement (657 GWh per year) is broadly
equivalent to the annual output of the
entire Kaiwera Downs Wind Farm, a
material contribution to the aggregate
5,000 GWh per year of electricity
needs for the smelter to produce
low-carbon aluminium.
We are also pleased to have agreed
a long-term contract with Fonterra
to support the electrification of their
Edgecumbe and Waitoa operations.
In addition to large industrials, households
will play an increasingly important role
supporting the supply and demand
balance in New Zealand’s electricity system.
Over the period we worked towards enabling
more residential consumers to participate
in demand management. We successfully
completed the second phase of our hot
water control trial and are now working with
metering and network companies to scale
this offering. Progress was also made
on our EV time-of-use charging trial, with
valuable learnings captured to feed into
the further development of any EV offerings.
Looking forward, encouraging consumers
to participate in the transition through
actions like demand management
will be key. Shifting to pricing that better
reflects underlying costs of electricity at
particular times of the day is a medium-
term focus for Mercury as we seek
to empower and educate customers
on shifting load and taking greater
control of their electricity costs.
Meanwhile, our customer care programme
continued to be a critical input into
energy equity for Mercury customers.
The foundations of this programme
are based on close collaboration with
other providers, direct support to
customers and continually building
our understanding of hardship.
Teams across Mercury have worked
together to make significant inroads
in this space, delivering tangible
benefits to customers in hardship.
We are very pleased to report that
there were no post-pay disconnections
for non-payment due to hardship over
the period, a significant benchmark
of success for our customer care
programme. This is a real testament
to the hard work of our people, as well
as the collaborative efforts taken with
community which are delivering more
sustainable outcomes.
We also provided hedges to social
retailers at a rate that broadens out
our care of consumers in hardship beyond
our own customer base. Over the period
we sold 31 GWh volume to Nau Mai
Rā and Toast Electric, bringing total
volume sold to 107 GWh since FY22,
when our first contract with Nau Mai Rā
commenced. Those transactions enable
these two retailers to work towards their
goal of eliminating energy hardship,
an ambition we share. Combined, they
are supporting over 9,000 customers.
Our overall mass market energy customer
numbers remained steady over the period.
We continued to focus on building and
delivering value to our customers, particularly
through the bundling of products.
7

Our customer base with two or more
products increased by about 12,000
over the period to more than 200,000
customers, bringing the proportion
of our multi-product customer base
to 37.8%. Our broadband market share
surpassed 10% of the fixed line market
in New Zealand and we now have over
30,000 mobile customers.
Looking forward, energy prices (gas and
electricity) for consumers are expected
to increase across the board.
This April, Mercury's overall electricity
bill increase for residential customers
will be approximately 9.7% on average.
This primarily reflects increases in lines and
transmission charges due to rising costs
and the level of investment in infrastructure
required, in line with the Commerce
Commission’s price path reset for the next
five-year period. It also reflects the rise in the
cost of wholesale electricity and other costs.
This is an important contribution
to a resilient, safe and secure supply
of electricity, however the flow on
impacts for consumers and business
must be acknowledged, particularly
in the current climate. We will continue
to target our support to those who
need it most, while also working to
provide greater choice and control
over cost to consumers, like demand
response programmes.
CUSTOMERS WITH
2+ PRODUCTS
200K
+
o
BROADBAND
MARKET SHARE
10%
+
o
MOBILE
CUSTOMERS
30K
+
o
8

Much of our activity continued
to centre around collaboration
and co-operation with participants
across the sector on fundamental
transition issues including security
of supply.
Good progress was made on the Energy
Transition Framework, which was signed
by all sector participants following
period-end. Participants span transmission,
lines, generation, retail and industry
organisations and the framework will
be launched to the public later in 2025.
Six themes to be prioritised by the
framework have been identified and
agreed, which largely focus on the equity
and security arms of the trilemma.
This milestone is significant and
represents an unprecedented level of
collaboration for the sector, reflecting
the vital need for collective action for
the transition to succeed.
We have also been working with Genesis
and others to explore market options
for the Huntly Power Station to help
improve national security of supply.
The commercial structure is being
worked through, including key terms
such as pricing and cost.
AN OPTIMISTIC OUTLOOK
This update marks my first as Chief Executive for Mercury
and I am proud of what we have collectively achieved over
the period, and more broadly. We are on a positive pathway
of growth, and I am confident we’ll continue to deliver value
for our owners and our country.
Mercury has been part of the New Zealand landscape since
the electricity sector’s inception and is full of hardworking
New Zealanders who are deeply invested in the future
prosperity of this country.
Staying on the path of prosperity will require individuals,
companies, markets and society at large to evolve constantly.
We’re keen to show up to these conversations as a constructive,
pragmatic voice.
In order to do this, we will need to continue working to
understand the multiple perspectives and experiences
that shape change. My own earlier experience as the
Chief Executive of New Zealand’s largest buyer of electricity
(New Zealand Aluminium Smelters) remains an important lens
for me now, as Chief Executive of one of New Zealand’s largest
generators and retailers of electricity.
I believe the best solutions will come from the wisdom
of many, and my mission is to harness this diversity of thought
and bring forward the next generation of leaders, and the
unique insights and perspectives that will help drive our sector
and New Zealand forward.
I am optimistic that New Zealand is on track for a bright future,
and we look forward to continuing to be a part of this journey,
just as we have been an important part of the country’s history.
Ngā mihi nui ki a koutou katoa.
SCOTT ST JOHN,
CHAIR
STEW HAMILTON,
CHIEF EXECUTIVE
Aratiatia Rapids
In addition to collaborating with the sector,
we worked to build on the collective
strength of our people. We launched
our new Diversity, Equity, Inclusion and
Belonging strategy over the period, which
places inclusivity, equity, and belonging
at the forefront, making us stronger and
better as a business. Filling roles internally
remains a key priority, providing growth
opportunities for our people to learn and
develop their skills.
We also continued to prioritise health,
safety and wellbeing, with our aspiration
to reach safety citizenship, the gold
standard of safety culture, by December
2026. Our focus on rituals and routines,
critical risks, safety data and safety
leadership is key to achieving this goal.
There have been four recordable incidents
for the half year (excluding offsite
injuries), while the 12-month rolling Total
Recordable Injury Frequency Rate (TRIFR)
for the 2024 calendar year was 0.64, up
on the previous year due to an increase
in recordable incidents. We have reflected
on these incidents and have brought
learnings from these into improving
our health and safety processes.
9

CONTENTS
GROUP FINANCIAL STATEMENTS
12 CONSOLIDATED INCOME STATEMENT
12 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
13 CONSOLIDATED BALANCE SHEET
14 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
14 CONSOLIDATED CASH FLOW STATEMENT
NOTES TO THE FINANCIAL STATEMENTS
15 GENERAL INFORMATION
A. FINANCIAL PERFORMANCE
15 A1. REVENUE
16 A2. SEGMENT REPORTING
B. OPERATING ASSETS
18 B1. PROPERTY, PLANT AND EQUIPMENT
18 B2. INTANGIBLE ASSETS
C. FUNDING
19 C1. SHARE CAPITAL AND DISTRIBUTIONS
19 C2. BORROWINGS
20 C3. NET INTEREST EXPENSE
20 C4. COMMITMENTS AND CONTINGENCIES
D. GROUP STRUCTURE
21 D1. ASSOCIATES AND JOINT ARRANGEMENTS
21 D2. RELATED PARTY TRANSACTIONS
E. RISK
23 E1. DERIVATIVE FINANCIAL INSTRUMENTS
F. O T H E R
26 F1. SUBSEQUENT EVENTS AND OTHER MATTERS
OUR FINANCIALS
Turitea Wind Farm
10

Directors’ responsibilities for the interim
financial statements
The Directors are responsible, on behalf
of the Group, for the preparation and fair
presentation of these interim financial
statements in accordance with NZ IAS 34
and IAS 34 and for such internal control as the
Directors determine is necessary to enable the
preparation and fair presentation of the interim
financial statements that are free from material
misstatement, whether due to fraud or error.
The Directors are also responsible for the
publication of the interim financial statements,
whether in printed or electronic form.
Auditor’s responsibilities for the review
of the interim financial statements
Our responsibility is to express a conclusion on
the interim financial statements based on our
review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our
attention that causes us to believe that the
interim financial statements, taken as a whole,
are not prepared, in all material respects, in
accordance with NZ IAS 34 and IAS 34.
A review of the interim financial statements
in accordance with NZ SRE 2410 (Revised)
is a limited assurance engagement. We
perform procedures, primarily consisting
To the shareholders of Mercury NZ Limited
The Auditor-General is the auditor of Mercury
NZ Limited and its subsidiaries (the Group).
The Auditor-General has appointed me, Emma
Winsloe, using the staff and resources of Ernst &
Young, to carry out the review of the consolidated
condensed interim financial statements (interim
financial statements) of the Group on his behalf.
Conclusion
We have reviewed the interim financial
statements of the Group on pages 12 to 26,
which comprise the consolidated balance sheet
as at 31 December 2024, and the consolidated
income statement, consolidated statement of
comprehensive income, consolidated statement
of changes in equity and consolidated cash flow
statement for the six months ended on that
date, and explanatory notes.
Based on our review, nothing has come to our
attention that causes us to believe that the
interim financial statements of the Group do
not present fairly, in all material respects, the
financial position of the Group as at 31 December
2024, and its 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
(NZ IAS 34) and International
Accounting Standard 34:
Interim Financial
Reporting
(IAS 34).
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.
In addition to the interim financial statements
review we carry out engagements in the areas
of the financial statements audit, agreed-
upon procedures and other assurance, which
are compatible with those independence
requirements. Other than the review and
these engagements, we have no relationship
with or interests in the Group.
Emma Winsloe
Ernst & Young
On behalf of the Auditor-General
Auckland, New Zealand
25 February 2025
Independent auditor’s
review report
of making enquiries, primarily of persons
responsible for financial and accounting
matters, and applying analytical and other
review procedures. The procedures performed
in a review are substantially less than those
performed in an audit conducted in accordance
with International Standards on Auditing
(New Zealand) and consequently does 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
interim financial statements.
A member firm of Ersnt & Young Global Limited
11

FINANCIAL STATEMENTS.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME.
For the six months ended 31 December 2024
Note
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Profit/(loss) for the period attributable to owners of the parent(67)174290
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Change in asset revaluation reserve--138
Change in cash flow hedge reserve transferred to balance sheet-1(2)
Share of movements in associates' and joint ventures' reservesD15(2)(6)
Tax ef fe c t1-(37)
Items that may be reclassified subsequently to profit or loss
Change in cash flow hedge reserve86(108)(180)
Tax ef fe c t(21)2950
Other comprehensive income/(loss) for the period, net of taxation71(81)(37)
Total comprehensive income/(loss) for the period attributable to owners of the parent
493253
The accompanying notes form an integral part of these Group financial statements.
CONSOLIDATED INCOME STATEMENT.
For the six months ended 31 December 2024
Note
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Revenue
A21,7551,6053,424
Expenses
A2(1,458)(1,214)(2,704)
Depreciation and amortisation
B1, B2(176)(178)(350)
Change in the fair value of financial instruments
E1(173)65172
Change in the fair value of carbon units held for trading
17328
Share of profit/(loss) from associates and joint ventures
D14(2)(1)
Interest incomeA2, C3
236
Interest expense
A2, C3(67)(66)(140)
Profit/(loss) before tax
(96)245415
Tax (expense)/benefit29
(71)(125)
Profit/(loss) for the period attributable to owners of the parent(67)
174290
Basic and diluted earnings/(loss) per share (cents)
C1
(4.80)
12.5320.85
The accompanying notes form an integral part of these Group financial statements.
12

SCOTT ST JOHN,
CHAIR OF THE BOARD OF DIRECTORS
JAMES MILLER,
CHAIR OF THE AUDIT AND
FINANCIAL RISK COMMITTEE
The accompanying notes form an integral part of these Group financial statements.
CONSOLIDATED BALANCE SHEET.
As at 31 December 2024
Note
Unaudited
31 Dec 2024
$M
Unaudited
31 Dec 2023
$M
Audited
30 Jun 2024
$M
SHAREHOLDERS' EQUITY
Issued capital378378378
Treasury sharesC1(1)(23)(15)
Reserves4,3134,4454,486
Total shareholders' equity4,6904,8004,849

ASSETS
Current assets
Cash998244
Trade and other receivables440505638
Contract assets and costs363335
Inventories134145120
Derivative financial instrumentsE1181263313
Taxation receivable3--
Total current assets8931,0281,150

Non-current assets
Property, plant and equipmentB18,2678,0808,222
Intangible assetsB2127127132
Investment in and advances to associates and joint venturesD1757469
Advances to joint operationsD2434
Contract assets and costs231715
Derivative financial instrumentsE1133189203
Total non-current assets8,6298,4908,645
Total assets9,5229,5189,795
Note
Unaudited
31 Dec 2024
$M
Unaudited
31 Dec 2023
$M
Audited
30 Jun 2024
$M

LIABILITIES
Current liabilities
Payables and accruals295367462
Provisions1-3
BorrowingsC2610453383
Derivative financial instrumentsE1188264371
Taxation payable-2973
Total current liabilities1,0941,1131,292
Non-current liabilities
Provisions858682
Derivative financial instrumentsE1418230296
BorrowingsC21,5901,5671,558
Deferred tax1,6451,7221,7 18
Total non-current liabilities3,7383,6053,654
Total liabilities4,8324,7184,946
Net assets4,6904,8004,849
For, and on behalf of, the Board of Directors, who authorised the issue of these Group financial statements on 25 February 2025.
13

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.
For the six months ended 31 December 2024
Note
Issued
capital
$M
Retained
earnings
$M
Asset
revaluation
reserve
$M
Cash flow
hedge
reserve
$M
Other
reserves
$M
Tot al
equity
$M
Balance as at 1 July 20233783644,235(80)(34)4,863
Movement in cash flow hedge reserve, net of taxation---(79)-(79)
Share of movements in associates' and joint
ventures' reserves
D1---(2)-(2)
Other comprehensive income/(loss)---(81)-(81)
Net profit/(loss) for the period-174---174
Total comprehensive income for the period-174-(81)-93
DividendC1-(182)---(182)
Issue of treasury shares for dividend reinvestment programC1-15--1126
Balance as at 31 December 20233783714,235(161)(23)4,800
Balance as at 1 January 20243783714,235(161)(23)4,800
Movement in asset revaluation reserve, net of taxation--99--99
Movement in cash flow hedge reserve, net of taxation---(51)-(51)
Share of movements in associates' and joint
ventures' reserves
D1---(4)-(4)
Other comprehensive income/(loss)--99(55)-44
Net profit/(loss) for the period-116---116
Total comprehensive income/(loss) for the period-11699(55)-160
DividendC1-(129)---(129)
Issue of treasury shares for dividend reinvestment programC1-11--718
Balance as at 30 June 20243783694,334(216)(16)4,849

Balance as at 1 July 20243783694,334(216)(16)4,849
Movement in cash flow hedge reserve, net of taxation---66-66
Share of movements in associates' and joint
ventures' reserves
D1---5-5
Other comprehensive income/(loss)---71-71
Net profit/(loss) for the period-(67)---(67)
Total comprehensive income/(loss) for the period-(67)-71-4
DividendC1-(195)---(195)
Issue of treasury shares for dividend reinvestment programC1-18--1432
Balance as at 31 December 20243781254,334(145)(2)4,690
The 'Other reserves' category includes treasury shares, the foreign currency translation reserve and the share based payment reserve.
The accompanying notes form an integral part of these Group financial statements.
CONSOLIDATED CASH FLOW STATEMENT.
For the six months ended 31 December 2024
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers2,1431,5323,116
Payments to suppliers and related parties(1,628)(1,011)(2,094)
Payments to employees(87)(85)(165)
Interest received236
Interest paid(62)(63)(130)
Taxe s pa i d(140)(93)(121)
Net cash provided by operating activities227283612

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for acquisition of property, plant and equipment(202)(132)(295)
Payments for acquisition of intangibles(13)(14)(39)
Distributions received from/(advances paid to) associates
and joint ventures
324
Net (lodgements)/return of prudential deposits17(37)(36)
Net cash (used)/received in investing activities(194)(181)(366)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings853430360
Repayment of borrowings(660)(359)(356)
Principal repayment of lease liabilities(8)(9)(13)
Dividends paid(163)(157)(268)
Net cash (used)/received in financing activities22(95)(277)
Net increase/(decrease) in cash held557(31)
Cash at the beginning of the period447575
Cash at the end of the period998244
Cash balance comprises:
Cash held at bank at the end of the period998244
The accompanying notes form an integral part of these Group financial statements.
14

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
GENERAL INFORMATION
General information
The Group Consolidated Condensed Interim Financial
Statements (“Group Financial Statements”) are for Mercury
NZ Limited (“the Company”), as the parent, and its
subsidiaries, investments in associates and interests
in joint arrangements (“the Group”).
The Company is incorporated in New Zealand and registered
under the Companies Act 1993. It is listed on the NZX Main
Board and on the ASX, with foreign exempt listed status.
It also has bonds quoted on the NZX debt market. Mercury
NZ Limited is an FMC reporting entity under the Financial
Markets Conduct Act 2013.
The Company is a mixed ownership model company,
majority owned by the Government, and is bound
by the requirements of the Public Finance Act 1989.
The liabilities of the Group are not guaranteed in any
way by the Government or by any other shareholder.
Basis of preparation
The unaudited Group financial statements have
been prepared:
- in accordance with the Financial Markets Conduct
Act 2013, Generally Accepted Accounting Practice
in New Zealand (“GAAP”), the New Zealand Equivalent
to International Reporting Standard 34
Interim Financial
Reporting
and International Accounting Standard 34
Interim Financial Reporting.
- on a historical cost basis, with the exception of certain
fair value measurements.
- using the same accounting policies for all reporting
periods presented.
- in millions of New Zealand dollars, unless otherwise stated.
- exclusive of GST, with the exception of payables
and receivables that include GST invoiced.
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 2024.
Estimates and judgements
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.
The areas of significant estimates and judgements in the
Group financial statements are as follows:
- Fair value of generation plant and equipment
(refer note B1).
- Valuation of derivative financial instruments (refer note E1).
Accounting standards, interpretations and amendments
not yet effective
In May 2024, the External Reporting Board (XRB)
introduced NZ IFRS 18
Presentation and Disclosure in
Financial Statements
(effective for reporting periods
beginning on or after 1 January 2027). NZ IFRS 18
introduces new requirements on presentation within the
statement of profit or loss, including specified totals and
subtotals. It also requires disclosure of management-
defined performance measures, and includes new
requirements for the aggregation and disaggregation of
financial information based on the identified ‘roles’ of the
primary financial statements and the notes. This standard
replaces NZ IAS 1
Presentation of Financial Statements.
The Group has not yet assessed the impact of NZ IFRS 18.
There are no other accounting standards that are not yet
effective that will have a material impact on the Group's
financial statements.
A. FINANCIAL PERFORMANCE
NOTE A1. REVENUE
Mercury earns revenue from the following sources:
Revenue streamDescription and revenue recognition
Electricity generation, net of hedgingRevenue is received from:
- Electricity generated and sold through the New Zealand electricity spot market
and physical power purchase agreements (PPAs). Revenue is recognised at the
time of generation and at the spot price or contract price.
- Net settlement of hedged energy contracts sold or bought on the futures market,
and to generators, retailers and commercial and industrial customers and recognised
at the time of hedge settlement.
Electricity and gas sales to customers- Electricity and gas sales to customers are recognised when the energy is supplied
for customer consumption.
- Acquisition incentives such as credits and appliances are offered to new customers
and treated as individual performance obligations and a portion of the expected
revenue over the life of the total contract is allocated to the performance obligation
based on their standalone selling price and recognised immediately. Corresponding
contract assets are recognised on the balance sheet and amortised to the income
statement over the contract period as the future consideration is billed. Incremental
costs to obtain and retain customers are recognised on the balance sheet as contract
costs and amortised to the income statement on a straight-line basis over the expected
average mass market customer tenure.
Telco revenueCustomers consume mobile and broadband services which are measured and billed
according to monthly billing cycles and are recognised when the service has been
provided. Acquisition incentives are treated the same as above.
Other incomeIncome is received from:
- Insurance proceeds. Income is recognised at the time the insurance proceeds
are virtually certain to be received.
- External management fees. Revenue is recognised at the time the services
have been delivered.
- Sale of emission units sold to third parties. The sale is recognised at the point
in time that the emission unit is confirmed as being transferred into the acquirer's
emission unit account.
15

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
A. FINANCIAL PERFORMANCE
NOTE A2. SEGMENT REPORTING
Identification of reportable segments
The operating segments are identified by management
based on the nature of the products and services provided.
Discrete financial information about each of these operating
segments is reported to the Chief Executive, being the chief
operating decision-maker, on a monthly basis, who assesses
the performance of the operating segments on a measure
o f E B I T D A F.
EBITDAF is a non-GAAP measure that is used internally
to assess the operating performance of the Group without
the impact of non-cash and one-off or infrequent transactions.
Segment EBITDAF represents earnings before net interest
expense, tax expense, depreciation, amortisation, unrealised
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 segment report below includes a Derivatives category
within the Electricity margin. This represents the settlement
(realised gains or losses) of both hedged and unhedged
electricity swaps.
Realised gains or losses (settlements) on unhedged
electricity swaps are reported within Electricity margin
for the purposes of EBITDAF, but are reported within the
change in fair value of financial instruments in the income
statement. Realised gains or losses (settlements) on hedged
electricity swaps are reported within Electricity margin for
the purposes of EBITDAF, and within revenue or expenses
as appropriate in the income statement. Unrealised gains
or losses on both hedged and unhedged electricity swaps
are not included in EBITDAF and are reported in either
change in fair value of financial instruments in the income
statement or in other comprehensive income. A reconciliation
of EBITDAF to profit before tax can be found in the summary
table of the note.
Identified segments
Generation/Wholesale
The generation/wholesale market segment encompasses
activity associated with the electricity production, electricity
trading, generation development activities and the
Company's share of associates earnings in TPC Holdings
Limited (see note D1). It includes revenue from the sale of
electricity, to both commercial & industrial customers and
the customer segment, net settlement of energy hedges
and sale of trading emissions units to third parties. It also
includes transfer revenue from customer to generation/
wholesale for the purchase of electricity.
Customer
The customer market segment encompasses activity
associated with sale of electricity, gas, telecommunication
products/services and other related products and services
to mass market customers in New Zealand.
Other categories
Other
This category includes corporate support services
which are not directly attributable to the generation/
wholesale or customer segments and the company's
share of associates earnings in EnergySource LLC and
EnergySource Minerals LLC.
Inter-segment
This category includes transactions between segments
represent transfer charges by generation/wholesale
to customer for the purchase of electricity.
Six months ended 31 December 2024 (Unaudited)
Generation/
Wholesale
$M
Customer
$M
Other
$M
Inter-segment
$M
Tot al
$M
Generation699---699
Sales to Customers229685--914
Inter-segment sales342--(342)-
Derivatives90---90
Electricity purchases(720)(342)-342(720)
Transmission and distribution(63)(271)--(334)
Metering(2)(30)--(32)
ELECTRICITY MARGIN57542--617
Gas Revenue-65--65
Gas purchases-(31)--(31)
Transmission and distribution-(23)--(23)
Metering-(5)--(5)
GAS MARGIN-6--6
Telco Revenue-98--98
Cost of sales-(63)--(63)
TELCO MARGIN-35--35
Other direct cost of sales(18)(25)--(43)
TRADING MARGIN55758--615
Other Income82--10
Employee compensation and benefits(36)(44)(11)-(91)
Maintenance expenses(35)(15)--(50)
Other expenses(38)(16)(12)-(66)
Allocation of corporate overheads(12)(11)23--
Total operating expenses(121)(86)--(207)
Segment EBITDAF444(26)--418
Summary and reconciliation to net profit before tax
Revenue1,247850-(342)1,755
Expenses(924)(876)-342(1,458)
Realised gain/(loss) on unhedged electricity swaps117---117
Share of profit/(loss) from associates and joint ventures4---4
Segment EBITDAF444(26)--418
Change in fair value of carbon units held for trading17
Unrealised gain/(loss) on unhedged derivatives and hedge
ineffectiveness through income statement
(290)
Interest income2
Interest expense(67)
Depreciation and amortisation(176)
Profit/(loss) before tax(96)
SEGMENT RESULTS
16

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
Twelve months ended 30 June 2024 (Audited)
Generation/
Wholesale
$M
Customer
$M
Other
$M
Inter-segment
$M
Tot al
$M
Generation1,435---1,435
Sales to Customers4641,291--1,755
Inter-segment sales615--(615)-
Derivatives84---84
Electricity purchases(1,347)(615)-615(1,347)
Transmission and distribution(136)(500)--(636)
Metering(5)(60)--(65)
ELECTRICITY MARGIN1,110116--1,226
Gas Revenue-103--103
Gas purchases-(38)--(38)
Transmission and distribution-(39)--(39)
Metering-(8)--(8)
GAS MARGIN-18--18
Telco Revenue-170--170
Cost of sales-(121)--(121)
TELCO MARGIN-49--49
Other direct cost of sales(28)(37)--(65)
TRADING MARGIN1,082146--1,228
Other Income324(2)-34
Employee compensation and benefits(52)(94)(24)-(170)
Maintenance expenses(67)(20)--(87)
Other expenses(51)(49)(28)-(128)
Allocation of corporate overheads(23)(29)52--
Total operating expenses(193)(192)--(385)
Segment EBITDAF921(42)(2)-877
Summary and reconciliation to net profit before tax
Revenue2,4711,568-(615)3,424
Expenses(1,709)(1,610)-615(2,704)
Realised gain/(loss) on unhedged electricity swaps158---158
Share of profit/(loss) from associates and joint ventures1-(2)-(1)
Segment EBITDAF921(42)(2)-877
Change in fair value of carbon units held for trading8
Unrealised gain/(loss) on unhedged derivatives and hedge
ineffectiveness through income statement
14
Interest income6
Interest expense(140)
Depreciation and amortisation(350)
Profit before tax415
Six months ended 31 December 2023 (Unaudited)
Generation/
Wholesale
$M
Customer
$M
Other
$M
Inter-segment
$M
Tot al
$M
Generation573---573
Sales to Customers226669--895
Inter-segment sales325--(325)-
Derivatives39---39
Electricity purchases(534)(325)-325(534)
Transmission and distribution(69)(258)--(327)
Metering(4)(31)--(35)
ELECTRICITY MARGIN55655--611
Gas Revenue-54--54
Gas purchases-(17)--(17)
Transmission and distribution-(19)--(19)
Metering-(4)--(4)
GAS MARGIN-14--14
Telco Revenue-85--85
Cost of sales-(60)--(60)
TELCO MARGIN-25--25
Other direct cost of sales(11)(21)--(32)
TRADING MARGIN54573--618
Other income52--7
Employee compensation and benefits(29)(47)(11)-(87)
Maintenance expenses(31)(8)--(39)
Other expenses(30)(25)(10)-(65)
Allocation of corporate overheads(6)(15)21--
Total operating expenses(96)(95)--(191)
Segment EBITDAF454(20)--434
Summary and reconciliation to net profit before tax
Revenue1,120810-(325)1,605
Expenses(709)(830)-325(1,214)
Realised gain/(loss) on unhedged electricity swaps45---45
Share of profit/(loss) from associates and joint ventures(2)---(2)
Segment EBITDAF454(20)--434
Change in fair value of carbon units held for trading32
Unrealised gain/(loss) on unhedged derivatives and hedge
ineffectiveness through income statement
20
Interest income3
Interest expense(66)
Depreciation and amortisation(178)
Profit before tax245
17

Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Opening net book value132138138
Additions141746
Surrendered units(1)(2)(7)
Amortisation for the year(18)(25)(45)
Closing net book value127127132
Intangible assets consist of software, acquired intangible assets (NOW customer list), rights (mainly land access rights), and carbon units held for
settling emissions obligations. All intangible assets are deemed to have a finite useful life.
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Opening net book value8,2228,0998,099
Additions205134293
Disposals(2)-(2)
Gain on revaluation--137
Depreciation charge for the year(158)(153)(305)
Closing net book value8,2678,0808,222
Property, plant and equipment includes $97m of right-of-use assets (30 June 2024: $103m, 31 December 2023: $102m).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
B. OPERATING ASSETS
NOTE B1. PROPERTY, PLANT AND EQUIPMENT
NOTE B2. INTANGIBLE ASSETS
ASSETS CARRYING VALUES
All assets, except generation plant and equipment,
are recognised at cost less accumulated depreciation.
Fixed assets, excluding land, are depreciated on a straight
line basis over their expected useful lives.
Generation plant and equipment is originally recognised
at cost and subsequently measured at fair value less
accumulated depreciation. An independent valuation
is completed annually to determine the fair value
of these assets.
Assets carried at fair value
All generation assets shown at valuation were revalued
by an independent valuer, Pricewaterhouse Coopers, using
a net present value methodology as at 30 June 2024.
AREA OF KEY JUDGEMENT
Generation asset valuation
The key assumptions used in the independent valuation
include the forecast of the future wholesale electricity price
path, generation volumes, projected operational and capital
expenditure and asset life assumptions and discount rates.
In all cases there is an element of judgement required as
valuations make use of unobservable inputs. The valuation
also assumes the on-going operation of large industrial
customers, no material changes to the wholesale market
regulatory regime, hydro and geothermal fuel supply being
sustained over the modelled horizon and no material
changes to generation consent conditions.
Generation assets are classified as Level 3 in the fair value
hierarchy due to the use of non-market observable inputs
in the valuation.
Keeping all other valuation inputs constant, the valuation
is most sensitive to future wholesale electricity price path
and discount rate. A review of the key inputs used in
the valuation of generation assets as at 30 June 2024,
indicates that there has been no material change in the
fair value of the generation assets as at 31 December 2024.
18

Debt measured at amortised cost
Borrowing
Currency
DenominationMaturity Coupon
Unaudited
6 Months
31 Dec 2024
$M
Carrying
amount
Unaudited
6 Months
31 Dec 2023
$M
Carrying
amount
Audited
12 Months
30 Jun 2024
$M
Carrying
amount
Bank facilitiesNZDVariousFloating18013050
Commercial paper programmeNZD< 3 monthsFloating328298307
Capital bonds - MCY020NZDJul-20493.60%-302302
Debt in fair value hedge relationships
USPP - US$45mUSDDec-20254.60%796972
Green retail bonds - MCY040NZDSep-20262.16%194185186
Green retail bonds - MCY030NZDSep-20271.56%190180181
Green retail bonds - MCY060NZDJun-20285.64%161173157
Green wholesale bondsAUDNov-20282.92%204195197
Green wholesale bondsNZDOct-20301.92%135129127
Capital bonds - MCY050NZDMay-20525.73%256250248
Capital bonds - MCY070NZDJul-20546.42%369--

Lease liabilities115121121
Deferred financing costs(11)(12)(7)
Total carrying value of borrowings2,2002,0201,941
Current610453383
Non-current1,5901,5671,558
2,2002,0201,941
Current borrowings include all drawn bank facilities, borrowings with a contractual maturity of less than one year, accrued interest (31 December 2024: $13m,
30 June 2024: $10m, 31 December 2023: $12m) and current lease liabilities (31 December 2024: $12m, 30 June 2024: $16m, 31 December 2023: $13m).
Undrawn borrowing facilities at 31 December 2024 totalled $240m, net of commercial paper on issue (30 June 2024: $340m, 31 December 2023: $220m).
Fair value adjustment as at 31 December 2024 totalled $8m increase to carrying amount of borrowings (30 June 2024: $56m decrease, 31 December 2023:
$45m decrease).
Net debt as at 31 December 2024 totalled $2,093m (30 June 2024: $1,953m, 31 December 2023: $1,983m). Net debt is calculated as total borrowings
(both current and non-current) less fair value adjustments and cash.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
C. FUNDING
NOTE C1. SHARE CAPITAL AND DISTRIBUTIONS
The share capital of the Company is represented
by 1,400,012,517 ordinary shares (30 June 2024:
1,400,012,517, 31 December 2023: 1,400,012,517) issued
NOTE C2. BORROWINGS
Unaudited
31 Dec 2024
Number of
shares (M)
Unaudited
31 Dec 2024

$M
Unaudited
31 Dec 2023
Number of
shares (M)
Unaudited
31 Dec 2023

$M
Audited
30 Jun 2024
Number of
shares (M)
Audited
30 Jun 2024

$M
Treasury shares
Balance at the beginning of the period61513341334
Issue of treasury shares for dividend
reinvestment program
(5)(14)(4)(10)(7)(18)
Issue of treasury shares for long term
incentive scheme
---(1)-(1)
Balance at the end of the period11923615
Treasury shares were issued during the six months ended 31 December 2024 for the following purposes:
- The dividend reinvestment programme (DRP) continued with the transfer of 5,351,842 shares (30 June 2024: 6,887,550, 31 December 2023: 4,059,057)
to shareholders that elected to reinvest the net proceeds of cash dividends payable; and
- A total of 66,793 treasury shares worth $171,393 were issued for management long term incentive payments (30 June 2024: 375,302,
31 December 2023: 375,302).
Cents per
share
Unaudited
31 Dec 2024
$M
Unaudited
31 Dec 2023
$M
Audited
30 Jun 2024
$M
Dividends declared and paid
Final dividend for 2023
13.1-182182
Interim dividend for 2024
9. 3--129
Final dividend for 2024
14.0195--
195182311

Earnings per share
Profit for the year attributable to owners of the parent ($m)
(67)174290
Weighted average ordinary shares
1,4001,4001,400
Less weighted average treasury shares
(3)(11)(9)
Weighted average ordinary shares for earnings per share (millions)
1,3971,3891,391
Basic and diluted earnings per share (cents)
(4.80)12.5320.85
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.
19

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
Contingencies
On 7 June 2021, the Kawerau geothermal power station
experienced an unplanned outage as a result of a mechanical
failure. An outage was completed in June 2023 to install
replacement equipment. The Group received an initial payment
of $26m recorded as income in 2022 and a second payment
of $16m in the 2025 financial year which was recognised as
income in the 2024 financial year. The Group expects to receive
additional insurance proceeds in the 2026 financial year once
the total loss to the Group as a result of the incident has been
confirmed. This will be recognised as revenue when it is virtually
certain to be received.
The Group holds land and has interests in fresh water and
geothermal resources that are subject to claims that have
been brought against the Crown. The Group discloses these
claims as contingent liabilities as the value, timing and
likelihood of the claims being successful are all uncertain.
The Pouākani Claims Trust No 2 and a group of kaumātua have
filed a claim in the Māori Land Court seeking a declaration that
certain parts of the Waikato riverbed on which Mercury operates
hydro assets are Māori customary land, including the riverbed
beneath the Whakamaru, Maraetai I and II and Waipapa dams
and the related power stations. 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
the Waikato riverbed beneath the Whakamaru, Maraetai I and II
and Waipapa dams and the related power stations, and has
received advice that if the outcome of the claim adversely
affects the Group’s title to, or ability to access or operate its
hydro assets, Mercury may bring a claim seeking compensation
against the Crown. The claim is currently subject to a judicial
review challenge to the Māori Land Court’s decision to decline
Mercury’s application to strike out parts of the claim. The
applicants have also filed a related claim in the Waitangi Tribunal
under the Treaty of Waitangi Act 1975, but have not yet taken
any further steps in relation to that claim.
A claim by the New Zealand Māori Council relating to fresh
water and geothermal resources was lodged in 2012 with
the Waitangi Tribunal. The inquiry was divided into three
stages. In earlier stages, 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. Stage three will consider law reform,
including what Māori rights and interests in geothermal
resources are guaranteed and protected by the Treaty
of Waitangi, whether current law in respect of geothermal
resources is consistent with the principles of the Treaty of
Waitangi and, if not, what recommendations should be
made for the reform of the current law.
Relatedly, individuals representing hapū affiliated with
Ngāti Tūwharetoa have filed a claim in the Tribunal
asserting customary interests in certain geothermal
resources, including the Mōkai, Rotokawa and Kawerau
geothermal fields. Similar claims asserting customary rights
in the Rotokawa and Ngā Tamariki geothermal fields have
now been filed in the Tribunal by entities associated with
Ngāti Tahu- Ngāti Whāoa. The impact of these claims
on the Group’s operations, and consequently the amount
of any claim or recourse the Group may have should that
impact be adverse to the Group’s interests, are 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.
The Group has no other material contingent assets
or liabilities.
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Capital commitments833322717
NOTE C4. COMMITMENTS AND CONTINGENCIES
Capital commitments
Capital commitments include purchases of both property, plant and equipment (PP&E) and intangibles. PP&E commitments
include contracts for refurbishment of hydro generation assets at Karāpiro, Maraetai, and Waipapa, contracts for construction
of an additional geothermal OEC unit at Ngā Tamariki, geothermal drilling campaigns at the Kawerau, Ngā Tamariki
and Rotokawa fields and contracts for construction of Kaiwera Downs Stage II and Kaiwaikawe wind farms. Intangible
commitments are contracts to purchase New Zealand emissions trading scheme (NZ ETS) units. In the event the NZ ETS
is terminated the existing purchase agreements, which cover the three year period from the end of the reporting period,
will also terminate.
Operating commitments
As part of its day-to-day operations, the Group enters various operating arrangements and commitments with third parties
to support and enhance the Group’s long-term licence to operate, provide access to land, and use of natural resources.
These operating arrangements may be short-, medium-, or long-term in nature.
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Interest expense on borrowings6765135
Interest expense on lease liabilities327
Unwind of discount on provisions224
Less capitalised interest(5)(3)(6)
Total interest expense6766140
Interest income(2)(3)(6)
Net interest expense6563134
Interest costs related to the construction of new generation assets are capitalised. The average rate used to determine the amount of borrowing costs eligible
for capitalisation as at 31 December 2024 was 5.88% (30 June 2024: 6.67%, 31 December 2023: 6.42%).
NOTE C3. NET INTEREST EXPENSE
20

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
D. GROUP STRUCTURE
NOTE D1. ASSOCIATES AND JOINT ARRANGEMENTS
The Group financial statements include the following:
NOTE D2. RELATED PARTY TRANSACTIONS
Majority shareholder
The majority shareholder of Mercury NZ Limited is the Government. Transactions cover a variety of services including
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 contract for difference with Genesis Energy Limited for generation produced at the
Waipipi wind farm.
Mercury NZ Limited also 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:
Interest held
Name of entityPrincipal activityType
Unaudited
31 Dec 2024
Unaudited
31 Dec 2023
Audited
30 Jun 2024Country
TPC Holdings LimitedInvestment holdingAssociate
1
25.00%25.00%25.00%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 venture
1
20.86%20.86%20.86%United States
EnergySource Minerals LLCMineral extractionJoint venture
1
17.7 3%17.7 3%17.7 3%United States
1
Associates and joint ventures are equity accounted under NZ IAS 28 Investments in Associates and Joint Ventures.
Associates:Joint ventures:
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Balance at the beginning of the period637272688
Share of earnings/(losses)4(2)1--(2)
Share of movement in other
comprehensive income and reserves
5(2)(6)---
Distributions received during the year(3)(2)(4)---
Balance at the end of the period696663686
Transaction value
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Associates
• Management fees and service agreements received131326
• Energy contract settlements (paid)/received14931

Joint operations
• Management fees and service fees received and paid 151131
• Energy contract settlements (paid)/received7-12
An advance to TPC Holdings Limited of $4m (30 June 2024:
$4m, 31 December 2023: $4m) is interest free and is repayable
on demand subject to certain conditions being met.
The long-term advance to our Rotokawa joint operation
partner of $2m (30 June 2024: $3m, 31 December 2023: $3m)
carries a floating interest rate. Repayments under the advance
are linked to the level of receipts under the geothermal
energy supply agreement. There is no fixed repayment
date; the agreement will terminate on receipt of any
outstanding balances.
No related party balances have been written off,
forgiven, or any impairment charge booked.
21

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
NOTE D2. RELATED PARTY TRANSACTIONS (CONTINUED)
Transaction value
Unaudited
6 Months
31 Dec 2024
$000
Unaudited
6 Months
31 Dec 2023
$000
Audited
12 Months
30 Jun 2024
$000
Key management personnel compensation
(paid and payable) comprised:
Directors’ fees5395791,102
Benefits for the Chief Executive and Senior Management:
• Salary and other short-term benefits 4,4444,0847,444
• Termination benefits -312312
• Share-based payments363428779
5,3465,4039,637
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.
Some Directors also provide directorship services to other third party entities.
A number of key management personnel provide directorship services to subsidiaries, associates and joint operations
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.
Kawerau Geothermal Station
22

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
E. RISK
NOTE E1. DERIVATIVE FINANCIAL
INSTRUMENTS
The Group uses a range of derivative contracts in order
to manage risk and hedge against cash flow and fair value
volatility. It is the Group's policy to apply hedge accounting
to reduce volatility in profit or loss, and where possible,
derivatives are designated into hedging relationships
under NZ IFRS 9
Financial Instruments as either
cash flow or fair value hedges.
Interest rate and cross currency interest rate derivatives
Interest rate and cross currency swaps are used to manage
interest rate risks. Interest rate swaps where we pay-fixed,
and receive-floating interest rates are designated as cash
flow hedges in a relationship with a portion of floating
rate debt exposure. Interest rate swaps where we receive-
fixed, pay-floating interest rate are designated as fair value
hedges in a relationship with the swap rate on fixed rate
bonds. Cross-currency swaps are designated as both fair
value and cash flow hedge relationships with the USPP
and Australian denominated green wholesale bond (refer
note C2) depending on the component of the debt being
hedged: the risk free (swap) rate as a fair value hedge;
and the credit margin as cash flow hedge.
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
CURRENT ASSETS
Electricity price derivative139256308
Interest rate derivative574
Cross currency interest rate derivative21--
Foreign exchange derivative16-1
181263313

CURRENT LIABILITIES
Electricity price derivative162210327
Interest rate derivative223836
Cross currency interest rate derivative488
Foreign exchange derivative-8-
188264371

NON-CURRENT ASSETS
Electricity price derivative113170183
Interest rate derivative2076
Cross currency interest rate derivative-1214
133189203

NON-CURRENT LIABILITIES
Electricity price derivative370161235
Interest rate derivative466154
Cross currency interest rate derivative287
418230296
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Change in fair value of financial instruments
Realised gain/(loss) on unhedged electricity swaps11745158
Unrealised gain/(loss) on unhedged derivatives and
hedge ineffectiveness through income statement
(290)2014
Change in fair value of derivative financial instruments
per income statement
(173)65172
Foreign exchange derivatives
Foreign exchange forward contracts are designated
as cash flow hedges in a relationship with forecast
purchases of inventory and capital equipment, mainly
for maintenance and construction of generation assets.
Electricity contracts
Where possible, electricity price derivatives are designated
as cash flow hedges in a relationship with forecast electricity
sales and purchases. Exceptions are swaps and options
used for trading (electricity futures, options and financial
transmission rights) as well as other contracts that have
been deemed not eligible for hedge accounting due to price
reset mechanisms, termination options or variable volume
structures (e.g. wind and solar power purchase agreements).
The fair values of derivative financial instruments
are summarised in the following table:
23

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
AREA OF KEY JUDGEMENT
FAIR VALUE ESTIMATION
Valuation techniques
All fair value balances are assigned to a fair value hierarchy level as defined by NZ IFRS 13
Fair Value Measurement.
No transfers occurred between hierarchy levels in the period ended 31 December 2024.
The following table provides a breakdown of the fair value of derivatives by the source of key valuation inputs:
NOTE E1. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Unaudited
31 December 2024
Quoted
market price
Market
observable inputs
Non-market
observable inputsTot al
Valuation techniqueLevel 1Level 2Level 3
Financial assets$M$M$M$M
Derivative instruments
• Electricity price derivatives13-239252
• Interest rate derivatives-25-25
• Cross currency interest rate derivatives-21-21
• Foreign exchange rate derivatives-16-16
1362239314

Financial liabilities
Derivative instruments
• Electricity price derivatives81-451532
• Interest rate derivatives-68-68
• Cross currency interest rate derivatives-6-6
• Foreign exchange rate derivatives----
8174451606
Net financial asset/(liability)(68)(12)(212)(292)
Audited
30 June 2024
Quoted
market price
Market
observable inputs
Non-market
observable inputsTot al
Valuation techniqueLevel 1Level 2Level 3
Financial assets$M$M$M$M
Derivative instruments
• Electricity price derivatives36-455491
• Interest rate derivatives-10-10
• Cross currency interest rate derivatives-14-14
• Foreign exchange rate derivatives-1-1
3625455516

Financial liabilities
Derivative instruments
• Electricity price derivatives72-490562
• Interest rate derivatives-90-90
• Cross currency interest rate derivatives-15-15
• Foreign exchange rate derivatives----
72105490667
Net financial asset/(liability)(36)(80)(35)(151)
Unaudited
31 December 2023
Quoted
market price
Market
observable inputs
Non-market
observable inputsTot al
Valuation techniqueLevel 1Level 2Level 3
Financial assets$M$M$M$M
Derivative instruments
• Electricity price derivatives26-400426
• Interest rate derivatives-14-14
• Cross currency interest rate derivatives-12-12
• Foreign exchange rate derivatives----
2626400452

Financial liabilities
Derivative instruments
• Electricity price derivatives51-320371
• Interest rate derivatives-99-99
• Cross currency interest rate derivatives-16-16
• Foreign exchange rate derivatives-8-8
51123320494
Net financial asset/(liability)(25)(97)80(42)
24

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
Valuation of Level 1 financial instruments
Level 1 financial derivatives includes ASX futures and financial transmission rights with fair values determined using
quoted prices. These prices represent regularly occurring market transactions on an orderly basis.
Valuation of Level 2 financial instruments
The fair values of Level 2 derivatives are determined using discounted cash flow models. Listed below are the Level 2
derivatives and the key inputs to the valuation model.
Valuation of Level 3 financial instruments
The Group uses various methods in estimating the fair value of a financial instrument. Where the fair value of a derivative
is calculated as the present value of the estimated future cash flows of the instrument there are two key inputs being used:
The wide range in discount factors are driven by entering into longer term derivative contracts. Forward electricity spot price
in the front end of the curve in HY25 were lower, driven by futures price, thus resulting in a lower maximum price
of $177/MWh in HY25 compared to $221/MWh in FY24.
The selection of valuation inputs requires significant judgement, and therefore there is a range of reasonably possible
assumptions in respect of these inputs that could be used in estimating the fair values of these derivatives. Maximum
use is made of observable market data when selecting inputs and developing assumptions for the valuation technique.
DerivativeValuation Input
Cross Currency Interest Rate Swaps (CCIRS)
Forward interest rate price curve and foreign
exchange rate curve
Interest Rate SwapsForward interest rate curve
Foreign Exchange ContractForward foreign exchange rate curves
Unaudited
6 Months
31 Dec 2024
Unaudited
6 Months
31 Dec 2023
Audited
12 Months
30 Jun 2024
Price path$98/MWh to $177/MWh$85/MWh to $188/MWh$84/MWh to $221/MWh
Discount rate10.8% to 3.3%10.3% to 3.5%10.3% to 4.1%
Reconciliation of Level 3 unrealised fair value movements
The unrealised Level 3 fair value movements in the Group's Consolidated Income Statement are recognised within 'change in
the fair value of financial instruments', along with realised gains/losses on financial instruments not in a hedging relationship.
Sensitivity of Level 3 fair value measurements
The Group uses unobservable inputs to measure the fair value of Level 3 electricity derivatives. These inputs are most sensitive
to changes in electricity forward prices. These electricity price derivatives are in a net liability position per the excel stat
accounts on the balance sheet. The Group has a net exposure that if there was an increase in the forward price would likely
result in an increase in fair value of the Consolidated Balance Sheet, and a decrease in the forward price would likely result
in a decrease in fair value.
Fair value through other
comprehensive income
Fair value through
profit or loss
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Opening balance sheet position(259)(78)(78)223211211
New contracts-(4)(48)2-(4)
Matured contracts49(6)(12)5(6)(6)
Gains and losses
Through the income statement---(267)3822
Through other comprehensive income35(76)(120)---
Closing balance sheet position(175)(164)(259)(37)24 4223
NOTE E1. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
25

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2024
F. OTHER
NOTE F1. SUBSEQUENT EVENTS AND OTHER MATTERS
The Board of Directors has approved a fully imputed interim dividend of 9.6 cents per share to be paid on 1 April 2025.
The Group plans to continue with its dividend reinvestment plan, with a strike price to be determined by the average
of daily volume weighted average sale price for a share, calculated on all price setting trades of shares that took place
through the NZX Main Board over a period of five trading days starting on 10 March 2025, less a 2% discount.
There are no other material events subsequent to balance date that would affect the fair presentation of these
financial statements.
Deferred 'inception' gains/(losses) on Level 3 derivatives
There is a presumption that when derivative contracts are entered into at an arm's length basis that the fair value at inception
is zero. The contract price of non exchange traded electricity derivative contracts are agreed on a bilateral basis, the pricing for
which may differ from the prevailing derived market price curve for a variety of reasons. In these circumstances an inception
adjustment is made to bring the initial fair value of the contract to zero at inception. This inception adjustment is amortised
over the life of the contract by adjusting the future price path used to determine the fair value of the derivatives by a constant
amount to return the initial fair value to zero.
The table below details the movements in inception value gains/(losses) included in the fair value of derivative financial assets
and liabilities:
Unaudited
6 Months
31 Dec 2024
$M
Unaudited
6 Months
31 Dec 2023
$M
Audited
12 Months
30 Jun 2024
$M
Electricity price derivatives
Opening deferred inception gains/(losses) (1) 39 39
Deferred inception gains/(losses) on new hedges 8 12 (23)
Deferred inception(losses)/gains realised during the year(11) (5) (17)
Closing inception gains/(losses)(4) 46 (1)
NOTE E1. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
26

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 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 (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
Scott St John, Chair
Mark Binns
Hannah Hamling
Adrian Littlewood
James Miller
Susan Peterson
Mike Taitoko
Lorraine Witten
Executive Leadership Team
Stewart Hamilton, Chief Executive
Lucie Drummond, Chief Sustainability Officer
Phil Gibson, Executive GM Strategic Affairs
William Meek, Chief Financial Officer
Craig Neustroski, Chief Operating Officer -
Customer
Fiona Smith, Chief People Experience
and Technology Officer
Tim Thompson, Executive GM Wholesale
Matt Tolcher, Executive GM Generation
Development
Tomas Toomata, Acting Executive GM Generation
Company Secretary
Howard Thomas,
General Counsel and Company Secretary
Investor Relations
& Sustainability Enquiries
Paul Ruediger,
Head of Business Performance &
Investor Relations
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 December 2024)
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
INFORMATION FOR
SHAREHOLDERS.
DIRECTORY.
27

---

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 06/03/2025
Ex-Date (one business day before the
Record Date)
05/03/2025
Payment date (and allotment date for
DRP)
01/04/2025
Total monies associated with the
distribution
$134,349,539
Source of distribution (for example,
retained earnings)
Income available for distribution
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $ 0.13333333
Gross taxable amount $ 0.13333333
Total cash distribution $ 0.09600000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $ 0.01694118
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
$ 0.03733333
Resident Withholding Tax per
financial product
$ 0.00666667

Section 4: Distribution re-investment plan
DRP % discount (if any)
2.0%
Start date and end date for
determining market price for DRP
10/03/2025 14/03/2025
Date strike price to be announced (if
not available at this time)
17/03/2025
Specify source of financial products
to be issued under DRP programme
(new issue or to be bought on
market)
Treasury stock and new issue
DRP strike price per financial product
TBC
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
07/03/2025
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

25/02/2025