Meridian Energy Limited 2025 Full Year Financial Results
Release
Meridian Energy Limited (ARBN 151 800 396) A company incorporated in New Zealand
Level 2, 98 Customhouse Quay, Wellington 6011
meridianenergy.co.nz
Stock Exchange Listings NZX (MEL) ASX (MEZ)
Meridian navigates challenging year, lays strong foundation
for growth
27 August 2025
Meridian Energy has reported operating cash flows of $318 million for the year ending 30 June 2025,
down from $667 million the previous year. The company recorded a net loss after tax of $452 million,
compared to a net profit after tax of $429 million in FY24.
EBITDAF
1
was $611 million, down from $905 million, while underlying net profit
2
fell from $359 million
to $56 million. Both of these are non-GAAP measures.
A key factor behind these results was a 23% decrease in energy margin, down from $1.276 billion to
$982 million. This was impacted by two severe droughts and $300 million spent on hedge and
demand response contracts to help maintain security of supply for New Zealand homes and
businesses. This included calling the largest demand response option with New Zealand Aluminium
Smelters.
“We weathered a perfect storm. The combination of historically low hydro inflows, extended periods of
low wind, two major droughts and a dramatic decline in gas availability combined to make this a very
challenging financial year. But the fundamentals of this business have been strengthened through
sound investment and delivering on our strategy,” says Meridian Chief Executive Mike Roan.
“Despite the challenges, there were important wins and meaningful progress against our strategy. We
secured five resource consents for new assets, invested $193 million in building and maintaining
generation plant, acquired two businesses and undertook a strategic reset of the Retail business
while growing customer connections.”
“For us, FY25 will be defined by Meridian putting New Zealand’s security of supply first, keeping
power flowing for homes and businesses, and the financial hit we took because of that. Our balance
sheet is structured to underwrite major droughts, and that’s one of the ways New Zealand benefits
1
Earnings before interest, tax, depreciation, amortisation, unrealised changes in fair value of hedges, impairments and gains or
losses on sale of assets. EBITDAF is a non-GAAP financial measure but is commonly used within the electricity industry as a
measure of performance as it shows the level of earnings before impact of gearing levels and non-cash charges such as
depreciation and amortisation. Market analysts use the measure as an input into company valuation and valuation metrics used
to assess relative value and performance of companies across the sector.
2
Net profit after tax adjusted for the effects of changes in fair value of unrealised hedges, electricity option premiums and other
non-cash items and their tax effects. Underlying net profit after tax is a non-GAAP financial measure. Because they are not
defined by GAAP or IFRS, Meridian’s calculation of such measures may differ from similarly titled measures presented by other
companies and they should not be considered in isolation from, or construed as an alternative to, other financial measures
determined in accordance with GAAP. Although Meridian believes they provide useful information in measuring the financial
performance and condition of Meridian’s business, readers are cautioned not to place undue reliance on these non-GAAP
financial measures. A reconciliation of underlying net profit after tax is included on page 5.
meridianenergy.co.nz
PG 2
from having large and financially strong integrated electricity companies supporting the economy,”
says Mike Roan.
That strong balance sheet meant the company was also able to provide stable returns to
shareholders, with the Board declaring a final ordinary dividend of 14.85 cents per share. This brings
the total ordinary dividends declared in FY25 to 21.00 cents per share. The Board approved
continuation of the Dividend Reinvestment Plan at a 2% discount.
The Board also signals that it may review the level of future dividends in the event of a severe drought
in future years so the company can prudently manage cash flows. This will enable the Board to
maintain flexibility while maintaining Meridian’s credit rating.
The Year in Review
The droughts and domestic gas supply issues that shaped Meridian’s financial result also impacted
wholesale and customer pricing, with increases in lines and transmission charges also key factors.
These issues combined to generate intense scrutiny of the industry and potential reforms through the
Energy Competition Task Force and the Government’s Frontier Report.
“We’re supportive of changes that are in the interests of electricity consumers. We would expect
decision makers to focus any interventions on the core challenge driving costs into the sector, which
is the rapid decline in the gas market,” says Mike Roan.
“Freeing up contingent storage at Lake Pūkaki is a vital step and we’re delighted that the Minister for
Infrastructure has approved our request to have our application heard through the fast-track process.
This lake holds more than 40% of the country’s total hydro storage and access to more of its water
will reduce the impacts of future droughts on both supply and prices. Continuing to focus on reducing
resource consenting timeframes will also greatly assist to improve security of supply more rapidly.”
In the meantime, Meridian and the sector have taken important steps to support security of supply for
Winter 2026 and beyond by supplementing gas as a peaking fuel. Last month, Meridian, together with
Contact, Mercury and Genesis, completed an agreement that will support Genesis to improve the
operational resilience of its Huntly power station and increase available generation capacity and
thermal fuel to the market in the form of a Strategic Energy Reserve. This agreement awaits
Commerce Commission approval.
“It was a challenging decision for us given our commitment to decarbonisation and renewable energy
but extending the life of Huntly and building a thermal fuel reserve are in the best interests of Kiwi
homes and businesses, and the New Zealand economy in the short-to-medium term,” says Mike
Roan.
“It also gives our Meridian team further motivation to accelerate the deployment of new renewable
projects to displace the use of coal in the future. We also continue to actively pursue options to
increase access to stored water at our hydro stations, which we believe are the best and most
sustainable firming options for the country.”
FY25 also saw a change in Meridian leadership, with Mike Roan appointed Chief Executive following
the resignation of Neal Barclay. This transition occurred on 1 July. The company appointed Mandy
Simpson as its new Chief Financial Officer and she is set to join the company on 1 September.
meridianenergy.co.nz
PG 3
Renewable Development
The company’s 7 in 7 renewable build programme has advanced at pace. With the 176MW Harapaki
Wind Farm now fully operational and the May 2025 completion of the 100MW Battery Energy Storage
System (BESS) at Ruakākā Energy Park near Whangārei, two key milestones have been met.
In addition, Meridian has five wind, solar and battery projects consented – another BESS in the
Manawatū, a wind farm at Mount Munro in the Wairarapa, a solar farm that will form part of the
Ruakākā Energy Park, a large solar joint venture with Nova near Taupō and the first re-powering of
the Te Rere Hau Wind Farm. Unfortunately, the timeline for Te Rere Hau investment decision has
been revised from August 2025 to mid-to-late 2026 due to an additional consent required to relocate
an Airways Corporation facility from the current site.
“We are doing our share of the heavy lifting needed to secure New Zealand’s energy future. Having
invested more than $1 billion in the past five years, we have a further $2 billion of planned investment
over the next three years. These projects will add almost 2,500GWh of new annual generation, a six
percent increase to the electricity system,” says Mike Roan.
“The work underway will help make New Zealand’s electricity system more resilient and affordable. I
believe it will also enable future economic prosperity. With one of the most renewable grids in the
world, New Zealand can take advantage of the opportunity to create and market more green products
internationally.”
Retail
The company’s mass market volumes and market share grew across both the Meridian and
Powershop brands, adding 35,405 new connections – an increase of 10 percent. The company
supplies around 17 percent of all household and business customers, and remains the country’s
biggest supplier of retail electricity, with sales approaching 9,500GWh.
“Our Retail business has done really well, growing market share in very competitive conditions. We’ve
transformed our operating model to help us deliver digital and data-driven customer experiences and
brought some exciting new products to market that are saving customers money,” says Mike Roan.
“We also rolled over pricing for commercial and industrial customers coming off contract during last
August’s elevated wholesale prices. This helped protect these businesses, the people they employ
and the contribution they make to New Zealand’s economy.”
The acquisition of Flick in May 2025, following Ampol’s divestment added further to Meridian’s
customer base, reinforcing the company’s position as the fourth-largest retailer by customer numbers.
To support further growth, Meridian has partnered with Kraken to deliver its new core energy platform.
This will improve Meridian’s in-house capability to deliver data-driven solutions that will make energy
more affordable for homes and businesses.
Meridian’s Energy Wellbeing Programme continued to invest in promoting equitable access for those
struggling with energy hardship. This year over 1,700 households have been supported. The
company has now assisted a total of 3,185 households since the programme launched in 2023.
meridianenergy.co.nz
PG 4
Electricity Generation
Maintaining asset availability and maximising generation output have never been more critical than
they were this year. Meridian’s generation team were able to deliver 112MW of new capacity from
existing hydro assets – more than the capacity of two units at Ōhau B or C – and increase levels of
peak-period availability across the generation fleet.
The arrival of a new transformer at Manapōuri returned 128MW in capacity from the beginning of
2025 and the company was able to lease and install a transformer at West Wind, which meant a
further 45MW of capacity was restored.
“Our Generation team has done a great job of maximising availability and generation output, which
has been important for New Zealand’s security of supply. Despite securing two replacements,
transformers remain an issue. Independent advice confirmed the need to replace further transformers
at Manapōuri, so in May we announced plans to procure five replacement transformers over the next
two and a half years,” says Mike Roan.
Sustainability
Meridian was included in the Dow Jones Best-in-Class Asia Pacific Index for the tenth successive
year and ranked number one in the electric utilities sector. The index provides independent validation
of the company’s sustainability (ESG) performance for investors and other stakeholders.
The company conducted a review of its Half by 30 emissions reduction target. Scope 1 and Scope 2
remain at 50 percent by FY30, but the target for Scope 3 emissions (those emitted by supply chain
partners) has been revised. Halving Scope 3 emissions by FY30 is now impossible given the amount
of sector growth the country is planning and the speed at which this needs to happen.
From 1 July, Meridian will begin using an intensity-based target for Scope 3 emissions. This involves
using a target based on dividing these supplier-based emissions by the total installed capacity of
Meridian’s generation assets. By linking supplier emissions to Meridian’s growing amount of
generation capacity, this enables the company to work towards a target that means there will be less
emissions for each MW of capacity installed. The company is targeting a reduction of more than 51%
by 2030 and will start reporting on this from FY26.
“The dramatic growth in the electricity sector and level of new build for Meridian were not anticipated
when we set this target in 2019. We are still confident of reducing our overall Scope 3 emissions, but
we have to be pragmatic and allow ourselves to continue to build. The revised goal remains credible
and ambitious, and we have obtained independent verification from the Science Based Targets
Initiative,” says Mike Roan.
Future Investment
With construction commencing on the Ruakākā Solar Farm in the approaching spring, Meridian
expects to invest over $350 million in new and existing assets during the 2026 financial year and a
total of $2 billion over the next three years.
meridianenergy.co.nz
PG 5
ENDS
Authorised for release by:
Jason Woolley
General Counsel and Company Secretary
Meridian Energy Limited
For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Lachlan Forsyth
Media & Content Manager
021 243 5342
Segment earnings statement
Financial year ended 30 June20252024
$M
Energy margin9821,276
Other revenue5236
Energy transmission expense(4)(4)
Electricity metering expense
(78)(73)
Hosting expenses
(52)(49)
Employee and other operating expenses
(289)(281)
EBITDAF611905
Depreciation and amortisation(447)(334)
Asset related adjsutments(33)(18)
Net change in fair value of energy hedges(659)102
Net finance costs(79)(57)
Net change in fair value of treasury hedges(12)(4)
Net profit before tax(619)594
Income tax expense167(165)
Net profit after tax(452)429
UNPAT
Financial year ended 30 June20252024
$M
Net profit after tax(452)429
Underlying adjustments
Hedging instruments
Net change in fair value of energy hedges
659(102)
Net change in fair value of treasury hedges(12)4
Premiums paid on electricity options net of interest12(23)
Assets
Asset related adjustments3318
Total adjustments before tax692(103)
Taxation
Tax effect of above adjustments(184)33
Underlying net profit after tax56359
---
Navigating today,
unlocking tomorrow
MERIDIAN ENERGY LIMITED
INTEGRATED REPORT 2025
Tough year, sound
long-term strategy
Despite a very challenging year
financially, we had some important
wins and made meaningful progress
against our long-term strategy.
There is plenty to be proud of
this year as our operational pace
quickened and investment in our
development pipeline increased.
Record low inflows at different times
during the year, regulatory barriers
to accessing contingent storage,
and the need to act quickly when
gas wasn’t available, were reminders
of the ongoing risk management
and near-term challenges Meridian
and the sector must address.
Regardless of those significant
events, we stayed the course. We
now have 690 megawatts (MW) of
development projects consented and
we plan to invest $3 billion over the
next five years to support Aotearoa
New Zealand’s cleaner energy future.
Our work programme to deliver on
the next generation of retail has seen
us introduce new ways of working
and new products, while expanding
our market presence. The Kraken
billing platform will help us redefine
how we deliver clean, flexible energy
solutions to customers at highly
competitive prices.
We’ve advanced our pursuit
of a more resilient and flexible
electricity system. We introduced
new assets, continued to improve
the performance of our current
renewable operations, and embarked
on a review of how we can use
data to bring new insights to our
decision-making, to add value to
our generation business.
Our commitment to embedding
sustainable practices across our
business continued this year. We
achieved the highest score of the
electric utilities in the Dow Jones
Best-in-Class Sustainability Asia
Pacific Index, further validation
that we are on track towards our
long-term goals. We have made
some changes as we work to deliver
our Climate Action Plan. We’ve scaled
back our reduction targets for our
supply chain-driven emissions while
maintaining our science-aligned
commitment to reduce the
emissions in our direct control.
MENU
2
MERIDIAN ENERGY INTEGRATED REPORT 2025
About this report
This Integrated Report reviews our financial, economic, social
and environmental performance for the financial year ended
30 June 2025 (FY25) and outlines how we’ve applied our strategy
to create value for the short, medium and long term.
This report has been prepared using
the International Integrated Reporting
Framework and the 2021 Global
Reporting Initiative (GRI) Standards.
It covers the performance of all
members of the Meridian Group
1
.
For the most part, the focus is on
Group performance and many of the
topics discussed centre on the Parent
company, mainly because the other
businesses represent less than 10
percent of the Group’s overall revenue.
The Board has established processes
to ensure the quality and integrity
of the annual Integrated Report.
Deloitte Limited has provided limited
assurance for GRI disclosures as
identified in the GRI content index.
The financial statements have been
prepared using appropriate financial
reporting standards and have been
assured by Deloitte Limited on behalf
of the Auditor-General.
1 See Note E4 Group Structure
Our integrated
reporting suite
In addition to our Integrated Report,
we prepare and publish a range of
supplementary documents providing
additional detail on our operations
and performance for FY25.
Dated 26 August 2025
Signed on behalf of the Board by:
MARK VERBIEST
CHAIR
JULIA HOARE
CHAIR, AUDIT AND RISK COMMITTEE
OTHER DOCUMENTS IN OUR INTEGRATED REPORTING SUITE
INTEGRATED REPORT DATA PACK bit.ly/44yppqP
Key data points and detail for experts
CLIMATE ACTION PLAN bit.ly/44ixrFv
Initiatives to support decarbonisation, grow renewables,
and to reduce our emissions to reach net-zero by 2050
CLIMATE-RELATED DISCLOSURES bit.ly/3IeqYTr
The risks and opportunities for our business in helping
the country transition to a low-carbon economy
CORPORATE GOVERNANCE STATEMENT bit.ly/4nAPfmL
Snapshot of our corporate governance practices,
processes and policies following the recommendations
in the NZX Corporate Governance Code
GREENHOUSE GAS EMISSIONS INVENTORY REPORT bit.ly/4lhI6GB
Our greenhouse gas emissions for the year
MODERN SLAVERY STATEMENT bit.ly/4lKoVVG
The risks of modern slavery in our operations and supply
chain of a reporting entity and how we are responding
MENU
3
MERIDIAN ENERGY INTEGRATED REPORT 2025
Contents
3About this report
3Our integrated reporting suite
5Chair and Chief
Executive report
6Navigating the challenges
7Grow renewable generation
8Deliver cleaner,
cheaper energy
9Deliver operational excellence
11Grow capability and culture
13Making a difference
13Highlights
14Our strategy
15Our strategy map
16Tough year, but we’ve
made progress
17Grow renewable generation
18Why read this section
20Net zero is not a straight path,
but it is the right road
20A secure, sustainable and
affordable grid will take time
22Delivering beyond 7 in 7
25Government policy focus
26Hedging
27Re-consenting the
Waitaki Power Scheme
28Case study: Powerful progress
at Ruakākā energy park
29Deliver cleaner,
cheaper energy
30Why read this section
32Our ‘next generation’
approach to retail
34New products saving
customers money
34Zero charging
network expands
35Helping businesses
decarbonise
36Businesses support
communities with
Decarbonisation Fund
37Our goal is access to
energy for all
37Informed by data,
delivered digitally
38Case study: Getting into hot
water, for all the right reasons
39Deliver operational
excellence
40Why read this section
42Droughts impacted earnings
44Strong balance sheet
44Flux supporting the
transition to Kraken
44Data is changing how we work
46Case study: Rethinking
how we restart
47Grow capability and culture
48Why read this section
50A new operating model
53Wellbeing is at the heart
of our approach
53Standardising our
safety approach
55Celebrating partnerships
55Powering up communities
56Forever Forests keep growing
57Evolving our practice
57Making the right start
61About us
62Our commitment to
effective governance
64Our Board
65Our Executive Team
66Clean energy matters
68Our material impacts
81Remuneration Report
82Report from the Chair of
the People, Remuneration
and Culture Committee
84Remuneration governance
84Remuneration policy
87Key performance summary
93Chief Executive remuneration
97Meridian share ownership
97ESG disclosures
99Remuneration bands
100Director remuneration
102Further disclosures
115Financial statements
157Independent
Auditor’s Report
161Independent
Assurance Report
163GRI Standards content index
168Directory
MENU
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Chair and
Chief Executive Report
IMAGE
Mark Verbiest, Chair
Mike Roan, Chief Executive.
5
MENUCHAIR AND CHIEF EXECUTIVE REPORT
MERIDIAN ENERGY INTEGRATED REPORT 2025
Navigating the challenges
Tēnā koutou
This year we weathered a perfect
storm. The combination of historically
low hydro inflows, periods of low wind,
two major droughts and a dramatic
decline in gas availability made this
a very challenging financial year. At
the same time, we worked hard to
strengthen the fundamentals of the
business through sound investment for
growth and delivering on our strategy.
We secured five resource consents for
new assets, invested $193 million in
building and maintaining generation
plant, acquired two businesses and
undertook a strategic reset of our
retail business, while growing
customer connections.
For us, FY25 will be defined by
Meridian putting Aotearoa New
Zealand’s security of supply first,
keeping power flowing for homes
and businesses, and the financial hit
we took because of that. Our balance
sheet is structured to underwrite major
droughts, and that is one of the ways
our country benefits from having
large and financially strong gentailers
supporting the economy.
Tackling energy security
The loss of reasonably priced gas in
August 2024 pushed up wholesale
prices, creating risk for the overall
energy sector which has relied primarily
on gas for flexibility and support. This
timing was particularly challenging as
the electricity sector also experienced
two prolonged droughts.
These issues combined created
intense scrutiny of the industry and
potential reforms through the Energy
Competition Task Force and the
Government’s Frontier Report.
Even though it cost an extraordinary
amount, Meridian played a lead role
in stabilising the electricity system
by underwriting agreements with
Methanex, making gas available for
electricity security of supply. We also
worked with New Zealand Aluminium
Smelters (NZAS) to utilise its demand
flexibility and we are seeking improved
access to ‘contingent’ hydro storage
and lifting generation capacity across
our fleet. While the vast majority of our
customers across the country were not
affected by these significant events,
energy costs are rising, including
increases in gas pricing and electricity
transmission and distribution costs.
We are focused on restoring long-
term confidence in energy security
and improving affordability. The
sector is having to contemplate a
future that cannot rely on gas as a
fuel to the extent it has in the past.
A group of large electricity suppliers,
including Meridian, have signed an
agreement (subject to Commerce
Commission review) that will improve
the operational resilience of the
Genesis-owned Huntly power station
and provide continuing generation
capacity along with the necessary
fuel. Maintaining a secure electricity
supply is what we must do as we find
ways to use more hydro generation
and accelerate the deployment of new
renewable projects to displace the use
of coal in the electricity market.
It was a challenging decision
for us to enter into the Huntly
arrangements given our commitment
to decarbonisation and renewable
energy. We believe extending the
life of Huntly and building a thermal
fuel reserve is in the best interests of
Kiwi homes and businesses, and the
Aotearoa New Zealand economy in
the short to medium term.
The Huntly arrangements alongside
additional use of this country’s hydro
capacity are actions that will help make
Aotearoa New Zealand’s electricity
system more resilient and affordable.
An affordable, secure and highly
renewable grid will enable future
economic prosperity - allowing the
country to take the opportunity to
create and market green products
internationally.
DIVIDEND DATES
5 September 2025
Record date
4–10 September 2025
Dividend Reinvestment
Plan price determination
period
23 September 2025
Dividend paid and
new shares issued
under the Dividend
Reinvestment Plan
6
MENUCHAIR AND CHIEF EXECUTIVE REPORT
MERIDIAN ENERGY INTEGRATED REPORT 2025
Grow renewable
generation
Our development
programme accelerates
Our 7 in 7 (7 projects in 7 years)
renewable build programme
has advanced with the first two
milestones met - the 176MW
Harapaki Wind Farm is now fully
operational and the 100MW battery
energy storage system (BESS) at
Ruakākā Energy Park near Whangārei,
was commissioned in May 2025. This
BESS lifts system capacity and allows
us to reintroduce stored power into
the grid at peak demand times.
In addition, we have five wind, solar
and battery projects consented –
another BESS in the Manawatū, a
wind farm at Mount Munro in the
Wairarapa, a solar farm that will
form part of the Ruakākā Energy
Park, a large solar joint venture
with Nova named Te Rahui and
the first re-powering of an existing
wind farm at Te Rere Hau. We also
have two consents currently under
council review – Swannanoa solar
and Waikato solar.
The Ruakākā Solar Farm was
granted Board approval in March
2025 and early works are now
underway. Planning for Te Rahui is
also progressing well. Financial close
on the joint venture is expected by
early September 2025. Unfortunately,
the timeline for Te Rere Hau has been
revised from August 2025 to mid-
to-late 2026, due to an additional
consent required to relocate an
Airways Corporation facility from
the current site.
We have invested over $1 billion
in the last five years and a further
$2 billion is planned for the next
three years. The projects delivered
so far, and in the next three years,
will deliver almost 2,500GWh of
new annual generation, a 6 percent
increase to the electricity system.
As we progress this development
programme, debate continues over
how large infrastructure projects
should resolve tensions between
local concerns and national benefits.
We accept there are trade-offs to
be made, but we also recognise the
pressing need for these projects and
their significance, both nationally and
locally. At all times, we endeavour
to engage with communities in an
open and transparent way.
Our frustrations over the inefficiencies
of the current resource management
system are well-documented. We
continue to advocate strongly for
more efficient decision-making
around the allocation and use of
natural resources in Aotearoa
New Zealand.
Continuing to focus on ways to
further improve the resource
consenting framework will help
improve security of supply and
provide increased capacity.
Hydro essential to energy security
We've made good progress with the
re-consenting of the Waitaki Power
Scheme. The re-consent application
with Environment Canterbury was
publicly notified in July 2024 and the
project was formally shifted to the
Environment Court. Such a significant
body of water attracts considerable
interest from a wide range of
stakeholders. We have worked with
most of these parties to achieve
rapport, align interests, and address
key impacts for iwi, communities
and other stakeholders.
We have been very clear in our
view that securing access to more
water at existing hydro schemes
is a quick, low-impact and vital way to
strengthen the country’s security of
supply. The role of hydro generation
is changing, and we see it playing a
key role as a firming fuel, supporting
the system in peak periods and when
wind and solar are not available.
In mid-August 2025 we were
delighted to receive confirmation
that the Minister for Infrastructure
had approved our request to have
our application to access contingent
storage at Lake Pūkaki heard through
the fast-track process.
The energy challenges experienced
early in the year reinforce the need for
access to that resource. Rather than
defaulting to carbon-intensive thermal
fuel as a long-term solution, ensuring
feasible access to all available storage
in Aotearoa New Zealand’s largest
hydro lake would release hundreds
of gigawatt hours into the system in
a sustainable and lower-cost fashion.
Partnership on a new level
We always look to set a positive
example with our relationships. Our
agreements with other generators
and energy partners this year have
focused on collective responsibility
and we thank all those who have
engaged in these processes.
One of our most long-standing
partnerships is with the Guardians
of Lakes Manapōuri, Monowai and
Te Anau and we were pleased to
work with them to adjust the Waiau
operating guidelines that will improve
flexibility in Lakes Te Anau and
Manapōuri. This reinforces that
partnerships and engagement
in various forms remain critical if
we are to fulfil future demand.
7
MENUCHAIR AND CHIEF EXECUTIVE REPORT
MERIDIAN ENERGY INTEGRATED REPORT 2025
Deliver cleaner,
cheaper energy
Shifting value to our customers
It’s been a busy and significant year
for our retail team as we transform the
operating model to deliver digital and
data-driven customer experiences.
We removed and replaced most of the
legacy roles and reconfigured not just
how our people work but how they
engage with customers.
It is a huge undertaking but
streamlining decision-making has
helped us to be more responsive to
customer needs, including dealing
with affordability issues. While
Meridian’s residential energy price
increases are modest again this year,
we know that the increase in lines and
transmission charges that form part
of the overall bill are going to impact
all customers. Our new products
will give customers more choice
and flexibility. Ultimately, we plan to
create a variety of products that help
customers work with us to manage
their electricity use and budget.
We also rolled over pricing for
commercial and industrial customers
coming off contract during last
August’s elevated wholesale prices.
This helped protect these businesses,
the people they employ and the
contribution they make to Aotearoa
New Zealand’s economy.
Flick joining us
This year our mass market volumes
and market share grew across both
Meridian and Powershop brands
despite lower market demand.
The conditional acquisition to acquire
the assets of Flick Electric, signed late
in May 2025, adds to our customer
base, reinforcing our position as the
fourth largest retailer by customer
numbers. Our business model is built
on growth as a driver of customer
value, and this year’s performance
reflected that. Even with changes
to how our retail team operates,
we exceeded our growth targets
and remain on track to achieve
our medium-term objectives.
Interest in RECs stays high
Interest in renewable energy
certificates (RECs) has stayed strong.
In the past year, 250 companies have
purchased more than 1,600 gigawatt
hours (GWh) of RECs from Meridian,
an increase of 94 percent from the
last financial year. By purchasing
RECs, business customers are able to
directly match the volume of energy
they consume with our 100 percent
renewable generation, meaning
they can offset their RECs against
their Scope 2 emissions. In addition
to environmental benefits, RECs also
fulfil a strong social function. We have
committed to invest 100 percent
of the net proceeds from the sale
of RECs into our community and
business decarbonisation funds. This
year we committed $1.5 million to
decarbonisation projects nationwide.
Proud of our Energy
Wellbeing Programme
The Energy Wellbeing Programme
has continued to invest in promoting
equitable access for those struggling
with energy hardship. The goal is to
support 5,000 of our most vulnerable
households via this programme
by FY28. This year, over 1,700
households have been supported
and we’ve assisted 3,185 households
in the programme in total. We know
that Kiwis will be facing financial
challenges given wider cost pressures,
and we will continue to monitor
how we can make a meaningful
and sustainable difference for
those in hardship.
ABOVE
Providing our customers with smart, digital service solutions.
8
MENUCHAIR AND CHIEF EXECUTIVE REPORT
MERIDIAN ENERGY INTEGRATED REPORT 2025
Deliver operational
excellence
Tough operating environment
affects financials
During the year, our hydro storage
was heavily affected by two
consecutive record low (one-in-90
year) inflow periods – last winter
and again through the most recent
summer. Periods of unseasonably
low wind and the country's declining
gas production also challenged
electricity generation. The industry
worked through these challenges
and, at Meridian, we exercised our
largest demand response option with
NZAS and wrote hedge contracts
to support gas purchases from
Methanex at significant cost.
Operating cash flows of $318 million
for the year ending 30 June 2025 are
down $349 million (52 percent) from
the previous year. Net profit after tax,
which also reflected the changed
treatment of the main NZAS contract,
was a $452 million loss compared with
a $429 million profit in the previous
year. EBITDAF
2
was down 32 percent
to $611 million and underlying
net profit
3
fell by 84 percent to
$56 million. Both of these measures
are non-GAAP measures.
2 Earnings before interest, tax, depreciation, amortisation, unrealised changes in fair value of hedges, impairments and asset related adjustments.
3 Net profit after tax, adjusted for the effects of changes in fair value of unrealised hedges, electricity option premiums and other non-cash items and their tax effects.
Long-time investors in Meridian
will know that Te Tai Ao (Nature) does
not always play a kind hand and that
exercising those insurance products,
while rare, is necessary to maintain
secure supply to customers. They will
also know that we have the balance
sheet structured and maintained to
manage the impact of such conditions.
While the FY25 earnings reflect low
generation and substantial insurance
costs, the overall financial position
remains strong.
Recognising this strength, the
Board was able to declare a final
ordinary dividend of 14.85 cents
per share. Combined with the
interim dividend, this brings the
total ordinary dividends declared
in FY25 to 21.00 cents per share.
This level of dividend has allowed
us to maintain our balance sheet
strength, with a Stable/BBB+ credit
rating and the capacity to continue
to invest significant capital in new
generation.
The significant future investment
planned for new renewable
generation, currently targeting up
to 20 new projects by 2050, will
require continued balance sheet
strength. While rare, severe droughts
will occur in the future. When they
do, the Board may review the level
of dividends at the time. This will give
the Board flexibility, while maintaining
our existing credit rating.
Important gains for generation
Two years ago, we set a goal to deliver
200MW of restored and 300MW of
new capacity from our generation
portfolio by the end of FY28. Every
MW restored or added counts
positively towards our target, while
further outages set us back. We've
faced challenges with further plant
failures, but despite these setbacks
we have achieved net 8.3MW of
restored capacity and 111.6MW of
new capacity toward our goal and
markedly decreased the potential
for future unscheduled outage days.
Getting our transformers back online
and eliminating or deferring scheduled
outages has helped us avoid taking
capacity out of the system.
Misplaced focus on
short-term price alone
The dry periods this year have led to
heightened media, regulatory and
political scrutiny of the sector. The
Electricity Authority (EA) has proposed
new obligations on generator retailers
to sell hedge contracts to third parties
on terms comparable to notional
internal agreements, in an effort to
encourage more competition.
Our view is that the issues this
year were significantly driven by
increasingly limited gas supplies and
that there is no magic solution that
will supplement them in the short
term. Our business and others must
invest in new renewable assets to
replace the fossil-fuelled generation
that relied on that gas. It will take time
to do this and no change to either
the electricity market or our business
structure will fix that problem.
We've continued to engage with
officials and Ministers to emphasise
that this is primarily a supply-side
issue - not a competition one - and
that wholesale high prices during this
period provided important signals to
the market to bring on new supplies
and ultimately ensure that demand
continued to be met.
...the Board has declared
a final ordinary dividend
of 14.85 cents per share.
9
MENUCHAIR AND CHIEF EXECUTIVE REPORT
MERIDIAN ENERGY INTEGRATED REPORT 2025
The contracted prices most customers
enjoy in Aotearoa New Zealand
rank favourably against other
OECD country comparisons.
We are fully committed to
competitive improvements that
make a difference to customers.
We note that signficant structural
changes at this point are more
likely to impede rather than assist
the sector in addressing current
challenges. Solving this country's
declining gas production cannot
be resolved immediately. In the
meantime, the sector has rallied
around a solution that focuses on
maintaining capacity at the Huntly
power station. While a range of
solutions will be needed, ultimately
investment in new renewables will
solve this structural challenge in
time. As such, the focus should
be on supporting new builds to
progress as quickly as possible.
We're also focused on supporting
customers and providing price
certainty through what are tough
economic times with significant
cost pressures. Our customers
underpin our business and enable
us to support economic recovery
in this country, so their success is
our success.
A digital business
puts customers first
Increasingly, our decision-making
and ways of working are informed
and influenced by data and artificial
intelligence (AI). As customers come
to routinely expect smart digital
service experiences, we are upgrading
systems and work plans to provide
them with a great service at lower cost.
As the retail team begins its rollout
of the new Kraken platform and
customer app, we will change how
we engage with customers and how
we track and support them to ensure
they save energy and money.
More customers are taking up our
Industrial Demand Response product
providing them with value for the
flexibility they offer the energy system
at times when they can lower
their electricity use. Similarly, our
generation teams are working on
digital technologies that better
target predictive, as opposed to
deterministic, asset management
while reducing generation asset
downtime. When the project to
replace the SCADA (System Control
and Data Acquisition) system is
complete, it will improve decision-
making by automating tasks and
bringing new information to bear.
ABOVE
Providing our customers with smart, digital service solutions.
10
MENUCHAIR AND CHIEF EXECUTIVE REPORT
MERIDIAN ENERGY INTEGRATED REPORT 2025
Grow capability
and culture
Evolving our approach
to people and planet
Big changes to the structure of
the retail business were critically
important before we introduced
a new retail operating platform.
The changes were completed by
December 2024 and since then
the retail team has been busy
embedding new ways of working
and starting the transition from
the Flux platform to Kraken.
Those changes have been difficult
for our people as, along with creating
new roles and opportunities, they
also resulted in redundancies both
within retail and at Flux.
To help protect people’s wellbeing
during these times, and to support the
broader organisation, we instigated
a revised wellbeing strategy that
balanced concern for the individual
with a focus on team and collective
psychological health. We also initiated
a new approach to leadership that
recognised how people can and
should aspire to leadership in a
range of ways.
Refining how we
measure impacts
This year we conducted a review of
our Half by 30 emissions reduction
target. Scope 1 and Scope 2 targets
remain at 50 percent by FY30, but the
target for Scope 3 emissions (those
emitted by supply chain partners)
has been revised. Halving these by
FY30 is now impossible given the
amount of sector growth the country
is planning and the speed at which
this needs to happen.
From 1 July, we will begin using an
intensity-based target for Scope
3 emissions. This involves using
a target based on dividing these
supplier-based emissions by the
total installed capacity of Meridian’s
generation assets. It allows Meridian
to work towards a target that means
there will be less emissions for each
MW capacity installed. Meridian is
targeting a reduction of more than
51 percent by 2030 and will start
reporting on this from FY26.
The refined Scope 3 goal remains
credible, ambitious and science-
based, and we await independent
verification from the Science Based
Targets initiative. But we have to
be pragmatic and allow ourselves to
continue to build new renewable assets
and increase generation capacity.
Ranked #1
Pleasingly, Meridian was ranked #1
in the electric utilities sector in the
Dow Jones Best-in-Class Sustainability
Asia Pacific Index, an independent
global S&P Index that ranks our
ESG (environmental, social, and
governance) performance against
like companies in the region. This is the
tenth consecutive year we have been
included in the index, and this gives
investors, customers and communities
confidence that we are leading in
sustainable practices. The next goal
is to elevate our ranking to the global
index, which would consolidate
our standing as a climate-focused
business and attract a new cohort of
international institutional investors to
the share register.
Changes to our Executive Team
The Board has remained unchanged
this year. Directors’ extensive and
varied sector experience has been
invaluable in helping navigate the
different challenges and we thank
them for the range of perspectives
they have applied to different
situations throughout the year.
A number of changes in our Executive
Team were announced during the
year. Mike Roan started his tenure
as Meridian's new Chief Executive
and Mandy Simpson has been
appointed to Mike's previous role
of Chief Financial Officer from
1 September 2025. The merging of
the Wholesale Operations function
into the Generation team has seen
Chris Ewers leave the Executive
Team to take up a new role in the
company as Electricity Security
Manager, reporting to Tania Palmer.
Rory Blundell has been appointed
to the newly created role of General
Manager, Strategy and Portfolio and
Chief Information Officer Bharat
Ratanpal has returned from his
secondment as Interim CEO for the
Flux business. Sincere thanks to Edna
Maddocks who stepped in during
that time to lead the ICT team through
another active year. Grateful thanks
also to Helen Peters who has acted
as Chief Financial Officer to the end
of the financial year.
The end of the financial year marked
the end of Neal Barclay’s tenure
as Chief Executive. Under Neal’s
exemplary leadership, Meridian has
grown a renewable development
pipeline that will double the size
of the current asset base over time.
We’ve refocused our business
around customers while significantly
growing that business and built
valuable relationships with a variety
of stakeholders. Importantly, Neal led
the team that secured a sustainable
20-year contract with NZAS.
11
MENUCHAIR AND CHIEF EXECUTIVE REPORT
MERIDIAN ENERGY INTEGRATED REPORT 2025
The Board and Executive Team would
like to thank Neal for his commitment
to growth and sustainable practice
and for anticipating how Meridian
could play its part in delivering long-
term value for customers, investors
and Aotearoa New Zealand. We wish
him all the very best for the future.
Our sights set on a secure,
affordable, sustainable future
As Aotearoa New Zealand looks to
improve energy security, Meridian
will flourish due to our pipeline of
renewable development options
that will help meet the expected
growth in electricty demand.
The transformation of our retail
business this year will be a game
changer in the long run, not only for
our business but more importantly in
how the electricity sector supports
and interacts with customers.
Our brands are catching the eye
of customers looking for a service
that makes sense to them through
fair pricing and demand response
opportunities that expand their choices.
It has been an uneasy year for our
investors. The financial pressures
we faced reinforce the need for
new thinking if we want Aotearoa
New Zealand to be a competitive
economy globally. We’ve emerged
with a development programme
ahead of schedule, our assets
operating strongly, our retail team
revamped, and our balance sheet
resilient, enabling both continued
investment for growth and returns
for shareholders.
The Board and Executive Team
thanks everyone who is on this
journey with us – our customers,
the communities in which we work,
our partners and our investors.
Thanks too to our talented and
hard-working teams for helping
us deliver clean energy for a fairer
and healthier world.
A powerful future is
developing, thanks to you.
Ngā manaakitanga
LEFT
Neal Barclay and a student from Te Pōhue School
officially opening Harapaki Wind Farm.
12
MENUCHAIR AND CHIEF EXECUTIVE REPORT
MERIDIAN ENERGY INTEGRATED REPORT 2025
Making a difference
Meridian Energy is one of Aotearoa New Zealand’s largest organisations.
We generate around 30 percent of the country’s electricity and provide energy to around 17 percent
of the country’s households and businesses through our Meridian Energy and Powershop brands.
Highlights
FULL YEAR DIVIDEND FY25 OPERATING CASH FLOW
21cps
$318m
TOTAL MARKET CAPITALISATION FY25 EBITDAF*
$15.4b
$611m
* EBITDAF is a non-GAAP financial measure of earnings before
interest, tax, depreciation, amortisation, unrealised changes in
fair value of hedges and asset related adjustments.
RUAKĀKĀ
BESS NOW OPERATING
WAITAKI
POWER SCHEME RECONSENT
HEARING FINALISED
RETAIL GROWTH
DOUBLE-DIGIT
GROWTH FROM OUR
TWO RETAIL BRANDS
SCOPE 3
EMISSIONS TARGETS
REVISED
13
MENUOVERVIEW AND STRATEGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Our strategy
Our purpose – clean energy for a
fairer and healthier world – means
that we are committed to contributing
meaningfully to the transition to a
net-zero and climate-resilient future.
Meridian’s business model focuses
on creating short, medium and
long-term value by generating
electricity from renewable energy
sources (wind, water and sun) and
retailing electricity to customers.
Our strategy describes our ambition
across four priorities – to develop
more renewable generation, to
provide cleaner and cheaper energy,
to operate with excellence and to
grow our capability and culture.
These actions will see us play our part
in advancing Aotearoa New Zealand’s
transition to a low-carbon economy.
CLIMATE-RELATED DISCLOSURES
bit.ly/3IeqYTr
Climate-related risks and
opportunities for Meridian are
driven by three factors – physical
impacts such as storms and floods,
more gradual climatic changes,
and the economic and societal
transitional effects of the world
moving towards a lower-carbon
future. Our climate-related disclosures
provide comprehensive analysis of
the risks and opportunities for
Meridian’s business as a result of the
transition to a low-carbon economy
in Aotearoa New Zealand.
WATER
SUN
WIND
14
MENUOVERVIEW AND STRATEGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Our strategy map
TE KAUPAPA
OUR PURPOSE
Clean energy for a fairer and healthier world
TE RAUTAKI
OUR STRATEGY
Expertly navigate the energy transition for Aotearoa New Zealand
TE KAUPAPA MATUA
OUR PRIORITIES
Grow renewable
generation and
firming capacity
Deliver cleaner,
cheaper energy
Deliver operational
excellence
Grow capability
and culture
TE AROTAHINGA
OUR FOCUS
To speed our
path to a resilient,
net-zero future
Through innovation
that unlocks value
for customers
So everything we
do aligns to deliver
on our goals
Because how we do
the mahi is what makes
the real difference
• Accelerate Aotearoa
New Zealand’s
decarbonisation by
delivering scale energy
projects at pace:
–Build renewable
generation options.
–Deliver on our 7 in 7.
–Secure long-term
access to water.
–Accelerate electrification
of transport and
process heat.
• Grow system flexibility:
–Grow our dispatchable
MW capacity.
–Bring dispatchable
customer capacity
to market.
TE MAHI
OUR KEY
INITIATIVES
• Develop an innovation
culture that delivers
digital, and data driven
customer experiences.
• Expand the energy
product set to unlock
the value of transport
electrification, process
heat and demand flex.
• Continue investment
in energy hardship and
community programmes
to promote equitable
access to the benefits
of the energy transition.
• Advocate for policy
settings to promote
climate action and support
New Zealanders through
the energy transition.
• Build operational flex and
agility while sustaining
excellent asset productivity.
• Implement modern data
and digital systems to
promote collaboration,
operational efficiency,
innovation and data-
driven decisions.
• Grow a diverse, inclusive
and skilled workforce that
reflects the country we live in.
• Nurture leadership
capability to support the
cultural and digital maturity
of a future Meridian.
• Develop our understanding
of the Māori world view
to help build long-term
relationships with tangata
whenua and create better
outcomes for all.
• Grow safety leadership
maturity as we build into
the energy transition.
• Foster sustainability
culture and leadership
that benefits people and
planet, inspires climate
action, and attracts investors.
15
MENUOVERVIEW AND STRATEGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Tough year, but we’ve made progress
Grow renewable
generation and
firming capacity
• Harapaki Wind Farm and Ruakākā BESS now operational
• Early works underway at Ruakākā solar
• Five consented options – Manawatū BESS, Mount Munro wind, Ruakākā solar, Te Rere Hau wind and Te Rahui solar
• Business cases approved for Ruakākā solar and Te Rahui solar, Te Rere Hau Wind Farm re-powering decision in 2026
• Waitaki re-consent hearing in late 2025
• Two more projects currently in consenting processes
Deliver cleaner,
cheaper energy
• Double-digit growth of 10% in customer connections
• 46 fast DC public charge points added to the Zero public charging network
• Over 1,700 households welcomed into our Energy Wellbeing Programme
• Over 16,000 customer connections added to Smart Hot Water flex product
• Community Decarbonisation Fund distributions of $1.5m in FY25
Deliver
operational
excellence
• 112MW of new capacity available from existing hydro assets
• Commenced digital generation (DigiGen) programme
• Credit rating maintained
• Dividend maintained
• Healthy progress of data projects across the business
Grow capability
and culture
• Major restructure in our retail business was a key focus of the year
• Top 25% employee engagement
• Revamped wellbeing programme
• Twelfth year as principal partner of KidsCan and ninth year as national partner supporting
DOC’s Kākāpō Recovery Programme
• Ranked #1 for our sector in the Dow Jones Best-in-Class Sustainability Asia Pacific Index
• Revised Scope 3 targets for Half by 30
KEY
On trackPotential issuesSignificant issues or delays
16
MENUOVERVIEW AND STRATEGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Grow
renewable
generation
01
STRATEGIC PRIORITY
IMAGE
A visual simulation of
our Ruakākā Solar Farm,
near Whangārei Heads.
17
MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Why read this section
Read this section to better understand the
developments in our renewable generation
pipeline, changes in the wider market, and
our progress in delivering clean energy for
a fairer and healthier world.
MATERIAL TOPICS
RENEWABLE ENERGY
GENERATION
NGĀ TUKINGA O TE AO
TŪROA – THE IMPACTS ON
THE NATURAL WORLD
AFFORDABILITY
CLIMATE-RELATED
IMPACTS
PUBLIC TRUST
IN THIS SECTION
Net zero is not a
straight path, but it
is the right road
A secure, sustainable
and affordable grid
will take time
Delivering beyond 7 in 7
Government policy focus
Hedging
Re-consenting the
Waitaki Power Scheme
Case study: Powerful
progress at Ruakākā
energy park
18
MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Progress against strategy
To speed our path to a resilient, net-zero future
OUR KEY INITIATIVESOUR FY25 TARGETSTRAFFIC
LIGHT
PROGRESS
ACCELERATE AOTEAROA NEW ZEALAND’S DECARBONISATION BY DELIVERING SCALE ENERGY PROJECTS AT PACE
Build renewable
generation
options
Harapaki and Ruakākā BESS delivered
Commence construction of Ruakākā solar farm
• Harapaki (July 2024) and Ruakākā BESS (May 2025) delivered
• The Ruakākā solar farm achieved Board approval and early works underway
Deliver on
our 7 in 7
Gain three consents
Lodge three consents on further 7 in 7 options
Achieve FID on two renewable projects
• Manawatū BESS, Waikato solar, Swannanoa solar consents lodged so far this year
• Five consented options: Manawatū BESS, Mt Munro wind, Ruakākā solar, Te Rere Hau
wind and Te Rahui solar
• Ruakākā solar and Te Rahui investment decisions approved
GROW SYSTEM FLEXIBILITY
Secure long-term
access to water
Waitaki consent application submitted• Waitaki re-consenting process underway with Environment Court hearing expected
in late 2025
Grow our
dispatchable
MW capacity
173MW from new transformers at Manapōuri
and West wind
Hydro generation unit up-ratings and constraint
removals totalling 50–60MW
• Leased West Wind transformer installed and integrated at site November 2024,
returning a further 45MW in Q2 in time for winter 2025
• Waitaki upgrade project commenced
• 8MW capacity uplift achieved at Aviemore and another 4MW at Ōhau B and C
KEY
AchievedPartially achievedNot achieved
19
MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Net zero is not a
straight path, but
it is the right road
To achieve net-zero emissions just
a quarter century from now, the
will, the means, and the regulatory
framework must work together. Net
zero will require billions of dollars in
funding, collective effort, and long-
term partnerships to maximise current
assets and develop a renewable
generation pipeline. Since 2013, we
have invested over $2 billion in capital
expenditure to help grow Aotearoa
New Zealand’s renewable energy.
But decarbonising Aotearoa New
Zealand through electrification
will also require flexibility and
responsiveness as we transition.
Guided by our strategy, we are
committed to working alongside
others to deliver sustainable, secure,
affordable energy for everyone.
A secure, sustainable
and affordable grid
will take time
For more than a decade, electricity
use across Aotearoa New Zealand has
been steady at around 40 terawatt
hours (TWh) per year. But climate
change, a push for electrification,
and the retirement of traditional
thermal backup generation are all
putting pressure on the existing
infrastructure.
There were times during this past
year when very low water, wind and
sunshine levels and poorly-signalled
gas shortages meant the sector
had to secure additional thermal
sources to keep energy flowing.
According to the Ministry of Business,
Innovation and Employment (MBIE),
New Zealand’s natural gas supply is
running out faster than previously
thought. It had been expected that
annual gas production would fall
below 100 petajoules by 2029, but
revised forecasts indicate that level
will be reached by next year.
Working with others to deliver
a resilient energy system
The broader system is looking
better but the issue of Aotearoa
New Zealand’s dwindling gas reserves
remains. As a result, there’s less ability
to back up the power grid through
firming capacity. Firming is when the
system uses thermal fuel to keep the
grid stable when we can’t rely on
wind, solar or hydro power. We are
confident this will be resolved in time
but the sudden loss of backup thermal
generation cannot be immediately
and directly replaced by renewables.
To secure more flexibility and give
Meridian the leeway to improve how
we manage dry-year risk, we have
contractual (or swaption) arrangements
with other generators, large-demand
response agreements with NZAS,
and permission to draw extra water
from specific sites when we need it.
This year, we have worked closely with
community groups and the Guardians
of the Lakes to adjust guidelines for
Lakes Te Anau and Manapōuri around
use of storage. These changes will
deliver an extra 45GWh of energy
from the Manapōuri Power Scheme
each year. The agreement allows for
more flexible drawdown rates once
the lakes reach lower operating levels,
so we can continue generating when
lake levels are low.
Last winter, we underwrote agreements
with Methanex to support electricity
generation the country needed and
we called on all aspects of the NZAS
demand response agreement. We
also negotiated agreements with
other gentailers to ensure thermal
capacity remains available to ensure
long-term security of electricity supply.
In August 2024 and May 2025, we
entered into agreements with Contact
Energy to give the country access to
some gas from Methanex should it
be needed. The overarching strategy
to deliver a secure, affordable and
sustainable energy system remains the
right path. As the sector builds more
new renewable energy and secures
more flexibility into the system, the
current energy transition issues we
are responding to now will dissipate.
In the meantime, Meridian and the
sector have taken important steps to
support security of supply for winter
2026 and beyond by replacing gas
as a peaking fuel. In July, Meridian,
together with Contact, Mercury and
Genesis, completed an agreement
that will support Genesis to improve
the operational resilience of its Huntly
power station and increase available
generation capacity and thermal
fuel to the market in the form of a
Strategic Energy Reserve. If approved
by the Commerce Commission the
agreement would be in place from
1 January 2026.
...since 2013, we have invested over $2 billion
in capital expenditure to help grow Aotearoa
New Zealand's renewable energy.
20
MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Using our flexible demand
response agreement with NZAS
Last year, we signed a groundbreaking
new contract with NZAS. The package
included a long-term, fixed-price
contract for electricity and a significant
demand response agreement with
four levels of demand response
options, ranging from 25MW to
185MW for critical dry-year cover.
In July 2024, we called for the
highest level of demand response
(185MW) as part of our response
to extreme weather conditions.
In February 2025, the two parties
agreed that NZAS would provide
50MW per hour of demand response
for winter 2025. Effectively, this
reduced the contract quantity
supplied under the core agreement
between Meridian and NZAS.
When long-term conditions
improved, we agreed in June 2025
that NZAS would ramp up production
from 16 June 2025 to bring the
current demand response to an
early end, targeting a completion
date of 28 August 2025.
As part of the overall agreement, we
will next be able to call for demand
response Option 3 (100MW) or
Option 4 (185MW) from April 2026,
should conditions warrant such a call.
Adding new power
purchase agreements
We signed a power purchase
agreement (PPA) with Harmony
Energy/First Renewables for their
Tauhei Solar Farm, near Te Aroha
in the Waikato. Once completed
in late 2026, the Tauhei Solar Farm
will be Aotearoa New Zealand’s
largest to date, generating 280GWh
of electricity each year. We will
purchase 100 percent of the output
from this farm for its first ten years of
operation. We will also purchase any
early generation prior to full operation
under a separate agreement on the
same terms as the main agreement.
RIGHT
New Zealand Aluminium Smelters,
Tiwai Point, Murihiku Southland.
21
MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Delivering beyond 7 in 7
Our ambitious goal of having seven
large-scale renewable generation
developments underway by 2030
is ahead of target.
In July 2024, the Harapaki Wind Farm
became fully operational, delivering
electricity to 70,000 households.
This calendar year, construction of
Aotearoa New Zealand’s first large-
scale grid battery storage system
(BESS), the Ruakākā BESS, was also
completed inside the project’s
original $186 million capital
envelope. Located south of
Whangārei, the Ruakākā BESS
has a maximum output of 100MW
of electricity and storage capacity
of 200MWh, enough to power
about 60,000 average households
during winter for a two-hour period.
Other achievements this year have
included consent granted for our
90MW Mount Munro Wind Farm
near Eketāhuna, the announcement
of a 50-50 joint venture with Nova
Energy to build the 400MW Te Rahui
Solar Farm at Rangitāiki near Taupō
across two stages, and consent for
a 100MW BESS in Manawatū.
Meridian is also going to re-power
the Te Rere Hau Wind Farm. This
project, also in Manawatū, will produce
around 750GWh of renewable energy
each year and once completed will
generate enough power for 80,000
homes each year.
We have also lodged consent
applications for our Swannanoa
solar project and a solar project
in the Waikato.
Our pipeline of projects amounts
to 5.9GW or 13.9TWh of
development options.
Batteries now included
Not only does the Ruakākā BESS add
a North Island storage asset to our
portfolio and Aotearoa New Zealand’s
electricity system, it also gives us the
ability to smooth out peak periods
by adding to our firming capacity,
it increases energy resilience for
northern New Zealand, and it allows
us to participate in the North Island
electricity reserves market.
The focus has now turned to the
neighbouring 130MW Ruakākā Solar
Farm, where early stage works have
now begun. Together with the BESS,
this forms Meridian’s Ruakākā Energy
Park. With 250,000 solar panels
covering an area the size of 170
rugby fields, the Ruakākā Solar Farm
will be capable of producing up to
230GWh of electricity per year.
Unfortunately, we’ve had to
revise the timing of the Financial
Investment Decision (FID) for the
Te Rere Hau re-powering project
from August 2025 to mid-to-late
2026. The decision reflects the
need for an additional consent to
relocate an Airways Corporation
facility from the current site.
New energy coming
Together, these ten projects
represent 200MW of new battery
storage capacity and potentially over
3TWh of new generation. That's the
equivalent of eight percent of current
national electricity demand. By
2050, we are aiming to complete the
equivalent of 20 sizeable wind farms.
Projections of system demand over
the same period suggest between
50 percent and almost 100 percent
more generation needs to be built
compared to today.
LEFT
Our Ruakākā Battery Storage System
in Te Tai Tokerau Northland.
22
MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
* Includes partial operation of Harapaki Wind Farm
** Includes full operation of Harapaki Wind Farm
*** Hydro capacity has been restated for each previous year to reflect the installed
capacity of Benmore and Manapōuri stations. In all previous years, a 50MW
lower operating capacity at the Manapōuri station was reported. In addition,
in FY24 a 12MW higher operating capacity was incorrectly reported for the
Benmore station, resulting in a 38MW restatement for that year. Restated
hydro installed capacity is 2% higher in each of the years restated.
**** Wind capacity restated to include Brooklyn Wind Turbine
23
MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Renewable development pipeline
5.9GW (13.9TWh) of development options
3.0GW secured, 2.9GW in advanced prospects
FULL POWER (INDICATIVE)
20262027202820292030203120322033
Wind
TOTAL
1.9GW
Mt Munro 90MW
Te Rere Hau 170MW
Waiinu 350MW
Manawatū 200MW
POST 2033
Secured
options
70MW
Advanced
prospects
1,000MW
Solar
TOTAL
3.9 GW
Tauhei 200MW
PPA
Ruakākā 130MW
Te Rahui 200MW
STAGE 1
Waikato 100MW
Swannanoa 200MW
Western Bays 250MW
STAGE 1
Manawatū 100MW
Canterbury 150MW
Waiinu 200MW
Secured
options
450MW
Advanced
prospects
1,950MW
Battery
Storage
TOTAL
0.1GW
Manawatū 100MW
AUGUST 2025
KEY
Wind
Solar
Battery
Consented
Planned
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MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Government
policy focus
Energy security and affordability remain
sensitive issues for the nation and,
understandably, for the Government.
To address energy security, the
Government has reversed the oil and
gas ban. They have also introduced
their Electrify NZ plan, which aims
to make it easier and cheaper
to consent, build and maintain
renewable electricity generation.
We welcome the Government’s
encouragement of more reliable gas
supplies and a more streamlined
consenting process. We believe a
streamlined consenting process can
achieve a healthy balance between
localised effects and community
views and delivering the national
and climate advantages of large-
scale renewable electricity projects.
The Government has also confirmed
an ongoing commitment to expanding
EV infrastructure, saying they plan to
significantly increase the number of
public electric vehicle chargers across
the country. Given the investment
we are making ourselves in rolling
out our Zero charging infrastructure
network, we welcome this initiative
to accelerate the rollout of public
charging. In our view, it’s a critical step
to electrifying Aotearoa New Zealand’s
transport sector.
ETS confirmed as primary tool
The Government’s second Emissions
Reduction Plan confirms that they
view the Emissions Trading Scheme
(ETS) as the primary vehicle to reduce
emissions through to 2030. Recent
advice from the Climate Change
Commission (CCC) noted that surplus
ETS units had reduced more quickly
than anticipated and are forecast
to reduce further in coming years.
This will help the Government to
increase the number of units it
auctions into the scheme between
now and 2030. The CCC also noted
that the Government’s commitment
to a credible ETS as the main tool for
reducing domestic emissions has
seen confidence in the ETS improve
(while remaining fragile).
While we are pleased to see that
lift in confidence, we don’t believe
the current settings are sufficient
to deliver the financial incentives
needed for long-term change. As a
result, we’ve paused our Process Heat
Electrification Programme this year
with 14.5GWh converted. A solution
may lie in working with the banks to
review whether sustainable finance
could unlock and accelerate change.
Price increasingly
the talking point
The Government has initiated a review
to look at whether current regulations
and market design support economic
growth and access to reliable and
affordable electricity. The Ministerial
Review findings are yet to be released.
Context is really important and
Aotearoa New Zealand's electricity
prices - for both homes and
businesses - compare favourably
with other developed countries,
ranking us within the top 10 in the
OECD. And as more new renewable
assets come online, prices will trend
downwards. This outcome will
happen if the Government maintains
a stable market environment for
companies like ours to invest in.
The Strategic Energy Reserve will
help the country diversify away
from its reliance on a dwindling and
unreliable gas supply and, together
with the new renewable projects
coming online, will keep a downward
pressure on prices. The agreement
demonstrates the value of having
large companies that can work
together in the national interest.
What is working against that trend,
from an affordability perspective, is
the five years of significant increases
in regulated lines and transmission
charges that the Commerce
Commission signed off last year.
The country needs new and reliable
firming fuel infrastructure as demand
for electricity grows. The cost of that
is driving upwards pressure on what
customers are paying each month.
In the meantime, we’re working hard
to reduce our customers’ overall
energy bills with the levers we have.
We’re aiming for greater efficiency
in our business and we’re delivering
new and better products to allow our
customers to reduce energy use and
energy costs.
Questions about competition
As noted, last winter's tight supply
conditions have led to heightened
media, regulatory and political
scrutiny of the sector. In response,
the Electricity Authority and the
Commerce Commission formed
the joint Electricity Competition
Task Force to investigate a range of
measures to increase competition.
Amongst them were proposals
termed 'level playing field measures'
which sought to place obligations
on generator retailers to sell
hedge contracts to third parties on
comparable terms to notional internal
agreements.
Competition in both the retail and
wholesale markets helps drive efficient
prices, high standards of customer
service, and the development of
innovative products. We agree that
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MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
greater competition in retail and
wholesale markets will deliver long-
term benefits to consumers and we
will help the Electricity Authority
develop and implement any
reforms to benefit customers.
In our submission to the Electricity
Authority on this issue, we suggested
a number of important amendments
to what they propose to deliver for
customers:
• Allowing generator-retailers to
assume the notional internal hedge
books they put in place have been
built up over time.
• Assessing the viability of a generator-
retailer’s internal business units
over a commercially realistic
timeframe.
• Providing for the non-discrimination
obligations to apply only to actual
physical participants in the Aotearoa
New Zealand electricity market.
We also think it’s important to
consider how vertical integration
has served – and continues to
serve – the interests of Aotearoa
New Zealand consumers.
Vertical integration is a business
structure that both generates and
retails electricity. Anyone can choose
to adopt the same business structure
and it is common in electricity
markets around the world.
4 Electricity Authority Te Mana Hiko, Market options were available to large energy users in winter 2024, October 2024
5 Electricity Authority Te Mana Hiko, Review of winter 2024, April 2025
Vertical integration allows businesses,
like Meridian, to manage the volatility
of New Zealand's wholesale spot
market on behalf of our customers,
providing them with long-term
price stability. A report by former
Electricity Authority Chief Executive,
Carl Hansen found that household
power bills would have been
$460-570 higher in 2024 without
price smoothing by integrated firms
like Meridian. This equates to $920
million to $1.14 billion per annum
nationally. The ability of vertically
integrated firms to manage wholesale
price risk also helps bring down
their cost of capital, allowing for
more efficient investment in new
electricity generation. While we
will always support reforms which
deliver benefits to consumers, we
also think careful consideration is
warranted before making substantive
changes to existing and efficient
operating models.
In the face of ongoing questions
about the retail market, we have
pushed on with launching new
retail products and lifting our new
connections because we believe
service and choice are good for
our customers.
Hedging
Trading conditions this year have
been particularly volatile which has
led to some controversy, not just over
trading prices but also access to, and
use of, risk protection mechanisms
such as hedges.
Hedges are designed to smooth out
intermittency caused by lack of wind,
water or sun, a shift in transmission
capacity, or a supply shortage that
could lead to a rapid increase in
wholesale prices. They work like a
counterbalance to spikes in market
prices. They should add predictability
to what participants can expect to pay.
They have been the subject of intense
discussion this year particularly as
some of our existing hedge contracts
could not be relied on.
The tight market conditions of July
and August 2024 affected large
industrial consumers of electricity
in different ways. While most chose
to hedge in advance and insulate
themselves against the impact of
wholesale market price volatility,
some chose not to. Media coverage
highlighted high wholesale electricity
prices as a cause of their financial
difficulties and, in some cases, closures.
A review by the Electricity Authority
4
found that all the industrial consumers
who turned down or halted
production in winter 2024 – and who
cited high electricity prices as a cause
– had access to hedge contracts at
prices below those available on the
ASX market at the time. A separate
Electricity Authority review of winter
2024
5
found that most electricity
consumers, including all residential
households, were sheltered from
high prices through retailer hedging,
and that electricity generators did
not make larger margins from higher
prices. The Authority also emphasised
that market participants retain full
responsibility for making decisions on
their level of exposure to spot prices,
and for managing that exposure on
an ongoing basis.
While it may be convenient to
blame the electricity market or wider
economic stresses, our focus should
be on deploying new renewable
developments as quickly as possible,
maximising demand flexibility
through arrangements such as
Meridian's agreement with NZAS,
and getting more out of our existing
hydro, wind and solar generation.
In the meantime, we have committed
to supporting large customers with
longer-term contracts that can take
the sting out of short-term prices.
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MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Re-consenting the
Waitaki Power Scheme
We have made good progress with
the renewal of consents that are
intrinsic to how we do business.
The Waitaki Power Scheme is
Aotearoa New Zealand’s largest
renewable energy hydro scheme.
It consists of eight power stations,
running from Lake Tekapo/Takapō
to Lake Waitaki. The scheme
generates around 16 percent of
the country’s electricity needs.
We own and operate six of these
stations, making this a significant
part of our generation portfolio.
Existing consent conditions were set
to expire in April 2025, but will now
stay in place until the re-consenting
application has been completed
and all appeals addressed.
In July 2023, we submitted
an application to Environment
Canterbury to re-consent the
scheme for an additional 35 years.
In our application, we specifically
sought to maintain the existing
consent conditions.
The focus throughout this year
has been the advancement of
our application using the direct
referral mechanism in the Resource
Management Act (RMA) to the
Environment Court. Through
discussion and mediation, we have
now reached a point where only one
party is still seeking to participate
in the Environment Court process
for material changes. We expect
this matter to be heard by the
Environment Court in late 2025.
The agreements we have reached
with others set out ways for us
to work together to support the
enduring operation of the scheme,
and achieve meaningful long-term
outcomes for the catchment. These
include an initiative to improve
cultural and environmental outcomes
for iwi in their takiwā over the 35-year
period of the consent, and our annual
programme in partnership with
Waitaki rūnaka to move thousands of
tuna (freshwater eels) by trapping and
transferring the ngāeroero (young
elver) upstream from our dams and
moving the tuna heke (adult eels)
back downstream to spawn.
Further, we have agreement with
the Department of Conservation to
replace Project River Recovery with
an upscaled biodiversity mitigation
programme within the catchment
upon final approval of the consents
for the scheme.
Our application to allow access
to more water from Lake Pūkaki,
should conditions warrant it, will
be considered under the fast-track
approvals process.
Our Integrated Report Data Pack
includes more information on
how we withdraw, discharge and
consume water throughout the
Waitaki Power Scheme.
INTEGRATED REPORT DATA PACK
bit.ly/44yppqP
MID 2024LATE 20242025MID 2025LATE 2025
Public notification of submissions
24 JULY 2024
Direct referral request agreed
30 JULY 2024
Submissions closed
21 AUGUST 2024
Environment Court notice of motion lodged
5 DECEMBER 2024
Mediations
APRIL/MAY 2025
Meridian’s evidence filed with court
28 MAY 2025
Environment Court hearing expected
LATE 2025
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MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
CASE STUDY
Powerful progress at
Ruakākā energy park
Our Ruakākā Battery Energy Storage
System (BESS) project kicked off in
late 2021 as the second of our 7 in 7
renewable grid-scale developments.
Now up and running, it’s a great
example of how we are introducing
proven but new-to-New Zealand
technology to lift energy availability.
Construction of the BESS took about
two years and included an extended
commissioning period and testing
for grid compatibility. The site itself
comprises 80 containers, configured
in 20 groups of four containers.
Each group of four is designed to
function as one unit. We needed to
ensure that each container had been
installed correctly, as well as ensuring
that all the groups of containers were
coordinated in a way that the BESS
will deliver the support services to the
national grid that it is contracted to.
“Even though this battery technology
is commonplace overseas, this is
the first grid-scale battery in the
country. Our approach in partnership
with Transpower was to test and
commission the plant in an appropriately
conservative manner. We needed to
understand how each of the elements
and the battery system as a whole
would work in the context of our
national grid and under the demands
of commercial operation,” says Alan
de Lima, Senior Project Manager.
“Not having a generation presence
in the upper North Island has
constrained our ability to help out
when power demands increase
there,” says Alan. “Ruakākā means we
can confidently bring more power
north, which both delivers more
certainty for customers in areas like
Northland and lifts the reach of our
renewable generation when there
is lots of sun and wind.”
The next stage of the Ruakākā Energy
Park is our first solar generation asset
which will operate right next door
and use the electrical infrastructure
already in place for the BESS. Early
stage works are underway and
construction is scheduled to take
18 months. When complete, the
combined output from the Ruakākā
Energy Park will contribute around
200MW into the system.
“The success of the Ruakākā BESS and
the upcoming start of construction
for the solar farm demonstrate real
progress. Sharing infrastructure
between the assets has streamlined
time and cost, and shortened learning
curves for our teams. Together,
the projects are also generating
invaluable working knowledge
and lessons that we will continue to
apply as we invest in the years ahead,”
says Alan.
“Our Harapaki Wind Farm and
the Ruakākā BESS have given us
confidence that we can accelerate
the pace of electrification to improve
security of supply, lower costs for
consumers and reduce the nation's
carbon footprint.”
ABOVE
Meridian Board and staff at the
opening of our Ruakākā BESS.
28
MENUGROW RENEWABLE GENERATION
MERIDIAN ENERGY INTEGRATED REPORT 2025
Deliver
cleaner,
cheaper
energy
02
STRATEGIC PRIORITY
IMAGE
A home EV charger.
29
MENUDELIVER CLEANER, CHEAPER ENERGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Why read this section
Read this section for updates on our next generation
approach to energy retailing and how, after a record year
in terms of market share for our retail brands, this carries
all the way through to helping those in energy hardship.
MATERIAL TOPICS
AFFORDABILITY
CUSTOMER
DECARBONISATION
PUBLIC TRUST
IN THIS SECTION
Our 'next generation'
approach to retail
New products saving
customers money
Zero charging
network expands
Helping businesses
decarbonise
Businesses support
communities through
our Decarbonisation
Fund
Our goal is access
to energy for all
Informed by data,
delivered digitally
Case study: Getting
into hot water, for all
the right reasons
30
MENUDELIVER CLEANER, CHEAPER ENERGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Progress against strategy
Because customers must benefit from innovations and lower energy costs
OUR KEY INITIATIVESOUR FY25 TARGETSTRAFFIC
LIGHT
PROGRESS
TRANSFORM THE CUSTOMER OFFERING
Digital and data-
driven customer
experiences
Execute Next Generation Retail strategy to
deliver new core energy and data practices
and embed an operating model to enable this
• Base Camp completed
• New operating model embedded
• New core energy platform vendor selected
Making flex
valuable for
customers
Sign 10MW of additional demand flexibility
5,000 residential customers on demand
response product
• 4MW of contracted industrial demand added. Total contracted load is 34MW
• 16,400 customer connections added to Retail’s new Smart Hot Water flex product,
11,000 above plan
Electrifying
transport
and heat
Install 75 fast chargers by the end of FY25
Convert 200GWh of MOU process heat to
contract [deprioritised by Retail in Q2]
• 46 fast DC public charge points added to the Zero public charging network
• 38GWh of MOU process heat converted to contract [deprioritised by Retail in Q2]
Optimising costs
and efficiency
Customer numbers grow to 395k
Restructure Retail to reduce headcount and
deploy Next Generation capabilities that
support strategic growth
• Retail customer connections (ICPs) grew to 406k following a year of double-digit growth
35k new customers added across our two retail brands, exceeding our plan by over 10k
• Cost to serve positively impacted by Retail head count reducing by 10 percent
INCREASE COMMUNITY GOOD
Support 1k customers in energy hardship
Increase community decarbonisation
distributions to $1.5m in FY25
• 1,716 households welcomed into our Energy Wellbeing Programme
• Community Decarbonisation Fund distributions of $1.5m in FY25
POLICY ADVOCACY THAT PROMOTES CLIMATE ACTION AND SUPPORTS NEW ZEALANDERS THROUGH THE ENERGY TRANSITION
ETS seen as primary tool to drive
energy transition
Favourable consenting reforms
Navigate near-term winter capacity constraints
• Currently low confidence and pricing in ETS
• Changes to the Operating Guidelines approved by Minister improve flexibility in
Lakes Te Anau and Manapōuri
• Fuel scarcity through two droughts and ongoing gas production declines has seen
criticism of the sector. Both Government and an Electricity Authority and Commerce
Commission Taskforce are reviewing elements of the electricity sector
• Price increases in 2025 have been driven in a large part by Commerce Commission-
approved revenue levels for lines companies and Transpower
• Progress on RMA reforms with Government focused on simplifying and accelerating
consenting processes
• Winter 2025 fuel supply managed through careful hydro management and improved
thermal availability
KEY
AchievedPartially achievedNot achieved
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MENUDELIVER CLEANER, CHEAPER ENERGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Our ‘next generation’
approach to retail
The rollout and implementation of
Meridian’s new retail operating model
– Next Generation Retail – is focused
on positioning us to lead in a dynamic
electricity market. We want to be able
to deliver smarter, faster and more
relevant experiences for customers.
This momentum is already translating
into results – we’ve achieved double-
digit levels of customer growth and
reached our highest-ever market
share, a clear signal that our new
retail strategy is resonating with
New Zealanders.
Increasing our presence
We are still the country’s biggest
supplier of retail electricity, with
sales approaching 9,500GWh.
This year we’ve added over 35,000
new connections. Importantly,
both our Meridian and Powershop
brands showed strong growth,
with Powershop growing by around
22,000 and Meridian by around
13,000 customer connections. We
now have over 405,000 customer
connections – an increase of 10
percent – representing about 17
percent of all Aotearoa New Zealand’s
households and businesses.
Supporting growth, we also
acquired the customer base and
hedge positions of energy retailer
Flick, which will add around 38,000
mostly residential connections to our
customer base by October 2025.
New platform to unlock
cleaner, cheaper solutions
In June, we confirmed Kraken as
our preferred vendor for the new
core energy platform, another
significant milestone on our path to
Next Generation Retail. This platform
will support delivery of the modern,
data-driven digital experiences that
customers demand and improve our
in-house capability to deliver energy
propositions that will make energy
cleaner and cheaper. At year end,
we’ve established a deployment
team and are now refining our plan
to have customers on the Kraken
platform and using the new digital
front end (including a new retail
energy app) starting from the second
quarter of FY26. Flux will continue
to maintain its billing platform while
a phased migration to Kraken takes
place. Beyond that, we are reviewing
the future of the subsidiary.
RIGHT
Our Solar Plan enables households to lock in
market-leading buy-back rates for three years.
32
MENUDELIVER CLEANER, CHEAPER ENERGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Powershop New Zealand and Meridian New Zealand residential customers only.
* Calculated from a survey asking customers using a 0–10 scale “How likely is it
that you would recommend Meridian/Powershop to a friend or colleague?”
then subtracting the percentage of detractors from the percentage of
promoters. A positive value indicates that more customers are promoters
versus detractors (and vice versa). Results are a 12-month moving averages
from July to June each financial year.
** Perceptive Group Limited: New Zealand NPS Industry Benchmarks.
FY24 updated since last report. FY25 data will be available next year.
* Excludes New Zealand Aluminium Smelters. Fewer than 10 of the above
ICPs are connected to the transmission network. Around 4,700 customer
connections have distributed generation metering.
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MENUDELIVER CLEANER, CHEAPER ENERGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
New products saving
customers money
As part of our focus on delivering
cleaner and cheaper energy to
customers, we’ve introduced
innovative products that focus on
creating value from the energy
system and passing this value back
to customers. This year, we launched
Smart Hot Water, Smart EV Charging
and the Four Hours Free Plan to
add new options for our residential
customers. These are products that
incentivise the reduction of energy
use at peak demand times – directly
supporting access to cleaner and
cheaper energy.
We have also continued to trial
innovative home energy propositions
such as smart charging for EVs and
hot water load shifting. Supporting
these new products, our EV Plan
includes six months of free EV
charging at home and up to 50
percent off standard day rates from
9pm to 7am. Our Solar Plan enables
households to lock in market-leading
buy-back rates for three years.
Zero charging
network expands
This year there were over 55,000
charging sessions on our Zero EV
network, charging EVs across the
country with more than 680,000kWh.
Our network remains the second-
largest in Aotearoa New Zealand,
with 388 charge points available for
those using the Zero app, an increase
of 60 charge points from last year.
Of the new charge points installed,
46 are fast DC, helping EV drivers
charge quicker and drive further.
A highlight of the year was the
opening of our charging station at
Springs Junction, on a key route
between Christchurch and Nelson.
In a world first, our Zero EV chargers
are supported by three 120kWh BESS
units, which use repurposed Nissan
Leaf batteries to store energy. The
BESS units charge overnight, when
pressure on the local network is at its
lowest, before releasing power to the
chargers throughout the day.
We are pleased to see that the
Government is committed to
expanding the national EV network
and we have an exciting pipeline of
chargers and sites planned. With the
Springs Junction, Kohatu, Whataroa,
Twizel and Geraldine projects in
the South Island completed, work
is underway to secure the required
power supply and install chargers at
multiple locations including in Haast,
St Arnaud, Kaikōura, Culverden,
Murchison, Tākaka and Rakaia as
well as many in the North Island.
These are all expected to go live in
the next financial year.
RIGHT
Zero EV chargers, Days Bay,
Te Whanganui a Tara Wellington.
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MENUDELIVER CLEANER, CHEAPER ENERGY
MERIDIAN ENERGY INTEGRATED REPORT 2025
Helping businesses
decarbonise
We understand that for many
businesses the decision to
decarbonise can come with many
challenges. We’ve been committed
to working closely with businesses
and providing solutions to these
challenges that they face.
This year we supported more
businesses with their EV fleet
charging needs, including delivering
heavy vehicle DC charge points for
Fulton Hogan and Hutt City Council.
Our proposition has also expanded
to support businesses with their staff
charging needs in their homes.
Commercial solar Power Purchase
Agreements (PPAs) allow businesses to
utilise more renewable energy without
the upfront capital investment. The
amount of commercial solar systems
we’ve installed and operate has grown
to 3MWp. This year we installed a
large system at Lion New Zealand’s
East Tāmaki Brewery, The Pride. At
1.21MW it is one of Aotearoa’s largest
roof-top systems.
Market conditions impact
Process Heat programme
Process heat electrification has been
challenging this year with the market
conditions slowing activity. We saw
limited growth in our Process Heat
Electrification Programme with only
38GWh added, taking our total under
this programme to 563GWh.
We continue to assess and work
with customers on process heat
electrification where conditions
support it. Our Industrial Demand
Response Product provides value
to customers for the flexibility they
offer the energy system at times
they can lower their grid electricity
use, often by utilising alternative fuel
sources. We grew the amount of
‘future potential flex’ load contracted
from 30MW to 34MW with high
confidence of more landing early
this financial year, helping to provide
more certainty for the industry in
future years.
LEFT
The 1.21MW solar installation at Lion
New Zealand’s East Tāmaki Brewery,
The Pride, Tamaki Makaurau Auckland.
35
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Businesses support
communities with
Decarbonisation Fund
Meridian’s Certified Renewable
Energy product allows our large
business customers to match the
electricity they use from the grid with
an equivalent amount of electricity
produced by our hydro stations
and wind farms, and independently
verified as 100 percent renewable
energy. The resulting Renewable
Energy Certificates (RECs) benefit
our business customers by lifting
the levels of renewable energy
they are using, which they can then
disclose to their people, investors,
customers and other stakeholders.
To date, over 250 companies
have signed up to purchase more
than 3,500GWh of these RECs. All
the net proceeds we receive are
reinvested into our Community
Decarbonisation Fund. The Fund has
grown significantly with investments
in electrification projects nationwide
and, to date, has allocated nearly
$3 million to support the use of
EVs, solar panels, batteries and
electric heating. The Fund has also
supported business customers
with bespoke solutions for solar
and decarbonisation.
This year, 24 community groups
received funding. Recipients
included the Twizel Medical Centre
which received $179,000 to install
69.6KW of solar panels and 64kWh of
batteries, and Hōhepa Wellington, a
charity providing 24/7 personalised
support for people with intellectual
disabilities, which received $71,827
to purchase an electric van for
its residents.
This year nearly 30 different
organisations received contributions
from our Fund.
You can find out more about our
Community Decarbonisation Fund
and its impacts on our website.
IMPACT AND TRANSPARENCY REPORT
bit.ly/3A8UiXx
DECARBONISATION FUND
bit.ly/4nCHQmZ
RIGHT
Community Decarbonisation Fund recipient,
Satisfy Food Rescue, Kaiapoi, Canterbury.
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Our goal is access
to energy for all
Energy is a necessity. Consequently,
we assume responsibility for doing
all we can to help our customers
to access energy. The long-term,
sustainable use of energy relies on
balancing energy sustainability,
energy supply and energy equity.
As committed advocates of the
Electricity Authority’s Consumer Care
Guidelines, we were meeting these
standards long before they were
mandatory, locking them into all our
customer processes, including how
we support medically dependent
and financially vulnerable customers
to access the electricity they need.
Disconnections are a last resort for
us and our disconnection rates
remain low by industry standards.
Instead, we encourage households
and businesses to take control of
their energy through flexible
payment products such as LevelPay,
and by accessing digital tools that
enable customers to monitor and
manage their usage. Customers
that are experiencing financial ort
energy hardship are supported
directly through our Energy
Wellbeing Programme.
Growing our Energy
Wellbeing Programme
As part of our continued commitment
to supporting financially vulnerable
customers, our Energy Wellbeing
Programme has the goal of helping
5,000 Meridian and Powershop
households in energy hardship by
FY28, via a $5 million commitment
announced in 2023. The programme
provides tailored, flexible support
to customers by partnering with
community energy organisations.
Through targeted in-home
intervention, we aim to reduce the
likelihood of energy hardship in the
future. To do this, we look at four
things – energy supply, housing
quality, energy efficiency, and
financial situation.
We have also established a
dedicated fund through our
community energy partners to
provide energy assessments,
education, and energy-efficient
goods such as heaters and curtains.
At year end, 1,716 customers had
been added to the Energy Wellbeing
Programme this year and we had
assisted 3,185 customers in the
programme in total. We continue
to track our progress towards our
target every quarter.
An independent GoodMeasure
report by ImpactLab, released in
November 2023, found that for
every one dollar spent, we can
provide $5.20 of measurable
good to Aotearoa New Zealand.
GOODMEASURE REPORT
bit.ly/3WSvmw8
Higher regulated costs
From 1 April 2025, customers across
the country have experienced price
increases. For Meridian's customers,
80 percent of those increases come
from Commerce Commission-
approved increases to transmission
and distribution prices. These price
changes will be acutely felt by many
customers. We are looking at all
the ways we can lessen the impact,
including introducing smart products
to save power and money, and
furthering the use of our Energy
Wellbeing Programme.
Informed by data,
delivered digitally
We track our ambitious targets against
a range of time horizons to ensure our
growth is consistent with our trajectory.
Through the year, we undertook
a major organisational review to
ensure we had the right structure and
headcount to deliver our retail strategy.
The recent decision to work with
Kraken aims to create an optimised
cost-to-serve model that will help
attract new customers and deliver
new products built around demand
flexibility and creating value and choice.
The Kraken platform will underpin our
customer billing and provide a robust
data foundation to inform progress.
Also on the way is a new retail app that
will change how customers can engage
with us. We will migrate our first
customers onto Kraken by August 2025
and plan for our app to be available
in a first iteration at the same time.
Already we’re seeing reductions in
operating costs and costs to serve, and
significant net growth in our customer
base. These changes confirm that we
are delivering well for the business.
Just as importantly, we’re seeing shifts
in customer behaviour as we make
new experiences available. Our new
products are attracting steady uptake
and we are seeing strong advances in
online engagement.
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CASE STUDY
Getting into hot water,
for all the right reasons
Our new retail products have been
a big hit with customers looking
to take advantage of cleaner and
cheaper energy options.
Hot Water Flex is an innovative
demand flexibility product that
rewards residential customers who
allow Meridian to shift their hot
water heating outside of peak times.
This initiative, which we successfully
built, piloted and scaled this year,
is redefining how we work with
our customers.
“We knew that many of our residential
customers across both our Meridian
and Powershop brands were open to
options that would reward them for
allowing some additional control
of their hot water cylinder heating
cycles. How could we make that
happen for them?” says Lisa Hannifin,
Chief Customer Officer.
Customers currently receive a $10
monthly rebate in exchange for
allowing us to shift their hot water
heating to off-peak periods, reducing
pressure on the grid and lowering
household energy costs.
Working closely with our metering
partners Intellihub and Bluecurrent
and local network operators has been
critical to unlocking the flexibility
potential of our residential customer
base and delivering meaningful
outcomes to our customers without
affecting their access to hot water
or compromising the operation of
the local grid.
Initial trials validated the technical
feasibility and customer value
proposition, with early adopters
showing clear shifts in hot water
heating consumption. “Once we’d
demonstrated that we had the
technology and a customer value
proposition that was strong enough
to show clear reductions in peak-
time consumption, we were able
to scale and rapidly expand access
from 100 to 1,000 customers within
weeks,” says Lisa. “At the end of
the financial year, we’ve had over
16,400 customers enrolled, laying
the groundwork for a broader rollout.
This represents over 30MW of
potential hot water capacity under
management that homes across
Aotearoa New Zealand are making
available for us to help reduce their
peak consumption.”
“Our goal is to have 30,000 customers
on a Hot Water Flex product by the
end of next year, which can make all
the difference when the network is
under pressure.”
“We’re proud of what we’ve achieved
so far. Hot Water Flex proves that we
can innovate at pace to deliver
real value for our customers and
at the same time deliver positive
environmental impacts that align
with our overall strategy.”
ABOVE
Innovation for our customers through
our Hot Water Flex product.
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Deliver
operational
excellence
IMAGE
Maintenance being
undertaken on the wicket
gates, Benmore Power
Station, Waitaki Valley.03
STRATEGIC PRIORITY
39
MENUDELIVER OPERATIONAL EXCELLENCE
MERIDIAN ENERGY INTEGRATED REPORT 2025
Why read this section
This year’s financial results were disappointing. In this section,
we explain what happened and what it means not just for us,
but for the industry as a whole. There’s an update on changes
at Flux and we highlight the significant progress we have
made incorporating data-driven decisions into how we work.
MATERIAL TOPICS
RENEWABLE ENERGY
GENERATION
CYBER AND PHYSICAL
SECURITY
IN THIS SECTION
Droughts impacted
earnings
Strong balance sheet
Flux supporting the
transition to Kraken
Data is changing how
we work
Case study: Rethinking
how we restart
40
MERIDIAN INTEGRATED REPORT 2025
MENUDELIVER OPERATIONAL EXCELLENCE
MERIDIAN ENERGY INTEGRATED REPORT 2025
Progress against strategy
So everything we do aligns to deliver on our goals
OUR KEY INITIATIVESOUR FY25 TARGETSTRAFFIC
LIGHT
PROGRESS
BUILD OPERATIONAL FLEX AND AGILITY WHILE SUSTAINING EXCELLENT ASSET PRODUCTIVITY
Improved Asset Management Plan that
supports maximising availability of existing
assets delivered
Reduce annual routine outage days by
over 100 days
Implement advanced analytics trial
• 112MW of new capacity available from existing hydro assets
• Removed more than 200 days from outage calendar
• Commenced digital generation (DigiGen) programme
MODERN DATA AND DIGITAL SYSTEMS TO PROMOTE COLLABORATION, OPERATIONAL EFFICIENCY, INNOVATION AND DATA-DRIVEN DECISIONS
Finance Transformation (FT) live
Enterprise-wide data lake delivered
and scaling in progress
Identity and access management
solution delivered
Market Maker enhancements delivered
Modernise our key wholesale systems
Improve short-term capacity modelling
and product development
• Finance Transformation live
• Generation Control System software being replaced
• Identity and access management solution delivered
• Market Marker AI enhancements delivered
• Data lake value pools defined
KEY
AchievedPartially achievedNot achieved
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MENUDELIVER OPERATIONAL EXCELLENCE
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Droughts
impacted earnings
A very challenging operating
environment this year materially
impacted financial performance,
particularly our energy margin. With
the strength of our business, the result
did not impact the dividend or our
renewable development programme.
Periods of record low hydro inflows
across the country and unseasonably
low wind highlighted a rapid decline
in gas availability, and reduced the
reliability and cost of gas-backed
hedges. In response, we called on
our demand response arrangement
with NZAS, requiring them to
reduce demand so that energy
be made available to other users.
We also entered into swaption
contracts that underwrote
agreements with Methanex.
Our financial results
Energy margin fell by 23 percent
compared to the same period last
financial year as a direct result of the
demand response arrangements
and swaptions we put in place.
The demand response payments
were to NZAS for exercising
Option 4 of the demand response
agreement with them. NZAS also
provided an extra 20MW of response
and ramped down quicker than
was required under the contract.
While the result lies in stark contrast
to last year’s record performance,
both the Board and Management
believe that we are well positioned,
that the assets we are developing
will prove their worth as demand
increases, our relationships with
customers are strong and we are
focused on the things that will
improve the market over the
medium term.
Addressing volatility
Declining gas availability and high
gas prices are increasingly the driver
of wholesale electricity prices, rather
than hydro storage levels.
In the medium term, we are
confident that the pipeline of new
renewables and battery systems,
together with arrangements like
those we have with NZAS, should
contain wholesale prices and give
Aotearoa New Zealand flexibility to
address renewable intermittency.
Joining other gentailers to work on
an agreement to maintain a strategic
energy reserve with Genesis Energy
was a necessary move to support
energy security in FY26 and beyond.
That agreement will shore up
security of supply and support the
sector to manage dry-year risk for
the next decade, lessening Aotearoa
New Zealand's reliance on its
dwindling gas reserves.
Unlocking more of
New Zealand's storage
We were pleased to see the Minister
for Energy approve changes to the
Operating Guidelines to improve
flexibility in Lakes Te Anau and
Manapōuri. But, in our view, it
cannot stop there.
For example, Lakes Tekapo/Takapō
and Pūkaki, New Zealand's largest
hydro storage, have an additional
765GWh hours of storage, equivalent
to 20 percent of the controlled
storage that currently exists across
all New Zealand hydro catchments.
Under the current regulatory regime,
this storage cannot realistically
be used without intervention by
Transpower, depriving the country of
a significant and renewable energy
source at times when it is most
needed. We would like to see this
reviewed and we have applied for
access to contingent storage in Lake
Pūkaki, which will be considered
under the fast-track approvals
process. This would ensure ready
access to this valuable resource,
supporting energy security and
bringing down wholesale prices.
...we are well positioned, the assets we are
developing will prove their worth as demand
increases...and we are focused on the things that
will improve the market over the medium term.
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Making the most
of what we have
While we cannot control the weather,
or the impacts of climate change, we
can actively manage our assets to
minimise our contribution to wholesale
market volatility. Increasingly, our
teams are working together, drawing
on the sophisticated data we now
have access to, rethinking historical
practices and developing new ways
to create greater capacity during
peak times and dry years.
Two years ago, we set a goal to
deliver 200MW of restored and
300MW of new capacity from our
generation portfolio by the end
of FY28. Every MW restored or
added counts positively towards our
target, while further outages set us
back. We've faced challenges with
further plant failures but despite
these setbacks we have achieved
net 8.3MW of restored capacity
and 111.6MW of new capacity
toward our goal and markedly
decreased the potential for future
unscheduled outage days. Getting
our transformers back online, and
eliminating or deferring scheduled
outages has helped us avoid taking
capacity out of the system.
Our target had been to remove
100 days from the outage calendar.
By talking to our people we have been
able to reconfigure maintenance to
remove more than 200 days from
the calendar without any increase
to our risk profile.
We resolved problems with one of the
two non-operating transformers at
Manapōuri to have it back in service by
December 2024. The new transformer
has increased generation capacity at
Manapōuri from a restricted limit of
640MW to around 768MW – close to
the maximum 800MW allowed under
its consent conditions. An additional
two replacement transformers are due
to arrive in 2026, at a cost of around
$10 million. We continue to pursue
redress from the original transformer
manufacturer.
We have also decided to replace
the other five transformers at the
Manapōuri Power Scheme over the
next two and a half years. We don’t
expect this to have any impact on
our overall generation outputs.
We also restored 29MW at our wind
farms in White Hill and Te Āpiti.
A prolonged outage of one of the
transformers at our West Wind Farm
continued for much of the year,
taking 45MW out of the system
and constraining capacity to 98MW.
We were able to loan a transformer
from Transpower to add back
the megawatts we lost. The new
transformer arrived in July 2025.
We expect to have this new
transformer in place and working
by the end of October 2025.
Our next era of change will come
with the implementation of the digital
generation (DigiGen) programme
we have started and which will
advance over the next financial year.
Accelerating our digital capability
will lift our understanding of risk
to a forensic level, increase plant
availability, and improve the value
of what we deliver by enabling
things like more condition-based
maintenance based on better
information about our assets.
ABOVE
Our White Hill Wind Farm, Murihiku Southland.
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Strong balance sheet
Recognising that droughts are
inevitable, our dividend policy and
balance sheet have been designed
to support dividend stability even in
the face of substantial disruption to
operating cash flow. We continue to
develop new ways of working in a
more volatile supply environment.
Our credit rating of BBB+/Stable has
not changed and at year end we
had bank facilities of $910 million,
of which $253 million were drawn.
Flux supporting the
transition to Kraken
Last year, we announced a major
review and restructure of our
subsidiary, Flux Federation.
Our Chief Information Officer,
Bharat Ratanpal, was seconded as
Interim Chief Executive to lead the
business through this next phase.
That review and subsequent
restructure has been successfully
undertaken this year. A new strategy
saw Flux brought closer to the
Group and the business shift focus
from building the Flux platform as
a global business to concentrating
on the Australasian market and
service of its existing customers.
As part of the review, there was a
significant reduction in headcount
and Flux no longer has its own
independent Board.
In June 2025, we announced
that Kraken will replace Flux as the
billing platform for Meridian and
Powershop. Flux will continue to
maintain their billing platform
while a phased migration to Kraken
takes place. Beyond that, we are
reviewing the future of the subsidiary.
Data is changing
how we work
Our drive to incorporate core data
into our systems, how we work, and
our decision-making continued
at pace this year. As technologies
such as artificial intelligence (AI)
and machine learning become
mainstream, we’re applying data
in new ways and through new
applications to maximise the value
we deliver, increase collaboration,
and capture the insights needed
to drive effective innovation.
Establishing value pools
A data lake is a large body of
continually refreshed data, drawn
from different sources across the
business and sorted and collated
through powerful data science
models to augment the full breadth
and depth of our decision-making.
Establishing such a resource takes
time, but we are making good
progress in defining what we call
our ‘value pools’ – those areas of
the business where access to,
and analysis of, extensive data
is a potential game changer.
We’re already using data to better
model risks and the maintenance
required for our generation assets.
Digitally-powered generation
This year, we started a project to
renew our Generation Control System
software, SCADA (System Control
and Data Acquisition), which will
improve capacity to get more out
of our current assets and help us
implement streamlined operating
workflows around all our assets.
This critical system runs and controls
our generation network and the
upgraded version, with its modern
architecture and boosted capabilities,
will work with our emerging energy
sources and distributed energy
arrangements to enable us to
generate more value from our
assets through upgrades.
Making the best use of our digital
assets and data is also allowing us
to minimise outages and, where we
do have outages, return equipment
to full operation in a controlled but
rapid way.
This year, after an outage at our wind
turbines in Wellington caused by very
high winds, we were able to check
and restore affected equipment in
one hour through remote-access
software implemented by our team.
Previously, complex processes and
difficult terrain would have meant a
re-start taking a few days.
Making the best use of
our digital assets and data
is allowing us to minimise
outages and, where
we do have outages,
return equipment to full
operation in a controlled
but rapid way.
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Market Maker
We’ve also started using generative
AI to change how we respond. One
emerging example is Market Maker,
an AI-powered tool that scans a range
of sources for news, information of
interest, and other changes and shifts
that could be of interest to our trading
teams. The potential is there to further
automate how we manage our trading
portfolio and to do so with greater
speed and decisiveness.
Using AI intelligently
Data is also changing how our people
work within the business. This year,
we successfully integrated a range of
systems used by our finance teams
into a single system, integrating
everything those teams do for the
first time ever. This has not only
improved how those teams work,
it has enabled complex reporting
that enables us to appraise our
financial positions more quickly.
Speed and efficiency are also
key drivers for trialling Microsoft
Co-Pilot for all our people. Utilising
AI for everyday processes will
remove administrative burden
and processing time. Feedback
so far has been positive.
Of course, as we become more
dependent on data to improve our
efficiencies and help us provide
better value, it’s vital we keep that
data safe and secure. Segmenting
our network so that any breaches
can be robustly contained has been
underway for some time. This year,
we completed the second phase
of our network security project,
meaning full segmentation is
now in place.
Safeguarding customer and company
data is fundamental. We adhere to
industry regulations and standards
and proactively manage cyber risks.
We’ve also established clear protocols
for how we use AI to ensure that our
intellectual property is protected,
that our people understand how to
use these tools properly, and that
sensitive data is not shared.
ABOVE
The generation control room in our
Te Whanganui a Tara Wellington office.
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MENUDELIVER OPERATIONAL EXCELLENCE
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CASE STUDY
Rethinking how we restart
A large shutdown at our West Wind
Farm this year could have affected
our customers for days. Instead,
thanks to new technology, we were
able to bring operations back online
in a fraction of that time.
At the beginning of May 2024, an
extreme weather event in Wellington
severely affected our West Wind
facility. Winds as high as 190km/h
saw 43 turbines fault out, along with
the Brooklyn turbine. The Meridian
team proactively stopped the rest
of the turbines on the farm to avoid
more faults.
“Big storms like this have historically
been highly disruptive,” says Yanosh
Irani, Head of DigiGen. “Even if there
hasn’t been a lot of damage, resetting
dozens of turbines has been a
significant logistical exercise. Because
these switches are so sensitive, there’s
been no way of knowing whether the
machines were at risk or whether they
had powered down as a precaution.
The thinking for many years was that
the prudent way to check was to do
so physically. That of course came
with its own risks and costs.”
That didn’t happen this time. Instead,
using new remote hand terminal
software, most of the stopped
turbines were returned to operation
in a matter of hours.
“The equation is pretty straight-
forward,” says Yanosh. “Less
downtime literally allows our plant
to produce more. Making that
happen has required us to rethink
how maintenance itself should be
scheduled and where we should
focus our efforts for what’s required.”
We are shifting from a fixed and
scheduled timetable to more of a
pit-stop model, and we will be able to
use data and strategic interventions
to eliminate redundant work and
dramatically lower downtime overall.
This means we have more plant
operation available more often –
increasing capacity and optimising
availability.
There have been other cost-saving
advances as well. For example,
we’re now using underwater drones
for inspections at our hydro sites.
Previously, that work would have
required commercial divers and an
extended downtime to complete
safely. Now, we can ensure that our
sites are operating safely at lower
cost, with fewer people involved and
with less loss in generation time.
“The best solutions are not necessarily
the most glamorous, or even the
largest. They’re the ones that have
real and measurable impacts, that fit
with how we work and that make a
difference for our team,” says Yanosh.
“Remote-access software is a specific
tool. When it’s applied to the work
we do and the pressure we’re under
when things go down, it’s been a
game changer.”
Our DigiGen programme will take
all this to new levels, enabling us to
decouple improved performance
from rising costs and to achieve
greater availability through clever and
informed planning. Such adaptations
make sense – as climate change
influences weather patterns and
electricity demand increases, we are
looking to achieve the best possible
outcomes from our assets.
ABOVE
The Meridian team at Benmore Power Station
with our new remote-operated submersible.
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MENUDELIVER OPERATIONAL EXCELLENCE
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Grow
capability
and culture
04
STRATEGIC PRIORITY
IMAGE
Team meeting in our
Ōtautahi Christchurch office.
47
MENUGROW CAPABILITY AND CULTURE
MERIDIAN ENERGY INTEGRATED REPORT 2025
Why read this section
We made significant changes to our retail workforce
this year. We also reviewed and fine-tuned our Half
by 30 target. This section offers more details on how
we have looked to develop and deliver a culture and
leadership that benefit people and the planet, inspire
climate action and attract investors.
MATERIAL TOPICS
RENEWABLE ENERGY
GENERATION
PUBLIC TRUST
NGĀ TUKINGA O TE AO
TŪROA – IMPACTS ON
THE NATURAL WORLD
BUSINESS EMISSIONS
AND WASTE
PEOPLE
IN THIS SECTION
A new operating model
Wellbeing is at the
heart of our approach
Standardising our
safety approach
Celebrating partnerships
Powering up
communities
Forever Forests
keep growing
Evolving our practice
Making the right start
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MENUGROW CAPABILITY AND CULTURE
MERIDIAN ENERGY INTEGRATED REPORT 2025
Progress against strategy
Because how we do the mahi is what will make the real difference
OUR KEY INITIATIVESOUR FY25 TARGETSTRAFFIC
LIGHT
PROGRESS
GROW A DIVERSE, INCLUSIVE AND SKILLED WORKFORCE THAT REFLECTS THE COUNTRY WE LIVE IN
25% women in senior roles
Reduce Māori and Pacific Peoples representation
gap by 10% on the baseline each year
Maintain/achieve engagement in top 25%
of NZ organisations
Deliver new Wellbeing Strategy
• 30% women in senior roles
• Māori just under 5%, and Pacific Peoples 2% of workforce in FY25
• Our engagement score was steady at 74%, 2% higher than the top 25% benchmark
• New Wellbeing Strategy delivered
SAFETY LEADERSHIP THAT GROWS IN MATURITY AS WE BUILD INTO THE ENERGY TRANSITION
Growing the maturity of the safety culture
through improvement in the lead indicators
from FY24, while managing lag indicators
• Total recordable injury frequency rate for employees and contractors per
200,000 hours worked was 2.45 (compared with 1.81 in FY24), with 18 injuries
(8 contractors and 10 employees)
OUR DEVELOPING UNDERSTANDING OF THE MĀORI WORLDVIEW HELPS BUILD LONG-TERM RELATIONSHIPS WITH TANGATA WHENUA
First cut of recruitment pathways revision
delivered in partnership with People team
Development of the kawenata with Ngāi Tahu
delivers tangible outcomes
• Continued work to deliver on kawenata commitments and iwi relationships
SUSTAINABILITY CULTURE AND LEADERSHIP THAT BENEFITS PEOPLE AND PLANET INSPIRES CLIMATE ACTION AND ATTRACTS INVESTORS
ESG accountability formalised in business units
Half by 30 FY24 initiatives delivered
Upper-quartile Asia Pacific ESG performance
(DJSI index measure)
• Finance team responsible for climate-related disclosures, Generation team leading some
emissions reduction work
• Revised Scope 3 targets for Half by 30
• Ranked #1 for our sector in the Dow Jones Best-in-Class Sustainability Asia Pacific Index
KEY
AchievedPartially achievedNot achieved
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MENUGROW CAPABILITY AND CULTURE
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A new operating model
A major restructure in our retail
business was a key focus this year.
That transformation was nothing
short of a full redesign of the
operating model, intended to drive
more customer-focused, faster,
innovative ways of working.
The change objectives reflected
current and pending changes in
technology, a next generation of
customer service, and new ways of
thinking about how our teams deliver
in advanced digital environments.
80 percent of roles were disestablished
and replaced with new roles, with
outcomes finalised and shared
by December 2024.
As a result of the transformation,
83 people left the organisation,
most of them on a voluntary basis.
Remarkably, throughout the change
process, our retail team kept hitting
their targets and growing the
business. When we acquired the Flick
customer base, the team was able to
absorb the extra work with a lower
headcount, a strong indicator that the
new model is delivering as intended.
Recently the role of General Manager,
Wholesale was disestablished, and
a new position of General Manager,
Strategy and Portfolio created. As
a result, the Wholesale Operations
function became part of the
Generation team.
Diversity affected
by restructure
The turnover of people in late 2024
temporarily affected the makeup
of our diverse workforce. While, in
absolute numbers, our loss in people
of Māori descent was not huge, this
reduction did represent a dip in
overall representation. We are now
working to redress these changes
through recruitment and career
advancement within the business.
Diversity drives better decision-
making and outcomes. However,
attracting a more diverse workforce
is proving a slower burn than we
would like. Unfortunately, we are not
getting the volume of applicants from
diverse backgrounds that we’d hoped
for. The upside is that when Māori
do apply for roles, the conversion
to interviews is comparable with
other groups. To address this, we
are continuing to talk to our partners
and communities to encourage
them to nominate candidates.
Lifting Māori representation, and
ensuring growth opportunities are
available, is consistent with how
we want to reward and recognise
talent, behaviours and performance
and connect to te ao Māori as a
multicultural organisation.
Encouraging leadership
in everyone
Leadership is critical to attracting
and retaining the right people.
This year, we launched a new
programme recognising that
leadership shows up at all levels,
encompassing self-leadership,
outcome leadership, and leadership
of others.
We have identified and articulated
the critical attributes and capabilities
essential for people in our organisation
to successfully execute our strategies
at pace:
• Develop yourself – focusing
on personal growth and self-
leadership
• Make things happen – directly
influencing and guiding others
to achieve strong outcomes
• Navigate the future – empowering
and guiding others to amplify our
collective impact
We have already incorporated these
ideas into our Code of Conduct and
from next year will include them in
how we measure leadership maturity
in individuals.
We remain committed to increasing
the proportion of women in senior
roles. We’re proud that, despite a
challenging labour market, we’ve
been able to appoint high-calibre
senior women. This has meant
we’ve been able to maintain high
performance against our target for
women in senior roles (29.8 percent
against a target of 30 percent, and
over 45 percent of the workforce
identified as women).
CODE OF CONDUCT
bit.ly/4dvYpuU
We’re proud that, despite a challenging labour
market, we’ve been able to appoint high-calibre
senior women.
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Engagement still strong
Engagement is important as it
is an insight into organisational
performance provided by our most
valuable assets, people. Despite
operational changes, overall employee
engagement in the Meridian Group
has stayed relatively steady at 74
percent. After a higher turnover period
following the restructure, leaving
rates have now returned to much
lower levels, indicating that things are
stabilising. We were again pleased to
see a very high voluntary response
rate of 89 percent for this year’s
survey. Despite challenging operating
conditions and intense industry
scrutiny, we continue to attract and
retain skilled and committed staff
who are delivering great results.
We continue to perform well
against our benchmark of the top
25 percent of organisations our
size. Our engagement score was
74 percent positive, 2 percent
higher than the benchmark.
* Measured by ‘level of agreement’ – the percentage of staff who ‘agree’ or ‘strongly agree’ with the five
questions that collectively determine our Engagement Index (previously calculated as a weighted mean).
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See our Integrated Report Data Pack
for more information on our workforce
INTEGRATED REPORT DATA PACK
bit.ly/44yppqP
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Wellbeing is
at the heart of
our approach
We invest in wellbeing because it
is the biggest enabler of a high-
performing workforce. A major
revamp of our wellbeing strategy
this year has seen us instigate a
programme promoting physical
health, mental resilience and a
thriving work environment, to drive
individual health and the overall
growth of our organisation.
Work design and organisation,
relationships and social connection,
systems and processes, all represent
opportunities to minimise risks
to people’s psychological and
physical health.
An important lesson from our
safety framework has been that
the principles keeping people safe
physically can also help ensure they
are safer mentally. On that basis,
we have adapted our Learning
Teams initiative (which is focused on
collaboration) to recognise mental
hazards and controls and to think
about the whole team as well as
each individual.
We know that organisational change
can and does impact people’s feelings
of security and therefore creates
mental risk. This approach helps our
people feel well-supported when
adversity impacts them personally
and/or professionally, and enables us
to build the mindset and capability to
optimise the workplace environment.
We give people time to prepare for
organisation change, with feedback
loops and coaching sessions. We
listen to people and what they need,
provide help where appropriate
through personalised support, and
involve leaders in taking teams on the
change journey by being available
and open.
Standardising our
safety approach
We protect everyone who works
on our sites and in our workplaces.
Keeping our teams and contractors
aware of risks, educated about
policies and procedures, and working
in safe ways as we grow the business
requires us to identify and address
an evolving set of risks and potential
hazards, that also range in probability,
frequency and consequences.
The introduction of battery assets,
solar and wind generation, and EV
chargers has seen our potential
hazards proliferate in recent years.
Historically, the most potentially
hazardous places to work in our
business were our generation sites.
Those places still pose significant
threats, but the risks for our retail
activities have been steadily rising as
we have rolled out the Zero network
of EV chargers and introduced more
solar arrays over the last two years.
Control standards
and personal accountability
The increase in our retail operating
scope and the increase in new
projects being built mean that the
nature and complexity of our risks are
growing. Recognising the growing
risks we face, this year we sharpened
the Critical Safety Framework
introduced last year to focus on those
areas of our business that represent
the greatest threats of injury. It is
important to us that we set out
how we expect our contractors and
people keep themselves safe in these
technically challenging environments.
We combine detailed guidelines
with empowering people to make
situation-specific decisions, to
encourage ownership of safety
practices. Working closely with
our technicians, we have developed
standards that apply to our situations
but will also be relevant industry-
wide. For example, our Height Safety
Working Group has developed a
standard for tethering tools when
working at height.
These new control standards will
be rolled out from the beginning
of the new financial year.
Learning Teams deliver
Our Learning Teams initiative
came about when we formally
adopted a Safety 2 approach. This
approach stresses the importance
of collaboration, active learning
and identifying factors that could
contribute to unsafe situations. By
encouraging people to be open
and aware, our goal is to encourage
all our people to learn and adapt
before things go wrong.
A major revamp of our wellbeing strategy has seen
us promoting physical health, mental resilience and
a thriving work environment, to drive individual
health and the overall growth of our organisation.
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Learning Teams works because it is
a best practice approach. People
come together to discuss and
connect what happened in the
lead-up to an event, during the
event itself, and afterwards. This year,
we have also closely connected our
Learning Teams initiative to wellbeing
to ensure we consider everything
that’s relevant for our people at work.
Our goal is to normalise reporting as
a safe and encouraged process in our
work culture. Our safety management
system is a place where people
can log observations, and where
we offer rewards and recognition
for the best observation on every
site every month. By encouraging
people to be active safety observers,
we are making it as easy as possible
for them, including our contractors,
to record anything that concerns
them or situations where they see
opportunities for improvement.
HEALTH, SAFETY AND
WELLBEING POLICY
bit.ly/4oAkLlp
PEOPLE POLICY
bit.ly/3JwRhoh
Reportable injuries increased
Given the nature and scale of the
projects we have underway now and
into the future, we are focused on
construction safety. Across Aotearoa
6 Worksafe, Where we focus our effort: priority plans
New Zealand, construction accounts
for a significant portion of work-
related fatalities and serious injuries,
and according to WorkSafe has the
highest number of injury claims of all
industries
6
. Meridian is focused on
ensuring excellent reporting from
our construction partners when it
comes to near misses and actual
injury rates, so that we can proactively
work together on improving safety
outcomes on our construction sites.
Between good reporting, and the
sheer scale of development and
construction projects underway,
we anticipated that our reportable
injuries would increase this year. Our
total recordable injury frequency
rate for employees and contractors
per 200,000 hours worked was
2.45 (compared with 1.81 in FY24).
Having said that, out of the 18
reportable injuries (8 contractors and
10 employees) this year, 15 of them
were relatively minor and related to
slips, strains and minor cuts that either
needed rest to recover or cleaning and/
or stitching by a medical professional.
Just three resulted in time off work
greater than 15 working days.
While reporting of incidents was up,
there were no significant instances
of non-compliance with health and
safety laws and regulations, and we
paid no fines during the reporting
period. Our focus is on encouraging
a reporting environment where
people feel they can speak up about
what is happening. We continue
to educate our people and our
contractors about the importance
of complying with all workplace
safety reporting requirements.
Once again this year, we are not
aware of any significant instances
of injuries that went unreported.
See our Integrated Report Data Pack
for more information on our health
and safety metrics.
INTEGRATED REPORT DATA PACK
bit.ly/44yppqP
TRIFR is calculated per 200,000 hours and includes all lost time, medical treatment and
restricted work injuries for Meridian NZ employees and contractors only. While we have
incident numbers for Powershop New Zealand, Powershop Australia and offsite contractors,
the TRIFR cannot be calculated as the number of hours worked for those periods has not
been recorded. All data excludes offsite contractors.All data since FY22 excludes Flux.
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Celebrating
partnerships
Our partnerships are a large part of
how we do business given we rely
on sensitive and shared resources.
We look at these relationships as
long-term commitments that require
us to build trust and accept differing
viewpoints. Partnerships connect us
to communities and to local interests
and priorities, and they also enable
us to step back and see what we do
from different perspectives.
We recognise the need, as a major
Aotearoa New Zealand company,
to build our understanding of te ao
Māori, the Māori worldview. Strong
working partnerships with iwi are
helping us on our journey to meet the
expectations of Māori and improving
how we use and access natural
resources. We are embedding this
awareness in our business, aided by
Ki te hoe o te waka o te Hiringa
Kōmata, Meridian’s te ao Māori
strategy, with the purpose of growing
our collective understanding of
tikanga Māori across our business.
CODE OF CONDUCT
bit.ly/4dvYpuU
CODE OF CONDUCT
bit.ly/4dvYpuU
Powering up
communities
For the past 15 years, we’ve worked
to empower communities in areas
near our generation assets through
our Power Up Community Fund. Each
year, community-led panels allocate
funds to local projects that will make a
difference. We support projects with
the help of our local Power Up panels.
Power Up Ruakākā is our newest
community fund, providing grants for
projects in the communities closest
to Ruakākā that support sustainable
community development and long-
term relationships. We now have nine
Power Up community funds in place
and made funding contributions of
more than $650,000 towards 107
community-led projects this year.
LEFT
Representatives of Patuharakeke at
the blessing of our Ruakākā Solar Farm.
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Long-standing support
Nine years of supporting the Kākāpō
Recovery programme in partnership
with the Department of Conservation
(DOC) and Ngāi Tahu has led to
241 kākāpō being alive today. Our
funding supports many parts of this
world-class conservation initiative,
including in-kind support for electrical
infrastructure, technology and field
work volunteers. This partnership has
enabled the installation of energy-
efficient solar and electrical systems
in breeding facilities and rangers’
huts. It also allows our people a
chance to use their engineering
skills in a different environment
and even to experience the remote
kākāpō breeding islands.
This is our twelfth year as Principal
Partner of KidsCan. In that time,
we have partnered with KidsCan
to provide thousands of Kiwi kids
with the basics they need to
remove barriers to learning.
Find out more on our website.
COMMUNITY AND PARTNERSHIPS
bit.ly/4eCrRRV
Forever Forests
keep growing
Our Forever Forests programme is
enabling us to create our own carbon
sink to absorb some operational
emissions we cannot avoid from
2030 onwards. After six years, this
programme remains on track to
meet our target of growing the
carbon credits we need for offtake.
So far, more than 710,000 trees
have been planted, and 30,000,000
native seeds were sown in FY25.
Our goal is to supply 15,000 carbon
credits to help offset emissions.
Already, 480 hectares have been
registered in the Emissions Trading
Scheme and are producing the
desired carbon credits. Currently,
our operational emissions are offset
via Gold Standard Verified Emission
Reduction units. Forever Forests
allows us to grow our own credits
here in Aotearoa New Zealand
below the purchase costs of units
sourced elsewhere.
ABOVE
Meridian staff visiting Whenua Hou/Codfish Island to
provide support to the Kākāpō Recovery Programme.
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Evolving our practice
Our commitment to sustainability
means doing the right thing today so
our planet can survive and thrive in the
future. This year, we have focused on
revising our plan to step towards our
long-term Net Zero by 2050 target,
embed further social focus through
our new Human Rights Policy, and
continue to embed sustainability
in our construction practices as we
maintain and grow renewable energy
to support Aotearoa New Zealand’s
energy transition.
HUMAN RIGHTS POLICY
bit.ly/40BEwP4
Embedding sustainability
Sustainable practices continue to be
embedded into our Development,
Generation and operational teams
through adding people with those skills
and lifting everyone’s awareness of how
to apply sustainable practices every
day. Our Finance team is now directly
responsible for collating climate-related
disclosures – a shift in how we account
for our actions across Meridian. Our
Generation team is playing a key role in
our emissions reduction work, including
leading initiatives like the electric ferry
project and providing people and
resources that support us to reduce
emissions on the farms we have as
part of our operations.
Our Climate Action Plan captures many
of our objectives, with ambitious targets
for growing renewable electricity
generation, increasing customer
decarbonisation, and managing
our own resilience and emissions. In
parallel, our Board-approved Code
of Conduct guides how we act, our
business ethics, our commitment to
human rights and our alignment with
the principles of Te Tiriti.
CLIMATE ACTION PLAN
bit.ly/44ixrFv
CLIMATE-RELATED DISCLOSURES
bit.ly/3IeqYTr
CODE OF CONDUCT
bit.ly/4dvYpuU
GOVERNANCE POLICIES
bit.ly/46MKYVg
Making the
right start
The choices made at the strategy
and design phases of our large-
scale projects will have the biggest
aggregate impact over the life
of any asset. To help us identify
the biggest opportunities, our
updated sustainable infrastructure
framework guides people on how
to consistently apply sustainability
practices on our large infrastructure
projects. The framework applies to
the development and construction
of new renewable generation
assets, the handover of assets from
development to generation, and
any large generation projects.
Doing better by nature
We rely on nature to deliver
renewable energy for a better
Aotearoa New Zealand. Our
country remains highly vulnerable
to the impacts of climate change,
with very high rates of habitat loss
and degradation and the highest
proportion of native species at risk
of extinction.
As we continue to advance work
on our biodiversity roadmap this
decade, we have taken steps to
complete a consolidated stocktake
of our connections to biodiversity
across some of our assets. The first
mapping exercise has enabled us
to have clarity of where we have
comprehensive data, and where we
need to do more work to close the
gaps. We want all stakeholders to
better understand our impacts on
nature and the actions we’re taking
to mitigate those impacts. We now
have a comprehensive map of all
these impacts for our wind sites, and
this information will be a powerful
engagement tool for communities
interested in understanding their
environment and ways we can make,
and measure, a difference. A clear
and effective focus on nature will give
communities further confidence in
how we approach sustainability and
development and that, in turn, will
help with consenting processes
and other negotiations.
BIODIVERSITY COMMITMENT
bit.ly/3A56Ui8
ENVIRONMENT POLICY
bit.ly/3YtqxKT
Top ranking in our sector
We were pleased to be ranked #1
for our sector in the Dow Jones
Best-in-Class (DJBIC) Sustainability
Asia Pacific Index, an independent
global Standard & Poor’s (S&P)
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MERIDIAN ENERGY INTEGRATED REPORT 2025
index that ranks our environmental,
social and governance (ESG)
performance against like companies
in our region. This gives investors
and stakeholders independent
verification that Meridian's approach
to sustainability is leading the regional
benchmark. We have now set our
sights on transitioning to the DJBIC
World Index, which sets the highest
standards and provides further
independent validations of our
ESG performance for investors
and other stakeholders.
Doing right by people
Meridian's reputation as a high-
performing company requires us to
conduct business ethically, which
includes our wider supply chain.
This year, we refreshed our Modern
Slavery Statement and released our
first Human Rights Policy. Approved
by Meridian’s Board, it reflects
our commitment to respecting
internationally recognised human
rights in line with the United Nations
Guiding Principles on Business and
7 Excludes one-off construction emissions, investments and transmission and distribution company (TDC) Scope 3 emissions. Note, Meridian’s share of TDC Scope 1 and 2 emissions and maintenance-related Scope 3 emissions are
included on Meridian’s GHG Inventory. Only TDC Scope 1 and 2 emissions are included within Meridian’s target boundary.
Human Rights and our commitment
to value the protection of indigenous
rights and interests. Our Modern
Slavery Statement captures our
intentions to counter modern slavery
by mitigating the risks of exploitation
for people in our global supply chain.
Human rights speak to the inherent
value of all people, regardless of
background, and span everything
from the right to live to the right to
work and the right to rest and leisure.
Our Human Rights Framework and
Modern Slavery Statement identify
how we we embed due diligence
practices into our business.
As part of our commitment to human
rights, Meridian sets and monitors key
performance indicators and tracks
progress annually. Additionally, we will
seek independent advice to improve
our practices. We will also be asking
stakeholders’ views on how well we
are managing impacts, and whether
we are providing effective grievance
mechanisms. This will be done
through our third-party stakeholder
engagement research project.
We share our practices and policies
through our website, annual reports,
and internal channels like Meridian’s
intranet, mandatory sustainability
e-learning modules, and six monthly
risk forums as required. All employees
are required to complete training
on our Code of Conduct, which sets
out behaviours expected of staff
and also helps build understanding
of Meridian’s internal policies and
legal and regulatory obligations.
Additionally, we provide targeted
training on our human rights policy
for our staff and key stakeholders.
MODERN SLAVERY STATEMENT
bit.ly/4lKoVVG
HUMAN RIGHTS POLICY
bit.ly/40BEwP4
Adjusting our Half by 30 targets
We are making changes to Half by 30,
the part of our Climate Action Plan
that focuses on reducing emissions.
The targets and method for Scope
1 and Scope 2 – those emissions
in our direct control – will stay the
same. This covers the vehicles we
drive, the ferry we own and operate
at Lake Manapōuri, and the sulphur
hexafluoride (SF6) emissions from
plant across our generation assets.
Pleasingly, we remain on track to
halve our Scope 1 and Scope 2
absolute emissions by 2030.
However, we’re changing the way
we target Scope 3 emissions – those
in our supply chain, accounting for
over 95 percent of our business
base-year emissions. These will now
be measured on an installed capacity
megawatts intensity measure,
allowing us to balance reducing our
emissions alongside continuing to
build renewable assets and increasing
our generation capacity to support
the country to decarbonise. We are
targeting a 51.6 percent reduction
in our emissions per megawatt of
capacity
7
, which is still ambitious
and remains science-aligned.
Our 7 in 7 development target
goal will deliver 2,000GWh of new
renewable generation and 200MW
of BESS capacity by 2030. Our
revised plan and targets will now also
include our one-off emissions from
construction, where 80 percent of
emissions will be in scope of science-
aligned targets our suppliers have set.
Construction emissions from our
development programme will be
accounted for in our revised emissions
target, given their materiality. For
transparency, we will also continue to
have project-specific targets, but these
are currently excluded and managed
on a project-by-project basis as a part
of our Sustainability Management
Plans for these assets.
We released our first Human Rights Policy which reflects
our commitment to respecting internationally recognised
human rights in line with the United Nations.
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ABOVE
Reducing our travel emissions through our EV fleet.
By realigning our science-based
targets to include these emissions,
we aim to increase transparency of
our emissions reduction efforts and
to provide flexibility to invest in the
future growth of renewables, the
energy sector, and the security of
supply that the country needs. By
FY29, we expect that 80 percent of
these construction emissions will have
science-based targets through the
suppliers we work with.
Our new 2030 Scope 3 targets will
allow us to continue to deliver change
in terms of reducing emissions, while
maintaining a leading position for our
investors, customers and communities
and reflecting the current needs
and future growth of our sector.
In line with all of the above changes,
we have revised our Emissions
Reduction Plan (ERP) to identify the
four areas where we will focus to
achieve our Half by 30 goal.
1. Our Good Energy supplier
programme and introduction of
the Oracle Finance suite will help
us reduce our emissions from
purchased goods and services.
We’ll work with our suppliers to
build their emissions reduction
capability, including reporting
accuracy and target setting.
2. We’ll continue working within
the sector through a cross-sector
working group to encourage and
support them to reduce their own
Scope 1 and Scope 2 emissions
which impact our Scope 3 target.
3. Farm-specific action plans will help
us identify opportunities to reduce
emissions and what this means for
future development activities.
4. We will continue managing our
own travel and commuter emissions
and important initiatives like the
electric ferry and electrifying our
vehicle fleet.
An important consideration for us
in the arrangements we’ve made
with the wider sector is to keep
thermal energy (such as gas and
coal) available in the medium term
as a back-up in the event of another
deep dry-year event. Refer to our
Climate-related Disclosures for an
overview of these arrangements
and GHG accounting treatment.
For more details, see our Climate
Action Plan.
CLIMATE ACTION PLAN
bit.ly/44ixrFv
CLIMATE-RELATED DISCLOSURES
bit.ly/3IeqYTr
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Meridian Group GHG emissions
tCO
2
eFY21FY22FY23FY24FY25
Scope 11,0206431,1911,061714
Scope 2 (market based)142221
Scope 3 operational34,18836,42734,73839,33747,0 9 9
Total Group operational emissions
*^
35,2223 7,07 235,93140,40047,814
Scope 3 one-time construction
and upgrades
2858,24914,29575,2893,048
Scope 3 investments
^
–––1421
Total Group value chain emissions
^
35,50745,32150,226115,70350,883
* Meridian’s operational emission boundary includes all Scope 1, 2 and 3 categories, excluding all one-time
construction emissions from major projects and all activities that are capitalised as part of renewable
energy projects.
^ Restatements and recategorisation: In FY22 Meridian Group reset its baseline to FY21 to account for the sale
of the Australian business and to ensure that our most recent GHG inventory was used in our commitment
to set near and long-term company-wide emission reductions in line with science-based net-zero with the
Science Based Target initiative (SBTi). Our FY21 Scope 3 operational emissions were restated in FY25 as a
result of the acquisition of current farming land, resulting in an increase of 2,367tCO
2
e. Scope 3 emissions for
FY22, FY23 and FY24 were also restated to include this activity. Scope 3 one-time construction emissions was
overstated by 7tCO
2
e in FY22 and has been restated. Emissions from investments were previously reported
as part of Scope 3 operational emissions. These emissions are now reported in Scope 3 investments, as
Meridian does not have operational control of these emissions.
Gross location-based energy indirect (Scope 2) emissions was 2,430tCO
2
e in FY25.
Group emissions are offset, using Gold Standard Voluntary Emissions Reductions (GS VERS) after taking into
account credits cancelled by suppliers against their own emissions.
The requirements of GRI 305-1 to 305-4 are derived from the Meridian Greenhouse Gas Emissions Inventory
Reports for the relevant financial years. Scope 1 and 2 emissions have reasonable assurance and Scope 3
emissions have at least limited assurance.
During the reporting period Scope 2 biogenic emissions were de minimis, and there was no CO
2
emissions
from combustion of biomass.
Quantities of each greenhouse gas are converted to tonnes CO
2
e using the global warming potential
from the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report. Meridian applies
the operational control consolidation approach to the Meridian Group emissions inventory. GHG emissions
sources from the Meridian Group value chain were identified with reference to the methodology described
in the GHG Protocol Corporate and Scope 3 Standards and, ISO 14064-1, and classified into categories.
Further information is available in the Greenhouse Gas Emissions Inventory Report 2025.
GREENHOUSE GAS EMISSIONS
INVENTORY REPORT
bit.ly/4lhI6GB
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About us
IMAGE
Harapaki Wind Farm,
Hawke's Bay.
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Our commitment to
effective governance
Our Board closely monitors the way we
manage the aspects of our business
we consider long-term drivers of value.
These include retaining access to water,
building employee engagement,
investing in new assets, enhancing
environmental performance, advancing
climate-related opportunities, satisfying
customers, and building our reputation
and brand.
Strategy days and regular meetings
allow Directors to question and
challenge the Executive Team on the
direction it wishes to take the business.
These occasions provide opportunities
to improve the Board’s collective
knowledge of matters highly relevant
to Meridian’s operations and strategy.
Corporate governance
framework
The Board sets Meridian’s overall
appetite for risk and approach to risk
management. Our FY25 Corporate
Governance Statement summarises
our key risks.
CORPORATE GOVERNANCE STATEMENT
bit.ly/4nAPfmL
The company’s governance
framework is designed to ensure
the highest standards of business
behaviour and accountability.
Accordingly, the Board has adopted
corporate policies and procedures
which reflect best practice in
Aotearoa New Zealand and Australia,
incorporating principles and guidelines
issued by the Financial Markets
Authority and recommendations
by the NZX and ASX. We comply
with the NZX Corporate Governance
Code recommendations in all
material respects (except
Recommendation 3.6).
Key policies
Processes for managing conflicts
of interest are found in the Board
Charter and supported by the
Meridian Whistleblowing Policy.
This includes the requirement for
Directors to disclose, and take all
reasonable steps to avoid actual,
potential or perceived conflicts of
interest. A register of dealings in
securities and declarations of
interests are reported at each
Board meeting. Directors are
expected to inform the Chair of
transactions with any related party.
The number of Code of Conduct
breaches is disclosed annually in our
Corporate Governance Statement.
Our key governance charters and
policies are on our website.
A wide range of internal stakeholders
are typically involved in the design
and iteration of Meridian’s policies,
such as the Code of Conduct and
Whistleblowing Policy. All Meridian
policies are subject to regular
review and iteration in the light
of feedback from stakeholders
across the business.
Meridian's policy implementation
approach aims to set clear
responsibilities at the Executive
level, and to deliver an integrated
governance and operational
framework. The Board approves
policies and are the highest decision-
making body for implementation.
Committees assist the Board
in fulfilling its role on specific
responsibilities. Our process to
document, approve and implement
policies is in Meridian’s Corporate
Policy Guidelines which provide the
implementation framework from
Board and Committee Charters,
corporate policies, and management
initiatives through to guidelines and
procedures.
Our Executive Team is responsible
for compliance in their respective
business unit with internal policies,
including the Group Code of Conduct.
They provide monthly compliance
statements to the Chief Executive, as
required by our Compliance Policy.
This implementation approach applies
across a range of policies, including
those relating to the environment,
health, safety and wellbeing, cyber
security, and consumer care.
Our Human Rights programme will
look to continuously improve our
grievance and remediation processes,
including using stakeholder feedback
to improve its design and operation.
WHISTLEBLOWING POLICY
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CODE OF CONDUCT
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GOVERNANCE CHARTERS
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HUMAN RIGHTS POLICY
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Our commitment to sustainable
development is embedded at a
governance level through policies
such as our new Environment
Policy. This policy outlines a suite
of environmental commitments
spanning our operations and
major project partners. It sets out
responsibilities at the Executive level
and addresses how initiatives will be
embedded into company processes.
Our approach to managing our
impacts on the economy, the
environment and people is evident
throughout the policy document.
ENVIRONMENT POLICY
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The role of our Board
The primary role of the Board is to
effectively represent and promote
the interests of shareholders with a
view to adding long-term value to
the company’s shares. It directs and
supervises the management of the
business affairs of Meridian, including:
• Providing leadership, setting
strategic objectives (including
climate-related strategic objectives)
and overseeing the development,
adoption and communication of
a clear strategy.
• Approving Meridian’s publicly
available, annually produced reports
including the Integrated Annual
Report, Climate-related Disclosures,
Climate Action Plan, Greenhouse
Gas Emissions Inventory and
Modern Slavery Statement.
• Ensuring Meridian has
appropriate and effective risk
management practices in place
relating to environmental, social
and governance (ESG) issues,
including climate-related risks
and opportunities.
The Board has established four
standing Committees:
• Audit and Risk Committee
• People, Remuneration, and
Culture Committee
• Safety and Sustainability Committee
• Cyber Security Committee.
Our Board members
Meridian recruits Board members
with a range of skills and experience.
There are currently four women and
three men on the Board, providing
a healthy gender balance. While
the company’s constitution does
not require it, our Board has a view
that the relationship with Ngāi Tahu,
which has mana whenua (authority)
over the majority of the South Island
where most of our assets are located,
is so important that a position on the
Board for someone with connections
to Ngāi Tahu is always considered.
This role is currently undertaken by
Tania Te Rangingangana Simpson.
Our stakeholders are diverse and
include shareholders of all sizes,
customers, electricity consumers,
the Government, and members of
the communities and environments
we operate within. We believe that
a healthy diversity of expertise and
perspectives amongst members
of the Board is the most practical
and effective way to ensure that
stakeholder perspectives can be
represented and weighed. We have
designed our director's skills matrix to
ensure that a suitably diverse breadth
of perspectives and experience are
available to our Board.
Biographies of our Directors and the
Management team are available
on our website. All Directors are
independent.
MERIDIAN DIRECTORS’
BIOGRAPHIES
bit.ly/3YxZQ7Y
Further information on the skills and
tenure of Board members and the
Board’s composition can be found
in the FY25 Corporate Governance
Statement. The Board as a whole
considers the need for additional or
replacement Directors, subject to the
limitations set out in the company’s
Constitution. In doing so, the Board
considers the skills, experience and
diversity of the Board, and what is
needed or desirable for the Board
to fulfil its governance role and
contribute to the long-term strategic
direction of Meridian. The Board has
an established process for selecting
suitable candidates for appointment
and reappointment to the Board. The
process, which starts with a Board
evaluation and the development of a
Board skills matrix, ensures that:
• proper checks are done
• shareholders are provided with
key information about a candidate
to help in their decision-making
(this includes any material adverse
information revealed by checks).
The Board appoints members to
committees based on the needs of
Meridian, relevant legislative and
other requirements, and the skills and
experience of the individual Directors.
The Board undertakes an annual
assessment of its performance,
including its performance against
the requirements of its Charter in
relation to Meridian’s commitment
to sustainable development,
the performance of individual
Committees, and the performance of
individual Directors. Every alternate
year, the Board commissions an
independent party to undertake an
assessment of its performance, with
the most recent review completed in
FY24. Actions from the most recent
Board evaluation included:
• Board and management to place
greater focus on strategic risks
arising from the weakening gas
sector in Aotearoa New Zealand
• Greater emphasis on active
listening in management and
Board interactions.
More information on the nomination
and selection process for Board and
Committee appointments, including
criteria used, is provided in the Meridian
Constitution and its Board Charter.
GOVERNANCE CHARTERS
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Our Board
FIND OUT MORE
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David Carter
APPOINTED
SEPTEMBER 2023
Julia Hoare
APPOINTED
SEPTEMBER 2019
Tania Simpson
APPOINTED
SEPTEMBER 2021
Mark Verbiest
APPOINTED
MARCH 2017
APPOINTED
CHAIR OCTOBER 2019
Michelle Henderson
APPOINTED
OCTOBER 2019
Nagaja Sanatkumar
APPOINTED
JANUARY 2020
Graham Cockcroft
APPOINTED
JULY 2022
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Our Executive Team
FIND OUT MORE
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Tania Palmer
GM GENERATION
Jason Stein
CHIEF PEOPLE OFFICER
Rory Blundell
GM STRATEGY &
PORTFOLIO
Lisa Hannifin
CHIEF CUSTOMER
OFFICER
Jason Woolley
GENERAL COUNSEL &
COMPANY SECRETARY
Mike Roan
CHIEF EXECUTIVE
OFFICER
APPOINTED JULY 2025
Bharat Ratanpal
CHIEF INFORMATION
OFFICER
Guy Waipara
GENERAL MANAGER
DEVELOPMENT
Claire Shaw
GM CORPORATE AFFAIRS
& SUSTAINABILITY
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Clean energy matters
Meridian has the scale and resources to
help secure a clean energy future that
helps people thrive and leaves our planet
in better shape for future generations.
HYDRO STATIONS
WIND FARMS BESS
78
INCLUDING ACQUISITION
OF NZ WINDFARMS
1
~
30%
MERIDIAN'S GENERATION OF
NEW ZEALAND’S ELECTRICITY
17%
RETAIL ELECTRICITY
MARKET SHARE
100%
RENEWABLE ENERGY GENERATION
IN AOTEAROA NEW ZEALAND
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How we create value
Meridian Energy generates
electricity from 100 percent
renewable sources – wind, water
and sun. As a vertically integrated
company, the Meridian Group’s
activities range from generation,
to the development of new assets,
to the retailing of electricity.
We look to take care of our
customers, people, local communities,
iwi and the environment.
This approach strengthens our
ability as a significant publicly
listed company to deliver attractive
shareholder returns and value to
all our stakeholders. In fact, we
see it as the only responsible way
forward for people and the planet.
MAJORITY-OWNED BY
THE NZ GOVERNMENT
LISTED ON BOTH
THE NZX + ASX
Sustainability
Our commitment to sustainability is embedded in our strategy and comes to life through what we do and how
we do it. Sustainability to us means doing the right things today so our planet and all it sustains can survive and
thrive in the future. This means acting responsibly for our planet, making it easy for our customers to reduce their
emissions, supporting local communities to thrive and striving to be a more sustainable company.
Generation
of renewable
electricity
We generate around 30% of Aotearoa
New Zealand’s electricity – and all from
100% renewable sources. Meridian
owns and operates seven hydro power
stations and eight (including acquisition
of NZ Windfarms) wind farms. We also
have power purchase agreements with
a number of customers that see us own
and operate commercial-scale solar
on customer properties and sell the
generation back to the customers.
Deliver cleaner,
cheaper energy
Meridian is one of New Zealand’s largest
retailers of electricity. We supply power
to more than 400,000 residential and
business customers across the country
through our Meridian and Powershop
brands. We’re committed to building
two-way relationships with our customers
– helping them achieve the benefits of
decarbonisation and rewarding them
for playing a role in making the country’s
electricity system more flexible.
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Our material impacts
Meridian is committed to identifying
and reporting on the impacts we have
on the environment, stakeholders and
society, including human rights. We do
this whether these impacts are positive
or negative, and for impacts which are
both actual and potential.
We adopt a double materiality
approach, considering our impacts
on the environment, stakeholders
and society, as well as how these do
or may impact our financial position.
Governance
Our Board approves our material
topics (groups of material impacts)
on an annual basis. These are
presented to the Safety and
Sustainability Committee and then
approved by the Board. Updates
on key initiatives related to our
management of material impacts
are provided throughout the year
in quarterly meetings of the Safety
and Sustainability Committee.
How we identify material impacts
Last year we adopted a new
approach for assessment of material
impacts, alternating between review
and reassessment years. FY25 was
our first reassessment year which
involved a three-step approach.
We began by reviewing our business
strategy, we captured stakeholder
feedback through our Stakeholder
Research Project (delivered by
Kantar), and also engaged a
sustainability consultancy to
conduct a desktop study.
We then held an internal workshop
to review the potential impacts
gathered from the above steps,
and to consider others before
agreeing which impacts should
be carried forward into the impact
assessment process.
One new impact was added as a
result of this work – ‘supporting
companies to increase renewable
generation through partnerships
and offtake agreements’ – reflecting
recent innovations in our approach
to securing new renewable energy.
More information about this approach
is available on our website.
OUR MATERIAL IMPACTS
bit.ly/46UIdDk
Our process for determining
our most significant impacts
for reporting
We measure our material impacts
in line with Global Reporting Index
(GRI) Standards. To report double
materiality, we assess impacts based
on their social and environmental
impact and financial impact.
An internal assessment is carried
out for each impact, and this year
we also obtained stakeholder
feedback through Kantar, using
the GRI framework as the basis
for 100 stakeholder interviews
and 98 online surveys. We then
took the average of the social
and environmental impact scores.
A significance score for financial
materiality was obtained by having
a group of internal finance and risk
experts rate the potential financial
implications of each impact over
time. Impacts were then ranked
based on the higher of their social
and environmental impact or
financial impact scores.
In order to determine impacts and
topics for reporting, we applied
a minimum threshold (45/100) to
the two scores. This produced 16
impacts. Material topics were then
scored and ranked by combining
the social and environmental impact
and financial impact scores for each
impact above the threshold. Closely
related material impacts are grouped
into material topics.
Our FY25 material topics in order of
priority are:
MATERIAL TOPICMATERIAL IMPACT
Renewable
energy
generation
Increasing
renewable energy
Generating
renewable energy
Supporting third-
party generation
Ngā tukinga o
te ao Tūroa –
impacts on the
natural world
Cultural wellbeing
River quality
Natural ecosystems
AffordabilityEnergy affordability
Energy wellbeing
Climate-related
impacts
Security of supply
Customer
decarbonisation
Customer emissions
Public trustPublic trust
Emissions and
waste
Emissions and waste
Cyber and
physical security
Cyber and
physical security
PeopleEmployee wellbeing
‘Public trust’ was an addition this year,
reflecting the political and media
scrutiny being experienced by the
industry. ‘Supporting communities’
was reported in FY24 but did not
make this year’s threshold.
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Stakeholder engagement
We engage with stakeholders who
do or may experience significant
impact through our activities. This
year we captured the feedback of
198 stakeholders through Kantar’s
research. These stakeholders included:
• Central and local government
• Communities around our assets
and developments
• Customers
• Electricity sector
• Industry experts
• Interest groups
• Investors
• Joint venture partners
• Mana whenua
• Sponsorship and programme
partners
• Suppliers
• Sustainability experts
The graph shows the weighting
of each material impact using
both financial and social and
environmental lenses.
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Policies, commitments and targets progress table
INCREASING RENEWABLE GENERATIONMATERIAL TOPIC: RENEWABLE ENERGY GENERATION
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian is directly helping Aotearoa New Zealand make further emissions reductions by building
new energy generation and storage assets
Committed to having seven grid-scale renewable generation
projects projects underway by 2030
KEY ACTIONS IN FY25TARGETS AND PROGRESS
• Construction and commissioning of Harapaki Wind Farm completed July 2024
• Construction of Ruakākā Battery Energy Storage System completed by June 2025
• Construction of Ruakākā Solar Farm commenced March 2025
• Consents for Mount Munro Wind Farm approved February 2025
• Consents for Manawatū Battery Energy Storage System approved November 2024
• Consents lodged for solar farms at Swannanoa and in the Waikato
• Meridian acquisition of NZ Windfarms approved by shareholders
Also see:
• Grow renewable generation ‘Delivering beyond 7 in 7’
As included in our strategy:
Grow renewable generation
• 3TWh p.a. of new renewable generation and 200MW of BESS capacity
delivered by 2030 (176MW Harapaki Wind Farm completed, 130MW
Ruakākā Solar Farm underway and 100MW Ruakākā battery completed)
• Deliver 200MW of restored and 300MW of new capacity from our
current generation portfolio by the end of FY28 from a FY23 baseline
(achieved net 8.3MW of restored capacity and 111.6MW of new capacity
in FY25)
Also, refer to the GRI index and see our FY25 Climate-related Disclosures
(PR2 and TR1)
GENERATING RENEWABLE ENERGYMATERIAL TOPIC: RENEWABLE ENERGY GENERATION
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian directly minimises Aotearoa New Zealand’s greenhouse gas emissions by
generating 100 percent renewable energy, which represents approximately 30 percent
of Aotearoa New Zealand’s total electricity consumption
Committed to only generating electricity from 100 percent
renewable sources
Committed to improving and sustaining the health of our
renewable generation assets
Committed to delivering operational flexibility while sustaining
asset productivity
KEY ACTIONS IN FY25TARGETS AND PROGRESS
We have undertaken a range of initiatives to maximise the availability of our assets and reduce
‘parked megawatts’. These include:
• Returning capacity of West Wind Farm to full capability through installing a loan transformer (+45MW)
• Return of Manapōuri Unit 6 through installation of new transformer (+128MW)
• Restored 29MW at our wind farms at White Hill and Te Āpiti
• Up-rating of units at Aviemore from 55MW to 57MW each (+8MW)
We have also implemented initiatives to enable our renewable generation capacity to supply
more in peak demand periods:
• Flexible and off-peak outage scheduling
• Approximately 238 fewer annual routine outage days through maintenance innovation,
review and rationalisation
Also see:
• Grow renewable generation
• Deliver operational excellence ‘Making the most of what we have’
Under normal market operations, to maintain generation market share of
at least 30% (31.4% achieved in FY25)
Achieved the following levels of plant availability:
• Hydro 91% (FY25)
• Wind 89% (FY25)
Remove 100 days from the outage calendar by end of FY25
(approximately 238 days achieved)
Grow renewable generation
• Deliver 200MW of restored and 300MW of new capacity from our
current generation portfolio by the end of FY28 from a FY23 baseline
(achieved net 8.3MW of restored capacity and 111.6MW of new capacity
in FY25)
Also refer to the GRI index
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SECURITY OF SUPPLYMATERIAL TOPIC: CLIMATE-RELATED IMPACTS
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian has a direct ability to enhance Aotearoa New Zealand's security of supply through
how we manage operational risks related to natural disasters and climate change (e.g. dry-year
water shortages, excess water and physical damage to generation infrastructure)
Committed to annually assessing, managing and disclosing
our climate-related risks and opportunities in compliance with
the Aotearoa New Zealand Climate Standards
KEY ACTIONS IN FY25TARGETS AND PROGRESS
• Delivered 500 gigawatt-hours of additional supply through our demand response agreement
with NZAS
• Introduced new capacity to the system through the completion of Harapaki Wind Farm and the
Ruakākā BESS
• Underwrote agreements with Methanex and negotiated agreements alongside other gentailers
to ensure thermal capacity remains in winter 2025 and beyond
• Published a comprehensive disclosure on risks and opportunities related to climate-related impacts
and related management actions (see our FY25 Climate-related Disclosures). Note PR 2 (increased
hydro inflow volatility), PR3 (severe weather events) and PR4 (supply chain disruptions)
• Worked in collaboration with community groups and the Guardians of the Lakes to adjust guidelines
for Lakes Te Anau and Manapōuri around use of storage to allow an extra 45Gwh of energy generation
• Robust planning methodologies for protecting plant and returning on line, including processes related
to solar events, flood management processes, and Alpine fault 8 (AF8)
Also see:
• Grow renewable generation ‘Working with others to deliver a resilient energy system’,
‘Using our flexible demand response agreement with NZAS’ and ‘Delivering beyond 7 in 7’
• Deliver operational excellence ‘Addressing volatility’
See our FY25 Climate-related Disclosures (PR2, PR3 and PR4) for our
targets and progress against these in FY25
CULTURAL WELLBEINGMATERIAL TOPIC: NGĀ TUKINGA O TE AO TUROA – IMPACTS ON THE NATURAL WORLD
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian directly impacts the cultural wellbeing of some iwi and their relationship with the land,
water, biodiversity and other taonga through the construction and operation of generation assets
Committed to meaningful engagement with mana whenua in
asset catchments to address cultural and environmental impacts
Meridian’s te ao Māori ‘Ki te hoe o te waka’ strategy
Updated Meridian’s Biodiversity Commitment to minimising
our impact on biodiversity
Relevant policies:
• Committed to Te Tiriti o Waitangi in our employee
Code of Conduct
• Committed to valuing the protection of indigenous values
and interests in our Human Rights Policy
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KEY ACTIONS IN FY25TARGETS AND PROGRESS
• Continued implementation of the 35-year agreement (kawenata) signed in FY23 with Waitaki rūnaka
• Continuation of our mitigation elver trap and transfer programme
• Continued engagement with local hapū at Ruakākā and Harapaki, including the appointed
cultural monitors for these projects
• Continued representation of iwi on the panels of our Community Decarbonisation Fund that
allocate the funding, and continued access for iwi who are affiliated to the area but may not
reside there
• Continuation of our mitigation and remediation partnership commitment to the Te Waiau
Mahika Kai Trust
• Established the whanake workstream with the purpose of growing our collective understanding
of tikanga Māori across our business
Also see:
• Grow renewable generation: ‘Re-consenting the Waitaki Power Scheme’
• Grow capability and culture: ‘Diversity affected by restructure’ and ‘Celebrating partnership’
As included in our strategy:
Grow capability and culture
• By FY29 to have achieved tangible outcomes of the kawenata, with
key actions of value identified, shared and carried over to other iwi
relationships. Progress is on track
For progress, refer to the GRI index
RIVER QUALITYMATERIAL TOPIC: NGĀ TUKINGA O TE AO TUROA – IMPACTS ON THE NATURAL WORLD
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian directly impacts the health of certain river systems as a result of modified
water flows caused by hydro structures and water management
Committed to minimising our impact on biodiversity by
applying avoidance, remediation, mitigation, offsetting,
restoration and compensation approaches, in line with all
environmental legislation and resource consent conditions,
as per Meridian’s Biodiversity Commitment
Committed to complying with all applicable local and
international environmental laws and regulations, as per
Meridian’s Environment Policy
KEY ACTIONS IN FY25TARGETS AND PROGRESS
• Achieved zero instances of significant environmental non-compliance breaches with
regulatory requirements regarding water use
• Continuation of our mitigation and remediation partnership commitment to the Te Waiau
Mahika Kai Trust
• Submitted an application to Environment Canterbury seeking to re-consent the Waitaki
Power Scheme for an additional 35 years with no increase in our current water flows
• Obtained resource consent for a deeper channel behind the Lake Manapōuri control
structure that would enable works to improve flushing flow delivery to the lower Waiau River
Also see:
• Grow renewable energy generation: ‘Re-consenting the Waitaki Power Scheme’
Zero significant instances of environmental non-compliance. Significance is
defined by impact severity and sectoral benchmarks. Four minor incidents
included three breaches of consent and one discharge . The process for
setting this target reflects a compliance component to align with the
commitments and objectives in Meridian’s Environment Policy, which is
formally approved by the Board via its Safety and Sustainability Committee
As included in our strategy – by FY29, tangible outcomes of kawenata
reflect agreements with Ngāi Tahu, as mana whenua for the local area
where Meridian’s hydro-electricity generation operations exist. Key
actions of value are identified, shared and carried over to other iwi
relationships (on track)
Also refer to the GRI index
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CUSTOMER EMISSIONSMATERIAL TOPIC: CUSTOMER DECARBONISATION
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian is directly helping customers reduce their emissions or increase renewable generation
through its products, pricing and use of new technology
Committed to a focus on transport, distributed generation
and storage, demand flexibility, process heat, and certified
renewable energy to enable customer decarbonisation
(as per our FY25 Climate Action Plan)
KEY ACTIONS IN FY25TARGETS AND PROGRESS
Key initiatives included:
• Expanded Zero public EV charging network, including the opening of our charging station
at Springs Junction
• Development of home and business EV charging solutions
• Commercial solar Power Purchase Agreements to allow businesses to utilise more renewable
energy without the upfront capital investment
• Increased sales of Renewable Energy Certificates and growing the number of community
projects supported through our Community Decarbonisation Fund
Also see:
• Deliver cleaner, cheaper energy ‘Zero charging network expands’ and
‘Helping businesses decarbonise’
Also see:
• T01 in our FY25 Climate-related Disclosures
As included in our strategy:
Grow renewable generation
• 1,000GWh of process heat under contract by 2030
Deliver cleaner, cheaper energy
• Install an additional 75 fast chargers by the end of FY25
• Increase Community Decarbonisation Fund distributions
by $1.5m in FY25
• For progress against targets, see our FY25 Climate-related
Disclosures (T01) and Table 14
Also, see our FY25 Climate Action Plan
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PUBLIC TRUST IN NEW ZEALAND’S ELECTRICITY SYSTEMMATERIAL TOPIC: PUBLIC TRUST
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian is directly impacting the level of public trust in Aotearoa New Zealand's electricity
system (e.g. through our perceived value for money, market conduct, and influence on
wholesale pricing and security of supply)
Committed to doing the right thing, acting with integrity
and honesty (as stated in our Code of Conduct)
KEY ACTIONS IN FY25TARGETS AND PROGRESS
Key initiatives included:
• Launching new products (including Four Hours Free and Smart Hot Water) to provide
greater value to residential customers
• Launched a new brand campaign to showcase the benefits of our Community
Decarbonisation Fund
• Undertook a two-year stakeholder research project to benchmark, better understand
and improve our relationships with all stakeholders
• Maintained an open and transparent approach with media and government, including
participating in government and taskforce reviews into the electricity sector
• Carefully managing our generation portfolio and utilising hedges and demand response
agreements to help maintain security of supply during winter 2024
• Supporting communities through our Power Up and Community Decarbonisation funds
Also see:
• Grow renewable energy generation ‘Hedging’ and ‘Questions about competition’
• Deliver cleaner, cheaper energy
• Grow capability and culture ‘Powering up communities’
Our targets and metrics are based on trust in Meridian, as this
is a direct way in which we can influence trust in the sector
Our target is 60%* public trust by 2034 as measured through
independent research (increased from 30% in April 2024 from
a baseline of 40% in April 2025)
* based on the average of a sample of market-leading brands from other industries.
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CYBER AND PHYSICAL SECURITYMATERIAL TOPIC: CYBER AND PHYSICAL SECURITY
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian can directly lessen the impact of physical and cyber attacks to its operations, customers,
suppliers and business partners through its cyber and broader security approach
Committed to adhering to industry regulations and
standards, and to proactively managing cyber risks
Commitment to aligning with Australian Energy Sector
and New Zealand National Cyber Security Centre cyber
security frameworks
Relevant policies:
• Cyber Security Policy for third parties
• Information Classification and Protection Policy
KEY ACTIONS IN FY25TARGETS AND PROGRESS
As per our Cyber Security Strategy 2024-2025, our key actions in FY25 were:
• Strengthening security governance by creating a dedicated Cyber Security Board Committee
• Enhancing our third-party and supply chain cyber security risk programme to ensure suppliers adhere
to our policies and that Meridian continuously monitors and manages supply chain security risks
• Advancing our security culture and awareness through industry best practices and a security
awareness maturity model that ensures Meridian continuously improves its security posture
and human-cyber risk management
• Conducting a cyber security crisis simulation exercise
• Continuing with physical security programme
Also see:
• Deliver operational excellence ‘Using AI intelligently’
• Number of serious cyber security incidents (KPI 0 cases, progress 0 cases)
• Number of cyber security incidents that resulted in a privacy breach
(KPI 0 cases, progress 0 cases). Refer also to the GRI index
• Installation of gates, fences, doors and windows protecting external
zone (FY25: Zones 2 and 3 internal areas secure)
• 151 actions completed, 102 actions remaining for closure, end FY27/28
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NATURAL ECOSYSTEMSMATERIAL TOPIC: NGĀ TUKINGA O TE AO TUROA – IMPACTS ON THE NATURAL WORLD
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian can negatively impact natural ecosystems associated with or in proximity to its
land and operational assets
Committed to minimising our impacts on biodiversity by
applying avoidance, remediation, mitigation, offsetting,
restoration and compensation approaches, in line with all
environmental legislation and resource consent conditions
Committed to complying with all applicable local and
international environmental laws and regulations
Relevant policies:
• Biodiversity and no net deforestation commitment
• Environment Policy
KEY ACTIONS IN FY25TARGETS AND PROGRESS
Updated our commitment to biodiversity. Meridian undertakes mitigation, restoration and
compensation programmes with external stakeholders, involving:
• Compliance with existing resource consent requirements to mitigate and compensate
(including offsetting) for impacts on biodiversity
• Continuation of the elver trap and transfer (mitigation) programmes in the Waiau and
Waitaki catchments with Ngāi Tahu
• Creation of wetland biodiversity offsets as part of new wind farm (Harapaki) and newly
consented solar farm developments (Ruakākā Energy Park)
Meridian also continues to undertake a range of voluntary projects, including:
• Its ongoing partnership with the Department of Conservation as national sponsor of the
Kākāpō Recovery Programme
• Investment in permanent forests in Aotearoa as a carbon sink, transitioning to native forests
in time and producing broader biodiversity and community benefits
• To better understand its biodiversity impacts and dependencies, Meridian has also undertaken
an evaluation of the biodiversity values and impacts associated with or within close proximity
of its operational wind farms and Forever Forest areas
Also see:
• Grow capability and culture ‘Long-standing support’, ‘Doing better by nature’ and
‘Forever forests keep growing’
See our FY25 Climate-related Disclosures (TO2) and the Metrics and
Targets section for our targets and progress against these in FY25
In addition, refer to Integrated Report Data Pack ‘Community
engagement, impact assessment and development’ table for impacts
relevant to operation and construction of our assets (including wind farms,
hydro and solar)
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ENERGY AFFORDABILITYMATERIAL TOPIC: AFFORDABILITY
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian is directly reducing the overall cost of energy for customers through pricing
and product innovations
Committed to creating a more flexible energy system that
enables smarter use of electricity in a way that delivers value
for customers
KEY ACTIONS IN FY25TARGETS AND PROGRESS
• Committed to supporting large customers with longer-term contracts that can take the sting
out of short-term prices
• Launched new residential demand flex product (Smart Hot Water)
• Launched new Smart EV Charging and Four Hours Free products
• Continued to trial innovative home energy propositions such as smart charging for EVs and
hot water load shifting
• Supporting plans such as our EV Plan (which includes six months worth of free EV charging
and up to 50 percent off our standard rates at select hours) and our Solar Plan (which enables
households to lock in market-leading buy-back rates for three years)
Also see:
• Grow renewable generation ‘Hedging’
• Deliver cleaner, cheaper energy ‘New products saving customers money’
• Our FY25 Climate Action Plan
As included in our strategy:
Grow renewable generation
• 20,000 residential customers on demand flex product by end
of FY26 (achieved 16,500 by end FY25)
• Target now reset to 30,000 by end of FY26.
In addition, refer to the GRI index and our FY25 Climate Action Plan
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ENERGY WELLBEINGMATERIAL TOPIC: AFFORDABILITY
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian is directly improving the wellbeing of customers experiencing energy hardshipCommitted to supporting 5,000 customers in hardship
through our Energy Wellbeing Programme
Committed to continued connection for customers in
debt who are actively engaging with us, in line with our
Consumer Care Obligations
Committed to full alignment to Electricity Authority
Consumer Care Obligations
Relevant policy:
• Consumer Care Policy
KEY ACTIONS IN FY25TARGETS AND PROGRESS
Maintained full compliance with Consumer Care Obligations
Formed a partnership with Community Energy Network, expanding our Energy Wellbeing
Programme’s coverage to 75 percent of the nation
Enabled customers to take control of their energy through flexible payment products such
as LevelPay and usage of information available on customer apps
Also see:
• Deliver cleaner, cheaper energy ‘Our goal is access to energy for all’
As included in our strategy:
Deliver cleaner, cheaper energy
• support 5,000 customers in hardship by June 2028 (3,187 FY25)
Also:
• Full compliance with the Consumer Care Obligations (100 percent
compliance in FY25)
• In addition, refer to the GRI index
SUPPORTING THIRD-PARTY GENERATIONMATERIAL TOPIC: RENEWABLE ENERGY GENERATION
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian is supporting companies to increase Aotearoa New Zealand's renewable generation
through project partnerships and electricity offtake agreements
Committed to supporting other companies to develop new
generation capacity through project partnerships and energy
offtake agreements
KEY ACTIONS IN FY25TARGETS AND PROGRESS
Key initiatives:
• Announced partnership with Nova Energy to work towards a 50-50 joint venture to build and
operate the 400MW Te Rahui Solar Farm (December 2024). The project received Meridian and
Nova board approval in April and May 2025 respectively. The project is currently awaiting approval
(Financial Close) from the lenders before proceeding to construction
• Signed a Power Purchase Agreement with Harmony Energy and First Renewables to support
their joint venture build of the 150MW Tauhei Solar Farm (January 2025)
Also see:
• Grow renewable generation
This is a new and positive material impact. There is currently no formal
target, but we will continue to consider these opportunities as they arise
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EMPLOYEE WELLBEINGMATERIAL TOPIC: PEOPLE
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian may directly enhance the physical and mental wellbeing of staff, contractors
and the general public through its health, safety, employment and wellbeing practices
Committed to world-class performance in safety, health
and wellbeing
Accredited to ISO 45001 (health and safety management
system)
Committed to alignment with ISO 45003 (risk management
for psycho-social risk)
Accredited to NZS 7901 (public safety standard)
Relevant policies:
• Health, Safety and Wellbeing Policy
• People Policy
KEY ACTIONS IN FY25TARGETS AND PROGRESS
Key initiatives in FY25 included:
Safety
• Revised and updated our Critical Risk Framework to effectively manage those risks that
have the most severe of consequences for our people
• Created a programme to acknowledge and reward staff safety observations, aimed at
continuous learning, sharing, and enhancing worker participation in safety improvement
Wellbeing
• New Wellbeing Strategy approved by the Board
• Refreshed employee benefits to include free health insurance, ‘wellbeing leave’ beyond
statutory requirements, and continued professional counselling service
Also see
• Grow capability and culture ‘Wellbeing is at the heart of our approach’ and
‘Standardising our safety approach’
As included in our strategy:
Grow capability and culture
• By end FY25, grow the maturity of the safety culture through
improvements in lead indicators while managing lag indicators
(new target for FY25). Achieved by embedding of learning teams
and worker engagement through safety observations
• Deliver new Wellbeing Strategy in FY25 (new: achieved)
Also:
• Improvement in engagement survey results by June 2025 from
a FY24 baseline (new: achieved)
• Reduction in high-risk potential safety events related to our
Critical Risks due to effective controls, by June 2025 from a
FY24 baseline (new: not achieved)
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EMISSIONS AND WASTEMATERIAL TOPIC: BUSINESS EMISSIONS AND WASTE
IMPACT DESCRIPTIONRELEVANT POLICIES AND COMMITMENTSSDG
Meridian directly creates environmental harm from greenhouse gas emissions and
waste to landfill as a result of its construction, generation and corporate activities
Committed to delivering our near-term science-based
2030 emission reduction targets, and long-term Net
Zero target set (see Climate Action Plan, Greenhouse Gas
Emissions Inventory Report and Climate-related Disclosures)
Committed to ensuring that 100 percent of asset
construction projects set emissions and waste diversion KPIs
Committed to advancing our zero-waste ambition by reducing
hazardous and non-hazardous waste in our operations
Relevant policy:
• Environment Policy Circular Economy Framework
(staff guidance)
KEY ACTIONS IN FY25TARGETS AND PROGRESS
Advanced a range of emission reduction initiatives, including:
• Maintained travel emission budgets for all business units
• Advanced project to introduce new electric hydro-foiling ferry to Lake Manapōuri by FY27
• Continued local sector collaboration to share knowledge and contribute to reducing SF6
and land transport emissions over time
• Maintained progress on SF6 roadmap for our generation assets
• Transitioned all farms to common emissions reporting, enhancing data quality
• Completed major review of emission reduction plan with revised forward plan
(see Climate Action Plan)
• Updated Meridian’s Sustainable Infrastructure Framework to expand scope of application
to all major generation projects in addition to construction projects
• Set sustainability KPIs relating to carbon impact reports, waste diversion, transport emissions
targets and the delivery of continuous improvement initiatives
Advanced a range of waste initiatives, including:
• Increased the scope of our audit programme to include generation sites in addition to
our corporate offices
• Supported a collaborative partnership with Method Bins to trial their new Method
AI Waste Assistant application in our corporate office
• Delivered a Zero public charging site at Springs Junction backed by repurposed
second-hand Nissan Leaf batteries
Also see:
• Grow culture and capability ‘Embedding sustainability’ and
‘Adjusting our Half by 30 targets’
As included in our strategy:
Grow capability and culture
• 2030 and 2050 emissions reduction targets, see Climate-related
Disclosures, Greenhouse Gas Emissions Inventory Report or
Climate Action Plan for performance against targets
Targeting a 50 percent reduction of its hazardous and
non-hazardous operational waste by 2030 (from a 2021 baseline)
across its operations, excluding construction (on track)
Delivery of waste KPIs in project-specific Sustainability
Management Plans:
• Ruakākā battery – 80 percent waste diversion (currently 99 percent)
• Ruakākā solar – 85 percent (construction to begin FY26)
• Te Rere Hau re-powering project – 85 percent waste diversion
(no data available for FY25)
Delivery against project-specific emissions targets. See our
FY25 Climate-related Disclosures (Reduction of emissions
for one-off renewable energy projects)
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Remuneration report
Attracting, retaining and motivating talented people, and
rewarding them for delivering desired business performance
and long-term shareholder value, is key to Meridian’s success.
IMAGE
Inspecting the penstocks
at our Ōhau Power Station,
Waitaha Canterbury.
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Report from the Chair of the People,
Remuneration and Culture Committee
Dear shareholders
As Chair of Meridian’s People,
Remuneration and Culture
Committee, I am pleased to present
our Remuneration Report for the
year ended 30 June 2025.
This report outlines Meridian’s
strategy and approach to
remuneration for the Meridian
Chief Executive, Executive Team
and Directors, and for Meridian
employees generally.
I would like to highlight a few areas
of particular focus for this year.
Remuneration Report content
For this 2025 Remuneration Report
we continue to follow the content
and layout recommended in the NZX
template, as well as providing those
additional disclosures needed to meet
other external requirements, e.g. the
New Zealand Shareholders Association,
Global Reporting Index, and Dow
Jones Best-in-Class Index. This year, we
have taken a further step and disclosed
more information about our FY25 and
FY26 Executive Scorecards, used for the
purposes of Short-term Incentives (STI)
and to track the performance of our
Executives against key requirements
in our business plan. We have also
disclosed the remuneration that will
apply to the new Chief Executive for
the FY26 year ahead.
We believe this year’s Remuneration
Report continues to be a positive step
in transparent and consistent reporting.
Remuneration Policy
Meridian’s Remuneration Policy
was last reviewed and updated in
2024 to more explicitly cover how
Chief Executive and Executive Team
remuneration is determined and
reviewed. As Meridian is a major
listed company in Aotearoa New
Zealand, the Board determined
that it is appropriate for Chief
Executive and Executive Team
remuneration to be set in reference
to relevant market information on
fixed and total remuneration for
comparable roles within NZX-listed
companies of comparable scale
and complexity to Meridian, and
including similar organisations in
the same sector. We have agreed
that the fixed remuneration for
the Chief Executive and Executive
Team roles will normally be within
an 80–120 percent range of the
median for comparable New Zealand
roles, dependent also on individual
capability, experience and other
relevant factors. For Chief Executive
and Executive Team roles, Meridian
targets the upper quartile of the
market for total remuneration, in
the context of strong organisational
and individual performance.
Our remuneration philosophy
is guided by the principles that
remuneration will:
• be clearly aligned with our
company values, culture
and strategy
• support us to attract, retain
and engage employees
• be fair, equitable and flexible
• appropriately reflect market
conditions and the
organisational context
• recognise and reward
high performance
• align with creating
shareholder value.
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Chief Executive remuneration
increase for FY25
Following independent external
remuneration advice, the Board
agreed to increase the Chief
Executive’s salary by four percent
for FY25 effective 1 July 2024, and
to increase his STI opportunity for
the FY25 year to 60 percent of salary.
The Board also determined that in
relation to FY25, any STI payment
for the Chief Executive was to
be capped at a maximum of
100 percent of target.
Chief Executive retirement
and recruitment for a new
Chief Executive from FY26
During FY25, Chief Executive Neal
Barclay signalled his intention to retire,
effective 30 June 2025, after a period
of seven and a half years in the role.
The Board engaged a third-party
provider to undertake a rigorous
and thorough search for a suitable
replacement, which yielded an
excellent field of suitable candidates.
Following a selection process, we
were delighted to offer the role to
Meridian’s Chief Financial Officer,
Mike Roan, who took up the Chief
Executive role officially on 1 July 2025.
Information about Mike is contained
in the NZX announcement.
NZX ANNOUNCEMENT
bit.ly/453yeZX
Chief Executive and Executive
Team remuneration elements
and new shareholding policy
As a part of the Board’s commitment
to keeping across emerging trends
in remuneration, the Board receives
advice from external parties and
utilises the knowledge and skills
of the Directors who see these
trends through engagements with
stakeholders and from sitting on
other Boards. This year, the Board
has been considering the growing
international trend for introducing
a deferred equity-based element
into remuneration for the Chief
Executive and Executive Team STI
and introducing a more formalised
shareholding requirement for those
incumbents. The mechanism for
this is a rebalancing of the relative
weightings of the Long-term
Incentive (LTI) and cash STI.
With external advice from PwC, the
Board has given further consideration
to this during FY25. As a result the
Board agreed to introduce:
• a Minimum Encouraged Meridian
Shareholding Policy supporting the
Board’s commitment to aligning
the interests of the Chief Executive,
Executive Team, and Directors
with those of our shareholders.
Under this policy, the Meridian
Chief Executive, Executive Team
and Directors are encouraged to
build up (over time) and maintain
a minimum holding of Meridian
shares as a proportion of their
applicable Meridian salary or
Director’s fee. Information about
current applicable shareholding
levels is outlined later in this report.
• a Deferred Equity Incentive Plan for
the Chief Executive and Executive
Team from 1 July 2025, offset
by changed opportunity under
the current cash STI and equity
LTI Executive Team remuneration
package elements. The outcome of
this plan is made in Meridian shares,
with the first vesting following the
end of year FY28. Introducing this
deferred equity plan further aligns
Executive Team remuneration with
the interests of shareholders, along
with our new Minimum Encouraged
Meridian Shareholding Policy. More
information about this is outlined
later in this report.
MINIMUM SHAREHOLDING POLICY
bit.ly/44Qw3tR
Looking ahead to FY26
In addition to a new Chief Executive
commencing from 1 July 2025,
there are two new Executive Team
appointments. Prior to the end of
FY25 we announced Mandy Simpson
as our new Chief Financial Officer
commencing September 2025 and
Rory Blundell as our new General
Manager, Strategy and Portfolio,
taking up the role in June 2025. With
a significantly challenging plan of
work for the year ahead, FY26 will be
an exciting and interesting year for
Meridian and its shareholders.
Tania Simpson
Chair
People, Remuneration
and Culture Committee
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Remuneration governance
The Meridian People, Remuneration and Culture Committee was comprised
of the following members for the following durations in FY25. All Committee
members are independent Directors. Management only attends Committee
meetings by invitation.
NAME OF DIRECTOR
PERIOD OF PEOPLE, REMUNERATION
AND CULTURE COMMITTEE MEMBERSHIP
FROMTO
Tania Simpson (Chair)5 October 2021
(Chair, effective
17 October 2022)
30 June 2025
Mark Verbiest28 April 201630 June 2025
Graham Cockroft26 July 202230 June 2025
Nagaja Sanatkumar1 January 202030 June 2025
The Committee operates
under a written charter and has
responsibilities and processes as
outlined in the charter.
PEOPLE, REMUNERATION AND
CULTURE COMMITTEE CHARTER
bit.ly/4cfu8Qb
The internal governance policy that
provides context for the remuneration
outcomes is the Remuneration Policy.
REMUNERATION POLICY
bit.ly/3yqFjaK
Meridian’s Corporate Governance
Statement outlines how Meridian
meets the requirements of the
NZX Corporate Governance Code,
and in particular its Principle 3.3
(Remuneration Committee) and
Principles 5.1–5.3. (Director, Chief
Executive and Executive Team
Remuneration).
Meridian’s Trading in Securities
Policy ensures that Meridian and
its subsidiaries’ directors, senior
managers, employees, contractors
and secondees comply with the law
prohibiting insider trading and that
all dealings in Meridian securities
and other financial products by such
persons are beyond reproach.
TRADING IN
SECURITIES POLICY
bit.ly/4d8CvhH
In 2025 Meridian did not require a
mandatory minimum shareholding
for Directors, the Chief Executive or
Executive Team members. However,
all are encouraged to purchase and
hold Meridian shares. The Meridian
shareholdings of the Meridian
Chief Executive and Executive Team
members is provided on page 97.
From May 2025, Meridian has a
Minimum Encouraged Meridian
Shareholding Policy applicable to
Directors, Chief Executive, and the
E xecutive Team.
MINIMUM SHAREHOLDING POLICY
bit.ly/44Qw3tR
Remuneration policy
Meridian’s Remuneration Policy
covers remuneration for Directors, its
Chief Executive and the nine other
members of the Meridian Executive
Team, and all Meridian employees.
The People, Remuneration and
Culture Committee regularly reviews
policy and practice and provides
recommendations to the Board. The
Board approves the Remuneration
Policy every two years and the
Executive Team balanced scorecard
objectives, company financial
performance targets, and
outcomes annually.
REMUNERATION POLICY
bit.ly/3yqFjaK
External and independent advice
The People, Remuneration and
Culture Committee refers to external
and independent remuneration
market information provided by
PwC to gauge actual and forecast
movements in the market and to
assess the levels of fixed and target
total remuneration to pay its Chief
Executive and Executive Team.
Meridian also seeks market
remuneration information from
independent external sources to
guide processes for determining
the remuneration of all other
Meridian employees.
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Fixed remuneration
Fixed remuneration includes
base salary and matched KiwiSaver
contributions of up to four percent.
It is benchmarked to independent
market remuneration data obtained
from multiple external sources.
As a minimum, Meridian pays the
Living Wage to all permanent and
fixed-term employees.
The People, Remuneration and
Culture Committee reviews and
approves proposed remuneration
packages for the Executive Team.
Remuneration for the remainder
of employees is determined and
reviewed by managers in accordance
with the Remuneration Policy
and framework, and is subject
to one-up approval.
Salaries are reviewed annually, with
the budget and parameters for the
company’s annual remuneration
review approved by the Board.
Market information from independent
remuneration providers inform these
remuneration decisions.
Individual performance
assessment
All employees, including the
Chief Executive and Executive
Team, have performance objectives
aligned to the organisation’s business
plan and priorities, and individual
performance is formally assessed
at least annually. Chief Executive
performance is assessed and
approved by the Board. Executive
Team performance is assessed by the
Chief Executive and approved by the
People, Remuneration and Culture
Committee. For all other employees,
performance is assessed by their
one-up manager and approved
by the next level of management.
Variable pay FY25
Meridian has a short-term incentive
(STI) scheme and long-term
incentive (LTI) plan. They are variable,
performance-based incentives
awarded only if specific financial
and non-financial performance
hurdles are cleared, and at the
discretion of the Board.
Short-term incentive (STI)
The Chief Executive, Executive Team,
and all permanent employees may
participate in variable pay via an
STI scheme at the discretion and
invitation of the Board. The STI
opportunity within total remuneration
reflects the complexity and level
of roles. In FY25 the Chief Executive
had an STI at target opportunity of
60 percent of salary. The at target
STI opportunity for other Executive
Team members was 30 percent.
The at target employee STI
opportunity is 10 to 25 percent of
salary depending on role level.
The STI is an at-risk incentive, which
may be offered for a specific year by
invitation from the Board. Potential
STI payments are wholly discretionary
and reflect the achievement of
predetermined Board-approved
company financial targets, individual
achievements of performance
objectives aligned to business strategy
and goals, and employee behaviour
compliant with the Meridian Code of
Conduct. If criteria are met, payment
is made in cash after the end of the
qualifying company year. Payment
is not made in shares, and is not
deferred for a subsequent period.
Long-term incentive (LTI)
The Chief Executive, Executive Team
and selected Tier 3 leaders also have
the opportunity to participate in an
LTI plan. An LTI plan is offered at the
discretion of the Board to align senior
management and shareholders’
interests and optimise long-term
shareholder returns. An LTI plan is
not otherwise available to Meridian
employees.
Meridian has a policy that ensures
participants in any LTI plan are not
able to enter transactions (whether
through the use of derivatives or
otherwise) that limit the economic
risk of their participating in the plan.
For FY25, the maximum LTI
opportunity was 40 percent of salary
for the Chief Executive, 30 percent
of salary for the Executive Team and
15 percent of salary for eligible Tier
3 leaders. Vesting of an LTI plan is
contingent on meeting absolute and
relative total shareholder return (TSR)
performance levels at the conclusion
of a three-year period.
Under Meridian’s LTI scheme, the
company issues rights (Performance
Share Rights) to acquire ordinary
shares in the company to eligible
participants in each LTI plan. Each
performance share right entitles
the holder to one ordinary share in
the company, and to an additional
number of shares equal to the value
of gross cash dividends per share
that would have been paid to a
New Zealand tax resident who held a
share for the duration of the vesting
period, calculated using a 10-day
volume-weighted average price.
The number of Performance Share
Rights that vest is dependent on the
following Vesting Conditions:
• Meridian’s total shareholder return
over a three-year Performance
Period relative to Meridian’s cost of
equity, and total shareholder return
over the same Performance Period
relative to the performance of a
peer group of the other companies
listed in the S&P/NZX50 index.
• Whether the participant continues
to be employed by Meridian
during the vesting period.
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LTI performance hurdles
As of 30 June 2025, there were three
LTI plans underway. The Performance
Period for each ends as follows:
• The FY23 Plan: three years
ended 30 June 2025
• The FY24 Plan: three years
ending 30 June 2026
• The FY25 Plan: three years
ending 30 June 2027.
The three plans have different
performance hurdles, reflecting
changes in Meridian’s cost of equity
over time.
Performance Share Rights lapse if the
holder ceases to be employed by
Meridian during the vesting period,
subject to the Board’s discretion.
The following applies to the FY23
Plan, the Performance Period for
which ended on 30 June 2025:
• Absolute Return Performance
Share Rights
• Relative Return Performance
Share Rights.
For Absolute Return Performance
Share Rights to vest, the company’s
TSR must be greater than the
absolute TSR benchmark that was set
at the beginning of the vesting period
with regard to the company’s cost
of equity (Absolute TSR Benchmark)
on a compounding annual basis
over the Performance Period. If the
company’s TSR is equal to or lower
than the Absolute TSR Benchmark,
no Absolute Performance Share
Rights will vest. If the company’s
TSR is greater than the Absolute
TSR Benchmark, 100 percent of the
Absolute Return Share Rights will vest.
The number of Relative Return
Performance Share Rights that vest
is determined by the company’s
TSR over the Performance Period
relative to the performance of a peer
group of the companies in the S&P/
NZX50 Index. For any of the Relative
Return Performance Share Rights
to vest, the company’s TSR must be
greater than or equal to the 50th
percentile (median) of the peer group.
100 percent of the Performance
Share Rights will vest on meeting or
exceeding the 75th percentile of the
peer group, with vesting on a straight-
line basis between these two points.
For each three-year plan, an
independent external expert
measures Meridian’s TSR and
outcomes against performance
hurdles, and determines the vesting
level of Performance Share Rights.
Performance Share Rights will lapse
if the Vesting Conditions are not
satisfied (although this is subject to
the Board’s discretion in relation to
the Employment Condition).
ABOVE
Labyrinth Weir in the Ōhau C Canal.
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Variable pay FY26 – Chief
Executive and Executive Team
From FY26, the variable pay elements
for the Chief Executive and Executive
Team will be the following, at target,
and as a percentage of salary:
STILTI
CASH
STI
DEFERRED
EQUITY
STI
Chief
Executive
50%20%50%
Executive
Team
25%12%40%
The provisions and structures of the
Cash STI and LTI schemes will remain
unchanged for FY26.
The measures for the new Deferred
Equity STI are the same as for the
Cash STI plan. Payment under the
Deferred Equity STI will be made
in equity and is deferred for two
years following the end of the FY26
performance year.
Employee benefits
Meridian offers a wide range of
other benefits and provisions for all
permanent Meridian employees,
including the Chief Executive and
Executive Team. Benefits include an
employee share scheme, company-
funded employee insurances (life,
income protection, trauma and
healthcare), enhanced parental leave
provisions, wellbeing leave, three
days company leave, the ability to
purchase additional leave, access to
purchasing discounts, and various
part-time, remote and hybrid working
arrangements where possible. These
benefits are an important aspect
of our Employee Value Proposition,
enabling us to attract and retain our
highly engaged workforce in a highly
competitive market.
Other disclosures
The FY25 Chief Executive, Neal
Barclay, had been employed on an
ongoing basis by Meridian Energy
since July 2008 and was appointed
by the Board to the position of
Chief Executive in November 2017.
He retired from Meridian effective
30 June 2025, and from 1 July 2025
is replaced by previous Chief Financial
Officer, Mike Roan.
Pursuant to the employment
agreement, the Chief Executive
and Meridian have mutual rights of
termination on the provision of six
months’ written notice. Meridian may
also terminate the Chief Executive’s
employment on the grounds of
redundancy or serious misconduct
or where an act of bankruptcy is
committed.
With the support of the Board,
Meridian’s practice for Chief Executive
and Executive Team roles, is that:
• no clawbacks are required, except
if salary overpayment occurs
• no retirement benefits are payable
• no sign-on bonuses are offered
• redundancy compensation is
payable to permanent employees
whose employment is terminated
as a result of redundancy.
Key performance
summary
As outlined in other sections of this
Integrated Report, FY25 was a very
challenging year for Meridian. This
had an impact on the company’s
financial performance which led to,
and was reflected in, the following
remuneration outcomes for the Chief
Executive and Executive Team.
Short-term incentive (STI)
Financial performance
For FY25, Meridian’s financial
performance impacted 60 percent of
the FY25 STI for the Chief Executive and
Executive Team. For the financial target
(EBITDAF less a capital charge) the
threshold was not reached for FY25.
As a result, the Board approved an
FY25 outcome of 0 percent for this
component of the STI.
Scorecard performance
For FY25, a Board-approved
scorecard impacted 40 percent
of the STI for the Chief Executive
and Executive Team. The scorecard
included a mix of measures, outlined
below. It illustrates that a large
proportion of the remuneration of
the Chief Executive and Executive
Team is directly impacted by their
management of the organisation,
and its impact on the economy,
environment and people.
Based on outcomes and
achievements of the scorecard
measures, the Board approved a
scorecard outcome of 75 percent for
FY25. A summary of the scorecard
targets follows. A breakdown of the
scoring on each measure is included
under Chief Executive Remuneration
STI Outcomes, page 93.
As a result of the financial target
threshold not being met, the
Board determined that no FY25
STI payment would be made to
the Meridian Chief Executive and
Executive Team despite the positive
result achieved in FY25 on the
measures in the Executive Scorecard.
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FY25 Executive Scorecard measures
OBJECTIVEFY25 INITIATIVESMEASUREADEQUATE (0% TO 50%)TARGET - GOOD (75%)EXCELLENT (100%)WEIGHTING
Grow renewable
generation to
speed our path
to a resilient,
net zero future
• Deliver scale energy
projects at pace
• Accelerate electrification
of transport and process
heat
• Grow peaking generation
capacity and bring
dispatchable customer
capacity to market
Delivery of
milestones
• 50%: One of the Good measures
must be materially behind target.
For example, only one renewable
development project makes FID
• 0%: Two of the Good measures must
be materially behind target. For
example, no renewable development
projects make FID
• Deliver a list of hydro catchment
storage and flexibility options to the
Board by the end of the financial year
• Land the Ruakākā BESS, gain three
consents and lodge a further three
while achieving Board Final Investment
Decision on two renewable projects
and commencing construction of
Ruakākā solar
• Install fast chargers, convert MOU
process heat to contracts and add
more demand flexibility in line with
Board-approved targets
• Restore 173MW of capacity at
Manapōuri and West Wind, lift
capacity at other stations by 50-60MW
The Good measures
must be delivered and
one must be materially
ahead of target. For
example, another
consent lodged or
another development
bought to FID
30%
Deliver cleaner,
cheaper
energy through
innovation that
unlocks value
for customers
• Develop digital capability
and innovation to achieve
scale and grow customer
relationships
• Continue investment
in energy hardship and
community programmes
to promote equitable
access to the energy
transition
• Advocate policy that
promotes climate action
and supports Kiwis
through energy transition
Delivery of
milestones
• 50%: One of the Good measures
must be materially behind target. For
example, customer numbers only lift
by 5k
• 0%: One of the Good measures
must be materially behind target. For
example, customer numbers do not
grow
• Lift customer numbers in a way that
grows Group energy margin delivery
and cash production while supporting
customers in energy hardship and
making substantial community
decarbonisation distributions
• Next Generation Retail delivers
operating cost savings in line with
planned outcomes
The Good measures
must be delivered and
one must be materially
ahead of target. For
example, customer
numbers lift by 30k
25%
Deliver
operational
excellence so
everything we
do aligns to
deliver our goals
• Build operational
flexibility and agility
while sustaining excellent
asset productivity
• Build modern data
and digital systems to
promote collaboration,
operational efficiency,
innovation and data-
driven decisions
EBITDAF,
delivery of
milestones
• 50%: One of the Good measures
must be materially behind target. For
example, the finance transformation
initiative is not delivered
• 0%: Two of the Good measures must
be materially behind target. For
example, the finance transformation
initiative is not delivered and the
energy transition is challenged
• Reduce annual routine outage days by
greater than 100 days
• Play an active role ensuring that
the energy transition is managed
affordably and securely
• Deliver the key technology projects
that will lift business performance and
manage enterprise risk
The Good measures
must be delivered and
one must be materially
ahead of target.
For example, all ICT
projects are delivered
as expected and
associated benefits
realised
25%
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OBJECTIVEFY25 INITIATIVESMEASUREADEQUATE (0% TO 50%)TARGET - GOOD (75%)EXCELLENT (100%)WEIGHTING
Grow capability
and culture
because how we
do the mahi is
what will make
the real difference
• Grow a diverse, inclusive
and skilled workforce
that reflects the country
we live in
• Safety leadership grows
in maturity as we build
into the energy transition
• Develop our
understanding of the
Māori worldview to
help build long-term
relationships with
tangata whenua
• Build a sustainability
culture that benefits
people and planet,
inspires climate action
and attracts investors
Delivery of
milestones
• 50%: One of the Good measures
must be materially behind target. For
example, DJSI outcomes not realised
• 0%: Two of the Good measures
must be materially behind target.
For example, DJSI and engagement
outcomes not realised
• Close the ethnicity gap while lifting
the number of women in senior roles
and delivering the wellbeing strategy
initiatives for FY25
• Grow the maturity of the safety culture
through improved lead indicators
• Develop recruitment pathways for
Māori within the organisation while
ensuring we live up to our end of the
commitments in the kawenata with
the three Waitaki rūnaka
• Upper quartile Asia Pacific DJSI
outcome delivered
• Deliver Half by 30 initiatives (as set out
in that plan) and ESG accountability
more generally
The Good measures
must be delivered and
one must be materially
ahead of target. For
example, top the Asia
Pacific DJSI index
20%
The above scorecard measures remain subject to a ‘Safety performance and leadership’ gate which requires the
executive to demonstrate an improvement in safety leadership and outcomes across the business and will be
considered in the context of both lead and lag indicators
In addition to the ‘Safety’ gate, the Board can (on the recommendation of the Chief Executive) lift or reduce
outcomes by up to 20 percent
At their discretion additionally, the Chief Executive may flex an individual executive up or down by up to 10 percent
based on how that individual has reflected the company values, brand, and positions externally, internally and
within the Executive Team
Long-term incentive
Following the conclusion of the Performance Period for the FY23 LTI Plan on 30 June 2025, it was determined that Performance Hurdles were fully met and 100
percent of both Absolute and Relative Share Rights will vest at the conclusion of the Vesting Period in October 2025.
• Absolute Return Performance Share Rights will vest if Meridian’s TSR is greater than the Absolute TSR Benchmark, on a compounding annual basis over the
Performance Period. For the FY23 Plan, the Absolute TSR Benchmark was 8.70 percent cost of equity plus 1 percent compounded over three years (32.01 percent
Total Absolute TSR Benchmark). Meridian’s TSR exceeded this and 100 percent vesting applies.
• Relative Return Performance Share Rights vest if the Meridian’s TSR is greater than or equal to the the 50th percentile (median) TSR of the peer group of the other
companies in the S&P/NZX50 Index. For the FY23 Plan, Meridian’s TSR exceeded the 75th percentile of the peer group, above the top of the relative TSR Benchmark
range and 100 percent vesting applies.
As a result, Performance Share Rights under the FY23 LTI Plan available to the Chief Executive and eligible Executive Team and Tier 3 leaders will be payable at 100
percent vesting (2024: 100 percent). 941,776 shares (excluding shares for dividends) will be transferred to the eligible participants for the FY23 LTI plan (2024: 418,384
shares vested).
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FY26 Executive Scorecard measures
For FY26, 60 percent of the STI for the Chief Executive and Executive Team is based on achievement against the EBITDAF target.
The remaining 40 percent is based on the measures and weightings of the Executive Scorecard, as follows:
OBJECTIVEFY26 INITIATIVESMEASUREADEQUATE (0% TO 50%)TARGET - GOOD (75%)EXCELLENT (100%)WEIGHTING
Grow renewable
generation to
speed our path
to a resilient,
net zero future
• Deliver scale energy
projects at pace
• Grow system flexibility
• Accelerate electrification
of transport and process
heat
Delivery of
milestones
• 50%: One of the Good measures
must be materially behind target.
For example, only one renewable
development project makes FID
• 0%: Two of the Good measures must
be materially behind target. For
example, no renewable development
projects make FID
• Waitaki consent granted and strategy
for Manapōuri re-consenting agreed,
begin construction of agreed new
developments, gain and lodge
consents and refine hydro storage
options, including secure Pūkaki
contingent storage
• Each of the storage options and
consents will be pursued on the basis
of absolute and relative value creation
• The Good measures
must be delivered
and one must be
materially ahead of
target. For example,
another consent
lodged or another
development
bought to FID
25%
Deliver cleaner,
cheaper
energy through
innovation that
unlocks value
for customers
• Create more value for
customers
• Continued investment
in energy hardship and
community programmes
to promote equitable
access to the energy
transition
• Policy advocacy that
promotes climate action
and supports Kiwis
through energy transition
Delivery of
milestones
• 50%: One of the Good measures
must be materially behind target
• 0%: More of the Good measures
must be materially behind target
• Migrate all customers to new retail
platform to deliver cost to serve
and cost to acquire benefits set out
in Board-approved business case.
Increase customers as per plan, in a
cost-accretive manner
• Grow volume of customers on flex
products to build market flexibility and
reduce costs for consumers
• Install new high-capacity chargers as
set out in initial phase of business case
to add more annualised revenue to
business
• Influence energy market reform that
is efficient so that costs to consumers
are minimised and consenting is
encouraged
• The Good measures
must be delivered
and one must be
materially ahead of
target
20%
Deliver
operational
excellence so
everything we
do aligns to
deliver our goals
• Build operational
flexibility and agility while
sustaining excellent asset
productivity
• Integrate advanced
technology to drive
improved business
outcomes
EBITDAF,
delivery of
milestones
• 50%: One of the Good measures
must be materially behind target. For
example, the Finance Transformation
initiative is not delivered
• 0%: Two of the Good measures must
be materially behind target. For
example, the Finance Transformation
initiative is not delivered and the
energy transition is challenged
• Reduce annual outage days and
improve efficiency of generation
business as set out in approved
business case
• Deliver business improvement across
Portfolio, Trading and Operations
• The Good measures
must be delivered
and one must be
materially ahead of
target. For example,
all ICT projects
are delivered as
expected and
associated benefits
realised
20%
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OBJECTIVEFY26 INITIATIVESMEASUREADEQUATE (0% TO 50%)TARGET - GOOD (75%)EXCELLENT (100%)WEIGHTING
Grow capability
and culture
Safety
• Grow a diverse, inclusive
and skilled workforce that
reflects the country we
live in
• Safety leadership that
grows in maturity as we
build into the energy
transition
• Develop our
understanding of the
Māori worldview to
help build long-term
relationships with tangata
whenua
• Build a sustainability
culture that benefits
people and planet,
inspires climate action
and attracts investors
Delivery of
milestones
• 50%: One of the Good measures
must be materially behind target. For
example, DJSI outcomes not realised
• 0%: Two of the Good measures
must be materially behind target.
For example, DJSI and engagement
outcomes not realised
• Improve diversity of the workforce
while lifting number of women in
senior roles, lift Māori representation
and deliver the FY26 wellbeing
initiatives
• Ensure we live up to our commitments
to iwi
• Achieve World Index category in Dow
Jones Best-in-Class index
• Deliver the Emissions Reduction Plan
targets
• The Good measures
must be delivered
and one must be
materially ahead of
target. For example,
top the Asia Pacific
DJSI index
20%
• 50%: One of the Good measures
must be materially behind target. For
example, a safety indicator well behind
expected levels
• 0%: Two of the Good measures must
be materially behind target
• Drive improvements in safety
performance and maturity so that the
probability of a critical risk occurring
stays within tolerable levels as set out
in the risk management framework
• Reduce the number of serious
incidents where a critical control was
identified as failing or inadequate
• The Good measures
must be delivered
and one indicator
must be materially
ahead of target
15%
The above scorecard measures remain subject to a ‘Safety performance and leadership’ gate which requires the
executive to demonstrate an improvement in safety leadership and outcomes across the business and will be
considered in the context of both lead and lag indicators
In addition to the ‘Safety’ gate, the Board can (on the recommendation of the Chief Executive) lift or reduce
outcomes by up to 20 percent
At their discretion additionally, the Chief Executive may flex an individual executive up or down by up to 10
percent based on how that individual has reflected the company values, brand, and positions externally, internally
and within the Executive Team
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This graph shows Meridian’s historical TSR against the performance of the S&P/NZX50.
Meridian’s TSR performance and LTI Scheme outcomes are independently validated by
external experts.
ABOVE
West Wind Farm, Mākara, Wellington.
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Chief Executive remuneration
Chief Executive remuneration outcomes
(a) Overall FY24 and FY25 remuneration
YEAR
FIXED REMUNERATION EARNED
VARIABLE CASH-BASED
REMUNERATION EARNED
OTHER
REMUNERATION
EARNEDLONG-TERM INCENTIVE EARNED
TOTAL
REMUNERATION
EARNED
BASE SALARY
KIWISAVER
ON BASE
SALARY
TOTAL FIXED
REMUNERATION
SHORT-TERM
INCENTIVE
EARNED
(INCLUDING
KIWISAVER)
AMOUNT
EARNED
AS A % OF
MAXIMUM
AWARD
TOTAL
VARIABLE
CASH-BASED
REMUNERATION
EARNEDMYSHARE
NUMBER
OF SHARES
VESTED
% OF MAXIMUM
AWARDED FOR
THE PERFORMANCE
PERIOD
MARKET
PRICE OF
VESTED
SHARES AT
30 JUNE
LTI PLAN
VALUE
FIXED
REMUNERATION +
STI PLAN + OTHER
REMUNERATION
+ LTI PLAN EARNED
FY25$1,433,000$ 5 7, 3 2 0$1,490,320$——%$—$2,500166,150100%$ 5.90$980,285$2,473,105
FY24$1 , 3 7 7, 8 8 5$55,115$1,433,000$848,47983.4%$848,479$2,500153,049100%$6.29$962,678$3,246,657
Taxable benefits within Fixed Remuneration are 4 percent company KiwiSaver contributions on salary.
Fixed remuneration is salary plus company KiwiSaver contributions.
MyShare is gross value of award shares received in the applicable period.
STI is the potential payment based on performance achieved for the applicable period and includes 4 percent company KiwiSaver contributions.
The STI and LTI amounts above were earned during the FY25 and FY24 periods, but was or will be awarded in the following applicable periods (i.e. FY26 and FY25). Number of shares vested is estimated as at the end
of each earned year, based on an estimated dividend adjustment. See section below titled ‘Performance Share Rights (PSRs) held by the Chief Executive (as at 30 June 2025)’ for actual number of shares awarded in FY25.
The Chief Executive is entitled to receive a matching employer KiwiSaver contribution of four percent of gross taxable earnings. The company’s KiwiSaver contributions
for the Chief Executive that were paid in the FY25 period (including on the FY24 STI plan which was paid in FY25) were $90,144.
For FY26, the remuneration package for the Chief Executive is based on the following (not all of which will be payable in FY26):
BASE SALARY
KIWISAVER
ON BASE SALARY
TOTAL FIXED
REMUNERATIONSHORT-TERM INCENTIVE LONG-TERM INCENTIVE
OTHER POTENTIAL
REMUNERATION
TOTAL REMUNERATION
PACKAGE
CASHDEFERRED EQUITYEQUITY
50% of fixed
remuneration (incl
KiwiSaver)
20% of salary
(no KiwiSaver
applicable)
50% of salary
(no KiwiSaver
applicable)
MyShare
$1,123,870$ 4 4,95 5$1,168,825$584,412$224,7 74$ 5 61,93 5$2,500$2,542,446
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Chief Executive five-year remuneration summary
YEAR
SINGLE FIGURE
REMUNERATION
% STI AGAINST
MAXIMUM
% VESTED LTIS
AGAINST MAXIMUM
SPAN OF LTI
PERFORMANCE PERIOD
FY25$2,473,105—%100.0%FY23-FY25
FY24$3,246,65883.4%100.0%FY22–FY24
FY23$1,874,66782.3%0.0%FY21–FY23
FY22$2,134,37278 .9%48.8%FY20–FY22
FY21$2,308,44666.7%100.0%FY19–FY21
The chart shows how the proportions of the Chief Executive’s total remuneration may
vary under various scenarios. Note, however, that the LTI value depends on share price,
and the resulting LTI remuneration may exceed the illustrated scenarios.
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(b) FY25 CEO STI outcomes earned
(with payment in August 2025,
which is in FY26)
For the FY25 year, the Chief Executive
had an on-target STI opportunity
of 60 percent of base salary, with
the potential STI payment being a
maximum of 100 percent, of which
• 60 percent was based on Meridian
financial performance
• 40 percent was based on
scorecard performance.
As a result of FY25 financial
performance, no STI payment
was made to the Chief Executive
for FY25, resulting in an STI payment
of 0 percent of target.
The zero STI payment for FY25
equated to 0 percent of salary
(59.2 percent for FY24), and
0 percent of the maximum possible
STI award (83.4 percent for FY24).
STI
COMPONENTMEASURE
STI TARGETOUTCOME
STI EARNED
AND AWARDED
WEIGHTING
%
$
(INCLUDING
KIWISAVER)ACHIEVEMENT ON STI TARGET
%
AWARDED
FOR STI
MEASURE
$
AWARDED
FOR STI
MEASURE
FinancialEBITDAF less
capital charge
60%$536,515
EBITDAF less capital charge was below the 85% threshold for
STI payment, resulting in a 0% achievement for this measure
0%$0
Scorecard
of other STI
measures
Grow
renewable
generation
to speed our
path to a
resilient, net
zero future
12%$1 07, 3 0 3Ruakākā BESS delivered
Consent attained for Ruakākā Solar, Mt Munro Wind,
Manawatū Battery
Approval granted to construct Ruakākā Solar
Public charging network is expanding
West Wind capacity has been restored
75%$0
Deliver cleaner,
cheaper
energy through
innovation that
unlocks value
for customers
10%$89,419Total Meridian customers now exceed 405,000
Over 1,700 customers supported through our
hardship programme
Community decarbonisation support fund
contributions exceeded
100%$0
Deliver
operational
excellence so
everything
we do aligns
to deliver our
goals
10%$89,419A New Zealand small and large-scale LNG facility was assessed.
Contracts to support the Huntly Strategic Reserve signed
All key technology projects completed, including Finance
Transformation (delivered on time and on budget)
More than doubled the targeted reduction of outage
days, achieving a reduction of 238 days (target reduction
was 100 days)
50%$0
Grow capability
and culture
because how
we do the mahi
is what will
make the real
difference
8%$71,535Progress indicators positive for employee diversity
and engagement
Wellbeing strategic initiatives delivered
Safety indicators are improved
Meridian is the highest-rated utility in Asia Pacific DJSI index
Half by 30 initiative reset completed
75%$0
Scorecard subtotal40%$ 3 5 7, 676STI Scorecard achievement
The Board considered the requirements of the ‘Safety
performance and leadership’ gate were met. No other
adjustments to the scorecard percentage result were applied
75%$0
Total STI target100%$894,191Total STI payment against target$0
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(c) FY25 CEO LTI
outcomes (awarded)
For the three-year period ended
FY25, the Chief Executive was
eligible for an LTI based on a grant of
Performance Share Rights set at 40
percent of base salary at the start of
the three-year Performance Period
(1 July 2022). The vesting of shares
at the end of the vesting period was
subject to TSR performance hurdles.
TSR PERFORMANCE HURDLES
LTI
WEIGHTINGOUTCOME
WEIGHTED
OUTCOME
Absolute TSR – must be greater than the company’s cost of equity benchmark on a
compounding basis
50%100%50%
Relative TSR against the peer group
*
:
• Below the 50th percentile TSR – 0% vests
• 50th percentile TSR – 50% vests
• ≥ 75th percentile TSR – 100% vests
• Between the 50th and 75th percentile TSR – 50-100% vests, calculated on a straight-line
pro-rata basis
50%100%50%
* The number of Relative Return Share Rights that vest will be based on the Company's TSR over the Performance Period relative to the performance of a peer group of the
other companies listed in the S&P/NZX50 Index over the same period.
Upon vesting, each Performance Share Right is eligible for one ordinary share, which is issued from Treasury Shares to the
Chief Executive.
Performance Share Rights (PSRs) held by the Chief Executive (as at 30 June 2025)
GRANT
NAMEPSR AWARD DATEVESTING DATE
BALANCE
OF PSRS
AT 30
JUNE 2024
AWARDED DURING
THE REPORTING
PERIOD
PSRS
LAPSED/
FORFEITED
DURING
THE
REPORTING
PERIOD
PSRS VESTED DURING
THE REPORTING PERIOD
SHARES ISSUED/TRANSFERRED
DURING THE REPORTING PERIOD
BALANCE
OF PSRS
AT 30
JUNE 2025
PSRS
AWARDED
MARKET
PRICE
AT
AWARD
PSRS
VESTED
MARKET
PRICE AT
VESTING
DATE
VESTING
DATE
SHARES
ISSUED
MARKET
PRICE
AT
ISSUE
DATEISSUE DATE
F Y2 2 LTI21 October 202121 October 2024136,98 4–––136,98 46.0821 October 2024153,9695.8920 November 2024–
F Y23 LTI3 November 20223 October 2025166,150–––––––––166,150
F Y24 LTI24 October 202324 October 2026142,180——(142,759)–––––––
F Y2 5 LTI25 October 202421 September 2027–171,2866.24(171,286)–
Meridian has a policy to ensure that the participants of the Executive Team LTI plan are not permitted to enter into transactions (whether through the use of derivatives
or otherwise) that limit the economic risk of participating in the plan.
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Meridian share
ownership
Chief Executive
and Executive Team
For most of FY25, Meridian did not
have a share ownership requirement
for the Chief Executive and Executive
Team, but the Board encouraged
them to have Meridian Energy
shareholdings. The Chief Executive
and Executive Team members have
all been issued performance share
rights under the Meridian Long-term
Incentive scheme which will convert
to shares upon vesting in accordance
with that scheme. From May 2025,
Meridian introduced a Minimum
Encouraged Shareholding Policy
applicable to Directors, the Chief
Executive and the Executive Team.
MINIMUM SHAREHOLDING POLICY
bit.ly/44Qw3tR
The current individual shareholdings
are affected by employee tenure,
with longer-serving Executive
Team members having had longer
timeframes in which to accumulate
Meridian shares.
The current individual Meridian
shareholdings of the Chief Executive
and two of the longer-serving
Executive Team members are below.
NUMBER OF MERIDIAN
SHARES OWNED (EXCLUDES
PERFORMANCE SHARE RIGHTS)
VALUE OF
SHARES AS AT
30 JUNE 2025
VALUE OF
SHARES AS A %
OF FY25 SALARY
FY25 Chief Executive
6 0 9, 0 1 7. 3 8$3,593,202.52251%
FY25 Chief Financial
Officer
2 6 4 , 2 9 7. 8 9$ 1 , 5 5 9, 3 5 7. 5 2214%
General Manager,
Development
312,928.38$ 1 , 8 4 6 , 2 7 7. 4 2322%
Remainder of Executive
Team combined
260,819.03$1,538,832.3151%
Employee share ownership
Employees are invited to join
Meridian’s employee share ownership
plan, MyShare. Under MyShare,
Meridian shares are purchased for
participating employees, funded by
monthly pay deductions of between
$500 and $5,000 per annum. After
three years, participants may be
eligible for award shares subject
to ongoing employment (Tenure
Award Shares) and the company
TSR outperforming a peer group of
competitors (Performance Award
Shares). From the start of FY25, 55
percent of employees participated
in MyShare. At the start of FY26,
60 percent of eligible employees
have Meridian shares in MyShare,
and 58 percent are actively
contributing to MyShare in FY26.
8 Median employee Salary and Total Remuneration excludes casual employees (and in FY24 only, the one Flux
UK employee)
9 Median employee Salary and Total Remuneration excludes casual employees (and in FY24 only, the one Flux
UK employee)
ESG disclosures
Chief Executive/
Employee pay gap
This pay gap represents the
number of times greater the Chief
Executive’s remuneration is than the
remuneration of the median of all
Meridian employees.
For the purposes of determining
median employee pay, all permanent
full-time, permanent part-time and
fixed-term employees below the
Chief Executive are included, with
part-time employee remuneration
adjusted to a full-time-equivalent
amount.
As at 30 June 2025, the FY25 Chief
Executive’s base salary of $1,433,000
was 11.9 times the median employee
salary of $120,000 per annum (FY24:
12.5 times).
8
The Chief Executive’s total
remuneration, including STI earned
and LTI vested, of $2,473,105 was
18 times the median employee total
remuneration of $137,410 (FY24
26.8 times).
9
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Chief Executive/Other employee
remuneration increase ratio
The Chief Executive’s salary increased
by four percent between FY24 and
FY25. The median employee salary in
FY25 increased by 9.1 percent from
the median employee salary in FY24,
resulting in a ratio of 0.44:1 Chief
Executive to median employee salary
increase (FY24 2.58:1).
The Chief Executive’s total
remuneration decreased by 23.8
percent from FY24 to FY25. Median
employee total remuneration in FY25
increased by 13.2 percent from FY24.
This resulted in a ratio of -1.8:1 Chief
Executive to median employee Total
Remuneration increase (FY24 16.9:1).
Gender pay gap
The table shows the difference
between full-time, full-year
equivalent median and average base
salaries and the total remuneration
of Meridian employees by gender,
regardless of the nature or seniority
of work. The overall FY25 median
gender pay gap, while still large, has
improved from FY24.
Meridian has an ongoing focus
on increasing the number and
proportion of women at senior,
higher-paying levels of the
organisation. This will help to address
the overall current gender pay gap,
which is largely an outcome of
gender representation differences in
roles at different levels.
Meridian also reviews its salary data to
ensure that there is no inappropriate
pay gap (i.e. not due to performance,
skills, experience, etc.) between
men and women performing roles
of similar size, type and seniority.
Comparing the median salary of men
and women in roles of a comparable
size and nature, Meridian has a
minimal gender pay gap at most job
levels. The median gender pay gap
(by Position in Range across roles of
similar size) is 0.4 percent.
ALL
EMPLOYEES
(EXCLUDING CE)
MALE
EMPLOYEES
(EXCLUDING CE)
FEMALE
EMPLOYEES
GENDER
PAY GAP
FY25
PREVIOUS
YEAR GENDER
PAY GAP FY24
Median salary$120,000$134,318$92,00031.5%33.1%
Average salary$1 2 7,0 9 5
$141,393$109,957
22.2%
22.2%
Median total
remuneration
$137,410$156,000$104,10433.3%35.2%
Average total
remuneration
$149,901$ 1 67,9 0 0$128,32623.6%23.8%
Pay gap: 1 – (Women $/Men $)
Ethnicity pay gap
Meridian is committed to attracting
more Māori and Pacific Peoples
employees into the workforce, at
all levels. As part of that, Meridian
monitors the ethnicity pay gap in two
target ethnic groupings, against pay
of employees of other ethnicities.
There is a minimal Māori and Pacific
Peoples ethnicity pay gap (~1.5
percent) against all roles of a similar
size. However, comparing median
salaries across all roles, the larger
ethnicity pay gaps indicated reflect
that many of our Māori and Pacific
Peoples employees are in lower-level
(and therefore lower-paying) roles.
Our diversity initiatives aim to address
this over time.
MĀORI
PACIFIC
PEOPLES
Ethnicity pay
across roles of
a similar size
gap (Position in
range)
1.5%1.4%
Ethnicity pay
gap across roles
at all levels
(Median salary)
31.0%25.7%
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Remuneration bands
The following table notes the number of employees and former employees of
Meridian and its subsidiaries, not being directors of the issuer, who during the
reporting period received remuneration and any other benefits in their capacity
as employees, the value of which was or exceeded $100,000 per annum (in
brackets of $10,000).
This include 262 employees no longer employed by Meridian Energy Limited
or its subsidiaries.
BAND
TOTAL
GROUP
100,000 - 109,99958
110,000 - 119,99954
120,000 - 129,99953
130,000 - 139,99957
140,000 - 149,99953
150,000 - 159,99958
160,000 - 169,99965
170,000 - 179,99945
180,000 - 189,99941
190,000 - 199,99929
200,000 - 209,99917
210,000 - 219,99929
220,000 - 229,99917
230,000 - 239,99917
240,000 - 249,99915
250,000 - 259,9997
260,000 - 269,9995
270,000 - 279,9994
280,000 - 289,9992
290,000 - 299,9993
300,000 - 309,9992
310,000 - 319,9991
320,000 - 329,9993
BAND
TOTAL
GROUP
330,000 - 339,9993
340,000 - 349,9992
350,000 - 359,9994
360,000 - 369,9994
370,000 - 379,9993
380,000 - 389,9994
390,000 - 399,9991
400,000 - 409,9992
440,000 - 449,9993
450,000 - 459,9991
460,000 - 469,9992
750,000 - 759,9991
820,000 - 829,9991
840,000 - 849,9991
880,000 - 889,9991
920,000 - 929,9991
1,050,000 - 1,059,9991
1,060,000 - 1,069,9991
1,080,000 - 1,089,9991
1,390,000 - 1,399,9991
3,250,000 - 3,259,9991
674
ABOVE
Our Ōtautahi Christchurch office.
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Director remuneration
Approved Director
remuneration for FY25
As Meridian is an NZX-listed
company, directors’ fees (Board
remuneration) must be approved
by a majority of shareholders voting
at a shareholder meeting. Meridian
amended its Remuneration Policy
to include how the remuneration
of directors is set. A copy of the
Remuneration Policy is on our
website.
REMUNERATION POLICY
bit.ly/3yqFjaK
Shareholders are kept informed of
any changes in the way the company
allocates the pool of approved
director fees. Refer to our Corporate
Governance Statement.
CORPORATE GOVERNANCE
STATEMENT
bit.ly/4nAPfmL
Director remuneration is paid from
the total director fee pool that was
last approved by shareholders
at the Annual General Meeting
on 6 October 2021. Prior to the
meeting and vote, Meridian had
consulted a number of shareholder
representatives to gain their
input, and engaged independent
consultants PwC to prepare a
benchmarking report of Meridian’s
director fees against those of
comparable companies. Further
details of that report are available
on the NZX website.
BENCHMARKING SUMMARY
REPORT, NZX
bit.ly/4ccj9a0
Prior to 2021, the previous change
to directors’ fees was in 2016.
The total pool for Board fees is set
out in the following table.
Annual director fee pool
PRIOR TO
15 JUNE 2024
FROM
15 JUNE 2024
TO 30 JUNE 2024FY25
Board fees$912,500$912,500$950,500
Committee fees$135,500$135,500$222,700
Flux Board fees$134,000––
Unallocated fee pool$151,000151,00025,800
Total pool$1,333,000$1,199,000$1,199,000
The Director fee pool of $1,199,000 was approved by shareholders in 2021.
The pool was subsequently increased in accordance with rule 2.11.3 of the
NZX Listing Rules to enable two independent directors of Flux to be paid.
Those independent Flux directors resigned late in FY24 and were replaced by
Meridian executives who are not paid for their roles as Flux directors. As per the
Note to Shareholders accompanying the 2024 Notice of ASM, the fee pool was
re-allocated with effect from 1 July 2025 by increasing fees paid for individual
Director and Committee roles. The overall Director fee pool remains at the level
approved in 2021.
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Director remuneration received in FY25
NAME OF DIRECTORBOARD FEES
AUDIT AND
RISK COMMITTEE
PEOPLE,
REMUNERATION
AND CULTURE
COMMITTEE
SAFETY AND
SUSTAINABILITY
COMMITTEE
CYBER SECURITY
COMMITTEE
ADDITIONAL
AD HOC
COMMITTEES
10
TOTAL
REMUNERATION
Mark Verbiest (Chair)
11
$250,000$4,500$254,500
David Carter$116,750$12,000$6,000$9,000$143,750
Graham Cockroft$116,750$16,300$12,000$6,000$151,050
Michelle Henderson$116,750$16,300$12,000$145,050
Julia Hoare$116,750$32,600
(Chair)
$4,500$153,850
Nagaja Sanatkumar$116,750$12,000$27,000
(Chair)
$13,500
(Chair)
$169, 250
Tania Simpson$116,750$27,000
(Chair)
$12,000$155,750
Total$950,500$65,200$51,000$63,000$25,500$18,000$1,173,200
Directors are reimbursed for all reasonable and properly documented expenses incurred in performing their duties as Meridian Directors.
No additional payments, shares or benefits were received by Directors in FY25.
Individual Meridian Board-approved annual fee breakdown
POSITION HELDFY24FY25
Chair$212,000$250,000
Director$116,750$116,750
Audit and Risk Committee Chair$25,000$32,600
Audit and Risk Committee member$10,500$16,300
Safety and Sustainability Committee Chair$21,000$27,000
Safety and Sustainability Committee member$9,500$12,000
People, Remuneration and Culture Committee Chair$21,000$27,000
People, Remuneration and Culture Committee member $9,500$12,000
Cyber Security Committee Chair—$13,500
Cyber Security Committee member—$6,000
10 The only ad hoc Committee for which directors received payment was the Committee for the NZ Windfarms acquisition.
11 Does not receive additional fees for standing committee membership.
Flux Board annual fee breakdown
POSITION HELDFY24FY25
Flux Chair$84,000N/A
Flux independent director$50,000N/A
Independent directors served on the Flux board until 14 June 2024.
During FY25 all directors of Meridian subsidiaries were Meridian employees.
Meridian employees appointed as directors of Meridian subsidiaries do not receive any directorship fees.
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Further disclosures
Further disclosures required by the NZX Listing Rules,
the Companies Act 1993 and other legislation and rules.
IMAGE
West Wind Farm,
Mākara, Wellington.
102
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Meridian Energy
The table outlines the current directors of Meridian Energy Limited. There were
no director changes during FY25. The average director tenure is five years.
COMPANY NAMEDIRECTORS
Meridian Energy LimitedDavid Carter, Graham Cockroft, Michelle Henderson, Julia
Hoare, Nagaja Sanatkumar, Tania Simpson, Mark Verbiest
12 NZX altered its guidance this year to specifically include directors’ fees in the application of the factor asking
issuers to consider whether a ‘substantial’ portion of a director’s annual revenue is derived from the issuer
(see Factor 2 within Table 2.4 of the NZX Code). Meridian has treated a 5 percent portion as being substantial
in considering the application of the factor.
The Board has determined that as at
30 June 2025, all Meridian directors
are independent. The factors relevant
to this determination are that:
• no director is currently, or has
been within the past three years,
employed in an executive role by
the issuer or any of its subsidiaries
• while all directors are currently
deriving, or have within the last 12
months derived, more than five
percent of their annual revenue
from the issuer (including through
director’s fees), the Board is
nonetheless satisfied that when
all relevant factors are considered
this does not compromise director
independence
12
• no director is currently, or has in
the past 12 months been, in a
senior role in a provider of material
professional services (other than
an external auditor) to the issuer or
any of its subsidiaries
• no director is currently, or has in the
past three years been employed by
the external auditor to the issuer or
any of its subsidiaries
• no director currently has, or has
had within the last three years, a
material business relationship (e.g.
as a supplier or customer) with the
issuer or any of its subsidiaries
• no director is a substantial product
holder of the issuer, or a senior
manager of, or a person otherwise
associated with, a substantial
product holder of the issuer
• no director is currently, or
within the last three years has
been in a material contractual
relationship with the issuer or any
of its subsidiaries, other than as a
director
• no director has close family
ties or personal relationships
(including close social or business
connections) with anyone in the
categories listed
• no director has been a director of
the entity for a period of 12 years
or more.
Current Board and Executive Team gender composition
In accordance with NZX Listing Rules, the gender composition of Meridian’s
directors and officers as at 30 June 2025 is:
AS AT 30 JUNE 2025AS AT 30 JUNE 2024
FEMALEMALE
NON-
BINARYFEMALEMALE
NON-
BINATRY
Number of directors43–43–
Percentage of directors57%43%0%57%43%0%
Number of officers47–47–
Percentage of officers36%64%0%36%64%0%
103
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Meridian subsidiaries
The following tables list the
subsidiaries of Meridian Energy
Limited during the accounting period,
the subsidiaries of those subsidiaries,
and any changes to those subsidiaries
and among the people who held
office as directors.
New Zealand subsidiaries
COMPANY NAMECOMPANY NUMBERDIRECTORSFURTHER INFORMATION
Dam Safety
Intelligence Limited
6152623Michael Roan, Jason Stein Michael Roan was appointed director on 30 June 2025
Neal Barclay ceased to be a director on 30 June 2025
EV Infrastructure
Partners Limited
8491206Michael Roan, Jason WoolleyMeridian Energy Limited acquired and became registered
owner of all shares on 28 March 2025
Michael Roan was appointed director on 28 March 2025
and Jason Woolley was appointed director on 5 May 2025
Flux Federation Limited6292491Michael Roan, Jason WoolleyJason Woolley was appointed director on 4 June 2024
Neal Barclay ceased to be a director on 30 June 2025
Kōkako SPV Limited8967098Michael Roan, Guy WaiparaNo changes
Meridian Energy
Captive Insurance
Limited
1612020Michael Roan, Jason WoolleyJason Woolley was appointed director on 30 June 2025
Neal Barclay ceased to be a director on 30 June 2025
Meridian Energy
International Limited
1114014Michael Roan, Jason WoolleyJason Woolley was appointed director on 30 June 2025
Neal Barclay ceased to be a director on 30 June 2025
Meridian Limited863312Michael Roan, Jason Woolley Jason Woolley was appointed director on 30 June 2025
Neal Barclay ceased to be a director on 30 June 2025
Powershop New
Zealand Limited
8184062Michael Roan, Jason Woolley Jason Woolley was appointed director on 30 June 2025
Neal Barclay ceased to be a director on 30 June 2025
Whetu SPV Limited9336741Michael Roan, Guy WaiparaRegistered on the Companies Office register on
22 April 2025
Michael Roan and Guy Waipara were appointed directors
on 22 April 2025
UK subsidiary
COMPANY NAMEDIRECTORSFURTHER INFORMATION
Flux UK LimitedRush Bhatt, Bharat RatanpalNicola Kennedy ceased to be a director on 2 July 2024
104
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Particulars of entries in the
interests register made during
the accounting period
Shareholders can review Meridian
Energy Limited’s full interests register
on request.
In accordance with sections 140 and
211(1)(e) of the Companies Act 1993,
the table lists the general disclosures
of interest by directors of Meridian
Energy Limited.
NAMEPOSITIONDISCLOSURES
David CarterDirector, Meridian Energy LimitedBeca Group Limited, Director and Employee
Beca Group Holdings Limited, Director
Beca Insurance Company Pte Limited, Director
BGL Depositary No. 2 Limited, Director
BGLIR Trustee Limited, Director
BGL Nominees Limited, Director
BGCF Trustee Limited, Director
Beca Holding (Thailand) Co., Ltd, Director
Beca (Thailand) Co., Ltd, Director
Beca – PT Bimatekno Karyatama Konsultan, President Commissioner
Graham CockroftDirector, Meridian Energy LimitedAGL Energy Limited, Director
First Fibre MidCo Limited, Director
First Fibre BidCo Limited, Director
Tuatahi First Fibre Limited, Director
UFF Holdings Limited, Director
Michelle HendersonDirector, Meridian Energy LimitedSouth Port NZ Limited, Director
Awarua Holdings Limited, Director^
Julia HoareDirector, Meridian Energy Limited Auckland International Airport Limited, Chair
Comvita Limited, Director**
Marsden Cove Marinas Limited, Director*
Marsden Maritime Holdings Limited, Director*
Northport Group Limited, Chair*
Northport Limited, Chair*
Port of Tauranga Limited, Chair
Port of Tauranga Trustee Company Limited, Director
Primeport Timaru Limited, Director
105
MENUFURTHER DISCLOSURES
MERIDIAN ENERGY INTEGRATED REPORT 2025
NAMEPOSITIONDISCLOSURES
Nagaja SanatkumarDirector, Meridian Energy LimitedANZ Bank of New Zealand Limited, Director*
Cawthron Institute, Director**
First Fibre Midco Limited, Director
First Fibre Bidco NZ Limited, Director
Foodstuffs North Island Limited, Director**
Foodstuffs North Island Limited, Digital Advisor*
IMAgEN8 Limited, Director
New Zealand Post Limited, Director**
Southern Cross Healthcare Limited, Director
Southern Cross Medical Care Society, Director
Southern Cross Health Trust, Trustee
Tuatahi First Fibre Limited, Director
UFF Holdings Limited, Director
Tania SimpsonDirector, Meridian Energy LimitedAuckland International Airport Limited, Director
Tainui Group Holdings Limited, Director**
Tui Topco Limited, Director
Tui Bidco Limited, Director
Ukaipo Limited, Director
Waikato Tainui Fisheries Limited, Director**
Waste Management NZ Limited, Director
WMNZ Holdings Limited, Director
Mark VerbiestDirector, Meridian Energy Limited GNS/NIWA, independent Convenor
Fonterra Independent Assessment Panel, Member
Summerset Group Holdings Limited, Chair
Willis Bond & Co Limited, adviser to Property Income Fund Limited
* Entries added by directors and effective during the year ended 30 June 2025.
** Entries removed by directors during the year ended 30 June 2025.
^ Amalgamated with South Port NZ Limited 18 June 2025
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Particulars of entries in the
interests register made during the
accounting period – subsidiaries
In accordance with sections 140 and
211(1)(e) and (2) of the Companies
Act 1993, the table lists the general
disclosures of interest by directors
of Meridian Energy Limited’s
subsidiaries.
NAMEPOSITIONDISCLOSURES
Neal Barclay*^Employee – Chief ExecutiveMeridian Energy Limited
Mike Roan*^ Employee – Chief Financial Officer
Meridian Energy Limited
Jason Woolley*^ Employee – General CounselMeridian Energy Limited
Jason Stein^ (director of Dam Safety Intelligence Limited)Employee – Chief People OfficerMeridian Energy Limited
Guy Waipara^ (director of Kōkako SPV Limited)Employee – GM, Development Meridian Energy Limited
Bharat Ratanpal^ (director of Flux-UK Limited)Employee – Chief Information Officer
and Interim Chief Executive of Flux
Federation Limited
Meridian Energy Limited
Nicola Kennedy^ (director of Flux-UK Limited)Employee – Chief ExecutiveFlux Federation Limited
Rush Bhatt (director of Flux-UK Limited)Employee – Chief Financial OfficerFlux Federation Limited
* This person is a director of more than one Meridian Energy Limited subsidiary, see the ’Meridian subsidiaries’ section above.
^ This person has equity holdings in Meridian Energy Limited. See also ’Executive Team equity holdings’ below.
During FY25, the following
disclosures were made in
accordance with section 148
of the Companies Act 1993.
DIRECTOR
NATURE OF
RELEVANT INTERESTDATEACQUISITION/DISPOSALCLASS
NUMBER
ACQUIRED*
CONSIDERATION
RECEIVED
PER SHARE
David CarterBeneficial interest7 May 2025AcquisitionShares6,000$5.83
Michelle HendersonBeneficial interest26 March 2025Acquisition -
Dividend Reinvestment Plan
Shares75*$5.37
Julia HoareLegal interest20 September 2024Acquisition –
Dividend Reinvestment Plan
Shares184$ 5.96
Legal interest26 March 2025Acquisition –
Dividend Reinvestment Plan
Shares88$5.37
Nagaja SanatkumarBeneficial interest29 May 2025AcquisitionShares8 ,950*$5.58
Tania SimpsonBeneficial interest4 September 2024AcquisitionShares2,148$6.04
Beneficial interest26 March 2025Acquisition -
Dividend Reinvestment Plan
Shares74*$5.37
Beneficial interest31 March 2025AcquisitionShares1,407*$5.67
Mark VerbiestBeneficial interest20 September 2024Acquisition –
Dividend Reinvestment Plan
Shares1,245$ 5.94
Beneficial interest26 March 2025Acquisition –
Dividend Reinvestment Plan
Shares585$5.37
* Rounded to the nearest whole number.
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Directors’ indemnity
and insurance
Pursuant to section 162 of the
Companies Act 1993, as permitted
by Meridian’s Constitution, Deeds
of Indemnity have been given to
directors for potential liabilities and
costs they might incur for actions
or omissions in their capacity
as directors. From 1 May 2025,
Meridian’s directors’ and officers’
liability insurance was renewed
to cover risks normally covered
by such policies. Insurance is not
provided for dishonest, fraudulent,
malicious or wilful acts or omissions.
Donations
The Meridian Energy Group made
donations totalling $2,244,298
during FY25. Meridian does not
make donations to political parties.
All donations must be approved
by the Board.
Auditor
Meridian’s auditor is the Auditor-
General who has appointed Anthony
Smith of Deloitte Limited to carry out
the audit of Meridian Energy Ltd and
its subsidiaries on behalf of the
Auditor-General.
The fees for other assurance,
agreed upon procedures and other
services by Deloitte Limited during
FY25 totalled $0.3 million (FY24:
$0.3 million) and included limited
assurance of sustainability reporting
($0.2 million) and other services
($0.1 million) which included $66,822
(FY24: $11,000) for cyber security
services and $14,000 (FY24: $14,000)
for administrative and other advisory
services to the Corporate Taxpayers
Group of which Meridian, alongside
a number of other organisations, is
a member.
Interests in Meridian securities
In accordance with NZX Listing
Rule 3.7.1(d), as at 30 June 2025
Meridian Energy Limited directors
had the following relevant interests
in Meridian Energy Limited Quoted
Financial Products:
DIRECTOR
NUMBER OF
SHARES*
NUMBER
OF BONDS
David Carter24,000100,000
Graham Cockroft40,000–
Michelle
Henderson
7, 4 0 9 *–
Julia Hoare8,678–
Nagaja
Sanatkumar
17,720*–
Tania Simpson8,769*–
Mark Verbiest51,658–
* Rounded to the nearest whole number.
Executive Team equity holdings
As at 30 June 2025, the Executive
Team had relevant interests in
Meridian Energy Limited shares
as follows:
EXECUTIVE TEAM
NUMBER OF
SHARES
UNVESTED
PERFORMANCE
SHARE
RIGHTS
Neal Barclay609,017166,150
Rory Blundell2,70235,072
Lisa Hannifin4 4,993144,552
Tania Palmer52,134145,302
Helen Peters2,15035,072
Bharat Ratanpal20,547113,614
Mike Roan264,298185,096
Claire Shaw34,428105,000
Jason Stein82,621144,406
Guy Waipara312,928149,802
Jason Woolley21,243110,884
108
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MERIDIAN ENERGY INTEGRATED REPORT 2025
Twenty largest registered
holders of Quoted Financial
Products as at the balance date
This table lists the company’s
20 largest registered shareholders
as at 30 June 2025.
NAMESNUMBER OF SHARES% OF ISSUED SHARES
THE SOVEREIGN IN RIGHT OF NEW ZEALAND ACTING BY AND THROUGH THEIR MINISTER
OF FINANCE AND MINISTER FOR STATE OWNED ENTERPRISES
1,335,576,83551.01
HSBC NOMINEES (NEW ZEALAND) LIMITED – NZCSD162,430,020
6.20
HSBC NOMINEES (NEW ZEALAND) LIMITED A/C STATE STREET –NZCSD141,851,3165.41
JP MORGAN CHASE BANK NA NZ BRANCH–SEGREGATED CLIENTS ACCT – NZCSD115,458,1294.41
CUSTODIAL SERVICES LIMITED86,931,0133.32
BNP PARIBAS NOMINEES (NZ) LIMITED – NZCSD82,473,1033.15
CITIBANK NOMINEES (NEW ZEALAND) LIMITED – NZCSD73,703,7522.81
ACCIDENT COMPENSATION CORPORATION – NZCSD 4 6,72 2,9271.78
HSBC NOMINEES A/C NZ SUPERANNUATION FUND NOMINEES LIMITED – NZCSD 35,386,6731.35
TEA CUSTODIANS LIMITED CLIENT PROPERTY TRUST ACCOUNT – NZCSD 3 4 ,0 8 7, 7 5 51.30
JBWERE (NZ) NOMINEES LIMITED 2 7, 3 8 7, 2 2 71.04
FORSYTH BARR CUSTODIANS LIMITED23,514,9770.89
NEW ZEALAND DEPOSITORY NOMINEE LIMITED23 ,031,9790.87
BNP PARIBAS NOMINEES (NZ) LIMITED – NZCSD19,063,5160.72
ANZ WHOLESALE AUSTRALASIAN SHARE FUND – NZCSD14,935,6990.57
SIMPLICITY NOMINEES LIMITED – NZCSD14,457,8700.55
FNZ CUSTODIANS LIMITED12,557,5000.47
GENERATE KIWISAVER PUBLIC TRUST NOMINEES LIMITED – NZCSD12,063 ,9040.46
PT (BOOSTER INVESTMENTS) NOMINEES LIMITED10,591,9490.40
JBWERE (NZ) NOMINEES LIMITED7, 8 7 7, 4 4 50.30
* Held through New Zealand Central Securities Depository Limited (NZCSD). NZCSD provides a custodial service that allows electronic trading of securities by its members.
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MERIDIAN ENERGY INTEGRATED REPORT 2025
This table lists the company’s
20 largest registered holders of
MEL060 retail fixed-rate bonds
as at 30 June 2025.
NAMESNUMBER OF BONDS% OF ISSUED BONDS
CUSTODIAL SERVICES LIMITED 45,911,0002 2.95
FORSYTH BARR CUSTODIANS LIMITED33,364,000
16.68
JBWERE (NZ) NOMINEES LIMITED19,536,0009.76
FNZ CUSTODIANS LIMITED18,996,0009.49
HSBC NOMINEES (NEW ZEALAND) LIMITED – NZCSD12,300,0006.15
BNP PARIBAS NOMINEES (NZ) LIMITED – NZCSD8,144,0004.07
QUEEN STREET NOMINEES ACF PIE FUNDS – NZCSD4,800,0002.40
INVESTMENT CUSTODIAL SERVICES LIMITED4,477,0002.23
SOUTHLAND BUILDING SOCIETY – NZCSD3,800,0001.90
FORSYTH BARR CUSTODIANS LIMITED2,949,0001.47
NZX WT NOMINEES LIMITED2,675,0001.33
HSBC NOMINEES (NEW ZEALAND) LIMITED A/C STATE STREET – NZCSD2,020,0001.01
MT NOMINEES LIMITED – NZCSD1,700,0000.85
ANZ FIXED INTEREST FUND – NZCSD1,695,0000.84
FNZ CUSTODIANS LIMITED1,508,0000.75
JBWERE (NZ) NOMINEES LIMITED1,500,0000.75
ANZ WHOLESALE NZ FIXED INTEREST FUND – NZCSD1,500,0000.75
PIN TWENTY LIMITED1,400,0000.70
ADMINIS CUSTODIAL NOMINEES LIMITED1,388,0000.69
JPMORGAN CHASE BANK NA NZ BRANCH–SEGREGATED CLIENTS ACCT – NZCSD1,200,0000.60
* Held through New Zealand Central Securities Depository Limited (NZCSD). NZCSD provides a custodial service that allows electronic trading of securities by its members.
110
MENUFURTHER DISCLOSURES
MERIDIAN ENERGY INTEGRATED REPORT 2025
This table lists the company’s
20 largest registered holders of
MEL070 retail fixed-rate bonds
as at 30 June 2025.
NAMESNUMBER OF BONDS% OF ISSUED BONDS
CUSTODIAL SERVICES LIMITED85,064,00028.35
FORSYTH BARR CUSTODIANS LIMITED36,595,000
12.19
NZPT CUSTODIANS (GROSVENOR) LIMITED – NZCSD24,430,0008.14
BNP PARIBAS NOMINEES (NZ) LIMITED – NZCSD22,754,0007. 5 8
FNZ CUSTODIANS LIMITED21,259,0007.0 8
TEA CUSTODIANS LIMITED CLIENT PROPERTY TRUST ACCOUNT – NZCSD15,270,0005.09
GENERATE KIWISAVER PUBLIC TRUST NOMINEES LIMITED – NZCSD10,714,0003.57
ANZ FIXED INTEREST FUND – NZCSD9,420,0003.14
JBWERE (NZ) NOMINEES LIMITED8,663,0002.88
ANZ WHOLESALE NZ FIXED INTEREST FUND – NZCSD7,270,0002.42
HSBC NOMINEES (NEW ZEALAND) LIMITED – NZCSD7,000,0002.33
CITIBANK NOMINEES (NEW ZEALAND) LIMITED – NZCSD6,770,0002.25
FORSYTH BARR CUSTODIANS LIMITED4,715,0001.57
NZX WT NOMINEES LIMITED3,651,0001.21
HSBC NOMINEES (NEW ZEALAND) LIMITED A/C STATE STREET – NZCSD2,900,0000.96
INVESTMENT CUSTODIAL SERVICES LIMITED2,776,0000.92
JBWERE (NZ) NOMINEES LIMITED2,689,0000.89
DUNEDIN CITY COUNCIL2,070,0000.69
MT NOMINEES LIMITED – NZCSD1,590,0000.53
CUSTODIAL SERVICES LIMITED1,447,0000.48
* Held through New Zealand Central Securities Depository Limited (NZCSD). NZCSD provides a custodial service that allows electronic trading of securities by its members.
Substantial security holder
The following information is given pursuant to section 293 of the Financial Markets Conduct Act 2013 (FMCA). According to
notice given pursuant to section 280 of the FMCA, the substantial security holder in the company and its relevant interests
as at the date of the notice are noted in the table. The total number of voting products in the class as at 30 June 2025 was
2 , 6 1 7, 8 6 4 , 0 9 6 .
13
ORDINARY SHARES
RELEVANT INTEREST
IN NUMBER OF SHARES
% OF SHARES HELD
AT THE DATE OF NOTICEDATE OF NOTICE
The Sovereign in Right of New Zealand1,321,595,58751.016 July 2015
13 As at 30 June 2025, the total number of ordinary shares was 2,615,469,348, which excludes 2,394,748 ordinary shares held by Meridian as treasury stock.
111
MENUFURTHER DISCLOSURES
MERIDIAN ENERGY INTEGRATED REPORT 2025
Distribution of shareholders and
holdings as at 30 June 2025
This table provides information on
the distribution of shareholders and
holdings of Meridian Energy Limited
ordinary shares as at 30 June 2025.
SIZE OF HOLDINGNUMBER OF HOLDERS% NUMBER OF SHARESHOLDING QUANTITY %
1 to 1,0007, 73 319.425,048,7710.19
1,001 to 5,00019,127
48.0351,525,945
1.96
5,001 to 10,0007,0 2 31 7. 6 352,633,1962.01
10,001 to 50,0005,40113.56103,799,0373 .97
50,001 to 100,0003470.8724,028,2250.92
100,001 to 500,0001370.3425,611,3330.98
> 500,000600.152,355,217,58989.97
Total39,8281002,617,864,096100
This table provides information on
the distribution of MEL060 retail
fixed-rate bonds as at 30 June 2025.
SIZE OF HOLDINGNUMBER OF BONDHOLDERS% OF BONDHOLDERSNUMBER OF BONDS% OF BONDS
1,001 to 5,000305.79150,0000.08
5,001 to 10,00013425.871,237,0000.62
10,001 to 50,00023946.145,798,0002.90
50,001 to 100,000499.4 63,746,0001.87
100,001 to 500,000336.377,498,0003.75
>500,000336.37181,571,00090.78
Total518100200,000,000100
This table provides information on
the distribution of MEL070 retail
fixed-rate bonds as at 30 June 2025.
SIZE OF HOLDINGNUMBER OF BONDHOLDERS% OF BONDHOLDERSNUMBER OF BONDS% OF BONDS
1,001 to 5,000196.1795,0000.03
5,001 to 10,0004012.99383,0000.13
10,001 to 50,00015149.024,443,0001.48
50,001 to 100,0003611.692,741,0000.91
100,001 to 500,0003511.368,806,0002.94
>500,000278.77283,532,00094.51
Total308100300,000,000100
112
MENUFURTHER DISCLOSURES
MERIDIAN ENERGY INTEGRATED REPORT 2025
Waivers from NZX
On 31 January 2020, NZX Regulation
published a waiver decision in respect
of Listing Rules 5.2.1 and 8.1.5,
which re-documented a prior waiver
decision dated 18 September 2013.
A copy of this waiver decision and a
summary of all waivers granted and
published by the NZX or relied on
by Meridian during the 12 months
preceding 30 June 2025 are available
on Meridian’s website.
NZX WAIVERS
bit.ly/3LPqwJM
Non-standard designation
In New Zealand, Meridian Energy
Limited has a ‘non-standard’ (NS)
designation on the NZX Main Board.
This is due to particular provisions of
the company’s Constitution, including
requirements that regulate the
ownership and transfer of Meridian
securities. The NS designation is also
required as a condition of any NZX
waivers and approvals.
Credit rating as at 30 June 2025
S&P Global Ratings reaffirmed
Meridian Energy Limited’s credit
rating of BBB+/Stable/A-2 on
19 July 2024.
14 In broad terms, a person has a ‘relevant interest’ in a share if the person (a) is the registered holder or beneficial owner of the share or (b) has the power to exercise, or control the exercise of, a right to vote attached to the share or
has the power to acquire or dispose of, or to control the acquisition or disposition of, that share. A person may also have a ‘relevant interest’ in a share in which another person has a ‘relevant interest’ depending on the nature of the
relationship between them.
Registration as a foreign company
Meridian has registered with the
Australian Securities and Investments
Commission as a foreign company
and has been issued with an
Australian Registered Body Number
of 151 800 396.
ASX disclosures
Meridian holds a foreign exempt
listing on the ASX. As a requirement
of admission, Meridian must make the
following disclosures:
• Meridian’s place of incorporation is
New Zealand.
• Meridian is not subject to Chapters
6, 6A, 6B and 6C of the Australian
Corporations Act dealing with the
acquisition of shares (including
substantial holdings and takeovers).
Shareholding restrictions
The Public Finance Act 1989 was
amended in June 2012 to include
restrictions on the ownership of
certain types of security issued
by each mixed ownership model
company (including Meridian) and
the consequences of breaching
those restrictions. The Constitution
incorporates these restrictions and
mechanisms for monitoring and
enforcing them.
A summary of the restrictions on the
ownership of shares under the Public
Finance Act and the Constitution is
set out below. If the company issues
any other class of shares, or other
securities confer voting rights, in the
future, the restrictions summarised
below will also apply to those other
classes of shares or voting securities.
51 percent holding
The Crown must hold at least 51
percent of the shares on issue.
The company must not issue, acquire
or redeem any shares if such issue,
acquisition or redemption would
result in the Crown’s holding falling
below this 51 percent holding.
10 percent Limit
No person (other than the Crown)
may have a ‘relevant interest’
14
in
more than 10 percent of the shares
on issue (10 percent Limit).
The company must not issue, acquire,
redeem or transfer any shares if it has
actual knowledge that such issue,
acquisition, redemption or transfer
will result in any person other than the
Crown exceeding the 10 percent Limit.
Ascertaining whether
a breach has occurred
If a holder of shares breaches the
10 percent Limit or knows or believes
that a person who has a relevant
interest in shares held by that holder
may have a relevant interest in shares
in breach of the 10 percent Limit, the
holder must notify the company of
the breach or potential breach.
Meridian may require a holder of
shares to provide the company with
a statutory declaration if the Board
knows or believes that a person is,
or is likely to be, in breach of the
10 percent Limit. That statutory
declaration is required to include,
where applicable, details of all
persons who have relevant interests
in shares as a result of the shares held
by or on behalf of that holder.
Determining whether
a breach has occurred
The company has the power to
determine whether a breach of the
10 percent Limit has occurred. In
broad terms, if:
• the company considers that a
person may be in breach of the
10 percent Limit, or
• a holder of shares fails to lodge
a statutory declaration when
required to do so or lodges a
declaration that has not been
completed to the reasonable
satisfaction of the company.
113
MENUFURTHER DISCLOSURES
MERIDIAN ENERGY INTEGRATED REPORT 2025
Meridian is required to determine
whether or not the 10 percent
Limit has been breached and, if so,
whether or not that breach was
inadvertent. The company must
give the affected shareholder the
opportunity to make representations
to the company before it makes a
determination on these matters.
Effect of exceeding
the 10 percent Limit
A person who is in breach of the
10 percent Limit must:
• comply with any notice that
they receive from the company
requiring them to dispose of shares
or their relevant interest in shares,
or take any other steps that are
specified in the notice, for the
purpose of remedying the breach
and reducing their holding below
the 10 percent Limit
• ensure that they are no longer
in breach within 60 days after
the date on which they became
aware, or ought to have been
aware, of the breach. If the breach
is not remedied within that
timeframe, the company may
arrange for the sale of the relevant
number of shares on behalf of
the relevant shareholder. In those
circumstances the company will
pay the net proceeds of sale, after
the deduction of any other costs
incurred in connection with the
sale (including brokerage and the
costs of investigating the breach
of the 10 percent Limit), to the
relevant shareholder as soon as
practicable after the sale has
been completed.
If a relevant interest is held in any
shares in breach of the 10 percent
Limit, then for as long as that breach
continues:
• no votes may be cast directly by
a shareholder in respect of any
of the shares in which a relevant
interest is held in excess of the
10 percent Limit
• a registered holder of shares in
which a relevant interest is held
in breach of the 10 percent Limit
will not be entitled to receive, in
respect of the shares in which a
relevant interest is held in excess of
the 10 percent Limit, any dividend
or other distribution authorised by
the Board in respect of the shares.
However, if the Board determines
that a breach of the 10 percent Limit
was not inadvertent, or that it does
not have sufficient information to
determine that the breach was not
inadvertent, the restrictions on voting
and entitlement to receive dividends
and other distributions described
in the preceding paragraphs will
apply in respect of all of the shares
(as applicable) held by the relevant
shareholder or holder (and not just the
shares in which a relevant interest is
held in excess of the 10 percent Limit).
The Board may refuse to register
a transfer of shares if it knows or
believes that the transfer will result
in a breach of the 10 percent Limit
or where the transferee has failed
to lodge a statutory declaration
requested from it by the Board
within 14 days of the date on which
the company gave notice to the
transferee to provide such statutory
declaration.
Crown directions
The Crown has the power to direct
the Board to exercise certain of the
powers conferred on it under the
Constitution. For example, where the
Crown suspects that the 10 percent
Limit has been breached but the Board
has not taken steps to investigate the
suspected breach, the Crown may
require the company to investigate
whether a breach of the 10 percent
Limit has occurred or to exercise a
power of sale of the relevant share
that has arisen as described under
the heading ‘Effect of exceeding
the 10 percent Limit’ above.
Trustee corporations
and nominee companies
Trustee corporations and nominee
companies (that hold securities on
behalf of a large number of separate
underlying beneficial holders) are
exempt from the 10 percent Limit
provided that certain conditions
are satisfied.
Share cancellation
In certain circumstances, shares can
be cancelled by Meridian through a
reduction of capital, share buyback or
other form of capital reconstruction
approved by the Board and, where
applicable, shareholders.
NZX Corporate Governance Code
Meridian complied with the NZX
Corporate Governance Code
recommendations in all material
respects during FY25, other than
in respect of Recommendation
3.6, as the Board has determined,
given Meridian’s status as a mixed
ownership model company, it
is not appropriate or necessary
for Meridian to adopt a takeover
protocol, although there are
protocols to ensure compliance
with the Constitution. Meridian has
a separate Corporate Governance
Statement available on its website.
The Corporate Governance
Statement outlines in detail Meridian’s
compliance with the NZX Corporate
Governance Code and is current as at
26 August 2025.
CORPORATE GOVERNANCE
STATEMENT
bit.ly/4nAPfmL
114
MENUFURTHER DISCLOSURES
MERIDIAN ENERGY INTEGRATED REPORT 2025
IMAGE
Waitaki Power Station
Financial
performance
115
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUFINANCIAL PERFORMANCE
Group financial statements
117Comprehensive
Income Statement
A summary of Meridian Group
performance in the financial
year, including both net income
(from the profit and loss) and
other comprehensive income
(recognised through equity
reserves).
117Statement of Cash Flows
Cash generated and used
by the Meridian Group.
118Balance Sheet
A summary of the Meridian
Group assets and liabilities at
the end of the financial year.
119Statement of
Changes in Equity
Components that make up
the capital and reserves of
the Meridian Group and the
changes of each component
during the financial year.
120About this report
121Non-GAAP measures
122S.Significant matters
in the financial year
S1New Zealand
Aluminium Smelters
S2Revaluation of generation
structures and plant
123A. Financial performance
A1 Segment performance
A2 Operating revenue
A3Operating expenses
128B. Assets used to generate
and sell electricity
B1Property, plant
and equipment
B2 Intangible assets
B3Assset related adjustments
133C.Managing funding
C1Capital management
C2Share capital
C3Earnings per share
C4Dividends
C5Borrowings
C6Interest expense
C7Cash and cash equivalents
137D. Financial instruments
used to manage risk
D1Financial risk management
D2Treasury and energy
hedges
D3Hedge accounting
149E.Other disclosures
E1Tax
E2 Trade receivables
E3 Commitments
E4 Group structure
E5 Net profit/(loss) after tax
to operating cash flows
E6 Payables and accruals
E7 Share-based payments
E8 Related parties
E9 Auditors remuneration
E10 Contingent assets and
liabilities
E11Subsequent events
E12 Changes in financial
reporting standards
157Signed report
Independent auditor’s report
Notes to the Group financial statements
KEY
Key judgements
and estimates
Risks
Contents
116
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUFINANCIAL PERFORMANCE
Comprehensive Income Statement
For the year ended 30 June 2025
NOTE
2025
$M
2024
$M
Operating revenueA24,835 4,856
Operating expensesA3(3,636) (4,102)
Depreciation and amortisationB1, B2(447) (334)
Asset related adjustmentsB3(33) (18)
Net change in fair value of energy hedgesD2(1,247) 253
Interest expenseC6(84) (69)
Interest income 5 12
Net change in fair value of treasury hedgesD2(12) (4)
Net profit/(loss) before tax(619) 594
Tax (expense)/benefitE1 167 (165)
Net profit/(loss) after tax(452) 429
Items that may be reclassified to profit and loss
Change in cash flow hedge reserve (net of tax)(5) (5)
Items that will not be reclassified to profit and loss
Change in asset revaluation reserve (net of tax)S2, B1 1,518 2,269
Comprehensive income 1,061 2,693
Earnings per share (cents) – basic and dilutedC3(17.4) 16.6
Statement of Cash Flows
For the year ended 30 June 2025
NOTE
2025
$M
2024
$M
Operating activities
Receipts from customers 4,983 4,614
Interest received 5 12
Payments to suppliers and employees(4,388) (3,719)
Interest paid(87) (80)
Tax paid(195) (160)
Operating cash flowsE5 318 667
Investing activities
Sale of subsidiaries – 8
Purchase of property, plant and equipment(143) (281)
Purchase of intangible assets(41) (40)
Purchase of other assets(7) (14)
Investing cash flows(191) (327)
Financing activities
Borrowings drawnC5 531 467
Borrowings repaidC5(363) (360)
Dividends paid C4(387) (436)
Shares purchased for long-term incentiveC2(6) (2)
Financing cash flows(225) (331)
Net cash flows(98) 9
Cash at the beginning of year 221 212
Cash at the end of yearC7 123 221
117
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUFINANCIAL PERFORMANCE
The notes to the Group financial statements form an integral part of these financial statements.
The notes to the Group financial statements form an integral part of these financial statements.
Balance Sheet
As at 30 June 2025
NOTE
2025
$M
2024
$M
Current assets
Cash and cash equivalentsC7 123 221
Trade receivablesE2 406 536
Financial instrumentsD2 65 233
Tax receivable 14 –
Other assets 72 61
Total current assets 680 1,051
Non-current assets
Property, plant and equipmentB1 14,032 12,192
Intangible assetsB2 47 62
Financial instrumentsD2 183 224
Other assets 32 14
Total non-current assets 14,294 12,492
Total assets14,974 13,543
NOTE
2025
$M
2024
$M
Current liabilities
Payables and accrualsE6 401 596
BorrowingsC5 369 237
Financial instrumentsD2 265 86
Tax payable – 85
Total current liabilities 1,035 1,004
Non-current liabilities
Payables and accrualsE6 55 62
BorrowingsC5 1,200 1,140
Financial instrumentsD2 496 142
Deferred taxE13,268 2,949
Total non-current liabilities5,019 4,293
Total liabilities6,054 5,297
Shareholders’ equity
Share capitalC2 1,884 1,729
Reserves 7,0 3 6 6,517
Total shareholders’ equity 8,920 8,246
Total liabilities and equity14,974 13,543
For and on behalf of the Board of Directors who authorised the issue of the financial
statements on 26 August 2025.
Mark Verbiest Julia Hoare
Chair Chair, Audit and Risk Committee
26 August 2025 26 August 2025
118
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUFINANCIAL PERFORMANCE
The notes to the Group financial statements form an integral part of these financial statements.
Statement of Changes in Equity
For the year ended 30 June 2025
$MNOTE
SHARE
CAPITAL
SHARE
OPTION
RESERVE
ASSET
REVALUATION
RESERVE
CASH FLOW
HEDGE
RESERVE
RETAINED
EARNINGS
TOTAL
EQUITY
Balance as at 1 July 2023 1,700 3 5,879 5 (1,600) 5,987
Net profit/(loss) after tax – – – – 429 429
Change in asset revaluation reserve (net of tax)B1, S2 – – 2,269 – – 2,269
Change in cash flow hedge reserve (net of tax) – – – (5) – (5)
Recycling of asset revaluation reserve (net of tax, where applicable) – – (3) 5 2
Share-based transactionsC2, E7(2) – – – 1 (1)
Dividend reinvestment planC4 31 – – – – 31
Dividends paid/reinvestedC4 – – – (466) (466)
Balance as at 30 June 2024 1,729 3 8,145 – (1,631) 8,246
Net profit/(loss) after tax – – – – (452) (452)
Change in asset revaluation reserve (net of tax)B1, S2 – – 1,518 – – 1,518
Change in cash flow hedge reserve (net of tax) – – – (5) – (5)
Recycling of asset revaluation reserve (net of tax, where applicable) – – (6) – 8 2
Share-based transactionsC2, E7(2) 2 – – (2) (2)
Dividend reinvestment planC4 157 – – – – 157
Dividends paid/reinvestedC4 – – – – (544) (544)
Balance as at 30 June 2025 1,884 5 9,657 (5) (2,621) 8,920
119
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUFINANCIAL PERFORMANCE
The notes to the Group financial statements form an integral part of these financial statements.
About this report
IN THIS SECTION
The notes to the financial
statements include information
which is considered relevant
and material to assist the
reader in understanding
changes in Meridian’s financial
position or performance.
Information is considered
relevant and material if:
the amount is significant
because of its size and
nature;
it is important for
understanding the
results of Meridian;
it helps to explain
changes in Meridian’s
business; or
it relates to an aspect
of Meridian’s operations
that is important to
future performance.
These financial statements are for
Meridian Energy Limited (Meridian), its
subsidiaries, controlled entities and joint
arrangements (Group).
Meridian is a for-profit entity domiciled
in and registered under the Companies
Act 1993 in New Zealand. It is a Financial
Markets Conduct (FMC) reporting entity
for the purposes of the Financial Markets
Conduct Act 2013. Meridian is dual listed
on the New Zealand Stock Exchange
(NZX) and the Australian Securities
Exchange (ASX). As a mixed ownership
company, majority owned by His Majesty
the King in Right of New Zealand, it is
bound by the requirements of the Public
Finance Act 1989.
These financial statements have been
prepared:
• in accordance with Generally
accepted Accounting practice
(GAAP) in New Zealand and comply
with IFRS Accounting Standards
(‘IFRS’) and New Zealand equivalents
to IFRS Accounting Standards
(‘NZ IFRS’), as appropriate for
a for-profit entity;
• in accordance with the requirements
of the Financial Markets Conduct
Act 2013;
• on the basis of historical cost,
modified by revaluation of certain
assets and liabilities;
• in millions of New Zealand dollars
(NZD), unless otherwise noted;
• with certain comparative amounts
reclassified to conform to current
period presentation; and
• using accounting policies as provided
throughout the notes to the financial
statements.
Basis of consolidation
The Group financial statements
comprise the financial statements
of Meridian and its subsidiaries and
controlled entities, outlined in Note E4
Group structure.
The financial statements of members of
the Group are prepared for the same
reporting period as the parent company,
using consistent accounting policies.
In preparing the Group financial
statements, all material intra-group
transactions, balances, income and
expenses have been eliminated.
Subsidiaries are consolidated from the
date on which control is obtained to the
date on which control is lost.
Key judgements
and estimates
In the process of applying the
Group’s accounting policies
and application of accounting
standards, Meridian has made
a number of judgements and
estimates. The estimates and
underlying assumptions are
based on historical experience
and various other factors that
are considered to be appropriate
under the circumstances. Actual
results may differ from these
estimates.
Judgements and estimates
which are considered material to
understanding the performance
of Meridian are found in the
following notes:
• Note A2: Operating revenue
• Note B1: Property, plant
and equipment
• Note D2: Treasury
and energy hedges
120
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUABOUT THIS REPORT
Non-GAAP measures
IN THIS SECTION
This section contains
explanations of non-GAAP
measures that are used within
the notes to the financial
statements.
Meridian uses non-GAAP financial
measures within these financial
statements and accompanying notes.
The limited use of non-GAAP measures
is intended to supplement GAAP
measures to provide readers with
further information to broaden their
understanding of Meridian’s financial
performance and position. They are not
a substitute for GAAP measures.
As these measures are not defined
by NZ GAAP, IFRS, or any other body
of accounting standards, Meridian’s
calculations may differ from similarly
titled measures presented by other
companies. The measures are described
here, including references to relevant
notes to the financial statements.
EBITDAF
EBITDAF stands for earnings before
interest, tax, depreciation, amortisation,
unrealised changes in fair value of
hedges and asset related adjustments.
EBITDAF allows the evaluation of
Meridian’s operating performance
without the non-cash impact of
depreciation, amortisation, unrealised
fair value movements of hedging
instruments and other one-off or
infrequently occurring events and the
effects of Meridian’s capital structure
and tax position. This allows the reader
to compare operating performance
with that of other electricity industry
companies.
Meridian uses this measure within
Note A1 Segment performance.
Energy margin
Energy margin provides a measure of
financial performance that, unlike total
revenue, accounts for the variability of
the wholesale electricity market and the
broadly offsetting impact of wholesale
prices on the cost of Meridian’s retail
electricity purchases and revenue from
generation.
Meridian uses the measure of energy
margin within Note A1 Segment
performance.
Net debt
Net debt is a metric commonly used
by investors as a measure of Meridian’s
indebtedness that takes account of
liquid financial assets.
Meridian uses this measure within
Note C1 Capital management.
121
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUNON-GAAP MEASURES
S. Significant matters in the year
IN THIS SECTION
This section outlines
significant matters that have
impacted Meridian’s financial
position and performance.
S1 New Zealand Aluminium Smelters (NZAS)
As detailed in the 2024 Integrated Report, the new NZAS
contracts starting 3 July 2024 cause a significant change in
how income, expenses, assets and liabilities are classified within
these financial statements. The main changes are as follows:
• the main contract with NZAS changes from being an
executory contract to being a financial instrument
(derivative); and
• the demand response agreement (DRA) changes from being
a derivative to an executory contract with an associated
embedded derivative recognised.
The table below notes where the NZAS related income, expense
and balance sheet values are presented, for the current and
comparative periods.
2025
$M
2024
$M
Profit and loss
Operating revenue – 175
Operating expense(151) (854)
Net change in fair value of energy hedges(901) (19)
Balance Sheet
Financial instruments – current asset – 23
Financial instruments – non-current asset 15 33
Financial instruments – current liability(104) –
Financial instruments – non-current
liability
(409) (74)
Payables and accruals(14) (95)
S2 Revaluation of generation structures
and plant
Within property, plant and equipment, generation structures and
plant are carried at fair value for financial reporting purposes.
Revaluations are performed with sufficient regularity to ensure
that carrying value does not differ materially from that which
would be determined using fair values at balance date.
At 30 June 2025, a valuation of Meridian’s generation structures
and plant assets has been undertaken to determine the fair
value of the assets as at this date. The valuation has resulted in
a net increase of $2,108 million (2024: increase of $3,152 million).
The increase in value is driven mainly by the change in price
forecast and a reduction in Meridian’s Weighted Average Cost
of Capital (WACC).
Management calculates a valuation on which the Board’s
ultimate decision is based. The valuation is set using discounted
cashflow (DCF) analysis and assumes NZAS continues to
operate until 31 December 2044.
Refer to Note B1 Property, plant and equipment for more
information.
122
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUSIGNIFICANT MATTERS IN THE FINANCIAL YEAR
A. Financial performance
IN THIS SECTION
This section provides an
analysis of Meridian’s
financial performance for
the year by key area including
operating segments,
operating revenue and
operating expenses.
A1 Segment performance
The Chief Executive (the chief operating
decision-maker) monitors the operating
performance of each segment for the
purpose of making decisions on resource
allocation and strategic direction. The
Chief Executive considers the business
according to the nature of the products
and services, as set out below:
Wholesale
• Generation of electricity and its sale
into the wholesale electricity market.
• Purchase of electricity from the
wholesale electricity market and its
sale to the Retail segment and to
large industrial customers, including
NZAS, representing the equivalent
of 24% (2024: 37%) of Meridian’s
generation production.
• Development of renewable electricity
generation opportunities.
Retail
• Retailing of electricity and
complementary products through
two brands, Meridian and
Powershop.
• Electricity sold to residential, business
and industrial customers on fixed
price variable volume contracts
is purchased from the Wholesale
segment at an average annual fixed
(transfer) price of $137 per megawatt
hour (MWh) (2024:$133 per MWh).
The transfer price is set in a similar
manner to transactions with third
parties.
• Electricity sold to business and
industrial customers on spot (variable
price) agreements is purchased from
the Wholesale segment at prevailing
wholesale spot market prices.
• Agency margin from spot sales is
included within “Contracted sales,
net of distribution costs”.
Other and unallocated
• Other operations, that are not
considered reportable segments,
include licensing of the Flux
Federation Limited (Flux) developed
electricity retailing platform.
• Activities and centrally based costs
that are not directly allocated to
other segments.
The financial performance of the
operating segments is assessed using
energy margin and EBITDAF (for
definitions see the Non-GAAP measures
page) before unallocated central
corporate expenses. Balance sheet items
are not reported to the Chief Executive
at an operating segment level.
123
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL PERFORMANCE
A1 SEGMENT PERFORMANCE CONTINUED
WHOLESALERETAILOTHER AND UNALLOCATEDINTER-SEGMENTTOTAL
2025
$M
2024
$M
2025
$M
2024
$M
2025
$M
2024
$M
2025
$M
2024
$M
2025
$M
2024
$M
Contracted sales, net of distribution costs and hedging 672 633 1,431 1,363 – – – 2,103 1,996
Cost to supply customers, net of hedging (3,669) (3,487) (1,357) (1,326) – 1,510 1,507 (3,516) (3,306)
Net cost of other hedges 76 285 – – – – – 76 285
Generation spot revenue, net of hedging 2,337 2,319 – – – – – 2,337 2,319
Inter-segment electricity sales 1,510 1,507 – – – (1,510) (1,507) – –
Virtual asset swap margins (14) (9) – – – – – (14) (9)
Other market revenue/(costs) (5) (9) 1 – – – – (4) (9)
Energy margin (refer to reconciliation on next page) 907 1,239 75 37 – – – 982 1,276
Other revenue 5 4 22 18 34 23 (9) (9) 52 36
Hosting expense – – – – (4) (4) – – (4) (4)
Energy transmission expense (78) (73) – – – – – – (78) (73)
Energy metering expenses – – (52) (49) – – – – (52) (49)
Gross margin 834 1,170 45 6 30 19 (9) (9) 900 1,186
Employee expenses (33) (31) (37) (38) (54) (65) – – (124) (134)
Other operating expenses (79) (67) (42) (40) (52) (48) 8 8 (165) (147)
EBITDAF (refer to reconciliation on next page) 722 1,072 (34) (72) (76) (94) (1) (1) 611 905
Depreciation and amortisation – – – – – – – – (447) (334)
Asset related adjustments – – – – – – – – (33) (18)
Net change in fair value of energy hedges (refer to
reconciliation on next page)
– – – – – – – – (659) 102
Interest expense – – – – – – – – (84) (69)
Interest income – – – – – – – – 5 12
Net change in fair value of treasury hedges (12) (4)
Net profit/(loss) before tax – – – – – – – – (619) 594
Tax (expense)/benefit – – – – – – – 167 (165)
Net profit/(loss) after tax – – – – – – – – (452) 429
124
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL PERFORMANCE
RECONCILIATION OF ENERGY MARGINNOTE
2025
$M
2024
$M
Energy sales to customersA2 2,429 2,487
Generation revenueA2 2,354 2,333
Energy expensesA3 (2,396) (2,95 6)
Energy distribution expensesA3 (817) (739)
Realised energy hedges (refer below) (588) 151
Energy margin 982 1,276
RECONCILIATION OF EBITDAFNOTE
Operating revenueA2 4,835 4,856
Operating expenseA3 (3,636) (4,102)
Realised energy hedges (refer below) (588) 151
EBITDAF 611 905
RECONCILIATION OF NET CHANGE IN FAIR VALUE OF ENERGY HEDGES
Realised energy hedges shown within energy margin (refer above) (588) 151
Unrealised changes in the fair value of energy hedges (as noted on previous page) (659) 102
Net change in fair value of energy hedges in profit and loss (1,247) 253
A1 SEGMENT PERFORMANCE CONTINUED
125
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL PERFORMANCE
A2 Operating revenue
2025
$M
2024
$M
Energy sales to customers 2,429 2,487
Generation revenue 2,354 2,333
Energy related services revenue 11 11
Other revenue 41 25
Total operating revenue 4,835 4,856
All revenue was generated in New Zealand.
Energy sales to customers
Revenue received or receivable from residential, business and industrial customers.
This revenue is influenced by customer contract sales prices and their demand for
electricity.
Generation revenue
Revenue received from electricity generated and sold into wholesale markets.
This revenue is influenced by the quantity of generation and the wholesale spot
prices. It is recognised at the time of generation.
Key judgements and estimates
– operating revenue
Energy consumption
Meridian exercises judgement in
estimating retail energy sales, where
customer meters are unread at
balance date. These estimates of
customer energy usage in the unread
period are based on the customers’
historical consumption patterns.
Revenue is recognised at the time of
supply and customer consumption.
Elements of the sale price, such as
discounts, credits given to customers,
and incremental costs incurred
obtaining (or retaining) a customer
contract are deferred to customer
contract assets on a portfolio basis.
These asset balances are then
released to the profit and loss
over the contract tenure.
Discounts and payment terms
Where a discount is offered, revenue
is initially recognised net of estimated
discount based on accumulated
experience used to estimate the
amount of discounts taken by
customers.
There are no significant differences
between the payment terms and
this policy.
126
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL PERFORMANCE
A3 Operating expenses
2025
$M
2024
$M
Energy expenses 2,396 2,95 6
Energy distribution expenses 817 739
Energy transmission expenses 78 73
Energy metering expense 52 49
Hosting expenses 4 4
Employee expenses 124 134
Other expenses 165 147
Total operating expenses 3,636 4,102
Energy expenses
The cost of energy purchased from
wholesale markets to supply customers
and related charges and services. Energy
expenses are influenced by quantity
and timing of customer consumption
and wholesale spot prices.
Energy distribution expenses
The cost of distribution companies
transporting energy between where
energy is transmitted/stored and
customer locations.
Energy transmission expenses
Meridian’s share of the cost of the
high voltage direct current (HVDC) link
between the North and South Islands
of New Zealand and the cost of
connecting Meridian’s generation sites
to the national grid by grid providers.
Energy metering expenses
The cost of meters, meter reading
and data gathering of retail customer
energy consumption.
Employee expenses
Provisions are made for benefits owing
to employees in respect of wages and
salaries, annual leave, long service leave
and employee incentives for services
rendered. Provisions are recognised
when it is probable they will be settled
and can be measured reliably. They
are carried at the remuneration rate
expected to apply at the time
of settlement.
Contributions to defined contribution
plans were $5 million in 2025 (2024:
$5 million).
Other expenses
Primarily relate to information
technology services, maintenance of
generation plant assets, business service
contractors, and various operational
and administrative costs incurred in the
normal course of business.
127
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL PERFORMANCE
B. Assets used to generate and sell electricity
IN THIS SECTION
This section shows the core
tangible and intangible
assets Meridian uses in
the production and sale
of energy to generate
operating revenue.
B1 Property, plant and equipment
$M
GENERATION
STRUCTURES
AND PLANT,
AT FAIR
VALUE
BATTERY
ENERGY
SYSTEMS,
AT COST
LAND AND
BUILDINGS,
AT COST
OTHER
PLANT AND
EQUIPMENT,
AT COST
RIGHT OF
USE LEASE
ASSETS,
AT COST
WORK IN
PROGRESS,
AT COST TOTAL
Cost or fair value 8,334 – 55 139 35 544 9,107
Less: accumulated depreciation – – (6) (99) (11) (2) (118)
Net book value at 30 June 2023 8,334 – 49 40 24 542 8,989
Additions – – – – 7 368 375
Transfers – work in progress 426 – 11 12 – (449) –
Adjustment of right of use lease assets – – – – (3) – (3)
Disposals(10) – (4) (3) – – (17)
Revaluation, taken to the asset revaluation reserve 3,152 – – – – – 3,152
Depreciation expense(293) – (1) (8) (2) – (304)
Net book value at 30 June 2024 11,609 – 55 41 26 461 12,192
Cost or fair value 11,609 – 60 120 39 461 12,289
Less: accumulated depreciation
15
– – (5) (79) (13) – (97)
Net book value at 30 June 2024 11,609 – 55 41 26 461 12,192
Additions – – – – – 165 165
Transfers – work in progress 96 190 15 28 – (329) –
Adjustment of right of use lease assets – – – – 1 – 1
Disposals(4) – – – (1) – (5)
Revaluation, taken to the asset revaluation reserve 2,108 – – – – – 2,108
Depreciation expense(415) (1) (1) (10) (2) – (429)
Net book value at 30 June 2025 13,394 189 69 59 24 297 14,032
Cost or fair value 13,394 190 75 143 38 297 14,137
Less: accumulated depreciation
15
– (1) (6) (84) (14) – (105)
Net book value at 30 June 2025 13,394 189 69 59 24 297 14,032
15 Includes the reversal of accumulated depreciation on generation structures and plant at revaluation date.
If generation structures and plant
were carried at historical cost less
accumulated depreciation and
accumulated impairment losses,
their carrying amount would be
approximately $1.3 billion
(2024: $1.4 billion).
128
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUASSETS USED TO GENERATE AND SELL ELECTRICITY
B1 PROPERTY, PLANT AND EQUIPMENT CONTINUED
Recognition and measurement
Generation structures and plant assets
are carried at fair value at the date of
revaluation. All other property, plant and
equipment classes are carried at cost,
less accumulated depreciation and any
accumulated impairment losses.
In 2025, Meridian introduced a new
fixed asset class, Battery Energy Storage
Systems (BESS), to reflect the distinct
nature of its first BESS asset at Ruakākā
Energy Park. This class is measured at
cost less accumulated depreciation and
includes assets that store and discharge
electricity to the grid for security of
supply, rather than generating electricity.
Fair value and revaluation of
generation structures and plant
Revaluations are performed with
sufficient regularity to ensure that
the carrying amount does not differ
materially from that which would be
determined using fair values at balance
date. Meridian uses DCF analysis to
establish a valuation range on which
the Board’s ultimate valuation decision
is based.
Any increase arising on revaluation
is credited to the asset revaluation
reserve, except if it reverses a revaluation
decrease for the same asset previously
recognised in profit and loss. In that
case the increase is credited to the profit
and loss to the extent of the decrease
previously charged. A decrease arising
on revaluation is charged to other
comprehensive income to the extent
it exceeds the balance held in the
revaluation reserve (if any) relating to
a previous revaluation of that asset.
Accumulated depreciation at
revaluation date is eliminated against
the gross carrying amount, so that
the carrying amount after revaluation
represents the revalued amount.
Asset additions to generation structures
and plant are recorded at cost, which
is considered fair value, including costs
directly attributable to bringing the asset
to the location and condition necessary
for its intended purpose.
Where a generation asset is partly
completed over a reporting period,
revaluation is only applied to the
completed portion of the generation
asset. Value relating to uncompleted
assets remains in work in progress and
is held at cost.
Meridian performed a valuation
assessment of its generation structure
and plant assets at 30 June 2025. The
revaluation resulted in a net increase in
carrying value of $2,108 million (2024:
increase of $3,152 million). The impact
of the revaluation was recognised in
the asset revaluation reserve.
As a consequence of the revaluation,
accumulated depreciation on revalued
assets was reset to nil with no impact to
depreciation expense.
Depreciation
Depreciation of property, plant and
equipment assets, other than freehold
land, is calculated on a straight-line
basis. This allocates the cost or fair value
amount of an asset, less any residual
value, over its estimated remaining
useful life.
Useful lives
Meridian uses its judgement in
determining the remaining useful lives
and residual value of assets, which are:
• generation structures and plant –
up to 80 years;
• battery energy systems –
up to 25 years;
• buildings – up to 67 years;
• other plant and equipment –
up to 20 years; and
• right of use lease assets –
up to 25 years.
The residual value and useful lives are
reviewed, and, if appropriate, adjusted
at each balance date.
Disposals or retirement
The gain or loss arising on the disposal
or retirement of an item of property,
plant and equipment is determined as
the difference between the sale proceeds
and the carrying amount of the asset
and is recognised in profit and loss. Any
balance attributable to the disposed
asset in the asset revaluation reserve
is transferred to retained earnings.
129
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUASSETS USED TO GENERATE AND SELL ELECTRICITY
Key judgements and estimates – Generation structures and plant valuation techniques and key inputs
The Board uses its judgement to
decide on the appropriateness of key
valuation techniques and inputs for
fair value measurement. Judgement is
also used in determining the estimated
remaining useful lives of assets. As
the valuation of generation structures
and plant utilises some unobservable
(non-market data) inputs, it is classified
as Level 3 under Meridian’s fair value
hierarchy as defined in Note D1
Financial risk management.
Meridian uses DCF analysis to
establish a valuation range. The DCF
methodology involves calculating
the present value of future cash
flows expected to be produced
over a projection period, including
forecast revenues, forecast future
generation output, current and
forecast reconsenting costs and NZAS
continuing to operate until
31 December 2044.
The DCF valuation was prepared using
a 35 year projection period (2024: 35
year time period) in line with the New
Zealand Treasury forward inflation curve.
In the 2025 financial year, Meridian
revised its discounted cash flow
valuation methodology for generation
assets to incorporate tax depreciation.
This change provides a more
representative view of forecast cash
flows which resulted in a decrease
in asset valuations of approximately
$900 million.
Meridian has a mature modelling
framework which is a forward
looking, long-term analysis of the
fundamentals underpinning the New
Zealand wholesale electricity market.
This modelling framework includes
forward-looking climate change
impacts, both physical in nature
(such as hydrological seasonality and
variability) and transitional (such as
energy demand changes as New
Zealand decarbonises). As part of the
valuation process, Meridian ensures
that the inputs used are in line with
the anticipated impacts identified as
part of its climate-related risk and
opportunity assessment.
The table below describes the key
valuation inputs and their sensitivity
to changes.
KEY INPUT TO
MEASURE FAIR VALUEDESCRIPTION
2025
RANGE OF UNOBSERVABLE INPUTSSENSITIVITY
IMPACT ON
VALUATION
($M)
2024
RANGE OF UNOBSERVABLE INPUTSSENSITIVITY
IMPACT ON
VALUATION
($M)
Future wholesale
electricity prices
Time weighted
average price at nodes
(TWAP)
$83MWh to $192MWh between
FY26 and FY60 (in real terms)
+ $3MWh
- $3MWh
462
(462)
$68MWh to $129MWh between
FY25 and FY59 (in real terms)
+ $3MWh
- $3MWh
444
(444)
Generation volumeAnnual generation
production
12,285 GWh p.a. to
12,785 GWh p.a.
+ 250GWh
- 250GWh
426
(426)
13,232 GWh p.a. to
13,732 GWh p.a.
+ 250GWh
- 250GWh
333
(333)
Operating
expenditure
(excluding energy
purchase costs or
transmission charges)
Meridian’s cost of
operations
Inflated at appropriate
escalation rates
+ $10M
- $10M
(137)
137
Inflated at appropriate escalation
rates
+ $10M
- $10M
(134)
134
WACCThe discount rate
considers the time
value of money
and relative risk of
achieving the cash
flow forecast
7. 3 2 % +0.50%
-0.50%
(1,032)
1,230
7.68% +0.75%
-0.75%
(1,187)
1,523
Sensitivities show the movement in fair value as a result of a change in each input (keeping all other inputs constant).
B1 PROPERTY, PLANT AND EQUIPMENT CONTINUED
130
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUASSETS USED TO GENERATE AND SELL ELECTRICITY
B2 Intangible assets
$M
SOFTWARE
Cost 236
Less: accumulated amortisation(163)
Net book value at 30 June 2023 73
Additions 37
Impairment(18)
Amortisation expense(30)
Net book value at 30 June 2024 62
Cost 263
Less: accumulated amortisation(201)
Net book value at 30 June 2024 62
Additions 36
Impairment(33)
Amortisation expense(18)
Net book value at 30 June 2025 47
Cost 277
Less: accumulated amortisation(230)
Net book value at 30 June 2025 47
Software
Acquired software costs (that are not
considered an integral part of related
hardware) are capitalised on the basis of
the costs incurred to acquire and bring
to use the specific software. Additionally,
costs directly associated with the
production of identifiable and unique
software products that will generate
economic benefits beyond one year are
also recognised as intangible assets.
Capitalised software costs are amortised
over their estimated useful lives on a
straight-line basis.
The impairment expense recognised in
the current year relates to Flux, following
Meridian’s decision to transition to a
new billing platform. As a result, the
existing platform is expected to be
decommissioned over the next
12 months.
Prior year impairment expense was in
relation to Flux’s billing platform and the
Flux Board’s decision to refocus global
efforts back to the Australasian market.
Useful lives
Meridian uses its judgement in
determining the remaining useful
lives and residual value of intangible
assets, which are:
• electricity retail platform –
up to one year;
• generation control –
up to ten years; and
• other software –
up to three years.
These are reviewed, and, if appropriate,
adjusted at each balance date.
131
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUASSETS USED TO GENERATE AND SELL ELECTRICITY
B3 Asset related adjustments
ASSET RELATED ADJUSTMENTSNOTE
2025
$M
2024
$M
Impairment expenseB2 33 18
Loss on sale of property, plant and equipment 6 8
Valuation adjustment of investments(8) –
Gain on sale of subsidiaries – (8)
Other expenses 2 –
Tot a l 33 18
Impairment of non-financial assets
Meridian reviews the recoverable amount of its tangible and intangible assets
at balance date. Assets are grouped into cash-generating units with separately
identifiable cash flows. The recoverable amount is the higher of an asset’s fair value
less costs to sell, and present value of future cash flows expected to be generated
by the assets (also known as value in use). If the carrying value of an asset exceeds
the recoverable amount, an impairment expense is recognised in profit and loss.
For assets that are revalued refer to Note B1 Property, plant and equipment for specific
treatment. The current year impairment expense mostly relates to software assets,
refer to Note B2 Intangible assets for more information.
132
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUASSETS USED TO GENERATE AND SELL ELECTRICITY
C. Managing funding
IN THIS SECTION
This section summarises
Meridian’s capital position,
returns to shareholders,
borrowing and receivables.
C1 Capital management
Capital risk
management objectives
Meridian’s objective when managing
capital is to provide appropriate returns
to shareholders whilst maintaining a
capital structure that safeguards its
ability to remain a going concern
and optimise the cost of capital.
Capital is defined as the combination
of shareholders’ equity, reserves and
net debt. Meridian manages its capital
through various means, including:
• adjusting the amount of dividends
paid to shareholders;
• raising or returning capital; and
• raising or repaying debt.
Meridian regularly monitors its capital
requirements using various measures
which consider debt facility financial
covenants and credit ratings. The key
measures are net debt to EBITDAF and
interest cover. The principal external
measure is Meridian’s credit rating
from Standard & Poor’s.
Meridian is in full compliance with
debt facility financial covenants.
NOTE
2025
$M
2024
$M
Share capitalC2 1,884 1,729
Retained earnings(2,621) (1,631)
Other reserves 9,657 8,148
Shareholders equity 8,920 8,246
Add: drawn borrowingsC5 1,531 1,361
Less: cash and cash equivalents C7(123) (221)
1,408 1,140
Net capital 10,328 9,3 86
NOTE
2025
$M
2024
$M
Net debt to EBITDAF
Drawn borrowingsC5 1,531 1,361
Less: cash and cash equivalents C7(123) (221)
Add back: restricted cash C7 97 134
Net debt (A) 1,505 1, 274
EBITDAF (B) 611 905
Net debt to EBITDAF multiple (A/B) 2.5 1.4
NOTE
2025
$M
2024
$M
EBITDAF Interest cover
EBITDAF (B)A1 611 905
Interest expense on borrowings (C) C6 92 85
EBITDAF interest cover multiple (B/C) 6.6 10.6
Standard & Poor’s rating BBB+ BBB+
133
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUMANAGING FUNDING
C2 Share Capital
SHARE CAPITAL
20252024
SHARES $MSHARES$M
Shares issued 2,617,864,096 1,897 2,590,459,452 1,738
Treasury shares held(2 ,394,748) (13) (1,865,008) (9)
Share capital 2,615,469,348 1,884 2,588,594,444 1,729
All shares issued are fully paid and have equal voting rights. All shares participate
equally in any dividend distribution or any surplus on the winding up of the company.
The movement in shares issued relates to the dividend reinvestment plan. Refer to
Note C4 Dividends for more information.
The movement in treasury shares relates to the purchase and issue of shares to
participants in the long-term equity settled incentive plan for senior executives
(refer to Note E7 Share-based payments) and for hedging of the Long-Term
Incentive (LTI) scheme.
C3 Earnings per share
BASIC AND DILUTED EARNINGS PER SHARE (EPS)2025
2024
Net profit/(loss) after tax ($M)(452) 429
Weighted average number of shares
used in the calculation of EPS
2 ,604,161,774 2,587,596,787
Basic and diluted EPS (cents per share)(17.4) 16.6
C4 Dividends
DIVIDENDS DECLARED AND PAID
2025
$M
2024
$M
Interim dividend 2025: 6.15 cps (cents per share) (2024: 6.15 cps) 160 159
Final dividend 2024: 14.85 cps (2023: 11.90 cps) 384 307
Total dividend expense 544 466
DIVIDENDS DECLARED AND NOT RECOGNISED AS A LIABILITY
Final ordinary dividend 2025 14.85 cps (2024: 14.85 cps)388 384
IMPUTATION CREDIT BALANCE
Imputation credits available for future use at 30 June 2025 108 83
On 26 August 2025 the Board declared a partially imputed final ordinary dividend
of 14.85 cps.
Imputation credit balance
Imputation credits allow Meridian to pass on to its shareholders the benefit of the
New Zealand income tax it has paid by attaching imputation credits to the dividends
it pays, reducing the shareholders’ net tax obligations.
Dividend Reinvestment Plan (DRP)
Meridian operates a DRP under which shareholders can elect to receive dividends
in additional shares rather than cash.
For the September 2024 final dividend payment, new shares were issued at a 2%
discount to the prevailing market price of Meridian shares around the time of issue.
Meridian investors were issued 18,204,174 new shares with a value of $108 million
(2024: 3,838,342 shares with a value of $19 million).
For the March 2025 interim dividend payment, new shares were issued at a 2%
discount to the prevailing market price of Meridian shares around the time of issue.
Meridian investors were issued 9,200,470 new shares with a value of $49 million
(2024: 1,886,988 shares with a value of $11 million).
Shares issued in lieu of cash are excluded from dividends paid in the Statement
of Cash Flows.
134
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUMANAGING FUNDING
C5 Borrowings
BORROWINGS
2025
$M
2024
$M
Commercial paper
16
164 25
Drawn bank facilities
17
243 –
Retail bonds
18
500 700
Export credit agency (EKF) facility
19
10 20
Lease liabilities
20
28 30
US private placement notes
21
586 586
Drawn borrowings 1,531 1,361
Deferred financing costs(2) (2)
Fair value adjustment on hedged borrowings 40 18
Total carrying value of borrowings 1,569 1,377
of which
Current 369 237
Non-current 1,200 1,140
Total carrying value of borrowings 1,569 1,377
MOVEMENTS IN BORROWINGS
2025
$M
2024
$M
Opening borrowings 1,377 1,263
Borrowings drawn531 467
Borrowings repaid(360)(357)
Lease liabilities repaid(3) (3)
Changes in fair value adjustments on hedged borrowings 24 (3)
Movements due to changes in foreign exchange rates(1) 4
Non-cash changes in lease liabilities 1 6
Closing borrowings 1,569 1,377
16 Commercial paper comprises senior unsecured short-term debt obligations paying a fixed rate of return
over a set period of time.
17 Drawn bank facilities bear interest at the relevant market floating rate plus a margin.
18 Retail bonds listed on the NZX and are senior unsecured debt bearing interest rates of 5.91% and 5.40%
(2024: 4.21%, 5.91% and 5.40%).
19 The EKF facility is an unsecured amortising loan provided by the official export credit agency of Denmark,
for the construction of the Te Uku Wind Farm.
20 The weighted average discount rate applied in the calculation of lease liabilities is 4.20% (2024: 4.10%).
21 US private placement notes are unsecured fixed rate bonds issued in the United States private placement market.
Borrowings, measurement
and recognition
Borrowings are recognised initially at the
fair value of the drawn facility amount
(net of any transaction costs paid) and
are subsequently held at amortised
cost using the effective interest method.
Any borrowings which have been
designated as hedged items (USD
borrowings) are carried at amortised
cost plus a fair value adjustment under
hedge accounting requirements –
refer to Note D3 Hedge accounting
for more information. Any borrowings
denominated in foreign currency are
retranslated to functional currency at
each reporting date. Any retranslation
effect is included in the “Fair value
adjustment on hedged borrowings” row
in the table, along with any amounts
relating to fair value hedge adjustments.
Meridian uses cross-currency interest rate
swaps (CCIRS) to manage its exposure
to interest rates and borrowings sourced
in foreign currency. More information on
Meridian’s risk management and hedge
accounting practices can be found in
Section D Financial instruments used to
manage risk.
Security
Meridian borrows under a negative
pledge arrangement, which does not
permit it to grant any security interest
over its assets, unless it is an exception
permitted within the negative pledge.
Fair value of items
held at amortised cost
Within borrowings there are longer
dated instruments which are not in
hedge accounting relationships. As
at year-end, the fair value of these
borrowings are $21 million higher than
the carrying value (2024: $1 million
higher). This relates to the fixed rate
Retail bonds. Fair value is calculated
using a DCF analysis and the resultant
balances are classified as level 2 within
the fair value hierarchy as detailed
in Note D Financial instruments
used to manage risk. Carrying value
approximates fair value for all other
instruments within borrowings.
Green debt
All borrowing other than leases are
Green debt under Meridian’s Green
Finance Program. Meridian remains
compliant with all requirements of the
program.
Undrawn facilities
As at 30 June 2025, Meridian had
$910 million of bank facilities of which
$253 million were drawn (2024: $645m
of bank facilities of which $20 million
were drawn).
Lease liabilities
Lease liabilities relate to property and a
connection to the national electricity grid.
Lease liabilities are initially recognised
at the present value of expected future
lease payments and subsequently held at
amortised cost. Refer to Note B1 Property
plant and equipment for details of the
related right of use assets.
135
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUMANAGING FUNDING
C6 Interest expense
INTEREST EXPENSE
2025
$M
2024
$M
Interest on borrowings93 85
Interest on other liabilities – 1
Less: capitalised interest(9) (17)
Total interest expense84 69
Interest expense
Interest expense includes $2 million relating to lease liabilities (2024: $2 million).
Meridian capitalises interest expense relating to building new assets. The average
rate used to determine the amount of borrowing costs eligible for capitalisation
was 5.74% (2024: 5.53%).
C7 Cash and cash equivalents
CASH AND CASH EQUIVALENTS
2025
$M
2024
$M
Cash on hand 26 87
Restricted cash 97 134
Cash and cash equivalents 123 221
Restricted cash
Meridian trades energy hedges on the ASX using a broker. As a result, cash is
placed on deposit with the broker to cover margin requirements, the sum of
which varies depending on market price movements and contracts held.
All other cash and cash equivalent balances are available for immediate use.
136
MERIDIAN ENERGY INTEGRATED REPORT 2025NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUMANAGING FUNDING
D. Financial instruments used to manage risk
IN THIS SECTION
This section summarises
the financial (hedging)
instruments Meridian uses
to manage risk.
D1 Financial risk
management
Meridian’s activities expose it to a variety
of financial risks. Meridian’s financial risk
management framework focuses on
the unpredictability of financial markets
and wholesale energy markets. The
Board approves policies including Group
Treasury, Energy Hedging and Credit
Policies which set appropriate principles
and risk tolerance levels to guide
management in carrying out financial
risk management activities to minimise
potential adverse effects on the financial
performance and economic value of
the Group. The key risks managed are
discussed further in this section.
In order to help balance certain risk
exposures, Meridian uses a variety of
financial instruments (hedges). Hedges
are categorised as either “Treasury”
or “Energy” related, based on their
underlying nature. A small number
of treasury hedges are designated in
hedge accounting relationships (refer
to Note D3 Hedge accounting for
more information). Meridian does
not enter into speculative trades.
Financial instrument recognition
Meridian designates or classifies
financial hedging instruments as:
• Fair value hedge, hedges of the
fair value of recognised assets or
liabilities or a firm commitment; or
• Cash flow hedge, hedges of a
particular cash flow associated with
a recognised asset or liability or a
highly probable forecast transaction;
or
• Held for trading, financial
instruments which have not been
designated in a hedging relationship.
Meridian accounts for derivative and
certain designated financial instruments
as fair value through profit and loss.
Hedges are initially recognised at
fair value on the dates the contracts
are agreed and are subsequently
remeasured on a periodic basis.
Remeasurement is recognised in
profit and loss except for effective
cash flow hedges.
Fair value changes are recognised in
profit and loss as “Net change in the
fair value of energy hedges” or “Net
change in fair value of treasury hedges”,
depending on the underlying business
nature of the hedge.
Calculation of fair value
for financial instruments
Meridian uses quoted prices and/or
DCF analysis to calculate fair values
for financial instruments. Fair value
measurements are grouped within a
three-level fair value hierarchy based
on the observability of inputs to the
valuation process:
• Level 1: inputs are quoted prices
(unadjusted) in active markets for
identical assets or liabilities that the
entity can access at reporting date;
• Level 2: inputs include either directly
(i.e. as prices) or indirectly (i.e. derived
from prices) observable inputs other
than quoted prices included in Level 1;
and
• Level 3: inputs that are not based
on observable market data (i.e.
unobservable inputs).
Meridian has a number of energy
hedges that require management
estimation and judgement in order to
generate a fair value at each reporting
date. These estimates can have a
significant risk of material adjustment
in future periods. This is discussed in
more detail later in this section.
137
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D1 FINANCIAL RISK MANAGEMENT CONTINUED
Credit risk Liquidity risk
For wholesale customers, individual
credit limits are set based on internal
or external credit ratings in accordance
with limits set by the Board. Where
customers are not independently credit
rated, an assessment of credit quality
is made, taking into account financial
position, past experience and other
relevant factors. If appropriate, letters
of credit/guarantees are obtained from
counterparties to reduce credit risk to
acceptable levels. These assessments
and the utilisation of credit limits
and security provided by wholesale
customers are reviewed and monitored
by the Chief Financial Officer.
The carrying amounts of financial assets
recognised on the balance sheet best
represent Meridian’s maximum likely
exposure to credit risk at the date of
this report.
Meridian is exposed to the risk of
default in relation to energy sales
to wholesale and retail customers,
hedging instruments, guarantees
and deposits held with banks and
other financial institutions.
For retail customers, credit checks
are carried out before new customers
are accepted. The credit team
oversees the collection of receivables
and works with customers to
minimise the chances of bad debts
occurring. Management monitors
the size and nature of retail customer
exposures on a regular basis and
acts to mitigate the risk if deemed
to exceed acceptable levels.
For banks and financial institutions,
only independently related parties
with a minimum rating of ‘A’ are
accepted.
Meridian is exposed to the dynamic
nature of energy markets and weather
patterns, which can affect liquidity.
Meridian ensures flexibility in funding by
maintaining committed surplus credit
lines available of at least $200 million.
This helps ensure Meridian has sufficient
headroom under both normal and
abnormal hydrological conditions.
Meridian manages its borrowing
requirements on a portfolio basis. To
reduce concentration risk on any one
lender or funding type, Meridian uses
a range of different funding sources
and currencies. Meridian also monitors
contractual maturities and ensures these
are well spaced (or laddered) so that
refinancing risks are manageable.
In addition to borrowings, Meridian
has entered into a number of
letters of credit and guarantee
arrangements which provide credit
support of $300 million for Meridian’s
general operations (2024: $200
million). Meridian indemnifies the
obligations of the bank in respect of
the letters of credit and performance
guarantees issued by the bank to
counterparties of Meridian.
138
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D1 FINANCIAL RISK MANAGEMENT CONTINUED
Liquidity risk – contractual maturities
The following tables are an analysis of the contractual undiscounted cash flows (settlements expected under the contracts) relating to financial liabilities and a reconciliation
from total undiscounted cash flows to carrying amounts. Meridian expects to meet its future obligations from operating cash flows and borrowings.
2025 $M
DUE WITHIN 1
YEAR
DUE IN
1 TO 2 YEARS
DUE IN
3 TO 5 YEARS
DUE AFTER
5 YEARS
TOTAL
UNDISCOUNTED
CASH FLOWS
IMPACT OF OTHER
NON-CASH ITEMS
IMPACT OF
INTEREST/ FX
DISCOUNTINGCARRYING VALUE
Borrowings, comprised of:
Borrowings 433 266 813 307 1,819 (2) (276) 1,541
Lease liabilities 3 7 6 25 41 – (13) 28
Payables and accruals40112 14 118 545 – (89) 456
Financial instruments, comprised of:
Treasury hedges 14 7 7 – 28 – (4) 24
Energy hedges 253 88 55 589 985 – (248) 737
1,104380 895 1,039 3,418 (2) (630) 2,786
2024 $M
DUE WITHIN 1
YEAR
DUE IN
1 TO 2 YEARS
DUE IN
3 TO 5 YEARS
DUE AFTER 5
YEARS
TOTAL
UNDISCOUNTED
CASH FLOWS
IMPACT OF OTHER
NON-CASH ITEMS
IMPACT OF
INTEREST/ FX
DISCOUNTINGCARRYING VALUE
Borrowings, compromised of:
Borrowings 301 66 703 630 1,700 (3) (350) 1,347
Lease liabilities 3 7 7 28 45 – (15) 30
Payables and accruals 596 10 18 126 750 – (92) 658
Financial instruments, comprised of:
Treasury hedges 23 1 5 – 29 – (1) 28
Energy hedges 65 35 48 115 263 – (63) 200
988 119 781 899 2,787 (3) (521) 2,263
139
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D1 FINANCIAL RISK MANAGEMENT CONTINUED
Market risk
Meridian is involved in energy and
financial markets and as such is
exposed to rises and falls in those
markets and the subsequent income
statement volatility this can cause.
The main sub-types of market risk
that Meridian is exposed to are
discussed below.
Commodity price risk
Meridian trades in the wholesale
energy markets and so is exposed to
volatility in forward energy prices.
Being both a generator and a retailer
of energy means that Meridian has
a natural hedge for most of the
exposure to future energy prices.
Meridian also uses derivatives to
help manage its net energy position,
some of which are traded in quoted
markets, and some of which are
traded directly with other energy
market participants. Energy hedges
are not placed in hedge accounting
relationships.
Foreign exchange risk
Meridian is exposed to foreign exchange
risk arising from sales and procurement
of goods and services denominated
in foreign currencies and also from
borrowings raised in foreign currencies.
For exposures resulting from Meridian’s
general operations, foreign exchange
spot or forward contracts are used to fix
the value in reporting currency terms.
Material items may be placed in hedge
accounting relationships and can be
either fair value hedges or cash flow
hedges, depending on the nature of the
transaction/underlying exposure.
For borrowings raised in US dollars (USD),
CCIRS are used to convert the proceeds
back to functional currency. These
derivatives minimise foreign exchange
risk on both the notional and the coupon
flows over the life of the debt. CCIRS are
placed in both fair value and cash flow
hedge accounting relationships.
Interest rate risk
Meridian is exposed to interest rate risk
arising from its borrowings, which are a
mix of fixed and floating rate debt.
Meridian issues debt on both a fixed
and a floating basis and is thus exposed
to changes in interest rates over time.
A portfolio of interest rate swaps (IRS)
is used to manage the net exposure to
interest rate risk, in line with a Board
approved hedging policy and profile.
Refer to the Foreign exchange area of
this section for derivatives used for term
debt raised in foreign currencies.
Meridian swaps a significant portion of
its borrowings to floating rates at loan
inception, and hedges the resulting
interest rate exposure over a tenure
based profile of fixed IRS. This is achieved
using a combination of CCIRS and
IRS hedges. Where Meridian borrows
in foreign currency it uses CCIRSs to
swap all foreign currency denominated
interest and principal repayments to the
reporting currency. This results in floating
rate borrowings in the entity’s reporting
currency. Meridian uses IRS hedges to fix
floating interest rates in line with the Board
approved hedging policy and profile.
Climate risk
Meridian is exposed to future changes
in climate, which may impact on our
industry, our business and our customers.
Future impacts may be physical, such
as changes in weather patterns or
rising temperatures, or they may be
more transitional in nature, such as
amendments to government policy
and regulation, or changes in customer
energy needs and demands. Meridian
actively assesses the operating
environment in New Zealand, in
respect of the potential future impacts
that changes in climate may have on
Meridian. We report on this process
each year in our Climate-related
Disclosure, which can be found on
our corporate website at
meridianenergy.co.nz/sustainability.
As part of preparing this report,
Meridian considers climate-related
risk and whether it may have any
impact on our financial statements
and associated disclosures. The most
material area we see climate risk
potentially having a future impact is on
our valuation of generation structures,
which we account for at fair value.
Refer to Note B1 Property, plant and
equipment for more information on this
including a sensitivity analysis indicating
how much their value may change
with variations in key inputs, such as
generation volumes and wholesale
market prices.
140
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D2 Treasury and energy hedges
Meridian groups its financial instrument into two categories – treasury hedges and energy hedges.
FAIR VALUE ON THE BALANCE SHEET
20252024
ASSETS
$M
LIABILITIES
$M
ASSETS
$M
LIABILITIES
$M
Treasury hedges75 (24) 77 (28)
Energy hedges 173 (737) 380 (200)
Total financial instruments248(761) 457 (228)
of which:
Current 65 (265) 233 (86)
Non-current 183 (496) 224 (142)
Total financial instruments 248 (761) 457 (228)
Further disclosure and analysis of these two categories are noted on the following pages.
141
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D2 TREASURY AND ENERGY HEDGES CONTINUED
Treasury hedges
Hedges in the treasury category relate to management of the interest rate risk and
foreign exchange risk that arise from Meridian’s funding activities and from general
Group operations. The hedge instruments used are CCIRS, IRS and forward exchange
contracts (FX).
TREASURY
HEDGESLEVEL
FAIR VALUE ON THE BALANCE SHEET
FAIR VALUE
MOVEMENTS IN
PROFIT AND
LOSS
OUTSTANDING
AGGREGATE
NOTIONAL
PRINCIPALS
22
202520242025202420252024
ASSETS
$M
LIABILITIES
$M
ASSETS
$M
LIABILITIES
$M$M$M$M$M
CCIRS
Interest
rate risk
23
(28) (1) (39) (13) – –
Basis and
margin risk
24
– (2) – (1) – –
Foreign
exchange
risk
25
70 – 71 – – –
2 42 (3) 32 (14) – – 586 586
IRS
26
2 33(16) 44 (14) (12) (4) 1,660 1,475
FX
27
2 – (5) 1 – – – 107 38
Treasury
hedges
75(24) 77 (28) (12) (4)
22 These cover multiple legs including offsetting legs and maturities out to 2034.
23 Interest rate risk: this is the movement in value of the CCIRS due to changes in benchmark interest
rates. The other side of this movement is recorded in profit and loss in the “Net change in fair value of
treasury instruments”, together with changes in the fair value hedge adjustments on the designated
USD borrowings.
24 Basis and margin risk: this is the movement in the value of the CCIRS due to changes in basis (excluding
foreign exchange) and credit margin. The other side of this movement is recorded in profit and loss in
the “Net change in fair value of treasury instruments”, together with cash flow hedge accounting
adjustments that transfer effective hedge portions to the Cash Flow Hedge Reserve within Equity.
25 Foreign exchange risk: this is the movement in value of the CCIRS due to changes in spot foreign exchange
rates. The impact of retranslation is recorded in profit and loss in “Net change in fair value of treasury
instruments” and is offset by equal and opposite retranslation effects on the related borrowings.
26 Changes in fair value of IRS are recognised in profit and loss within “Net change in fair value of treasury
instruments”.
27 Changes in fair value of FX contracts are recognised in profit and loss within “Net change in fair value
of treasury instruments”, together with any cash flow hedge accounting adjustments that transfer
effective hedge portions to the Cash Flow Hedge Reserve within Equity.
Meridian uses CCIRS to hedge risks involved with borrowings issued in USD. In the
table to the left the CCIRS are separated into component parts with further detail
in the footnotes.
In the treasury hedges table, fair value movements in profit and loss are shown net
of any related hedge accounting adjustments and retranslation of foreign currency
borrowings.
Refer to Note D3 Hedge accounting for more information on fair value and cash
flow hedge relationships.
Treasury hedges – sensitivity analysis
The table below summarises the impact of changes in significant inputs (assuming
all other variables are held constant) on the valuation of treasury hedges and
therefore on Meridian’s profit after tax and equity.
Changes in the fair value of the CCIRS are fully offset by opposite impacts from
hedge accounting entries and the FX retranslation of the USD debt. Therefore, the
CCIRS sensitivity is nil and is not shown in the table below.
The majority of FX hedges are designated in cash flow hedge relationships. Changes
in spot exchanges rates are fully offset by opposite impacts from hedge accounting
entries in the profit and loss, therefore for these contracts the sensitivity is nil.
SENSITIVITY
IMPACT ON PROFIT
AFTER TAX & EQUITY
2025
$M
2024
$M
Interest rates
New Zealand benchmark bill rate-100 basis points (bps)(18) (9)
+100 bps 16 8
Foreign exchange rates
Effect of movement in foreign exchange
rates on foreign exchange contracts
-20% – –
+20% – –
142
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D2 TREASURY AND ENERGY HEDGES CONTINUED
Energy hedges
Hedges in the energy category relate to management of risks arising from the
generation, purchase and sale of energy. These hedges are generally longer-term,
larger volume contracts that manage specific risks that cannot be managed through
exchange-based markets.
Meridian is exposed to changes in the spot price of electricity it receives for electricity
generated, or pays to buy electricity to supply customers. Additionally, inflows into
Meridian’s storage lakes are variable, therefore the volume of electricity required to
supply customers may exceed (or fall short of) generation production.
Meridian’s hedging strategy focuses on its net exposure by estimating both expected
generation and energy purchases required to support contracted sales. Execution of
this strategy is guided by Board approved parameters. Changes in the fair value of
energy hedges are recognised in profit and loss within “Net change in fair value of
energy hedges”. Hedge accounting is not applied to energy hedges.
“Market traded energy hedges” contains instruments that are traded on exchange-
based markets.
“Other energy hedges” contains over-the-counter (OTC) derivatives with other energy
market participants. These hedges are generally contracts for difference (CFDs).
“Energy options” contains OTC derivatives with other energy market participants.
These are used to support the management of inflow and storage variability in the
catchments where Meridian generates electricity.
“NZAS” contain two instruments, the 20-year CFD through which Meridian provides
NZAS with a fixed price for part of its energy consumption, and an embedded
derivative value in respect of the NZAS DRA, where the embedded derivative
measures the expected forward impact of inflationary changes on the DRA.
ENERGY HEDGESLEVEL
FAIR VALUE ON THE BALANCE SHEET
FAIR VALUE MOVEMENTS
IN PROFIT AND LOSS
OUTSTANDING AGGREGATE
NOTIONAL VOLUMES
28
202520242025202420252024
ASSETS
$M
LIABILITIES
$M
ASSETS
$M
LIABILITIES
$M$M$MGWhGWh
Market traded energy hedges 1 7 (121) 79 (15) (261) 53 18,058 19,4 59
Other energy hedges 3 99 (103) 152 (111) (79) 154 6,617 6,046
Energy options 3 52 – 93 – (6) 65 637 952
NZAS 3 15 (513) 56 (74) (901) (19) 64,458 68,180
Total energy hedges 173 (737) 380 (200) (1,247) 253
28 These cover multiple legs including offsetting legs and maturities out to 2044.
143
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D2 TREASURY AND ENERGY HEDGES CONTINUED
Energy hedges – sensitivity analysis
The table below summarises the impact of changes in significant inputs (assuming
all other variables are held constant) on the valuation of energy hedges and therefore
on Meridian’s after tax profit and equity.
ENERGY HEDGESSENSITIVITY
IMPACT ON PROFIT
AFTER TAX & EQUITY
2025
$M
2024
$M
Energy prices-10% 182 147
+10%(182) (147)
Discount rates-100 bps(26) (1)
+100 bps 23 1
Call volumes-10%(3) (6)
+10% 4 7
Consumer Price Inflation (CPI)-1%(72) (63)
+1% 76 67
NZAS CPI probability factor-5%(13) (12)
+5% 14 12
Analysis of net changes in fair value of energy hedges
The table below provides an analysis of the net change in fair value of energy hedges. In Note A1 Segment performance, realised changes in fair value of energy hedges are
included in Energy Margin.
$M
20252024
MARKET
TRADED
ENERGY
HEDGES
OTHER
ENERGY
HEDGES
ENERGY
OPTIONSNZASTOTAL
MARKET
TRADED
ENERGY
HEDGES
OTHER
ENERGY
HEDGES
ENERGY
OPTIONSNZASTOTAL
Realised net change in fair value of energy hedges(129) (63) 40 (436) (588) 2 135 14 – 151
Unrealised net change in fair value of energy hedges(132) (16) (46) (465) (659) 51 19 51 (19) 102
Total net change in fair value of energy hedges(261) (79) (6) (901) (1,247) 53 154 65 (19) 253
144
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
Fair value technique and key inputs
In estimating the fair value of an asset
or liability, Meridian uses market-
observable data to the extent that
it is available. The Audit and Risk
Committee determines the overall
appropriateness of key valuation
techniques and inputs for fair value
measurement. The Chief Financial
Officer explains net changes in fair
value in their report to the Board.
Where the fair value of a financial
instrument is calculated using DCF
analysis, a number of inputs and
assumptions are used. These are:
• forward price curves referenced to
the ASX for electricity, published
market interest rates and published
forward foreign exchange rates;
• Meridian’s best estimate of energy
volumes called over the life of
energy options;
• discount rates based on market
wholesale interest rate curves,
adjusted for counterparty risk;
• calibration factors applied
as a consequence of initial
recognition differences;
• NZAS continues to operate
until 31 December 2044; and
• contracts run their full term.
The table below describes any
additional key inputs and techniques
used in the valuation of level 3
energy hedges.
FINANCIAL ASSET
OR LIABILITYDESCRIPTION OF INPUTRANGE OF SIGNIFICANT UNOBSERVABLE INPUTSRELATIONSHIP OF INPUT TO FAIR VALUE
Other energy
hedges and NZAS
Where quoted prices are not available or not relevant
(i.e. for long-dated, discounted contracts), Meridian’s best
estimate of long-term forward wholesale electricity price is
used. This is based on a fundamental analysis of expected
demand and the cost of new supply and any other relevant
wholesale market factors. It takes into account any fixed
discount applicable at inception.
$59/MWh to $139/MWh
(in nominal terms), excludes observable
ASX prices (2024: $56/MWh to $77MWh)
An increase in the forward wholesale
electricity price increases the fair value
of buy hedges and decreases the fair
value of sell hedges.
A decrease in the forward wholesale
electricity price has the opposite effect.
NZASThe NZAS CFD and DRA contain price adjustments for inflation,
subject to movements in average annual aluminium price. Actual
and forecast CPI, as published by New Zealand Treasury, is used
as an input. This is adjusted for the probability of CPI increases
applying to the contracts. Meridian assesses probability of CPI
increases by historic analysis of aluminium prices.
CPI: 0% – 2%, Probability 57%
(2024: CPI: 0%-2%, Probability 54%)
For the CFD, as CPI rises, it’s value
increases. A decrease in CPI has the
opposite effect.
For the DRA embedded derivative,
as CPI rises, the value decreases. An
increase in CPI has the opposite effect.
D2 TREASURY AND ENERGY HEDGES CONTINUED
145
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D2 TREASURY AND ENERGY HEDGES CONTINUED
Level 3 energy hedge analysis
The following provides a summary of the movements through EBITDAF (as referred to in Note A1 Segment Performance) of net changes in fair value of Level 3 energy hedges.
$M
20252024
OTHER
ENERGY
HEDGES
ENERGY
OPTIONS NZAS TOTAL
OTHER
ENERGY
HEDGES
ENERGY
OPTIONS NZAS TOTAL
Net change in fair value of energy hedges:
Unrealised changes in fair value(16) (46) (465) (527) 19 51 (19) 51
Realised changes in fair value(63) 40 (436) (459) 135 14 – 149
Total net change in fair value of Level 3 energy hedges(79) (6) (901) (986) 154 65 (19) 200
Balance at the beginning of the period 41 93 (19) 115 (5) 34 – 29
Net change in fair value in profit and loss(79) (6) (901) (986) 154 65 (19) 200
Remeasurement 34 (42) 422 414 (108) (13) – (121)
Disposals and derecognition – – – – – (3) – (3)
New hedge recognised – 7 – 7 – 10 – 10
Balance at the end of the year (4) 52 (498) (450) 41 93 (19) 115
The net change in fair value of Level 3 energy hedges in 2025 which are held at balance date total ($523) million (2024: $45 million).
Financial instruments which are offset
In certain circumstances Meridian offsets the fair value of financial instruments where it has legal agreements in place that permit
netting of positions and net settlement.
$M
20252024
GROSS
VALUE
VALUE
OFFSET
CARRYING
VALUE
GROSS
VALUE
VALUE
OFFSET
CARRYING
VALUE
Financial instrument assets
Energy hedges 304 (131) 173 608 (228) 380
Treasury hedges 76 – 76 77 – 77
Total financial instrument assets 380 (131) 249 685 (228) 457
Financial instrument liabilities
Energy hedges(868) 131 (737) (428) 228 (200)
Treasury hedges(24) – (24) (28) – (28)
Total financial instrument liabilities(892) 131 (761) (456) 228 (228)
Net financial instruments(512) – (512) 229 – 229
146
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D3 Hedge accounting
Hedge accounting
Meridian makes use of hedge
accounting for USD borrowings, certain
highly probable forecast transactions
and the financial instruments that are
used to economically hedge these
exposures. Refer to the start of this
section for a description of the key
risks Meridian manages.
Meridian only designates hedge
accounting relationships where the
underlying exposure and the hedge
are eligible for hedge accounting and
are an economic match, where credit
risk is not expected to dominate the
fair value of the hedge, and where
we expect the hedge relationship to
remain effective over its life.
The USD borrowings (hedged items)
and the CCIRS (hedging instruments)
present Meridian with risks which we
account for in the following ways:
Interest rate risk
The USD borrowings are fixed rate
liabilities and thus present interest
rate risk, should benchmark interest
rates change. This risk is neutralised
by receiving the same fixed rate on
the USD leg of the matching CCIRS.
Meridian designates the interest rate
risk on USD borrowings in fair value
hedge accounting relationships.
This means:
• the carrying value of the USD
borrowings are adjusted for changes
in the fair value of the hedged
risk – noted as “”hedge accounting
adjustments”” in Note C5 Borrowings;
and
• the CCIRS are revalued to profit
and loss for this same risk.
As long as the hedge accounting
relationships remain effective, the
revaluations of both the hedged item
and hedging instrument should net to
a minimal amount in profit and loss.
This residual difference is referred to
as hedge ineffectiveness.
Note that the accumulated life to date
hedge accounting adjustments on the
USD borrowing decrease the carrying
value of the borrowing by $29 million
(2024: decrease by $53 million).
Basis and margin risk
The combination of USD borrowings and
CCIRS economically results in Meridian
having floating rate NZD borrowings. This
presents a risk of variability in future cash
flows. As such, Meridian designates basis
risk (excluding FX) and margin risk into
cash flow hedge relationships.
This means:
• the CCIRS are revalued to profit and
loss for basis risk and margin risk; and
• the effective portions of the hedge
are moved from profit and loss to
the Cash Flow Hedge Reserve
within Equity.
As noted earlier, there may be small
differences between the above entries
which result in hedge ineffectiveness
in profit and loss.
Refer to:
• Note C5 Borrowings for the
carrying value of the hedged
items (USD borrowings);
• Note D2 Treasury and energy
hedges for further information on
the hedging instruments (CCIRS),
including notionals and changes in
fair value during the period; and
• The Statement of Changes in
Equity for the balance of the Cash
Flow Hedge Reserve and movements
during the period.
On the Balance Sheet, USD borrowings
are included within borrowings and
CCIRS are included within financial
instruments.
Foreign exchange risk
Meridian has hedged highly
probable forecast capital expenditure
denominated in currencies other than
NZD using forward exchange contracts.
The foreign currency exposures give
rise to the risk of variability to future
cashflows. To mitigate this risk, forward
foreign exchange contracts have been
entered into. The cash flows associated
with these contracts are timed to mature
when the payment for the capital
expenditure is made. For contracts
designated as cash flow hedges for
accounting purposes, when the cash
flows occur Meridian adjusts the
carrying value of the asset acquired.
Hedge ineffectiveness
The below table summarises hedge
ineffectiveness. This is included within
“Net change in fair value of treasury
hedges” in profit and loss.
IMPACT ON
PROFIT AND LOSS
2025
$M
2024
$M
Hedge ineffectiveness
gain (loss)
– –
Where ineffectiveness occurs, it is
primarily caused by credit counterparty
risk on CCIRS. This risk is part of the
CCIRS fair value but is not included in
the hedged item. Hedge ineffectiveness
will net to zero over the life of the hedge
relationships.
147
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
D3 HEDGE ACCOUNTING CONTINUED
Future cash flows
The table below estimates the contractual undiscounted future cash flows that we expect on hedge accounted items. Amounts noted include coupons and repayment/exchange
of notionals on maturity.
CURRENCY AS INDICATED BELOW
2025
$M
2024
$M
DUE
WITHIN
1 YEAR
DUE
WITHIN
1-2 YEARS
DUE
WITHIN
2-5 YEARS
DUE
AFTER
5 YEARS
DUE
WITHIN
1 YEAR
DUE
WITHIN
1-2 YEARS
DUE
WITHIN
2-5 YEARS
DUE
AFTER
5 YEARS
USD borrowings (shown in USD)(16) (113) (155) (187) (16) (16) (260) (194)
CCIRS
USD leg (coupons and maturity flow – shown in USD) 16 113 155 187 16 16 260 194
Functional currency leg (coupons and maturity flow – shown in NZD)(29) (170) (242) (282) (42) (37) (406) (298)
Foreign exchange contracts
Foreign currency leg (shown in NZD)884 – – 37 – – –
NZD leg(92)(4) – – (36) – – –
Functional currency coupons are set quarterly based on NZ benchmark rates. They are shown in this table based on market forward interest rates. The foreign currency leg of
foreign exchange contracts is translated to NZD using spot exchange rates at reporting date.
148
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUFINANCIAL INSTRUMENTS USED TO MANAGE RISK
E. Other disclosures
IN THIS SECTION
This section includes
other disclosures relating
to Meridian’s financial
statements which are
required to comply with
financial reporting standards.
E1 Tax
TAX EXPENSE
2025
$M
2024
$M
Current income tax expense102 198
Permanent differences(2) –
Total current tax expense100 198
Deferred tax (268)(34)
Adjustment to tax of prior years 1 1
Total tax expense/(benefit)(167) 165
Reconciliation to profit/(loss) before tax
Profit/(loss) before tax(619) 594
Tax at applicable rates(173) 166
Expenditure not assessable for tax(2) (2)
Other 8 1
Tax expense/(benefit)(167) 165
Tax expense
Tax expense components are current
income tax and deferred tax.
Current income tax expense is the
income tax assessed on taxable profit
for the year. Taxable profit differs
from profit before tax reported in the
Comprehensive Income Statement, as it
excludes items of income and expense
that are taxable or deductible in other
years and items that will never be
taxable or deductible. Meridian’s current
liability for current tax is calculated using
the tax rates applicable at balance date,
being 28% (2024: 28%).
149
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUOTHER DISCLOSURES
E1 OTHER DISCLOSURES CONTINUED
DEFERRED TAX LIABILITIES
2025
$M
2024
$M
Balance at beginning of year 2 ,949 2,103
Temporary differences in profit and loss:
Depreciation and amortisation(64)(66)
Changes in fair value of financial instruments(190) 29
Changes in other assets and liabilities(15) 3
Temporary differences in other comprehensive income:
Changes in the asset revaluation reserve 588 883
Other –(3)
Balance at end of year3,268 2,949
Made up of:
Property, plant and equipment3,423 2,899
Financial instruments(143) 47
Other assets and liabilities(12) 3
Deferred tax liability3,268 2,949
Deferred tax liabilities
Deferred tax is income tax expected to be payable or recoverable in the future as a
result of the unwinding of temporary differences. These arise from differences in the
recognition of assets and liabilities for financial reporting and from the filing of income
tax returns. The majority of Meridian’s deferred tax balance relates to the revaluation
of property, plant and equipment.
Deferred tax is calculated at the tax rates that are expected to apply to the year when
the liability is settled or the asset realised, based on tax rates and tax laws that have
been enacted or substantively enacted at balance date.
E2 Trade receivables
TRADE RECEIVABLES
2025
$M
2024
$M
Accrued receivables 359 493
Current billed 28 27
Past due – less than 30 days 19 16
Past due – more than 30 days 5 4
Less: Credit loss allowance(5) (4)
Total trade receivables 406 536
Trade receivables past due but not impaired 19 16
Trade receivables, measurement and recognition
Trade receivables are measured on initial recognition at fair value and are
subsequently carried at amortised cost.
Trade receivables are written off at the point where Meridian believe there is no
reasonable expectation of recovery. Trade receivables written off are handed to
collection agencies for enforcement. Trade receivables written off during the year
were $2 million (2024: $1 million).
E3 Commitments
CAPITAL EXPENDITURE COMMITMENTS
2025
$M
2024
$M
Property, plant and equipment 205 74
Intangible assets – 2
Total capital expenditure commitments 205 76
Guarantees
Various entities within the Group provide guarantees to external counterparties,
with these mostly relating to security for energy market clearing and property lease
agreements. The maximum liability under these guarantees is $300 million (2024:
$200 million).
150
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUOTHER DISCLOSURES
E4 Group structure
The consolidated financial statements include the financial statements of Meridian, subsidiaries and other interests listed below.
Subsidiaries all have share capital consisting solely of ordinary shares that the Group holds directly, and the proportion of ownership interests held equals the Group’s voting rights.
Meridian provides support to its subsidiaries where necessary in order to ensure they meet their obligations as they fall due.
NAME OF ENTITYPRINCIPAL ACTIVITYFUNCTIONAL CURRENCY
INTEREST HELD
BY THE GROUP
20252024
Meridian Energy Limited
29
Flux Federation Limited
30
Software developmentNew Zealand dollar100%100%
Flux-UK Limited (in liquidation)
30
Licence holderBritish pounds100%100%
Dam Safety Intelligence Limited
30
Professional servicesNew Zealand dollar100%100%
Meridian Energy Captive Insurance Limited
30
Insurance New Zealand dollar100%100%
Meridian Limited
30
Non-trading entityNew Zealand dollar100%100%
Meridian Energy International Limited
30
Non-trading entityNew Zealand dollar100%100%
Powershop New Zealand Limited
30
Non-trading entityNew Zealand dollar100%100%
Kōkako SPV Limited
30
Non-trading entityNew Zealand dollar100%100%
Te Rere Hau Holdings Limited
31
Non-trading entityNew Zealand dollar50%50%
Te Rere Hau Limited
31
Non-trading entityNew Zealand dollar50%50%
Te Rere Hau Holdings (2023) Limited Partnership (LP)
31
Non-trading entityNew Zealand dollar50%50%
Te Rere Hau Project LP
31
Development entityNew Zealand dollar50%50%
Te Arawaru o Te Waitaki Tapui Limited
31
Non-trading entityNew Zealand dollar20%20%
EV Infrastructure Partners Limited
30
Non-trading entityNew Zealand dollar100%0%
Whetu SPV Limited
30
Non-trading entityNew Zealand dollar100%0%
There has been no change in Meridian’s ownership interest in NZ Windfarms Limited (NZWF) or percentage holding in the Te Rere Hau joint venture during FY25.
Refer to Note E11 Subsequent events for more information.
29 Meridian Energy Limited is the only member of the guaranteeing group as at 30 June 2025.
30 Subsidiary interests.
31 Other interests.
151
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUOTHER DISCLOSURES
E5 Net profit/(loss) after tax to operating cash flows
RECONCILIATION OF NET PROFIT/(LOSS) AFTER TAX
TO CASH FLOWS FROM OPERATING ACTIVITIES
2025
$M
2024
$M
Net profit/(loss) after tax(452) 429
Adjustments for operating activities’ non-cash items:
Depreciation and amortisation 447 334
Movement in deferred tax liability(267)(33)
Net change in fair value of financial instruments 671 (98)
Non-cash interest expense 5 5
Other non-cash items in working capital103(70)
959 138
Items classified as investing activities:
(Gain)/loss on sale of assets & other asset receipts(11) 8
(Gain) on sale of subsidiaries – (8)
(11) –
Changes in working capital items:
(Increase)/decrease in trade receivables 130 (202)
(Increase)/decrease in other assets(10) (1)
Increase/(decrease) in payables and accruals(193) 269
Increase/(decrease) in tax payable/receivable(100) 39
Working capital items in financing activities(5) (5)
(178) 100
Cash flow from operating activities 318 667
E6 Payables and accruals
PAYABLES AND ACCRUALS
2025
$M
2024
$M
Trade payables and accruals 346 554
Employee entitlements 11 21
Electricity option premiums payable 23 29
Other payables 76 54
Total payables and accruals 456 658
of which:
Current401 596
Non current55 62
Total payables and accruals 456 658
Payables and accruals are recognised when Meridian becomes obligated to make
future payments and are subsequently carried at amortised cost.
152
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUOTHER DISCLOSURES
E7 Share-based payments
Long term incentive (LTI)
The Chief Executive, executive team
and selected tier three leaders have the
opportunity to participate in the LTI plan.
The LTI plan is offered at the discretion of
the board, to align senior management
and shareholders’ interests, and optimise
long-term shareholder returns. The
LTI plan is not otherwise available to
Meridian employees.
Meridian has a policy that ensures
participants in the LTI plan are not able
to enter transactions (whether through
the use of derivatives or otherwise)
that limit the economic risk of their
participation in the plan.
The LTI opportunity is 40% of salary for
the Chief Executive, 30% of salary for
the executive team and 15% of salary
for eligible tier three leaders. Vesting
of the LTI is contingent on meeting
absolute and relative total shareholder
return (TSR) performance hurdles at the
conclusion of a three-year period.
LTI plan
Under Meridian’s LTI plan, the company
issues rights to acquire ordinary shares
in the company (performance share
rights, PSR) to eligible participants who
accept the offer to participate in the LTI
plan. Each PSR entitles the holder to one
ordinary share in the company and an
additional number of shares equal to
the value of gross cash dividends per
share which would have been paid to
a New Zealand tax resident who held
a share for the duration of the vesting
period, calculated using a 10-day
volume weighted average price.
The number of PSR that vest is
dependent on:
• Meridian’s TSR over a three-year
performance period (performance
period) relative to Meridian’s cost
of equity;
• Meridian’s TSR over the performance
period relative to a defined group of
NZX Main Board and ASX listed peer
companies (performance hurdles);
and
• if the participant continues to be
employed by Meridian during the
vesting period (employment condition).
Performance hurdles
As at 30 June 2025, there were three
LTI plan cycles underway. These plans
have performance periods which end
as follows:
• FY23 Plan: 30 June 2025;
• FY24 Plan: 30 June 2026; and
• FY25 Plan: 30 June 2027.
The three plans above all have slightly
different performance hurdles, as the
market has evolved over this period.
The following applies to the FY23 plan,
the performance period for which ends
30 June 2025:
• The peer group against which
relative TSR performance was
measured for the FY23 plan
comprised the other companies
listed in the S&P/NZX50 index;
• The vesting period for the FY23 LTI
scheme ends on 3 October 2025.
PSR lapse if the holder ceases to be
employed by Meridian during the
vesting period, subject to the Board’s
discretion.
PSR are granted in two tranches:
• absolute return share (ABS) Rights;
and
• relative return share (REL) Rights.
For ABS Rights to vest, the company’s
TSR must be greater than the absolute
TSR benchmark which is set at the
beginning of the vesting period with
regard to the company’s cost of
equity (absolute TSR benchmark) on
a compounding annual basis over the
performance period. If the company’s
TSR is equal to or lower than the
absolute TSR benchmark, no ABS Rights
will vest. If the company’s TSR is greater
than the absolute TSR benchmark,
100% of the ABS Rights will vest.
The number of REL Rights that vest is
determined by the company’s TSR over
the performance period relative to the
peer group. For any of the REL Rights to
vest, the company’s TSR must be greater
than or equal to the 50th percentile
(median) TSR of the peer group. 100% of
the REL Rights will vest on meeting the
75th percentile TSR of the peer group,
with vesting on a straight-line basis
between these two points.
For each three-year plan, an
independent external expert measures
the TSR of Meridian and the peer group
of companies along with the outcome
on the progressive vesting scale. Share
Rights will lapse if the vesting conditions
are not satisfied (although this is subject
to the Board’s discretion in relation to
the employment condition).
For the LTI plan performance period
to the end of 2025, the level of TSR will
result in 100% of share rights vesting
(2024: 100%). Share rights totalling
941,776 will be transferred to the eligible
participants for that LTI after balance
date (2024: 418,360)
During the period, 863,878 share rights
were issued to eligible staff, 431,999
being ABS Rights and 431,999 being
REL Rights.
The fair value of the ABS Rights at grant
date of $1.72 (2024: $1.76) was estimated
by a modified form of the standard
Black-Scholes option pricing model,
including dividend adjustment. The fair
value of the REL Rights at grant date
of $2.10 (2024: $2.79) was estimated
by using a Monte Carlo simulation
of the possible future performance
of Meridian’s TSR and of the TSR of
each company in the peer group from
the grant date using correlation and
volatility input estimates. The fair value
of the rights, multiplied by the number of
instruments likely to vest, is recognised as
an expense over the relevant three-year
service period.
153
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUOTHER DISCLOSURES
E7 SHARE-BASED PAYMENTS CONTINUED
Movement in zero-priced share options
GRANT DATEVESTING DATE
LTI SCHEME
& TYPE
WEIGHTED
AVERAGE FAIR
VALUE OF
OPTION
NUMBER OF OPTIONS/RIGHTS
BALANCE AT
START OF
THE YEAR
GRANTED
DURING THE
YEAR
VESTED
DURING THE
YEAR
FORFEITED
DURING
THE YEAR
BALANCE AT
THE END OF
THE YEAR
2025
23/10/202421/09/2027ABS$1.72 – 528,038 – (96,099) 431,939
23/10/202421/09/2027REL$2.10 – 528,038 – (96,099) 431,939
24/10/202325/10/2026ABS$1.76 433,123 (82,730) 350,393
24/10/202325/10/2026REL$2.79 433,123 (82,730) 350,393
27/10/202203/10/2025ABS$2.66 470,887 470,887
27/10/202203/10/2025REL$3.22 470,887 470,887
21/10/202121/10/2024ABS$2.14 209,180 – (209,180) –
21/10/202121/10/2024REL$2 .93 209,180 – (209,180) –
Tot a l 2,226,380 1,056,076 (418,360) (357,658) 2,506,438
2024
24/10/202325/10/2026ABS$1.76 – 433,123 – – 433,123
24/10/202325/10/2026REL$2.79 – 433,123 – – 433,123
27/10/202203/10/2025ABS$2.66 470,887 – – – 470,887
27/10/202203/10/2025REL$3.22 470,887 – – – 470,887
21/10/202121/10/2024ABS$2.14 209,180 – – – 209,180
21/10/202121/10/2024REL$2.93 209,180 – – – 209,180
Tot a l 1,360,134 866,246 – – 2,226,380
154
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUOTHER DISCLOSURES
E8 Related parties
Meridian transacts with other Government owned or related entities independently
and on an arm’s-length basis. Transactions cover a variety of services including trading
energy, transmission, postal, travel and tax.
Directors of the Group may be directors or officers of other companies or organisations
with which members of the Group may transact.
Compensation of key management personnel
The remuneration of directors and all members of the executive management team
during the year was as follows:
2025
$M
2024
$M
Directors’ Fees 1 1
CEO, senior management team and subsidiary chief executives
Salaries and short-term benefits 10 9
Post-employment benefits – –
Redundancy benefits – –
Long-term benefits 2 –
12 9
E9 Auditors remuneration
AUDITORS REMUNERATION TO DELOITTE LIMITED FOR:
2025
$M
2024
$M
Audit and review of New Zealand based
companies’ financial statements
0.8 0.7
Other assurance and agreed upon procedures
Limited assurance of sustainability reporting0.2 0.2
Other Services 0.1 0.1
Total auditor remuneration1.1 1.0
The Board has adopted a policy to maintain the independence of the Company’s
external auditor, including a review of all other services performed by Deloitte Limited
and recommending to the Office of the Auditor-General that there be lead partner
rotation after a maximum of five years. The Auditor-General has appointed Anthony
Smith of Deloitte Limited as auditor of the company. The audit fee includes an
additional Office of the Auditor-General overhead contribution of $42,526
(30 June 2024: $37,932).
Fees attributed to audit and review of financial statements include assurance
engagements related to the securities registers, bond registers vesting of the long
term incentive plan, supervisor reporting, the solvency return of Meridian Energy
Captive Insurance Limited and an agreed upon procedures engagement for
insurance purposes.
Other assurance and agreed upon procedure services undertaken by Deloitte
Limited included assurance engagements relating to the greenhouse gas emissions
disclosed in the Group Climate Statements, greenhouse gas emsisions reported
in the Greenhouse Gas Emissions Inventory Report, the sustainability content in
the integrated report prepared in accordance with the Global Reporting Initiative
Sustainability Reporting Standards.
Other fees paid to Deloitte during the year include $66,822 (2024: $11,000) for cyber
security services and $14,000 (2024: $14,000) to Deloitte Limited for administrative
and other advisory services to the Corporate Taxpayers Group, of which Meridian,
alongside a number of other organisations, is a member.
155
MERIDIAN ENERGY INTEGRATED REPORT 2025
NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUOTHER DISCLOSURES
E10 Contingent
assets and liabilities
There were no contingent assets or
liabilities at 30 June 2025 (2024: Nil).
E11 Subsequent events
Subsequent to 30 June 2025, the
following key events have occurred.
Dividend declared
On 26 August 2025 the Board declared
a final dividend, refer to Note C4
Dividends for more information.
Acquisition of NZWF
On 18 February 2025, Meridian
entered into a Scheme Implementation
Agreement (SIA) with NZWF to acquire
all remaining shares in NZWF that
Meridian did not already own. NZWF
was a NZX-listed entity engaged in
operating wind power generation
assets for the purpose of generating
and selling renewable electricity.
Under the terms of the SIA, consideration
of $0.25 per share was to be paid in
cash for each Scheme Share (totalling
approximately $91 million). Prior to the
implementation of the SIA, Meridian owned
19.99% of the ordinary shares of NZWF.
On 24 June 2025, NZWF shareholders
voted in favour of the SIA. The transaction
remained subject to final High Court
approval, which was granted on 16 July
2025. The scheme was implemented
on 30 July 2025, at which point NZWF
shareholders received the agreed
consideration and Meridian assumed
100% ownership of NZWF.
As at 30 June 2025, the transaction
had not yet been completed and
Meridian did not yet control NZWF.
Meridian will account for the acquisition
as a business combination under
NZ IFRS 3. Due to insufficient time
and information available before
the release of Meridian’s financial
statements, the acquisition accounting
cannot be completed, and Meridian
is unable to reliably estimate the
financial impact of the acquisition.
Following implementation on 30 July
2025, Meridian will consolidate NZWF
as a subsidiary in accordance with
NZ IFRS 10 Consolidated Financial
Statements. Prior to this, Meridian
accounted for its investment in NZWF
at fair value with changes in fair value
recognised in profit or loss. The fair
value of Meridian’s existing equity
interest in NZWF held immediately
before the acquisition date was
$17.8 million.
Asset acquisition of
Flick Energy Limited
On 12 May 2025, Meridian entered into
an Asset Sale Agreement to acquire
selected electricity retail business assets
from Flick Energy Limited and Z Energy
Limited for an agreed consideration of
$70 million. The assets include short-term
retail electricity customer contracts, related
trade receivables, a hedge book, financial
transmission rights (FTRs), and intellectual
property associated with the Flick brand.
As at 30 June 2025, the transaction
had not yet reached completion, as
several conditions precedent outlined
in the agreement remained outstanding.
Completion occurred on 22 July 2025,
following satisfaction of all conditions
precedent.
The transaction will be accounted for
as an asset acquisition under NZ IFRS,
as the assets acquired do not constitute
a business as defined in NZ IFRS 3.
Retail Bond
Meridian is considering making an
offer of up to $250 million (with the
ability to accept oversubscriptions
of up to an additional $50 million
at Meridian’s discretion) of 6 ½ year
unsecured, unsubordinated, fixed
rate Green Bonds to institutional and
New Zealand retail investors. It is
expected that full offer details will
be released on 1 September 2025,
when the offer is expected to open.
Strategic Energy Reserve
On 4 August 2025, Meridian entered
into agreements with Genesis Energy,
Mercury NZ, and Contact Energy to
establish a Strategic Energy Reserve
at the Huntly Power Station and related
Huntly firming option. This is in response
to the ongoing challenges posed by gas
supply shortages and aims to enhance
the security of electricity supply and
price stability in New Zealand. The long
term agreements are currently subject to
review by the New Zealand Commerce
Commission, with the parties intending
for the arrangement to take effect from
1 January 2026. At the time of issuing
these financial statements, Meridian
is unable to quantify the potential
financial impact of the Strategic
Energy Reserve agreements.
E12 Changes in financial
reporting standards
All mandatory amendments and
interpretations have been adopted
in the current year. None have had
a material impact on these financial
statements. Meridian is not aware of
any standards issued but not yet
effective that would materially affect
the amounts recognised or disclosed
in the financial statements.
NZ IFRS 18 Presentation and Disclosure
in Financial statements was issued in
May 2024 (effective from 1 January
2027). This Standard sets out
requirements for the presentation and
disclosure of information in financial
statements to help ensure they provide
relevant information that faithfully
represents an entity’s assets, liabilities,
equity, income and expenses. Meridian
has not yet completed its assessment
on the impact of this standard.
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NOTES TO THE FINANCIALS: FOR THE YEAR ENDED 30 JUNE 2025
MENUOTHER DISCLOSURES
Independent Auditor’s Report
To the shareholders of Meridian Energy Limited
The Auditor-General is the auditor
of Meridian Energy Limited and its
subsidiaries (the Group). The Auditor-
General has appointed me, Anthony
Smith, using the staff and resources of
Deloitte Limited, to carry out the audit
of the consolidated financial statements
of the Group on his behalf.
Opinion
We have audited the consolidated
financial statements of the Group on
pages 117 to 156, that comprise the
consolidated balance sheet as at 30 June
2025, the consolidated comprehensive
income statement, consolidated statement
of changes in equity and consolidated
statement of cash flows for the year then
ended, and the notes to the consolidated
financial statements including material
accounting policy information.
In our opinion, the consolidated financial
statements present fairly, in all material
respects, the consolidated financial
position of the Group as at 30 June
2025, and its consolidated financial
performance and its consolidated
cash flows for the year then ended
in accordance with New Zealand
equivalents to IFRS Accounting
Standards (“NZ IFRS”) as issued by
the External Reporting Board and
IFRS Accounting Standards (“IFRS”)
as issued by the International
Accounting Standards Board.
Basis for our opinion
We conducted our audit in accordance
with the Auditor-General’s Auditing
Standards, which incorporate the
Professional and Ethical Standards
and the International Standards on
Auditing (New Zealand) issued by the
New Zealand Auditing and Assurance
Standards Board. Our responsibilities
under those standards are further
described in the Auditor’s responsibilities
for the audit of the consolidated
financial statements section of our
report. We are independent of the
Group in accordance with the Auditor-
General’s Auditing Standards, which
incorporate Professional and Ethical
Standard 1: International Code of Ethics
for Assurance Practitioners (including
International Independence Standards)
(New Zealand) (PES 1) issued by the
New Zealand Auditing and Assurance
Standards Board, and we have fulfilled
our other ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence
we have obtained is sufficient and
appropriate to provide a basis for
our opinion.
In addition to the audit, our firm
has carried out other engagements
for the Group including a review of
interim financial statements, supervisor
reporting, assurance services relating
to the securities and fixed rate bonds
registers, selected greenhouse gas
emissions disclosed in the Group
Climate Statements, greenhouse gas
emissions reported in the greenhouse
gas emission Inventory Report, the
sustainability content in the integrated
report prepared in accordance with the
Global Reporting Initiative Sustainability
Reporting Standards, vesting of the
executive long-term incentive plan,
the solvency return of Meridian Energy
Captive Insurance Limited, and an
agreed upon procedures engagement
for Meridian Energy Captive Insurance
Limited. We also carried out non-
assurance assignments for the Group
relating to cyber security services and
services to the Corporate Taxpayers
Group of which Meridian Energy
Limited is a member. These services are
compatible with those independence
requirements.
In addition, partners and employees
of our firm deal with the Group on
arm’s length terms within the ordinary
course of trading activities of the Group.
These services have not impaired
our independence as auditor of the
Group. Other than the audit and these
engagements and trading activities,
we have no relationship with, or interests
in, Meridian Energy Limited or any of
its subsidiaries.
Audit materiality
We consider materiality primarily in
terms of the magnitude of misstatement
in the consolidated financial statements
of the Group that in our judgement
would make it probable that the
economic decisions of a reasonably
knowledgeable person would be
changed or influenced (the ‘quantitative’
materiality). In addition, we also assess
whether other matters that come to
our attention during the audit would
in our judgement change or influence
the decisions of such a person (the
‘qualitative’ materiality). We use
materiality both in planning the scope
of our audit work and in evaluating
the results of our work.
We determined materiality for the
Group consolidated financial statements
as a whole to be $23.5 million.
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Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
KEY AUDIT MATTERSHOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTERS
Valuation of Generation Structures and Plant
As explained in note B1 in the Group financial statements, Generation structures
and plant are carried at fair value less any subsequent accumulated depreciation
and impairment losses at balance sheet date.
The net book value of generation structures and plant as reflected in note B1 is
$13,394 million (2024: $11,609 million).
The Group performs a valuation every year to ensure that the carrying value does
not differ significantly from the fair value at balance date.
As a result of this valuation, generation structures and plant have been revalued
this year as at 30 June 2025. The revaluation resulted in an increase in value by
$2,108 million (2024: increase of $3,152 million) and the net of tax impact was
taken through the revaluation reserve. The valuation methodology is based
on a discounted cashflow (‘DCF’) approach. The key inputs into the DCF are:
• the future New Zealand wholesale electricity price path;
• forecasted future generation volumes;
• forecast future expenses; and
• the weighted average cost of capital (‘WACC’).
Changes to these forecasts could significantly change the fair value of the
generation assets. The inputs do not fully use observable market data and require
significant judgement and estimates to be made by the valuer. As outlined in the
financial statements the valuation has considered the impacts of climate change
and the amendments to the valuation technique for depreciation related charges
in the valuation.
We include valuation of generation structures as a key audit matter because of
the financial significance of the generation plant to the financial statements and
the inherent technical and judgemental complexity associated with determining
the fair value.
Our audit procedures focused on assessing the key inputs into the model used to
estimate the fair value of the generation structures and plant. This included:
• The reasonableness of the future NZ wholesale electricity price path
(including the consideration of any impacts relating to climate change);
• The reasonableness of the future forecasted generation volumes; and
• The reasonableness of the applied WACC rate.
Our procedures included but are not limited to:
• Evaluating the Group’s processes and controls for the valuation of the generation
structures and plant;
• Reviewing the valuation methodology and the reasonableness of the significant
underlying assumptions as well as challenging whether the forecast was in line
with internal data;
• Assessing the competence, objectivity and integrity of the valuation team;
• Utilising our in-house valuation specialists to assess the appropriateness of the
valuation methodology and the reasonableness of the valuation determined by
the valuation team, including the WACC rate and forward price path;
• Assessing the reasonableness of the forecasted future expenses (including
any allowance for consenting costs, and climate change);
• Performing sensitivity analysis on the key assumptions within the model;
• Assessing the appropriateness of the change in accounting estimate, including
the reasonableness of assumptions used in relation to forecasted depreciation;
• Performing a retrospective review of budgets compared to actual data for prior
periods to assess the accuracy and robustness of the forecasting process; and
• Evaluating the adequacy of the Group’s disclosures in respect of the valuation
of generation structures and plant.
As a result of the above procedures, we are satisfied that the valuation and key
assumptions applied to estimate the fair value of the generation structures and
plant and the disclosures included in note B1 are reasonable.
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KEY AUDIT MATTERSHOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTERS
Valuation of Level 3 Electricity Derivatives
As explained in note D1, the Group’s activities expose it to commodity price, foreign
exchange and interest rate risks which are managed using derivative financial
instruments.
These instruments are carried at their fair value as at 30 June 2025. Fair value
measurements are grouped into three categories based on their inputs into the
valuation, with level 3 derivatives being the most complex valuations, given that
they use significant inputs that do not use directly observable market data.
At 30 June 2025, level 3 electricity derivative assets totalled $166 million
(2024: $301 million) and level 3 electricity derivative liabilities were $616 million
(2024: $185 million).
We include valuation of level 3 electricity derivatives as a key audit matter for
the following reasons:
• The forecast price path used in the valuation of electricity hedges is based on
the Group’s best estimate of the long-term forward wholesale electricity price,
which involves significant judgement and estimates regarding discount factors,
expected demand, cost of new supply, and other relevant market factors; and
• The complexity and judgement involved in the valuation techniques and the
judgement involved in evaluating the long-term expected call volumes and
discount factor used to determine the fair value of electricity options and swaps.
Our audit procedures focused on:
• The reasonableness of the future NZ wholesale electricity price paths
(including the consideration of any impacts relating to climate change);
• The reasonableness of the future forecasted generation volumes; and
• The reasonableness of the applied discount rate.
Our procedures included:
• In conjunction with our internal experts, evaluating the appropriateness of the
methodology applied in the valuation models for these electricity hedges, options
and swaps and ensuring that the methodology has been consistently applied
compared with the prior year where appropriate;
• Challenging the key assumptions applied, including the long-term forward
wholesale electricity price, long-term expected call volumes, fair value of the
transaction prices and discount rates;
• Agreeing underlying data to contract terms, specifically the contract term, price
and volumes; and
• Evaluating the adequacy of the Group’s disclosures in respect of the valuation of
level 3 electricity derivatives.
As a result of the above procedures, we are satisfied that the valuation and key
assumptions applied to estimate the fair value of the level 3 electricity derivatives
and the disclosures made in note D1 are reasonable.
Other information
The Directors are responsible on behalf
of the Group for the other information.
The other information comprises the
information in the Integrated Report
and the Climate Statement, but does
not include the consolidated financial
statements and our auditor’s report
thereon.
Our opinion on the consolidated
financial statements does not cover
the other information and we do not
express any form of audit opinion or
assurance conclusion thereon.
In connection with our audit of the
consolidated financial statements,
our responsibility is to read the other
information and, in doing so, consider
whether the other information is
materially inconsistent with the
consolidated financial statements or
our knowledge obtained in the audit
or otherwise appears to be materially
misstated. If, based on the work we
have performed, we conclude that
there is a material misstatement of this
other information, we are required to
report that fact. We have nothing to
report in this regard.
Directors’ responsibilities
for the consolidated
financial statements
The Directors are responsible on behalf
of the Group for the preparation and
fair presentation of the consolidated
financial statements in accordance with
NZ IFRS and IFRS, and for such internal
control as the Directors determine is
necessary to enable the preparation of
consolidated financial statements that
are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial
statements, the Directors are responsible
on behalf of the Group for assessing
the Group’s ability to continue as a
going concern, disclosing, as applicable,
matters related to going concern
and using the going concern basis of
accounting unless the Directors either
intend to liquidate the Group or to
cease operations, or have no realistic
alternative but to do so.
The Directors’ responsibilities arise from
the Financial Markets Conduct Act 2013.
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Auditor’s responsibilities for
the audit of the consolidated
financial statements
Our objectives are to obtain reasonable
assurance about whether the
consolidated financial statements
as a whole are free from material
misstatement, whether due to fraud or
error, and to issue an auditor’s report
that includes our opinion.
Reasonable assurance is a high level
of assurance, but is not a guarantee
that an audit conducted in accordance
with the Auditor-General’s Auditing
Standards will always detect a
material misstatement when it exists.
Misstatements can arise from fraud
or error and are considered material
if, individually or in the aggregate,
they could reasonably be expected to
influence the economic decisions of
shareholders taken on the basis of these
consolidated financial statements.
As part of an audit in accordance
with the Auditor-General’s Auditing
Standards, we exercise professional
judgement and maintain professional
scepticism throughout the audit.
We also:
• Identify and assess the risks of
material misstatement of the
consolidated financial statements,
whether due to fraud or error, design
and perform audit procedures
responsive to those risks, and obtain
audit evidence that is sufficient and
appropriate to provide a basis for
our opinion. The risk of not detecting
a material misstatement resulting
from fraud is higher than for one
resulting from error, as fraud may
involve collusion, forgery, intentional
omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal
control relevant to the audit in order
to design audit procedures that are
appropriate in the circumstances, but
not for the purpose of expressing an
opinion on the effectiveness of the
Group’s internal control.
• Evaluate the appropriateness of
accounting policies used and the
reasonableness of accounting
estimates and related disclosures
made by management.
• Conclude on the appropriateness
of the use of the going concern
basis of accounting by the directors
and, based on the audit evidence
obtained, whether a material
uncertainty exists related to events or
conditions that may cast significant
doubt on the Group’s ability to
continue as a going concern. If we
conclude that a material uncertainty
exists, we are required to draw
attention in our auditor’s report
to the related disclosures in the
consolidated financial statements or,
if such disclosures are inadequate, to
modify our opinion. Our conclusions
are based on the audit evidence
obtained up to the date of our
auditor’s report. However, future
events or conditions may cause the
Group to cease to continue as a
going concern.
• Evaluate the overall presentation,
structure and content of the
consolidated financial statements,
including the disclosures, and
whether the consolidated financial
statements represent the underlying
transactions and events in a manner
that achieves fair presentation.
• Plan and perform the group audit
to obtain sufficient appropriate
audit evidence regarding the
financial information of the entities
or business units within the Group
as a basis for forming an opinion
on the group financial statements.
We are responsible for the direction,
supervision and review of the audit
work performed for purposes of
the group audit. We remain solely
responsible for our audit opinion.
We communicate with the Directors
regarding, among other matters, the
planned scope and timing of the audit
and significant audit findings, including
any significant deficiencies in internal
control that we identify during our audit.
We also provide the Directors with a
statement that we have complied with
relevant ethical requirements regarding
independence, and to communicate
with them all relationships and other
matters that may reasonably be thought
to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with
the Directors, we determine those
matters that were of most significance
in the audit of the consolidated financial
statements of the current period and
are therefore the key audit matters. We
describe these matters in our auditor’s
report unless law or regulation precludes
public disclosure about the matter or
when, in extremely rare circumstances,
we determine that a matter should not
be communicated in our report because
the adverse consequences of doing
so would reasonably be expected to
outweigh the public interest benefits
of such communication.
Our responsibilities arise from the
Public Audit Act 2001.
Anthony Smith, Partner
for Deloitte Limited
On behalf of the Auditor-General
Christchurch, New Zealand
26 August 2025
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Independent Assurance Report
to the Directors of Meridian Energy Limited
Report on Sustainability Disclosures
The Integrated Report of Meridian Energy
Limited and its subsidiaries (‘Meridian’
or the ‘Group’) for the year ended 30
June 2025 (the ‘Integrated Report’)
includes the Global Reporting Initiatives
disclosures (‘GRI disclosures’) within the
GRI Standards content index (the ‘GRI
index’) on pages 163 to 167 prepared in
accordance with the Global Reporting
Initiative Sustainability Reporting
Standards and with reference to Global
Reporting Initiative G4 Sector Disclosures
Electric Utilities (collectively known as
the ‘GRI Standards’). Additionally, the
Group have identified sustainability
indicators that are not covered in the
GRI topic standards (referred to as ‘Own
Measures’) within the GRI index and were
prepared using the methodology listed in
the FY25 Data Pack on tab ‘methods’ that
was internally developed by the Group
(‘additional criteria’).
The subject of our limited assurance
engagement is the Group’s GRI
disclosures and Own Measures
referenced in the GRI index (collectively
the ‘sustainability disclosures’) and
presented within either the Integrated
Report or the Integrated Report Data
Pack 2025 for the year ended 30 June
2025 that accompanies the Integrated
Report (the ‘IR data pack’), prepared in
accordance with the GRI Standards
and additional criteria.
Our report does not cover any forward-
looking statements made by the Group
and hyperlinked documents (other than
to the IR data pack).
Conclusion
This conclusion has been formed on the
basis of, and is subject to, the inherent
limitations outlined elsewhere in this
independent assurance report.
Based on the evidence obtained from
the procedures we have performed;
nothing has come to our attention that
causes us to believe that the Group’s
sustainability disclosures referenced
within the GRI index on pages 163 to 167
of the Integrated Report, have not been
prepared, in all material respects, in
accordance with the GRI Standards
and additional criteria.
Basis for Conclusion
Our engagement has been conducted
in accordance with International
Standard on Assurance Engagements
(New Zealand) 3000 (Revised):
Assurance Engagements Other than
Audits or Reviews of Historical Financial
Information (‘ISAE (NZ) 3000 (Revised)’)
issued by the New Zealand Auditing and
Assurance Standards Board.
We believe that the evidence we have
obtained is sufficient and appropriate to
provide a basis for our conclusion.
Directors’ Responsibility
The Directors are responsible for:
• Determining the basis of preparation
for the Own Measures included
within the GRI index;
• Ensuring that the sustainability
disclosures listed in the GRI index are
prepared in accordance with the GRI
Standards and the additional criteria;
• Determining the Group’s objectives in
respect of sustainability reporting;
• Selecting the material topics and
determining whether the disclosures
are presented in the Integrated
Report or in the IR data pack;
• Establishing and maintaining
appropriate performance
management and internal control
systems in order to derive the
sustainability disclosures listed in
the GRI index; and
• Ensuring the completeness, accuracy
and availability of the sustainability
disclosures within the Integrated
Report and IR data pack.
Our Independence and
Quality Management
We have complied with the
independence and other ethical
requirements of Professional and Ethical
Standard 1 International Code of Ethics
for Assurance Practitioners (including
International Independence Standards)
(New Zealand) (‘PES-1’) issued by the
New Zealand Auditing and Assurance
Standards Board, which is founded
on fundamental principles of integrity,
objectivity, professional competence
and due care, confidentiality and
professional behaviour.
In addition to this engagement, our
firm is the statutory auditor of the
financial statements (on behalf of the
Auditor-General) and also carries out
other assignments for the Group in the
areas of review of the interim financial
statements, supervisor reporting,
assurance services relating to the
securities and fixed rate bonds registers,
selected greenhouse gas emissions
disclosed the Group Climate Statements,
greenhouse gas emissions reported in
the greenhouse gas emission Inventory
Report, vesting of the executive long-
term incentive plan, the solvency return
of Meridian Energy Captive Insurance
Limited and an agreed upon procedures
engagement for Meridian Energy
Captive Insurance Limited.
We also carried out non-assurance
assignments for the Group relating to
cyber security services and services to
the Corporate Taxpayers Group of which
Meridian Energy Limited is a member.
These services are compatible with those
independence requirements.
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In addition, partners and employees
of our firm deal with the Group on
arm’s length terms within the ordinary
course of trading activities of the Group.
Other than this engagement and these
assignments, we have no relationship
with, or interests in, the Group.
The firm applies Professional and Ethical
Standard 3: Quality Management
for Firms that Perform Audits or
Reviews of Financial Statements, or
Other Assurance or Related Services
Engagements, which requires the firm
to design, implement and operate a
system of quality management including
policies and procedures regarding
compliance with ethical requirements,
professional standards and applicable
legal and regulatory requirements.
Our Responsibility
Our responsibility is to conduct a limited
assurance engagement in order to
express an opinion whether, based on
the procedures performed, anything has
come to our attention that causes us to
believe that the Group’s sustainability
disclosures listed within the GRI index
have not been prepared, in all material
respects, in accordance with the GRI
Standards and additional criteria.
In a limited assurance engagement,
the assurance practitioner performs
procedures, primarily consisting of
discussion and enquiries of management
and others within the entity, as
appropriate, and observation and walk-
throughs, and evaluates the evidence
obtained. The procedures selected
depend on our judgement, including
identifying areas where the risk of material
non-compliance with the GRI Standards
or additional criteria is likely to arise.
Our procedures included:
• Obtaining an understanding of the
internal control environment, risk
assessment process and information
systems relevant to the sustainability
reporting process;
• Obtaining an understanding of the
materiality process applied by the
Group to determine the material
topics chosen for inclusion in the
Integrated Report and the IR data
pack respectively;
• Analytical review and other test
checks of the information presented;
• Checking whether the appropriate
indicators have been reported in
accordance with the GRI Standards
or additional criteria; and
• Evaluating whether the information
presented is consistent with our
overall knowledge and experience
of Group’s sustainability reporting
processes.
We did not evaluate the security
and controls over the electronic
publication of the Integrated Report
and IR data pack.
The procedures performed in a
limited assurance engagement vary
in nature and timing from, and are
less in extent than for, a reasonable
assurance engagement. Consequently,
the level of assurance obtained in
a limited assurance engagement is
substantially lower than the assurance
that would have been obtained had
a reasonable assurance engagement
been performed. Accordingly, we do not
express a reasonable assurance opinion
about whether the Group’s sustainability
disclosures referenced in the GRI index
have been prepared, in all material
respects, in accordance with the GRI
Standards or additional criteria.
Inherent Limitations
Because of the inherent limitations
of a limited assurance engagement,
it is possible that fraud, error or non-
compliance may occur and not
be detected. A limited assurance
engagement is not designed to detect
all instances of non-compliance with the
GRI Standards or additional criteria as
it generally comprises making enquiries,
primarily of the responsible party, and
applying analytical and other review
procedures. The conclusion expressed
in this report has been formed on the
above basis.
A limited assurance engagement does
not provide assurance on whether
compliance with the GRI Standards
or additional criteria will continue in
the future.
Use of Report
Our assurance report is made solely
to the Directors of Meridian Energy
Limited in accordance with the terms of
our engagement. Our work has been
undertaken so that we might state to
the Directors those matters we have
been engaged to state in this assurance
report and for no other purpose. To
the fullest extent permitted by law, we
do not accept or assume responsibility
to anyone other than the Directors of
Meridian Energy Limited for our work,
for this assurance report, or for the
conclusions we have reached.
26 August 2025
Christchurch, New Zealand
This limited assurance report relates to the sustainability disclosures of Meridian Energy Limited and its subsidiaries (‘Meridian’ or the ‘Group’) , referenced within the GRI Standards content index on pages 130 to 135 (the ‘GRI
index’) of the Group’s Integrated Report for the year ended 30 June 2025 (the ‘Integrated Report’), and presented within either the Integrated Report or the FY25 Data Pack for the year ended 30 June 2025 that accompanies the
Integrated report (‘the IR data pack’)(collectively the ‘sustainability disclosures’). Meridian’s Board is responsible for the maintenance and integrity of the Group’s website. Deloitte Limited have not been engaged to report on the
integrity of the Group’s website. We accept no responsibility for any changes that may have occurred to the Integrated Report or IR data pack since they were initially presented on the website.
The limited assurance report refers only to the sustainability disclosures named above. It does not provide an opinion on any other information which may have been hyperlinked to/from the Integrated Report or the IR data pack.
If readers of this report are concerned with the inherent risks arising from electronic data communication, they should refer to the published hard copy of the Integrated Report, IR data pack and related limited assurance report
dated 26 August 2025 to confirm the information included in the Integrated Report and the IR data pack presented on this website or otherwise contact Meridian.
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GRI Standards content index
Meridian Energy Limited has reported in accordance with the GRI Standards for the
period 1 July 2024 to 30 June 2025. GRI 1: Foundation 2021 has been used.
References are to FY25 Integrated Report (AR), FY25 Data Pack – tab (DP – tab
reference), Climate-related Disclosures FY25 (CRD), Climate Action Plan FY25 (CAP),
Modern Slavery Statement FY25 (MSS), Corporate Governance Statement FY25 (CGS),
Board Charter (approved date April 2024) (BC), Code of Conduct 2025 (COC), Supplier
Code of Conduct (SCOC) (dated January 2024), Greenhouse Gas Emissions Inventory
Report FY25, Good Energy Programme Guidance (August 2024), Modern Slavery
Guidance (December 2023), Whistle Blowing Policy (approved date August 2023),
Constitution of Meridian Energy Limited (2019 update) (Constitution), Human Rights
Policy (approved date December 2024) Environment Policy (approved date May 2024),
Biodiversity & no net deforestation commitment (BNNDC) (approved date May 2025),
Remuneration Policy (approved May 2024), Remuneration Policy (approved May 2024).
Own measures – some disclosures are additional or alternatives to those covered in
the GRI Standards and have been self-determined by management.
See DP – Methods tab for the disclosure criteria for Own Measures. We have additional
ESG disclosures reported in the Integrated Report Data Pack which are not included in
our GRI content index (refer to DP – Other ESG Information tab).
GENERAL DISCLOSURESREFERENCECOMMENT
GRI 2: GENERAL DISCLOSURES 2021
2-1Organizational detailsAR front cover,
p.168
2-2Entities included in
the organization’s
sustainability reporting
AR p.3, 151
2-3Reporting period,
frequency and
contact point
AR p.3, 168
2-4Restatements of
information
Discussed where relevant
throughout the report
and data pack
2-5External assuranceAR p.3, 161-162
2-6Activities, value chain and
other business relationships
AR p.13, 66-67See also MSS p.4
2-7EmployeesDP - Our People
2-8Workers who are not
employees
DP - Our People
2-9Governance structure
and composition
AR p.63, 64,
68, 103, 105;
DP – Our People
See also CGS
Recommendation 2.5;
BC p.3–5; S&S Committee
Charter p.1
GENERAL DISCLOSURESREFERENCECOMMENT
2-10Nomination and selection
of the highest governance
body
AR p.63See also Constitution
p.14-16; BC p.3 and CGS
Recommendation 2.2,
3.4 (including Skills and
Experience matrix)
2-11Chair of the highest
governance body
AR p.5See also CGS
Recommendation 2.9
2-12Role of the highest
governance body
in overseeing the
management of impacts
AR p.68See also material impacts
page on our website
2-13Delegation of responsibility
for managing impacts
AR p.87,
90-91, 95
The Board delegates
responsibility for managing
impacts on people, the
planet and the economy
via our Delegation of
Authority Policy, which
applies to the Board, staff
of Meridian and subsidiaries
2-14Role of the highest
governance body in
sustainability reporting
AR p.63, 68
2-15Conflicts of interestAR p.62See also BC p.6; CGS
Additional Disclosures table
2-16Communication of
critical concerns
DP - Communities
163
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUGRI INDEX
GENERAL DISCLOSURESREFERENCECOMMENT
2-17Collective knowledge of the
highest governance body
AR p.63See also BC p.5
2-18Evaluation of the
performance of the highest
governance body
AR p.63, 100In accordance with
Meridian's Remuneration
Policy, the Meridian
Board considers directors’
remuneration on a
regular basis
See also CGS Principle 2.7,
5.1; BC p.5
2-19Remuneration policiesAR p.84
2-20Process to determine
remuneration
AR p.84
2-21Annual total compensation
ratio
AR p.98
2-22Statement on sustainable
development strategy
AR p.6-12
2-23Policy commitmentsAR p.57-60We use a range of methods,
including training, to
communicate our Group
commitments and policies
to Meridian, and our supply
chain and stakeholders. This
includes through Meridian's
COC and SCOC expectations,
as well as via guidance
documents, such as our
Good Energy Programme
Guidance (p.1–2)
Our Human Rights Policy
applies to Meridian and its
subsidiaries, all directors
and employees, Meridian's
supply chain, joint ventures
and business partners. See
Human Rights Policy; SCOC;
MSS p3, 7
2-24Embedding policy
commitments
ARp.37, 53-54,
57-59, 62, 75, 78
GENERAL DISCLOSURESREFERENCECOMMENT
2-25Processes to remediate
negative impacts
AR p.58See also Human Rights Policy;
CGS Principle 1.1;
MSS p.6
2-26Mechanisms for seeking
advice and raising concerns
AR p.58See also COC p.4; Whistle
Blowing Policy p.1–2
2-27Compliance with laws
and regulations
There have been no
significant instances of
non-compliance with laws
and regulations and we’ve
paid no fines during the
reporting period
2-28Membership associationsDP – Renewable
Energy
2-29Approach to stakeholder
engagement
AR p.68-69See throughout report
where relevant. We take a
purpose driven approach
2-30Collective bargaining
agreements
No staff are covered by
collective bargaining
agreements
164
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUGRI INDEX
GENERAL DISCLOSURESREFERENCECOMMENT
GRI 3: MATERIAL TOPICS 2021
3-1Process to determine
material topics
AR p.68-69
3 -2List of material topicsAR p.68
AFFORDABILITY
GRI 3: MATERIAL TOPICS 2021
3-3Management of
material topics
AR p.77-78
OWN MEASURES
Electricity usage and
carbon emissions for
existing customers on
Meridian’s Smart Hot
Water programme
DP - Customers;
DP - Methods
EMISSIONS AND WASTE
GRI 3: MATERIAL TOPICS 2021
3-3Management of
material topics
AR p.80
GRI 302: ENERGY 2016
302-1Energy consumption
within the organisation
DP - Climate
and Environment
302-4Reduction of energy
consumption
DP - Climate
and Environment
GRI 305: EMISSIONS 2016
305-1Direct (Scope 1) GHG
emissions
AR p.60; DP -
Climate and
Environment
305 -2Energy indirect (Scope 2)
GHG emissions
AR p.60; DP -
Climate and
Environment
305-3Other indirect (Scope 3)
GHG emissions
AR p.60; DP -
Climate and
Environment
305-4GHG emissions intensityDP - Climate
and Environment
305-5Reduction of GHG
emissions
DP - Climate
and Environment
GENERAL DISCLOSURESREFERENCECOMMENT
GRI 306: WASTE 2020
306-2Management of
significant waste-
related impacts
AR p.80; DP -
Climate and
Environment
306-3Waste generatedDP - Climate
and Environment
306-4Waste diverted
from disposal
DP - Climate
and Environment
306-5Waste directed
to disposal
DP - Climate
and Environment
CLIMATE-RELATED IMPACTS
GRI 3: MATERIAL TOPICS 2021
3-3Management of material
topics
AR p.71
GRI 201: ECONOMIC PERFORMANCE 2016
201-2Financial implications
and other risks and
opportunities due to
climate change
DP - Climate
and Environment
CUSTOMER DECARBONISATION
GRI 3: MATERIAL TOPICS 2021
3-3Management of
material topics
AR p.73
OWN MEASURES
Electricity usage and
carbon emissions for
existing customers on
Meridian’s Smart Hot
Water programme
DP - Customers;
DP - Methods
CYBER AND PHYSICAL SECURITY
GRI 3: MATERIAL TOPICS 2021
3-3Management of
material topics
AR p.75
OWN MEASURES
Number of reported
serious, major and critical
cyber security incidents
DP - Customers;
DP - Methods
165
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUGRI INDEX
GENERAL DISCLOSURESREFERENCECOMMENT
NGĀ TUKINGA O TE AO TŪROA – IMPACTS ON THE NATURAL WORLD
GRI 3: MATERIAL TOPICS 2021
3-3Management of
material topics
AR p.71-72, 76
GRI 303: WATER AND EFFLUENTS 2018
303-1Interactions with water
as a shared resource
AR p.7, 20, 27,
71-72, 76;
DP - Communities
303-3Water withdrawalDP - Climate
and Environment
303-4Water dischargeDP - Climate
and Environment
303-5Water consumptionDP - Climate
and Environment
GRI 304: BIODIVERSITY 2016
304-2Significant impacts of
activities, products and
services on biodiversity
AR p.7, 27, 57,
71-72, 76;
DP - Communities
Meridian’s operations do
not introduce any unlawful
contaminants to the water
systems. As hydro generation
impacts the water flow and
water levels of waterways,
there is an indirect impact on
the ability of the water body
to dilute the contaminants
from other sources (for
example, land-use runoff
and dairy effluent)
See also Environment
Policy and BNNDC
GENERAL DISCLOSURESREFERENCECOMMENT
PEOPLE
GRI 3: MATERIAL TOPICS 2021
3-3Management of material
topics
AR p.50, 53-54, 79
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
403 -2Hazard identification,
risk assessment, and
incident investigation
DP - Our People
403-3Occupational
health services
DP - Our People
403-4Worker participation,
consultation, and
communication on
occupational health
and safety
DP - Our People
403-5Worker training on
occupational health
and safety
DP - Our People
403-6Promotion of worker healthDP - Our People
403-8Workers covered by an
occupational health and
safety management system
DP - Our People
403-9Work-related injuriesAR p.54;
DP - Our People
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016
405-1Diversity of governance
bodies and employees
AR p.55;
DP - Our People
405-2Ratio of basic salary and
remuneration of women
to men
DP - Our People
GRI 406: NON-DISCRIMINATION 2016
406 -1Incidents of discrimination
and corrective actions
taken
There was one incident
of harassment during
the reporting period.
The incident is no longer
subject to action
166
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUGRI INDEX
GENERAL DISCLOSURESREFERENCECOMMENT
GRI 413: LOCAL COMMUNITIES 2016
413-1Operations with local
community engagement,
impact assessments, and
development programs
DP - Communities
OWN MEASURES
Percentage of positive
annual employee
wellbeing responses
DP - Our People;
DP - Methods
Number of community
fund grants and amount
awarded
DP - Communities;
DP - Methods
PUBLIC TRUST
GRI 3: MATERIAL TOPICS 2021
3-3Management of
material topics
AR p.74
GRI 2: GENERAL DISCLOSURES 2021
2-16Communication of
critical concerns
DP - Communities
GRI 204: PROCUREMENT PRACTICES 2016
204-1Proportion of spending
on local suppliers
DP - Communities
GRI 413: LOCAL COMMUNITIES 2016
413-1Operations with local
community engagement,
impact assessments, and
development programs
DP - Communities
GRI 414: SUPPLIER SOCIAL ASSESSMENT 2016
414-1New suppliers that
were screened using
social criteria
DP - Supply Chain
414 -2Negative social impacts
in the supply chain and
actions taken
DP - Supply Chain
GENERAL DISCLOSURESREFERENCECOMMENT
RENEWABLE ENERGY GENERATION
GRI 3: MATERIAL TOPICS 2021
3-3Management of
material topics
AR p.17-28, 70
G4 SECTOR DISCLOSURE - ELECTRICITY UTILITIES
EU1Installed capacity,
broken down by primary
energy source and by
regulatory regime
AR. p.23; DP –
Renewable Energy
EU2Net energy output
broken down by primary
energy source and by
regulatory regime
AR. p.23; DP –
Renewable Energy
EU10Planned capacity against
projected electricity
demand over the long
term, broken down
by energy source and
regulatory regime
AR. p.22, 24Pipeline projections are
estimations subject to
internal funding approval
and final design (which
includes resource consent
conditions). See also CAP p.2
EU30Average plant availability
factor by energy source
and by regulatory regime
DP – Renewable
Energy
167
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUGRI INDEX
Directory
Directors
Mark Verbiest, Chair
David Carter
Graham Cockroft
Michelle Henderson
Julia Hoare
Nagaja Sanatkumar
Tania Simpson
Executive Team
as at 1 July 2025
Mike Roan, Chief Executive
Rory Blundell,
General Manager, Strategy
and Portfolio
Lisa Hannifin,
Chief Customer Officer
Tania Palmer,
General Manager, Generation
Bharat Ratanpal,
Chief Information Officer
Helen Peters,
Acting Chief Financial Officer
Claire Shaw,
General Manager, Corporate Affairs
and Sustainability
Jason Stein,
Chief People Officer
Guy Waipara,
General Manager, Development
Jason Woolley,
General Counsel and Company
Secretary
Registered office
Level 2, 98 Customhouse Quay
Wellington 6011
New Zealand
T +64 4 381 1200
Share Registrar
New Zealand
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
Private Bag 92119
Victoria Street West
Auckland 1142
New Zealand
T +64 9 488 8777
enquiry@computershare.co.nz
investorcentre.com/nz
Share Registrar Australia
Computershare Investor Services
Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford
VIC 3037
Australia
GPO Box 3329
Melbourne VIC 3001
Australia
T 1800 501 366 (within Australia)
T +61 3 9415 4083 (outside Australia)
enquiry@computershare.co.nz
Auditors
Deloitte Limited
Auditor of the Group Financial
Statements on behalf of the Auditor-
General
Banker
Westpac Wellington
New Zealand
Customer enquiries
0800 496 496
hello@meridianenergy.co.nz
You can also find us on Facebook,
Instagram and LinkedIn.
Investor relation enquiries
Owen Hackston
investors@meridianenergy.co.nz
Sustainability enquiries
sustainability@meridianenergy.co.nz
168
MERIDIAN ENERGY INTEGRATED REPORT 2025
MENUDIRECTORY
---
7 cm
2025
Annual Results
Presentation
27 AUGUST 2025
Mike Roan –Chief Executive
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 2
The $448M Harapaki Wind Farm in Hawke’s Bay has been fully operational for a year, powering over 70,000 average homes.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 3
Key points
1
Earnings before interest, tax, depreciation, amortisation, unrealised changes in fair value of hedges and asset related adjustments.
1
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 4
Evolving our strategy
2.66
1.58
1.87
1.81
2.45
0
1
2
3
4
5
20212022202320242025
per 200k hours
Financial year ended 30 June
Total recordable injury frequency rate
Meridian employees & on-site contractors
Our people
Despite challenging operating conditions and intense
industry scrutiny, we continue to attract and retain engaged
staff.
Organisation change from implementing new retail
operating model and commencing our digital generation
capability programme (DigiGEN).
Major revamp of Wellbeing Strategy with a more holistic
approach promoting physical health, mental resilience,
thriving work environments.
Significant focus going into construction safety and more
maturity in our Learnings Team approach to wellbeing.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 5
73%73%
75%75%
73%
74%
50%
60%
70%
80%
90%
Nov-22May-23Nov-23May-24Nov-24May-25
Employee engagement
Source: Meridian
Source: Meridian
0
50
100
150
200
0
700
1,400
2,100
20202022202420262028203020322034203620382040
PJ
PJ
Gas reserves and production
Remaining reserves (2P)Gas production (RHS)
0
50
100
150
JulAugSeptOctNovDecJanFebMarAprMayJunJul
(FY26)
$M
Energy margin
FY25FY24
Seasonal and structural fuel
scarcity
Two 1 in 90 years seasonal droughts:
May 2024 to mid-August 2024, inflows 64% of average.
January to 2025 to April 2025, inflows 57% of average.
Financial impacts of lower physical generation exacerbated:
A significant hedge contract suspended during winter
2024.
Replaced by a high-priced, Methanex-backed contract.
Extensive smelter demand response calls.
Physical generation and energy margin have now reverted to
pre-drought levels.
Declining production and reserves mean gas can no longer
reliably meet periodic electricity industry firming.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 6
Source: Ministry of Business, Innovation and Employment
Source: Meridian
0
1,000
2,000
3,000
4,000
5,000
FY26FY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
GWh
Seasonal energy options
Huntly RankinesHuntly strategic reserve
Huntly E3PGas peakers
NZAS DRPūkaki contingent storage
Linear (Dry year energy needed)
Security of supply
2025 security of supply was underpinned by new, short-term
transactions with NZAS and Methanex.
Future security of supply and dry year risk can be managed
effectively through a combination of Huntly strategic energy
reserve, remaining gas plants and NZAS demand response.
Contingent storage will be key.
Operationalising Pūkaki contingent storage and enhancing
other hydro storage are needed, with the large NZAS
demand response options not available every year.
Meridian is accelerating renewable investment, targeting $2B
of capital spend in the next 3 years.
Including investment in capacity upgrade at the Waitaki
Hydro Station.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 7
Source: Meridian
Dry quarter energy needed
Modelled dry quarter energy needs and options
Renewable Development Pipeline
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 8
Sector reviews
The final report for the Government review of the electricity
sector has been completed by Frontier Economics.
Expected to be published alongside a Government response
by the end of September.
Electricity Authority and Commerce Commission Taskforce is
due to make in-principle decisions in August on next steps for
the proposed “Level Playing Field” measures.
Further updates or consultation to follow in September.
Our submission to the Taskforce noted:
Design changes to improve workability and avoid
significant costs to consumers.
Alternatives such as market making as a lower risk way
to increase the availability of shaped hedges.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 9
The $186M Ruakākā Battery Energy Storage System near Whangārei was completed in May 2025.
34,188
36,427
34,738
39,337
47,099
17,094
0
10,000
20,000
30,000
40,000
50,000
202120222023202420252030 target
tCO2e
Financial Year ended 30 June
Scope 3 GHG emissions
1,020
643
1,191
1,061
714
517
14
2
2
2
1
0
500
1,000
1,500
202120222023202420252030 target
tCO2e
Financial Year ended 30 June
Scope 1 & 2 GHG emissions
Emissions
Scope 1 reductions from light fleet electrification and SF6
mitigations.
Rising Scope 3 emissions from increased purchase of goods
and services and share of transmission & distribution losses.
Moved to an intensity-based Scope 3 emissions target,
linking supplier emissions to our growing generation
capacity.
Targeting a 51% Scope 3 emissions reduction from a 2021
baseline by 2030.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 10
Source: Meridian
Source: Meridian
Our customers
Successful transformation of our Retail business.
Launch of Smart Hot Water and Four Hours Free plans.
Renewable Energy Certificates and Energy Wellbeing
Programme delivering results.
388 chargers now installed in our Zero network.
Acquisition of Flick.
Selection of Kraken as retail technology partner. Will mean
dual retail system costs through FY26 implementation.
Record growth of 10% in customer connections.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 11
241
248
246
250
263
89
117
117
120
142
330
365
363
370
405
0
100
200
300
400
500
Jun-21Jun-22Jun-23Jun-24Jun-25
ICP (000)
Customer connections
MeridianPowershopTotal
+7%+7%
-1%+2%
+10%
YoY growth
Lion is partnering with Meridian and Reid Technology to install approximately 2,400 solar
panels at The Pride in East Auckland, providing 14% of the brewery’s electricity needs.
Helen Peters –Acting Chief Financial Officer
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 12
Meridian has secured an additional 45GWh of energy from the Manapōuri Power Scheme each year, enough to power around 6,000 homes.
Cash flows and EBITDAF
52% decrease in operating cash flows, lowest reported cash
flows since 2009.
23% decrease in energy margin.
32% decrease in EBITDAF.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 13
431
461
509
667
318
0
200
400
600
800
20212022202320242025
$M
Financial Year ended 30 June
Operating cash flows
692
709
783
905
611
0
200
400
600
800
1,000
20212022202320242025
$M
Financial Year ended 30 June
EBITDAF
Source: Meridian
Source: Meridian
Year ended 30 June 2025FY25
YoYYoY
FY25
YoYYoY
OperatingchangechangeEBITDAFchangechange
cash flows$M%$M%
$M
Receipts from customers4,983
Interest received5
Payments to suppliers and employees(4,388)
⎯⎯⎯⎯
+/-accruals
⎯⎯⎯⎯
611(294)-32%
+11
Interest paid(87)-7
Income tax paid(195)-35
Operating cash flows318-349
-52%
Energy margin
982(294)-23%
Other revenue
5216+44%
Hosting expense
(4)-+0%
Energy transmission expense
(78)(5)+7%
Energy metering expenses
(52)(3)+6%
Other operating expenses
(289)(8)+3%
Dividend
Final ordinary dividend declared of 14.85cps (unchanged
from FY24), 73% imputed.
Brings FY25 full year ordinary dividend declared to 21.00cps
(unchanged from FY24), 77% imputed.
Dividend reinvestment plan will apply to the final dividend at
2% discount.
$310M of debt headroom used to support FY25 dividends.
While rare, future severe droughts will occur. When they do,
dividend levels may be reviewed to give the Board flexibility
while maintaining existing credit rating.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 14
16.90
17.40
17.90
21.0021.00
0
5
10
15
20
25
20212022202320242025
cps
Financial Year ended 30 June
Ordinary dividends declared
Dividend Reinvestment Plan Dates
Ex dividend date4 SeptemberStrike price announced11 September
Record date5 SeptemberDividend paid/shares issued23 September
Elections close8 September
Source: Meridian
Operating free cash flow
$M2025202420232022
Operating cash flow318667509461
Stay in business capital expenditure(80)(72)(46)(40)
Operating free cash flow238595463421
Annual dividend declared548543462448
Annual dividend declared (cps)21.021.017.917.4
Payout ratio230%91%100%107%
Movement in EBITDAF
Lowest reported EBITDAF in 10 years.
Winter followed by summer drought conditions saw FY25
hydro generation more 1,000GWh lower than the 10-year
average.
Significant derivative purchases and demand response calls
were needed to manage these dry conditions.
The intervening spring was extremely wet and saw very low
wholesale prices.
Other revenue includes insurance and JV revenue, metering
services, retail EV and solar revenue.
Transmission expenses and distribution costs include three
months of new, higher-regulated costs.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 15
611
905
-294
+16
-5
0
-3
-8
400
600
800
1,000
EBITDAF
30 Jun 24
Energy marginOther revenueTransmission
expenses
Hosting
expenses
Metering
expenses
Operating
expenses
EBITDAF
30 Jun 25
$M
Movement in EBITDAF
982
1,276
+32
+36
+25
+18
+50
-6
-297
-152
-5
+5
750
1,000
1,250
1,500
Energy
margin
30 Jun 24
Mass
market
sales
C&I salesNZAS salesGeneration
spot
revenue
Cost to
supply
physical
sales
Derivative
sales
Derivative
purchases
Demand
response
payments
VASOtherEnergy
Margin
30 Jun 25
$M
Energy margin movement
Energy margin
Price growth in mass market, corporate and NZAS sales.
Higher generation spot prices helped offset an 11% decrease
in hydro generation volumes through repeated drought
conditions.
With a 26% increase in wind generation volumes from the
fully commissioned Harapaki Wind Farm.
Lower agricultural and NZAS sales volumes reduced physical
supply costs, despite the higher spot prices.
The dry conditions reduced derivative sales and resulted in
$300M of derivatives purchases and demand response costs.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 16
physical +$161M
financial -$460M
102
107
121
132
140
0
40
80
120
160
20212022202320242025
$/MWh
Financial Year ended 30 June
Retail netback
Retail sales
2% sales volume growth across mass market segments
(excluding agricultural), North Island weighted.
6% higher mass market net average sales price.
Mass market revenue increased $32M (4%).
Flat corporate sales volume at a 6% higher net average sales
price.
Corporate revenue increased $36M (7%).
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 17
Retail customer sales
Average
price
($/MWh)
Total sales
volume
(GWh)
North Island
sales volume
(GWh)
South Island
sales volume
(GWh)
FY25
Residential1,8141,007806
Small medium business1,6821,034648
Agricultural1,288416872
Large business717465252
Total mass market$150 5,5012,9222,579
Corporate$148 3,9211,9801,941
FY24
Residential1,799998801
Small medium business1,6691,024645
Agricultural1,4744111,063
Large business661427234
Total mass market$146 5,6032,8602,743
Corporate$139 3,9082,2221,686
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
20152016201720182019202020212022202320242025
GWh
Financial Year ended 30 June
Hydro generation
Hydro10 year average
Generation
98% of average inflows in FY25 masks periods of extreme
hydrology, record dry winter and summer, near record wet
spring.
With the storage management needed, that saw lowest
hydro generation since 2013.
Harapaki Wind Farm’s first year of full operation (August
2024 to July 2025) delivered 549GWh at a 35.5% capacity
factor, both above business case.
First non-operating Manapōuri transformer replaced and
two additional replacement transformers arriving in 2026.
Remaining five transformers will be replaced over the next
two and a half years.
Permanent replacement for a temporary West Wind
transformer landed in Wellington.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 18
0
500
1,000
1,500
2,000
2,500
1-Jul1-Aug1-Sep1-Oct1-Nov1-Dec1-Jan1-Feb1-Mar1-Apr1-May1-Jun
GWh
Meridian's Waitaki storage
FY25average
driest May to mid
August on record
2nd wettest
September to
November on record
driest January to
March on record
average April to
June inflows
Source: Meridian
Source: Meridian
Operating expenses
FY25 operating expenses $8M (3%) higher than FY24.
Below the bottom of the February 2025 revised guidance
range ($298M-$304M), largely due to lower incentive
payments.
Movement in FY25 operating costs from:
No senior short-term incentive.
Restructure cost savings.
Land access costs and Harapaki operating costs.
Contractors supporting retail transformation and
generation digitalisation.
Oracle implementation costs (ICT).
Lower travel costs (Other).
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 19
207
218
249
281
289
0
100
200
300
20212022202320242025
$M
Financial Year ended 30 June
Operating expenses
289
281
-11
+7
+8
+6
-2
250
260
270
280
290
300
FY24Staff costsMaintenance &
property
ContractorsICTOtherFY25
$M
Operating expenses movement
Source: Meridian
Source: Meridian
Capital expenditure
FY25 capital expenditure was $156M (45%) lower than FY24,
which included Harapaki milestone payments and the bulk of
Ruakākā BESS investment.
Below the bottom of the February 2025 revised guidance
range ($220M-$250M), largely due to Ruakākā solar consent
timeframe.
Retail costs include public charging and Kraken
implementation.
ICT costs include SCADA system replacement.
Asset maintenance costs include new transformers.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 20
64
135
300
277
113
38
40
46
72
80
102
175
346
349
193
0
100
200
300
400
20212022202320242025
$M
Financial Year ended 30 June
Capital expenditure
GrowthStay in businessTotal
22
51
13
8
17
2
5
4
26
45
0
10
20
30
40
50
60
HarapakiRuakākā
BESS
Ruakākā
solar
Development
projects
RetailWaitaki
upgrade
Development
projects
VehiclesICTAsset
maintenance
$M
FY25 capital expenditure
Growth $113MStay in business $80M
Source: Meridian
Source: Meridian
0
30
60
90
120
150
180
Ruakākā
solar
Development
projects
Waitaki
upgrade
Electric
vessel
RetailOtherDevelopmentVehicles,
workplace
ICTAsset
maintenance
$M
FY26 capital expenditure
Cost guidance
Operating expenses include:
Kraken implementation and dual billing platform costs.
NZ Windfarms and Flick integration.
Oracle implementation successfully completed in FY25.
Average staff incentives and further restructure savings.
Year two of DigiGEN.
Asset maintenance costs of new generation assets.
Growth capex includes Ruakākā solar completion and early-
stage construction on next consented projects.
And continuation of public charging rollout, Kraken
implementation and Waitaki Hydro Station upgrade.
SIB capex includes continuation of SCADA replacement, penstock
strengthening at Benmore and transformer replacement.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 21
growth $230M-$250Mstay in business $100M-$110M
289
+12
+6
-9
+7
+4
+4
+3
260
280
300
320
FY25 actualRetail billingNWF, Flick
integration
ICTStaff costsDigiGENRates &
insurance
Asset
maintenance
FY26 guidance
$M
FY26 operating cost guidance
316
to
311
Source: Meridian
Source: Meridian
FY26 Cost GuidanceFY25 Actual
GenerationFluxTotalGenerationFluxTotal
Operating Expenses$17M$311M-$316M$15M$289M
Stay in Business$100M-$110M$80M
Growth$230M-$250M$113M
Total Capital Expenditure$330M-$360M$193M
Total Cash Costs$160M-$165M$135M
Below EBITDAF
$671M decrease in NPBT
1
from the net unrealised change in
fair value of hedges
2
($98M increase in FY24). NZAS base
contract recognition change.
$33M Flux impairment, following selection of Kraken as retail
technology partner.
$22M increase in finance costs, higher interest, lower project
capitalised interest with Harapaki Wind Farm completed.
$113M increase in depreciation and amortisation from FY24
$3B increase in generation and plant valuation.
Resulted in an $881M decrease in NPAT
3
and $303M decrease
in underlying NPAT
4
.
$2B increase in generation and plant valuation in FY25.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 22
415
451
95
429
-452
-500
-250
0
250
500
20212022202320242025
$M
Financial Year ended 30 June
Net profit after tax (continuing operations)
231
233
315
359
56
0
100
200
300
400
20212022202320242025
$M
Financial Year ended 30 June
Underlying NPAT
1
Net profit before tax.
2
Net changes in the fair value of unrealised energy hedges and treasury hedges.
3
Net profit after tax.
4
Net profit after tax adjusted for the effects of changes in fair value of unrealised hedges, electricity
option premiums and other non-cash items and their tax effects.
A reconciliation of NPAT to Underlying NPAT is on page 48.
Source: Meridian
Source: Meridian
Debt and funding
June 2025 total borrowings of $1,569M.
Total funding facilities of $2,161M, of which $658M were
undrawn.
All facilities classified under Meridian’s Green Finance
Programme.
FY25 net debt of $1,505M, up 18% from FY24.
FY25 net debt to EBITDAF at 2.5 times (FY24: 1.4 times).
Consideration of up to a $300M issue of 6½ year,
unsubordinated, fixed rate green bonds has been
announced.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 23
160
405
0
383
300
256
250
243
0
100
200
300
400
500
600
700
CY26CY27CY28CY29CY30CY31+
$M
Financial Year ended 30 June
Debt maturity profile as at 30 June 2025
Drawn debt maturing (face value)Available facilities maturing
42%
0%
23%
27%
8%
Sources of funding as at 30 June 2025
NZ$ bank facilities drawn/undrawn
EKF - Danish export credit
Retail Bonds
US private placement
Commercial paper
Source: Meridian
Source: Meridian
0
500
1,000
1,500
2,000
2,500
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
Meridian's Waitaki storage
Average 1979-2019202020212022202320242025
July 2025 operating result
Earnings reversion continues with a strong July result.
Meridian inflows were 89% of average.
Waitaki hydro storage at 89% of average, snow storage at
76% of average at 31 July.
Meridian’s customer connection numbers increased 1.4%
during July 2025 and have increased 11.2% since July 2024.
Retail sales volumes in July 2025 were 9.4% higher than July
2024, across all customer segments.
Generation in July 2025 was 9.6% higher than July 2024.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 24
Source: Meridian
Source: Meridian
0
200
400
600
800
1,000
1,200
1,400
2011201220132014201520162017201820192020202120222023202420252026
GWh
Financial
year
Combined catchment inflows for July
Jul YTD93 year average
Mike Roan –Chief Executive
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 25
Impression of Meridian’s $227M Ruakākā Solar Farm near Whangārei, which will produce enough electricity to power half the homes in Northland when it is completed in early 2027.
Closing comments
FY25 was a perfect storm of record droughts and the extent of
New Zealand’s gas decline.
Balance sheet strength has underwritten that with an
unchanged dividend.
Meaningful progress on our strategy with reset of the Retail
business, increased asset capacity, five consents secured, and
two businesses acquired.
While the sector is resolving the security of supply risk from gas
unavailability, Pūkaki contingent storage is needed.
Potential regulatory reforms should be in consumers’ interests.
3.4 metres more water in the Lake Pūkaki and 11% more
customer connections than a year ago.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 26
Upcoming
13-15 OctoberGovernance roadshow
21 OctoberAnnual Shareholder Meeting
22-23 OctoberNew CFO and GM Strategy & Portfolio meetings
19-20 NovemberInvestor day
Meridian’s Ōhau A Hydro Station in the Mackenzie Basin, South Canterbury.
Questions
27 AUGUST 2025
Additional
information
27 AUGUST 2025
FY26 focus
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 29
Grow renewable generation and firming capacity
Key initiativesFY26 targets
Accelerate Aotearoa NZ’s decarbonisation by delivering
scale energy projects at pace
•Build renewable generation options
•Deliver on our 7 in 7
•Secure long-term access to water
Begin construction of 3 new generation developments (incl Ruakākā solar).
Consents: gain two and lodge two (more).
Waitaki re-consent hearing completed and strategy developed for Manapōuri re-consenting.
Identify and develop hydro storage options.
Grow system flexibility
•Grow our dispatchable MW capacity
•Grow hydro storage and our demand response portfolio
Improve access to contingent storage –secure access to 3m of continent storage at Lake Pūkaki.
Work with the Guardians to improve hydro storage in the Waiau.
Obtain approval from Transpower to operate Manapōuri units at 128/131.5MW.
Deliver FID for Waitaki Upgrade Project.
15MW of additional peaking capacity delivered (flex and new capacity).
Deliver cleaner, cheaper energy
Key initiativesFY26 targets
Create more value for customers
•Develop digital capability and innovation to optimise
operations, achieve scale and grow customer relationships
•Expand the energy product set to unlock the value of transport
electrification, process heat and demand flex
Full Next Gen digital platform operational and delivering value (front end, integration and data model) with 100% of customers
migrated onto the platform.
30k mass market customers on cost effective Flex products.
80 new high-capacity chargers installed.
422k valuable ICPs (+27k).
Retail FTE ≤268.
Increase community good
•Continue the investment in energy hardship and community
programmes to promote equitable access to the benefits of the
energy transition
Support 1k customers in energy hardship.
Increase community decarb distributions by $0.8m
Advocate for policy settings to promote climate action and
support New Zealanders through the energy transition
Advocate optimal energy market structures, reform and policy with interventions that are in the best interests of consumers and
Meridian (mutually inclusive) and aligns with national interests; specifically relating to:
•Industry agreement in 2025-26 on dry-year risk options for the near-term future.
•Resource Management Act reforms (and streamlined consenting processes).
•The Competition Task Force, Ministerial Review and other regulatory initiatives that are reasonable and provide clear consensus
on the role of Government, the regulator and the sector in the Energy transition.
FY26 focus
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 30
Deliver operational excellence
Key initiativesFY26 targets
Build operational flex and agility while sustaining excellent
asset productivity
Develop and deliver a digitisation strategy, value framework and roadmap, which includes data driven asset management and
preventative maintenance practices.
Updated maintenance practices reducing annual routine outage days by >100 days (from a baseline of 1,382 days).
Improve asset health through delivering high priority projects.
Implement modern data and digital systems to promote
collaboration, operational efficiency, innovation and data-
driven decisions
Identify and commence initiatives to deliver the Enterprise Data strategy (including a value framework).
Enable self-service access and apply machine learning to Portfolio, Asset Performance, and Maintenance datasets to support
DigiGEN and Wholesale Modernisation.
Agentic Al integrated into daily workflow to automate business processes and Al enabled for existing applications.
Improve security maturity to achieve a 3.0 or above NIST maturity score and achieve 100% of AESCS compliance.
Project Alpha implementation key milestones achieved.
Improve and ensure security of supply settings across the industry including securing the future of Huntly's Rankine units.
Deliver BESS revenue (in line with business case expectations).
Grow culture and capability
Key initiativesFY26 targets
Grow a diverse and inclusive, skilled workforce that reflects
the country we live in
50% women at Meridian, 29% women in senior roles, 6% Māori representation.
Employee engagement in top 25% of NZ orgs (500-1000 employees); trending up.
Nurture leadership capability to support the cultural and
digital maturity of a future Meridian
Establish a measurement/growth framework for leadership capability, to include customer-focused culture, performance-driven
approach.
Develop our understanding of the Māori world view to help
build long-term relationships with tangata whenua
Growing competence in Te Ao Māori yields tangible outcomes in business actions.
Grow safety leadership maturity as we build into the energy
transition
A Critical Risk Framework that includes a maturity roadmap, 10% reduction in ‘high risk potential’ safety events.
Training and capability targets are met, increased positive safety sentiment from annual PluggedIn Engagement Survey.
5% increase in Learning Teams and 20% increase in safety observations across sites and offices.
Identify independent benchmarks with a target of being in the top 5% of NZ businesses from a safety and wellness perspective.
Foster sustainability culture and leadership that benefits
people and planet, inspires climate action and attracts
investors
Inclusion within Dow Jones Best-in Class ESG index (World Index).
Business emission reduction plan initiatives delivered.
Nature-based baseline completed and next steps agreed.
Segment results
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 31
$MWholesaleRetailOther & unallocatedInter-segmentTotal
Financial year ended 30 June2025202420252024202520242025202420252024
Contracted sales6726331,4311,363----2,1031,996
Cost to supply customers(3,669)(3,487)(1,357)(1,326)--1,5101,507(3,516)(3,306)
Net cost of hedging76285------76285
Generation spot revenue2,3372,319------2,3372,319
Inter-segment electricity sales1,5101,507----(1,510)(1,507)--
Virtual asset swap margins(14)(9)------(14)(9)
Other market revenue/(costs)(5)(9)1-----(4)(9)
Energy margin9071,2397537----9821,276
Other revenue 5422183423(9)(9)5236
Hosting expense----(4)(4)--(4)(4)
Energy transmission expense(78)(73)------(78)(73)
Energy metering expenses--(52)(49)----(52)(49)
Gross margin8341,1704563019(9)(9)9001,186
Employee expenses(33)(31)(37)(38)(54)(65)--(124)(134)
Other operating expenses(79)(67)(42)(40)(52)(48)88(165)(147)
Operating expenses(112)(98)(79)(78)(106)(113)88(289)(281)
EBITDAF7221,072(34)(72)(76)(94)(1)(1)611905
EBITDAF reconciliation to the income statement
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 32
Financial year ended 30 June2025202420252024
Income statement ($M)Segment earnings statement ($M)
Energy sales to customers2,4292,487
Energy margin9821,276
Generation revenue2,3542,333
Other revenue 5236
Energy related services revenue1111
Hosting expenses(4)(4)
Other revenue4125
Energy transmission expense(78)(73)
Total operating revenue4,8354,856
Energy metering expenses(52)(49)
Gross margin9001,186
Energy expenses(2,396)(2,956)
Employee expenses(124)(134)
Energy distribution expenses(817)(739)
Other operating expenses(165)(147)
Energy transmission expenses(78)(73)
EBITDAF611905
Hosting expenses(52)(4)
Electricity metering expenses(4)(134)
Employee expenses(124)(49)
Other expenses(165)(147)
Total operating expenses(3,636)(4,102)
Depreciation and amortisation(447)(334)
Asset related adjustments(33)(18)
realised energy hedges(588)151
unrealised energy hedges(659)102
Net change in fair value of energy hedges(1,247)253
Net finance costs(79)(57)
Net change in fair value of treasury hedges(12)(4)
Net profit before tax(619)594
Income tax expense167(165)
Net profit after tax(452)429
Six monthly results
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 33
$M1H2HTotal
20252024change20252024change20252024change
Contracted sales995966291,1081,030782,1031,996107
Cost to supply customers(1,565)(1,265)(300)(1,951)(2,041)90(3,516)(3,306)(210)
Net cost of hedging(15)51(66)91234(143)76285(209)
Generation spot revenue1,0428851571,2951,434(139)2,3372,31918
Virtual asset swap margins(9)(3)(6)(5)(6)1(14)(9)(5)
Other market revenue/(costs)(4)(5)1-(4)4(4)(9)5
Energy margin444629(185)538647(109)9821,276(294)
Other revenue 26161026206523616
Hosting expenses(2)(2)-(2)(2)-(4)(4)-
Energy transmission expense(37)(36)(1)(41)(37)(4)(78)(73)(5)
Energy metering expenses(26)(25)(1)(26)(24)(2)(52)(49)(3)
Gross margin405582(177)495604(109)9001,186(286)
Employee expenses(68)(66)(2)(56)(68)12(124)(134)10
Other operating expenses(80)(73)(7)(85)(74)(11)(165)(147)(18)
Operating expenses(148)(139)(9)(141)(142)1(289)(281)(8)
EBITDAF257443(186)354462(108)611905(294)
Depreciation & amortisation(225)(164)(61)(222)(170)(52)(447)(334)(113)
Asset related adjustments(8)11(19)(30)(29)(1)(33)(18)(15)
Net change in fair value of energy hedges(143)11(154)(516)91(607)(659)102(761)
Net finance costs(38)(25)(13)(41)(32)(9)(79)(57)(22)
Net change in fair value of treasury hedges(11)(13)2(1)9(10)(12)(4)(8)
Net profit before tax(168)263(431)(451)331(782)(619)594(1,213)
Income tax expenses47(72)119120(93)213167(165)332
Net profit after tax (121)191(312)(331)238(569)(452)429(881)
Underlying net profit after tax(5)175(180)61140(79)56315(259)
Earnings from continuing operations
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 34
NZ Operations
Financial year ended 30 June20252024202320222021
$M
Contracted sales2,1031,9961,7381,5821,433
Cost to supply customers(3,516)(3,306)(1,490)(2,463)(2,896)
Net cost of hedging76285(121)148271
Generation spot revenue2,3372,3191,0201,7572,193
Virtual asset swap margins(14)(9)(7)2(3)
Other market revenue/(costs)(4)(9)(8)(4)(4)
Energy margin9821,2761,1321,022994
Other revenue 5236292727
Hosting expenses(4)(4)(3)(2)(1)
Energy transmission expense(78)(73)(80)(79)(82)
Energy metering expense(52)(49)(46)(43)(39)
Gross margin9001,1861,032925899
Employee expenses(124)(134)(119)(100)(97)
Other operating expenses(165)(147)(130)(116)(110)
Operating expenses(289)(281)(249)(216)(207)
EBITDAF611905783709692
241
248
246
250
263
89
117
117
120
142
330
365
363
370
405
0
100
200
300
400
500
Jun-21Jun-22Jun-23Jun-24Jun-25
ICP (000)
Customer connections
MeridianPowershopTotal
Retail
10% increase in customer connections since June 2024.
Mass market segment
1% increase in residential volumes.
1% increase in small medium business volumes.
9% increase in large business volumes.
13% decrease in agricultural volumes.
6% increase in net average sales price.
Corporate Segment
0.3% increase in volumes.
6% increase in net average sales price.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 35
4,819
5,012
5,258
5,603
5,501
3,586
3,929
3,917
3,908
3,921
8,405
8,941
9,175
9,511
9,422
0
2,000
4,000
6,000
8,000
10,000
12,000
20212022202320242025
GWh
Financial Year ended 30 June
Retail sales volumes
Residential, SMB, AgriCorporateTotal
Source: Meridian
Source: Meridian
Hydrology
Inflows
FY25 inflows were 98% of historical average.
July 2025 inflows were 89% of historical average.
Storage
Meridian’s Waitaki storage as at 30 June 2025 was 87% of
historical average.
By 31 July 2025, Waitaki storage was 89% of historical
average.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 36
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
201120122013201420152016201720182019202020212022202320242025
GWh
Financial Year ended 30 June
Combined catchment inflows
Jun YTD92 year average
0
500
1,000
1,500
2,000
2,500
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
Meridian's Waitaki storage
Average 1979-2019202020212022202320242025
Source: Meridian
Source: Meridian
Generation
Volumes
FY25 generation was 6.0% lower than FY24, with lower hydro
generation and higher wind generation.
Price
FY25 average price Meridian received for its generation was
7% higher than FY24.
FY25 average price paid to supply customers was 17%
higherthan FY24.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 37
11,297
12,271
12,701
12,125
10,943
1,395
1,285
1,202
1,441
1,809
12,692
13,556
13,903
13,566
12,752
0
4,000
8,000
12,000
16,000
20212022202320242025
GWh
Financial Year ended 30 June
Generation volumes
HydroWindTotal
173
130
73
171
184
0
50
100
150
200
20212022202320242025
$/MWh
Financial Year ended 30 June
Average generation price
Source: Meridian
Source: Meridian
EBITDAF to NPAT
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 38
*Net changes in the fair value of unrealised energy hedges and treasury hedges.
Financial year ended 30 June20252024
EBITDAF611905
Depreciation and amortisation-447-334
Premiums paid on electricity options net of interest-12-23
Net finance costs-79-57
Tax-17-132
Underlying NPAT56359
Net change in fair value of hedges*-67198
Asset related adjustments-33-18
Premiums paid on electricity options net of interest1223
Tax184-33
NPAT-452429
Energy margin
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 39
982
852
579
672
2,337
-2,825
-691
-908
1,019
-35
-14
-4
0
1,000
2,000
3,000
4,000
5,000
Mass
market sales
C&I salesFinancial
contract
sales (incl
NZAS)
Generation
spot
revenue
Cost to
supply
customers
Cost to
supply
financial
contracts
Hedging
fixed costs
Hedging
spot
revenue
Contract
close outs
VAS
margins
Market costsEnergy
Margin
$M
Energy margin
Source: Meridian
982
1,276
+32
+36
+39
+18
-102
-108
-142
-20
-47
-5
+5
500
700
900
1,100
1,300
1,500
Energy
Margin 30
Jun 24
Mass
market sales
C&I salesFinancial
contract
sales (incl
NZAS)
Generation
spot
revenue
Cost to
supply
customers
Cost to
supply
financial
contracts
Hedging
fixed costs
Hedging
spot
revenue
Contract
close outs
VAS
margins
Market costsEnergy
Margin 30
Jun 25
$M
Energy margin movement
Energy margin movement
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 40
Source: Meridian
Energy margin
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 41
Defined as:
Revenues received from sales to customers net of
distribution costs (fees to distribution network companies
that cover the costs of distribution of electricity to
customers), sales to large industrial customers and fixed
price revenues from financial contracts sold (contract sales
revenue).
The volume of electricity purchased to cover contracted
customer sales and financial contracts sold (cost to supply
customers).
The fixed cost of derivatives used to manage market risks,
net of spot revenue received from those derivatives, and
demand response payments (net cost of hedging).
Revenue from the volume of electricity that Meridian
generates (generation spot revenue).
The net margin position of virtual asset swaps with Genesis
Energy and Mercury New Zealand.
Other associated market revenues and costs including
Electricity Authority levies and ancillary generation
revenues, such as frequency keeping.
A non-GAAP financial measure representing energy sales
revenue less energy related expenses and energy
distribution expenses.
Used to measure the vertically integrated performance of
the retail and wholesale businesses.
Used in place of statutory reporting which requires gross
sales and costs to be reported separately, therefore not
accounting for the variability of the wholesale spot market
and the broadly offsetting impact of wholesale prices on
the cost of retail electricity purchases.
Energy margin
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 42
FY25FY24
FY23FY22FY21
VolumeVWAP$MVolumeVWAP$M$M$M$M
Res, business, agri sales5,501$1558525,603$146820714635592
Corporate and industrial sales3,921$1485793,908$139543492422352
Retail contracted sales9,422$1521,4319,511$1431,3631,2061,057944
NZAS sales3,1195,002
Financial contract sales3,3393,417
Wholesale contracted sales6,457$1046728,419$75633530525489
Cost to supply retail customers9,898-$206(2,037)10,050-$186(1,870)(858)(1,407)(1,704)
Cost to supply wholesale customers3,119-$204(636)5,002-$171(854)(385)(665)(869)
Demand response payments(152)----
Cost of financial contracts3,339-$207(691)3,417-$171(583)(247)(392)(323)
Battery supply costs5-$245(1)------
Cost to supply customers and contracts(3,516)(3,306)(1,490)(2,464)(2,896)
Hedging costs4,940-$184(908)5,782-$132(766)(586)(515)(421)
Hedging spot revenue4,940$2061,0195,782$1801,039419654706
Close-outs(35)12469(14)
Net cost of hedging76285(121)148271
Hydro generation10,943$1872,04212,125$1722,0899361,5991,971
Wind generation1,809$1632951,441$16023084158222
Battery generation2$2781------
Generation revenue12,754$1832,33713,566$1712,3191,0201,7572,193
Virtual asset swap margins0(14)0(9)(7)2(3)
Other(4)(9)(6)(3)(4)
Energy margin9821,2761,1321,022994
NZAS demand response agreement options
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 43
Option
Equivalent
reduced
consumption
(MWh per
hour)
ExercisableReduction
from Meridian
demand response
agreement (MWh per
hour)
Usual
Ramp-
Down
Notice
Period
DR Period
(equivalent
number of days)
Usual Ramp-
Down Period
(equivalent
numberof days)
Usual Ramp-Up
Notice Period
(equivalent
number ofdays)
Usual Ramp-Up
Period
(equivalent
number ofdays)
Maximum Calls
12518.75
3
Business
Days
Minimum
10 days,
maximum
150days
5 days3 days15 days
Unlimited, but the
Option cannotbe
exercised more than 4
times inany 12-month
period
250
37.5
3
Business
Days
Minimum
15days,
maximum
145 days
10 days3 days30 days
Unlimited, but the
Option cannotbe
exercised more than 2
times inany 18-month
period
3
100
75
3
Business
Days
Minimum
22days,
Maximum
137days
18 days5 days100 days
The Option cannot be
exercisedmore than 8
times over the Term
4185
138.75
5
Business
Days
Minimum
30days,
maximum
75 days
25 days5 days200 days
The Option cannot be
exercisedmore than 4
times over the Term
Stand down periods
If previous call was Option 1, 30 days for any Option.
If previous call was Option 2, 50 days for any Option.
If previous call was Option 3, 60 days for Options 1 &2, 270 days for Options 3&4.
If previous call was Option 4, 60 days for Option 1, 90 days for Option 2, 365 days for Option 3&4.
Funding metrics
Net debt to EBITDAF is the principal metric underpinning S&P credit rating.
S&P calculation of Net debt to EBITDAF includes an adjustment for restricted cash.
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 44
Net debt to EBITDAF
Financial year ended 30 June20252024202320222021
$M
Drawn borrowings1,5311,3611,2481,1671,686
Less: cash and cash equivalents(123)(221)(212)(363)(148)
Add back: restricted cash971341964397
Net debt1,5051,2741,2328471,635
EBITDAF611905783709692
Net debt to EBITDAF (times)2.51.41.61.22.4
Fair value movements
Meridian uses derivative instruments to manage interest rate,
foreign exchange and electricity price risk.
As forward prices and rates on these instruments move, non-
cash changes to their carrying value are reflected in NPAT.
Accounting standards only allow hedge accounting if specific
conditions are met, which creates NPAT volatility.
$1,247M decrease in NPBT from fair value of energy hedges
($253M increase in FY24).
$12M decrease in NPBT from fair value of treasury hedges
($4M decrease in FY24).
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 45
236
402
-351
249
-1,259
-1,600
-1,200
-800
-400
0
400
800
20212022202320242025
$M
Financial Year ended 30 June
Net change in fair value of hedges
Source: Meridian
Proforma income statement
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 46
Financial year ended 30 June 2021 restated for change in presentation of realised energy hedges.
Proforma income statement
Financial year ended 30 June20252024202320222021
reportedreportedreportedreportedpro forma
$M
Operating revenue4,8354,8563,2223,7764,115
Operating expenses(3,636)(4,102)(2,397)(3,188)(3,634)
Depreciation and amortisation(447)(334)(294)(293)(271)
Asset related adjustments(33)(18)(10)(2)-
Net change in fair value of energy hedges(1,247)253(375)266368
Interest expense(84)(69)(55)(73)(81)
Interest income512113-
Net change in fair value of treasury hedges(12)(4)2413679
Net profit before tax(619)594126625576
Income tax expense167(165)(31)(174)(161)
Net profit after tax from continuing operations(452)42995451415
Net profit after tax from discontinued operations---21313
Net profit after tax(452)42995664428
Segment earnings statement
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 47
Segment earnings statement
Financial year ended 30 June20252024202320222021
$M
Energy margin9821,2761,1321,022994
Other revenue5236292727
Hosting expense(4)(4)(3)(2)-
Energy transmission expense(78)(73)(80)(79)(82)
Energy metering expense(52)(49)(46)(43)(39)
Employee and other operating expenses(289)(281)(249)(216)(208)
EBITDAF611905783709692
Depreciation and amortisation(447)(334)(294)(293)(271)
Asset related adjustments(33)(18)(10)(2)-
Net change in fair value of energy hedges(659)102(333)145157
Net finance costs(79)(57)(44)(70)(81)
Net change in fair value of treasury hedges(12)(4)2413679
Net profit before tax(619)594126625576
Income tax expense167(165)(31)(174)(161)
Net profit after tax from continuing operations(452)42995451415
Net profit after tax from discontinued operations---21313
Net profit after tax(452)42995664428
Underlying NPAT reconciliation
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 48
UNPAT
Financial year ended 30 June20252024202320222021
$M
Net profit after tax(452)42995664428
Underlying adjustments
Hedging instruments
Net unrealised change in fair value of energy hedges659(102)333(145)(157)
Net change in fair value of treasury hedges(12)4(24)(136)(79)
Premiums paid on electricity options net of interest12(23)(17)(20)(20)
Assets
Asset related adjustments3318102-
Total adjustments before tax692(103)302(512)(269)
Taxation
Tax effect of above adjustments(184)33(82)8172
Underlying net profit after tax56359315233231
Cash flow statement
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 49
Cash flow statement
Financial year ended 30 June20252024202320222021
$M
Receipts from customers4,9834,6143,3543,9344,164
Interest received512112-
Payments to suppliers and employees(4,388)(3,719)(2,637)(3,254)(3,472)
Interest paid(87)(80)(65)(76)(82)
Income tax paid(195)(160)(154)(145)(179)
Operating cash flows318667509461431
Sale of property, plant and equipment--22-
Sales of subsidiaries and other assets-8-768-
Purchase of property, plant and equipment(143)(281)(316)(141)(76)
Purchase of intangible assets and other assets(48)(54)(13)(31)(38)
Investing cash flows(191)(327)(327)598(114)
Borrowings drawn531467255210108
Borrowings repaid(363)(360)(163)(692)(17)
Shares purchased for long-term incentive(6)(2)(2)(2)(3)
Dividends paid(387)(436)(423)(360)(433)
Financing cash flows(225)(331)(333)(844)(345)
Net increase/(decrease in cash and cash equivalents)(98)9(151)215(28)
Balance sheet
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 50
Balance sheet
Financial year ended 30 June20252024202320222021
$M
Cash and cash equivalents123221212363148
Trade receivables406536334399491
Financial instruments6523386213192
Other current assets8661606686
Total current assets6801,0516921,041917
Property, plant and equipment14,03212,1928,9897,8308,598
Intangible assets4762738584
Financial instruments183224186413214
Other non-current assets3214--43
Total non-current assets14,29412,4929,2488,3288,939
Payables and accruals401565313467602
Borrowings369234214159378
Other current liabilities26520513896130
Total current liabilities1,0351,0046657221,110
Borrowings1,2001,1131,0221,0041,298
Deferred tax3,2682,9492,1031,9321,940
Other non-current liabilities551231163188284
Total non-current liabilities5,0194,2933,2883,1243,522
Net assets8,9208,2465,9875,5235,224
Shareholders equity
Share capital1,8841,7291,7001,6711,595
Reserves7,0366,5174,2873,8523,629
Total shareholders equity8,9208,2465,9875,5235,224
Glossary
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 51
Hedging volumesbuy-side electricity derivativesexcludingthe buy-side of virtual asset swaps
Average generation pricethe volume weighted average price received for Meridian’s physical generation
Average retail contracted sales pricevolume weighted average electricity price received from retail customers, less distribution costs
Average wholesale contracted sales pricevolume weighted average electricity price received from wholesale customers(including NZAS) and financial contracts
Combined catchment inflowscombined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes
Cost of hedgesvolume weighted average price Meridian pays for derivatives acquired
Cost to supply contracted salesvolume weighted average price Meridian pays to supply contracted customer sales and financial contracts
Contracts for Difference (CFDs)an agreement betweenparties to pay the difference between the wholesale electricity price and an agreed fixed price for a
specified volume of electricity. CFDs do not result in the physical supply of electricity
Customer connectionsnumber of installation control points, excluding vacants
GWhgigawatt hour. Enough electricity for 125 average New Zealand households for one year
Historic average inflowsthe historic average combined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes over the last 84 years
Historic average storagethe historic average level of storage in Meridian’s Waitaki catchment since 1979
HVDChigh voltage direct current link between the North and South Islands of New Zealand
ICPNew Zealand installation control points, excluding vacants
ICP switchingthe number of installation control points changing retailer supplier in New Zealand, recorded in the month the switch was initiated
MWhmegawatt hour. Enough electricity for one average New Zealand household for 46 days
NationaldemandElectricity Authority’s reconciled grid demand www.emi.ea.govt.nz
NZASNew Zealand’s Aluminium SmelterLimited
Retail sales volumescontract sales volumes to retail customers, including both non half hourly and half hourly metered customers
Financial contract salessell-side electricity derivatives excluding thesell-side of virtual asset swaps
Virtual Asset Swaps(VAS)CFDs Meridian has with Genesis Energy and Mercury New Zealand. They do not result in the physical supply of electricity
Disclaimer
27 AUGUST 20252025 ANNUAL RESULTS PRESENTATION
PAGE 52
The information in this presentation was prepared by Meridian Energy
with due care and attention. However, the information is supplied in
summary form and is therefore not necessarily complete, and no
representation is made as to the accuracy, completeness or reliability of
the information. In addition, neither the company nor any of its directors,
employees, shareholders nor any other person shall have liability
whatsoever to any person for any loss (including, without limitation,
arising from any fault or negligence) arising from this presentation or any
information supplied in connection with it.
This presentation may contain forward-looking statements and
projections. These reflect Meridian’s current expectations, based on what
it thinks are reasonable assumptions. Meridian gives no warranty or
representation as to its future financial performance or any future
matter. Except as required by law or NZX or ASX listing rules, Meridian is
not obliged to update this presentation after its release, even if things
change materially.
This presentation does not constitute financial advice. Further, this
presentation is not and should not be construed as an offer to sell or a
solicitation of an offer to buy Meridian Energy securities and may not be
relied upon in connection with any purchase of Meridian Energy
securities.
This presentation contains a number of non-GAAP financial measures,
including Energy Margin, EBITDAF, Underlying NPAT and gearing.
Because they are not defined by GAAP or IFRS, Meridian's calculation of
these measures may differ from similarly titled measures presented by
other companies and they should not be considered in isolation from, or
construed as an alternative to, other financial measures determined in
accordance with GAAP. Although Meridian believes they provide useful
information in measuring the financial performance and condition of
Meridian's business, readers are cautioned not to place undue reliance
on these non-GAAP financial measures.
The information contained in this presentation should be considered in
conjunction with the company’s financial statements, which are included
in Meridian’s integrated report for the year ended 30 June 2025,
available at:
www.meridianenergy.co.nz/about-us/investors
All currency amounts are in New Zealand dollars unless stated otherwise.
---
MERIDIAN ENERGY LIMITED
INVESTOR LETTER FOR THE YEAR ENDING 30 JUNE 2025
Navigating
the challenges
Dear Investor
Tēnā koutou
This year we weathered a perfect
storm. The combination of historically
low hydro inflows, periods of low
wind, two major droughts and a
dramatic decline in gas availability
made this a very challenging financial
year. At the same time, we worked
hard to strengthen the fundamentals
of the business through sound
investment for growth and
delivering on our strategy.
We secured five resource consents
for new assets, invested $193
million in building and maintaining
generation plant, acquired two
businesses and undertook a strategic
reset of our retail business while
growing customer connections.
For us, FY25 will be defined by
Meridian putting New Zealand’s
security of supply first, keeping
power flowing for homes and
businesses, and the financial hit we
took because of that. Our balance
sheet is structured to underwrite
major droughts, and that is one of
the ways New Zealand benefits from
having large and financially strong
gentailers supporting the economy.
Looking ahead, Meridian and the
sector have taken steps to support
electricity security by moving away
from reliance on gas as a peaking
fuel. The Strategic Energy Reserve
alongside additional use of this
country’s hydro capacity are actions
that will help make New Zealand’s
electricity system more resilient and
affordable. An affordable, secure
and highly renewable grid will
enable future economic prosperity
- allowing the country to take the
opportunity to create and market
green products internationally.
Tackling energy security
The loss of reasonably priced gas in
August 2024 pushed up wholesale
prices, creating risk for the overall
energy sector which has relied
primarily on gas for flexibility and
support. This timing was particularly
challenging as the electricity
sector also experienced two
prolonged droughts.
These issues combined to generate
intense scrutiny of the industry
and potential reforms through the
Energy Competition Task Force and
the Government’s Frontier Report.
It cost an extraordinary amount,
but Meridian played a lead role in
stabilising the electricity system
by underwriting agreements with
Methanex, making gas available
for electricity security of supply.
We also worked with the Tīwai
Point aluminium smelter to utilise
its demand flexibility and we
are seeking improved access to
‘contingent’ hydro storage and
lifting generation capacity across
our fleet. While the vast majority of
our customers were not affected by
these significant events, energy costs
are rising, including increases in gas
pricing and electricity transmission
and distribution costs.
We are focused on restoring long
term confidence in energy security
and improving affordability.
DIVIDEND DATES
5 September 2025
Record date
4–10 September 2025
Dividend Reinvestment
Plan price determination
period
23 September 2025
Dividend paid and
new shares issued
under the Dividend
Reinvestment Plan
Despite it being a very challenging year financially, we’ve
had some important wins and made meaningful progress.
MARK VERBIEST, CHAIR
MIKE ROAN, INCOMING CHIEF EXECUTIVE.
1
INVESTOR LETTER 2025
MERIDIAN ENERGY INTEGRATED REPORT 2025
A group of large electricity suppliers,
including Meridian, have signed an
agreement (subject to Commerce
Commission review), that will
improve the operational resilience
of the Genesis owned Huntly power
station and provide increased
generation capacity along with the
necessary fuel. Maintaining a secure
electricity supply is what we must
do as we find ways to use more
hydro generation and accelerate
the deployment of new renewable
projects to displace the use of coal
in the electricity market.
That will help New Zealand
navigate the transition to an
electrified future that is secure,
affordable and sustainable.
Our development
programme accelerates
Our 7 in 7 renewable build
programme has advanced with
the first two milestones met - the
176MW Harapaki Wind Farm is now
fully operational and the 100MW
battery energy storage system
(BESS) at Ruakākā Energy Park near
Whangārei, was commissioned in
May 2025. This BESS lifts system
capacity and allows us to reintroduce
stored power into the grid at peak
demand times.
In addition, we have five wind, solar
and battery projects consented –
another BESS in the Manawatū, a
wind farm at Mount Munro in the
Wairarapa, a solar farm that will form
part of the Ruakākā Energy Park, a
large solar joint venture with Nova
named Te Rahui and the first re-
powering of an existing wind farm
at Te Rere Hau. We also have two
consents currently under council
review – Swannanoa solar and
Waikato solar.
The Ruakākā solar farm was granted
Board approval in March 2025 and
early works are now underway.
Planning for Te Rahui is also
progressing well. Financial close on
the joint venture is expected by early
September 2025. Unfortunately, the
timeline for Te Rere Hau has been
revised from August 2025 to mid-
to-late 2026 due to an additional
consent required to relocate an
Airways Corporation facility from
the current site.
We have invested over $1 billion
in the last five years and a further
$2 billion is planned for the next
three years. The projects delivered
so far, and in the next three years,
will deliver almost 2,500GWh of
new annual generation, a 6 percent
increase to the electricity system.
Our frustrations over the inefficiencies
of the current resource management
system are well-documented. We
continue to advocate strongly for
more efficient decision-making
around the allocation and use of
natural resources in Aotearoa
New Zealand.
Hydro essential
to energy security
We’ve made good progress with the
re-consenting of the Waitaki Power
Scheme. The re-consent application
with Environment Canterbury was
publicly notified in July 2024 and
the project was formally shifted
to the Environment Court. Such a
significant body of water attracts
considerable interest from a wide
range of stakeholders. We have
worked with most of these parties
to achieve rapport, align interests,
and address key impacts for iwi,
communities and other stakeholders.
We have been very clear in our
view that securing access to more
water at existing hydro schemes is a
quick, low-impact and vital way to
strengthen the country’s security of
supply. The role of hydro generation
is changing, and we see it playing a
key role as a firming fuel, supporting
the system in peak periods and when
wind and solar are not available.
In mid-August 2025 we were
delighted to receive approval of our
application to access contingent
storage at Lake Pūkaki heard through
the fast-track process. Ensuring
feasible access to all available
storage in Aotearoa New Zealand’s
largest hydro lake would release
hundreds of gigawatt hours into
the system in a sustainable and
lower-cost fashion.
Shifting value to our customers
It’s been a busy and significant year
for our retail team as we transform
the operating model to deliver
digital and data-driven customer
experiences.
It is a huge undertaking but
streamlining decision-making has
helped us to be more responsive to
customer needs, including dealing
with affordability issues. While
Meridian’s residential energy price
increases are modest again this year,
we know that the increase in lines and
transmission charges that form part of
the overall bill are going to impact all
customers. Our new products will give
customers more choice and flexibility.
Ultimately, we plan to create a variety
of products that help customers
work with us to manage their
electricity use and their budget.
We also rolled over pricing for
commercial and industrial customers
coming off contract during last
August’s elevated wholesale
prices. This helped protect these
businesses, the people they employ
and the contribution they make
to New Zealand’s economy.
Flick joining us
This year our mass market volumes
and market share grew across both
Meridian and Powershop brands
despite lower market demand. The
conditional agreement to acquire
the assets of Flick Electric, signed late
in May 2025, adds to our customer
base, reinforcing our position as the
fourth largest retailer by customer
numbers. Our business model is built
on growth as a driver of customer
value, and this year’s performance
reflected that. Even with changes
to how our retail team operates,
we exceeded our growth targets
and remain on track to achieve our
medium-term objectives.
2
INVESTOR LETTER 2025
MERIDIAN ENERGY INTEGRATED REPORT 2025
Proud of our Energy
Wellbeing Programme
The Energy Wellbeing Programme
has continued to invest in promoting
equitable access for those struggling
with energy hardship. The goal is to
support 5,000 of our most vulnerable
households by FY28. This year,
over 1,700 households have been
supported and we’ve now assisted
3,185 households in total.
Tough operating environment
affects financials
Our hydro storage was heavily
affected by two consecutive record
low inflow periods – last winter and
again through summer. Periods of
unseasonably low wind and the
country’s declining gas production
also challenged electricity
generation. The industry worked
through these challenges and, at
Meridian, we exercised our largest
demand response option with
New Zealand Aluminium Smelters
(NZAS) and wrote hedge contracts
to support gas purchases from
Methanex at significant cost.
Operating cash flows of $318 million
for the year ending 30 June 2025
are down $349 million (52 percent)
from the previous year. Net profit
after tax, which also reflected the
changed treatment of the main
NZAS contract, was a $452 million
loss compared with a $429 million
profit in the previous year. EBITDAF
1
was down 32 percent to $611 million
and underlying net profit
2
fell by 84
percent to $56 million. Both of these
measures are non-GAAP measures.
Long-time investors in Meridian will
know Te Tai Ao (Nature) does not
always play a kind hand and that
exercising those insurance products,
while rare, is necessary to maintain
secure supply to customers. They will
also know that we have the balance
sheet structured and maintained
to manage the impact of such
conditions. While the FY25 earnings
reflect low generation and substantial
insurance costs, the overall financial
position remains strong.
1 Earnings before interest, tax, depreciation, amortisation, unrealised changes in fair value of hedges and asset related adjustments.
2 Net profit after tax, adjusted for the effects of changes in fair value of unrealised hedges, electricity option premiums and other non-cash items and their tax effects.
Recognising this strength, the
Board was able to declare a final
ordinary dividend of 14.85 cents
per share. Combined with the
interim dividend, this brings the
total ordinary dividends declared
in FY25 to 21.00 cents per share.
This level of dividend has allowed
us to maintain our balance sheet
strength, with a Stable/BBB+ credit
rating and the capacity to continue
to invest significant capital in new
generation.
The significant future investment
planned for new renewable
generation, currently targeting up
to 20 new projects by 2050, will
require continued balance sheet
strength. While rare, severe droughts
will occur in the future. When they
do, the Board may review the level
of dividends at the time to prudently
manage the cash flow impacts,
prioritising the delivery of those
new projects while maintaining our
existing credit rating.
Important gains for generation
Two years ago, we set a goal to
deliver 200MW of restored and
300MW of new capacity from our
generation portfolio by the end of
FY28. Every MW restored or added
counts positively towards our target,
while further outages set us back.
We’ve faced challenges with further
plant failures but achieved net
8.3MW of restored capacity
and 111.6MW of new capacity.
At the same time, overall capacity
at the Aviemore and Ōhau B and
C stations has lifted. The arrival of
a new transformer at Manapōuri
returned 128MW in capacity from
the beginning of 2025, and we were
able to lease and install a transformer
at West Wind which meant a further
45MW of capacity was restored.
The new transformer has arrived
and we expect to have it operational
by the end of October 2025.
Misplaced focus on
short-term alone
The dry periods this year have led to
heightened media, regulatory and
political scrutiny of the sector. The
Electricity Authority (EA) has proposed
new obligations on generator retailers
to sell hedge contracts to third parties
on terms comparable to notional
internal agreements, in an effort to
encourage more competition.
Our view is that the issues this
year were signficantly driven by
increasingly limited gas supplies and
that there is no magic solution that
will supplement them in the short
term. Our business and others must
invest in new renewable assets to
replace the fossil-fuelled generation
that relied on that gas. It will take time
to do this and no change to either
the electricity market or our business
structure will fix that problem. We’ve
continued to engage with officials
and Ministers to emphasise that this
is primarily a supply-side issue – not
a competition one – and, in fact, high
wholesale prices during this period
provided important signals to the
market to bring on new supplies
and ultimately ensure that demand
continued to be met. The contracted
prices most customers enjoy in
New Zealand rank favourably against
other OECD country comparisons.
We are fully committed to
competitive improvements that make
a difference to customers. We note
that significant structural changes
at this point are more likely to
impede rather than assist the sector
in addressing current challenges.
Solving this country’s declining gas
production cannot be resolved
immediately. In the meantime, the
sector has rallied around a solution
that focusses on maintaining capacity
at the Huntly power station. While
a range of solutions will be needed,
ultimately investment in new
renewables will solve this structural
challenge in time. As such, the focus
should be on supporting new builds
to progress as quickly as possible.
3
INVESTOR LETTER 2025
MERIDIAN ENERGY INTEGRATED REPORT 2025
Evolving our approach
to people and planet
Big changes to the structure of
the retail business were critically
important before we introduced
a new retail operating platform.
The changes were completed by
December 2024 and since then
the retail team has been busy
embedding new ways of working
and starting the transition from the
Flux platform to Kraken.
Those changes have been difficult
for our people as, along with creating
new roles and opportunities, they
also resulted in redundancies both
within retail and at Flux.
To help protect people’s wellbeing
during these times, and to support
the broader organisation, we
instigated a revised wellbeing
strategy that balanced concern for
the individual with a focus on team
and collective psychological health.
We also initiated a new approach
to leadership that recognised how
people can and should aspire to
leadership in a range of ways.
Ranked #1
Pleasingly, Meridian was ranked #1 in
the electric utilities sector in the Dow
Jones Best-in-Class Sustainability
Asia Pacific Index, an independent
global S&P Index that ranks our
ESG (environmental, social, and
governance) performance against like
companies in the region.
Changes to our Executive Team
The Board has remained unchanged
this year. Directors’ extensive and
varied sector experience has been
invaluable in helping navigate the
different challenges and we thank
them for the range of perspectives
they have applied to different
situations throughout the year.
A number of changes in our
Executive Team were announced
during the year. Mike Roan started
his tenure as Meridian’s new Chief
Executive and Mandy Simpson has
been appointed to Mike’s previous
role of Chief Financial Officer from
1 September 2025. The merging of
the Wholesale Operations function
into the Generation team has seen
Chris Ewers leave the Executive
Team to take up a new role in the
company as Electricity Security
Manager, reporting to Tania Palmer.
Rory Blundell has been appointed
to the newly created role of General
Manager, Strategy and Portfolio and
Chief Information Officer Bharat
Ratanpal has returned from his
secondment as Interim CEO for
the Flux business. Sincere thanks
to Edna Maddocks who stepped
in during that time to lead the
ICT team. Grateful thanks also to
Helen Peters who has acted as
Chief Financial Officer to the end
of the financial year.
The end of the financial year marked
the end of Neal Barclay’s tenure
as Chief Executive. Under Neal’s
exemplary leadership, Meridian has
grown a renewable development
pipeline that will double the size of
the current asset base over time.
We’ve refocused our business
around customers while significantly
growing that business and built
valuable relationships with a variety
of stakeholders. Importantly, Neal led
the team that secured a sustainable
20-year contract with NZAS.
The Board and Executive Team
would like to thank Neal for his
commitment to growth and
sustainable practice and for
anticipating how Meridian could
play its part in delivering long-term
value for customers, investors and
Aotearoa New Zealand. We wish
him all the very best for the future.
Our sights set on a secure,
affordable, sustainable future
As the country looks to improve
energy security, Meridian will flourish
due to our pipeline of renewable
development options that will
help meet the expected growth in
electricity demand.
The transformation of our retail
business will be a game changer
in the long run, not only for our
business but more importantly in
how the electricity sector supports
and interacts with customers. Our
brands are catching the eye of
customers looking for a service
that makes sense to them through
fair pricing and demand response
opportunities that expand their
choice and save them money.
It has been an uneasy year for our
investors. The financial pressures
we faced reinforce the need for
new thinking if we want Aotearoa
New Zealand to be a competitive
economy globally. We’ve emerged
with a development programme
ahead of schedule, our assets
operating strongly, our retail team
revamped, and our balance sheet
resilient, enabling both continued
investment for growth and returns
for shareholders.
The Board and Executive Team
thanks everyone who is on this
journey with us – our customers,
the communities in which we work,
our partners and our investors.
Thanks too to our talented and
hard-working teams for helping us
deliver clean energy for a fairer and
healthier world.
A powerful future is
developing, thanks to you.
Ngā manaakitanga
Mark Verbiest,
Chair
Mike Roan,
Chief Executive
4
INVESTOR LETTER 2025
MERIDIAN ENERGY INTEGRATED REPORT 2025
Underlying net profit after tax reconciliation
Financial year ended 30 June
$M FY25FY24
Net profit after tax(452)429
Underlying adjustments
Hedging instruments
Net change in fair value of energy hedges659(102)
Net change in fair value of treasury hedges124
Premiums paid on electricity options net of interest(12)(23)
Assets
Asset related adjustments3318
Total adjustments before tax692(103)
Taxation
Tax effect of above adjustments(184)33
Underlying net profit after tax56359
EBITDAF
Operating cash flow
NEW STORAGE
ENHANCED HYDRO ACQUIRING/SIGNING FULL YEAR DIVIDEND
100mw
Ruakākā BESS
200MWh storage
112mw
from outage
Acquiring NZ
Windfarms and
Flick. Signing Huntly
reserve and Kraken
21cps
EARLY WORKS
DOUBLE-DIGIT GROWTH
STEADY
OPERATING CASH FLOWS
Ruakākā solar
+10
%
Customer connections
74
%
Staff engagement
(top 25% ranking)
$318m
(↓ 52%)
IN CONSENTING
EV CHARGERS
NEW
EBITDAF
Waikato solar
Swannanoa solar
Waitaki Hydro
Scheme
388
(↑ 60)
Staff wellbeing
programme
$611m
(↓ 32%)
20222021202320242025
1,000
800
600
400
200
0
$M
692
611
709
783
905
20222021202320242025
700
600
500
400
300
100
200
0
$M
431
461
509
667
318
5
INVESTOR LETTER 2025
MERIDIAN ENERGY INTEGRATED REPORT 2025
---
Results announcement
Results for announcement to the market
Name of issuer Meridian Energy Limited
Reporting Period 12 months to 30 June 2025
Previous Reporting Period 12 months to 30 June 2024
Currency NZD
Amount (NZ$m) Percentage change
Revenue from continuing
operations
$4,835 0%
Total Revenue $4,835 0%
Net profit/(loss) from
continuing operations
($452) -205%
Total net profit/(loss) ($452) -205%
Interim/Final Dividend
Amount per Quoted Equity
Security
NZ $0.14850000 Final Ordinary Dividend
Imputed amount per Quoted
Equity Security
NZ $0.04215750
Record Date 5 September 2025
Dividend Payment Date 23 September 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$3.24
$3.01
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the operational results, please refer to the
media announcement and final results presentation.
This announcement should be read in conjunction with the
attached Annual Financial Statements for the year ended 30
June 2025.
Authority for this announcement
Name of person
authorised
to make this announcement
Jason Woolley
Contact person for this
announcement
Jason Woolley
Contact phone number +64 21 309 962
Contact email address Jason.Woolley@meridianenergy.co.nz
Date of release through MAP
27 August 2025
Audited financial statements accompany this announcement.
---
Distribution Notice
Section 1: Issuer information
Name of issuer Meridian Energy Limited
Financial product name/description Ordinary Shares
NZX ticker code MEL
ISIN (If unknown, check on NZX
website)
NZMELE0002S7
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies X
Record date Close of trading on 5 September 2025
Ex-Date (one business day before the
Record Date)
4 September 2025
Payment date (and allotment date for
DRP)
23 September 2025
Total monies associated with the
distribution
1
$398,420,650.38
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.19065750
Gross taxable amount
3
$0.19065750
Total cash distribution
4
$0.14850000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.01913029
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Partial imputation
If fully or partially imputed, please
state imputation rate as % applied
6
73%
Imputation tax credits per financial
product
$0.04215750
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Resident Withholding Tax per
financial product
$0.02075948
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2%
Start date and end date for
determining market price for DRP
04 September 2025 10 September 2025
Date strike price to be announced (if
not available at this time)
11 September 2025
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New Issue
[TRUNCATED]
=== IR PAGE TRANSCRIPT: Annual Results Announcement Transcript (PDF) ===
TRANSCRIPTION
Company: Meridian Energy
Date: 27 August 2025
Duration: 80 minutes
Reservation Number: 10048623
[START OF TRANSCRIPT]
Mike Roan: Tena koutou, Good morning, everyone, and thank you for joining us for
Meridian Energy's Results Announcement for the Financial Year through 30
June 2025. I'm Mike Roan, Meridian's Chief Executive, and I have with me our
acting Chief Financial Officer, Helen Peters.
For those that are new investors, I sat in that seat at our interim results
announcement back in February. So at the very least, I bring continuity and
given the environment the business is navigating right now, my experience, and
the experience housed throughout our business, is more important than I would
have imagined a year or so ago.
And while we were challenged by the perfect storm this year, I'm incredibly
confident about the future of the business and its ability to both support and
grow the economy while rewarding shareholders for doing so.
As I'll talk to soon, there are some challenges immediately ahead that require
attention but when we properly harness the natural bounty that this country has
to offer, I believe the electricity sector will underwrite the economic growth of
the nation, and I want Meridian to be a driving force behind that.
This will require an evolution of where we've come from and some change. I
have an immense respect for what people have done to get Meridian to where it
is today, but I also have a clear idea of what's required for us to continue to
succeed as we move forward.
First, I want to further accelerate our development of renewable energy. While
we're well on track to deliver seven new developments in seven years, that was
framed before the gas sector collapsed. So we need even more clean energy to
realise the ambition. And as we do this, I want us to go back to our roots.
Sixty-odd years ago, the Waitaki Power scheme was devised and built in the
Mackenzie Basin. It remains the country's largest hydro scheme and the
backbone of Aotearoa New Zealand's electricity system. But it has so much
more to give. There is more water to be accessed, more megawatts to be
achieved from existing assets and a fundamental shift in the role stored hydro
plays.
At a time when politicians and others are calling for a solution to the firming
issue, I say look to hydro for a lower cost and lower carbon solution. In my view,
the route to global competitive advantage for our economy can only come if we
harness more water within that and other existing hydro catchments. We need
to be bold and we are.
We've recently established a hydro development team to explore opportunities
in the Mackenzie Basin and in Fiordland. We worked with the Waiau Guardians
to create more flexibility and storage in that catchment, and we've just received
Ministerial approval to have our application for access to Pūkaki contingent
storage head through the Fast-Track process.
Second on my list of priorities, I want us to get even closer to our customers -
that's where we've set our compass. Like every business, you're only as
successful as the customers that you serve, so as well as evolving at pace to
help customers thrive in the future, we are highly tuned into how we can
support industrial and residential customers in the current tough environment.
But back to today. There's no question that underlying financial performance
was poor last year. From a financial perspective, the business struggled to get
out of first gear and even had to hit the brakes hard at one point. Now that
result has been well-signalled and every Kiwi knows that when it doesn't rain,
it's tough to make hydroelectricity and turn that into profits.
The second half of the year was better than the first, but only just. EBITDAF
was $100 million more but the January to March period was the driest on
record, and the rebound from April to June brought only average inflows. The
result? The lowest earnings for our business in a decade.
Our business is always going to take a hit in a drought, and this year, we had
two, and both of them one-in-90-year droughts. And when gas was switched on
to replace hydro, that also failed. There's no historical precedent for this series
of events, none.
Despite these challenges, there was no loss of supply and 99% of Meridian's
customers were entirely unaffected. And they were unaffected because we
sheltered them from the high wholesale prices, even though we didn't have that
surety ourselves. As a result, we lost money in our retail business last year. But
that's the advantage of a vertically integrated business. We can and will
continue to navigate the challenges on behalf of our customers.
I think the 2025 financial year will be defined by Meridian putting the country's
security of supply first, keeping power flowing for homes and businesses and
the financial hit we took because of that. I understand that people are calling for
generation to help bring prices down and ensure that we have enough
electricity for the future. I want these things, too, but there's babies and there's
bathwater.
The New Zealand electricity system is robust, possibly more so now than
before the events of August 2024. The same cannot be said of the gas sector.
The failures evidenced in August 2024 are now playing out more widely in that
sector with customers facing higher gas costs, businesses having to put up
prices to cover these costs, and the worst instances, shutting up shop because
they can't get the molecules.
The electricity sector uses gas too, but we can't fix the problem of declining gas
production. We can, however, work around it. As the Huntley Strategic Energy
Reserve agreement signals, the electricity sector is switching away from gas as
well. Executing that agreement was a very challenging decision for everyone at
Meridian, given our commitment to decarbonisation and renewable energy.
But the economy needs fuel and our job is to support that economy and ensure
homes and businesses have the power they need, so we had to enter into a
pragmatic solution. The good news is that so long as Pūkaki contingent storage
gets fast track approval, the Strategic Energy Reserve arrangement, alongside
NZAS demand response, should see the electricity sector through the
disruption.
My key point is that the country's energy supplies have been challenged, so we
have adapted, not perfectly yet, but things have certainly stabilised. And if I
bring things back to the company level, the Strategic Energy Reserve also
signals that your management team has reset Meridian's portfolio settings to
manage future risks. And despite these challenges, we've been able to provide
a stable dividend to shareholders.
We can't deliver our strategy without the confidence of shareholders who will
always endeavour to reward for their loyalty. Furthermore, our business needs
the support of those shareholders if it is to invest, and we have been, and are,
investing billions. At least a quarter of all electricity generation has been
replaced over the past 15 years, costing $12 billion and that wouldn't have
happened without big businesses like ours. Fifty-four cents in every dollar of the
dividend that Meridian makes is returned to the government and that money,
approximately 300 million this year, is used by the government to fund health,
education and roading.
A further 25 cents on the dollar goes to and mum, dad and youthful Kiwi
investors. So in total, 79 cents of every dollar we make stays right here in New
Zealand supporting Kiwis.
And while the numbers we post are invariably large, shareholder returns have
been incredibly reasonable. So a stable steady dividend is very important and it
provides evidence of the strength of the business, and that strength is now
being leveraged to grow.
Not only did we deliver the $450 million Harapaki Wind Farm and the $186
million Ruakākā battery last year, but we obtained five consents for new
developments, including the $227 million Ruakākā Solar Farm, which is starting
construction next month; Mount Munro Wind Farm, Te Rere Hau, another
battery near Palmerston North, and the Te Rahui Solar Farm, a joint venture
with Nova.
We don't just focus on today, we're focused on tomorrow and delivery of our
strategy, and I'm going to move on to that strategy now. As this slide shows, the
strategy is straightforward. Invest in new renewable generation and firming
assets to accelerate decarbonisation of the economy, deliver cheaper energy to
customers so they can unlock value in their lives and businesses, strive to
deliver more from the operating business, and grow the capability within the
team so we can do better every year.
It's aligned with where I want to take the business, it's clear for our teams and it
connects directly with our purpose, and it will grow shareholder value.
Now, despite the challenging operating environment and conditions and intense
industry scrutiny, Meridian continues to attract and retain engaged staff.
In my view, that's because smart, capable people want to make a positive
impact, and they can here. It's one of the reasons why I've spent 17 years of my
life here - the people are terrific, and they're also terrifically motivated. They
also have the courage to do what needs to be done to make us better, a lot of
it. I'll provide a little more colour on this a bit later.
We've also overhauled the well-being strategy, and the overhaul was pleasantly
straightforward. If we focus on leaders providing leadership and we take the
dross out of daily tasks, people will have space to look after themselves, and it's
working.
Employee engagement remains strong, with our latest survey showing three
quarters of the people that we work with are engaged and want to tackle the
challenges ahead. Now, that puts us in an upper echelon of New Zealand
businesses.
The safety metrics reflect the complexity of our operations, but we're committed
to making sure that people are armed to make decisions regarding their safety
as they go about their daily tasks.
I talked to some of what's on this slide earlier, but the two one-in-90-year
seasonal droughts, May to mid-August 2024, and again from January to April
2025, were unprecedented, and inflows into the hydro catchments reflect this.
They were 64% and 57% of average in each period respectively.
While the hydro lakes look large, the reality is that they only hold up to 16
weeks of water at best, so they're in fact quite shallow. We have to remember
that they were designed to meet expected electricity consumption in the 1970s,
not the 2020s or 2030s.
The financial impacts of lower physical generation flowed into the monthly
energy margin figures that are shown on the top right graph. The August
through October impacts were exacerbated by the loss of gas and the impact of
freeing up more from Methanex.
We also asked NZAS to do more than contemplated last August, and they did.
The second drought saw NZAS provide even more support to the electricity
system, which was appreciated, but as with all commercial arrangements, that
50-megawatt deal costs money, and it reduced energy margin by a further $40
million.
Now, if you want to understand what the electricity sector has been through,
look no further than NZAS, that will finally be back to full load later this week
after more than a year supporting the electricity system. So, thank you to the
NZAS team. You've become a bigger and more important element to the
electricity sector than either we or you may have imagined only 18 months ago.
And in another ‘that was then this is now’ story, the green bar on the top graph
shows that energy margin has reverted to pre-drought levels. As for gas, I've
talked to that story. For one reason or another, and I don't have the answer for
it, but gas has not been able to keep up with the needs of a modern economy,
or be the transition fuel to this country's low carbon future. Instead, its demise is
putting the electricity sector and the economy through the wringer.
Looking ahead, and based on what we know today, the graph on the right of the
slide shows that dry year risk in the electricity sector has been stabilised so
long as the Pūkaki contingent storage Fast Track application is approved before
winter 2026.
The combination of the strategic energy reserve, NZAS demand response, and
critically, that contingent storage, provides enough energy to manage a drought
should it occur. This combination is important as it buys time for Meridian, and
other businesses, to accelerate the investment in renewable generation.
We're targeting $2 billion of capital spend in the next three years and our
renewable development pipeline allows us to do that as it's strengthened over
the past five years. Te Rere Hau may have slipped by up to 12 months, but
construction of the 130-megawatt Ruakākā Solar Farm is underway.
Stage 1 of the Te Rahui 200-megawatt Solar Farm is about to hit financial
close, possibly as soon Friday, and we'll make decisions on the Manawatu
battery, a solar farm in the Waikato and Mt Munro in the next 12 months as
well.
That would represent 1,800 gigawatt hours of new energy being delivered and
$1.6 billion more capital deployed this decade with more to come. Our PPA for
the Tauhei 150-megawatt solar farm enables that asset to be commissioned in
2026 as well.
So we're cooking ‘without gas’ and the benefits of these developments will flow
through to shareholders in the country quite quickly. You'll also see that the
pipeline has a higher concentration of solar development than wind or batteries.
While solar is valuable to us, it is not correlated with wind or hydro inflows, our
core development competence remains in building wind farms, and there are
some material prizes in that space so expect the pipeline to move over time.
The Electricity Authority and Commerce Commission Task Force provided
further insight into its ‘Level Playing Field’ measures last week. It's hard to offer
much commentary other than to say that we're up for any change that reduces
cost for our customers.
What is creating uncertainty, and considerable noise, is the fact that no one has
any real idea what the government intends to do as a result of the Frontier
report.
And while I know government is carefully assessing what to do, if anything,
evidence from offshore interventions and electricity markets suggests that they
typically increase rather than decrease prices for consumers.
Now we're prepared for whatever might play out. The Minister is talking about a
surgical intervention. It's certainly not the time for an amputation. I say that
because the underlying issue, not only the electricity sector but for the wider
economy, is the lack of gas. It's this that's driving up prices everywhere, and
that, in my view, is what requires attention.
If I was making surgical calls, I'd be considering the following:
- some form of funding to help gas customers convert to electricity or
biomass, and quickly
- deferring the Commerce Commission approved increases in distribution and
transmission costs, as this is what's driving above-inflation cost increases
for electricity consumers
- and combining the Gas Industry Company and the Electricity Authority to
improve regulation and disclosures across the energy sector.
Each would have an immediate benefit, and I'm hopeful that this is where the
government focuses its response to the Frontier report.
The reality is that the electricity market works (and it did its job last August
signalling gas shortage) - Gentailers did not earn excess profits. The EA
report of March 2025 and this result are proof of that and investment is pouring
into the sector to remedy problem that loss of gas created. And while the overall
cost of living pressures on households are big right now, electricity costs,
although a factor, have as a percentage of average household incomes, been
reduced over the past 10 years.
And there are only five countries in the OECD with better industrial pricing than
New Zealand. Of course, we can and we must, do better. But where we're at
today is a very strong starting point for a remote country without that many
people.
Now I want to change gears for a minute. Specifically, I want to talk about
emissions as, while not front of mind right now given the overall cost of living
challenge that people are facing, climate change is still a thing. And reducing
emissions, especially as the sector is likely to burn more coal in the short term,
is important.
Meridian reviewed its Half-by-30 framework during the year and while the target
to have Scope 1 and 2 emissions by 2030 has been retained and is tracking
well, the Scope 3 target has been revised, given we're now in a period of
material sector growth and investment.
It's unrealistic to expect our supply chain emissions to half from 2021 levels in
this capital-intensive environment, so we've reset that target to focus on a 51%
reduction in Scope 3 emissions based on a per megawatt installed capacity
basis. That is, we've changed it to an intensity target, a target that reduces the
intensity of Scope 3 emissions as we grow.
Now some have noticed but in case you haven't, Meridian is now the highest-
ranking utility in Asia Pacific region on the Dow Jones Sustainability Index,
again not bad for a utility in a small country.
Before handing to Helen, I want to talk to the efforts of the Retail team over the
past 12 months as decisions they are making and the outcomes they deliver will
create considerable value for shareholders over the long term. They'll also
support customers.
Customer numbers lifted by 35,000 over the year and Meridian now has
405,000 customers, excluding Flick. That's an important marker of customer
support for what the team is doing, but as importantly, the Retail team has
begun to offer products to reduce customer costs.
The first being a product that offers $10 off a customer's monthly bill if they
hand over control of their hot water cylinder to us to reduce peak demand. Now
that product already has 18,000 customers so it is popular. The team also
added 60 new EV chargers to the Zero network and reset the entire team
structure, dropping 45 roles in the process or close to 15% of that team before
the change. And after that change was complete, the team moved to select a
new operating platform, Kraken to support the business into the future. The first
customer has already been migrated to that platform.
Of course, the Retail team also runs an award-winning fund to support
customers who decarbonise their businesses and a proper hardship practice to
support our vulnerable customers. And when I say Retail, it is people that make
those tough calls and have to roll up their sleeves to make them work, and they
did.
They were outstanding last year, and I'm proud of the courage shown and the
achievements to date as they're all designed to make energy cleaner and
cheaper for our customers, the people who pay the bills and work hard
themselves.
Helen, over to you.
Helen Peters: Thanks, Mike. Before we dive into the numbers, I do want to take a moment to
recognise Mike Roan on his appointment as our Chief Executive. Mike, we're all
genuinely thrilled to have you at the helm. And I do have to thank you for
passing the acting CFO baton to me, just in time to talk about our most
financially character-building year in over a decade. So let's get started on the
financials.
FY25 was a year where nature really tested us. As Mike mentioned, two record
droughts, one in winter, one in summer, combined with low wind, declining gas
availability, a wet spring and low prices, all created extremely challenging
conditions to manage.
As you can see, our operating cash flows have taken a significant hit, down
52% on last year. At $318 million, this is the lowest level we have reported
since 2009. That's a tough number to stand in front of and I want to
acknowledge that upfront.
There are a few key drivers behind the result. Reduced physical generation
from the back-to-back droughts; low wind generation and the cost of risk
products, including the NZAS demand response calls, saw energy margin drop
by 23% to $982 million.
This really reflects the cost of keeping the lights on when hydro and wind were
scarce. We leaned heavily on derivatives and demand response during the year
and those tools did their job, but they came at a cost.
So in summary, operating cash flows fell by $349 million, driven by energy
margin dropping $294 million and the increased tax of $35 million.
This also all flows through to EBITDAF, which fell 32% to $611 million. What's
important here is that our balance sheet held firm. We've actually built it to
withstand dry years and FY25 proved that our structure works.
Now on to dividends. Despite the financial pressure and current year cash
flows, the Board has declared a final dividend of 14.85 cents per share, bringing
the full year dividend to 21 cents, which remains unchanged from last year. To
support this, we drew on over $300 million of debt headroom.
That's the equivalent of a reasonably sized new wind farm. That's not
something we do lightly. We have also always carried conservative balance
sheet settings to manage the business impacts of droughts.
As a renewable and predominantly hydro generator, it is neither practical nor
cost effective to try and hedge away all the tail risk to our portfolio. So extreme
droughts will have an earnings impact. We're also being realistic.
If we face similar droughts in future years, we may or may not need to review
our dividend levels to provide flexibility and maintain our existing BBB+ credit
rating. The dividend reinvestment plan remains in place with a 2% discount.
Let's now look at EBITDAF. The biggest driver behind our decade low EBITDAF
was the $294 million drop in energy margin. That's the direct result of lower
physical hydro generation and significant derivative and demand response
costs and I'll talk more about that soon.
The winter 2024 drought broke in a hurry and the spring that followed proved to
be the second wettest Spring ever. And while $800 wholesale prices through a
small number of August 2024 trading periods got plenty of headlines, the $1
prices that came with the Spring inflows didn't quite grab the same attention.
Managing those large inflows into our catchments meant we ran hydro hard,
realising very low generation prices. Other revenue has a couple of one-off
items in it this year, including a new metering contract benefit, insurance
proceeds from cyclone damage at the Harapaki Wind Farm and the operating
revenue from our joint ventures and Flux. Transmission and distribution cost
increases are also now flowing through.
Energy margin fell to $982 million, down from $1.276 billion last financial year.
The impacts of the drought show up in physical energy margin with hydro
volumes more than 1,000 gigawatt hours or 10% off the 10-year average.
In fact, you have to go back to 2012 and 2013, which were back-to-back
drought-affected financial years to see our hydro output at less than 11,000
gigawatt hours. These conditions also affected wind generation with calm
periods coinciding with the droughts, particularly in winter and summer.
Despite that, we've had almost a full year of production from Harapaki Wind
Farm and it performed exceptionally well, achieving a 35.5% capacity factor in
its first 12 months. However, to manage the volatility, we did spend $300 million
on derivative purchases and demand response calls.
And while they worked, they were expensive and drove a $460 million reduction
in financial energy margin compared to last year. Now, I do want to take the
opportunity to address the common misconception that high wholesale
electricity prices are somehow a windfall for Meridian. That idea is simply not
the case.
High wholesale prices are a signal, a signal of fuel scarcity. That's how the
market is designed to work. During the year, we became a substantial net buyer
of electricity derivatives, at those elevated prices. Aad those prices were
compounded by gas scarcity.
The sector's traditional backup fuels were simply not available in the volumes or
at the prices we've relied on in the past. So, while wholesale prices were high,
they reflected a stressed system and for us that translated into higher costs, not
higher profits.
Now, let's talk about our Retail business. Retail really was the bright spot this
year and it's where we're seeing the most visible transformation. We ended the
year with over 405,000 customer connections, a 10% increase from last year.
That's more than 35,000 new connections across our Meridian and Powershop
brands.
We saw a 2% increase in sales volumes across our mass market segments,
excluding agriculture and a 6% lift in net average sales price, delivering a $32
million increase in revenue. In the corporate segment, volumes were flat, but
pricing strength drove a $36 million uplift or 7% growth in revenue. And while
agricultural volumes declined, down 13% on last year, these can move around
year-to-year based on the irrigation season.
But our growth is clearly being led by residential, SME, and the large business
segments. Overall, this is a standout performance from the Retail business, and
it positions us well as we roll out our new Kraken platform and the digital
customer experience.
Moving on to generation. At first glance, inflows came in at 98% of average,
which sounds pretty solid but that headline hides the extreme volatility we
experienced. FY25 brought the kind of variability that is incredibly difficult to
manage, and it resulted in our lowest hydro generation since 2013.
The Harapaki Wind Farm delivered its first full year of generation, producing
549 gigawatt hours. That contributed to a 26% increase in wind generation
year-on-year. We've also made progress on our generation upgrade
programme, restoring 29 megawatts of capacity at White Hill and Te Āpiti, and
an additional 8 megawatt uplift at Aviemore and Ōhau B and C. This all links to
the 112 megawatt of new hydro capacity we are chasing from our existing
assets.
We've also faced challenges. At Manapōuri, we've been dealing with issues
related to seven transformers, originally supplied in 2015 and 2018. Two of
these were removed from service in 2023 due to elevated gassing. A third was
installed at the end of 2024. Two new transformers from a different provider are
expected to arrive by early 2026. We've made the decision to proactively
replace all five over the next two and a half years.
At West Wind, a prolonged transformer outage took 45 megawatts out of the
system, reducing capacity to 98 megawatts for most of the year. We did secure
a loan transformer from Transpower in late 2024, which restored that lost
capacity, and the permanent replacement has now arrived and is sitting on the
Wellington Wharf. So we're on track to have the new one operational before the
end of October this year.
Let's now move to operating expenses. This year, opex came in at $289 million.
A 3% increase on last year, and importantly, below our revised market
guidance of $298 million. Now, that sounds like a modest rise, but there's a key
reason behind it.
In short, this year we didn't meet our short-term incentive financial benchmark.
This contributes to a cost reduction of $7 million. This means that our people
received a small proportion of potential incentive payments, and our senior
people received no payment.
That's a tough outcome, but it's a reflection of how closely our remuneration is
linked to performance. Beyond incentives, we also sealed operational changes
to our Retail and Flux business units. These round out the $11 million of staff
cost reductions and reflect the new Flux structure, which now has 29 fewer
roles.
At the same time, we're invested in transformation. We've brought in contract
support to help deliver the Retail transformation and DigiGEN, our digital
generation programme. These costs are reflected in the $8 million increase in
contractor spend.
We've successfully completed the implementation of our new Oracle finance
system on time and on budget. These one-off costs show up in the $6 million
ICT line. The cost line also includes the addition of Harapaki's operating costs.
And finally, like everyone else, we have also encountered higher Council rates
across our generation assets.
Now on to capital expenditure. In February, we revised our guidance and
indicated that we might spend between $220 million and $250 million. We
landed at $193 million, down 45% from last year and below that guidance. It's
important to note that this lower spend simply reflects timing changes and not a
slowdown in strategic investment.
FY24 included milestone payments for Harapaki and the bulk of the Ruakākā
BESS investment. In contrast, FY25 fell between the tail end of Harapaki and a
later than expected start to the construction of the Ruakākā Solar Farm.
Consent for that project was initially lodged in September 2023. It took just over
a year to secure initial approval in September 2024.
That decision was then appealed. It took another five months to reach
resolution and final consent in February 2025. Stay in business capex also lifted
this year, driven by two key investments. The replacement of our SCADA
generation control system and upfront costs for the new Manapōuri
transformers.
Looking ahead, our investment programme is accelerating, including the five
new consents that Mike talked about earlier.
Now we jump to talking about FY26, where we want to continue to provide
guidance on our operating and capital expenditure.
Operating costs first. We are looking at spending between $311 and $316
million next year, which represents an uplift of up to 9% on last year. What's
driving that increase is not just inflation or overheads, it's investment in the
future.
One of the biggest contributors is our retail platform transformation. In FY26,
we'll be running two billing platforms, Flux and Kraken, as we transition
customers across, temporarily doubling up on costs.
Once we're fully on Kraken, we expect to remove $15 million of annualised Flux
expenses from our cost base by FY28. So, this is a short-term transition cost for
the long-term gain. The other driver is our expectation that we'll meet our short-
term incentive financial benchmark next year. This means that we expect to pay
a higher level of short-term incentives than we did in FY25.
Now turning to capital expenditure. We have allocated between $330 and $360
million next year. As you can see from the graph, growth capex is largely driven
by the completion of the Ruakākā Solar Farm. On this day in business capex,
the more generation assets you build, the more likely you are to see asset
maintenance costs rise. We're also continuing the transformer replacement
programme at Manapōuri that I talked about earlier.
The $10 million cost of the two new transformers in FY26 is also included in the
asset maintenance bucket. So in summary, costs are going up, but they're
going up for the right reasons. We're investing in platforms, people and
infrastructure, and we're doing it with a clear view of the long-term benefits.
Let's now look at the results below EBITDAF. These graphs clearly show a
massive swing in our reported profit. Net profit before tax fell $671 million, and
net profit after tax dropped $881 million.
Even our preferred non-GAAP measure of underlying net profit after tax was
down $303 million from last year. So what's driving these movements? The key
factor was a $1.247 billion loss from the fair value movements of our energy
hedges. This number includes realised and unrealised losses. $901 million of
that total loss relates to NZAS, and is driven by the accounting treatment of the
new electricity agreement, which came into effect in July 2024.
Under the new structure, the NZAS contract is treated as a financial instrument,
or a derivative for accounting purposes, a 20-year contract for difference, or
CFD, rather than a standard revenue contract. This means it's now carried at
fair value and remeasured at each reporting period, with the main driver of any
value change being movements in the long-term electricity price forecasts.
In FY25, the unrealised loss on the NZAS contract was $465 million. This loss
does not reflect actual cash flows. We also recognised a $33 million impairment
on the Flux platform, following our decision to transition to Kraken as a retail
technology platform. Depreciation increased by $113 million, largely due to last
year's $3 billion asset revaluation across our generation sets.
Again, this is a non-cash adjustment, but it does affect reported profit and with
another $2 billion uplift in asset valuation this year, depreciation will increase
again in FY26.
Our generation assets get revalued each reporting period based on the same
long-term electricity price forecasts as electricity derivatives.
All of that washes through to a statutory loss of $452 million. Our underlying
NPAT, which adjusts for the non-cash items was just $56 million, down $303
million from last year. That movement is largely explained by the $294 million
drop in energy margin, with the higher depreciation expense offset by the
negative tax expense on the current year's statutory loss.
So while the headline numbers are poor, it's important to understand that these
are largely accounting-driven impacts, not operational ones. Our underlying
business remains strong. We continue to invest in growth, maintain our
dividend and support customers through the energy transition.
Net debt increased 18% to $1.505 billion and our net debt to EBITDAF ratio
rose to 2.5x, up from 1.4x last year. We have $658 million of undrawn facilities,
all under our green finance programme, with a diversified funding mix. And
while Meridian's debt to EBITDAF has increased, this is due to the dry year
EBITDAF, rather than a large increase in leverage.
S&P do take a multi-year view of our debt to EBITDAF and have affirmed a
stable outlook as at July 2025. We have ample liquidity available to support our
balance sheet through debt facilities. We're also considering a $300 million
green bond issue, which would extend our debt maturity profile and support
strategic investment.
Our capital structure remains robust and we're well positioned to fund our
growth agenda. Finally, a quick look at July. The good news is that we're seeing
signs of recovery and we are well past the drought impacts of last financial
year. Inflows for the month were 89% of average. Waitaki storage was also
sitting at 89% and snowpack was 76%.
Hydro storage is significantly higher than this time last year and generation
volumes are tracking well. That's a solid foundation heading into the new
financial year. Customer connections grew 1.4% in July and are up 11.2% year-
on-year. Retail sale volumes were up 9.4% and generation was up 9.6%
compared to July last year.
These are further strong indicators that earnings reversion has happened and
operating conditions are stabilising. August will also see the final fees paid on
the largest smell to demand response call we made last year. The ramp-up is
almost completed and ends as a nearly back to full consumption.
The annual premium fee for the demand response continues, but the temporary
call has now concluded. Looking back, that demand response call was critical.
It underpinned security of supply through the extraordinary droughts we faced
last year and it's a great example of how customer flexibility in the system can
support resilience when it's needed most.
So, in summary, while FY25 was financially poor, we're heading into FY26 with
a strong balance sheet, lots of momentum, and a more stable operating
environment. Back to you, Mike.
Mike Roan: Thanks, Helen, and thanks for the plug, it was a nice touch. Tough experiences
build character and last year, it certainly did that for us. It was tough financially,
and it was very tough for customers, but it would have been a lot tougher for
them without us and we are proud of the support we've provided, and will
continue to provide them.
We realise that we have to prove ourselves to investors all the time, even more
so when things don't go to plan. And we are. Delivery of the Harapaki Wind
Farm and Ruakākā battery alongside consent and current construction of the
accompanying solar farm at Ruakākā mean that we're growing.
With Te Rahui, Mt. Munro, Te Rere Hau, the Palmerston North battery and the
PPA supporting Tauhei, that growth will continue. The meaningful progress
within the Retail and Generation teams and the Flick acquisition will make a
difference as well. And a stable dividend should allow investors to look through
last year's challenges and focus on the future.
With that in mind, I'm pleased that operating conditions have returned to normal
and with a new mix of risk management products on hand, the business is well
equipped to navigate the next few years. So the majority of the damage that the
sudden collapse and gas suppliers caused is behind the electricity sector.
Absent more unhelpful news, any remaining uncertainty has been driven by
concerns that the government may intervene. My observation is that they know
the cost of doing that would be high, and so we're taking the time to assess
whether it's worth it or not.
Regardless of what they do, it will be up to us to navigate the course, and I'm
ambitious for the company as I know that we're busy unleashing the renewable
bounty that New Zealand has.
And as that happens, the country will gain a sustainable competitive and cost
advantage that other countries will not be able to match. We intend on providing
a little more insight into this at an Investor Day that's scheduled in November.
But right now, we can move to questions, and we'll start with questions from
anyone here in the room. Hugh, we'll go to you.
Hugh Lockwood: Hi, I'm Hugh Lockwood from Forsyth Barr. Thanks, Mike and Helen. Just a
couple of questions. Firstly, are you able to provide a bit more colour on the
dividend commentary and maybe talk to what net debt-to-EBITDAF gearing
ratio the Board would be comfortable with, looking at a sort of normalised hydro
earnings basis?
Mike Roan: Yes. I mean, it's exactly what it said, Hugh, is we have paid a stable dividend
over a year where cash flows haven't sustained that. So all we're trying to say
to people is we're mindful that, that has consumed a piece of the balance sheet.
And if we have another drought in the future, we'll look at it.
Other than that, we expect normal business, which is what we hope for as well.
Net-debt-to-EBITDAF is driven by the S&P ratios really. As you look, we had a
spot ratio this year that was 2.5 this year. Last year, it was 1.6. We expect that
to normalise as we head into next year as well. So we just -- we're looking at
the 2x to 3x as the range for net debt to EBITDAF.
Hugh Lockwood: Okay, and my second question is on the pipeline. So you mentioned that Te
Rere Hau's timeline has been pushed out but you've got the target for three
projects to commence in FY26. And it sounds like a lot of projects might reach
FID in the next 12 months. So can you talk to what other projects might be part
of that three? And also if there's maybe the potential for more than three next
year?
Mike Roan: Well, we're hopeful that there might be more than three, but the three that I've
mentioned, the first one is Te Rahui. I mentioned that next couple of days, we
expect that it will reach financial close. The team is working really hard on the
battery in Palmerston North and Mt. Munro Wind Farm as well.
And while Te Rere Hau has slipped by up to 12 months, there's a lot of work
that's going on to see whether we can't bring that forward as well. So time will
tell. Development, as everybody knows who's in the development game is
tough. You find things out that you just didn't expect, but we have a lot of
people working really hard to deliver those outcomes.
Hugh Lockwood: Great. Thank you.
Mike Roan: Jonty?
Helen Peters: Nice to see you.
Jonty Nattrass: Good morning. Jonty Nattrass from Octagon Asset Management. Thanks for
the presentation, Mike and Helen. My first question, obviously, with FY25 kind
of fresh in the minds, just wondering if you could provide a bit more context on
the portfolio positioning. How you see your length? You mentioned the Waitaki
contingent storage as part of that wider security theme. Does that play into your
-- the thoughts on there? And how does the HFO kind of feed into that?
Mike Roan: Yes. It's having gone through, as you say, '24 or '25, it allows you to look really
carefully at business settings. And we're on this trajectory to not only buy a
bunch of risk management products that supported us but decarbonise the
marketplace more effectively. We've had to sit back and look at that again,
Jonty.
And the two things that have gone on within the business is we set an optimal
portfolio for our business based on the opportunity in front of us and the risk
that that we face, and we've backed that off a touch. So we've dropped the
optimal levels a touch as we head into 2026.
We've also reset the risk management products that we have within the
business. The way that I presented is we have about 300 megawatts worth of
swaptions or demand response sitting within the business, given the
transactions that we've written, which are -- it's a lot more than we had as we
headed into '24, and we knew, we found out in '24, that some of that insurance
didn't work out so well.
So we feel really good about looking at 2026. We don't know whether it's going
to be wet or dry or normal yet, but we've certainly positioned the portfolio, given
the experience that we had.
Your piece on contingent storage is, the way we see that is it's just incredibly
important for New Zealand energy security is all the analysis -- that graph
shows hopefully gives people some insight into how the strategic energy
reserve, the NZAS transaction and contingent storage line-up to cover dry year
exposure from a country perspective. And so security of supply, as well as
moderating costs for customers, is really what contingent storage will help with.
Jonty Nattrass: Cool. Thank you. And my second question is just on the hydro development
that you mentioned. Mike, I know that was a key focus of coming into the top
seat. I was just wondering if you could talk a bit more about, is that on top of the
work being done within the generation team to expand, obviously, the
transformers expand capacity, the Waitaki, is that looking at further expansion
of those two schemes?
Mike Roan: Yes, it is, Jonty. So I kind of mentioned that we're going back to our routes
where trying to redevelop a skill set that was manifested in the '60s and '70s
within the business. And so it will take us time to develop the internal capability
and then identify the options that work.
But it's kind of simple in one way, as you lose access to gas and storage that
provides that firmness is we have to get it from somewhere else as a country if
we want affordable energy. And when you look around the resource that we
have that other countries don't have is we have hydro.
And so we will be careful about it. We'll work with stakeholders to move our way
through that process. But if there's ever a time that the country needs someone
to be looking at it, it's now.
Jonty Nattrass: Thank you.
Mike Roan: I don't think we've got any more questions in the room. So why don't we move
to the phones?
Operator: Thank you. Your next question comes from Joshua Dale with Craigs Investment
Partners.
Joshua Dale: Morning, team. Just on the Te Rere Hau project. Now you've acquired New
Zealand wind farms. I think in the past, you had signalled the cost of that project
was $500 million to $600 million. What does the incremental cost look like now,
do you think?
Mike Roan: So I reckon it's going to cost us more than 600, Josh, is probably the best that
I'd give you. But the economics of that project, it is one heck of a project. The
average capacity factor on that wind farm, it looks superb. I'd love us to be able
to push the go button on it.
But we've got one challenge at that site and it's an important challenge to
resolve, which is there's an airways tower that sits there and helps air traffic in
New Zealand navigate the skies and we've got to move that off-site
successfully.
So that's really, really important. We've got to get it right and we will, but it's just
taking more time than we'd contemplated. But that is an incredibly valuable
property.
Joshua Dale: Got it. Thank you. And just on your balance sheet settings, you've talked a little
bit about this. Traditionally, the range seems to be 2x to 3x net-debt-to-
EBITDAF, but we're in an environment now, obviously, with gas back up getting
harder to rely on. We've just had evidence of what your exposure can be to a
dry year and then you've got $2 billion of capex coming through.
I appreciate you'veended to manage the balance sheet to a bit more
conservatively than that 2x to 3x range, but has there been any change in your
thinking or perhaps changes to the phasing of that capex to provide you more
capacity going forward?
Mike Roan: I mean, the simple answer, Josh, is no.
Helen Peters: I was going to say the same thing, so that's good.
Mike Roan: You come back to the country needs energy and our job is to provide that
energy and we've got the consents that are coming through our pipeline and
we've got the balance sheet to deliver it. There's no question about our intent
moving forward.
I think what you've seen for our business is, I hesitate to say you've seen floor
earnings because the future is really uncertain, but you've got a sense of what
can really happen to our business when things are extreme. Two 90-year
droughts and the loss of gas in one year for a business that relies on hydro
energy and then thermal when it doesn't rain, that's a pretty tough thing to get
through.
So I don't have any concerns I look at the financial forecast for the business
and our capacity to both deliver investment and stay within that net debt to
EBITDAF range that you mentioned. Helen.
Helen Peters: And I think coming back to that capex spend, the key driver of any changes to
the amount we spend in a financial year is the impact of the development
pipeline and any delays to that pipeline and you saw that in the amount of
capex that we spent in FY25.
So while we give guidance and we model that of where we think we're going to
land with capex, any delays in that development pipeline will have an impact to
that debt level.
Joshua Dale: Okay. Thank you. The last question I had was, if I'm a customer sitting at home,
logging into your website in say 12 months' time, you've got the Kraken platform
implemented. Are there any changes to your product offering that I may see?
Mike Roan: Yes.
Helen Peters: That’s the plan.
Mike Roan: Absolutely. Well, Josh, the benefit of technology is it allows you to both connect
with your customers more effectively because you get to know them better
through the use of technology and it allows you to expand your products and
services to them. Now, Kraken is incredibly efficient and effective at what it
does.
It wasn't easy for us to step away from Flux, but we have. So that gives you a
sense of the discipline that we've got and our commitment to delivering
outcomes for our customers as well as shareholders. So, yes, you will.
Joshua Dale: Any early sort of insights on what customers may see in a product offering
sense?
Mike Roan: The simple answer is no, Josh, but not because you've asked it. I'm just not
giving away to our competitors.
Joshua Dale: No, totally fair. Thanks very much, guys.
Operator: Your next question comes from Andrew Harvey-Green with Forsyth Barr.
Andrew Harvey-Green: Morning, Mike and Helen. Just a couple of questions from me. Are you able to
remind us, I think the contingent storage volume that you're looking at is around
about 600, 650 gigawatt hours and how much of that, assuming it comes
through, do you think you'd be able to access in sort of an average year in
terms of what would your average hydro generation volumes change by if you
had that available?
Mike Roan: Hi, Andrew. So it's 545 gigs that's available through that contingent storage.
And you're right. On average, we will generate harder. I don't have a number for
you. Owen's kind of singling three or four something. We will let you know. But
the key point is as you increase access to hydro storage, you are able to
generate more because you got access to more water on average.
And the way that we have talked to it previously is we see the financial benefit
to customers being in the order of $500 million a year. And improvement in our
earnings base being in the $12 million to $15 million per year. So we think the
leverage outcome for customers is brilliant but there is an improvement in our
own financials as well. So I don't have the gigs for you but given probably what
you wanted to know anyway.
Andrew Harvey-Green: Yes, all good. And just sort of following on from that, I mean, you -- I guess,
applied for emergency access to that storage for 2025 and Transpower turned
you down. Going through the fast-tracking consent process -- I mean, how is
that going to, if I assume you're more confident of being successful through that
and presumably the aim is to get that in place for 2026?
Mike Roan: Yes, it is. So the aim is to get it in place before winter '26. And I think about it
like we think about consenting is you've got to choose a number of routes if you
want to improve the odds of success. And so we were hopeful that working with
Transpower, that we would get confidence for Winter '25 access to that storage
but we didn't. In the meantime, while we were going through that process we
lodged a fast track application.
And we do have, I'll say, reasonable confidence, we haven't been through that
process before, but certainly, the effort that we're putting in and bring it back to
what I said before, when you look at charts or talk to people about Winter 2026,
security of supply is going to be driven by access to it. So there's a national
need as well as a company outcome.
Andrew Harvey-Green: Yes, great. Okay. And just last couple of questions. Just sort of looking at the
Kraken implementation and just understanding is I'm getting the opex right
going forward. So you've got elevated opex for FY26, and I'm right in saying in
FY27 as well before we see things reduce. Helen, you talked about, I think, $15
million reduction in opex after that. Is that just the one-off costs dropping out or
is that in addition to one-off costs?
Helen Peters: So the $15 million dropping out is essentially the operating cost of the Flux
business. So once we’ve fully moved over to the Kraken platform, then those
costs will come out of the business. And that's why we've said that, that should
happen by the end of FY28. But there'll be a gradual reduction in that over
those financial years.
Andrew Harvey-Green: Yes, okay. And in terms of the elevated level of cost per annum as you
implement Kraken? What are the Kraken costs?
Mike Roan: They're in the same order, Andrew. So that that lift Helen presented, they're in
the $12 million to $15 million range. So you kind of -- the challenge for us over
next couple of years, as Helen said, we're running two retail billing platforms.
And as we migrate to Kraken, we'll be able to reduce the cost and impact of the
Flux platform, by '28, we should have unwound it entirely.
Andrew Harvey-Green: Okay, I understand that. No, that's great. That's all for me. Thank you.
Operator: Your next question comes from Grant Swanepoel with Jarden.
Grant Swanepoel: Good morning, all. Just I wasn't quite clear on the answer, there. So there's $12
million of extra cracking costs related costs this year, that drops out and you get
just a $3 million extra reduction in costs by 2028?
Helen Peters: So I think we'll probably be looking at -- probably a $3 million to $5 million drop.
Grant Swanepoel: Okay. Thanks. My next question is just on your maintenance capex. So that's
been creeping up every year and we understand why it's been creeping up. But
our valuation obviously links to a long-term maintenance capex expectation.
What is the long-term expectation for ICT costs and asset maintenance?
Helen Peters: Yep. Drawing on the asset maintenance cost and what I tried to pull out in the
presentation is that as we continue to add new generation assets, they do need
to be all maintained, so you will see higher levels of stay-in-business capex in
relation to asset maintenance, just due to the fact that we'll have more assets to
maintain.
On the ICT side, costs over the next couple of years are all related to the digital
transformation that we're doing across Retail. So that's in that Kraken space
and then also in DigiGEN, which is a digital transformation of our Generation
business.
Mike Roan: Grant, how we used to talk to $65 million of annualised capex was kind of the
number, and then we actually only spent about $50 million of annualised capex.
I think what we'll do is we'll give you an update at the Investor Day in November
on capex because those numbers still feel reasonable. But what we're seeing is
a bunch of one-off replacements, whether it's the SCADA environment or the
transformers. And of course, they flow through multiple years. So I think we do
owe it to people to come back and re-baseline that underlying state business
capital forecast.
Grant Swanepoel: Mike, that's very helpful because your estimated maintenance costs have risen
from $24 million to $65 million over two years, quite eye-watering.
Mike Roan: Yes, yes.
Grant Swanepoel: So it's good to know it's going to revert back to normal.
Mike Roan: Yes, I can't see why it doesn't, Grant.
Grant Swanepoel: Thanks. And in terms of the HFO cost that you've taken on now, how do those
relate to your historical type of demand response costs and general swaptions
that you used to? Is it a bit elevated because of the 10-year contract?
Mike Roan: They're okay. I shouldn't say that, it’s in front of the Commerce Commission, I
guess they'll make the ultimate call. But I think at one level, you could say that
the cost base for that contract is higher than some of the demand response and
swaptions that we'd enter -- the gas backed swaptions that we’d had, but not
unrealistically or unreasonably so.
The Strategic Energy Reserve agreement, it feels like a reasonable approach
compared to the alternates, whether that be demand response or trying to find
some other measure. So not unreasonable, but we don't mind paying less.
Grant Swanepoel: Thanks, Mike. And a final question, you guys might not answer it so I'll lowball it
anyway. The consensus is sitting well above $1 billion. Are you happy with that
on an EBITDAF forecast to at least beat $1 billion if hydro plays a role?
Mike Roan: I think I'll leave that to you, Grant, for that forecast. You know, we don't provide
forecasts.
Grant Swanepoel: But cognisant of where consensus sits and not too uncomfortable with that?
Mike Roan: Yes, I think that, Grant, there are obligations on businesses to provide updates
to the extent consensus and internal forecasts very materially and we're really
mindful of those.
Grant Swanepoel: Thanks, Mike. Thanks, Helen.
Operator: Your next question comes from Vignesh Nair with UBS.
Vignesh Nair: Hi. Good morning, Mike and Helen. Thank you for the presentation. A couple of
questions. Firstly, sort of pointing to in the presentation, we’ve seen two one-in-
90-year events from a hydrology perspective this year. I think anecdotally,
you're hearing such events getting more and more frequent. Do you think
there's a pattern emerging or a structural change in terms of hydro volatility in
the business?
Mike Roan: So I'd tell you the interesting thing is no. All our modelling shows that as climate
change has a bigger, bigger -- a bigger impact on the country, that the
catchments in the south, inflows received more water in bigger doses. So that's
what all the forecasts, whether it's NIWA or any of the climate scientists, that's
what they'll forecast and show. That's the advice that we get.
It just -- sometimes it happens, Vignesh. We know the risks. I think that's the
key thing with our business. We know the risks. We know droughts are
inevitable, ultimately. And so we manage the business with the balance sheet
and a portfolio position that can manage them. That bit that really hurt us this
year was the fact that, that insurance, those swaptions that we bought, they
failed. And that, as Helen presented, I think I did the same thing at interims is
that costs a lot of money...
Helen Peters: 300 million.
Mike Roan: Yes. So I go back to my simple answer, Vignesh. No.
Vignesh Nair: Okay. Perhaps it's just recency bias. I suppose this second your question was
just a clarification on capex over the next couple of years. I think last year you
talked 3 billion in growth capex between 2024 and 2030. Firstly, is that still an
appropriate assumption?
Mike Roan: Yes, and sorry for any confusion in there, Vignesh. When I talk to 2 or 1.6, I use
a couple of numbers in there. The ambition is still through 2030 to land $3
billion worth of capital. My numbers were just different periods.
Vignesh Nair: That's just purely growth, not stay in business? It's just -- and so given that
backdrop, sort of implies your guidance into next year, positive result this year
and last year a spend of about $700 million for the three and a half years
leading into 2030. Is that still fair?
Mike Roan: Yes. Although some of the developments, you know, that don't all come, they're
not all equal, Vignesh. When you look at developments like Te Rere Hau, you
do have to land a couple of big ones in there to get to those sorts of numbers.
But look to those bigger developments that are flowing through our books and
through the pipeline, you can easily see where that money comes from or that
forecast comes from.
Helen Peters: And the big one next is Te Rere Hau.
Vignesh Nair: Yes, that's very clear. And finally, is the balance sheet still structured in a way in
which to support, I suppose, flat dividends for two dry years I think was the
previous, I suppose, standard? Is that still going to be the case through this
phase of elevated capex?
Mike Roan: I think our reference to May in the statements is we would look at it carefully,
Vignesh, if we saw another drought emerge in the short term. Like every
balance sheet, you need to restore it. So, that's what we were trying to get to
was we know what we have the capacity for, but when you do draw on that
balance sheet, you don't have infinite capacity. And we've got this incentive and
drive to invest while maintaining our credit rating.
So, we were just saying to people, if we had another big drought on our hands,
we have to look at that big drought. But otherwise, we restore the balance
sheet, build these assets and get on with business, which is what we're
forecasting to do.
Vignesh Nair: Amazing. That's all from me. Thanks, guys.
Helen Peters: Your next question comes from Stephen Hudson with Macquarie Securities.
Stephen Hudson: Hi, Mike and Helen. Thanks for the presentation. Just a few from me, just the
revaluation. I just wondered if you could call out any changed assumptions
there underpinning that $2 billion revaluation this year?
Helen Peters: I can take that one. The increase for the generation assets is largely driven by
the change in the wholesale market outlook price for the future. The only one
change that we did have to our assumptions, which we've included in the
financial statements, is that we did change our depreciation from accounting to
tax depreciation. And there's a small note of that in our financial statements. But
other than that, it's the same calculation and the same methodology that we've
had in prior years.
Stephen Hudson: And the wholesale price change, do you have a number at hand there, Helen?
Helen Peters: Offhand, I don't have it. I'm just looking to Owen. I don't have that, but we can
get it to you.
Mike Roan: Yes. And remember, we presented at our last Investor Day, we gave like a
price range and we've updated that since that's the latest variation of wholesale
market outlook has popped a little bit. Not materially so, but again, we'll give
you an update on that very openly and transparently, as we did at the last
Investor Day in November.
Stephen Hudson: Yes, very good. And then just talking of Investor Days, I think last year, the
team sort of talked about the potential for a new power station on the Waitaki
chain. I just wondered if you had an update on that potential.
Mike Roan: So it's sitting in the pipeline. Is the best I can say is we're trying to align that
with the work that we're doing on wider storage options in the Mackenzie. And
obviously, if you're looking at your structures and storage, any new power
station that you might add to your structures has got to align with development
of those options, and so it's connected to that work.
In the meantime, what you might have picked up on today, and I can't
remember how more widely we've referenced it, but as the Waitaki power
station upgrade, that's underway. And where you'll see a capacity uplift for that
power station.
Stephen Hudson: Very good. And just on contingent hydro, I think you mentioned the 545
number. There's a release and an urgency release component to that, sort of
330 and 210 roughly. You've gone for the full 540 in your Fast-Track
application?
Mike Roan: Yes, we have. But it's a great reminder that it is, from a physical perspective,
just water flow, is the lower that lake gets, the less water flows down the canal.
It's just friction slows water flow down, and so the deeper you go into that
storage, the less water actually passes through the canal.
So first 300 gigs is straightforward operationally for us. The remaining couple of
100 gigs is -- no one's been there before and so it just is harder to deliver. Our
engineers are confident that we can. The release of that water would be slower
than what you would see under normal operations. So it's a great reminder,
Steve.
Stephen Hudson: Do you have any clues on what's happening with the Tekapo contingent
storage? Do you know if that's subject to a Fast-Track allocation as well?
Mike Roan: We don't. Transpower are looking at updating their SOSFIP as well again at the
end of the year. And I should be clear. While we have tabled a Fast-Track
application for contingent storage, is we're supportive of contingent storage for
the same reasons that we laid out for others, whether it's Tekapo or down in
Clutha is you want a low-cost clean energy system to support the economy.
The way you get it is you develop your hydro resources and that contingent
water is just sitting there and available to us.
Stephen Hudson: Yes, makes sense. Thanks Mike. Just two more quick ones. It sounds like
NZAS are in market for 100MW to bring back Potline 4. Can you confirm that at
all and give us any clues as to what they intend to do beyond Potline 4?
Mike Roan: So I think they're in the market for 50MW for Potline 4, so Potline 4 is a 50-
megawatt addition. We're working with them...
Stephen Hudson: It's 50 plus is what I've heard, yes?
Mike Roan: Yes, look, they would love to expand that Potline and make it a full Potline.
They'd love to get it to 180 megawatts if they could. The reality is you've got to
balance that increase in consumption with the development of your asset base.
And so what is slowing them down is the same thing that has impacted the
electricity sector. Is we felt good about the renewable investment going in to the
market as being able to accommodate new growth. But when we lost access to
gas, another fuel is we've had to recalibrate and so the development that's
going on is to replace gas for existing users.
And so we're working with them to try and find an economic solution to them but
that aligns with the development pipeline that we've got. And I'm sure other
people are doing the same thing as we've only got capacity to support them for
a portion of that increase.
But we know they're in market talking to people about it. And we're keen to
support it because it's economic growth, but we've got balance that opportunity
against making sure we deliver for people who are already here.
Stephen Hudson: Yes, makes sense. And just last one. We've seen one of your competitors sort
of start to talk a little bit more openly about developing off balance sheet. I just
wondered if you had some early views on whether or not we could see a similar
change for you?
Mike Roan: Yes, Steve, I mean, we already are. So Te Rahui is a development. It's a joint
venture development, majority project finance. I think the total cost is $370-odd
million for Phase 1. It's a 400-megawatt development. It's in 2 stages. Stage 1
is 200MW. I think that, first, as I said, the cost is about $370 million but most of
it is project financed.
You'll have seen our work with NZ Wind Farms. That would have been a joint
venture and we've got a PPA in place with Tauhei, the joint Clarus-Harmony
Solar Farm as well. So we're open for business. And what that means is our
balance sheet, structuring with others, in whatever way that makes sense for
them and for us.
Stephen Hudson: Makes sense. Thanks, Mike and Helen.
Operator: There are no further questions at this time. I'll now hand back for any closing
remarks.
Mike Roan: Thank you. Only closing remark is to close. Thanks, everybody, for your time
this morning. Appreciate you being here and on the phones and for your
questions, though are excellent. Thank you.
[END OF TRANSCRIPT]
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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