Contact Energy – FY20 Results and Integrated Report

contactenergy.co.nz

MEDIA RELEASE: 10 August 2020
Contact delivers for customers, employees and
shareholders despite Covid-19 disruption
Key financial metrics

12 months ended

30 June 2020

(FY20)

Comparison against
continuing operations
in FY19³

12 months ended

30 June 2019

(FY19)

EBITDAF
1

$451m

↓

-11% from $505m

↓

-13% from $518m

Profit
$125m

↓

-26% from $170m

↓

-64% from $345m

Underlying profit
$129m

↓ -22% from $166m ↓

-27% from $176m

Dividend (per share)
39.0 cents


-

39.0 cents

Operating free cash
flow per share
2

$290m

↓

-13% from $334m

↓

-15% from $341m


Highlights

 Resilient through COVID-19 lockdown

 Confirmed world-class geothermal resource at Tauhara after successful appraisal
programme

 Decarbonisation-driven demand momentum with a long-term 13MW renewable
agreement signed and demand management platform customer base growing quickly

 Navigated risks relating to constrained natural gas supply via reduction in fixed priced
electricity sales and prudent management of gas and hydro storage

 More than 500,000 customer connections across electricity, gas and broadband

 New Chief Executive Officer (CEO) and new Chief People Officer (CPO) appointed to
leadership team

 Cost efficiency focus delivering, with cash spent on continuing ‘stay in business’ capital
projects down by $7m (12%) and $9m (4%) reduction in other operating costs from
continuing operations.

 Focus on Tiwai smelter exit and executing mitigation options, including putting
the Tauhara project on hold and co-funding accelerated work programme by
Transpower


1
Refer to slides 54-55 of the 2020 full year results presentation for a definition and reconciliation between statutory profit and the non-GAAP profit measures earnings
before net interest expense, tax, depreciation, amortisation, change in fair value of financial instruments and other significant items (EBITDAF) and underlying profit (profit
excluding significant items that do not reflect Contact’s ongoing performance).
² Refer to Note A3 in the Contact FY20 Financial Statements for a definition and reconciliation between cash flow from operating activities and the non-GAAP measure
operating free cash flow. Operating free cash flow represents cash available to repay debt, to fund distributions to shareholders and growth capital expenditure.
3
Sale of Rockgas LPG which completed on 30 November 2018

contactenergy.co.nz


New Zealand’s second-largest energy company Contact Energy (‘Contact’) released its full
year financial results for the 12 months to 30 June 2020 (‘FY20’) this morning.

Contact Chair Rob McDonald said Contact had delivered a “solid” financial result. “The second
half of the year has been in line with expectations despite the impact of COVID-19. This follows
on from a more challenging first half of the year which was impacted by poor gas availability.

“Profit from continuing operations was down 26 per cent to $125m but we’re pleased to deliver
investors a 39 cents per share annual dividend this year which is in line with last year. The
results are underpinned by Contact’s operational efficiency, high quality and flexible portfolio
of gas-fired and renewable generation assets, and the continued strength of our balance
sheet.”

Mr McDonald said he was proud of the way Contact had come through the pandemic response
and lockdown period. “It was an extraordinary time, but overall Contact coped extremely well
in challenging, uncharted circumstances. There was a real focus on crisis management and
doing right by Contact’s customers, our team of more than 900 people and broader New
Zealand too.”

There were changes to the Contact leadership team in FY20, with new CEO Mike Fuge
starting in February 2020, and Jan Bibby joining as CPO in November 2019. In July 2020
James Kilty was promoted to Deputy CEO, and Jacqui Nelson joined the leadership team as
Chief Generation Officer.

Financial performance

CEO Mike Fuge said Contact reported a statutory profit for FY20 of $125m. “This was $220m
lower than FY19, but last year included a $170m gain on the sale of the Rockgas business
and the Ahuroa gas storage facility.”

He said EBITDAF from continuing operations was down $54m (11%) on last year to $451m in
FY20. “This was due to a combination of lower renewable generation, lower wholesale prices
and the impact of rising costs of thermal generation and restricted gas supply.”

He said income from electricity market making was also down $10m on the prior year following
“volatile swings” in the wholesale market during the large inter-island transmission outage
early in 2020, pleasingly the market headwinds were partially offset by strong cost control with
fixed costs down by $13m.

Mr Fuge said the increasing cost of gas and carbon was “accelerating the case” for the
substitution of Contact’s Taranaki Combined Cycle thermal plant at Stratford with new
renewables. The useful life of the plant has been reduced, increasing depreciation by $15m
year-on-year.

Contact’s operating free cash flow for FY20 was $290m, down 15 per cent on FY19. “This was
due to a combination of lower operating earnings, partially offset by lower stay-in-business
capital expenditure and interest costs,” Mr Fuge said.

Cash tax of $70m was paid, up $23m on FY19 and reflecting the increased tax payable on
the strong profit realised in the last financial year.

The Board approved a final ordinary dividend of 23 cents per share (imputed by up to 15 cents
per share for qualifying shareholders) to be paid on 15 September 2020. An interim ordinary

contactenergy.co.nz
dividend of 16 cents per share was paid in April 2020, meaning the annual dividend declared
for FY20 is 39 cents per share.

Customer business: 500,000 connections, driving digitisation

Mr Fuge said Contact’s Customer business now had more than 500,000 connections across
electricity, gas and broadband. In June more than 10,000 energyclubnz customers joined
Contact after that retailer exited the market. “We’re continuing our transformation to becoming
a digital-first retailer, with more than 100,000 customers now using our apps and website for
self-service each month. Not only have customers told us they prefer this engagement channel
but this has eased demand on our traditional service channels, with call volumes reducing
from 850,000 in FY19 to 760,000 in FY20.”

Despite strong operational performance and underlying efficiency improvements, EBITDAF in
the Customer business was down $17m year-on-year to $50m, as rising costs for electricity,
gas and carbon were not recovered in the year as average electricity tariffs were flat year-on-
year.

Wholesale business: diverse assets, managing risk and advancing renewable options

Mr Fuge said Contact’s Wholesale business was continuing to work with business customers,
partners and suppliers to decarbonise New Zealand’s energy sector. “We’re helping our
commercial and industrial customers with their transition to low carbon fuels, with new
products and renewable substitutes. We aim to displace 1PJ of industrial heat with electricity
by 2022 — roughly equivalent to the electricity used by all the houses in Taupō in a year.”

He said the difficult wholesale market conditions driven by a shortage of gas in the first half of
the financial year showed the value of diverse generation assets, Contact’s strong risk
management systems and executable renewable development options.

EBITDAF in the Wholesale business reduced by $38m to $425m year-on-year, as production
from hydro-generation was restricted by transmission constraints and dipped by 11 per cent
(479GWh) despite strong hydro inflows. Thermal generation costs per unit increased by 1 per
cent after a $6m increase in gas storage facility costs.

Mr Fuge said New Zealand was undergoing a shift from reliance on fossil fuels to renewable
electricity. “This transformation has impacted Contact’s near-term profitability as thermal costs
rise, but over the longer term we are well-positioned to connect renewable energy to our
customers.”

Looking ahead

Mr Fuge said there was a focus on last month’s announcement that Rio Tinto was preparing
to close the Tiwai Point smelter in August 2021. “We’ve made no secret of our view that we
were disappointed about this – we believe the best interests of NZ Inc are served by the
smelter remaining operational for at least the next five years. The inability for this to happen
will be bad news not only for Southland, but also for global emissions and New Zealand’s
renewable energy aspirations.”

He said Contact was well-placed to emerge in “a stronger competitive position over the longer
term” and that it is under way with mitigating the impact of the smelter’s looming closure. “One
major decision was pausing our world-class, shovel-ready geothermal project at Tauhara. It is
on hold for now but we believe it is a matter of when – not if – Tauhara will play an important
role in New Zealand’s transition to a low-carbon future. However we must get a clearer picture
of demand before we make any final decision to proceed with this $600m investment.”

contactenergy.co.nz

He said Contact was also “actively engaged” in negotiations for revised terms for electricity
supply to the Tiwai smelter and has been co-funding an accelerated work programme by
Transpower to help move renewable electricity generation in the lower South Island north.

“We’re also working with commercial and industrial customers to deliver reductions to their
carbon footprints by connecting them with low-carbon, reliable electricity. We recently signed
a long-term 13MW renewable agreement with Open Country Dairy and anticipate this will be
the first of many.”

Mr Fuge said Contact would remained focussed on improving operational efficiency and
leveraging its lean operating model. “We’re excited about the future. We’re a strong company
with plenty of options and opportunities in front of us. We have a robust balance sheet, an
excellent portfolio of assets and a very capable team.”

-ends-

Investor enquiries: Matthew Forbes +64 21 072 8578
Media enquiries: Paul Ford +64 21 809 589

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Contact Energy Limited
Reporting Period 12 months to 30 June 2020
Previous Reporting Period 12 months to 30 June 2019
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$2,073,000 (15.7)%
Total Revenue $2,073,000 (17.7)%
Net profit/(loss) from
continuing operations
$125,000 (26.4)%
Total net profit/(loss) $125,000 (63.8)%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.23000000
Imputed amount per Quoted
Equity Security
$0.05833333
Record Date 27 August 2020
Dividend Payment Date 15 September 2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$3.08 $3.27
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood

Authority for this announcement
Name of person

authorised
to make this announcement
Kirsten Clayton, Company Secretary
Contact person for this
announcement
Matthew Forbes, GM Corporate Finance
Contact phone number +64 21 072 8578
Contact email address investor.centre@contactenergy.co.nz
Date of release through MAP

10/08/2020

Audited financial statements accompany this announcement.

---

Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Contact Energy Limited
Financial product name/description Ordinary shares
NZX ticker code CEN
ISIN (If unknown, check on NZX
website)
NZCENE0001S6
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 27/08/2020
Ex-Date (one business day before the
Record Date)
26/08/2020
Payment date (and allotment date for
DRP)
15/09/2020
Total monies associated with the
distribution
1

$165,170,333.32
(718,131,884 shares @ $0.23 / share)
Source of distribution (for example,
retained earnings)
Operating Free Cash Flow
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.28833333
Gross taxable amount
3
$0.28833333
Total cash distribution
4
$0.23000000
Excluded amount (applicable to listed
PIEs)
N/A – Not a listed PIE
Supplementary distribution amount $0.02647059
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

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.

If fully or partially imputed, please
state imputation rate as % applied
6

20%
Imputation tax credits per financial
product
$0.05833333
Resident Withholding Tax per
financial product
$0.03681667
Section 4: Distribution re-investment plan (if applicable) – Not applicable
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP
[dd/mm/yyyy] [dd/mm/yyyy]
Date strike price to be announced (if
not available at this time)
[dd/mm/yyyy]
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
[dd/mm/yyyy]
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Kirsten Clayton, Company Secretary
Contact person for this
announcement
Matthew Forbes, GM Corporate Finance
Contact phone number
+64 21 072 8578
Contact email address
investor.centre@contactenergy.co.nz
Date of release through MAP

10 August 2020





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
1
2020 Full Year Results Presentation
Twelve months ended 30 June 2020
Putting our energy where it matters

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
2
Disclaimer and important information
This presentation may contain projections or forward-looking statements regarding a variety of items.
Such forward-looking statements are based upon assumptions at a point in time, and carry significant risks if relied
upon.
Actual results may differ materially from those stated
in any forward-looking statement based on a number of
important factors and risks.
Although management may indicate and believe that the
assumptions underlying the forward-looking statements
are reasonable, any of the assumptions could prove
inaccurate or incorrect and, therefore, there can be no
assurance that the results contemplated in the forward-
looking statements will be realised.
EBITDAF, underlying profit, free cash flow and operating
free cash flow are non-GAAP (generally accepted
accounting practice) measures. Information regarding the
usefulness, calculation and reconciliation of these
measures is provided in the supporting material.
Furthermore, while all reasonable care has been taken
in compiling this presentation, Contact accepts no
responsibility for any errors or omissions.
This presentation does not constitute investment advice.
Numbers in the presentation have not all been rounded
and might not appear to add.
All logos and brands are property of their respective
owners. All company, product and service names used in
this presentation are for identification purposes only.
All references to $ are New Zealand dollar.
Contact Energy / FY20 Final Results / 10 August 2020
2

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
3
4
FY20 Highlights and Progress on Strategy/ Mike Fuge, CEO4-19
Operational Performance and Financial Results / Dorian Devers, CFO 20-31
Market Update and Outlook/ Mike Fuge, CEO & Dorian Devers, CFO32-44
Supporting Materials45-59
2
3
1
3
Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
PRESENTATION AGENDA

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
4
4
FY20 highlights
and progress
on strategy
Mike Fuge, CEO

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
5
1
Refer to slides 54-55 for a definition and reconciliation of EBITDAF and underlying profit
2
Refer to slides 29for a reconciliation of operating free cash flow
3
Continuing operations excludes the discontinued RockgasLPG business sold on 30 November 2018
Twelvemonths ended
30 June 2020
(FY20)
Comparison against
continuing operations
3
FY19
Twelvemonths ended
30 June 2019
(FY19)
EBITDAF
1
$451m↓-11% from $505m↓-13% from $518m
Profit$125m↓-26% from $170m↓-64% from $345m
Underlying profit
1
$129m↓-22% from $166m↓-27% from $176m
Dividend per share39.0 cps-39.0cps
Operating free cash flow
2
$290m↓-13% from $334m↓-15% from $341m
Operating free cash flow
per share
2
40.4 cps↓-13% from 46.5cps↓-15% from 47.5cps
Stay-in-business(SIB)
capital expenditure (cash)
$51m--12% from$58m↓15% from $60m
Operating earnings (EBITDAF) were down by $54m when compared to
continuing operations in FY19, a period which included:
•Stronger hydro generation
•Higher wholesale prices
The operating conditions in FY20 were characterised by:
•Rising costs of thermal generation which include gas,
carbon and gas storage.
•Disciplined and active commodity risk management and a reduction
in fixed priced sales.
•Transmission constraints during planned HVDC outage impacting
market making.
•Global pandemic.
Despite the difficult operating conditions, Contact delivered strong
cost control with other operating costs from continuing
operations down by $9m (4%) and SIB capital spend down by $7m
(12%). Our high quality renewable generation assets and portfolio
structure deliver strong cash flows.
Economics of baseloadthermal generation are looking challenged
long-term; The Taranaki Combined Cycle (TCC) plant asset useful life
has been reassessed with depreciation accelerated, reducing profit in
FY20 vs prior comparative period.
SUMMARY OF KEY FINANCIAL PERFORMANCE MEASURES

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
6
Maintaining financial discipline
Other operating costs and SIB capex ($m)
Rewarding shareholders
Distributions ($m)
391
357
301
272
248
FY16FY17FY18FY20FY19
Safe and engaged employees
Total recordable injury frequency rate
(Recordable injuries per million hours worked)
Employee engagement (%)
FY18FY16
77%
FY17
75%
FY20FY19
56%
68%
74%
FOCUS ON OPERATIONAL IMPROVEMENT
Buyback
Final dividend
Interim dividend
6
3
15
20
26
36
FY20FY19FY16FY17FY18
Building customer advocacy
Net promoter score -NPS (Promoters less detractors)
3.3
3.2
5.2
1.3
2.1
FY16FY17FY18FY20FY19
7979
93
115115
107107
136
165165
100
FY19FY16FY18
286
FY17FY20
186
229
280280

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
7
Gender diverse workforce
% of total workforce
Total generation emissions intensity
tCO2-e / MWh
0.175
0.156
0.123
0.134
0.136
0.111
0.108
FY19FY16FY14FY20FY18FY15FY17
FOCUS ON SUSTAINABILITY
7
FY17FY16FY14FY15
69%
FY18FY19FY20
83%
76%
82%
80%
79%
83%
Renewable generation
% of total generation
Customers with impaired credit now accepted
% of impaired credit customers accepted
Science
based
target
(2026)
1%
2%
FY20FY16FY17
2%
FY18FY19
22%
41%
52%
FY18
37%
FY19
21%
FY20FY18FY19
37%
Male
FY19FY20FY18FY20
Female
48%
44%
56%
41%
59%
46%
54%
79%
63%
63%
81%
19%
80%
20%
CorporateCustomerGeneration
FY20FY18FY18FY19FY19FY20FY18FY19FY20
Māori
Other
Pasifika
Asian
European
AMELA
Undisclosed
NB. Individuals can choose to identify multiple ethnicities

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
8
0%
5%
0%
1%
(1%)
8%
5%
0%
0%
2%
2%
1%
Source: EMI, Contact
National electricity demand (TWh)Regional change (%)
FY20 vs FY19
Source: EMI, Contact
MARKET DEMAND
8
5.05.05.0
5.2
5.1
10.2
10.0
10.1
10.110.3
25.9
25.9
26.1
26.1
25.8
North Island
FY18FY16FY17FY20FY19
41.2
South Island
(ex NZAS)
NZAS
40.9
41.3
41.4
41.2
0%
0%
1%
0%
(6%)
(3%)
(3%)
NZAS curtailed the production from the 4
th
potline (50MW) from 3 April 2020.
NZAS have given notice of termination of
their remaining electricity contract
(572MW), with closure expected on 31
August 2021.
Demand flat. Indicates
underlying demand growth
once the impact of COVID is
included

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
9
Production from the major fields (PJ)Demand from key sectors (PJ)
-3
Retail and other
Petrochemical
Electricity
MARKET FUEL SUPPLY
FY17
FY18
FY19
Gas used in electricity generation in line with the last two years. Concerns around
future delivery have resulted in cautious management of hydro storage.
Total production has recovered with increases from McKee
Mangahewa, and Maui. Pohokura performing well.
Source: OATIS
Source: OATIS, EMI, Contact estimate
Pohokura
Maui
Turangi
Kupe
Mangahewa
Kowhai
40
39
38
40
39
44
34
41
87
79
76
82
163
149
166
FY20
3
5
5
3
11
11
11
12
24
26
27
23
65
61
56
62
33
28
24
38
31
33
26
25
FY19FY18FY17FY20
166
162
149
163
162

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
10
Despite high inflows in
November and December
2019, hydro generation was
slightly down compared with
FY19 following a 3-month
HVDC outage limiting the
ability to generate from South
Island hydro catchments.
The increase in gas fired
generation reflects a recovery
in gas volumes from the
Pohokura field following an
extended outage in late 2018.
Production from the Maui and
Pohokura fields are still below
historical levels.
Generation by type (TWh)
FUEL SUPPLY
National hydro storage against mean storage (TWh)
Mean storage 1927 –2020
2.5
1.5
2.0
3.5
3.0
4.0
4.5
Jul
2018
Jan
2019
Jul
2019
Jan
2020
Jul
2020
Mean
Actual
Hydro generators stored more water than historically seen to cover potential 2020 winter exposure in an uncertain gas
supply environment, while the HVDC outage limited South Island hydro during the first quarter of calendar 2020.
Generation from generator retailers
Source: EMI
Source: NZX
7.3
7.3
1.6
1.9
25.0
24.0
1.6
1.7
5.1
5.3
Geothermal
Gas
FY19
Wind
Coal
FY20
Hydro
Wood
0.3
0.2

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
11
Aluminium
Short-term external factors that
can influence the market
Wholesale and futures electricity pricing ($/MWh)
Source: EMI wholesale pricing
Short-term
wholesale
electricity
prices
Long-term pricing is linked to the long-run marginal costs of new renewable projects
to meet demand plus costs associated with firming renewable intermittency
Both long-dated and short-dated prices remain well above long-term averages, reflecting
higher thermal fuel costs.
11
Thermal fuel cost will
continue to remain
elevated.
Gas availability
improved over the
second half of FY20.
FUEL SUPPLY AND SHORT-TERMPRICE IMPACT
0
20
40
60
80
100
120
140
160
180
200
220
Jun
10
Jun
17
Jun
11
Jun
12
Jun
14
Jun
13
Jun
15
Jun
16
Jun
18
Jun
19
Jun
20
Long-dated futures (>12 months)
Short-dated futures (<12 months)
Monthly average spot price
Long-term
average
spot price =
$83.86/MWh
Methanol pricing at
only ~$2-4/GJ gas
equivalent,
economics of
Methanol challenging
COVID-19 impacts
on demand being felt
throughout mass
market and C&I
channels
NZAS running below their contracted
volumes. 7July 2020closure
announced by 31 August 2021.
Coal prices
reducing

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
12
MARKET
12
16.4
16.3
16.5
16.8
12.4
12.7
12.5
12.3
28.7
29.0
Mar-17Mar-18Mar-19Mar-20
29.129.1
0%
Retail competition remains intense.
Divergent views on the value of a customer:
Tier 1: Mercury reducing customer numbers, Meridian
growing market share
Electric Kiwi continuing growth trajectory
Reducing market share of main players continues, Tier 2
market share now at 15% (from 12% June 2018).
New connections in line with prior year
Change in customer connections (000s)
2yr % change
2yr ICP delta (1000s)
Retail tariff changes (c/ kWh)
Tier 2: +128k customers
Lines (c/kWh)
Energy & Other (c/kWh)
Despite sharply higher wholesale prices over the last two years, tariffs flat
reflecting intense competition and diverging views of long-term wholesale
prices.
Regulatory reset of Electricity Distributors WACC, has led to network cost
reductions since 1 April 2020.
12 months
ended:
Tier 1: -15k customers
Source: EMI
Source: MBIE
-50
-40
-30
-20
-10
0
10
20
30
40
50
Other
11%
Mercury
-11%
36%
-2%
ContactGenesis
-2%
Meridian
4%
TrustpowerFlickNova
4%
Pulse
-11%
139%
126%
Electric
Kiwi
Vocus
-19%

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
13
REGULATORY
The Electricity Authority ( EA) reached a preliminary conclusion that a UTS occurred in
December 2019 during significant flooding in the lower South Island.
While Contact was not found responsible, Contact disagrees with the EA’s initial
assessment of market conditions and generators offer behavior.
Thecost of providing market making services needs to
be borne by all beneficiaries including generators,
purchasers and financial participants. Contact welcomes
the EA’s Hedge Market Enhancement workstream and
believe a Commercial scheme that is sized appropriately
through a competitive process will be the most
sustainable and beneficial to consumers.
In January, Contact agreed new ASX trading
arrangements that increased market making volume and
maintain narrow bid/offer spreads. This was consistent
with the EA’s request for Contact and other large
gentailers to voluntarily provide market making to ensure
market liquidity.
The EA is also continuing consultation on enduring
market making measures.
Submissions close on 18 August, with cross submissions due on 9 September.
Safety of our assets, people and the
communities in which we operate is
paramount. Contact sought to limit marginal
running during the flood event to maintain
stable lake levels and ensure steady flows
to avoid flooding downstream of Roxburgh.
Marginal running can exacerbate changes
in lake levels and river flow.
Generators need to offer their
generation to be able to recover
the economic cost
Safety first
Economically rational

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
14
Optimise
the Customer and Wholesale
businesses to deliver strong cash flows.
Disciplined and transparent approach
to operating and capital expenditure.
Continuing to investigate ways to
optimise our portfolio
of assets.
DELIVERING PORTFOLIO STRATEGY
Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
CustomerWholesale

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
15
DELIVERING CUSTOMER STRATEGY
Simple and lean operating model centred on the customer
experience, reinventing key customer experiences and processes.
Capable employees identifying and driving performance
initiatives with ownership and accountability.
Operating model
Brand
Brand and reputation
repositioned from a strong
operational retailer to a smart
customer solutions provider.
Leverage advances in
technology to drive efficiency
with automated customer
experiences.
Technology
Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
15

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
16
Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
16
Brand
Operating model
Targeting reductions in cost to serve
Technology
Optimisation through ‘clouding’ and digital
collaboration
Top rated energy app
in New Zealand, with usage increasing
90% on prior year
Digital self service interactions up
450%
Robotic Process Automation (RPA) implementation
across 26 key processes
130k customers now on zero Prompt Payment
Discount (PPD) plans,
following the launch of our Simplicity plans
Cost reductions
with $4m reduction in ICT opexfrom ongoing
platform improvements
Lower customer complaints than market
12% share of all market deadlock complaints
relative to our connection market share of ~19%
Net bad debt write offs reduced
by 25% on prior year
Cloud based systems and software
enabling seamless remote working
for all staff through the
Covid-19 lockdown
Winning brand recognition and awareness
Through bill and consumption views,
payments, account management &
support.
DELIVERING CUSTOMER STRATEGY: UPDATE
>26,000 broadband
connections
With >19% of customers now
taking more than one product or
service
Strong NPS growth
Q4 NPS increased from +26
in FY19 to +36 in FY20
Award winning Brand
Charge Energy Global Awards: Best
Established Brand, and Readers Digest
Quality Service Awards: sector Gold
Award

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
17
Develop options to enable the
economic substitution of
Contact’s thermal generation
assets with renewables.
Improve the economic return
on our flexible thermal assets
in a volatile market.
Thermal generation
Leveraging capability to expand C&I products
and services;
underpinned by our investment in Simply Energy.
Partner with customers
on mutually beneficial
decarbonisation opportunities.
Customer solutions
Renewable development
Potential to develop Tauhara, New Zealand’s
lowest-cost firmed scale renewable generation option:
Prepare a range of development strategies to accommodate
the project in a changing market.
Resource proven, project ready for execution as soon as
market conditions allow.
DELIVERING WHOLESALE STRATEGY
Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
17

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
18
RENEWABLE DEVELOPMENT
The Tauhara development is ready
for execution when market conditions allow.

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
19
COVID-19 RESPONSE
oEnterprise-wide programme management office set up identifying opportunities
to improve performance
•Reduced controllable operating and capital costs
oIncreased liquidity by $200m for 18 months at short notice to pre-emptively
protect against a potential credit market closure
oNew ways of working programme accelerated
•Enabled by technology investment and
move to cloud-based applications
oSupport provided to employees
oSupport provided to the community
oCredit collection well managed in line with NgaTikanga, our moral
compass
oCustomer advocacy improved, with NPS higher

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
20
20
Operational
performance and
financial results
Dorian Devers, CFO
20

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
21
345
170
125
175
54
1515
17
10
Depreciation
and
amortisation
Discontinued
operation
Net interest
costs
Profit on
continuing
operations
FY19 profitEBITDAFTaxSignificant
items
FY20 profit
Profit ($m)
-54
EBITDAF ($m)
54321
FY19
supported
stressed
market
during
unplanned
gas field
outage.
Gas
availability
issues in
1H20,
lower
electricity
sales
volumes.
Lower hydro
year on year
(impacted by
transmission
constraints)
partially
offset by
strong
geothermal
generation
Market
makers
forced into
positions,
driving
earnings
volatility
Strong
operating
cost control
and lower
transmission
costs.
54321
FY20 RESULTS
30
17
PricingFY19 on
continuing
operations
Renewables
5
5
Natural gas
constraint
10
Market
making
13
FY20Fixed costs
inc. opex
451
505
-10
Price
Volume

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
22
FY20 RESULTS
67
50
19
5
5
Gas Gross
Margin
FY19
0
Electricity
price
Cost
inflation
2
OpexFY20
-14
-17
-26
FY19
-25
FY20
+1
Wholesale EBITDAF ($m)
Customer EBITDAF ($m)
Corporate / unallocated ($m)
Electricity gross margin
(-$14m)
Price recovery of
cost inflation
Networks
Electricity
Refer to slides 23 -25
Refer to slide 26
44
48
34
Generation
costs
(including
acquired
generation)
464
426
FY19Total
contracted
revenue
Trading,
merchant
revenue
and losses
FY20
-38

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
23
Electricity generated or acquired (GWh)
3,256
3,333
4,231
3,752
1,504
1,439
634
335
FY19
Geothermal
9,625
Hydro
FY20
Acquired
Thermal
8,858
FY19FY20
Electricity generated or acquired costs ($m)
FY20 RESULTS: WHOLESALE BUSINESS
118
98
108
89
161
48
157
40
68
96
38
90
21
24
17
22
68
38
Generation
type
Cost
type
Generation
type
Cost
type
Gas and diesel
Acquired
Thermal
Renewable
Gas storage
Carbon costs
Electricity and gas
transmission and levies
Other operating costs
348348
304304
-44
Hydro generation down 479GWh on
FY19 (-11%), 4% below that expected in a
mean year. Geothermal volumes were
77GWh up on prior year and 33GWh on an
average year as Contact processed more
fluid in advance of FY21 outages.
•Renewable generation costs were down
by $10m. Transmission costs down by
$6m, other operating costs down $5m.
Geothermal carbon costs were up $1m.
Thermal generation costs were down due
to lower thermal generation in the year.
•Gas and carbon unit costs up from
$75/MWh in FY19 to $76/MWh (+1%).
•Fixed costs, led by the new gas storage
contract (since October 18), were up by
$6m on the prior comparative period
(net of other operating costs).
An easing of gas supply restrictions over
FY20 saw risk management costs
significantly lower (down $30m) with
acquired generation volume down by 53%.

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
24
FY20 RESULTS: WHOLESALE BUSINESS
3,789GWh
$83.0/MWh
Contracted revenue ($m)
3,019GWh
$82.1/MWh
1,844GWh
$73.9/MWh
-48GWh
+$5.8/MWh
-848GWh
-$0.9/MWh
+240GWh
-$1.0/MWh
•Fixed price variable volume electricity sales to the
Customer segment and C&I customers ended 896GWh
lower than FY19 (-$75m), this was partially offset by
higher prices (+$22m) to the Customer business,
reflecting higher wholesale prices over the three
preceding years.
•CFD sales were up by 240GWh with increased sales to
support NZAS, which was up by 23GWh on FY19,
electricity sales from gas tolling (gas price, not market
linked) and CFD sales committed to part way through
1H19 before forward prices rose. Only 274GWh of CFD
sales have been committed since October 2018.
•Steam revenue was in line with FY19 with a reduction in
volume but increased tariffs on rising carbon costs.
•Other income down by $10m as volatile wholesale
markets reduced market making revenue ($9m)
24
314
332
248
176
136
152
26
26
2
12
FY19FY20
Steam sales
Other net income
CFD sales
C&I netback
Customer sales
737
689
-48

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
25
FY20 RESULTS: WHOLESALE BUSINESS
Trading EBITDAF ($m)
139
91
-64
-51
FY19
75
00
FY20
41
-34
4,246
4,118
($115.8/MWh)
Long / short position (GWh)
$142.3/MWh
5.5%
($7.4 / MWh)
6.0%
+$1.0/ MWh
•98GWh decrease in
merchant sales volumes
(-$10m). The price received
for this “long” generation
was down by $38.2/MWh
(-$37m).
•Strong risk management
saw limited price exposure
to unhedged spot market
purchases during higher
wholesale price periods.
•The relative reduction fixed
price sales and lower
wholesale prices saw
absolute LWAP/GWAP
improve by $13m.
Trading revenue
Merchant sales: short-term sales channel available when the
spot prices exceed the opportunity cost of Contact generation.
Pool purchase: short-term opportunisticpurchases from
the spot electricity market when better value than
alternatives (adjusted for volatility and volume).
LWAP / GWAP losses: locational price differences
between where electricity is generated and purchased.
($45.9/MWh)
$104.1/MWh
Spot purchases and
sell CFD settlement
Spot sales and buy
CFD settlement
Pool purchases
Merchant generation
974
876
-7,918
7,9048,569
FY20
-8,569
973
-2
FY19
-1
862

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
26
FY20 RESULTS: CUSTOMER BUSINESS
EBITDAF ($m)
Electricity tariff changes reflect the
regulatory pressures and the
competitive environment:
•16k customers migrated to fit-for-
purpose plans.
•End to further Prompt Payment
Discounts -19% reduction in PPD
not taken.
•Free electricity to charities during
COVID ($0.7m).
•Only ~20% of customers received
a price increase in FY19, resulting
in limited flow through.
Smooth the impact of higher
electricity costs for customers, which
are up by 6% on FY19.
•Combination of targeted retail
price rises and a reduction in
network costs from 1 April 2020
has seen gross margins recover.
Retail gas tariffs will need to rise to
reflect rising gas and carbon costs.
Revenue & Tariff
1
($m)
FY19FY20Variance
$m$mTariff$mTariff
Electricity gross revenue858859243.710.8
PPD not taken1210
Incentives paid(7)(6)
Net revenue (cash)863862244.8(1)0.7
Capitalisedincentives97
Amortisedincentives(8)(8)
Net revenue (P&L)864861244.5(3)0.0
Gas revenue737488.813.8
Broadband revenue71770.110(27.5)
Other income451
Total revenue9489579
Contract Asset (closing)1613(3)
1. Tariff is $/MWh for electricity, Gas $/GJ and $ per month per customer connection for broadband
35
37
-18
-24
-81
-79
-4
Gas net price
-314
4
442
0
67
-3
Other income
Electricity
net price
Electricity costs
Gas costs
50
Carbon costs
Other operating
expenses
Broadband
447
-332
5
0
$125.3/MWh
($89.0/MWh)
$1.5/MWh
-$5.3/MWh
FY19FY20
-17
Net price is Revenue less Networks, Meters and Levies. $/MWh is at the ICP

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
27
Other operating cost movement ($m)
Other operating cost ($m)
Portfolio, performance and non-recurring
Invest in
adjacencies
Underlying
movement
Underlying movement
$5m from procurement savings with ICT delivering
reductions from insourcing activity and relocation of
servers into the cloud.
$1m change in meter read provider.
COVID
$2m from reduced marketing
•Reassessed the tone of customer
engagement during COVID.
$1m from reduced field services and travel.
($1m) from an increase in provision for bad debts.
Other operating cost trajectory
Reduction of 6% CAGR since FY16.
Delivered $6m of underlying
operating cost improvement exceeding our FY20
target of between $200m –$205m.
.
LPGLPG services retainedAGS*Inflation
FY20 RESULTS
247
243
223
212
196
FY16FY17FY20FY18FY19
-6%
7
4
2
6
2
2
212
-7
FY19
1
Asset DisposalIncentivesCovidNet Cost SavingsBroadbandFY20
196
-4
1
*AhuroaGas Storage

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
28
CFDs1,450GWh$64/MWh$93m
C&I3,350GWh$83/MWh$278m
Retail3,800GWh$117/MWh$445m
Other income³$50m
$866m
Hydro mean3,900GWh$0/MWh-$0m
Geothermal average3,300GWh$1/MWh-$3m
Thermal1,800GWh$66/MWh⁴-$119m
Acquired100GWh$100/MWh-$10m
-$132m
Length⁵$55mTransmission/Storage-$70m
Location losses⁶-$36mOperatingexpenses-$203m
Total$19mTotal-$273m
FY assumptions that deliver expected & normalised EBITDAF of $480m
EBITDAF reconciliation to FY20
Hydrology & Asset
availability optimise generation
3
4
Total
x
=
Access to and price of fuel* drives
financials & risk position
Natural gas constraint
Normalised & Expected
Lower renewables
Pricing
Other income
Actual
unit cost
availability
Natural gas availability restricted thermal
generation and increased the cost of gas and
reduced the sales volume to fixed price channels
Higher thermal generation required to offset below mean
hydrology (148GWh) at expected thermal SRMC
Management of fuel supply risk meant unable to
re-contract & re-price C&I
Channel choices maximise
long term value¹
1
Net price² driven by
best commercial practices
2
Total
x
=
Trading delivers value to more
than offset locational losses
5
Digitalisation & continuous
improvement optimise fixed costs
6
FY20 RESULTS
x
x
x
x
x
x
x
=
=
=
=
=
=
=
* Fuel is natural gas and carbon costs
7
18
5
17
14
3
451
480
1.All volumes are at the Grid Exit Point (GXP)
2.Net price is equal to tariff less pass-through
costs (network, meters and levies) /MWh
3.Steam sales, retail gas gross margin, other income
4.Gas price of $6/GJ, carbon price of $20/unit and thermal portfolio heat rate (9.25GJ/MWh)
5.Length of 500GWh p.a. assumed
6.Locational losses of 5.6% on spot purchases and settlement
of CFDs sold at a wholesale price of $75/MWh
Fixed costs
Other operating cost control (-$10m),
transmission costs lower

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
29
128
102
78
60
52
0
50
100
150
FY17FY16FY18FY19FY20
•
EBITDAF down $67m with continuing operations down $54m with $13m from Rockgas (discontinued)
•
Working capital changes $14m favourable as debtors balance reduced in line with fixed-priced sales
•
Capital expenditure (cash) on continuing operations of $51m in FY20, $9m less than FY19
12 months
ended
30 June 2020
12 months
ended
30 June 2019
Comparison
against FY19
EBITDAF$451m$518m↓($67m)
Workingcapital changes$7m($7m)↑$14m
Taxpaid($70m)($47m)↓($23m)
Interest paid, net of interest capitalised($49m)($65m)↑$16m
SIBcapital expenditure($51m)($60m)↑$9m
Non-cash items includedin EBITDAF$2m$4m↑$2m
Significant items-($2m)↑$2m
Operating free cash flow$290m$341m↓($51m)
Operating free cash flow per share40.4 cps47.5 cps↓(7.1 cps)
Proceeds from saleof assets/operations-$390m↓($390m)
Free cash flow$290m$731m↓($441m)
SIB capital expenditure –accounting ($m)
43
280
290
49
4
3
OFCF
Sources
3
Investment
in associates
Uses
Growth investment
Acquisition of Energyclub
Cash change
Debt movement
Dividends paid
336336
Sources and uses of cash ($m) FY20
FY20 RESULTS

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
30
•
Face value borrowings net of cash (excl. leases) increased by $46m to $1,036m from 30 June 2019. This was due to
investments in associates and growth capex exceeding operating free cash flow.
•
Net debt has reduced by $684m since the end of FY15. Gearing was 31.4% at 30 June 2020, up from 28.3% at 30 June
2019.
•
$70m USPP maturity in December 2020 is expected to be funded through existing facilities.
•
Weighted average interest rate reduced by 50bp compared to FY19. A greater portion of funding was financed at low
floating rate debt in FY20.
•
Contact continues to target a credit rating of BBB (net debt / EBITDAF <2.8x).
•
New sustainability linked loan was executed in December 2019, aligning capital structure with strategic ESG ambitions.
•
$200m syndicated loan was established in April 2019 to provide additional liquidity buffer during COVID-19.
FY17
5.32%
6.17%
FY15
5.14%
5.61%
FY16FY18
5.75%
FY19
5.25%
FY20
Closing net debt ($m)
Face value of borrowings less cash
Interest rate (%)
Weighted average net interest¹ on average borrowings
net of cash
Net debt to EBITDAF (x)
Includes S&P adjustments (prior to FY20 AGS was treated as a
lease)
Borrowing maturities ($m)
Average tenor of 3.0 years as at 30 June 2020
1,022
1,399
1,647
1,570
1,4681,075
Average borrowings net of cash ($m)
FY20 RESULTS
1.Net interest includes all interest on borrowings, bank commitment fees and
deferred financing costs. Unwind of leases and provisions not included.
990
-44
1,608
22
FY15
25
23
1,677
-4
1,014
-5
FY16
41
968
1,504
-6
FY17
38
1,410
-3
FY18
25
-47
FY19
1,445
1,036
FY20
1,698
1,626
1,539
Lease obligationsBorrowingsCash on hand
777
150
100
153
100
136
325
64
131
FY21
70
FY22
7
FY23FY24FY25FY26
88
11
FY27 -
FY29
77
482
302
210
167
143
99
77
50
60
Undrawn bank facilities
Domestic
Drawn bank facilities
USPP
NEXI
3.1
3.1
3.0
2.7
2.5
2.4
3.4
3.2
3.2
3.1
2.3
2.4
FY19FY17FY15FY16FY18FY20
SmoothedSnapshot

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
31
Dividend for FY20 of 39 cents per share
•Final dividend of 23 cents per share (Final FY19 23 cents per share)
is imputed to 65% or 15 cents per share for qualifying shareholders.
This represents a pay-out of 97% of FY20 operating free cash flow
per share.
•Record date of 27 August 2020; payment date of 15 September
2020.
•The NZD/AUD exchange rate used for the payment of Australian
dollar dividends will be set on 1 September 2020.
Ordinary dividends (cps)
Declared
1111
13
1616
1515
19
2323
32
26
FY17FY16
26
FY18FY20FY19
3939
Final dividendInterim dividend
54%61%
76%
82%
% pay-out of operating free cash flow per share
DISTRIBUTIONS
31
97%

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
32
32
Market update
and outlook
Mike Fuge, CEO & Dorian Devers, CFO
32

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
33
TIWAI POINT ALUMINIUM SMELTER
•Impact on the Southland and Taranaki economy, loss of regional jobs
•Carbon leakage from low carbon aluminum
•Inefficient capital investment decisions
•Loss of tax revenue; current account impact
•Reduced return on thermal assets and lower natural gas demand
•Heavy industry
•Premature decline of the oil and gas sector
•Large closing costs with uncertain remediation
timeline
•Uncertainty from 14 month termination
•Infrastructure and supply chain to support NZAS
•Retooling and reskilling –time and investment
Suppliers
Government
Communities
& employees
Joined up thinking is required:
Risk of a disorderly exit needs to
be fully understood
Competitive short-term electricity contract
negotiated to facilitate a staged exit
Fair transmission pricing
Working with the Southland community to
understand the terms of a just transition

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
34
TIWAI POINT ALUMINIUM SMELTER
Planned exit
31 May 2022
Notice given
to terminate
electricity
contract
Proposed phased exit to limit spill
31 Aug 2021
LSI transmission
upgrade complete
July 2020
NZAS consumes 13% of national demand, 572MW
baseloadcontract, located in the lower South Island.
Transmission constrained at times until May 2022 leading
up to 0.6 TWhof spill p.a. for Contact.
HVDC currently runs at an average of ~275MW over a year:
oPhysical capacity 1,200MW, practical capacity with current
reserve arrangements 950MW
oPost LSI* upgrade and with effective lake management there is
HVDC capacity for all of Tiwai linked generation to flow North
oBase load thermal will limit South Island generation and lead to
unnecessary spill
Currently ~$1bn being invested in wind in the NI which will further
limit SI hydro coming across the HVDC.
The key bottleneck is caused by the actual NI demand less
must run NI renewables and the reserves.
*Lower South Island
Only 9 months of spill

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
35
TIWAI POINT ALUMINIUM SMELTER
Multiple variables will impact actual HVDC South
to North Flow up +950MW
62%
Winter
Summer
Min 22.7 TWh| Mean 25.3 TWh| Max 27.7 TWh
9.5
11.1
FY18 -Q3FY19 -Q1
+16.7%
Hydrology
Seasonal demand
Daily demand shape
Take-or-pay gas contracts
Wind generation
Jan-20Mar-20May-20Jul-20
61
71
70
62
74
77
0
100
200
300
400
01-Jun08-Jun15-Jun22-Jun29-Jun
Monthly average
North Island reserves
*at time North Island demand less than must run NI generation
Annual Hydrology (2000 -2019)
Daily demand (MWh)
Wind generation
(MW by trading period June 2020)
Seasonal demand (TWh)
Kupedelivered energy (TJ/day)
Increase reserves will increase
HVDC capacity beyond 950MW

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
36
TIWAI POINT ALUMINIUM SMELTER
oThermal generation will become increasingly volatile and therefore require flexible gas and/or coal.
o
On a national level 5.6 TWhof thermal generation is currently required. This would reduce to ~0.6 TWh
under mean hydrological conditions once the HVDC is invested in.
o
Additional North Island generation is not required without demand.
5.6
2.4
0.6
8.2
3.0
3.2
3.0
2.4
3.2
NZAS
volume
redirected
-1
Thermal
required
from
May
2022
1.2
1.2TWh
0.6
NZAS
volume
redirected
-3
Mean Year
Thermal
post
transmission
8.0TWh
CogenNZAS
volume
redirected
-2
Geothermal
26.4TWh
North
Island
Demand
Residual
Demand
Must-Run
hydro
TodayWind
1.0
Residual
mean NI
Hydro
Mean SI
Hydro
HVDC
Transfer
Mean
Year
Thermal
post
HVDC

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
37
TIWAI POINT ALUMINIUM SMELTER
NorthIsland Winter Capacity Margin (MW)
Transpower’s North Island Winter Capacity Margin (WCM) Security
Standard (April 2020) is still exceeded post NZAS without any CCGTs.
NorthIsland demand durationcurve (MW)
Generationcapacity to meetthe market.
There appears no role for any baseload thermal generation post NZAS exit.
Amounts to ~
600 GWhof
Tiwaivolume
spilt at HVDC
Notes
1. Based on Low Demand growth scenario
2. Wind: 25% of the installed capacity
3. North Island WCM Security Standard is 630-780 MW
4,500
5,000
5,500
6,000
3,000
0
2,500
500
1,000
1,500
3,500
2,000
4,000
7010020400506080903010
Geothermal “must run”
North Island “must run”: Wind, Hydro (run-of-river), Cogen
North Island hydro controllable
HVDC
Thermal –flexible gas
Thermal –coal
Thermal –inflexible gas
Thermal –diesel
Transpower’sNorth
Island Winter Capacity
Margin Range
Using Transpower’scontribution to winter capacity margin calculations.
TCC
E3P
1,100
725
363
373
100
86
100
Battery and
demand response
2020 North Island
capacity above
forecast demand
CCGT
50
25
New wind (Turitea
+ Waipipi) &
geothermal (Nga
Wha)
Post NZAS capacity
-736
250
111
630-780 MW

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
38
TIWAI POINT ALUMINIUM SMELTER
Plant typeFuel type
Fuelflexibility/
economic
dispatch
Efficiency/
operating
costs
Dry year
/
seasonal
Daily
shape
Reserves
Assessment of
value post NZAS
exit
Open cycleDiesel
+++----++++++More important role
Peaker
Gas with storage
+++++++++++Critical in managing
volatility
Gas with take-or-
pay/inflexible/integrated
--+++-+Baseloadthermal not
required
Rankine cycle
Coal
++--+++++++Value offlexibility
diminished by coal
stigma and age of plant
Gas with take-or-
pay/inflexible/integrated
---+-++Baseloadthermal not
required
Combined
cycle
plant
Gas with storage
+++++++--Dryyear cover and
supports market outages
Gas with take-or-
pay/inflexible/integrated
--+++-+++Baseloadthermal not
required
There appears no role for baseload thermal generation post NZAS exit.

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
39
TIWAI POINT ALUMINIUM SMELTER
Strengths
Organisational capability to deliver competitive advantage.
Unique
expertise to
drive
decarbonisation
Alternative
electricity
demand growth
Dairy electrification real.
Increase holding in.
Simply Energy to 100%.
Flexible thermal
fuel, with asset
optionality for TCC
to support control
of wholesale
outcomes
Thermal portfolio
optionality
Short gas book.
Access to flexible fuel –
gas storage, includes first
right to further expansion.
Whirinakiwell placed
to offer reserves.
Track-record
of delivering
operational
cost
improvement
Cost and
capital
reduction
programme
Will continue to
support Contact’s
strong balance
sheet.
Flexible
portfolio
Control NI
reserves to
increase
HVDC flow
Virtual peaker–
grow DemandFlex
business from 7MW
to >50MW.
Battery investment.
Leverage
customer
propositions
Broadband bundle
is valued by
customers and
increases loyalty.
Strong
customer
proposition
Low-cost
renewable
assets
Optimiseassets
Low capex extension of
the Wairakei
geothermal field.
Reviewing the merits of
bringing forward hydro
refurbishment
programme.
Optimisinggeothermal
fuellingspend.
Fixed prices
sales contracts
Limits near-term
exposure to lower
near-term prices.
Contract position
with limited short-
term price
exposure
Mitigations
Transpowerproceeding with transmission upgrades at pace.
Refer to slide 41
Refer to slide 40

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
40
TIWAI POINT ALUMINIUM SMELTER
Virtual generator II
Huntly swaption –100 MW
Whirinaki
peakerplant
155 MW peaker
AGS contract
and gas peakers
0-200 MW
Hawea
286 GWh storage,
~500 GWh p.a. throughput
Virtual generator I
Demand Flex platform –7MWreserve and virtual peaking
First rights on further AGS expansion

41
Execution capability
provides delivery
confidence
Simplify the organisation
increasing both
effectiveness & efficiency
Operating model
Professionalise service delivery
providing business support.
Procurement
Best in class operations which
maximise asset availability uptime
Operational
excellence
Cultural change supporting
transformation
Ways of working
Grow the market by picking
the projects which most
likely to be executable
Decarbonisation
Ensuring an understanding
of all potential new
applications for electricity
New Demand
Leverage our NI generation
portfolio and fuel position
Optimise sales
41
Contact performance model
Digital investment
Executable generation
development to meet the market
Simply Energy

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
42
Implement mitigations to compete hard
post NZAS exit
Redesign customer journeys to capture multi-product
scale efficiencies.
Maintain the optionality to develop Tauhara as soon as
appropriate
Investigate low capital options to extend Wairakei
generation
FOCUS
NZAS
Manage
wholesale
market
volatility
Constructive engagement to promote an orderly exit
Effective risk management. Monetise flexible thermal advantage.
Gas contracts will allows for greater participation in contracting
fixed price sales.
Delivering
value
Recover rising wholesale input costs.
Investment in digital and data to further reduce
costs and develop new, innovative propositions.
Continued focus on controllable cost reduction.
Post NZAS
recovery
Near
term
Medium
term
Decarbonisation
Capture
scale
efficiencies
Partner with customers on
mutually beneficial
decarbonisation opportunities.
Transformation
programme
Optimise operating model, drive procurement, embed the benefits
from transformative ways of working

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
43
oForecastuncertainty reduces confidence in
the expected earnings over the medium term
oMitigationoptions need to be fully developed
BASIS FOR DISTRIBUTIONS
Disciplined management and application of cash flows to maximise the returns for shareholders.
oThis includes an evaluation of the capital required to pursue mitigation/growth opportunities and
ongoing investment in the business
oThe maintenance of an appropriate gearing level and distribution of profit and excess capital to
investors in an efficient manner
This provides time to refine expectations to include:
oPotential changes to the current NZAS exit timeline
oShorter term impacts on market pricing
oCapital risk management linked to increased uncertainty
oValue of mitigations and implementation costs
oMaintaining balance sheet strength is an
important mitigation (maintenance of BBB credit
rating)
oMeans net debt/EBITDA ratio below 2.8x.
oDecisions around the optimal asset portfolio
need to be made including geothermal life
extension (Wairakei re-consenting) and TCC
refurbishment

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
44
FY20 GuidanceResultFY21 GuidanceGuidance commentary
Other operating costs$200–205m$196m$190–205m*
Targeting further reduction in controllable costs
Stay in business capital
expenditure
$55 –60m$51m$55 –60m
Cashspend (‘Totex’)$255 –265m$247m$250 –265m
Depreciation and amortisation$213–223m$220m$250–260m
TCC likely to be fully depreciated by 2022.
Net interest (accounting)$55 –60m$55m$55 –60m
Interest on Tauhara spend no longer
capitalised to PP&E
Cash interest(in operating cash
flow)
$50 –55m$49m$50 –55m
Cashtaxation$70 –75m$70m$75 –85m
Target ordinary dividend per share39 cps39 cps
Noguidance
issued
FY21 dividend target updated as soon as
appropriate
Geothermal volumes3,300GWh3,333GWh3,050GWh
Statutory 4-yearlyTeMihioutage in 1H21
GUIDANCE
47









* Excludes any additional abnormal impacts due to COVID-19

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
45
45
Questions
48

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
46
46
Supporting
materials
49

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
47
2,332
3,074
3,297
3,233
3,323
3,256
3,333
4,058
4,119
4,091
3,562
3,479
4,231
3,752
2,865
2,321
1,614
1,742
1,812
1,421
1,360
9,002
Thermal
generation
FY14FY15FY18FY17FY16FY19
Hydro
generation
FY20
Geothermal
generation
8,908
9,255
9,514
8,537
8,614
8,444
Contact generation output sold to the national grid (GWh)
Electricity and generation sales position (GWh)
FY19
FY20
OPERATIONAL DATA
634
335
79
974
862
3,789
8,859
SalesGeneration
1,844
3,019
1
8,444
Generation
2,085
2,171
3,741
Merchant sales
Sales
Direct generation
Pool purchase
8,908
Acquired generation
Spot generation
CFD gross sales
Sales to C&I
Sales to Customer
8,859
2
83
9,6279,627
-768

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
48
Geothermal fuel extracted at Wairakeivs consented
(GWh)
Wairakei, Poihipiand TeMihiconversion effectiveness
(MWhper kTextracted)
50
15
75
10
65
0
70
5
30
25
90
20
60
35
40
55
45
85
80
95
97%
94%
99%
FY16FY17
101%
FY18FY19
100%
FY20FY15
99%
+1%
% of geothermal fluid extractedWairakei mass extracted
GEOTHERMAL PERFORMANCE
29.3
30.1
30.1
30.5
30.1
31.1
FY16FY17FY15FY19FY18FY20
+1%
+3%

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
49
Hydro generation (GWh)
Geothermal generation (GWh)
Thermal generation (GWh)
1,282
1,184
1,372
1,382
1,415
1,075
1,121
1,062
991
1,045
407
403
411
388
335
337
336
280
310
340
196
189
198
186
198
3,333
FY18FY17FY19FY16
3,297
FY20
3,233
3,323
3,257
Te Huka
Ohaaki
Poihipi
Wairakei
Te Mihi
Geothermal generation was 76GWh higher than
FY19 as an increase in TeMihiand Wairakei
generation to extract consented geothermal take in
advance of the FY21 statutory TeMihioutage
Hydro generation was 148GWh below mean (FY 3,900GWh) in
FY20, 756GWh below FY19 but 245GWh higher than a dry FY18.
During December the Clutha catchment was in flood conditions
throughout the period. We could not process all of the
waterthrough our hydro stations and had to spill it.
Thermal generation volumes were 64GWh lower in FY20 on lower sales
and restricted availability of gas in H1 of this year, which reduced the ability
to run baseload thermal at TCC with the Stratford peakers. Gas availability
in H2 allowed for TCC to run more and flexibility with Stratford peakers.
OPERATIONAL DATA
4,303
3,799
3,567
4,527
4,817
-148
-90
FY17FY16
3,479
-28
3,562
-100
-51
FY18
-37
FY19
-975
FY20
4,091
4,231
3,752
-112
-209
-148
553
1,020
1,071
1,013
871
334
495
528
207
291
506
226
211
195
195
221
92
90
83
79
94
FY17
1,903
0
FY16
3
1
FY18FY19
5
3
FY20
1,708
1,834
1,503
1,439
Te Rapa -spot
Whirinaki
Direct generation
Stratford Peakers
TCC
Otahuhu
Total inflowsInflows storedSpill

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
50
Taranaki combined cycle (TCC)
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
FY1737790%31%1,0216465
FY1837768%32%1,071102110
FY19
377
63%31%1,031115117
FY2037788%26%870120104
Hydro
Geothermal
Peakers(including Whirinaki)
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
FY1778492%52%3,56247169
FY1878495%51%3,47978271
FY19
784
97%62%4,231123521
FY2078492%54%3,75290338
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
FY1742991%86%3,23355177
FY1842596%89%3,32380267
FY19
425
92%87%3,256133434
FY2042595%89%3,33399330
TeRapa (spot generation only)
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
FY1736095%16%4957336
FY1836087%17%53011662
FY1936079%7%21219241
FY2036088%9%29516248
Net
capacity
(MW)
Availability
(%)
Capacity
factor
(%)
Electricity
output
(GWh)
Pool revenue
($/MWh)($m)
FY174198%63%2265813
FY184187%59%2119420
FY19
41
96%54%19516031
FY204198%73%18410621
OPERATIONAL DATA

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
51
862
770
833
623
495
550
164
208
93
60
153
170
-256
-145
-303
-188
-98
-111
Opening storage
2H181H181H20
Gas extracted
2H191H192H20
833
Gas injected
770
623
495
550
610
104
152
27
103
53
159
152
257
277
174
216
231
252
294
351
244
-228
-299
-140
-282
-146
-302
-246
-412
2H182H171H171H181H192H19
Inflows
1H20
Opening storage
27
Releases
152
103
53
159
152
257
2H20
90
Haweastrorage(GWh)Gas storage (GWh equivalent)
Using the FY20 thermal efficiency (9.04 TJ/GWh)
CLOSING STORAGE
CLOSING STORAGE
Source: NZX hydro
OPERATIONAL DATA

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
52
FUEL OUTLOOK
Portfolio requirements for thermal generation (TWh)
-2.9
-3.3
-1.0
Thermal plant fuel cost ($/MWh)
Gas supply and demand FY21 (PJ)
3.7
The increasing price of natural gas and carbon
will support wholesale prices in the medium
term.
•Access to gas storage and flexible gas
contracting means Contact is well positioned
post NZAS exit
Hydro variation >>
* Hydro generation in FY12
8.5
2.0
1.0
0.7
3.3
2.9
1.0
GeothermalExpected
2020
generation
(inc.
losses)
Hydro in
"extreme
dry" year*
Maximum
thermal
required
0.3
"Extreme
dry" to
"mean"
year swing
Mean
thermal
required
Co-
generation
Maximum
thermal
required
0.3
"Mean" to
"wet" year
swing
Minimum
thermal
required
-65%
Carbon
FY18FY17FY20FY19FY21 (f)
59
Gas
7776
62
81
+8%
0.8
17.5
1.2
3.0
4.5
8.0
Co-generation
Retail
Mean year
demand
Storage net
movement
FY21 position
Mean Thermal
Swap return
Contracted
17.5

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
53
Contracted gas volumes (PJ)
Sources and uses of gas (PJ)
Closing storage
Ahuroagas storage monthly
injections and extractions (PJ)
6.9
4.1
6.5
4.5
2.3
8.08.0
1.2
3.1
3.4
4.5
5.0
6.3
4.0
4.4
4.5
4.5
7.6
4.5
4.1
6.9
4.0
4.7
6.0
16.5
CY16CY21CY18
18.4
CY17CY19CY20CY22
16.7
18.6
16.6
14.3
18.0
Short-term gas
GenesisMaui -notified
Swap
Maui -contingent
Pohokura
Storage balance at 30 June 2020 was 6.1PJ
OPERATIONAL DATA
0.16
0.34
-0.02
Jul-
19
Mar-
20
Sep-
19
-0.47
0.19
-0.17
0.01
0.25
-0.22
Oct-
19
-0.11
Nov-
19
0.62
0.58
-0.02
Dec-
19
0.00
0.72
-0.01
-0.07
Jan-
20
0.21
Feb-
20
0.50
0.16
-0.23
Apr-
20
-0.06
May-
20
Aug-
19
-0.74
0.03
Jun-
20
Gas injectedGas extracted
11.1
10.8
7.8
7.5
4.5
18.3
19.5
20.4
17.3
16.5
-3.0
-3.1
1.7
-16.1
-17.2
-17.1
-13.9
-13.3
-2.2
-2.4
-2.8
-3.1
-3.2
-0.1
-0.5
-0.1
FY20
-0.3
6.1
Net extraction
0.0
FY17FY16
-0.3
7.7
FY18
-0.3
FY19
Generation
Customer sales
Wholesale sales
Purchases
Opening storage
10.9
7.5
4.5

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
54
•EBITDAF is Contact’s earnings before net interest expense, tax, depreciation, amortisation, change in
fair value of financial instruments and other significant items.
•EBITDAF is commonly used in the electricity industry so provides a comparable measure of Contact’s
performance.
•Reconciliation of statutory profit back to EBITDAF:
12 months ended
30 June 2020
12 months ended
30 June 2019
Variance onprior year
$m%
Profit125 345(220)(64%)
Depreciation and amortisation220205157%
Significant items (grossof tax)5(174)179(103)%
Net interest expense5570(15)(21%)
Tax expense4672(26)(36%)
EBITDAF451 518 (67)(13%)
•Depreciation and amortisation, change in fair value of financial instruments, net interest and tax
expense are explained in the following slide
The adjustments from EBITDAF to reported profit and
movements on FY19 are as follows:
•Depreciation and amortisation: Increased by $15m (7%) on
FY19 primarily resulting from the change in estimate for the
expected useful life of TCC to 2022 (previously 2028) which
has resulted in accelerated depreciation from 1 July 2019.
•Net interest expense: Reduced by $15m (21%) over FY20
on reduced average borrowings and a lower interest rate as
well as the capitalisationof interest relating to the Tauhara
geothermal project ($6m).
•Tax expense for the period was $26m down following
operating earnings and higher depreciation partially offset by
lower net interest expense.Tax expense for FY20 represents
an effective tax rate of27%. The effective tax rate for FY19
was 17% on total earnings as the gain on the sale of
Rockgaswas not subject to income tax.
•Other significant items are detailed on
the following page.
NON-GAAP PROFIT MEASURE

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
55
12 months ended
30 June 2020
12 months ended
30 June 2019
Variance on
prior year
$m%
Profit
125345(220)(64%)
Change in fair value of financial instruments
-(2)2(100%)
Gainon sale of RockgasLimited(LPG)
-(165) 165(100%)
Gain on sale of Ahuroagas storage
-(5)5 (100%)
Remediation for Holidays Act non-compliance
(5)(2)(3)150%
Tax on items excluded from underlying profit
1 5(4) (80%)
Underlying profit
129176 (47)(27%)
•Underlying profit provides a consistent measure of Contact’s ongoing performance.
•Underlying profit excludes the effect of significant items from profit. Significant items are determined based on
principles approved by the Board of Directors.
•Other significant items are determined in accordance with the principles of consistency, relevance and clarity.
Items considered for classification as other significant items include impairment or reversal of impairment of
assets; business integration, restructure, acquisition and disposal costs; and transactions or events outside of
Contact’s ongoing operations that have a significant impact on reported profit.
•Reconciliation of statutory profit for the year to underlying profit.
The only adjustment from profit to underlying profit for FY20
was:
•Increase in Holiday Act provision to reflect the recent High
Court ruling following the Metro Glass vs MBIE case and
estimated impact (net of tax).
•Final tax payment relating to the sale of the Otahuhu
Power Station in FY16.
NON-GAAP PROFIT MEASURE

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
56
Unit
FY16FY17FY18FY19FY20
Revenue$m2,1632,0792,2752,5192,073
Expenses$m
1,6401,5781,7942,001
1,622
EBITDAF$m523501481518451
Profit/(loss)$m
-66151132345
125
Underlying profit$m157142130176129
Underlying profit per sharecps
21.719.918.124.6
18.0
Operating free cash flow$m
352305301341
290
Operating free cash flow per sharecps
48.542.64247.5
40.4
Dividends declared
1
cps
26263239
39
Total assets$m5,6525,4555,3114,9544,896
Total liabilities$m
2,8292,6772,5842,172
2,275
Total equity$m2,8232,7782,7272,7822,621
Gearing ratio%
38363528
31
1.Figures have been restated for the adoption of NZ IFRS 15 Revenue from Contracts with Customers and NZ IFRS 16 Leases
2.Figures above reflect the combined result and position for continuing and discontinued operations and certain 2018 amounts have been reclassified to conform to the current year’s presentation
HISTORIC PERFORMANCE
1On 10 August 2020, the Board resolved to pay a 65% imputed final dividend of 23 cents per share on 15 September 2020. On 7 August 2020, Contact had $7 million of imputation credits available for use in future
periods.

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
57
FY20FY19
Reference number for
Wholesale segment
note (see following
page)
Twelve months ended 30 June 2020Twelve months ended 30 June 2019
VolumeGWAPVolumeGWAP
Note: this table has not been rounded andmight not addGWh$/MWh$mGWh$/MWh$m
Electricity sales to Customer3,741 88.8 3323,789 83.0 314 1
Electricity sales to Fixed C&I (netback)2,09280.31682,93681.6 240
2Electricity sales –Direct79105.188399.2 8
Electricity sales to C&I2,171 81.21763,019 82.1 248
CfDs –Tiwai support828805
3
CfDs -Long term sales581569
CfDs -Short term sales676471
Electricity sales -CFDs2,085 72.91521,844 73.9 136
Total contracted electricity sales7,99782.6 661 8,652 80.7 699
Steam sales544 47.6 26 558 47.3 26 4
Other income0 10 5
Net income on gas sales1 1 6
Net income on electricity related services2 0 7
Net other income2 12
Total contracted revenue (1)8,54080.6 6899,210 80.0 737
8
Generation costs8,523(31.2)(266)8,991(31.1)(279)
Acquired generation cost335(113.9)(38)634(107.7)(68)9
Generation costs (including acquired generation) (2)8,858 (34.3)(304)9,625 (36.1)(348)
Spot electricity revenue8,44499.7 8428,908128.6 1,146 10
Settlement on acquired generation335115.4 39634146.1 93 11
Spot revenue and settlement on acquired generation (GWAP)8,779100.3880 9,542 129.8 1,238
Spot electricity cost(5,833)(109.0)(636)(6,725)(137.6)(925)12
Settlement on CFDs sold(2,085)(97.8)(204)(1,844)(129.2)(238)13
Spot purchases and settlement on CFDs sold (LWAP)(7,918)(106.0)(840)(8,569)(135.8)(1,163)
Trading, merchant revenue and losses(3)4175
Wholesale EBITDAF (1+2+3)426 464
SEGMENTAL PERFORMANCE

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
58
Wholesale segment
Reference to detailed operating
segment performance
Comment
Revenue
C&I electricity –Fixed Price2
C&I electricity –Spot2-spot
Spot sales are regarded as a pass-through and not reflected in
performance reporting, any margin included in C&I netback
Wholesale electricity, net of hedging3+10+13
Electricity related services revenue7
Inter-segment electricity sales1
Gas6
Revenuefrom wholesale gas sales, purchase cost in gas and
diesel purchases
Steam4
Other income5
Costs
Electricity purchases, net of hedging9+11+12
Electricity purchases–Spot2-spotSpot sales are regarded as a pass-through
Electricity related services cost7
Gasand diesel purchases8 (less costs identified relating to 6)Includeswholesale gas sales purchases (if any)
Gas storage costs8
Carbon emissions8
Generation transmission andreserve costs8
Gas networks,transmission and meter costs –Fixed Price2
Gas networks,transmission and meter costs –Spot2-spotSpot sales are regarded as a pass-through
Gas networks,transmission and meter costs8
Other operating expenses8 (less costs identified relating to 2)
C&Ioperating costs are included in the calculation of netback
(2) and are excluded from generation operating costs
SEGMENT NOTE TO OPERATIONAL PERFORMANCE

Contact Energy / FY20 Full Year Results Presentation / 10 August 2020
59
Residential electricityunitFY17FY18FY19FY20Residential gasunitFY17FY18FY19FY20
Average connections#362,570359,171353,105355,073Average connections#59,80960,90561,71161,591
Sales volumesGWh2,6282,5492,4912,532Sales volumesTJ1,5811,6001,6051,577
Average usageper ICP7.27.17.17.1Average usageper ICP26.426.32625.6
Tariff$/MWh248250.1251.7250.4Tariff$/GJ3231.631.533.1
Network, meters and levies$/MWh-119.8-122.4-122.1-118.8Network, meters and levies$/GJ-19.5-19.6-18.4-17.9
Energy costs$/MWh-85.7-86.7-89.5-94.8Energy costs$/GJ-5.8-5.6-5.9-7.9
Gross margin$/MWh42.54140.236.8Carbon costs$/GJ-0.3-0.7-1-1.4
Gross margin$ per ICP308291283262Gross margin$/GJ6.45.86.35.9
Gross margin$m11210410093Gross margin$ per ICP168152165151
Gross margin$m109109
SME electricityunitFY17FY18FY19FY20SME gasunitFY17FY18FY19FY20
Average connections#56,29257,30955,02055,033Average connections#2,9813,6773,9013,947
Sales volumesGWh1,0741,0991,042991Sales volumesTJ8831,3001,4921,425
Average usageper ICP19.119.218.918.0Average usageper ICP296.3353.5382.6360.9
Tariff$/MWh224.1224.1226.8229.3Tariff$/GJ17.515.515.115.5
Network, meters and levies$/MWh-106.6-108-111.9-114.5Network, meters and levies$/GJ-5.3-4.5-5.5-6.0
Energy costs$/MWh-83.8-84.8-87.7-93.0Energy costs$/GJ-5.8-5.6-5.9-7.9
Gross margin$/MWh33.731.327.221.8Carbon costs$/GJ-0.3-0.7-1-1.4
Gross margin$ per ICP643599516392Gross margin$/GJ6.14.82.80.2
Gross margin$m36342822Gross margin$ per ICP1,8171,6891,06872
Gross margin$m5640
Customer EBITDAF
Electricity Gross margin$m148139128115
Gas Gross Margin$m1515149
Broadband Gross Margin$m-010
Total Gross Margin$m163154144125
Other income$m4445
Other operating costs$m-105-82-82-79
Customer EBITDAF$m62766750
Corporate allocation (50%)¹$m-12-13-12
Retailing EBITDAF$m62645438
EBITDAF margins (% of revenue)%6%7%5%4%
1.Prior to FY18,corporate costs were fully allocated to the reporting segments.
HISTORIC PERFORMANCE

---

Reliable.
Responsible.
Transforming.
2020 Integrated Report

Welcome to our first integrated report. The purpose of this report
is to explain how Contact Energy creates value over time, or as we
say in our company vision, how we are building a better New Zealand.
Our leadership team has reviewed the report and our CEO Mike Fuge and the Board have confirmed it is a true
and accurate picture of how Contact Energy created value for our stakeholders in the 12 months to 30 June 2020.
We expect it to be of interest to employees, customers, investors, suppliers, business partners, local communities,
iwi, legislators, regulators, policymakers and all other stakeholders.
The report follows the principles-based approach of the Integrated Reporting Framework and reflects our ongoing
journey towards integrated thinking, focused on value creation.
This report is dated 10 August 2020 and is signed on behalf of the Board of Directors of Contact Energy:
Robert McDonald
Chair
Our Chair Robert McDonald and the Board of Directors will host shareholders at the Contact Energy AGM

on 11 November. The notice of meeting and agenda will be provided to shareholders in mid-October 2020.
More than 98 per cent of Contact Energy shareholders receive digital reports from us. We encourage shareholders
to move to digital, but we’ve also ensured the 2,000 printed reports use environmentally responsible paper and inks.
Dame Therese Walsh
Chair, Audit & Risk Committee
Contents
Contact
INTEGRATED
REPORT
2020
Contents

Contents
Jargon buster 2
Key activity this year 3
Chair’s report 4
CEO’s report 6
Who we are 8
Our board 9
Our leadership team 10
Our moral compass – Ngā Tikanga 11
Our operations 12
Creating value 14
Our strategy 16
Our supply chain 17
What matters most 18
Accessibility 20
Customer wellbeing and energy hardship 21
Customer experience 23
Reliability 24
Reliable renewable energy 25
Financial sustainability 28
Regulation 30
Employee wellbeing 31
Employee safety 33
Resilient supply chain 34
Environmental sustainability 35
Community wellbeing 36
Climate change 39
Better water quality 41
Biodiversity 42
Governance matters 43
Our board 44
Our Code of Conduct 46
Risk management and assurance 47
Remuneration report 48
Additional disclosures 55
Statutory disclosures 56
Sustainability disclosures 61
TCFD index 66
GRI index 67
Financial statements 69
Statements 70
Independent auditor’s report 96
Corporate directory 100
Contact
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Contact
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Jargon buster
ASX Australian Securities Exchange.
Contact The company called Contact Energy Limited. Unless otherwise stated,

all activities and indicators in this report are for Contact.
CEN Contact’s stock ticker on NZX and ASX.
EBITDAF Earnings before interest, tax, depreciation, amortisation, fair value
adjustments and other significant items.
ERANZ The Electricity Retailers Association represents companies that
sell electricity to NZ customers and businesses. ERANZ’s role is to
promote and enhance a sustainable and competitive retail electricity
market that delivers value to electricity customers.
ESG The environmental, social and governance factors to evaluate
performance.
EV Electric vehicle.
FY18 The financial year ended 30 June 2018.
FY19 The financial year ended 30 June 2019.
FY20 The financial year ended 30 June 2020.
FY21 The financial year ended 30 June 2021.
FTE A ‘full-time equivalent’ is a way to measure the workload of one person.
GRI The Global Reporting Initiative is an international independent
standards organisation that helps businesses, governments and other
organisations understand and communicate their impacts on things
like climate change, human rights and corruption.
The Group This is Contact Energy Limited, Contact Energy Trustee Company
Limited (a subsidiary), Simply Energy Limited (a joint venture) and
Drylandcarbon One Limited Partnership (an associate).
Hydrology The scientific study of the movement, distribution, and management
of water. The ‘hydrologic cycle’ involves the continuous circulation of
water and underpins hydro-electric generation. Understanding the
cycling of water into, through, and out of catchments is a key element
of hydrology.
<IR> The Integrated Reporting Framework is a principles-based framework
for corporate reporting.
MBIE The Ministry of Business, Innovation and Employment.
N PAT Net profit after tax.
NZAS New Zealand’s Aluminium Smelter is the country’s only aluminium

smelter and is located on Tiwai Peninsula, across the harbour from
Bluff in Southland.
NZX New Zealand Stock Exchange.
PPD Prompt payment discounts.
SDGs Sustainable Development Goals are a collection of 17 global goals
designed to be a “blueprint to achieve a better and more sustainable
future for all”. The SDGs were set in 2015 by the United Nations
General Assembly and intended to be achieved by the year 2030.
SME Small and medium-sized enterprises are often defined as those with

fewer than 20 employees.
TCFD The Task Force for Climate-related Financial Disclosures provides

a framework for climate-related financial risk disclosures.
TRIFR Total Recordable Injury Frequency Rate is a globally recognised
measure of injury rates that can be benchmarked.
Contact
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Jargon Buster

Key activity this financial year
July
2 houses in Taupō temporarily evacuated
after geothermal subsidence.
August
FY19 results announced with EBITDAF
from continuing operations of $505m,
up 12% from FY18, and net profit of
$345m.
September
Paid 23c per share FY19 final dividend
to investors, following on from interim
dividend of 16c paid in April 2019.
Confirmed new emissions reductions
targets after approval from Science
Based Targets initiative.
October
Held our first EnergyMate community
hui with ERANZ.
Won ‘Best Established Brand’ at the
Charge Energy Awards in Iceland.
November
New Chief People Officer Jan Bibby
started.
December
Announced investment of up to $5m
to fast-track Transpower’s Clutha-
Upper Waitaki Lines Project build.
18 summer interns joined us across

the country.
January
Entered into a $50m, 4-year
sustainability-linked loan facility

with Westpac NZ.
Launched the ‘Your Skills, Our Energy’
advertising campaign celebrating small
businesses.
February
New CEO
Mike Fuge started.
FY20 interim results

revealed EBITDAF
from continuing
operations of $221m,
down 21% from FY19,
and net profit of $59m.
17,000 new broadband customers
joined us in the past 12 months.
March
COVID-19 pandemic response under
way with electricity confirmed as an
essential service and 93% of our people
working from home.
NZ’s largest electrode boiler to be
installed at Open Country Dairy’s Awarua
site using Contact-supplied electricity.
Fined $245,000 for misleading
customers in a 2017 AA Smartfuel
promotion.
April
Paid a 16c per share FY20 interim
dividend to investors.
Donated $400,000 of free power

to St John, Women’s Refuge and
the Salvation Army, and $40,000
to iwi and hapū COVID-19 response
initiatives in Taupō.
May
Drylandcarbon partnership makes first
plantings at Matiawa, near Kaikōura.
June
Launched ‘Transforming Ways of
Working’ programme to our people.
11,600 customers transferred to Contact
after energyclubnz exits the market.
Electricity Authority preliminary ruling
found our actions in flood conditions of
late 2019 did not create an undesirable
trading situation.
New record of 3,333GWh set for
geothermal generation in a financial year.
23c
per share
16 c
per share
Key activity this financial year
Contact
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Chair’s report
Welcome to Contact’s FY20 integrated report. I’m pleased to be sharing my
perspectives and reflections on the year and looking ahead to the new challenges
and opportunities of FY21 and beyond.
After the resignation of Dennis Barnes as CEO in June 2019,
Mike Fuge arrived in February 2020 to begin a new chapter
of leadership for Contact. Over his nine years Dennis
worked passionately to make Contact a high-performing
organisation, with strong shareholder returns and significant
investment in renewable generation, flexible thermal
generation, enterprise-wide systems and an outstanding
safety culture. We thank Dennis for his commitment

to Contact.
We were excited to have Mike join us from Refining NZ.

He has a strong history in the energy sector in New Zealand
and overseas, including as CEO of Pacific Hydro in Australia
and as COO at Genesis Energy. He has a passion for
renewable energy and is relishing the challenge to deliver

on Contact’s vision to build a better New Zealand and play
a leading role in the decarbonisation of the energy sector
and wider economy.
The Board has been working with Mike and his leadership
team to agree on Contact’s strategic priorities. This will also
provide us with a chance to reflect on the future shape of
the company, the sector and the country in a world that has
COVID-19 and potentially does not have the Tiwai smelter.
It is fair to say Mike’s first 100 days at Contact were full
of surprises, as just weeks after his commencement, the
COVID-19 pandemic response began and his focus and
energy turned to crisis management and doing right by
Contact’s customers, staff and broader New Zealand.
It has been an extraordinary time. Contact fully supported
the actions of the NZ Government in restricting the spread
of COVID-19. A lot of work was done to ensure we were
actively reducing the risk of the virus spreading and making
sure our people across New Zealand were as safe as
possible.
The response from the 943 people across Contact in the
wake of the COVID-19 pandemic response was really
pleasing, as the team adapted and continued to deliver
for customers and New Zealand at a very challenging
time. The directors met regularly with the leadership
team through this period and we saw the company was
in good hands and overall Contact coped extremely

well in challenging, uncharted circumstances.
More change and challenges were to come soon after
the pandemic lockdown too, with the closure of the Tiwai
smelter announced following the conclusion of Rio Tinto’s
strategic review. Citing high energy costs and a challenging
outlook for the aluminium industry, NZAS gave notice to
terminate the power supply contract in August 2021.

We have made no secret of our view that the best
interests of NZ Inc is served by NZAS remaining
operational in the medium-term: ideally for at least
the next five years. The inability for this to happen
will be bad news not only for Southland, but also for
global emissions and New Zealand’s renewable energy
aspirations. In our view a disorderly exit will impact
multiple stakeholders and all generation-retailers.
Contact has been and continues to work on mitigation
options for a post-Tiwai environment and we are well-
positioned to emerge in a stronger competitive position
over the longer term. We have already announced the
pausing of the world-class, shovel-ready geothermal
project at Tauhara: putting this on hold is the best and

only sensible option at the moment but we believe its time
will come as supply and demand stabilises in the future.
More broadly we are a resilient organisation and in good
shape. Our portfolio of long-life renewable generation
assets, flexible generation portfolio, strong balance sheet
and operational discipline provide confidence we are
well-placed even in a lower demand environment.
FY20 has seen Contact continue to deliver solid financial
results. Despite initial concerns regarding the impact of
COVID-19, the second half of the year has been in line with
expectations, after a more challenging first six months.
FY20 has seen Contact continue to deliver solid financial results.
Despite initial concerns regarding the impact of COVID-19, the
second half of the year has been in line with expectations, after a
more challenging first six months.
Contact
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Chair’s report

One observation I’d like to make is in relation to
predictions by some of high wholesale prices over the
longer term. We do not see this as a likely scenario or

a sustainable trend as long-term pricing is linked to the
long-run marginal cost of new renewable projects to
meet demand, plus the costs associated with firming
renewable intermittency.
Underpinning these results is Contact’s operational
efficiencies, the quality of our generation assets and
strength of the balance sheet. We have a flexible
portfolio of gas-fired and renewable generation assets
that contribute to the security of electricity supply

for Kiwis and a lower carbon future for the country.
It is particularly pleasing to deliver investors the same
39cps annual dividend this year as last year. However

as we look forward to a likely period of disruption in
the industry, we will need to reconsider the level of
future dividends as the status of Tiwai is cemented

and mitigations emerge. We will provide investors
with more clarity on this as soon as is appropriate.
This year we have produced a different style of report,
delivering an integrated report for the first time. This is
for a much broader group of stakeholders than investors
alone and is not merely a look back over the year, but
also forward-looking. We are transparent and we want
to help people have a better understanding of how we
do business and how we deliver value beyond financial
returns. This is the right thing to do and we understand
the increasing expectations on all companies from
investors, customers and communities to provide this
information.
We will continue to build on our ESG credentials and
Contact has a leading role to play in tackling climate
change via tangible actions that drive good business
outcomes.
This includes supporting and growing New Zealand’s

low-carbon advantage. To do this we need policy
settings to support accelerated electrification of
process heat and transport and agriculture sectors
away from carbon-intensive fossil fuels like coal and
petroleum – but without unduly burdening the economy
and consumers.
We are already one of the first power companies in the
world to have carbon emissions targets verified by the
Science Based Targets initiative, we have an innovative
green borrowing programme, and this year we inked

one of the country’s first sustainability-linked loans.
With the recent appointment of James Kilty as deputy
CEO we have also reiterated our commitment to
accelerating the decarbonisation of the New Zealand
economy, and our intention to play a leading role in this
ongoing transition.
We’ve also walked the talk by making reductions in
our own carbon emissions. We can do more here and
the Tiwai smelter’s exit will over time expedite the
retirement of thermal generation assets in the industry
which will see emissions decline even further.
Geothermal generation has a huge part to play here too,
as it provides true baseload power to the grid. We’re very
proud of the Contact team that leads the world in the
development of this very low emission generation option.
Contact is proud to be an important, successful
contributor to New Zealand and a strong participant

in this country’s efficient, competitive energy market.
We operate in an environment that many countries
around the world are envious of, and regard as an
exemplar of best practice. It is imperfect, but compared
to the distortions and value destruction present in other
countries we believe it works very well most of the time.
Finally thank you to Mike, Dennis and the Contact team
for their hard work and dedication over FY20. As always
there is much to be done, but it is an exciting new chapter
for the company.
We will keep our focus on our role in building a better
New Zealand, and delivering value to our stakeholders
alongside sustainable, long-term growth.
Yours sincerely
Robert McDonald
Chair
We will keep our focus on our role in building a better New Zealand,
and delivering value to our stakeholders alongside sustainable,
long-term growth.
With the recent appointment of James Kilty as deputy CEO
we have also reiterated our commitment to accelerating
the decarbonisation of the New Zealand economy, and our
intention to play a leading role in this ongoing transition.
Contact
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Chair’s report

CEO’s report
1. EBITDAF, underlying profit, free cash flow and operating free cash flow are non-GAAP (generally accepted accounting practice) measures. Information regarding the usefulness, calculation and reconciliation of these measures is provided within note A2 to the financial statements.
It is a privilege to share my thoughts in this integrated
annual report for the first time as CEO of Contact Energy.
This is a great company and I am very pleased to be here.
We have a fantastic, talented, resilient team and a very
supportive Board. I’d like to thank everyone for making
me feel so welcome and for their assistance over my
first few months in the role, including the outgoing CEO
Dennis Barnes. The time has flown by since my first day
in February 2020.
Elsewhere Contact’s leadership team continues to evolve
too. Late in 2019 we appointed Jan Bibby as our new
Chief People Officer, and in July 2020 Jacqui Nelson was
appointed as our Chief Generation Officer. James Kilty
moved into a new role as Deputy CEO and has the reins
on our decarbonisation and demand growth efforts.
Financial results
This year there have been some unique challenges to
navigate. This includes the impact of COVID-19 early in
my tenure, and more recently the announcement around
the Tiwai smelter’s exit. We also had an unusual hydrology
sequence where the Clutha River experienced periods of
extremely low inflows and a one in 20 year flood.
In the first half of FY20 we felt the impact of recent
under-investment in New Zealand’s ageing gas fields as
an unreliable supply of natural gas led to a sharp increase
in thermal input costs. However across the full year gas
costs landed marginally lower than FY19.
Despite these challenges and unusual circumstances
our high-quality, long-life, renewable generation assets
and lean, low-cost retail operations combined to deliver
another solid financial result for shareholders.
In FY20 Contact generated revenue of $2,073 million,
EBITDAF
1
of $451 million, profit of $125 million and
operating free cash flow of $290 million. Investors will
receive a total annual dividend of 39 cents per share.
This is in line with the FY19 dividend.
COVID-19 response
There is no denying that New Zealand changed after
11:59pm on 25 March when we moved into lockdown
for COVID-19. Throughout the lockdown we stood up a
crisis management team and continued to operate as an
essential service and lifeline utility, with an unwavering
focus on looking after our customers, looking after
our people, and doing right by New Zealand. Through
necessity we mobilised all but a small number of our
people to work from home, including home-based

call centres – this was extraordinary and something
we never thought we could do.
We acknowledge all of the people who kept New Zealand
going as we were all confined to our bubbles – a massive
thank you from us all here at Contact. It was humbling

to see the dedication of everyone working hard for
New Zealand during a very challenging period.
We looked after our people across our sites and offices
in Te Rapa, Stratford, Levin, Taupo, Whirinaki, Dunedin,
Clyde, Roxburgh, Auckland and Wellington. We continued
to serve our customers but minimised any risk of spreading
COVID-19 through meticulous continuity and crisis
planning, and ramped up hygiene and physical distancing.
As the COVID-19 response got under way, we also
reassured our 943 Contact people across New Zealand
that if they needed to be home for anything pandemic-
related – including looking after elderly relatives or to
be with their kids – we would pay 100 per cent of their
salaries and not require them to take leave. It was the
right thing to do.
Strategic priorities
And now as New Zealand’s post-lockdown economic
recovery begins we have a significant role to play.

We want to play a role in leading New Zealand to a
low-carbon future by developing low carbon solutions
for customers, and advocating for regulatory settings
that will facilitate the transition of New Zealand’s energy
system away from fossil fuels.
We are helping our commercial and industrial customers
to transition from higher carbon fuels to low carbon
fuels, with new products and renewable substitutes.

We aim to displace 1PJ of industrial heat with electricity
by 2022 – roughly equivalent to the electricity used by

all the houses in Taupō in a year.
Recent successes include partnering with Open Country
Dairy to support the installation of New Zealand’s
largest electrode boiler (13MW) at their Awarua site,
and the expansion of our geothermal direct heat to
connect the Nature’s Flame wood pellet manufacturing
plant and displace coal usage outside of New Zealand.
We have also continued to grow our demand flexibility
platform – with more than 20 customers signed up
to automatically reduce power consumption from
equipment such as pumps, fans and compressors

during high usage periods.
Contact
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As well as our focus on decarbonisation and demand
growth, we are also under way with several other areas
of strategic activity as we pursue our vision of building

a better New Zealand.
This includes:
• maintaining flexibility around our investment options
across multiple, renewable energy sources (with a
focus on geothermal);
• simplifying how Contact is set up to be more effective
and efficient, reviewing our core processes and
organisational structure, and building on the experiences
of the COVID-19 lockdown by transforming our ways

of working;
• being a leading energy retailer in New Zealand as we
accelerate digitisation, consider adjacent products

and services, and optimise our spending; and
• embedding our commitment to best practice
environmental, social and governance practices

across Contact.
Tiwai and Tauhara
We will also continue planning for a post-Tiwai environment.
We expressed our disappointment when Rio Tinto’s July
announcement emerged setting out the planned closure of
the smelter in August 2021. If the smelter is to leave, we are
very supportive of the runway to closure being extended
beyond the current 14-month period. You may hear this
described as a ‘just transition’ or ‘orderly exit’ to enable
Southland, New Zealand and the electricity industry to
prepare for a post-Tiwai world. We remain optimistic a deal
can be done and will leave no stone unturned on this front.
In the meantime it is prudent for us to accelerate our
mitigation plans to minimise the potential impact. We have
already paused the development of a new power station
on the Tauhara geothermal field near Taupō. The team
involved in the preparation of the site and $40m appraisal
campaign have done an outstanding job and confirmed
that Tauhara is a world-class renewable geothermal
project, with very low associated carbon emissions.
It is on hold for now but we believe it is a matter of

when – not if – Tauhara will play an important role
in New Zealand’s transition to a low-carbon future.
However we must get a clearer picture of demand before
we make any final decision to proceed with this $600 million
investment. We believe Tauhara remains New Zealand’s
cheapest and most attractive option for new, renewable,
baseload electricity generation and when its time comes,
it will deliver substantial economic benefits and jobs in
the central North Island when it proceeds.
Customer focus
On the retail front we now have more than 500,000
connections across electricity, gas and broadband. In
June more than 10,000 energyclubnz customers joined
Contact as that retailer exited the market. We have
continued our transformation to becoming a digital-first
retailer, with more than 100,000 customers now using
our apps and website for self-service each month.
Our focus on improving customer experience has seen
our Contact app ratings improve significantly, and this
success has eased demand on our traditional service
channels, with call volumes reducing from 850,000 in
FY19 to 760,000 in FY20.
The release of the Electricity Pricing Review’s final
report and Government response in October 2019
commanded a lot of attention across the sector. We
believe the goal should be to seek enduring solutions

to some of the challenges identified in the report.
We continue to work closely with the Electricity
Authority, ERANZ, MBIE and the Government as
recommendations from the Review are consulted on

and implemented. These recommendations relate to
both the wholesale and retail markets in New Zealand.

In particular, we agreed to extend voluntary market
making to support market liquidity, ensure we are
supporting vulnerable and medically dependent
customers, continuing to phase out prompt payment
discounts, and we supported the cessation of win-backs.
We help our most vulnerable customers keep the power
on with initiatives such as PrePay, flexible billing options
and contributing to hardship funds and education
campaigns. And more broadly we continue to work hard
to help customers maintain access to energy and avoid
burdensome debt by giving them choice, certainty and
control over their energy needs.
We were surprised to be the subject of allegations of
creating an undesirable trading situation in December 2019
when the Clyde River was in a major flood, but pleased
that the Electricity Authority did not uphold the complaint
against us in their preliminary decision in June 2020. We
are engaging with the Authority in the consultation that
followed the preliminary decision’s release.
When the Clutha River is in significant flood our focus

is always to operate the Clutha hydro system to ensure
the safety of communities downstream, the safety of
our people and assets, and to manage our resource
consent obligations.
The Authority is expected to release its findings into
a ‘higher standards of trading conduct’ complaint in
relation to the same flood event in the next few months.
We disagree with these allegations too and we do not
expect the complaint to be upheld against us.
Conclusion
We’re excited about the future for Contact.
We are a strong company with plenty of options
and opportunities in front of us. We have a
robust balance sheet, an excellent portfolio
of assets and a very capable team.
And as you will see over the ensuing pages of this report,
we are focused on delivering value and reporting on
the things that matter most to our stakeholders. We
appreciate your ongoing support and interest.
Kind regards

Mike Fuge
CEO
Contact
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