Mercury 2026 Annual Shareholders' Meeting

2026 ASM – Chair and Chief Executive Addresses | 18 September 2026 | Page 1 of 5



Mercury 2026 Annual Shareholders’ Meeting Chair
and Chief Executive Addresses

Where: HYBRID MEETING (ONLINE AND IN PERSON AT EDEN PARK, WORLD CUP LOUNGE, AUCKLAND)
When: 1pm (NZST), 18 September 2026



[ADDRESS BY THE CHAIR: SCOTT ST JOHN]
SLIDE 2: CHAIR’S ADDRESS
Tēnā koutou katoa.
Good afternoon and thank you for joining us at Mercury’s 2026 Annual Shareholders’ Meeting. My name is Scott St
John, and I am Chair of Mercury NZ Limited.
On behalf of your directors, our Chief Executive, Stew Hamilton, our leadership team and all of Mercury, I extend a
warm welcome to you all.
I am pleased to confirm we have a quorum represented here today and therefore declare Mercury’s 2026 Annual
Shareholders’ Meeting open. Voting is open on all items of business.
SLIDE 3: AGENDA
Outlining our agenda for today. First, I will introduce you to your board.
I will then make a few comments on our financials and the broader environment in which we are operating. Stew
will then talk to Mercury’s FY26 highlights.
We will then move to resolutions and lastly have general Q&A.
Now for the introductions:
SLIDE 4: YOUR BOARD
We have, starting on my right, from the far-end:
Jasper van Halder, who is a Future Director under the Institute of Directors Future Directors Programme,
Susan Peterson, who chairs our People and Performance Committee,
Scott Scoullar,
Mark Binns,
Adrian Littlewood,
And Hannah Hamling, who chairs our Safety and Enterprise Risk Committee.
And on my left, from the far end:
Rob Hamilton, who chairs our Audit and Financial Risk Committee,
And Rachel Taulelei,
We are also joined by Mercury’s Chief Financial Officer, Richard Hopkins, who is next to Rachel,
Mercury Chief Executive Stew Hamilton,
And Company Secretary, Howard Thomas.
Also here today are
- representatives from EY who audit Mercury on behalf of the Auditor-General
- solicitors from Chapman Tripp, and

2026 ASM – Chair and Chief Executive Addresses | 18 September 2026 | Page 2 of 5

- members of Mercury’s Executive Leadership Team.
Great to have you all here with us today.
I would like to share some observations and reflections about the past year.
There is no doubt Mercury is in excellent shape and delivered impressive results this year – results underpinned by
higher volumes of generation, the development of three new renewable generation assets, and a continued focus
on disciplined cost management.
SLIDE 5: FINANCIAL OVERVIEW
From a financial point of view, Mercury delivered a strong FY26 performance, which was very pleasing after the
tough generating conditions of FY25. It was encouraging to see that all our guidance metrics for investors either
met, or exceeded expectations.
In terms of the headline numbers, net profit after tax was $321 million, up $320 million on last year, driven by
higher earnings and partly offset by non-cash movements in the fair value of our electricity derivatives.
Our EBITDAF – that is our earnings before interest, tax, depreciation, amortisation, and fair value adjustments –
was up significantly to just under $1.1 billion. This was an increase of $282 million – or 36% - on FY25, off the back
of higher hydro generation, new geothermal and wind generation and disciplined cost management.
Our operating expenses decreased to $370 million, landing $26 million lower than in FY25, despite ongoing
inflationary pressures and major transformation activity during the year.
We have also made huge strides investing in disciplined growth opportunities and continuing to deliver strong
dividends to our owners.
In FY26 around two-thirds of our FY26 operating earnings – more than $700 million – was reinvested in new and
existing renewable generation assets.
Our stay in business capital expenditure was $150 million, up 9% on last year, and in line with our long-term
planning. In particular, it is great to be under way with our $590 million hydro refurbishment programme as we
continue to invest in existing infrastructure (something New Zealand is often not great at!).
Your Board was pleased to declare a fully imputed final dividend of 17 cents per share. This brought the FY26 full-
year ordinary dividend to 27 cents per share, up 13% on last year; our 18th consecutive year of ordinary dividend
growth.
Our FY27 EBITDAF guidance has been set at $1.075 billion. This reflects the lift in new generation capacity being
available all year, continued focus on cost discipline, and it assumes we can produce 4.1 terawatt hours of hydro
generation from our assets on the Waikato River.
As I noted, the company’s balance sheet remains strong, and there is good headroom to fund our current growth
programme. That means we can keep investing in high-quality renewable generation assets, deliver sustainable
shareholder returns, deliver value for our customers, and ultimately deliver benefits for New Zealand.
We have signalled a review of our dividend policy and capital allocation settings over the next 12 months as
earnings, cash flow, and investment requirements evolve. We will keep you informed on this work. No outcome has
been predetermined, with our current policy remaining in place during the review.
We should be very proud of the role Mercury plays, not just in delivering an essential service in our core function as
an electricity generator and retailer, but also in helping build the energy system that New Zealand needs for the
decades ahead.
SLIDE 6: INVESTMENT AND THE FUTURE
I wanted to take a moment to share a few thoughts around how we decide to press ‘go’ on renewable electricity
projects.
The market is working, and Mercury is taking a leading role in delivering for New Zealand’s energy future.
Our significant investment is helping the electricity sector deliver the fastest rate of renewable generation
development in New Zealand history. This will help meet future demand growth, strengthen resilience, and support
the country’s economic prosperity.

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We use long-term earnings and reinvestment discipline to fund our renewable electricity construction pipeline. The
cost to build this infrastructure is significant, and the decisions made here flow into pricing pathways for decades.
New generation takes years to consent and construct, while demand from population growth, electrification, and
new industries (like data centres) arrive on their own timelines. We take a very deliberate approach to building the
right project at the right time to deliver a more stable price path for New Zealand and New Zealanders over the
longer term.
I am optimistic about the country’s future, powered by an increasingly renewable supply and encouraged by the
Government’s focus on clearing the path for the private sector to keep delivering for New Zealand.
The importance of having our own energy independence as a country has been brought into sharp focus with the
ramifications from geopolitical and economic uncertainty in multiple parts of the world impacting on fuel supplies
and prices.
New Zealand already benefits from an electricity system that is around 90% renewable. The next opportunity is to
lift total renewable energy use across the wider energy system from the low base of around 30% today.
Investment in new renewable generation improves security of supply, helps provide commercial customers with
greater cost certainty over time, and will underpin the transition to a much more renewable overall energy system.
Mercury has a big role to play as more and more of our transport, heating, and industrial activity transitions to
electricity.
SLIDE 7: FACING INTO CHALLENGES
The market can deliver on the transition to a low-carbon renewable energy system, but there are challenges to
navigate.
This includes ensuring the electricity system remains resilient during dry periods. We believe harnessing a mix of
solutions is the best, lowest cost way to tackle this. With the availability of gas in sharp decline, we do not see any
one single lever as being the fix.
Our activity under way to counter the challenge comprises developing renewable options ahead of demand and
committing major capital as demand becomes visible, working with customers on demand response and flexible
plans, and continued investment in firming. This includes our baseload geothermal pipeline and our involvement in
the strategic energy reserve at Huntly Power Station.
Another area of focus is ensuring electricity remains affordable and accessible for households and businesses as
the transition progresses. We know electricity bills matter to households, especially when many are facing wider
cost-of-living pressures across things like rates, fuel, rent and food.
On average, New Zealand electricity prices compare well internationally with residential retail prices the 9
th
lowest
in the OECD in 2025, and industrial prices the 5
th
lowest in the OECD.
We expect regulated lines and transmission increases to continue to be a major driver of household bill increases,
while energy increases – the part we control – should remain around CPI.
And we know the best way we can support affordability and energy security over the long-term is to invest in more
renewable electricity and deliver the infrastructure that Aotearoa needs to meet growing demand.
Achieving our ambitions requires disciplined allocation of shareholders' capital. The Board's focus is on balancing
investment in existing assets and new growth with balance sheet resilience, appropriate financial headroom, and
sustainable shareholder returns.
We want to continue to fund renewable investment at scale, deliver sustainable shareholder returns, and provide
value for our customers, communities, and Aotearoa over the long-term.
Before I close, I want to acknowledge our Chief Executive Stew Hamilton, the Mercury Executive Leadership
Team, and the 1300-strong Mercury team for the significant progress made over FY26. I also want to thank the
directors for their guidance and governance over what has been a busy and satisfying year.
And of course, a huge thank you to you – our owners. We appreciate your continued support for Mercury as we
continue to execute on our ‘Better Today, Building Tomorrow, Brighter Together’ strategy in FY27 and beyond.
Ngā mihi nui. I will now hand over to Stew to share more on our FY26 highlights.

2026 ASM – Chair and Chief Executive Addresses | 18 September 2026 | Page 4 of 5

[ADDRESS BY THE CHIEF EXECUTIVE: STEW HAMILTON]
SLIDE 8: CHIEF EXECUTIVE’S ADDRESS
Kia ora Scott and tēnā tātou katoa. Ko Stew Hamilton tōku ingoa.
It is a pleasure to be here today.
As Scott has noted, Mercury is in excellent shape, with resilient earnings, disciplined growth, and a strong balance
sheet enabling us to deliver value over the short and long term.
Our progress reflects a clear focus on being Better Today, Building for value Tomorrow and being Brighter
Together by partnering for long-term success.
SLIDE 9: SCALING RENEWABLE ENERGY
Our strong financial performance is being converted into record levels of new generation, greater system resilience
and the capacity to support New Zealand’s future economic growth.
We have completed or are nearing completion of around $1 billion of investment in three major builds. Together,
they represent 1.1 terawatt hours of new renewable generation - the equivalent of powering around 160,000
additional homes.
The Ngā Tamariki Geothermal Station expansion near Taupō, now complete, has boosted the country’s supply of
renewable, reliable baseload energy.
Meanwhile, we now have the largest wind farm in the South Island.
Last week we celebrated the opening of stage 2 of our Kaiwera Downs Wind Farm near Gore, which was delivered
on budget and on time. Together, stages 1 and 2 will generate enough electricity annually to power the equivalent
of around 96,000 homes.
The $486 million expansion project kicked off in 2024 following our signing of a long-term power purchase
agreement with New Zealand Aluminium Smelters to support the Tiwai smelter in Southland.
As well as adding renewable electricity to the grid, the expansion added around $100 million to the local and
regional economy, through employment of contractors, sub-contractors, support staff, accommodation and
hospitality.
The third major build, Kaiwaikawe Wind Farm near Dargaville, has been delivering electricity to the grid since July
and is on track to be fully operational by the end of 2026.
We are not slowing down following this period of major investment.
Our next development will be Puke Kapo Hau (Mahinerangi Stage 2) Wind Farm, west of Dunedin. We are
completing final grid connection studies with Transpower for the $506 million project. All going well, we expect to
begin construction on it later this year.
Mahinerangi Wind Farm (Stages 1 and 2) will be New Zealand's largest wind farm once complete.
Puke Kapo Hau is positioned to support growing South Island demand. You may have heard Datagrid is
developing what is expected to be New Zealand’s most advanced large-scale data centre project. This is expected
to be one potential source of significant future demand.
We have signed a 140-megawatt power purchase option agreement with Datagrid, and invested NZ $53 million for
a 12.7% minority stake in Datagrid NZ. This is an example of long-term demand, renewable development and
disciplined investment working together.
Beyond Puke Kapo Hau, we have multiple potential pathways to achieving our target of adding 3.5 terawatt hours
of new generation by 2030. This includes scaling our wind and geothermal platforms and progress on our hydro
refurbishment programme. This growth supports our FY30 EBITDAF target of $1.20–$1.25 billion.
Our next geothermal growth phase is a particularly exciting area for us as it will strengthen our portfolio, support
long-term contracting and position us to support major energy users.
Our potential grid scale battery storage at Whakamaru will further strengthen the resilience and flexibility of the
portfolio

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As electricity demand grows, our focus is on bringing forward new renewable generation to support that growth,
while continuing to maintain reliable electricity for homes, businesses, and communities across the country.
SLIDE 10: DELIVERING FOR CUSTOMERS
Turning to our customers, we are delivering more value for our customers while lowering our cost-to-serve, with our
scale, platform improvements and operating discipline continuing to lift productivity.
Our multi-product offerings across energy and telecommunications continue to be popular, with over 40% of our
customers now on two or more products. This includes 190,000 customers having fibre or wireless broadband, and
50,000 customers having mobile.
In electricity, we now have two rates available: Flat Rates and Flex Rates. Flex Rates, launched in June, are a
flexible time-of-use plan that gives eligible customers greater control over electricity spend. They are already
proving popular with both new and existing customers.
Our smart hot water control programme has also progressed, with 50,000 cylinders (20MW) under management
over winter.
We recognise the high cost of living continues to impact New Zealand consumers and businesses. We are
responding with tailored support for customers and communities.
Our care for households includes providing direct support for our customers experiencing hardship and
collaborating with community partners to ensure comprehensive support for those most in need.
We also continue to provide material support to social retailers, Nau Mai Rā and Toast Electric, and community
organisations, extending care beyond our own customer base.
Later this month, you may see us celebrating 25 years as a five-star partner of the Starship Foundation. We are
proud to have raised over $20 million with our customers for the hospital in that time.
Meanwhile, longer-term contracts continue to be a key way we are supporting businesses.
Looking forward, we anticipate continued appetite for long-term electricity supply agreements that give businesses
certainty of cost, support our investment in more renewable energy for New Zealand, and help customers electrify.
An excellent option for meeting demand from major energy users is baseload geothermal, as it is renewable and
runs 24/7, regardless of the weather.
As I mentioned earlier, scaling our geothermal platform is an exciting development focus for us. So, before Scott
moves to the formal business of the meeting, we will play a short video about our geothermal growth plans.
To conclude, we have made significant progress over FY26 and entered FY27 in a strong position.
I encourage you to view our updated strategic framework, which is available in our Integrated Report and online, for
more detail on what we are focused on to continue to grow and create value over time.
Ngā mihi nui. Thank you for your continued support.

---

MERCURY NZ LIMITED
ANNUAL
SHAREHOLDERS’
MEETING
18 SEPTEMBER 2026

CHAIR’S ADDRESS
Scott St John

Chair’s address
Chief Executive’s address
Resolutions and voting
Q&A on general business matters
AGENDA

YOUR BOARD
MARK BINNS
DIRECTOR
SCOTT ST JOHN
CHAIR
ADRIAN LITTLEWOOD
DIRECTOR
SUSAN PETERSON
DIRECTOR
ROB HAMILTON
DIRECTOR
RACHEL TAULELEI
DIRECTOR
SCOTT SCOULLAR
DIRECTOR
HANNAH HAMLING
DIRECTOR
JASPER VAN HALDER
FUTURE DIRECTOR

FINANCIAL OVERVIEW
Net profit
EBITDAF
Operating expenditure
FY26 ordinary dividend
FY27 EBITDAF guidance
FY27 dividend guidance
$321M
$1,068M
$370M
27.0 CPS
$1,075M
29.0 CPS

•Currently fastest rate of renewable
development in NZ history.

•Electricity in NZ ~90% renewable.
•Total renewable energy use only
~30% today.
INVESTMENT AND THE FUTURE

•Mix of solutions best, lowest cost way
to address dry periods.

•Renewable investment best way we
can support long-term affordability
and energy security.
FACING INTO CHALLENGES

CHIEF EXECUTIVE’S ADDRESS
Stew Hamilton

SCALING RENEWABLE ENERGY
HYDROGEOTHERMAL
WIND
3
RD
PARTY SOLAR
BESS (MW)
PLANNED TO 2035
PLANNED TO 2030
IN CONSTRUCTION
OPERATIONAL
~10 TWh annual mean
renewable generation

•Over 40% of customers with
two or more products.
•Flex Rates now available.
•Additional support provided to
those who need it.
DELIVERING FOR
CUSTOMERS

VT TRANSITION

BUSINESS AND RESOLUTIONS

Re-election of
Hannah Hamling
RESOLUTION 1
That Hannah Hamling, who
retires and is eligible for
re-election, be re-elected as
a director of the company.

Re-election of
Adrian Littlewood
RESOLUTION 2
That Adrian Littlewood, who
retires and is eligible for
re-election, be re-elected as
a director of the company.

Re-election of
Mark Binns
RESOLUTION 3
That Mark Binns, who
retires and is eligible for
re-election, be re-elected as
a director of the company.

Election of
Scott Scoullar
RESOLUTION 4
That Scott Scoullar (appointed by
the Board as a director on 17
August 2026), who retires and is
eligible for election, be elected as
a director of the company.

VOTING

Q&A:
GENERAL BUSINESS

NGĀ MIHI
THANK YOU
ANNUAL SHAREHOLDERS’ MEETING
18 SEPTEMBER 2026