Invests heavily in renewables; delivers strong performance

Results Announcement





Results for announcement to the market
Name of issuer Mercury NZ Limited (MCY)
Reporting Period 6 months to 31 December 2025
Previous Reporting Period 6 months to 31 December 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,664,000 -5%
Total Revenue $1,664,000 -5%
Net profit/(loss) from
continuing operations
$20,000 +130%
Total net profit/(loss) $20,000 +130%
Final Dividend
Amount per Quoted Equity
Security
$0.10000000
Imputed amount per Quoted
Equity Security
$0.03888889
Record Date 05/03/2026
Dividend Payment Date 01/04/2026
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security (in
dollars and cents per
security)
$3.33 $3.26
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to accompanying unaudited financial statements.
Authority for this announcement
Name of person

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

24/02/2026

Unaudited financial statements accompany this announcement.

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



NZX / ASX Announcement
HY26 Results
For the half year ended 31 December 2025
24 February 2026

Mercury invests heavily in renewables; delivers strong performance

Results overview


Mercury has delivered a strong HY26 performance and continued to
invest in renewables at scale, with half ($270 million) of the company’s
HY26 earnings reinvested in new and existing generation assets.

All three of Mercury’s major renewable developments, totalling $1 billion
investment, are progressing on budget and on time. The new Ngā
Tamariki Geothermal Station unit came online in January, while stage 2 of
Kaiwera Downs Wind Farm and Kaiwaikawe Wind Farm are both due to
begin generating in 2026.

Mercury Chief Executive Stew Hamilton said, “Our disciplined strategic
execution is delivering a strong performance today, while enabling us to
invest significantly in new renewable generation for New Zealand, helping
meet future demand growth and build resilience.

“We are on track to deliver on our plan of adding 3.5TWh of new
generation by 2030 (the equivalent of powering an additional 430,000
homes) through leveraging our strengths in wind and geothermal and our
advantaged project pipeline.

“Our contributions are supporting the fastest rate of renewable generation
development in history, helping power economic growth over the next two
decades.

“We are also investing significantly in our existing assets, with Karāpiro
Hydro Station upgrade complete and plans to invest $590 million in hydro
refurbishment over the next decade.

“Enabling our customers to shift consumption and lower their costs is
another key focus and we continue to provide additional support to our
customers in need.

“We are facing into energy system challenges with confidence, including
actively shaping and contributing to solutions for gas and firming, while
helping deliver a bright future for New Zealand powered by an increasingly
renewable energy supply.”
EBITDAF
$537m
28% on HY25
$119m on HY25
Earnings Before Interest, Tax, Depreciation,
Amortisation and Fair-value movements
(EBITDAF) was supported by above
average hydro generation and lower
operating costs from ongoing productivity
initiatives, highlighting disciplined execution
and portfolio strength.

NPAT
$20m
$87m on HY25
Net Profit After Tax (NPAT) was supported by
higher EBITDAF, partly offset by changes in
unrealised gains/losses on unhedged
electricity derivatives.

Dividend
10 cps
4% on HY25
The interim dividend was 10 cents per share
(cps).
Full year guidance of 25 cps remains on track.
The Dividend Reinvestment Plan (DRP)
continues to be offered to shareholders.

Full Year EBITDAF Guidance
$1.0b

Outlook

“Our balance sheet remains strong, with capital headroom and prudent
risk settings. This enables us to continue investing in high quality
renewable generation assets and provides flexibility to deliver sustainable
shareholder returns, value for our customers and New Zealand,” Mr
Hamilton added.



Full year 2026 EBITDAF guidance remains on
track due to strong renewable generation
volumes, disciplined execution of new
generation projects and focus on operating
costs.
Guidance may change and remains subject to
any material events, significant one-off
expenses or other unforeseen circumstances
including changes to hydrological conditions.

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


Better Today, Building Tomorrow, Brighter Together

STRATEGIC
OBJECTIVE
PROGRESS DURING HY26


Generation
development uplift
• Completed construction of the new fifth unit at Ngā Tamariki Geothermal Station and began
commissioning in January 2026. The $220m expansion will deliver an additional 390GWh
p.a., equivalent to powering around 55,000 homes.
• Advanced construction of our $486m Kaiwera Downs Stage 2 Wind Farm, with first
generation expected in FY26, full generation expected by the end of HY27.
• Advanced construction of our $287m Kaiwaikawe Wind Farm, with first and full generation
expected in HY27.
• Lodged substantive application for our Puke Kapo Hau Wind Farm development (stage 2 of
Mahinerangi Wind Farm).


Capture energy
transition growth
• Commenced 10-year contract with Fonterra to support electrification of its Waitoa site and
contract for Edgecumbe begins from July 2026.
• Commenced long-term contracts with Visy and Whakatāne Mill.
• Progressed smart hot water control programme, on track to have 50k cylinders (20MW)
under management this winter.
• Focused on targeting final investment decision on Whakamaru BESS by mid-FY27.


Rebuild sector
confidence
• Supported BCG Energy to Grow report, released in late 2025; industry Powering Change
relaunch in early 2026.
• Actively shaped and contributed to solutions for gas and firming challenges (including gas
market transparency and supporting Huntly Firming Option) and boosting the hedge market
to support vibrant competition (including supporting trading of super peak products).
• Supported efforts to streamline and speed up consenting, including inclusion of renewable
electricity in draft RMA replacements; and in Fast Track priorities.


Connected and high-
performing culture
• Embedded new strategic framework in business with measurement in place.
• Improved business performance by lifting Cultural Performance Index score by 5%.
• Revised our executive remuneration construct to ensure it incentivises the level of
performance needed to deliver on our strategy and long-term shareholder value.


Earnings
transformation
• Delivered strong HY26 EBITDAF performance and full year guidance remains on track.
• Reinvested 50% of HY26 earnings in new and existing generation assets.
• Focused on disciplined cost management, on track to deliver operating costs of $370
million in FY26.


Howard Thomas
General Counsel and
Company Secretary
Mercury NZ Limited


For investor relations queries, please contact:
Paul Ruediger
Head of Business Performance & Investor Relations
027 517 3470
investor@mercury.co.nz
For media inquiries, please contact:
Catherine Morab
Reputation and Social Impact Lead
09 282 1158
mercurycommunications@mercury.co.nz

ABOUT MERCURY NZ LIMITED
Mercury’s generation assets produce electricity from 100% renewable sources: hydro, geothermal and wind. We’re
also a retailer of electricity, gas, broadband and mobile services. We’re listed on the New Zealand Stock Exchange
and the Australian Stock Exchange with the ticker symbol ‘MCY’, with foreign exempt listed status. The New
Zealand Government holds a legislated minimum 51% shareholding of Mercury.

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INTERIM FINANCIAL
S TAT EM EN T S
2026

3 INDEPENDENT AUDITOR'S REVIEW REPORT
GROUP FINANCIAL STATEMENTS
4 CONSOLIDATED INCOME STATEMENT
4 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
5 CONSOLIDATED BALANCE SHEET
6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
6 CONSOLIDATED CASH FLOW STATEMENT
NOTES TO THE FINANCIAL STATEMENTS
7 GENERAL INFORMATION
A. FINANCIAL PERFORMANCE
7 A1. REVENUE
8 A2. SEGMENT REPORTING
B. OPERATING ASSETS
11 B1. PROPERTY, PLANT AND EQUIPMENT
11 B2. INTANGIBLE ASSETS
C. FUNDING
12 C1. SHARE CAPITAL AND DISTRIBUTIONS
12 C2. BORROWINGS
13 C3. NET INTEREST
13 C4. COMMITMENTS AND CONTINGENCIES
D. GROUP STRUCTURE
14 D1. ASSOCIATES AND JOINT ARRANGEMENTS
14 D2. RELATED PARTY TRANSACTIONS
E. RISK
16 E1. DERIVATIVE FINANCIAL INSTRUMENTS
F. O T H E R
19 F1. SUBSEQUENT EVENTS AND OTHER MATTERS
CONTENTS
Karāpiro Hydro Station2MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

Other than the review and these engagements, we
have no relationship with or interests in the Group.
Directors’ responsibilities for the interim
financial statements
The Directors are responsible, on behalf of the
Group, for the preparation and fair presentation of
these interim financial statements in accordance with
NZ IAS 34 and IAS 34 and for such internal control
as the Directors determine is necessary to enable
the preparation and fair presentation of the interim
financial statements that are free from material
misstatement, whether due to fraud or error.
The Directors are also responsible for the
publication of the interim financial statements,
whether in printed or electronic form.
Auditor’s responsibilities for the review
of the interim financial statements
Our responsibility is to express a conclusion on the
interim financial statements based on our review. NZ
SRE 2410 (Revised) requires us to conclude whether
anything has come to our attention that causes
us to believe that the interim financial statements,
taken as a whole, are not prepared, in all material
respects, in accordance with NZ IAS 34 and IAS 34.
To the shareholders of Mercury NZ Limited
The Auditor-General is the auditor of Mercury
NZ Limited and its subsidiaries (the Group). The
Auditor-General has appointed me, Emma Winsloe,
using the staff and resources of Ernst & Young, to
carry out the review of the consolidated condensed
interim financial statements (interim financial
statements) of the Group on his behalf.
Conclusion
We have reviewed the interim financial statements
of the Group on pages 4 to 19, which comprise
the consolidated balance sheet as at 31 December
2025, and the consolidated income statement,
consolidated statement of comprehensive income,
consolidated statement of changes in equity and
consolidated cash flow statement for the six months
ended on that date, and the notes, including a
summary of significant accounting policies and other
explanatory information.
Based on our review, nothing has come to our
attention that causes us to believe that the interim
financial statements of the Group do not present
fairly, in all material respects, the financial position
of the Group as at 31 December 2025, and its
financial performance and cash flows for the six
months ended on that date, in accordance with
New Zealand Equivalent to International Accounting
Standard 34: Interim Financial Reporting (NZ IAS 34)
and International Accounting Standard 34: Interim
Financial Reporting (IAS 34).
Basis for conclusion
We conducted our review in accordance with NZ
SRE 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibilities are
further described in the Auditor’s responsibilities
for the review of the interim financial statements
section of our report.
We are independent of the Group in accordance
with the independence requirements of the Auditor-
General’s Auditing Standards, which incorporate
the independence requirements of Professional and
Ethical Standard 1 International Code of Ethics for
Assurance Practitioners issued by the New Zealand
Auditing and Assurance Standards Board.
In addition to the interim financial statements
review we carry out engagements in the areas
of the financial statements audit, agreed-upon
procedures and other assurance, which are
compatible with those independence requirements.
Emma Winsloe
Ernst & Young
On behalf of the Auditor-General
Auckland, New Zealand
24 February 2026
Independent auditor’s
review report
A review of the interim financial statements in
accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures,
primarily consisting of making enquiries, primarily
of persons responsible for financial and accounting
matters, and applying analytical and other review
procedures. The procedures performed in a review
are substantially less than those performed in an
audit conducted in accordance with International
Standards on Auditing (New Zealand) and
consequently does not enable us to obtain
assurance that we would become aware of all
significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion on these interim financial statements.
A member firm of Ersnt & Young Global Limited3

GROUP FINANCIAL STATEMENTS
Turitea Wind Farm
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2025
Note
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Profit/(loss) for the period attributable to owners of the parent20 (67)1
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Change in asset revaluation reserve - - 323
Change in cash flow hedge reserve transferred to balance sheet (5) - 7
Share of movements in associates' and joint ventures' reservesD1 33 5 (9)
Tax ef fe c t - 1 (91)
Items that may be reclassified subsequently to profit or loss
Change in cash flow hedge reserve (18)86 101
Tax ef fe c t 5 (21) (23)
Other comprehensive income for the period, net of taxation 15 71 308
Total comprehensive income for the period attributable to owners of the parent 35 4 309
The accompanying notes form an integral part of these financial statements.
CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2025
Note
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
RevenueA1, A2
1,664 1,755 3,498
ExpensesA2
(1,126)(1,458)(2,917)
Depreciation and amortisationB1, B2
(178)(176)(357)
Change in the fair value of financial instrumentsE1
(262)(173)(148)
Change in the fair value of carbon units held for trading
(25)17 11
Share of profit from associates and joint venturesD1
2 4 13
Gain on disposal of carbon units
- - 18
Interest incomeC3
1 2 4
Interest expenseC3(49)(67)(121)
Profit/(loss) before tax
27 (96)1
Tax benefit/(expense)(7)
29 -
Profit/(loss) for the period attributable to owners of the parent20
(67)1
Basic and diluted earnings/(loss) per share (cents)C1 1.42
(4.80) 0.07
4
MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

SCOTT ST JOHN
CHAIR OF THE BOARD OF DIRECTORS
ROB HAMILTON
CHAIR OF THE AUDIT AND FINANCIAL
RISK COMMITTEE
The accompanying notes form an integral part of these Group financial statements.
Note
Unaudited
31 Dec 2025
$M
Unaudited
31 Dec 2024
$M
Audited
30 Jun 2025
$M
SHAREHOLDERS' EQUITY
Issued capital 486 378 416
Treasury shares - (1) -
Reserves 4,319 4,313 4,487
Total shareholders' equity 4,805 4,690 4,903
ASSETS
Current assets
Cash and cash equivalents 73 99 86
Trade and other receivables 402 440 498
Contract assets and costs 40 36 33
Inventories 97 134 126
Derivative financial instrumentsE1 156 181 172
Taxation receivable - 3 -
Total current assets 768 893 915
Non-current assets
Property, plant and equipmentB1 8,817 8,267 8,7 15
Intangible assetsB2 101 127 102
Investment in and advances to associates and joint venturesD1 119 75 95
Advances to associatesD2 4 4 4
Contract assets and costs 18 23 28
Derivative financial instrumentsE1 61 133 99
Total non-current assets9,120 8,629 9,043
Total assets 9,888 9,522 9,958
Note
Unaudited
31 Dec 2025
$M
Unaudited
31 Dec 2024
$M
Audited
30 Jun 2025
$M
LIABILITIES
Current liabilities
Payables and accruals 249 295 377
Provisions 20 1 -
BorrowingsC2 468 610 233
Derivative financial instrumentsE1 208 188 234
Taxation payable 30 - 8
Total current liabilities 975 1,094 852
Non-current liabilities
Provisions 74 85 89
BorrowingsC2 1,877 1,590 2,046
Derivative financial instrumentsE1 558 418 364
Deferred tax 1,599 1,645 1,704
Total non-current liabilities 4,108 3,738 4,203
Total liabilities 5,083 4,832 5,055
Net assets 4,805 4,690 4,903
The financial statements were authorised on behalf of the Mercury NZ Limited Board of Directors on 24 February 2026.
CONSOLIDATED BALANCE SHEET
As at 31 December 2025
5MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2025
Note
Issued
capital
$M
Retained
earnings
$M
Asset
revaluation
reserve
$M
Cash flow
hedge
reserve
$M
Other
reserves
$M
Total
equity
$M
Balance as at 1 July 2024378 369 4,334 (216)(16) 4,849
Movement in cash flow hedge reserve, net of taxationE1 - - - 66 - 66
Share of movements in associates' and joint ventures' reservesD1 - - - 5 - 5
Other comprehensive income - - - 71 - 71
Net profit/(loss) for the period - (67) - - - (67)
Total comprehensive income for the period - (67) - 71 - 4
DividendC1 - (195) - - - (195)
Distribution of treasury shares for dividend reinvestment programmeC1 - 18 - - 14 32
Balance as at 31 December 2024 (Unaudited)378 125 4,334 (145)(2)4,690
Balance as at 1 January 2025 378 125 4,334 (145) (2) 4,690
Movement in asset revaluation reserve, net of taxation - - 232 - - 232
Movement in cash flow hedge reserve, net of taxation - - - 19 - 19
Share of movements in associates' and joint ventures' reservesD1 - - - (14) - (14)
Other comprehensive income - - 232 5 - 237
Net profit for the period - 68 - - - 68
Total comprehensive income for the period - 68 232 5 - 305
DividendC1 - (135) - - - (135)
Issuance of new shares for dividend reinvestment programme 38 - - - - 38
Issue of treasury shares for dividend reinvestment programmeC1 - 2 - - 1 3
Other movements - - - - 2 2
Balance as at 30 June 2025 (Audited) 416 60 4,566 (140) 1 4,903
Balance as at 1 July 2025 416 60 4,566 (140) 1 4,903
Movement in cash flow hedge reserve, net of taxationE1 - - - (18) - (18)
Share of movements in associates' and joint ventures' reservesD1 - - 17 16 - 33
Other comprehensive income/(loss) - - 17 (2) - 15
Net profit for the period - 20 - - - 20
Total comprehensive income/(loss) for the period - 20 17 (2) - 35
DividendC1 - (203) - - - (203)
Issuance of new shares for dividend reinvestment programmeC1 70 - - - - 70
Other movements and rounding - - - (1) 1 -
Balance as at 31 December 2025 (Unaudited) 486 (123) 4,583 (143) 2 4,805
The 'Other reserves' category includes treasury shares, the foreign currency translation reserve and the share based payment reserve.
The accompanying notes form an integral part of these financial statements.
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2025
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 1,768 2,143 3,806
Payments to suppliers and related parties (1,204) (1,628) (2,848)
Payments to employees (83) (87) (169)
Interest received 1 2 4
Interest paid (47) (62) (121)
Taxes paid (84) (140) (189)
Net cash provided by operating activities 351 227 483
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for acquisition of property, plant and equipment (273)(202)(437)
Payments for acquisition of intangibles (18)(13)(30)
Payments for investments in associates and joint ventures - - (31)
Proceeds from sale of intangibles - - 33
Distributions received from/(advances paid to) associates and joint ventures 11 3 9
Net (lodgements)/return of prudential deposits 10 17 19
Net cash (used)/received in investing activities (270)(194)(437)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 404 853 3,085
Repayment of borrowings (356) (660) (2,816)
Principal repayment of lease liabilities (9) (8) (17)
Dividends paid (133) (163) (256)
Net cash used in financing activities (94)22 (4)
Net increase/(decrease) in cash and cash equivalents held (13) 55 42
Cash and cash equivalents at the beginning of the period 86 44 44
Cash and cash equivalents at the end of the period 73 99 86
Cash and cash equivalents balance comprises:
Cash held at bank at the end of the period 73 99 66
Term deposits held at the end of the period - - 20
Total cash and cash equivalents at the end of the period 73 99 86
The accompanying notes form an integral part of these financial statements.
6
MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
GENERAL INFORMATION
General information
The Group Consolidated Condensed Interim Financial Statements
(“Group Financial Statements”) are for Mercury NZ Limited (“the
Company”), as the parent, and its subsidiaries and interests in joint
arrangements (“the Group”).
The Company is incorporated in New Zealand and registered
under the Companies Act 1993. It is listed on the NZX Main Board
and on the ASX, with foreign exempt listed status. It also has
bonds quoted on the NZX debt market. The Company is an FMC
reporting entity under the Financial Markets Conduct Act 2013.
The Company is a mixed ownership model company, majority
owned by the New Zealand Government, and is bound by the
requirements of the Public Finance Act 1989. The liabilities of
the Group are not guaranteed in any way by the New Zealand
Government or by any other shareholder.
Basis of preparation
The unaudited Group financial statements have been prepared:
sIn accordance with the Financial Markets Conduct Act
2013, Generally Accepted Accounting Practice in New
Zealand (“GAAP”), the New Zealand Equivalent to International
Accounting Standard 34 Interim Financial Reporting and
International Accounting Standard 34 Interim Financial
Reporting.
sOn a historical cost basis, with the exception of certain fair
value measurements.
sUsing the same accounting policies for all reporting periods
presented.
sWith presentation in millions of New Zealand dollars, unless
otherwise stated.
sExclusive of GST, with the exception of payables and
receivables that include GST invoiced.
These Group financial statements, including the accounting
policies adopted, do not include all the information and disclosures
required in the annual financial statements. Beyond those disclosed
below, the Group financial statements have been prepared using
the same accounting policies as, and should be read in conjunction
with, the Group's annual financial statements for the year ended
30 June 2025.
Estimates and judgements
The preparation of financial statements requires judgements and
estimates that impact the application of policies and the reported
amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates.
The areas of significant estimates and judgements are as follows:
sFair value of generation plant and equipment (refer to note B1).
sValuation of derivative financial instruments (refer note E1).
Accounting standards, interpretations and amendments
not yet effective
In May 2024, the External Reporting Board (XRB) introduced
NZ IFRS 18 Presentation and Disclosure in Financial Statements
(effective for reporting periods beginning on or after 1 January
2027). NZ IFRS 18 introduces new requirements on presentation
within the statement of profit or loss, including specified totals
and subtotals. It also requires disclosure of management-defined
performance measures, and includes new requirements for the
aggregation and disaggregation of financial information based
on the identified ‘roles’ of the primary financial statements
and the notes. This standard replaces NZ IAS 1 Presentation
of Financial Statements. The Group has not yet assessed the
impact of NZ IFRS 18.
Contracts Referencing Nature Dependent Electricity –
Amendments to NZ IFRS 9 and NZ IFRS 7 was issued in May
2025 by the XRB, effective for reporting periods beginning on or
after 1 January 2026. These amendments introduce requirements
addressing contracts referencing nature-dependent electricity.
The amendments include clarifying the application of the 'own-
use' requirements; permitting hedge accounting if these contracts
are used as hedging instruments; and adding new disclosure
requirements to enable investors to understand the effect
of these contracts. The Group has not yet assessed the impact
of these amendments.
There are no other accounting standards, that are not yet effective,
that will have a material impact on the Group's financial statements.
A. FINANCIAL PERFORMANCE
NOTE A1. REVENUE
Mercury earns revenue from the following sources:
Revenue streamDescription and revenue recognition
Electricity generation, net of hedgingRevenue is received from:
• Electricity generated and sold through the New Zealand electricity spot market and physical
power purchase agreements (PPAs). Revenue is recognised at the time of generation and
at the spot price or contract price.
• Net settlement of hedged energy contracts sold or bought on the futures market, and to
generators, retailers and commercial and industrial customers and recognised at the time
of hedge settlement.
Electricity and gas sales to customers• Electricity and gas sales to customers are recognised when the energy is supplied
for customer consumption.
• Acquisition incentives such as credits and appliances are offered to new customers and treated
as individual performance obligations and a portion of the expected revenue over the life of the
total contract is allocated to the performance obligation based on their standalone selling price
and recognised immediately. Corresponding contract assets are recognised on the balance sheet
and amortised to the income statement over the contract period as the future consideration is
billed. Incremental costs to obtain and retain customers are recognised on the balance sheet as
contract costs and amortised to the income statement on a straight-line basis over the expected
average mass market customer tenure.
Telco revenueCustomers consume mobile and broadband services which are measured and billed according
to monthly billing cycles and are recognised when the service has been provided. Acquisition
incentives are treated the same as above.
Other incomeIncome is received from:
• Insurance proceeds. Income is recognised at the time the insurance proceeds are virtually
certain to be received.
• External management fees. Revenue is recognised at the time the services have been delivered.
• Sale of emission units sold to third parties. The sale is recognised at the point in time that
the emission unit is confirmed as being transferred into the acquirer's emission unit account.
7
MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
A. FINANCIAL PERFORMANCE
NOTE A2. SEGMENT REPORTING
Identification of reportable segments
The operating segments are identified by management based on
the nature of the products and services provided. Discrete financial
information about each of these operating segments is reported
to the Chief Executive, being the chief operating decision-maker,
on a monthly basis, who assesses the performance of the operating
segments on a measure of EBITDAF.
EBITDAF is a non-GAAP measure that is used internally to assess the
operating performance of the Group without the impact of non-cash
and one-off or infrequent transactions. Segment EBITDAF represents
earnings before net interest expense, tax expense, depreciation,
amortisation, unrealised change in the fair value of financial
instruments, gain/(loss) on disposal and impairments by each
segment inclusive of an allocation of central operating revenue and
costs. Operating segments are aggregated into reportable segments
only if they share similar economic characteristics.
The segment report includes a Derivatives category within the
Electricity margin. This represents the settlement (realised gains
or losses) of both hedged and unhedged electricity swaps, as well
as premiums related to electricity options.
Realised gains or losses (settlements) on unhedged electricity
swaps are reported within Electricity margin for the purposes
of EBITDAF, but are reported within the change in fair value of
financial instruments in the income statement. Realised gains
or losses (settlements) on hedged electricity swaps and premiums
on electricity options are reported within Electricity margin for
the purposes of EBITDAF, and within revenue or expenses as
appropriate in the income statement. Unrealised gains or losses
on both hedged and unhedged electricity swaps are not included
in EBITDAF and are reported in either change in fair value
of financial instruments in the income statement or in other
comprehensive income. A reconciliation of EBITDAF to profit
before tax can be found in the summary table of the note.
Identified segments
Generation/Wholesale
The generation/wholesale market segment encompasses activity
associated with electricity production, electricity trading and
generation development activities and the Company's share
of associates' earnings in TPC Holdings Limited (refer to note D1).
It includes revenue from the sale of electricity, to both commercial
and industrial customers and the customer segment, net settlement
of energy hedges and sale of trading emissions units to third parties.
It also includes transfer revenue from the customer segment to
the generation/wholesale segment for the purchase of electricity.
Customer
The customer market segment encompasses activity associated
with the sale of electricity, gas, telecommunication products and
services and other related products and services to mass market
customers in New Zealand.
Other
This represents corporate support services which are not directly
attributable to the generation/wholesale or customer segments
and the Company's share of associates' earnings in EnergySource
LLC, EnergySource Minerals LLC and Forest Partners Limited
Partnership (refer to note D1).
Inter-segment
These are transactions between segments that represent transfer
charges by the generation/wholesale segment to the customer
segment for the purchase of electricity.
For the six months ended 31 December 2025 (Unaudited)
Generation/
Wholesale
$M
Customer
$M
Other
$M
Inter-segment
$M
Total
$M
Generation429 - - - 429
Sales to customers262 745 - - 1,007
Inter-segment sales371 - - (371) -
Derivatives23 - - - 23
Electricity purchases (354) (371) - 371 (354)
Transmission and distribution (80) (318) - - (398)
Metering (3) (30) - - (33)
ELECTRICITY MARGIN648 26 - - 674
Gas Revenue - 79 - - 79
Gas purchases - (19) - - (19)
Transmission and distribution - (26) - - (26)
Metering - (6) - - (6)
GAS MARGIN - 28 - - 28
Telco Revenue - 109 - - 109
Cost of sales - ( 74) - - ( 74)
TELCO MARGIN - 35 - - 35
Other direct cost of sales (7) (24) - - (31)
TRADING MARGIN641 65 - - 706
Other Income13 1 - - 14
Employee compensation and benefits (31) (42) (11) - (84)
Maintenance expenses (31) (11) - - (42)
Other expenses (21) (19) (17) - (57)
Allocation of corporate overheads (15) (13) 28 - -
Total operating expenses (98) (85) - - (183)
Segment EBITDAF556 (19) - - 537
Summary and reconciliation to net profit before tax
Revenue 1,101 934 - (371) 1,664
Expenses (542) (953) - 371 (1,124)
Premiums for electricity options within derivatives
(presented within expenses)
(2) - - - (2)
Realised gain/(loss) on unhedged electricity swaps
(presented within change in fair value of financial instruments)
(3) - - - (3)
Share of profit/(loss) from associates and joint ventures 2 - - - 2
Segment EBITDAF 556 (19) - - 537
Change in fair value of carbon units held for trading (25)
Unrealised gain/(loss) on unhedged derivatives and hedge ineffectiveness
through income statement
(259)
Interest income 1
Interest expense (49)
Depreciation and amortisation (178)
Profit/(loss) before tax 27
SEGMENT RESULTS
8MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

For the year ended 30 June 2025 (Audited)
Generation/
Wholesale
$M
Customer
$M
Other
$M
Inter-segment
$M
Total
$M
Generation1,418 - - - 1,418
Sales to customers493 1,336 - - 1,829
Inter-segment sales638 - - (638) -
Derivatives114 - - - 114
Electricity purchases (1,452) (638) - 638 (1,452)
Transmission and distribution (134) (543) - - (67 7)
Metering (4) (61) - - (65)
ELECTRICITY MARGIN1,073 94 - - 1,167
Gas Revenue - 122 - - 122
Gas purchases - (47) - - (47)
Transmission and distribution - (43) - - (43)
Metering - (10) - - (10)
GAS MARGIN - 22 - - 22
Telco Revenue - 187 - - 187
Cost of sales - (131) - - (131)
TELCO MARGIN - 56 - - 56
Other direct cost of sales (44) (48) - - (92)
TRADING MARGIN1,029 124 - - 1,153
Other Income26 3 - - 29
Employee compensation and benefits (58) (84) (33) - (175)
Maintenance expenses ( 74) (22) - - (96)
Other expenses (48) (38) (39) - (125)
Allocation of corporate overheads (38) (34) 72 - -
Total operating expenses (218) (178) - - (396)
Segment EBITDAF837 (51) - - 786
NOTE A2. SEGMENT REPORTING (CONTINUED)
For the year ended 30 June 2025 (Audited)
Generation/
Wholesale
$M
Customer
$M
Other
$M
Inter-segment
$M
Total
$M
Summary and reconciliation to net profit before tax
Revenue2,488 1,648 - (638) 3,498
Expenses (1,852) (1,699) - 638 (2,913)
Premiums for electricity options within derivatives
(presented within expenses)
(4) - - - (4)
Realised gain/(loss) on unhedged electricity swaps
(presented within change in fair value of financial instruments)
192 - - - 192
Share of profit/(loss) from associates and joint ventures13 - - - 13
Segment EBITDAF837 (51) - - 786
Gain on disposal of carbon units18
Change in fair value of carbon units held for trading11
Unrealised gain/(loss) on unhedged derivatives and hedge
ineffectiveness through income statement
(340)
Interest income4
Interest expense (121)
Depreciation and amortisation (357)
Profit before tax1
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
9MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

For the six months ended 31 December 2024 (Unaudited)
Generation/
Wholesale
$M
Customer
$M
Other
$M
Inter-segment
$M
Total
$M
Generation699 - - - 699
Sales to customers229 685 - - 914
Inter-segment sales342 - - (342) -
Derivatives90 - - - 90
Electricity purchases (720) (342) - 342 (720)
Transmission and distribution (63) (271) - - (334)
Metering (2) (30) - - (32)
ELECTRICITY MARGIN575 42 - - 617
Gas Revenue - 65 - - 65
Gas purchases - (31) - - (31)
Transmission and distribution - (23) - - (23)
Metering - (5) - - (5)
GAS MARGIN - 6 - - 6
Telco Revenue - 98 - - 98
Cost of sales - (63) - - (63)
TELCO MARGIN - 35 - - 35
Other direct cost of sales (18) (25) - - (43)
TRADING MARGIN557 58 - - 615
Other income8 2 - - 10
Employee compensation and benefits (36) (44) (11) - (91)
Maintenance expenses (35) (15) - - (50)
Other expenses (38) (16) (12) - (66)
Allocation of corporate overheads (12) (11) 23 - -
Total operating expenses (121) (86) - - (207)
Segment EBITDAF444 (26) - - 418
NOTE A2. SEGMENT REPORTING (CONTINUED)
For the six months ended 31 December 2024 (Unaudited)
Generation/
Wholesale
$M
Customer
$M
Other
$M
Inter-segment
$M
Total
$M
Summary and reconciliation to net profit before tax
Revenue1,247 850 - (342) 1,755
Expenses (924) (876) - 342 (1,458)
Realised gain/(loss) on unhedged electricity swaps
(presented within change in fair value of financial instruments)
117 - - - 117
Share of profit/(loss) from associates and joint ventures4 - - - 4
Segment EBITDAF444 (26) - - 418
Change in fair value of carbon units held for trading17
Unrealised gain/(loss) on unhedged derivatives and hedge
ineffectiveness through income statement
(290)
Interest income2
Interest expense (67)
Depreciation and amortisation (176)
Profit before tax (96)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
10MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Opening net book value 102 132 132
Additions 14 14 30
Disposals - - (16)
Surrendered units (2) (1) (5)
Amortisation for the year (13) (18) (39)
Closing net book value 101 127 102
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Opening net book value 8,7 15 8,222 8,222
Additions 267 205 492
Disposals - (2) (4)
Gain on revaluation - - 323
Depreciation charge for the year (165) (158) (318)
Closing net book value 8,817 8,267 8,715
Property, plant and equipment includes $103m of right-of-use assets (30 June 2025: $105m, 31 December 2024: $97m).
B. OPERATING ASSETS
NOTE B1. PROPERTY, PLANT AND EQUIPMENT
NOTE B2. INTANGIBLE ASSETS
ASSETS CARRYING VALUES
All assets, except generation plant and equipment, are recognised at cost less accumulated depreciation. Fixed assets, excluding land,
are depreciated on a straight line basis over their expected useful lives.
Generation plant and equipment is originally recognised at cost and subsequently measured at fair value less accumulated depreciation.
An independent valuation is completed annually to determine the fair value of these assets.
AREA OF KEY JUDGEMENT
Generation asset valuation
The key assumptions used in the independent valuation include the forecast of the future wholesale electricity price path, generation
volumes, projected operational and capital expenditure and asset life assumptions and discount rates. In all cases there is an element
of judgement required as valuations make use of unobservable inputs. The valuation also assumes the on-going operation of large
industrial customers, no material changes to the wholesale market regulatory regime, hydro and geothermal fuel supply being
sustained over the modelled horizon and no material changes to generation consent conditions.
Generation assets are classified as Level 3 in the fair value hierarchy due to the use of non-market observable inputs
in the valuation.
Keeping all other valuation inputs constant, the valuation is most sensitive to future wholesale electricity price path and discount
rate. A review of the key inputs used in the valuation of generation assets indicates that there has been no material change in the
fair value of the generation assets as at 31 December 2025.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
11MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

Debt measured at amortised cost
Borrowing
currency
denominationMaturity Coupon
Unaudited
6 Months
31 Dec 2025
$M
Carrying
amount
Unaudited
6 Months
31 Dec 2024
$M
Carrying
amount
Audited
12 Months
30 Jun 2025
$M
Carrying
amount
Bank facilitiesNZDVariousFloating- 180 -
Commercial paper programmeNZD< 3 monthsFloating235 328 129
Debt in fair value hedge relationships
USPP - US$45mUSDDec-20254.60%- 79 73
Green retail bonds - MCY040NZDSep-20262.16%199 194 197
Green retail bonds - MCY030NZDSep-20271.56%198 190 194
Green retail bonds - MCY060NZDJun-20285.64%159 161 160
Green wholesale bondsAUDNov-20282.92%218 204 206
Green wholesale bondsNZDOct-20301.92%141 135 138
Green wholesale bondsAUDMar-20315.25%458 - 444
Capital bonds - MCY050NZDMay-20525.73%256 256 256
Capital bonds - MCY070NZDJul-20546.42%368 369 368

Lease liabilities122 115 125
Deferred financing costs(9) (11) (11)
Total carrying value of borrowings2,345 2,200 2,279
Current468 610 233
Non-current1,877 1,590 2,046
2,345 2,200 2,279
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Some borrowings are
in fair value hedge relationships and have fair value adjustments to their carrying amounts, attributable to the risk being hedged through interest rate swaps (IRS)
and cross currency IRS. Fair value is calculated using the discounted cash flow method, with applicable market yield curves adjusted for the Group's credit rating.
Fair value adjustments as at 31 December 2025 totalled a $29m increase to carrying amount (30 June 2025: $10m increase; 31 December 2024: $8m increase).
Current borrowings include all drawn bank facilities, borrowings with a contractual maturity of less than one year, borrowings due to mature in less than one
year (MCY040), accrued interest (31 December 2025: $20m; 30 June 2025 $19m, 31 December 2024: $13m) and current lease liabilities (31 December 2025:
$16m; 30 June 2025: $13m; 31 December 2024: $12m). Undrawn borrowing facilities at 31 December 2025 totalled $465m, net of commercial paper on issue
(30 June 2025: $570m; 31 December 2024: $240m).
Net debt as at 31 December 2025 totalled $2,243m (30 June 2025: $2,183m, 31 December 2024: $2,093m). Net debt is calculated as total carrying value
of borrowings (both current and non-current) less fair value adjustments and cash.
C. FUNDING
NOTE C1. SHARE CAPITAL AND DISTRIBUTIONS
NOTE C2. BORROWINGS
Unaudited
31 Dec 2025
Number of
shares (M)
Unaudited
31 Dec 2024
Number of
shares (M)
Audited
30 Jun 2025
Number of
shares (M)
Ordinary shares on issue 1,417 1,4001,407
Weighted average number of shares1,412 1,397 1,400
All ordinary shares are fully paid, do not have a par value, have equal voting rights and share equally in dividends and any surplus on winding up.
The Group issued 10,427,857 new ordinary shares (30 June 2025: 6,952,650; 31 December 2024: nil) to provide shares to shareholders that elected to reinvest
the net proceeds of cash dividends payable under the DRP.
As at 31 December 2025, the Group held no treasury shares (30 June 2025: nil, 31 December 2024: 1 million shares at $1m).
Cents per share
Unaudited
31 Dec 2025
$M
Unaudited
31 Dec 2024
$M
Audited
30 Jun 2025
$M
Dividends declared and paid
Final dividend for 2024
14.0 - 195 195
Interim dividend for 2025
9.6 - - 135
Final dividend for 2025
14.4 203 - -
203 195 330
Dividends of $203m were declared during the period (30 June 2025: $330m; 31 December 2024: $195m), however only $133m was paid in cash
to shareholders (30 June 2025: $256m; 31 December 2024: $163m). The remainder relates to amounts reinvested under the DRP.
Unaudited
31 Dec 2025
$M
Unaudited
31 Dec 2024
$M
Audited
30 Jun 2025
$M
Earnings per share
Profit/(loss) for the year attributable to owners of the parent ($M)
20 (67) 1
Weighted average ordinary shares
1,412 1,400 1,402
Less weighted average treasury shares
- (3) (2)
Weighted average ordinary shares for earnings per share (millions)
1,412 1,397 1,400
Basic and diluted earnings/(loss) per share (cents)
1.42 (4.80) 0.07
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
12MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

Contingencies
1. Kawerau Geothermal Outage Insurance Claim
On 7 June 2021, the Kawerau geothermal power station
experienced an unplanned outage as a result of a mechanical
failure. An outage was completed in June 2023 to install
replacement equipment. The Group received an initial payment
of $26m recorded as income in 2022 and a second payment of
$16m in the 2025 financial year which was recognised as income
in the 2024 financial year. The Group considers it reasonably likely
to receive additional insurance proceeds in the 2026 financial
year once the total loss to the Group as a result of the incident
has been confirmed. This will be recognised as revenue when
it is virtually certain to be received.
2. Claims relating to Geothermal Resources, Land, Fresh Water
The Group holds land and has interests in fresh water and
geothermal resources that are subject to claims that have been
brought against the Crown. The Group discloses these claims
as contingent liabilities as the value, timing and likelihood of
the claims being successful are all uncertain.
(a) Wai 2358 and associated cases
A claim by the New Zealand Māori Council relating to fresh water
and geothermal resources was lodged in 2012 with the Waitangi
Tribunal. The inquiry was divided into three stages. In earlier
stages, the Tribunal concluded that Māori have residual (but as
yet undefined) proprietary rights in fresh water and geothermal
resources, and it will be for the Government to determine how
any such rights and interests may best be addressed. Stage three
will consider law reform, including what Māori rights and interests
in geothermal resources are guaranteed and protected by the
Treaty of Waitangi, whether current law in respect of geothermal
resources is consistent with the principles of the Treaty of Waitangi
and, if not, what recommendations should be made for the reform
of the current law.
Relatedly, in 2012, individuals representing hapū affiliated with
Ngāti Tūwharetoa filed a claim in the Tribunal asserting customary
interests in certain geothermal resources, including the Mōkai,
Rotokawa and Kawerau geothermal fields. Similar claims asserting
customary rights in the Rotokawa and Ngā Tamariki geothermal
fields were filed in the Tribunal in 2024, by entities associated with
Ngāti Tahu - Ngāti Whāoa. The impact of these Waitangi Tribunal
claims on the Group’s operations, and consequently the amount
of any claim or recourse the Group may have should that impact
be adverse to the Group’s interests, are unknown at this time.
(b) Pouākani Claims Trust No 2
In 2019, the Pouākani Claims Trust No 2 and a group of kaumātua
filed a claim in the Māori Land Court seeking a declaration that
certain parts of the Waikato riverbed on which Mercury operates
hydro assets are Māori customary land, including the riverbed
beneath the Whakamaru, Maraetai I and II and Waipapa dams
and the related power stations. The claim has been amended
to include interests in the water flowing over the riverbed. Mercury
holds the fee simple or beneficial title to those parts of the Waikato
riverbed beneath the Whakamaru, Maraetai I and II and Waipapa
dams and the related power stations, and has received advice that
if the outcome of the claim adversely affects the Group’s title to,
or ability to access or operate its hydro assets, Mercury may bring
a claim seeking compensation against the Crown. The claim is
currently subject to a judicial review challenge to the Māori Land
Court’s decision to decline Mercury’s application to strike out parts
of the claim. The applicants have also filed a related claim in the
Waitangi Tribunal under the Treaty of Waitangi Act 1975, but have
not yet taken any further steps in relation to that claim.
(c) Wai Mana Whenua High Court proceedings regarding
water allocation rights
In 2025, the New Zealand Māori Council and a collective of
Māori landowners, hapu and iwi known as Wai Mana Whenua
issued proceedings against the Crown in the High Court seeking
declarations concerning Māori interests in water and water allocation.
Mercury is not a party to this litigation. The impact of these
proceedings on the Group’s operations, and consequently the
amount of any claim or recourse the Group may have should that
impact be adverse to the Group’s interests, are unknown at this time.
3. Letters of Credit and Guarantees
From time to time the Group will issue letters of credit and
guarantees to various suppliers in the normal course of business.
However, there is no expectation that any outflow of resource
relating to these letters of credit or guarantees will be required.
4. Other Contingent Assets or Liabilities
The Group has no other material contingent assets or liabilities.
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Capital commitments 429 833 601
NOTE C4. COMMITMENTS AND CONTINGENCIES
Capital commitments
Capital commitments include purchases of both property, plant
and equipment (PP&E) and intangibles. PP&E commitments
include contracts for construction of Kaiwera Downs Stage II and
Kaiwaikawe wind farms, installation of an additional geothermal
OEC unit at Ngā Tamariki, replacement of the three intake gates at
the Karapiro Power Station, and improvement of the left abutment
at Arapuni to mitigate water seepage. Intangible commitments
are contracts to purchase New Zealand emissions trading scheme
(NZ ETS) units. In the event the NZ ETS is terminated, the existing
purchase agreements, which cover the two year period from the
end of the reporting period, will also terminate.
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Interest expense on borrowings55 67 124
Interest expense on lease liabilities4 3 7
Unwind of discount on provisions3 2 4
Less capitalised interest (13) (5) (14)
Total interest expense49 67121
Interest income(1) (2) (4)
Net interest expense48 65 117
Interest costs related to the construction of new generation assets are capitalised. The average rate used to determine the amount of borrowing costs eligible
for capitalisation as at 31 December 2025 was 4.75% (30 June 2025: 5.33%; 31 December 2024: 5.88%).
NOTE C3. NET INTEREST EXPENSE
Operating commitments
As part of its day-to-day operations, the Group enters various
operating arrangements and commitments with third parties
to support and enhance the Group’s long-term licence to operate,
provide access to land, and use of natural resources. These
operating arrangements may be short-, medium-, or long-term
in nature.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
13MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

D. GROUP STRUCTURE
NOTE D1. ASSOCIATES AND JOINT ARRANGEMENTS
The Group financial statements include the following:
NOTE D2. RELATED PARTY TRANSACTIONS
Majority shareholder
The majority shareholder of Mercury NZ Limited is the New Zealand Government. Transactions cover a variety of services including energy,
postal, travel and tax with various other Government-owned entities.
Transactions with related parties
The Group entered into a number of contracts with other Crown-controlled entities to hedge against wholesale electricity price risk, the
most significant being a contract for difference with Genesis Energy Limited for generation produced at the Waipipi wind farm. During
the period, the Group also entered into the Strategic Energy Reserve – Huntly Firming Option with Genesis Energy Limited, Contact Energy
Limited and Meridian Energy Limited, an arrangement designed to support security of supply. All entities in this arrangement, except
Contact Energy Limited, are Crown-controlled entities.
Mercury NZ Limited also has investments in subsidiaries, associates and joint arrangements, all of which are considered related parties.
As these are consolidated financial statements, transactions between related parties within the Group have been eliminated. Consequently,
only those transactions between entities which have some owners external to the Group have been reported below:
Interest held
Name of entityPrincipal activityType
Unaudited
31 Dec 2025
Unaudited
31 Dec 2024
Audited
30 Jun 2025Country
TPC Holdings LimitedInvestment holdingAssociate
1
25.00%25.00%25.00%New Zealand
RotokawaSteamfield operationJoint operation64.80%64.80%64.80%New Zealand
Nga Awa PuruaElectricity generationJoint operation65.00%65.00%65.00%New Zealand
EnergySource LLCInvestment holdingJoint venture
1
20.86%20.86%20.86%United States
EnergySource Minerals LLCMineral extractionJoint venture
1
10.17%17.7 3%11.37%United States
Forest Partners Limited PartnershipForestry managementAssociate
1
10.00% - 10.00%New Zealand
1
Associates and joint ventures are equity accounted under NZ IAS 28 Investments in Associates and Joint Ventures.
AssociatesJoint ventures
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Balance at the beginning of the period
89 63 63 6 6 6
Additional investment during the year
- - 31 - - -
Share of earnings/(losses)
2 4 13 - - -
Share of movement in other comprehensive
income and reserves 33 5 (9) - - -
Distributions received during the year
(11) (3) (9) - - -
Balance at the end of the period
113 69 89 6 6 6
Transaction value
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Associates
Management fees and service agreements received 9 13 22
Energy contract settlements (paid)/received (3) 14 17

Joint operations
Management fees and service fees received and paid 13 15 30
Energy contract settlements (paid)/received (8) 7 (15)
An advance to TPC Holdings Limited of $4m (30 June 2025: $4m; 31 December 2024: $4m) is interest free and is repayable on demand
subject to certain conditions being met.
The long-term advance to our Rotokawa joint operation partner of $1m (30 June 2025: $1m; 31 December 2024: $2m) carries a floating
interest rate. Repayments under the advance are linked to the level of receipts under the geothermal energy supply agreement. There is
no fixed repayment date; the agreement will terminate on receipt of any outstanding balances.
No related party balances have been written off, forgiven, or any impairment charge booked.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
14MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

NOTE D2. RELATED PARTY TRANSACTIONS (CONTINUED)
Transaction value
Unaudited
6 Months
31 Dec 2025
$000
Unaudited
6 Months
31 Dec 2024
$000
Audited
12 Months
30 Jun 2025
$000
Key management personnel compensation
(paid and payable) comprised:
Directors’ fees 603 539 1,164
Benefits for the Chief Executive and Chief Financial Officer:
Salary and other short-term benefits 1,600 2,370 4,271
Share-based payments 69 142 284
2,272 3,051 5,7 19
Other transactions with key management personnel
Key management personnel are those people with responsibility and authority for planning, directing and controlling the activities of the
Group. Key management personnel for the Group are considered to be the Directors, the Chief Executive and the Chief Financial Officer.
The Chief Executive and the Chief Financial Officer provide directorship services to subsidiaries, associates and joint operations as part
of their employment without receiving any additional remuneration.
The Group purchases directors and officers insurance for the benefit of key management personnel in relation to the services they provide
to the Group.
Ngā Tamariki Geothermal Station
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS15

E. RISK
NOTE E1. DERIVATIVE FINANCIAL INSTRUMENTS
The Group uses a range of derivative contracts in order to manage
risk and hedge against cash flow and fair value volatility. It is the
Group's policy to apply hedge accounting to reduce volatility in
profit or loss, and where possible, derivatives are designated into
hedging relationships under NZ IFRS 9 Financial Instruments as
either cash flow or fair value hedges.
Interest rate and cross currency interest rate derivatives
Interest rate and cross currency swaps are used to manage interest
rate risks. Interest rate swaps where we pay-fixed, and receive-
floating interest rates are designated as cash flow hedges in a
relationship with a portion of floating rate debt exposure. Interest
rate swaps where we receive-fixed, and pay-floating interest rates
are designated as fair value hedges in a relationship with the swap
rate on fixed rate bonds. Cross currency swaps are designated
as both fair value and cash flow hedge relationships with the USPP
and Australian denominated green wholesale bonds (refer note C2)
depending on the component of the debt being hedged: the risk
free (swap) rate as a fair value hedge; and the credit margin as
a cash flow hedge.
Foreign exchange derivatives
Foreign exchange forward contracts are designated as cash flow
hedges in a relationship with forecast purchases of inventory
and capital equipment, mainly for maintenance and construction
of generation assets.
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
CURRENT ASSETS
Electricity price derivative 129 139 143
Interest rate derivative 14 5 9
Cross currency interest rate derivative 7 21 20
Foreign exchange derivative 6 16 -
156 181 172

CURRENT LIABILITIES
Electricity price derivative 183 162 197
Interest rate derivative 24 22 23
Cross currency interest rate derivative 1 4 5
Foreign exchange derivative - - 9
208 188 234

NON-CURRENT ASSETS
Electricity price derivative 28 113 83
Interest rate derivative 14 20 16
Cross currency interest rate derivative 19 - -
61 133 99

NON-CURRENT LIABILITIES
Electricity price derivative 531 370 326
Interest rate derivative 27 46 35
Cross currency interest rate derivative - 2 3
558 418 364
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Change in fair value of financial instruments
Realised gain/(loss) on unhedged electricity swaps (3) 117 192
Unrealised gain/(loss) on unhedged derivatives and hedge ineffectiveness through
income statement
(259) (290) (340)
Change in fair value of derivative financial instruments per income statement (262) (173) (148)
Electricity contracts
Where possible, electricity price derivatives are designated as
cash flow hedges in a relationship with forecast electricity sales
and purchases. Exceptions are swaps and options used for trading
(electricity futures, options and financial transmission rights)
as well as other contracts that have been deemed not eligible
for hedge accounting due to price reset mechanisms, termination
options or variable volume structures (e.g. wind and solar power
purchase agreements).
The fair values of derivative financial instruments are summarised
in the following table:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
16MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

AREA OF KEY JUDGEMENT
Fair value estimation
Valuation techniques
All fair value balances are assigned to a fair value hierarchy level as defined by NZ IFRS 13 Fair Value Measurement. No transfers
occurred between hierarchy levels in the period ended 31 December 2025.
The following table provides a breakdown of the fair value of derivatives by the source of key valuation inputs:
NOTE E1. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Unaudited
31 December 2025
Quoted
market price
Market
observable inputs
Non-market
observable inputsTotal
Valuation technique
Level 1
$M
Level 2
$M
Level 3
$M$M
Financial assets
Derivative instruments
Electricity price derivatives 7 - 150 157
Interest rate derivatives - 28 - 28
Cross currency interest rate derivatives - 26 - 26
Foreign exchange rate derivatives - 6 - 6
7 60 150 217
Financial liabilities
Derivative instruments
Electricity price derivatives 93 - 621 714
Interest rate derivatives - 51 - 51
Cross currency interest rate derivatives - 1 - 1
Foreign exchange rate derivatives - - - -
93 52 621 766
Net financial asset/(liability) (86) 8 (47 1) (549)
Audited
30 June 2025
Quoted
market price
Market
observable inputs
Non-market
observable inputsTotal
Valuation technique
Level 1
$M
Level 2
$M
Level 3
$M$M
Financial assets
Derivative instruments
Electricity price derivatives 13 - 213 226
Interest rate derivatives - 25 - 25
Cross currency interest rate derivatives - 20 - 20
Foreign exchange rate derivatives - - - -
13 45 213 271
Financial liabilities
Derivative instruments
Electricity price derivatives 97 - 426 523
Interest rate derivatives - 58 - 58
Cross currency interest rate derivatives - 8 - 8
Foreign exchange rate derivatives - 9 - 9
97 75 426 598
Net financial asset/(liability) (84) (30) (213) (327)
Unaudited
31 December 2024
Quoted
market price
Market
observable inputs
Non-market
observable inputsTotal
Valuation technique
Level 1
$M
Level 2
$M
Level 3
$M$M
Financial assets
Derivative instruments
Electricity price derivatives 13 - 239 252
Interest rate derivatives - 25 - 25
Cross currency interest rate derivatives - 21 - 21
Foreign exchange rate derivatives - 16 - 16
13 62 239 314
Financial liabilities
Derivative instruments
Electricity price derivatives 81 - 451 532
Interest rate derivatives - 68 - 68
Cross currency interest rate derivatives - 6 - 6
Foreign exchange rate derivatives - - - -
81 74 451 606
Net financial asset/(liability) (68) (12) (212) (292)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
17MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

Valuation of Level 1 financial instruments
Level 1 financial derivatives include ASX futures and financial transmission rights with fair values determined using quoted prices.
These prices represent regularly occurring market transactions on an orderly basis.
Valuation of Level 2 financial instruments
The fair values of Level 2 derivatives are determined using discounted cash flow models. Listed below are the Level 2 derivatives
and the key inputs to the valuation model.
Valuation of Level 3 financial instruments
The Group uses various methods in estimating the fair value of an electricity financial derivative. Where the fair value of a derivative is
calculated as the present value of the estimated future cash flows of the instrument, there are two key inputs being used:
The wide range in discount factors are driven by entering into longer term derivative contracts. Forward electricity spot prices in the
front end of the curve in HY26 were higher, driven by futures price, thus resulting in a higher maximum price of $189/MWh in HY26
compared to $182/MWh in FY25.
The selection of valuation inputs requires significant judgement, and therefore there is a range of reasonable assumptions in respect
of these inputs that could be used in estimating the fair values of these derivatives. Maximum use is made of observable market data
when selecting inputs and developing assumptions for the valuation technique.
DerivativeValuation Input
Cross Currency Interest Rate Swaps (CCIRS)Forward interest rate price curve and foreign exchange rate curve
Interest Rate SwapsForward interest rate curve
Foreign Exchange ContractForward foreign exchange rate curves
Unaudited
6 Months
31 Dec 2025
Unaudited
6 Months
31 Dec 2024
Audited
12 Months
30 Jun 2025
Price path$ 109/MWh to $ 189/MW h$98/MWh to $177/MWh$100/MWh to $182/MWh
Discount rate2.6% to 14.7%3.3% to 10.8%3.2% to 12.1%
Reconciliation of Level 3 unrealised fair value movements
The unrealised Level 3 fair value movements in the Group's Consolidated Income Statement are recognised within 'change in the fair value
of financial instruments', along with realised gains/losses on financial instruments not in a hedging relationship.
Sensitivity of Level 3 fair value measurements
The Group uses unobservable inputs to measure the fair value of Level 3 electricity derivatives. These inputs are most sensitive to changes
in electricity forward prices. These electricity price derivatives are in a net liability position on the balance sheet. The Group has a net 'sell'
exposure with fixed strike prices so that an increase in the forward price would likely result in a decrease in fair value and a decrease in the
forward price would likely result in an increase in fair value.
Financial instruments in
a hedging relationship
Financial instruments not in
a hedging relationship
Total
Unaudited
6 Months
31 Dec
2025
$M
Unaudited
6 Months
31 Dec
2024
$M
Audited
12 Months
30 Jun
2025
$M
Unaudited
6 Months
31 Dec
2025
$M
Unaudited
6 Months
31 Dec
2024
$M
Audited
12 Months
30 Jun
2025
$M
Unaudited
6 Months
31 Dec
2025
$M
Unaudited
6 Months
31 Dec
2024
$M
Audited
12 Months
30 Jun
2025
$M
Opening balance sheet position (155) (259) (271) (58) 223 236 (213) (36) (35)
New contracts (68) - (3) 1 2 3 (67) 2 -
Matured contracts (1) 49 102 (4) 5 - (5) 54 102
Gains, losses, and ineffectiveness - - -
Through the income statement - (10) 8 (224) (257) (297) (224) (267) (289)
Through other
comprehensive income
38 35 9 - - - 38 35 9
Closing balance sheet position (186) (185) (155) (285) (27) (58) (471) (212) (213)
NOTE E1. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
18MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

F. O T H E R
NOTE F1. SUBSEQUENT EVENTS AND OTHER MATTERS
The Board has approved a fully imputed interim dividend of 10.0 cents per share to be paid on 1 April 2026. For the interim dividend, the
Group plans to continue with its dividend reinvestment plan, with a strike price to be determined by the average of daily volume weighted
average sale price for a share, calculated on all price setting trades of shares that will take place through the NZX Main Board over a period
of five trading days starting on 9 March 2026, less a 2% discount.
There are no other material events subsequent to balance date that would affect the fair presentation of these financial statements.
Deferred 'inception' gains/(losses) on Level 3 derivatives
There is a presumption that, when derivative contracts are entered into at an arm's length basis, the fair value at inception is nil, excluding
any consideration paid or payable. The contract price of non exchange traded electricity derivative contracts are agreed on a bilateral basis,
the pricing for which may differ from the prevailing derived market price curve (ASX futures and the Group's internal price curve) for a variety
of reasons. In these circumstances, an inception adjustment is made to bring the initial fair value of the contract to zero at inception.
This inception adjustment is amortised over the life of the contract by adjusting the future price path used to determine the fair value
of the derivatives by a constant amount to return the initial fair value to zero.
The table below details the movements in inception value gains/(losses) included in the fair value of derivative financial assets and liabilities:
Unaudited
6 Months
31 Dec 2025
$M
Unaudited
6 Months
31 Dec 2024
$M
Audited
12 Months
30 Jun 2025
$M
Electricity price derivatives
Opening deferred inception gains/(losses) (17) (1) (1)
Deferred inception gains/(losses) on new hedges(100) 8 4
Deferred inception(losses)/gains realised during the year22 (11) (20)
Closing inception gains/(losses)(95) (4) (17)
NOTE E1. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Ohakuri Hydro Station
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2025
MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS19

SHAREHOLDER ENQUIRIES
You can view your investment portfolio, change your address, supply
your email, update your details or payment instructions online:
www.investorcentre.com/nz. You will need your CSN and FIN to access
this service.
Enquiries may be addressed to the Share Registrar
(see Directory for contact details).
INVESTOR INFORMATION
Our website at mercury.co.nz is an excellent source of information
about what’s happening within the company.
Our Investor Centre allows you to view all regular investor
communications, information on our latest operating and financial
results, dividend payments, news and share price history.
ELECTRONIC SHAREHOLDER COMMUNICATION
It is quick and easy to make the change to receiving your reports
electronically. This can be done either:
sOnline at www.investorcentre.com/nz by using your CSN
and FIN (when you log in for the first time). Select 'My Profile'
and 'Communication Preferences' to update your details, or;
sBy contacting Computershare Investor Services Limited
(see Directory for contact details).
BOARD OF DIRECTORS
Scott St John, Chair
Mark Binns
Rob Hamilton
Hannah Hamling
Adrian Littlewood
Susan Peterson
Rachel Taulelei
EXECUTIVE LEADERSHIP TEAM
Stewart Hamilton
Chief Executive
Richard Hopkins
Chief Financial Officer
Craig Neustroski
Chief Strategy and Transformation Officer
Suraiya Phillimore-Smith
Chief Customer Officer
Kevin Taylor
Chief Operating Officer - Generation
Catherine Thompson
Chief Sustainability Officer
Tim Thompson
Executive GM Wholesale
Matt Tolcher
Executive GM Generation Development
COMPANY SECRETARY
Howard Thomas
General Counsel and Company Secretary
INVESTOR RELATIONS
& SUSTAINABILITY ENQUIRIES
Paul Ruediger
Head of Business Performance & Investor Relations
Phone: +64 27 517 3470
Email: investor@mercury.co.nz
REGISTERED OFFICE IN NEW ZEALAND
Mercury NZ Limited
33 Broadway, Newmarket, Auckland 1023
P O Box 90399
Auckland 1142
New Zealand
REGISTERED OFFICE IN AUSTRALIA
c/– TMF Corporate Services
(Australia) Pty Limited
Suite 1, Level 11, 66 Goulburn Street,
Sydney, NSW 2000
Phone: +61 2 8988 5800
SHARE REGISTRAR – NEW ZEALAND
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna,
Auckland 0622
Private Bag 92119
Victoria Street West
Auckland 1142, New Zealand
Phone: +64 9 488 8777
Email: enquiries@computershare.co.nz
Web: www.investorcentre.com/nz
SHARE REGISTRAR – AUSTRALIA
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street, Abbotsford,
VIC 3067,
GPO Box 3329, Melbourne,
VIC 3001, Australia
Phone: 1 800 501 366 (within Australia)
Phone: +61 3 9415 4083 (outside Australia)
Email: enquiry@computershare.co.nz
INFORMATION FOR
SHAREHOLDERS
DIRECTORY
20MENUMERCURY 2026 INTERIM FINANCIAL STATEMENTS

---

Distribution Notice





Section 1: Issuer information
Name of issuer Mercury NZ Limited
Financial product name/description Mercury NZ Limited ordinary shares
NZX ticker code MCY
ISIN (If unknown, check on NZX
website)
NZMRPE0001S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date 05/03/2026
Ex-Date (one business day before the
Record Date)
04/03/2026
Payment date (and allotment date for
DRP)
01/04/2026
Total monies associated with the
distribution
$141,739,302
Source of distribution (for example,
retained earnings)
Income available for distribution
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.13888889
Gross taxable amount $0.13888889
Total cash distribution $0.10000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01764706
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.03888889
Resident Withholding Tax per
financial product
$0.00694444

Section 4: Distribution re-investment plan
DRP % discount (if any)
2.0%
Start date and end date for
determining market price for DRP
09/03/2026 13/03/2026
Date strike price to be announced (if
not available at this time)
16/03/2026
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New issue
DRP strike price per financial product
TBC
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
06/03/2026
Section 5: Authority for this announcement
Name of person

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

24/02/2026