Results reflect significant change within half year

Results announcement





Results for announcement to the market
Name of issuer Mercury NZ Limited (MCY)
Reporting Period 6 months to 31 December 2021
Previous Reporting Period 6 months to 31 December 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$873,000 -7.5%
Total Revenue $873,000 -7.5%
Net profit/(loss) from
continuing operations
$427,000 +228.5%
Total net profit/(loss) $427,000 +228.5%
Interim Dividend
Amount per Quoted Equity
Security
$0.08000000
Imputed amount per Quoted
Equity Security
$0.03111111
Record Date 17 March 2022
Dividend Payment Date 1 April 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$3.32 $2.66
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to accompanying unaudited financial statements.
The change in prior comparable period in net tangible assets per
quoted equity security is based on HY21 restated figures as
outlined in further detail in the HY22 financial statements.
Authority for this announcement
Name of person

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

22/02/2022

Unaudited financial statements accompany this announcement.

---

Results reflect significant business change within half year
HY22 Financial Results Summary
HY2022 HY2021 Change %
EBITDAF ($M) 242 290 -17
NET PROFIT AFTER TAX ($M) 427 130 228
UNDERLYING EARNINGS AFTER TAX ($M) 89 115 -23
STAY-IN-BUSINESS CAPITAL EXPENDITURE ($M) 20 23 -13
ELECTRICITY GENERATION (GWh) 3,745 3,320 13

INTERIM FULLY IMPUTED ORDINARY DIVIDEND (CENTS PER SHARE) – TO
BE PAID ON 1 APRIL


8.0

6.8 18

22 February 2022 – A period of significant change for Mercury – including becoming New Zealand’s largest
wind generator – shaped Mercury’s half year results to 31 December 2021, said Mercury Chief Executive,
Vince Hawksworth.
The settlement of the Tilt Renewables transaction and the Turitea North wind farm reaching full generation, as well
as the legacy Norske Skog contract close out, all shaped Mercury’s half year results as the company positions itself
for a period of growth.
“Within the last six months, Mercury has transformed from a company with no wind generation to the largest wind
generator in New Zealand,” Mr Hawksworth said.
In August, Mercury completed the acquisition of Tilt Renewables’ New Zealand wind farms (generating 482 GWh
over the period), and within the remaining period progressively brought the Turitea North wind farm on stream
(adding another 105 GWh over the period).
“Together these significantly diversify our revenue streams and position us well for an exciting period of growth as
we head into an ever-accelerating pace of change with decarbonisation front and centre.”
The Turitea South wind farm is scheduled for completion in mid-2023, which will make Turitea New Zealand’s
largest wind farm.
Meanwhile, the acquisition of Trustpower’s retail business will be another significant milestone for Mercury.
“This will accelerate Mercury’s retail strategy, which is centred on delivering utility solutions and creating more
value for our customers.
“This acquisition also significantly increases our scale, allowing us to make meaningful investment in our underlying
IT systems and ways of working to drive greater innovation, new products and experiences,” said Mr Hawksworth.
The High Court approved the Tauranga Energy Consumer Trust restructure in December with the transaction
expected to be completed in the last quarter of FY22.
STOCK EXCHANGE LISTINGS: NZX (MCY) / ASX (MCY)

NEWS RELEASE

During the period Mercury also negotiated the early exit of a foundation hedge with Norske Skog. The settlement of
the wider transaction and its associated accounting impacts reduced HY2022 EBITDAF by $50m. Exiting this
contract allows Mercury to recontract this volume at a price more reflective of the current market.
While positioning Mercury well for the future, collectively this activity has impacted the HY2022 result. HY2022
EBITDAF is $242m, $48m down on the prior year, recognising acquisition accounting for Tilt and the close-out of
the Norske Skog legacy contract.
Net profit after tax was $427 million, up $297 million on the previous year largely due to the $367 million net gain
on sale of Mercury’s 19.9% Tilt Renewables shareholding. Underlying earnings which normalise net profit after tax
fell 23% to $89m.
“The proceeds from the sale were effectively reinvested into furthering our decarbonisation ambitions, with the
associated acquisition of Tilt’s New Zealand operations and future development options.”
Mercury acquired Tilt’s New Zealand operations including future development options for an enterprise valuation of
NZ$797m in August 2021, funded from the sale of its Tilt shareholding and a cash cost of NZ$634 million. This
contributed to $685 million of growth investment in the half.
Shareholders can further support our growth through Mercury’s newly established Dividend Reinvestment Plan.
CHALLENGING OPERATING CONDITIONS CONTINUE
“Despite much positive change, the six months was not without its challenges. Sustained dry conditions across the
Waikato catchment reduced hydro generation. Careful lake management has been critical to manage electricity
portfolio risks, and that prudence is reflected in our results.”
Hydro generation was 91 GWh down on the prior comparable period (where conditions were also dry) as a result.
The 44-day unplanned outage at Kawerau geothermal power station also extended into the start of the financial
year (ending on 20 July) and coincided with high spot prices.
“These challenging conditions reinforce the importance of building resilience in our business and our people.”
Mr Hawksworth said it was pleasing to see Mercury’s Thrive programme, focussed on building operational
excellence as a mindset, continue to deliver value, tracking well against the $30 million EBITDAF benefit signalled
for FY22.
DECARBONISATION SHAPING MERCURY’S FUTURE
Mercury Chair, Prue Flacks said, “Ensuring the transition to a renewable future is equitable is essential. Balancing
affordability and security is a key consideration for the electricity sector’s contribution to the decarbonisation
challenge.
“The market must continue to evolve for the next phase of the transition, keeping what is good but adapting to
address new challenges including the need for rapid response peaking capacity. Mercury welcomes the opportunity
to participate in this transition.
“However, regulatory uncertainty facing the sector is a challenge. We agree with the Government’s position that
climate change must be a priority but are increasingly concerned about the potential for policy or regulatory change
that unintentionally undermines this position and jeopardises New Zealand’s decarbonisation goals.
“A good example of this is our resource management system, which needs to support renewable generation
development if we are to decarbonise at a pace that becomes more urgent by the day,” she said.
OTHER OPERATIONAL HIGHLIGHTS
• Enhancing existing generation including $30 million of rebalancing works at the Rotokawa geothermal field
delivering an additional 7MW on average each year; and successful trial of CO2 reinjection at Ngātamariki
showing promising signs for reducing CO2 emissions.
• Greater focus on supporting customers experiencing hardship including progress on Mercury’s customer
care approach through a collaborative approach with community, social and government agencies.

• Customer connections holding steady amidst high levels of competition at 327,000, ending a period of
declining market share. A clear focus on delivering value to customers, including the ‘Move with Mercury’
campaign, contributed to this outcome.
• Collaborating with industry and the public on the energy transition initiatives like the Aotearoa Circle Low
Carbon Energy Roadmap.
• Building out our COVID-19 preparedness and resilience to sustain critical business operations in a rapidly
moving situation. Mercury has also been involved in the successful pilot of rapid antigen testing and
introduction across the business of an enterprise-wide vaccination policy.
• Sustained low TRIFR (Total Reportable Incident Frequency Rate) of 0.25 in the six-month period and no
serious harm injuries over the period, despite significant works at generation sites.
INTERIM DIVIDEND
The Board has declared a fully imputed interim dividend of 8.0 cents per share, representing an increase of 18% on
the HY21 dividend reflecting the expected lift in earnings, and announced a Dividend Reinvestment Plan which is
intended to be underwritten for this dividend.
GUIDANCE
Mercury’s full year EBITDAF guidance remains at $570 million reflecting impacts of the Tilt Renewables and
Trustpower retail acquisitions and excludes likely interim insurance payment arising from Kawerau station
unplanned outage.
Guidance may change and remains subject to any material events, significant one-off expenses or other
unforeseen circumstances including changes to hydrological conditions.
FY22 stay-in-business capex guidance remains at $70 million, and FY22 ordinary dividend guidance remains at
20.0cps, fully imputed, representing a 18% increase on FY21 and the 14
th
consecutive year of ordinary dividend
increases.
ENDS
Howard Thomas
General Counsel and Company Secretary
Mercury NZ Limited


For investor relations queries, please contact:
Tim Thompson
Head of Treasury and Investor Relations
0275 173 470
investor@mercury.co.nz
For media queries, please contact:
Shannon Goldstone
Head of Communications
027 210 5337
media@mercury.co.nz

ABOUT MERCURY NZ LIMITED
Mercury’s mission is energy freedom. Our purpose is to inspire New Zealanders to enjoy energy in more wonderful ways and
our goal is to be New Zealand’s leading energy brand. We focus on our customers, our people, our partners and our country;
maintain a long term view of sustainability; and promote wonderful choices. Mercury is energy made wonderful.
Visit us at: www.mercury.co.nz

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MERCURY NZ LIMITED
2022
INTERIM
REPORT.

2
As we assess the challenges that lie ahead for New Zealand’s
journey to Net Zero, it can be difficult to see past the
immediate hurdles. However, we must not lose sight of the
significant gains to be made beyond the pressing need to
clean up our world – a more equitable society, a resilient
economy and a better future for the generations who follow.
Both in New Zealand and globally, the growing urgency to
decarbonise has understandably put a spotlight on electricity
as the industry underpinning much of this activity. In New
Zealand, the sector will play a critical role in ensuring we deliver
on our climate change commitments, and it needs to be up
for the challenge.
We believe we are. We recognise the growing need for a more
unified approach to secure the best possible outcomes for all.
Mercury has a role to play in enabling this call for unity, as well
as delivering meaningful actions that contribute to our lower
carbon future.
VINCE HAWKSWORTH // CHIEF EXECUTIVE
PRUE FLACKS // CHAIR
CHAIR
& CHIEF
EXECUTIVE
UPDATE.
CONTENTS.
02 CHAIR & CHIEF EXECUTIVE UPDATE
06 OUR FINANCIALS
07 INDEPENDENT REVIEW REPORT
08 FINANCIAL STATEMENTS
19 SHAREHOLDER INFORMATION
19 DIRECTORY

MERCURY INTERIM REPORT 2022 3
BALANCING THE TRILEMMA
Ensuring that the transition to a renewable
future is equitable is essential. Balancing
affordability and security remains a key
consideration for the electricity sector’s
contribution to the decarbonisation challenge.
Regulatory stability essential
Regulatory uncertainty facing the sector
remains elevated. We agree with the
Government’s position that climate change
must be a priority for New Zealand and Mercury
is supportive of the climate change targets set.
However, we are increasingly concerned about
the potential for policy or regulatory change
that unintentionally undermines this position
and jeopardises New Zealand’s decarbonisation
goals. There is a need for joined up policy that
recognises that the electricity sector is the
platform many other industries will depend
on to decarbonise.
The electricity market has delivered 85%
renewable electricity for New Zealand and will
reach 90% renewable within the first emissions
budget period. However, the market must
continue to evolve for the next phase of the
transition, keeping what is good but adapting
to address new challenges including the need
for rapid response peaking capacity. Mercury
welcomes the opportunity to participate in
this transition.
Intense retail competition
At the same time, the retail electricity market
remains extremely competitive. Amid these
high levels of competition, it was pleasing to
see Mercury customer numbers hold steady
at 327,000 connections, ending a period
of declining market share. A clear focus on
delivering value to customers, including our
‘Move with Mercury’ campaign, contributed to
this outcome.
Challenging operating conditions
Sustained dry conditions across the Waikato
catchment remain a key challenge, with a
continuation of conditions that shaped FY21.
Prudent lake management is critical, and our
teams are planning accordingly.
As a result, hydro generation was 91 GWh down
on the prior comparable period.
The 44-day unplanned outage at Kawerau
geothermal power station continued into the
start of the financial year (ending on 20 July)
and coincided with higher spot prices impacted
by low national hydrological conditions.
The electricity forward curve is indicating that
higher spot prices will persist over the near-term,
reflecting higher thermal generation fuel prices
and gas supply constraints.
FINANCIAL PERFORMANCE
The challenging operating conditions, along
with careful storage management in Lake
Taupō, have impacted Mercury’s financial
results in the first half for FY22. Mercury’s
operating earnings (EBITDAF
1
) were down
$48 million to $242 million.
This result was only partially offset by increased
scale following the completion in August
of the acquisition of Tilt Renewables’ New
Zealand wind farms (representing 482 GWh of
new wind generation for the period), as well as
the Turitea North wind farm starting to come
on stream (adding another 105 GWh over
the period).
Our continued focus on Thriving Today and
Shaping Tomorrow – operational excellence as
a mindset – continues to build resilience in our
business. Despite challenges through the year
and with limited ability to collaborate effectively
during lockdowns, Thrive is tracking well against
the $30 million EBITDAF benefit signalled
for FY22.
Operational expenditure was up $15 million on
the prior comparable period, while total stay-in-
business capital expenditure for the period was
$20 million (down $3 million).
Net profit after tax was up $297 million to $427
million due to the $367 million net gain on sale
of our 19.9% Tilt Renewables shareholding.
Mercury’s full year EBITDAF guidance remains
at $570 million reflecting impacts of the Tilt
Renewables and Trustpower retail acquisitions
and excludes likely interim insurance payment
arising from Kawerau station unplanned outage.
$242M
p
EBITDAF
NET PROFIT
AFTER TAX
$427M
o
OPERATING
EXPENDITURE
$106M
o
1. EBITDAF: Earnings before net interest expense, tax expense, depreciation and amortisation, change in the fair value of
financial instruments, gain on sale and impairments.

MERCURY INTERIM REPORT 2022 4
INTERIM DIVIDEND
Your Board has declared a fully imputed interim
dividend of 8.0 cents per share payable to
our 75,000 owners including the Crown. This
represents an increase of 18% on the HY21
dividend and reflects a significant period of
growth for Mercury, outlined in more detail
below. The dividend will be paid on 1 April 2022.
PEOPLE AND WELLBEING
The first six months of FY22 has been
characterised by a sustained lockdown
for many in New Zealand. This has been
an extremely challenging time for our
communities, our stakeholders and our
customers. Our people are not immune.
Mercury is monitoring wellbeing carefully
and thinking hard about how we can support
our people. A range of measures have been
implemented; including access to wellbeing
tools and workshops, the gifting of extra time
off, one-off payments for staff to purchase
equipment and efforts to boost collaboration
and communication virtually.
Mercury has also been involved in the
successful pilot of rapid antigen testing. Our
generation sites continue regular rapid antigen
testing of our employees and contractors as
an added control against COVID-19 along with
the introduction across the business of our
vaccination policy.
In a trying year, our employees and contract
workforce remained committed to health
and safety as a priority. This continues to
be reflected in a sustained low TRIFR (Total
Reportable Incident Frequency Rate) – ending
the six-month period with a TRIFR of 0.25.
There were no serious harm injuries over the
period, despite significant works at some of our
generation sites. Our goal remains zero harm,
and we continue to review and improve our
systems and processes to meet this goal.
THRIVING TODAY, SHAPING TOMORROW
We expect an ever-accelerating pace of
change in our sector, and we have developed
our strategic framework to best position us to
thrive in a rapidly changing environment.
Our strategic themes of ‘Thriving Today’
and ‘Shaping Tomorrow’ reflect our view
that purposeful action today influences and
will build measurable success in the future.
Diversification to strengthen our resilience
characterised much of our activity in the first
six months of FY22.
This strengthened focus on continuous
improvement through Thrive has connected
our people more closely to the role they play in
delivering our strategy and fulfilling our purpose.
Increasing value; options for growth
In August we completed the addition of Tilt
Renewables’ New Zealand wind assets into
our portfolio, and the Turitea North wind farm
became operational in the last quarter of
2021. Together these significantly diversify our
revenue streams.
We are now focussed on the Turitea South wind
farm, which is scheduled for completion in
mid-2023 and will make Turitea New Zealand’s
largest wind farm. We have also commenced
early work to advance the consented 53-turbine
wind farm at Puketoi.
At the same time, we continue to progress
the consents for the 19-turbine Kaiwaikawe
wind farm. This project has been a tangible
demonstration of how the absence of joined
up policy settings is hampering the delivery
of new renewable generation by undervaluing
the decarbonisation benefits. We continue to
engage closely with all relevant parties including
the Department of Conservation.
Mercury’s focus on enhancing its existing
generation also continues. We have
completed $30 million of rebalancing works
at the Rotokawa geothermal field, projected
to deliver an additional 7MW on average each
year. In addition, a successful trial of CO2
reinjection at Ngātamariki shows promising
signs for reducing emissions associated with
geothermal generation.
8.0CPS
o
INTERIM DIVIDEND
DECLARED
THE CHALLENGING
OPERATING CONDITIONS,
ALONG WITH CAREFUL
STORAGE MANAGEMENT
IN LAKE TAUPŌ, HAVE
IMPACTED MERCURY’S
FINANCIAL RESULTS IN THE
FIRST HALF FOR FY22.

MERCURY INTERIM REPORT 2022 5
Leading the low-carbon transition
The issues associated with New Zealand’s
transition to a decarbonised economy are
complex. Successful transition will require
working across different sectors and with
Government and public agencies. Policy
settings will be critical. The electricity sector
is ready to participate and can contribute
expertise, financing and consumer knowledge
to support informed decisions.
Initiatives such as the Aotearoa Circle Low
Carbon Energy Roadmap, of which Mercury is
part, show how Government, regulators and the
sector can collaborate on the energy transition
and secure the best possible outcomes.
The Government’s final Emissions Reduction
Plan, due in May, is another key milestone in
New Zealand’s decarbonisation journey. Mercury
welcomed the opportunity to contribute to
this important document and we are looking
forward to engaging on the finalised plan.
Mercury is also focused on progressing a whole-
of-energy-sector approach to decarbonisation.
This includes working on a collective
commitment to the Government to support
New Zealand’s emission reduction goals.
Value for customers
The acquisition of Trustpower’s retail business
will accelerate Mercury’s retail strategy, which
is centred on the right product mix and value
for customers. We know customers value the
convenience and ease of bundled products and
ZERO
HIGH SEVERITY
HEALTH AND
SAFETY INCIDENTS
NET PROMOTER
SCORE
2
12.0
o
OF STAY-IN-
BUSINESS CAPEX
$20M
p
we see Trustpower’s deep expertise in this area
adding material value to Mercury’s customers.
The acquisition also significantly grows our
retail book, and the increased scale allows us to
make meaningful investment in our underlying
IT systems to drive greater innovation.
The High Court’s approval of the Tauranga
Energy Consumer Trust restructure in
December was a significant milestone to
celebrate, and an exciting step towards bringing
these two complementary businesses together.
We anticipate remaining conditions will be
satisfied and the transaction will complete in
the last quarter of FY22. A further update will
be provided in our full year results.
Our team continues to look at other
opportunities to deepen our connection to
customers beyond energy. We have now
completed an initial pilot of a broadband
product in partnership with NOW NZ, and plan
to launch to Mercury’s customer base later in
the year.
Mercury is focused on ensuring all New
Zealanders have access to affordable and
reliable electricity. While we are proud of the
progress made on customer care, there is
much more that can be done to improve
how we engage with customers experiencing
hardship. Hardship is a complex issue requiring
a multi-faceted approach. Continuing to build
collaborative relationships with community,
social and government agencies is fundamental
to our success.
2
Index ranging from -100 to 100 measuring willingness of customers within target
segment to recommend Mercury (three-month rolling average).
A THANK YOU
The challenges we are facing are
unprecedented, but Mercury is well placed to
thrive. On behalf of the Board and Executive
Management Team, we recognise and thank
the talented team of people who underpin
Mercury’s results and the continued growth of
our business.
We also thank the many groups and individuals
we partner with across the business. A special
mention goes to the Starship Foundation – we
are currently celebrating 20 years together and
a year of record donations from our customers.
We look forward to Mercury’s continued path of
thriving in the second half of the year.
Ngā mihi nui ki a koutou katoa.
VINCE HAWKSWORTH // CHIEF EXECUTIVE
PRUE FLACKS // CHAIR

6
LET’S GET
INTO THE
NUMBERS.
OUR FINANCIALS.
MERCURY INTERIM REPORT 20226

MERCURY INTERIM REPORT 2022 7
Assurance Standards Board, and we have
fulfilled our other ethical responsibilities in
accordance with these requirements.
Ernst & Young carries out agreed upon
procedures and other limited assurance
reporting engagements and provided
tax related services in the United States
of America to the Group, all of which are
compatible with independence requirements.
Partners and employees of our firm may
deal with the Group on normal terms within
the ordinary course of trading activities of
the business of the Group. We have no other
relationship with, or interest in, the Group.
DIRECTORS' RESPONSIBILITY FOR THE
CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
The Directors are responsible, on behalf
of the entity, for the preparation and fair
presentation of the consolidated interim
financial statements in accordance with New
Zealand Equivalent to International Accounting
Standard 34:
Interim Financial Reporting
and International Accounting Standard 34:
Interim Financial Reporting, and for such
internal control as the Directors determine
is necessary to enable the preparation and
fair presentation of the consolidated interim
financial statements that are free from
material misstatement, whether due to
fraud or error.
TO THE SHAREHOLDERS OF
MERCURY NZ LIMITED
The Auditor-General is the auditor of
Mercury NZ Limited (the “Company”). The
Auditor-General has appointed me, Lloyd
Bunyan, using the staff and resources of
Ernst & Young, to carry out the review of the
consolidated interim financial statements
of the Group (comprising the Company, its
subsidiaries and other controlled entities) on
his behalf.
CONCLUSION
We have reviewed the consolidated interim
financial statements of the Group on pages
8 to 18 which comprise the consolidated
statement of financial position as at 31
December 2021, and the consolidated
statement of comprehensive income,
consolidated statement of changes in equity
and consolidated statement of cash flows for
the six month period ended on that date, and
notes to the consolidated interim financial
statements including a summary of
significant accounting policies and other
explanatory information.
Based on our review, nothing has come to our
attention that causes us to believe that the
accompanying consolidated interim financial
statements on pages 8 to 18 of the Group do
not present fairly, in all material respects, the
consolidated financial position of the Group
as at 31 December 2021, and its consolidated
financial performance and its consolidated
INDEPENDENT AUDITOR’S REVIEW REPORT.
cash flows for the six month period ended on
that date, in accordance with New Zealand
Equivalent to International Accounting
Standard 34: Interim Financial Reporting and
International Accounting Standard 34: Interim
Financial Reporting.
This report is made solely to the Company's
shareholders, as a body. Our review has
been undertaken so that we might state to
the Company's shareholders those matters
we are required to state to them in a review
report and for no other purpose. To the fullest
extent permitted by law, we do not accept or
assume responsibility to anyone other than the
Company and the Company's shareholders
as a body, for our review procedures, for this
report, or for the conclusion we have formed.
BASIS FOR CONCLUSION
We conducted our review in accordance with
NZ SRE 2410 (Revised)
Review of Financial
Statements Performed by the Independent
Auditor of the Entity. Our responsibilities
are further described in the Auditor’s
Responsibilities for the Review of the Financial
Statements section of our report.
We are independent of the Group in
accordance with the Auditor-General’s
Auditing Standards, which incorporate
Professional and Ethical Standard 1
International Code of Ethics for Assurance
Practitioners (including International
Independence Standards) (New Zealand)
issued by the New Zealand Auditing and
AUDITOR’S RESPONSIBILITIES FOR THE
REVIEW OF THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on
the consolidated interim financial statements
based on our review. NZ SRE 2410 (Revised)
requires us to conclude whether anything
has come to our attention that causes us to
believe that the consolidated interim financial
statements, taken as a whole, are not prepared
in all material respects, in accordance with New
Zealand Equivalent to International Accounting
Standard 34: Interim Financial Reporting and
International Accounting Standard 34: Interim
Financial Reporting.
A review of interim financial statements in
accordance with NZ SRE 2410 (Revised) is a
limited assurance engagement. We perform
procedures, consisting of making enquiries,
primarily of persons responsible for financial
and accounting matters, and applying
analytical and other review procedures.
The procedures performed in a review are
substantially less than those performed
in an audit conducted in accordance with
LLOYD BUNYAN
ERNST & YOUNG
ON BEHALF OF THE AUDITOR-GENERAL
AUCKLAND, NEW ZEALAND
22 FEBRUARY 2022
International Standards on Auditing (New
Zealand) and consequently do not enable us
to obtain assurance that we would become
aware of all significant matters that might be
identified in an audit. Accordingly, we do not
express an audit opinion on those consolidated
interim financial statements.

MERCURY INTERIM REPORT 2022 8
CONSOLIDATED INCOME STATEMENT.
For the six months ended 31 December 2021
Note
Unaudited
6 Months
31 Dec 2021
$M
Restated
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Total revenue2
8739442,045
Total expenses 2
(631)(654)(1,582)
EBITDAF
1
242290463
Depreciation and amortisation
(138)(106)(221)
Change in the fair value of financial instruments
7(36)(47)
Gain/(loss) on disposal2
3654123
Net interest expense2
(26)(23)(45)
Profit before tax
450166173
Tax exp e nse
(23)(36)(32)
Profit for the period attributable to owners of the parent
427130141
Basic and diluted earnings per share (cents)
31.49.610.4
1. EBITDAF: Earnings before net interest expense, tax expense, depreciation, amortisation, change in the fair value of financial instruments, gain/
(loss) on disposal and impairments.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME.
For the six months ended 31 December 2021
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Profit for the period427130141
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Movement in asset revaluation reserve – – 924
Movement in cash flow hedge reserve transferred to balance sheet – (15) (15)
Share of movements in associates' and joint ventures’ reserves – (4)28
Tax ef fe c t–– (259)
Items that may be reclassified subsequently to profit or loss
Movement in cash flow hedge reserve90(42)(208)
Cash flow hedge reserve reclassified to profit or loss112––
Transfer of share of associate's reserves to profit / loss upon disposal of
investment in associate
(21)––
Share of movements in associates' and joint ventures' reserves7(2)–
Tax ef fe c t(57)1263
Other comprehensive income/(loss) for the period, net of taxation131(51)533
Total comprehensive income for the period attributable
to owners of the parent
55879674
The accompanying notes form an integral part of these financial statements.
FINANCIAL STATEMENTS.

MERCURY INTERIM REPORT 2022 9
CONSOLIDATED BALANCE SHEET.
As at 31 December 2021
Note
Unaudited
31 Dec 2021
$M
Restated
Unaudited
31 Dec 2020
$M

Audited
30 Jun 2021
$M
SHAREHOLDERS’ EQUITY
Issued capital 378 378 378
Treasury shares(100) (101)(100)
Reserves4,327 3,4073,908
Total shareholders’ equity4,605 3,6844,186
ASSETS

Current assets
Cash and cash equivalents4891163
Receivables250229318
Contract assets212
Inventories652324
Taxation receivable2––
Derivative financial instruments7386120
Investment in associate held for sale––248
Total current assets440 430 875

Non-current assets
Property, plant and equipment67,8135,9346,828
Intangible assets8169107
Investment and advances to associates and joint ventures79127686
Advances to joint operations565
Receivables333
Derivative financial instruments646174
Total non-current assets8,057 6,3497,103
Total assets 8,497 6,779 7,978
Note
Unaudited
31 Dec 2021
$M
Restated
Unaudited
31 Dec 2020
$M

Audited
30 Jun 2021
$M
LIABILITIES
Current liabilities
Payables and accruals175163318
Provisions–2–
Borrowings8487554471
Derivative financial instruments149166267
Taxation payable–291
Total current liabilities8119141,057

Non-current liabilities
Payables and accruals773
Provisions887286
Derivative financial instruments209150263
Borrowings81,1787941,020
Deferred tax1,5991,1581,363
Total non-current liabilities3,081 2,1812,735
Total liabilities3,892 3,095 3,792
Net assets 4,605 3,684 4,186
For and on behalf of the Board of Directors who authorised the issue of the Consolidated Interim Financial Statements on
22 February 2022.
The accompanying notes form an integral part of these financial statements.9
PRUE FLACKS // CHAIRJAMES MILLER // DIRECTOR

MERCURY INTERIM REPORT 2022 10
CONSOLIDATED CASH FLOW STATEMENT.
For the six months ended 31 December 2021
Note

Unaudited
6 Months
31 Dec 2021
$M
Restated
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers9519701,952
Payments to suppliers and employees(751)(720)(1,468)
Interest received––1
Interest paid(28)(26)(51)
Taxes paid(40)(65)(96)
Net cash provided by operating activities132159338
CASH FLOWS FROM INVESTING ACTIVITIES

Payments for acquisition of property, plant and equipment(70)(177)(254)
Payments for the acquisition of intangibles(6)(13)(54)
Distributions received from and advances repaid to associates
and joint ventures 75661
Proceeds from the disposal of investment in Tilt1603––
Payment for acquisition of Tilt New Zealand, net of cash acquired1(631)–(20)
Proceeds from receivables recognised from the
acquisition of subsidiary172––
Proceeds from the sale of Hudson Ranch–4441
(Lodgements)/return of prudential deposits(13)(34)(70)
Net cash used in investing activities(38)(124)(296)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans482300546
Repayment of loans(548)(193)(278)
Payment of lease liabilities(4)(2)(5)
Dividends paid4(139)(128)(221)
Net cash (used in)/received in financing activities(209)(23)42
Net increase/(decrease) in cash and cash equivalents held(115)1284
Cash and cash equivalents at the beginning of the period1637979
Cash and cash equivalents at the end of the period4891163
Cash balance comprises:
Cash balance at the end of the period4891163
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.
For the six months ended 31 December 2021
Issued
capital
$M
Retained
earnings
$M
Asset
revaluation
reserve
$M
Cash flow
hedge
reserve
$M
Other
reserves
$M
Total
equity
$M
Restated Balance as at 1 July 2020
378 2863,281(122)(90)3,733
Fair value revaluation of generation assets,
net of taxation
– 8 (8) – – –
Movement in cash flow hedge reserve,
net of taxation
– – –(45)–(45)
Share of movements in associates' and joint
ventures' reserves
–––2(8)(6)
Other comprehensive income/(loss)
– 8(8)(43)(8)(51)
Net profit for the period
– 130 – – – 130
Total comprehensive income/(loss) – 138(8)(43)(8)79
Dividend
– (128) – – – (128)
Restated Balance as at 31 December 2020
378 2963,273(165)(98)3,684
Restated Balance as at 1 January 2021
378 296 3,273 (165) (98) 3,684
Movement in asset revaluation reserve,
net of taxation
– – 666 – – 666
Movement in cash flow hedge reserve,
net of taxation
– – – (116) – (116)
Share of movements in associates'
and joint ventures' reserves
– – 2013134
Other comprehensive income/(loss)
– – 686(103)1584
Net profit for the period
– 11 – – – 11
Total comprehensive income
– 11 686(103)1595
Dividend
– (93) – – – (93)
Balance as at 30 June 2021
378 214 3,959 (268) (97) 4,186
Balance as at 1 July 2021
378 214 3,959 (268) (97) 4,186
Recycling of share of associate's reserves to
retained earnings upon disposal
– 22(21) – (1) –
Transfer of share of associate's reserves to profit
or loss upon disposal
– – – (20) (1) (21)
Movement in cash flow hedge reserve,
net of taxation
– – – 145– 145
Share of movements in associates' and joint
ventures' reserves
– – – 7– 7
Other comprehensive income/(loss)
– 22 (21) 132 (2) 131
Net profit for the period
– 427 – – – 427
Total comprehensive income/(loss) – 449 (21) 132 (2)558
Dividend – (139) – – – (139)
Balance as at 31 December 2021 378 524 3,938 (136) (99) 4,605

The accompanying notes form an integral part of these financial statements.

MERCURY INTERIM REPORT 2022 11
The effect of SaaS arrangements in the comparative financial information are summarised in the table below:
Balance as at
1 July 2020
$M
Adjustments
$M
Restated
balance as at
1 July 2020
$M
Unaudited
6 months
ended
31 December
2020
$M
Adjustments
$M
Restated
unaudited
6 months
ended 31
December
2020
$M
Consolidated Income Statement
Total revenue944 – 944
Total expenses(650) (4) (654)
EBITDAF294 (4) 290
Depreciation and amortisation(110) 4 (106)
Change in the fair value of financial
instruments
(36)–(36)
Gain on sale/impairments41–41
Net interest expense(23)–(23)
Profit before tax166–166
Tax exp e nse(36)–(36)
Profit for the year attributable to
owners of the parent130–130
Consolidated Balance Sheet
Intangible assets78(8)7077(8)69
Deferred tax liabilities(1,202)2(1,200)(1,160)2(1,158)
Retained earnings(292)6(286)(302)6(296)
Disposal of Investment in Tilt Renewables Limited ("Tilt") and Acquisition of Tilt New Zealand assets
In the Group's annual financial statements for the year ended 30 June 2021, the Group had classified its 19.9% investment in
Tilt as held-for-sale. On 3 August 2021, the disposal was completed and the Group realised a net gain on sale of $367 million,
made up of $603 million from the sale of 75 million shares at $8.035 per share, less the carrying value of the investment of
$248 million, plus reclassified accumulated other comprehensive income attributable to Tilt of $21 million. The net gain on sale is
disclosed in the Consolidated Income Statement as Gain/(loss) on disposal.
On 3 August 2021, the Group also acquired 100% of the New Zealand operations of Tilt, including the New Zealand subsidiaries
Tararua Wind Power Limited, Waverly Wind Farm (NZ) Holding Limited, Waverly Wind Farm Limited, Tilt Renewables Insurance
Limited and all contracts and rights held in Tilt that relate to the New Zealand business, for a consideration of $634 million. This
includes Tilt's Tararua, Mahinerangi and Waipipi wind farms with an average annual generation of approximately 1,100 GWh,
associated power purchase and asset management agreements, wind development options in New Zealand and debt relating
to the Waipipi wind farm. Transaction costs of $9 million were incurred. The net gain is disclosed in the Consolidated Income
Statement as Gain/(loss) on disposal.
The Group has completed its provisional purchase price allocation in accordance with the requirements of NZ IFRS 3
Business
Combinations.
The fair value allocated to the assets and liabilities classes upon acquisition are disclosed below:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2021
NOTE 1. ACCOUNTING POLICIES
(1) REPORTING ENTITY
Mercury NZ Limited (“the Company”) is incorporated in New Zealand, registered under the Companies Act 1993, an FMC
reporting entity under the Financial Markets Conduct Act 2013, and is listed on the NZX Main Board and on the ASX, with foreign
exempt listed status.
The consolidated interim financial statements (“Group financial statements”) are for Mercury NZ Limited Group (“the Group”).
The Group financial statements comprise the Company and its subsidiaries, including its investments in associates and interests
in joint arrangements.
The majority shareholder of Mercury NZ Limited is Her Majesty the Queen in Right of New Zealand (“the Government”), providing
it with significant potential influence over the Group. The liabilities of the Group are not guaranteed in any way by the Government
or by any other shareholder.
(2) BASIS OF PREPARATION
The Group financial statements have been prepared in accordance with the New Zealand equivalent to International Accounting
Standard 34
Interim Financial Reporting ("NZ IAS 34"). In complying with NZ IAS 34, these statements comply with International
Accounting Standard 34
Interim Financial Reporting.
These Group financial statements, including the accounting policies adopted, do not include all the information and disclosures
required in the annual financial statements. Beyond those disclosed below, the Group financial statements have been prepared
using the same accounting policies as, and should be read in conjunction with, the Group's annual financial statements for the
year ended 30 June 2021.
The preparation of financial statements requires judgements and estimates that impact the application of policies and the
reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
COVID-19 has not had a material impact on the operations or financial performance of the Group.
Trading in Carbon Units
In the current reporting period, Management began trading in carbon units. This has led to the adoption of a new accounting
policy in relation to the treatment of carbon units. For carbon units held as at 30 June 2021, Management identified 685,000
carbon units (or $26.4 million) as trading units, and reclassified them from Intangible Assets to Inventories on 1 July 2021.
The accounting policy relating to carbon units that remain in Intangible Assets is consistent to prior reporting periods. Carbon
units classified as Inventories are initially recognised at cost, with any fair value movement at the end of each reporting period
recognised in profit or loss.
Software-as-a-Service ("SaaS") Arrangements
As disclosed in the Group's annual financial statements for the year ended 30 June 2021, the Group changed its accounting
policy on intangible software in the previous reporting period following an agenda decision for the configuration and
customisation costs incurred relating to a SaaS arrangement published by the International Financial Reporting Standards
("IFRS") Interpretations Committee. The Group applied the new accounting policy retrospectively in the previous annual financial
statements. During the current period, the Group restated the comparatives for the six months ended 31 December 2020.

MERCURY INTERIM REPORT 2022 12
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2021
Other Segments
Represents corporate support services which are not directly attributable to the generation/wholesale or retail segments.
Inter-segment
Transactions between segments represent transfer charges by generation/wholesale to retail for the purchase of electricity.
SEGMENT RESULTS
Restated six months ended 31 December 2020
(Unaudited)
Generation/
Wholesale
$M
Retail
$M
Other
Segments
$M
Inter–
segment
$M
Total
$M
Sales - electricity generation 426 – – – 426
Sales to customers, net of hedging 275 372 – (151) 496
Earnings of associates 8 – – – 8
Other revenue 10 4 – – 14
Total revenue 719 376 – (151) 944
Energy costs (332) (154) – 151 (335)
Line charges (40) (144) – – (184)
Other direct cost of sales, excluding
third party metering
(14) (5) – – (19)
Direct costs of other revenue – (2) – – (2)
Metering costs (2) (21) – – (23)
Employee compensation and benefits (17) (15) (7) – (39)
Maintenance expenses (13) (3) – – (16)
Other expenses (18) (15) (3) – (36)
Allocation of corporate overheads (5) (5) 10 – –
Total expenses (441) (364) – 151 (654)
Segment EBITDAF27812 – – 290
Interest expense (7) – (19) – (26)
Lease interest expense – – (2) – (2)
Interest income – – – – –
Interest capitalised to capital work in progress5 – – – 5
Net interest expense (2) – (21) – (23)
Gain on sale41–––41
Loss on disposal–––––
Gain/(loss) on disposal41–––41
Acquisition consideration - by way of cash ($M)634
Fair value allocated
as at 3 August 2021
($M)
Property, plant and equipment (Generation assets)1,032
Derivative financial instruments(43)
Intangible assets1
Right-of-use assets16
Lease liabilities(16)
Deferred tax liabilities(192)
Receivables73
Payables and accruals(1)
Net borrowings (net of cash and cash equivalents and borrowings)(236)
Net assets acquired634
The Group did not recognise any goodwill or bargain purchase from the transaction. Subsequent to the acquisition, the Group
repaid the debt relating to the Waipipi wind farm. From the acquisition date to the end of the reporting period, the newly acquired
entities generated revenue of $30 million, derivatives gain of $5 million, operating expenses of $8 million, an EBITDAF of $27
million, and a profit before tax of $4 million.
NOTE 2. SEGMENT REPORTING
IDENTIFICATION OF REPORTABLE SEGMENTS
The operating segments are identified by management based on the nature of the products and services provided. Discrete
financial information about each of these operating segments is reported to the Chief Executive, being the chief operating
decision-maker, on a monthly basis, who assesses the performance of the operating segments on a measure of EBITDAF.
Segment EBITDAF represents earnings before net interest expense, tax expense, depreciation and amortisation, change in
the fair value of financial instruments, gain on sale and impairments by each segment inclusive of an allocation of central
operating revenue and costs. Operating segments are aggregated into reportable segments only if they share similar economic
characteristics.
TYPES OF PRODUCTS AND SERVICES
Generation/Wholesale
The generation/wholesale market segment encompasses activity associated with electricity production, electricity trading,
generation development activities and the Group's share of associates earnings. It also includes revenue from the sale of
electricity to both commercial & industrial customers and the retail segment.
Retail
The retail segment encompasses activity associated with sale of energy, and related services and products, to mass market
customers in New Zealand.
NOTE 1. ACCOUNTING POLICIES (CONTINUED)

MERCURY INTERIM REPORT 2022 13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2021
Six months ended 31 December 2021
(Unaudited)
Generation/
Wholesale
$M
Retail
$M
Other
Segments
$M
Inter–
segment
$M
Total
$M
Sales - electricity generation 378 – – – 378
Sales to customers, net of hedging 246 365 – (143) 468
Earnings of associates 2 (2) – – –
Other revenue 26 1 – – 27
Total revenue 652 364 – (143) 873
Energy costs (287) (149) – 143 (293)
Line charges (48) (142) – – (190)
Other direct cost of sales, excluding
third party metering
(16) (4) – – (20)
Direct costs of other revenue – – – – –
Metering costs (2) (20) – – (22)
Employee compensation and benefits (20) (15) (8) – (43)
Maintenance expenses (20) (3) – – (23)
Other expenses (19) (22) 1 – (40)
Allocation of corporate overheads (4) (3) 7 – –
Total expenses (416) (358) – 143 (631)
Segment EBITDAF2366 – – 242
Interest expense (9) – (22) – (31)
Lease interest expense – – (1) – (1)
Interest income – – – – –
Interest capitalised to capital work in progress6 – – – 6
Net interest expense (3) – (23) – (26)
Gain on sale367– – – 367
Loss on disposal(2)– – – (2)
Gain/(loss) on disposal365– – – 365
Twelve months ended 30 June 2021
(Audited)
Generation/
Wholesale
$M
Retail
$M
Other
Segments
$M
Inter–
segment
$M
Total
$M
Sales - electricity generation 1,133 – – – 1,133
Sales to customers, net of hedging 454 696 – (277) 873
Earnings of associates 22 – – – 22
Other revenue 12 5 – – 17
Total revenue 1,621 701 – (277) 2,045
Energy costs (946) (284) – 277 (953)
Line charges (85) (270) – – (355)
Other direct cost of sales, excluding
third party metering
(34) (4) – – (38)
Direct costs of other revenue – (2) – – (2)
Metering costs (3) (41) – – (44)
Employee compensation and benefits (37) (31) (15) – (83)
Maintenance expenses (30) (6) – – (36)
Other expenses (33) (31) (7) – (71)
Allocation of corporate overheads (11) (11) 22 – –
Total expenses (1,179) (680) – 277 (1,582)
Segment EBITDAF44221 – – 463
Interest expense (15) – (38) – (53)
Lease interest expense – – (3) – (3)
Interest income – – – – –
Interest capitalised to capital work in progress11 – – – 11
Net interest expense (4) – (41) – (45)
Gain on sale 38–––38
Loss on disposal(15)–––(15)
Gain/(loss) on disposal23–––(23)
NOTE 2. SEGMENT REPORTING (CONTINUED)

MERCURY INTERIM REPORT 2022 14
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2021
NOTE 4. SHARE CAPITAL AND DISTRIBUTION
The share capital of the Company is represented by 1,400,012,517 ordinary shares (30 June 2021: 1,400,012,517) issued and fully
paid. These shares do not have a par value, have equal voting rights and share equally in dividends and any surplus on winding up.
Unaudited
31 Dec 2021
Number of
shares (M)
Unaudited
31 Dec 2021

$M
Unaudited
31 Dec 2020
Number of
shares (M)
Unaudited
31 Dec 2020

$M
Audited
30 Jun 2021
Number of
shares (M)
Audited
30 Jun 2021

$M
Treasury shares
Balance at the beginning
of the period 39 1003910139101
Acquisition/(disposal) of
treasury shares–––––(1)
Balance at the beginning
and end of the period391003910139100
Cents per share
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Dividends declared and paid
Final dividend for 20209.4–128128
Interim dividend for 20216.8 – – 93
Final dividend for 202110.2139 – –
139128221
NOTE 5. FINANCIAL INSTRUMENTS
The Group’s overall risk management programme focuses on the unpredictability of markets and seeks to proactively manage
these risks with the aim of protecting shareholder wealth. Exposure to price, credit, foreign exchange, liquidity and interest rate
risks arise in the normal course of the Group’s business. The Group's principal financial instruments comprise cash and cash
equivalents, trade receivables and accruals (not prepayments), advances, payables and accruals, borrowings and derivative
financial instruments. Further information on the identified risks can be found in note 13 of the Group's annual financial
statements for the year ended 30 June 2021.
Fair Values
The carrying amount of financial assets and liabilities recorded in the financial statements approximates their fair values as at
31 December 2021 except for: (i) the Fixed Rate Wholesale Bond, the Fixed Rate Wholesale Green bond, the Fixed Rate Retail
Green bonds and the US Private Placement, the fair values for which have been calculated at $26 million (30 June 2021: $27
million), $130 million (30 June 2021: $137 million), $376 million (30 June 2021: $393 million) and $118 million (30 June 2021:
NOTE 3. NON GAAP MEASURE – UNDERLYING EARNINGS
Underlying earnings after tax is presented to enable stakeholders to make an assessment and comparison of earnings after
removing one-off and/or infrequently occurring events (exceeding $10 million of profit before tax, which represents material
items), impairments, any change in the fair value of derivative financial instruments and gain/(loss) on disposal, all net of tax
expense. Changes in the fair value of financial instruments are excluded from underlying earnings in order to align their impact
when they mature with the underlying hedged items.
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
PROFIT FOR THE PERIOD427 130 141
Change in the fair value of financial instruments(7) 36 47
Fixed asset loss on disposal2–15
Close-out of electricity swaps65––
Amortisation of acquired swap value(15)––
Hudson Ranch sale–(44)(41)
Sale of share in Tilt Renewables Limited (367)––
Adjustments before tax expense(323)(8)21
Tax exp e nse(16)(7)(17)
Adjustments after tax expense(339)(15)4
Underlying earnings after tax89115145
Tax has been applied on all taxable adjustments at 28%.
On 10 August 2021, the Group completed a deal with Norske Skog to close out their electricity swap that was out of the money for
the Group. The Group recognised an impact before tax of $65 million. The deal also involved the Group novating electricity swaps
held by the customer with other third parties. The amortisation of the novated swaps for the six months ended 31 December 2021
was $15 million.

MERCURY INTERIM REPORT 2022 15
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2021
RECONCILIATION OF LEVEL 3
FAIR VALUE MOVEMENTS
Fair value through
other comprehensive income
Fair value through profit or loss
Unaudited
6 Months
31 Dec
2021
$M
Unaudited
6 Months
31 Dec
2020
$M
Audited
12 Months
30 Jun
2021
$M
Unaudited
6 Months
31 Dec
2021
$M
Unaudited
6 Months
31 Dec
2020
$M
Audited
12 Months
30 Jun
2021
$M
Opening balance (284) (55) (55)252626
New contracts (54) (8) (52)(7)(2)(4)
Matured contracts10 (3) 2588
Gains and losses
Through the income statement – ––(3)(9)(5)
Through other comprehensive income 149 (61) (179)–––
Closing balance(179)(127)(284)202325
Deferred ‘inception’ gains/(losses)
There is an assumption that when derivative contracts are entered into on an arm's length basis, fair value at inception would
be zero. The contract price of non exchange traded electricity derivative contracts are agreed on a bilateral basis, the pricing for
which may differ from the prevailing derived market price curve for a variety of reasons. In these circumstances an inception
adjustment is made to bring the initial fair value of the contract to zero at inception. This inception adjustment is amortised over
the life of the contract by adjusting the future price path used to determine the fair value of the derivatives by a constant amount
to return the initial fair value to zero.
The table below details the movements in inception value gains/(losses) included in the fair value of derivative financial assets
and liabilities:
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Opening deferred inception gains/(losses)27(7)(7)
Deferred inception gains/(losses) on new hedges(79)822
Deferred inception gains/(losses) realised during the period(3)–12
Closing inception gains/(losses)(55)127
$118 million) respectively; (ii) the Capital Bonds, the fair value for which has been calculated at $305 million (30 June 2021:
$307 million) and (iii) Australian Medium Term Note, the fair value for which has been calculated at $214 million (30 June 2021:
$ nil). Fair values are based on quoted market prices and inputs for each bond issue. Refer to Note 8 for carrying amounts of
borrowings.
Valuation techniques
The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:
• Level 1 - the fair value is calculated using quoted prices in active markets;
• Level 2 - the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices); and
• Level 3 - the fair value is estimated using inputs that are not based on observable market data.
As at 31 December 2021 all of the Group's financial instruments carried at fair value were categorised as level 2, except for
electricity price derivatives. Electricity price derivative assets of $33 million were categorised as level 1 (30 June 2021: $49
million) and $66 million were categorised as level 3 (30 June 2021: $111 million). Further information on the identified risks can
be found in note 13 of the Group's annual financial statements for the year ended 30 June 2021. Electricity price derivative
liabilities of $31 million were categorised as level 1 (30 June 2021: $54 million) and $225 million were categorised as level 3
(30 June 2021: $370 million).
Financial instruments that use a valuation technique with only observable market inputs, or unobservable inputs that are
not significant to the overall valuation, include interest rate derivatives and foreign exchange rate derivatives not traded on a
recognised exchange.
Financial instruments that use a valuation technique which includes non-market observable data include non-exchange
traded electricity contracts which are valued using a discounted cash flow methodology. A combination of ASX market prices
for the first three years and management's internal view of forward prices for the remainder of the contract's term are used.
Management's internal view of forward prices incorporates a minimum price of $41/MWh and a maximum price of $144/MWh
(30 June 2021: a minimum price of $89/MWh and a maximum price of $172/MWh) over the period in question (in real terms)
and is determined by a demand/supply based fundamental model which takes account of current hydrological conditions,
future inflows, an assessment of thermal fuel costs, anticipated demand and supply conditions and future committed
generation capacity.
Where the fair value of a derivative is calculated as the present value of the estimated future cash flows of the instrument
there are two key inputs being used; the forward price curve and the discount rate. Where the derivative is an option, then the
volatility of the forward price is another key variable. The selection of the inputs requires significant judgement, and therefore
there is a range of reasonably possible assumptions in respect of these inputs that could be used in estimating the fair values of
these derivatives. Maximum use is made of observable market data when selecting inputs and developing assumptions for the
valuation technique.
NOTE 5. FINANCIAL INSTRUMENTS (CONTINUED)

MERCURY INTERIM REPORT 2022 16
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2021
AssociatesJoint ventures
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Balance at the beginning
of the period773283289––
Additions during the period–211 – – 6
Share of earnings–816 – – 6
Share of movement in other
comprehensive income
7 (6)28 – – –
Distributions received during
the period
(2) (56) (58) – – (3)
Reclassification to held for sale––(248)–––
Balance at the end of the period8227677 9 – 9
NOTE 8. BORROWINGS

Borrowing
Currency
Denomination


Maturity


Coupon
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Bank facilitiesNZDVariousFloating 160 45–
Commercial paper programmeNZD< 3 monthsFloating 275 200 160
Wholesale / Credit wrapperNZDSept-2021Floating – 300300
USPP - US$30mUSDDec-20224.35% 39 39 39
Wholesale bondsNZDMar-20235.79% 26 26 26
USPP - US$45mUSDDec-20254.60% 59 59 59
Green retail bondsNZDSept-20262.16% 201 – 201
Green retail bondsNZDSept-20271.56%201201201
Australian Green bond -
AU$200m
AUDNov-20282.92% 208 – –
Green wholesale bondsNZDOct-20301.92% 146 100 146
Capital BondsNZDJul-20493.60% 302 302 302
Lease liabilitiesNZD 77 66 64
Deferred financing costs(6)(6) (6)
Fair value adjustments (23) 16 (1)
Carrying value of loans 1,665 1,3481,491
Current 487 554 471
Non-current1,1787941,020
1,665 1,3481,491
NOTE 6. PROPERTY, PLANT AND EQUIPMENT
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Opening net book value6,8285,8985,898
Additions in relation to the acquisition of Tilt New Zealand assets1,048––
Additions69131209
Disposals(3)–(15)
Net revaluation movement––938
Depreciation charge for the period(129)(95)(202)
Closing net book value7,8135,9346,828
NOTE 7. INVESTMENT AND ADVANCES TO ASSOCIATES AND JOINT ARRANGEMENTS
(JOINT VENTURES AND JOINT OPERATIONS)
Investments include:
Interest held
Name of entityPrincipal activityType
Unaudited
31 Dec
2021
Unaudited
31 Dec
2020
Audited
30 Jun
2021Country
TPC Holdings LimitedInvestment holdingAssociate25.00%25.00%25.00%New Zealand
Tilt Renewables Limited
Electricity generation
and developmentAssociate–19.92%19.90%New Zealand
NOW New Zealand LimitedBroadband ISPAssociate48.46%–48.46%New Zealand
RotokawaSteamfield operationJoint Operation64.80%64.80%64.80%New Zealand
Ngā Awa PurūaElectricity generationJoint Operation65.00%65.00%65.00%New Zealand
EnergySource LLCInvestment holdingJoint Venture20.86%20.86%20.86%United States
EnergySource Minerals LLCMineral extractionJoint Venture20.26%20.84%20.84%United States

MERCURY INTERIM REPORT 2022 17
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2021
Transaction value
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Associates
• Management fees and service agreements received51015
• Energy contract settlements received5726
• Service agreements paid1–1
Joint operations
• Management fees and service agreements received7722
• Energy contract settlements received11036
Energy contracts, management and other services are made on normal commercial terms.
An advance to TPC Holdings Limited of $4 million (2021: $4 million) is interest free and repayable on demand subject
to certain conditions being met.
The long-term advance to our Rotokawa Joint Venture partner of $5 million (2021: $6 million) carries a floating
interest rate. Repayments under the advance are linked to the level of receipts under the geothermal energy supply
agreement. There is no fixed repayment date, the agreement will terminate on payment of any outstanding balances.
No related party debts have been written off, forgiven, or any impairment charge booked.
Transaction value
Unaudited
6 Months
31 Dec 2021
$000
Unaudited
6 Months
31 Dec 2020
$000
Audited
12 Months
30 Jun 2021
$000
Key management personnel compensation
(paid and payable) comprised:
• Directors’ fees530493991
• Benefits for the Chief Executive and Senior Management:
Salary and other short-term benefits 3,1703,2416,233
Termination benefits – –353
Share-based payments281266712
3,9814,0008,289

At the Annual Shareholders' Meeting held on 23 September 2021, the shareholders approved an increase of annual
directors' fee.
The Group has $650 million of committed and unsecured bank loan facilities as at 31 December 2021 (30 June 2021:
$500 million). In July 2021, Mercury also executed a $440 million bank facility agreement to fund the acquisition of Trustpower's
retail business.
The Company has a $400 million Commercial Paper programme which is fully backed by committed and undrawn bank
facilities. Notes issued under the programme are short-term money market instruments, unsecured and unsubordinated and
targeted at professional investors. The programme is rated A2 by Standard & Poor’s.
Mercury's Wholesale/Credit wrapper of $300 million was repaid in September 2021.
Following the establishment of the Green Financing Framework in August 2020 and the issuance of $550 million of green bonds
in FY21, Mercury issued AU$200 million (NZ$207 million) of 7-year unsecured, unsubordinated fixed rate (2.918%) green bonds on
17 November 2021 . Mercury has tracked the $757 million of green bond proceeds in accordance with the Green
Financing Framework.
The Group has entered into a Master Trust Deed and Supplementary Trust Deeds for all its NZD denominated Senior Fixed Debt
with the New Zealand Guardian Trust Group Limited, acting as trustee for the holders. The Group has agreed, subject to certain
exceptions, not to create or permit to exist a security interest over or affecting its assets to secure indebtedness, and to maintain
certain financial covenants. There has been no breach of the terms of these deeds.
The Group has entered into a negative pledge deed in favour of its bank financiers in which the Group has agreed, subject to
certain exceptions, not to create or permit to exist a security interest over or affecting its assets to secure its indebtedness, and
to maintain certain financial ratios in relation to the Group. These undertakings and covenants also apply to the US Private
Placement terms and conditions. There has been no breach of the terms of this deed or the terms and conditions of the US
Private Placement.
The Group has entered into various lease contracts for the right to use land & buildings, motor vehicles and office equipment and
is also deemed to be a lessee of transmission equipment.
NOTE 9. RELATED PARTY TRANSACTIONS
Majority shareholder
The majority shareholder of Mercury NZ Limited is the Crown, providing it with significant potential influence over the Group. All
transactions with the Crown and other entities wholly or partly owned by the Crown are on normal commercial terms. Transactions
cover a variety of services including trading energy, postal, travel and tax.
Transactions with related parties
Mercury NZ Limited has investments in subsidiaries, associates and joint arrangements, all of which are considered
related parties.
As these are consolidated financial statements, transactions between related parties within the Group have been eliminated.
Consequently, only those transactions between entities which have some owners external to the Group have been reported below:
NOTE 8. BORROWINGS (CONTINUED)

MERCURY INTERIM REPORT 2022 18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
For the six months ended 31 December 2021
Other transactions with key management personnel
Key management personnel are those people with responsibility and authority for planning, directing and controlling the activities
of the Group. Key management personnel for the Group are considered to be the Directors and Senior Management.
Directors and employees of the Group deal with Mercury NZ Limited as electricity consumers on normal terms and conditions,
with staff discounts for employees, within the ordinary course of trading activities. A number of Directors also provide directorship
services to other third party entities. A number of these entities transacted with the Group on normal commercial terms during
the reporting period.
A number of key management personnel provide directorship services to subsidiaries and other third party entities as part
of their employment without receiving any additional remuneration, with exception to the Group's Chief Executive who was a
member of the Board of Directors of Tilt Renewables Limited and directly received renumeration for his directorship services until
Tilt Renewables Limited was no longer an associate of the Company and his directorship ceased. A number of these entities
transacted with the Group, in all circumstances on normal commercial terms during the reporting period.
The Group purchases directors and officers insurance for the benefit of key management personnel in relation to the services they
provide to the Group.
NOTE 10. COMMITMENTS AND CONTINGENCIES
Commitments
Unaudited
6 Months
31 Dec 2021
$M
Unaudited
6 Months
31 Dec 2020
$M
Audited
12 Months
30 Jun 2021
$M
Capital195299247
Capital commitments include purchases of both property, plant and equipment (PP&E) and intangibles. PP&E commitments
include contracts for construction of wind generation assets at Turitea and refurbishment of hydro generation assets at Karapiro.
Intangible commitments are contracts to purchase New Zealand emissions trading scheme (NZ ETS) units. In the event the NZ
ETS is terminated the existing forward purchase agreements, which cover the seven year period from the end of the reporting
period, will also terminate.
Contingencies
The Group holds land and has interests in fresh water and geothermal resources that are subject to claims that have been brought
against the Government.
The Pouakani Claims Trust No 2 and a group of kaumatua have filed a claim in the Māori Land Court seeking a declaration that
certain parts of the Waikato riverbed are Māori customary land, including the riverbed beneath the Whakamaru, Maraetai I and II
and Waipapa dams. The claim has been amended to include interests in the water flowing over the riverbed. Mercury holds the
fee simple or beneficial title to those parts of Waikato riverbed beneath the Whakamaru, Maraetai I and II and Waipapa dams
and has received advice that the applicants are unlikely to succeed with a claim to customary title in that land. Mercury is seeking
orders striking out the claim in relation to the parts of the riverbed to which Mercury holds fee simple or beneficial title, and water.
The applicants have also filed a related claim in the Waitangi Tribunal pursuant to the Treaty of Waitangi Act 1975, but have not
yet taken any further steps in relation to that claim.
The Group holds land at Maraetai, Waikato that is subject to a remedies hearing brought against the Government
in the Waitangi Tribunal. The remedies hearing relates to an application seeking binding recommendations for
the resumption of land at Pouakani, including the Group’s land at Maraetai. A Crown Treaty settlement has been
offered to Ngāti Kahungunu ki Wairarapa Tāmaki nui-ā-Rua Settlement Trust, which the Tribunal had indicated in
a preliminary finding may be an appropriate recipient for the land (although that preliminary finding was set aside
following a judicial review decision in the High Court, which remains subject to further appeal). The Crown and
Ngāti Kahungunu ki Wairarapa Tāmaki nui-ā-Rua Settlement Trust have signed a settlement deed addressing the
resumption claim. Legislation giving effect to the settlement deed has been introduced to Parliament, but has not
yet been enacted. It is not yet known whether that settlement deed will result in the Trust and other Maori groups
abandoning their claims to resumption of the land. The Group has received advice that a Tribunal decision on the
matter, should the matter be remitted to the Tribunal for reconsideration, is unlikely to impair the Group’s ability to
operate its hydro assets.
A separate claim by the New Zealand Māori Council relating to fresh water and geothermal resources was lodged in
2012 with the Waitangi Tribunal. The Tribunal concluded that Māori have residual (but as yet undefined) proprietary
rights in fresh water and geothermal resources and it will be for the Government to determine how any such rights
and interests may best be addressed. The Tribunal has recently indicated its intention to progress to stage three of
that inquiry, albeit the scope of stage three is still being considered in light of the Government’s draft Natural and
Built Environments Bill. The impact of this claim on the Group’s operations is unknown at this time.
From time to time the Group will issue letters of credit and guarantees to various suppliers in the normal course
of business. However, there is no expectation that any outflow of resource relating to these letters of credit or
guarantees will be required as a consequence.
The Group has no other material contingent assets or liabilities.
NOTE 11. SUBSEQUENT EVENTS
The Board of Directors has approved an interim dividend of 8.0 cents per share to be paid on 1 April 2022 and has
announced a dividend reinvestment plan.
Conditional Acquisition of Trustpower Limited's Retail Business ("Trustpower")
On 21 June 2021, the Group announced that it had entered into binding agreements with Trustpower to acquire
Trustpower’s retail business. The transaction remains conditional on several matters, including completion of the
proposed restructure of Tauranga Energy Consumer Trust ("TECT"), but is expected to be completed in the second
half of this financial year.
On 19 July 2021, the Group executed a $440 million term loan with MUFG Bank, Ltd to fund the acquisition.
Drawdown of the term loan facility is contingent on completion of the acquisition.
Insurance claim in relation to the Kawerau geothermal power station outage
Following the unplanned outage at the Group's Kawerau geothermal power station, the Group submitted an
insurance claim request for business interruption and material damage. On 14 January 2022, the Group received
confirmation via the loss adjuster that all insurers have accepted cover. The Group continues to work with the insurers
and loss adjuster to confirm the insurance due.
There are no other material events subsequent to balance date that would affect the fair presentation of these
financial statements.

MERCURY INTERIM REPORT 2022 19
DIRECTORY.INFORMATION FOR
SHAREHOLDERS.
Shareholder enquiries
You can view your investment portfolio,
change your address, supply your email,
update your details or payment instructions
online: www.investorcentre.com/nz. You will
need your CSN and FIN numbers to access
this service.
Enquiries may be addressed to the Share
Registrar (see Directory for contact details).
Investor information
Our website at mercury.co.nz is an excellent
source of information about what’s happening
within the company.
Our Investor Centre allows you to view all regular
investor communications, information on our
latest operating and financial results, dividend
payments, news and share price history.
Electronic shareholder communication
It is quick and easy to make the change to
receiving your reports electronically. This can
be done either:
Online at www.investorcentre.com/nz by using
your CSN and FIN numbers (when you log
in for the first time). Select 'My Profile' and
'Communication Preferences' to update your
details, or;
By contacting Computershare Investor Services
Limited (see Directory for contact details).
Board of Directors
Prue Flacks, Chair
Dennis Barnes
Hannah Hamling
Andy Lark
James Miller
Scott St John
Patrick Strange
Mike Taitoko
Executive Team
Vince Hawksworth,
Chief Executive
Lucie Drummond,
General Manager Sustainability
Phil Gibson,
General Manager Portfolio
Stewart Hamilton,
General Manager Generation
Julia Jack,
Chief Marketing Officer
William Meek,
Chief Financial Officer
Craig Neustroski,
General Manager Customer
Marlene Strawson,
General Manager People & Performance
Company Secretary
Howard Thomas,
General Counsel and Company Secretary
Investor Relations
& Sustainability Enquiries
Tim Thompson,
Head of Treasury & Investor Relations
Phone: +64 27 517 3470
Email: investor@mercury.co.nz
Registered Office in New Zealand
Mercury NZ Limited
33 Broadway, Newmarket, Auckland 1023
P O Box 90399
Auckland 1142
New Zealand
Registered Office in Australia
c/– TMF Corporate Services
(Australia) Pty Limited
Suite 1, Level 11, 66 Goulburn Street,
Sydney NSW 2000
Phone: +61 2 8988 5800
Legal Advisors
Chapman Tripp
Level 34
PwC Tower at Commercial Bay
15 Customs Street West
Auckland 1010
PO Box 2206, Auckland 1140
Phone: +64 9 357 9000
Credit Rating (re-affirmed November 2021)
Long term: BBB+
Outlook: Stable
Bankers
ANZ Bank
ASB Bank
Bank of China
Bank of New Zealand
China Construction Bank
Commonwealth Bank of Australia
Industrial and Commercial Bank of China
MUFG Bank
Mizuho Bank
Westpac
Share Registrar – New Zealand
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna,
Auckland 0622
Private Bag 92119
Victoria Street West
Auckland 1142, New Zealand
Phone: +64 9 488 8777
Email: enquiry@computershare.co.nz
Web: www.investorcentre.com/nz
Share Registrar – Australia
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street, Abbotsford,
VIC 3067, GPO Box 3329, Melbourne,
VIC 3001, Australia
Phone: 1 800 501 366 (within Australia)
Phone: +61 3 9415 4083 (outside Australia)
Email: enquiry@computershare.co.nz

---

Distribution Notice







Section 1: Issuer information
Name of issuer Mercury NZ Limited
Financial product name/description Mercury NZ Limited ordinary shares
NZX ticker code MCY
ISIN (If unknown, check on NZX
website)
NZMRPE0001S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date 17/03/2022
Ex-Date (one business day before the
Record Date)
16/03/2022
Payment date (and allotment date for
DRP)
01/04/2022
Total monies associated with the
distribution
$108,915,263.52
Source of distribution (for example,
retained earnings)
Income available for distribution
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.11111111
Gross taxable amount $0.11111111
Total cash distribution $0.08000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01411765
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.03111111

Resident Withholding Tax per
financial product
$0.00555556

Section 4: Distribution re-investment plan
DRP % discount (if any)
2.5%

Start date and end date for
determining market price for DRP
21/03/2022 25/03/2022
Date strike price to be announced (if
not available at this time)
28/03/2022
Specify source of financial products
to be issued under DRP programme
(new issue or to be bought on
market)
Treasury stock
DRP strike price per financial product TBC
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
18/03/2022
Section 5: Authority for this announcement
Name of person

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

22/02/2022