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INVESTOR DAY 10 JUNE 2025 STEW HAMILTON CHIEF EXECUTIVE BETTER BUILDING BRIGHTER TODAY TOMORROW TOGETHER For personal use only
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DISCLAIMER JUNE 2025 MERCURY INVESTOR DAY REPORT 2 This presentation has been prepared by Mercury NZ Limited and its group of companies (“Company”) for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. Information in this presentation has been prepared by the Company with due care and attention. However, neither the Company nor any of its directors, employees, shareholders nor any other person gives any warranties or representations (express or implied) as to the accuracy or completeness of this information. To the maximum extent permitted by law, none of the Company, its directors, employees, shareholders or any other person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it. This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates and assumptions and are subject to a number of risks, and uncertainties, including material adverse events, significant one-off expenses and other unforeseeable circumstances, such as, without limitation, hydrological conditions. They do not constitute guidance of any kind. There is no assurance that results contemplated in any of these projections and forward-looking statements will be realised, nor is there any assurance that the expectations, estimates and assumptions underpinning those projections or forward-looking statements are reasonable. Actual results may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release or to provide you with further information about the Company. The information in this presentation is of a general nature and does not constitute guidance, financial product advice, investment advice or any recommendation. The presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security. Nothing in this presentation constitutes legal, financial, tax or other advice. For personal use only
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NAU MAI, HAERE MAI WELCOME For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 4 AGENDA TOPIC Welcome and strategy introduction Advantaged portfolio positioned for growth Scale and efficiency unlock value PRESENTERS Stew Hamilton Tim Thompson Craig Neustroski, Fiona Smith, Moa Haar-Simmonds Accelerating generation development Generation delivering value Better Today, Building Tomorrow, Brighter Together Matt Tolcher, Ben Pezaro Kevin Taylor, Rob Rankin, Emily Collis Richard Hopkins, Stew Hamilton Ng Tamariki OEC5 project and site visit Aimee McGregor Lunch Afternoon Tea For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 5 A CAPABLE AND MULTI-DISCIPLINED EXECUTIVE TEAM STEW HAMILTON CHIEF EXECUTIVE " Appointed CEO in 2024; joined Mercury in 2021 as EGM, Generation. " Former CEO of NZ Aluminium Smelters; 25+ years in industrial energy across multiple continents. " Chemical Engineer with an MBA; experienced in leading large, complex organisations. CRAIG NEUSTROSKI CHIEF OPERATING OFFICER – CUSTOMER " Heads customer service and commercial strategy for the customer business. " Joined in 2021; formerly held senior roles in the energy sector at Trustpower. " Brings over two decades of leadership experience in energy retail. TIM THOMPSON EXECUTIVE GM – WHOLESALE " Manages Mercury’s electricity portfolio and wholesale market activity. " Joined in 2005; past roles include GM Wholesale and Head of Treasury & Investor Relations. " Deep experience in electricity trading and large customer sales. LUCIE DRUMMOND CHIEF SUSTAINABILITY OFFICER " Leads strategy, ESG integration, communications, iwi/community engagement, and regulatory affairs. " Joined Mercury in 2012; previously practised environmental and energy law in NZ and the UK. " Focused on unlocking new energy opportunities and future-focused innovation. FIONA SMITH CHIEF PEOPLE EXPERIENCE AND TECHNOLOGY OFFICER " Aligns people and technology strategies to support Mercury’s future of work and tech adoption. " Joined via Trustpower acquisition in 2022, where she spent 26 years in senior roles. " Extensive electricity/telecoms knowledge and customer-centric experience. MATT TOLCHER EXECUTIVE GM – GENERATION DEVELOPMENT " Leads planning and delivery of new renewable generation projects. " Joined in 2022; 20 years of experience in major infrastructure across NZ and the US. " Skilled in complex utility development and engineering. RICHARD HOPKINS CHIEF FINANCIAL OFFICER " Joined in 2025 to lead financial strategy and operations. " 25+ years experience, last 12 years as CFO of Zespri and Ballance Agri-Nutrients. " 10+ years in European Power & Utilities Investment Banking. " Expert in corporate finance, M&A, transformation, and strategic development. KEVIN TAYLOR CHIEF OPERATING OFFICER – GENERATION " Joined in 2025 to lead safe operation and maintenance of generation assets. " 30+ years in industry with a focus on safety, risk, and performance (ex-Rio Tinto). " Proven leader in building high-performing, safety-focused teams. CATHERINE THOMPSON CHIEF SUSTAINABILITY OFFICER – INCOMING • Will join Mercury in July 2025. • 30 years experience in energy and legal sectors. • Executive roles in Contact Energy and Manawa Energy. For personal use only
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A DIVERSIFIED PORTFOLIO OF RENEWABLE ASSETS JUNE 2025 MERCURY INVESTOR DAY REPORT 6 OUR BUSINESS Electricity generator and multi-product retailer across electricity, gas and telco in NZ " 19% Generation market share4 " 25% Retail electricity market share2 " 206k Broadband and mobile connections2 " 209k customers with two or more products2 OUR PURPOSE Tiakina te anamata, m te tkhono i ng tngata me ng whi o te inamata. Taking care of tomorrow, connecting people and place today. RENEWABLE GENERATION1 ~8.8 TWh Renewables in-construction $1b SINCE LISTING3 10.3%TSR CUSTOMER CONNECTIONS2 ~891k OF ORDINARY DIVIDEND GROWTH TO FY24 16th year FY24 EBITDAF $877m 1 Annual mean renewable generation 2 As at 31 March 2025 3 Annualised Total Shareholder Return from 10 May 2013 to 31 May 2025 4 For the 12 months to 31 March 2025 For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 7 A SECTOR WITH CHALLENGE AND OPPORTUNITY A SECTOR WITH CHALLENGE AND OPPORTUNITY Weare well positioned to mitigate and manage sector risks and pursue key opportunities Declining trust as we navigate the transition Customer affordability, connectivity and electrification Delivering more renewable projects at the right rate and economics Resilience in a more renewable system Deliver performance through technology and talent Attract talent and excite them with our purpose, culture and rewards For personal use only
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THE ENERGY TRANSITION Historic scale, at pace — delivering infrastructure while ensuring energy security SUPPLY-DEMAND BALANCE — ANNUAL CONSUMPTION 2003 - 2024 SUPPLY-DEMAND BALANCE — FIRM WINTER CAPACITY 2003 - 2024 50% increase in installed capacity through to 2030 $10.2bn investment in new generation through to 2030 2.2TWh currently under construction – 5% of 2023 supply 45% gas produced in 2024 as compared to projected in 2022 JUNE 2025 MERCURY INVESTOR DAY REPORT 8 Sources: BCG, Future is electric, 2022; Concept, various analyses of current electricity and gas market dynamics, May 2025 For personal use only
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NAVIGATING A HIGHER-COST ENVIRONMENT AMID A COST OF LIVING SQUEEZE JUNE 2025 MERCURY INVESTOR DAY REPORT 9 WORLD INFLATION RATES1 NEW ZEALAND INFLATION RATE RESIDENTIAL PRICE 1 IMF, World Economic Outlook, April 2025 March 2025 inflation increase – the first since 2022 For personal use only
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NEW ZEALAND NOT IMMUNE FROM GLOBAL TRUST EROSION JUNE 2025 MERCURY INVESTOR DAY REPORT 10 The Trust Index in New Zealand has been declining incrementally since 2022 and for the first time NZ is in the distrust category “This year, the Trust Barometer showed New Zealanders are feeling overlooked by those in power and disillusioned as a result. While business is still our most trusted institution, its trajectory is not going in the right direction.” Adelle Keely, Acumen Chief Executive Business remains the most trusted institution in New Zealand, and the only institution seen as both competent and ethical… ... it was also the only institution that had a statistically significant decline of 6 percentage points since 2024. Source: https://acumennz.com/acumen-edelman-trust-barometer/acumen-edelman-trust-barometer-2025/ https://eta-publications.lbl.gov/sites/default/files/w3s_developer_survey_summary_-_011724.pdf SOUNDBITES In the USA, community opposition is one of the top 3 drivers of renewable project delay or cancellation – impacting at a similar level to planning restrictions and grid interconnection. For personal use only
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CAPABILITY AND STRENGTH FORM THE BASIS FOR VALUE DELIVERY Diverse portfolio – type and location to protect and maximise value Strong connection with critical suppliers of wind, geo and hydro tech Best pipeline of wind prospects, exciting geothermal options Leader in vulnerable customer support Balance sheet headroom for disciplined investment Large retail book with bundling capability Solution-focused approach to sector transition Team with proven execution in hydro, geothermal and wind development Decades of deep connection and partnership with iwi River peaking that matches demand JUNE 2025 MERCURY INVESTOR DAY REPORT 11 For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 12 Strategic Framework ASPIRATIONS FY35 PRIORITIES FY30 STRATEGIC OBJECTIVES OUR PURPOSE Tiakina te anamata, m te tkhono i ng tngata me ng whi o te inamata. Taking care of tomorrow, connecting people and place today. Deliver more reliable and renewable energy Achieve what matters most through financial growth Accelerate the shift to a low-carbon future Perform with an adaptive culture enabled by technology Create success with others KAITIAKITANGA Stewardship Our assets and the natural environment are thriving. ARUMONI Commercial We are leaders in commercial growth. KIRITAKI Customer Customers are at the heart of what we do. NG TNGATA Our People We learn and adapt to realise our full potential. KMTUITANGA Partnerships We are the trusted partner of choice. Generation development uplift Earnings transformation Capturing energy transition growth Connected and inclusive employee experience Rebuild sector confidence STRATEGY REFRESH: FOCUS ON PRIORITIES THAT WILL DELIVER VALUE For personal use only
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REBUILDING SECTOR CONFIDENCE THROUGH THE ENERGY TRANSITION INTERCONNECTED ENERGY SYSTEM CHALLENGES / OPPORTUNITIES NEW ZEALAND MARKET AND POLICY SETTINGS EVOLVING MERCURY’S RESPONSE Affordability increasingly challenging across the board Intermittent renewables displacing thermal Firming generation still needed to keep lights on Competitive landscape evolving Climate policy driving demand growth Workforce demographics changing Technological, societal advances evolving how we interact with energy Helping shape solutions to deliver affordable and secure electricity Independent expert input Energy Transition Framework established to strengthen collaboration Deepening engagement – Increasing information on the transition for the public and community KEY FOCUS AREAS ENABLING ENVIRONMENTAL FRAMEWORKS AND SMART SYSTEM BOOSTING HEDGE MARKET TO SUPPORT VIBRANT COMPETITION LASER FOCUS ON SECURITY OF SUPPLY & FIRMING GENERATION Government Review of electricity market performance Energy Competition Task Force Resource Management Reforms Network investment & pricing arrangements Energy & Electricity Security Bill Smart system development & market evolution JUNE 2025 MERCURY INVESTOR DAY REPORT 13 For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT " Firming generation is the #1 priority. " Existing thermal generation and ensuring fuel security is a key enabler. " Other improvements to market arrangements are needed, including: 2 Increasing transparency of gas market information 2 Ensuring clear investment signals for new firming solutions (e.g. batteries) by unfettering scarcity pricing. " Other options to support firming, such as capacity mechanisms or direct government intervention, require careful consideration of costs and risks POLICY PRIORITIES FOR NAVIGATING THE TRANSITION Firming generation needed to keep lights on Declining gas supplies and New Zealand’s dry year problem have exacerbated the need for more firming generation to ensure secure supply when the rain doesn’t fall, the wind doesn’t blow, and the sun doesn’t shine. Boost hedge market to enable vibrant competition The EA and ComCom Energy Competition Task Force is currently considering how to enhance competition and to provide more options for end users of electricity. This includes exploring options to "level the playing field" via the introduction of non-discrimination provisions for gentailers. " Mercury agrees there are some challenges for independent retailers accessing flexible contracts that urgently need to be resolved. " Boosting the hedge market will better solve the actual issues with fewer unintended consequences than what is being explored by the Task Force. " Our recommendations to boost the hedge market include: 2 Making conduct expectations for the OTC market mandatory and enforcing these 2 Shining further light on the hedge contract market by expanding the information being published and monitored. 2 Continuing to develop further standardised flexibility products as they will make it easier for all companies to participate in the transition. 2 Consider introducing market making obligations for gentailers for an appropriate shaped product to establish trust in market prices. " More intrusive options like separation of gentailers will not effectively address the current challenges. 14 For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 15 TODAY. TOMORROW. TOGETHER. Using our capability to operate for value Plans to build for value Opportunity to optimise future value " Better productivity to lift performance " Best renewable development track-record to execute current projects " Strong core and scale to focus on delivery " Advantaged portfolio positioned for supply growth " Bigger value-accretive renewable pipeline to grow energy and capacity " Growing Telco connections through bundling, scale and customer experience " Shaping electrification opportunities to enable growth of supply " Established leading position in wind development and geothermal pipeline " Strengthening social licence and supply chain with our partners For personal use only
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ADVANTAGED PORTFOLIO POSITIONED FOR GROWTH INVESTOR DAY 10 JUNE 2025 TIM THOMPSON EGM WHOLESALE MARKETS For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 17 SUPERIOR RETURNS TODA Y For personal use only
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MEAN ANNUAL GENERATION ~8,840 GWH HYDRO ~4,140 GWH GEOTHERMAL ~2,600 GWH WIND ~2,100 GWH JUNE 2025 MERCURY INVESTOR DAY REPORT 18 Renewable generation " Baseload geothermal, intermittent wind, flexible hydro " Diversified, complementary, low-cost fuel sources Superior asset location " North Island generation close to major demand centres " Rain-fed hydro aligned with winter peak demand Substantial near-term growth " 1+ TWh new generation in construction (wind + geothermal) " Backed by long-term sales commitments and portfolio demand Experienced trading & risk management " 50+ years of senior leadership experience in wholesale and risk " Proven expertise across trading and portfolio management OUR RESILIENT PORTFOLIO IS DELIVERING SUPERIOR RETURNS TODAY NATIONAL DEMAND VS. CATCHMENT INFLOWS ANNUAL FINANCIAL TRADING PERFORMANCE WAIKATO HYDRO GWAP TO TWAP VS. NATIONAL CATCHMENT RANGE1 1 Generation Weighted Average Price (GWAP) vs. Time Weighted Average Price (TWAP) at OTA2201 Includes: Waikato, Tongariro, Waitaki, Manapouri and Clutha catchments. For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 19 THE WAIKATO HYDRO SYSTEMS PLAYS A CRITICAL FIRMING ROLE WAIKATO HYDRO SYSTEM FIRMING OF WIND PORTFOLIO STORAGE & PO RTFOLIO MANAGEMENT KEY MITIGATIONS OF INFLOW DEFICIT PEAK DEMAND (Trading Periods) DUNKELFLAUTE 1 (Weeks) DRY-YEAR (Months) Our advantaged portfolio:Diverse renewable generation / Superior asset location / Experienced trading & risk management / Proven track record Average portfolio settings of 750GWh/ annum long 580GWh of storage; min - max generation 2 of 3.9 - 19.8GWh per day Hydro flexibility Hydro storage Portfolio Management 1 A period of high demand and low solar and wind output due to clo udy and still conditions 2 For 5-year period to 30-Apr-25 For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 20 Leveraging What We Have " Digital River is Mercury’s AI-powered decision platform and digital twin " Optimises hydro operations by simulating complex hydrology scenarios for value " Demonstrates our commitment to tech-driven continuous improvement Delivering Tangible Outcomes – 50GWh annual benefit " On track for record hydro efficiency in FY2025 " Uplift of average annual hydro generation by 50GWh to ~4,140GWh due to efficiency gains " Broader insights support trading, portfolio and asset management WE’RE BUILDING ON OUR ADVANTAGE WITH TECHNOLOGY ENABLED INNOVATION WAIKATO HYDRO EFFICIENCY & GENERATION BY YEAR For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 21 BUILDING FOR TOMORROW THROUGH A CHALLENGING TRANSITION For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 22 Electrification is NZ’s Path to Net Zero " Electrifying transport & heat can deliver ~70% of NZ’s carbon reduction " NZ’s world-class wind and geothermal resources are key enablers Security of Supply is Critical " Need to ensure security of supply in all periods – from winter peak demand (e.g. 9 May 2024) to dry years (e.g. 2024–25) " Rising reliance on intermittent renewables (wind/solar) increases the challenge " Sector must support thermal and new flexible capacity for firming Affordability Relies on Efficient Investment " System cost pressures driven by security needs and infrastructure upgrades across the energy system " Mid to long term solutions require efficient investment in lowest-cost, smart infrastructure that enables an integrated energy system WE’RE POSITIONED FOR GROWTH BUT ADAPTABLE TO ALL FUTURE OUTCOMES MERCURY STRATEGIC SCENARIOS For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 23 POSITIONING FOR RESILIENT LONG-TERM GROWTH For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 24 WE HAVE AN INTEGRATED LONG-TERM PORTFOLIO PLAN Proven Portfolio Strategy " Mercury has a proven track record in portfolio management " Net long generation ~750GWh annually (varies with hydrology, plant availability, hedging, and sales) " Closely aligned with sales and generation development strategies Integrated, Forward-Looking Approach " Long-term view guides sales, hedging (incl. 3rd party PPAs), and generation development " Manawa CFD decay provides a natural hedge Strategic Sales Enable Development " Long-term C&I sales (e.g. NZAS, AWS) linked to developments " Managed as part of C&I sales and renewals strategy " Avg. C&I contract duration ~5 years; helps customers manage transition, supports generation development, and management of renewal risk INDICATIVE NET POSITION BREAKDOWN FY2030 FY2026 TEAL GROWTH SCENARIO TEAL GROWTH SCENARIO MANAWA CFD For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 25 Portfolio-Enabled Firming with a Hydro Cornerstone " Waikato Hydro Scheme provides significant firming today " Additional firming enabled via capacity additions, renewable diversity, strategic sales, and contracting Renewable Diversity Reduces Firming Needs " Location and resource diversity (e.g. KD2, KWK) reduce firming demand Capacity Additions Unlock Hydro Firming " Hydro firming limited by peak demand periods " Spare flexibility outside peaks can be unlocked with capacity additions " Mercury is progressing both supply-side (e.g. WKM battery) and demand-side (e.g. hot water control) flexibility options Strategic Sales & Hedging Enhance the Portfolio " Targeted sales (e.g. AWS, Visy) and active hedging (e.g. Huntly HFO) strengthen portfolio performance OUR APPROACH TO CAPACITY WILL UNLOCK FURTHER HYDRO FIRMING MARGINAL WIND PORTFOLIO CONTRIBUTION OF KAIWAIKAWE1 EXAMPLE OF CAPACITY ADDITIONS SUPPLEMENTING HYDRO2 1 Wind portfolio includes non-PPA Turitea, KD1 & KD2 2 Hydro Net Position = residual sales commitments to be covered by our hydro assets after elimination of other generation sources (including flexibility resources e.g. BESS) and equivalent sales For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 26 OUR FIRMING POTENTIAL IS SUFFICIENT TO ENABLE OUR GROWTH AMBITIONS Renewable diversity Proof Point: Geographic diversity of wind developments / Geothermal feature in Generation Development pipeline / hydro refurbishment programme enhancing capacity ‘Portfolio of flex’ Proof Point: 13k hot waters under control in winter 2024; expanding to 50k in 2025 / development of distributed battery model / Mass Market trials including EV charging and Time-Of-Use pricing Contracted flexibility Proof Point: Genesis HFO contracting / AWS, Visy and other generation-following sales Grid-scale battery Proof Point: 300MW Whakamaru BESS option – co-optimisable with Waikato Hydro System INDICATIVE FY30 CAPACITY REQUIREMENTS VS. OPTIONS 1 Wind diversity only with hydro refurbishments and OEC5 included as offsets in Portfolio Need; includes potential of generation development in Teal Growth Scenario 2 Includes Huntly Firming Options and indicative new customer contracting (such as AWS & Visy) TEAL GROWTH SCENARIO CONTRACTED FLEXIBILITY2 RENEWABLE DIVERSITY1 For personal use only
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ADVANTAGED PORTFOLIO POSITIONED FOR GROWTH JUNE 2025 MERCURY INVESTOR DAY REPORT 27 400 GWh C&I electrification / new demand by 2027 50MW of additional managed capacity by 2026 BUILDING FOR TOMORROW THROUGH A CHALLENGING TRANSITION Electrification:New Zealand’s best decarbonisation option Security:Focus needed to ensure solutions across all timeframes Affordability:Working to support the lowest cost system POSITIONING FOR RESILIENT LONG-TERM GROW Renewable diversity: Geographic and fuel diversity reduces firming need Portfolio firming: Hydro firming can be unlocked with capacity additions Active portfolio management:Strategic sales and hedging further enable flex SUPERIOR RETURNS TODAY Our advantaged portfolio: Diversified renewable generation / Superior asset location / Substantial near-term growth / Experienced trading & risk management / Track record of performance For personal use only
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SCALE & EFFICIENCY UNLOCK VALUE INVESTOR DAY 10 JUNE 2025 CRAIG NEUSTROSKI COO – CUSTOMER FIONA SMITH CHIEF PEOPLE EXPERIENCE & TECHNOLOGY OFFICER MOA HAAR-SIMMONDS GM ENGAGE For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 29 VALUE DELIVERED BY INTEGRATION For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 30 Delivering Value Through Synergies " $34 million of synergies delivered by the end of FY25, including $30 million in Opex " On track to exceed original $35 million synergy targeted " Remaining synergies come from final SAP exit and recent organisational changes SYNERGIES SECURED MARCH 2023 DELIVERY OF SYNERGIES ON TRACK • On track to realise forecast cost synergies (Opex and Capex) over 3-year period MAY 2025 SYNERGIES SECURE • On track to exceed forecast cost synergies (Opex and Capex) over 3-year period $35m $10m of synergies to be realised in year 1 through: • Corporate shared services • Technology • Core retail business activity Additional synergies to be realised through FY24 – FY25 from: • Shift to Common Operating Model • Retirement of duplicate technologies • Becoming Future Ready $40m+ $17m of annualised synergies delivered across FY25, of which $16m is Opex related. Achieved through: • Labour savings • Technology rationalisation • Refining core retail business activity Residual synergies in FY26 from: • Technology retirement (SAP Exit) • In flight organisational change For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 31 BUSINESS CASE ASSUMPTIONS WERE CONSERVATIVE Growing the multi-product customer base " Trustpower acquisition enabled connection growth via telco cross-sell and multi-product acquisition " Dual energy + telco customers increased from 21.9% to 26.7%. In the last 12 months 9K legacy Mercury customers have added telco " ~70% of sales are multi-product, driving higher revenue and lower churn " Churn of the legacy Trustpower customer base has been lower than modelled and now 2 years after Brand change is likely in-line with what Trustpower might have seen SPLIT OF CUSTOMERS SINCE INTEGRATION 3 MONTH ROLLING CHURN – ELECTRICITY • Electricity connections stable and within target range • Telco cross sell and new to Mercury trends as expected • Plenty of opportunity remains For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 32 SET TO DELIVER FURTHER VALUE Delivered by: " Scaling connection growth through telco bundling " Material reduction cost-to-serve via smart operations and smart technology " Differentiated strategy based on bundling and creating value rather than competing simply on price What this looks like: " More multi-product customers, 1m connections, and market- leading retention " Significantly lower opex per connection (circa 30%) with enhanced customer experience " Electricity market share maintained at 25–26% " Broadband connections growing to ~210k by FY27 and ~240k by FY30 LEVERAGING SCALE AND TECHNOLOGY The Strategic Contribution of the Customer Business Is Delivering Earnings Transformation CUSTOMER CONNECTIONS AND BUNDLING GROWTH 223 197 186 162 156 861 906 945 980 1,002 600 650 700 750 800 850 900 950 1,000 1,050 60 80 100 120 140 160 180 200 220 240 FY24 FY25 FY26 FY27 FY28 No. of connections in '000s $ OPEX / connection Segment OPEX per connection Total Connections (incl Now ) 30% reduction For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 33 SMART OPERATIONS & TECH UNLOCK SCALABLE EFFICIENCY For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 34 Building tomorrow " Seamless integration - minimal customer impact, on time & within budget " Data mastery – building on solid platforms " Software Engineering – AI coding " AI Assistant pilots & Robotics – unlocking productivity & building capability " Insight & Transcription – customer sentiment tracking & cost out of 20,000 hours " Value add digitisation – self-service channel volumes doubled to 2.1 million interactions " Digital River – extracting value from existing assets " Optimus Brine – autonomous robot delivering safe real time monitoring AI IN SOFTWARE ENGINEERING Acceptance Rate (by lines) Over the last 28 days 17 .3% 36522 Total lines of code suggested Over the last 28 days FROM LABOUR LED TO TECH ENABLED AUTONOMOUS VEHICLE “OPTIMUS BRINE” SELF SERVICE CHANNEL SHIFTS OVERTIME For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 35 Building tomorrow " Telephony integrations – modular & fit for future " Automation & Digitisation – self-service channel volume triples to 3.3 million interactions " AI assistants for all – productivity & cost savings every day " Geothermal optimisation – more from the same assets " Agentic autonomous agents – real time AI customer facing interactions LEVERAGING SMART TECH TO DRIVE COST OUT TARGETING A 30% REDUCTION IN OPEX PER CONNECTION BY FY28 For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 36 TRANSFORMING CUSTOMER EXPERIENCE TO DELIVER EFFICIENCY & LIFT SATISFACTION For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 37 Significantly reducing our cost to serve by: " Simplifying - Personalising customer interactions " Shifting - Offering smart digital-first experiences investing in self service capability " Earning - Maintaining strong service levels, with targeted support for those in hardship Value for customers enabled through a digital shift and smarter propositions " Access to smarter pricing solutions i.e. Time of use pricing " More control through real-time usage insights giving visibility of costs and consumption " More relevant offers with personalised plans and bundled propositions " More reasons to stay via access to Mercury Rewards " Efficiency gains through faster speeds to resolution and tech that scales SIMPLE AND SMART WITH A HUMAN TOUCH Increasing app downloads by 280,000 to drive digital engagement Shifting 80% of our service volume to low cost channels Targeting a 50% reduction in cost to serve FROM HIGH COST TO LOWER COST SERVICE CHANNELS For personal use only
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OUR APPROACH TO AFFORDABILITY JUNE 2025 MERCURY INVESTOR DAY REPORT Delivering greater clarity, control and care " Clarity in cost through real-time usage insights that help customers understand and manage what they are spending " Control through choice, providing flexible plans and tools that help customers manage consumption, and get back on track following a set back " Care when it’s needed, through targeted help for vulnerable customers to stay connected Collaborative research with Genesis and NGOs into hidden hardship completed Working with ERANZ across various programs, unlocking insights into sector challenges, and approaches A broader range of propositions such as Time of Use putting customers in control of their usage and pricing Tailored payment solutions supporting customers in hardship to stay connected while enabling targeted debt recovery and long-term customer value Hedges provided to Nau Mai R and Toast Electric extend impact beyond Mercury’s customer base Two-year winter energy study with Kinga Ora trialled capped bills for low-income households completed MERCURY RESIDENTIAL POST PAY CREDIT DISCONNECTIONS JAN 20 - MAR 25 CUSTOMER CARE PROGRAM APPROACH Partnerships/Collaboration with others Increasing knowledge and understanding Direct Support HIDDEN HARDSHIPS HUI – MERCURY TEAM 38 For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 39 LEVERAGING OUR SCALE TO DELIVER VALUE FOR CUSTOMERS & SHAREHOLDERS SMART OPERATIONS & TECH UNLOCK SCALABLE EFFICIENCY • Automation and AI are key levers to enhance experience and reduce cost • Success comes from building on solid foundations and unleashes the full potential of AI & automation - enabling us to simplify, standardise & scale • We have a track record of delivery TRANSFORMING CUSTOMER EXPERIENCE TO DELIVER EFFICIENCY & LIFT SATISFACTION • Customer expectations are changing—fast, seamless, and personalised is the new standard, digital & AI are the unlock • We are targeting 30% lower opex per connection by FY28 • We are improving outcomes for all customers – and leaning in to affordability and support for vulnerable customers VALUE DELIVERED BY INTEGRATION • We have reached scale and completed integration • Synergies have been secured ($40m+) • Mercury is well-positioned to deliver value. Broadband and mobile cross- sell potential is significant given our strong electricity customer base. • Targeting 1 million connections by 2028 Synergies Secured Scale & Efficiency Improved Experience For personal use only
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ACCELERATING GENERATION DEVELOPMENT INVESTOR DAY 10 JUNE 2025 MATT TOLCHER EGM GENERATION DEVELOPMENT BEN PEZARO HEAD OF GEOTHERMAL GENERATION DEVELOPMENT For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 41 BETTER DELIVERY TODAY For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 42 OUR TRACK RECORD IS ONE OF SUCCESS & SUSTAINED MOMENTUM " Our team reached FID or delivered 5 of the 6 New Zealand wind projects in the last 5 years " Our three construction projects are going to plan and will provide attractive returns " We’re leveraging our experience in geothermal, and we’re back in geothermal dev with OEC5 WE’RE OUTPACING OUR PEERS AT BUILDING VALUE ACCRETIVE RENEWABLES OUR 2020’S TRACK RECORD IS ONE OF SUCCESSFUL DEVELOPMENT AND DELIVERY 1 by mid April 25. Waipipi included as MCY New generation commissioned and committed since 20201 TURITEA KAIWERA DOWNS STAGE 1 COST On budget Below budget TIME Delayed Delivered early QUALITY Achieved objectives Achieved objectives HSE Good performance Good performance TURITEA WIND FARM KAIWERA DOWNS S1 WIND FARM For personal use only
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OUR IN-HOUSE TEAM IS SEASONED, WITH END-TO-END CAPABILITY IN WIND AND GEO JUNE 2025 MERCURY INVESTOR DAY REPORT 43 " Gen Dev is in our DNA and our organisation is structured to deliver on our Gen Dev ambitions " Our wind development capability is NZ leading " Our geothermal team is world class in reservoir management and drilling, and we’ve rebuilt our geothermal delivery expertise through OEC5 Turitea & KD1 Constructed OEC5, KD1, KD2 and KWK Consented BESS Consented Landowner, iwi, and community stakeholder engagement across 8 regions Commercial and contracting completed for Turitea, OEC5, KD1, KD2, & KWK Prospecting and fuel modelling across our wind and geo pipeline 18 wells since 2013 including 6 new wells since 2023 [2 more to come] OEC5, KD2 & KWK Under Construction 2020 2021 2022 2023 2024 2025 Project Management, Engineering and Construction Management Environment & Consenting Landowner iwi, community stakeholder engagement Commercial and contracting Prospecting and fuel modelling Geothermal Drilling For personal use only
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OUR SUPPLY CHAIN IS PROVEN AND READY TO DELIVER JUNE 2025 MERCURY INVESTOR DAY REPORT 44 " We’ve formed strategic supply chain partnerships for resilience and value across design, OEM, civil, & electrical " We’ve proven a commercial approach that balances scope and risk allocation and commercial outcomes for all parties. " We’re testing the market through competitive procurement processes on Mahinerangi 2 and Whakamaru BESS Strategic Partnerships Driving Resilience and Value “We deeply value our long- term partnership with Mercury — built on a strong track record and steady pipeline of projects. What makes this partnership powerful is how it combines Vestas’ global supply chain strength with Mercury’s tenacity, capability, and deep local market knowledge — one doesn’t work without the other.” Jan-Daniel Kammer, VP Sales, Vestas ANZ For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 45 POSITIONED TO BUILD FOR VALUE TOMORROW For personal use only
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MERCURY’S GENERATION DEVELOPMENT PLATFORM HAS QUALITY OPTIONS ACROSS THE ENTIRE DEVELOPMENT LIFECYCLE Mercury’s Generation Development Programme 0 2 4 6 8 10 Construction Pipeline Pre-pipeline TWh We’re assessing early-stage options to grow pipeline to >8 TWh by 2030 We’re advancing ~15 TWh of options at various stages of development. 1.1 TWh is currently in construction, and we’re planning to deliver 3.5 TWh and grow pipeline to >8 TWh by 2030 Technology Fundamentals Drive Portfolio Composition •Wind - Wind remains our focus given its LRMC advantage, our leading pipeline and our proven capability •Geothermal - An expanded geothermal pipeline is under investigation and could add attractive baseload post-2030 •Solar - Flexibility across buy, build, and partner enables optionality to target low-cost solar options and scale as market dynamics shift. We recently completed an EOI process for 100MW solar PPA and we’ve shortlisted 2 projects for due diligence •BESS - We see an increasing role for BESS in our portfolio as variable renewable generation grows. We have 150MW of pre-2030 BESS options and are progressing another 500MW of options for post-2030 Gap to 2030 Gap to 2030 Our pipeline is positioned to deliver 3.5 TWh of new gen by 2030 We’re active in market and continuously identify and assess new opportunities Wind Geothermal Solar Hydro rehabs JUNE 2025MERCURY INVESTOR DAY REPORT 46 For personal use only
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OUR $1B & 1.1 TWH OF CONSTRUCTION PROJECTS ARE ON TIME AND ON BUDGET JUNE 2025 MERCURY INVESTOR DAY REPORT 47 STATUS COMMENTS TIME Risk of small delay due to equipment delivery and construction challenges COST Currentforecast is on plan QUALITY On track HSE Zero serious harm to date NG TAMARIKI OEC5 GEO KAIWERA DOWNS S2 WIND KAIWAIKAWE WIND STATUS COMMENTS TIME Civil, electrical, transmission & component deliveries are on plan COST Currentforecast is on plan QUALITY On track HSE Zero serious harm to date STATUS COMMENTS TIME Civil, electrical, transmission & component deliveries are on plan COST Currentforecast is on plan QUALITY On track HSE Zero serious harm to date FID MAJOR EQPT STARTUP COD FID TURBINE STARTUP COD FID TURBINE ST ARTUP COD DELIVERIES DELIVERIES DELIVERIES Q2 FY24 H1 FY26 H1FY26 Q3 FY25 Q4 FY24 Q2 FY25 H2 FY26 H2 FY26 H2 F Y26 H1 FY27 H1 FY27 H1 FY27 • Baseload gen adds energy & supports firming • Leverages existing reservoir and geothermal station • Hedged and supporting Tiwai’s long-term commitment to NZ • Favourable wind, geotech, civils, and connection • Northland location • Benefits from diverse wind profile (geography) For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 48 OUR $1B & 1.1 TWH OF CONSTRUCTION PROJECTS ARE ON TIME AND ON BUDGET OEC5 GEOTHERMAL CONSTRUCTION START – MAY 2024 220KV SUBSTATION CIVIL & S TRUCTURES ARE COMPLETE BULK EARTHWORKS ARE NEARLY COMPLE TE ONE YEAR ON – MAY 2025 FINISHED ROADING, HARDSTAND & FOUNDAT ION BATCHING PLANT INSTALLED FOR FOUNDATION POURS KD2 WIND FARM KAIWAIKAWE WIND FARM For personal use only
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WE ARE PLANNING TO DELIVER 3.5 TWH BY 2030 JUNE 2025 MERCURY INVESTOR DAY REPORT 49 " We’re leveraging our strength in wind / geo and our advantaged project pipeline " ~35% is being delivered through projects currently in construction (OEC5, Kaiwera Downs S2, Kaiwaikawe) " ~150MW of capacity is targeted for delivery in FY28 via Whakamaru BESS " We see a role for solar and will maintain flexibility across buy, build, and partner. A lower barrier to entry means we can scale for pre-2030 delivery if value- accretive " Waikokowai, Puketoi, and geo remain options for 2030; along with portfolio high-grading and prospect acceleration Note: TWh in this chart are delivered by FY year end, not energy generated in that FY For personal use only
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MAHINERANGI STAGE 2 IS ADVANCING TO CONSENT, PROCUREMENT & FID JUNE 2025 MERCURY INVESTOR DAY REPORT 50 MAHINERANGI STAGE 2 WF PROJECT ELEMENT CRITERIA RATING COMMENTS WIND &TURBINE ~8 m/s & 34% capacity factor 170-190 MWs and up to 550 GWh GRID & TRANSMISSION 6km transmission to 110kV. Potential for minor wider area protection grid works. CONSENT & ENVIRO No significant environmental considerations. Fast Track Legislation listed project STAKEHOLDERS Consultation underway with iwi, community, and regulatory entities TERRAIN & CONSTRUCTION Flat terrain and favourable geotech LOCATION & TRANSPORT 50kms west of Dunedin. Transport from Bluff. LODGE CONSENT INVESTMENT GATE - PROCUREMENT TENDER & PREFERRED CONTRACTORS OPERATIONAL H1 FY26 H2 FY26 H2 FY28 CONSENT GRANTED COMPLETE ECI AND CONTRACTS AGREED INVESTMENT GATE - FID • Good wind & efficient capex, leverages Mahinerangi 1 investment • Hi-grading by increasing the MWs – from 138MW to 170-190MW • MCY has limited Portfolio exposure in the South Island For personal use only
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WE’VE SECURED RIGHTS FOR A 300MW BESS TO CONTRIBUTE TO FIRMING OUR RENEWABLE GROWTH AMBITIONS JUNE 2025 MERCURY INVESTOR DAY REPORT 51 PROJECT ELEMENT CRITERIA RATING COMMENTS GRID & TRANSMISSION Connection onsite via the Whakamaru Generator 1 transmission line CONSENT & ENVIRO Consent granted in May 25 STAKEHOLDERS Successful engagement through consenting SUPPLY CHAIN Leveraging Aus expertise for BESS design and procurement. Multiple BESS Suppliers and BOP Contractors engaged ECONOMICS Assessment underway. Battery CAPEX continuing to decline – currently assessing economic contribution to Portfolio PRELIM DESIGN CONSENT GRANTED PROCUREMENT & CONTRACTS INVESTMENT GATE – FID OPERATIONAL H2 FY25 H1 FY26 H2 FY26 H2 FY28 INVESTMENT GATE – PROCUREMENT PROCURE LL ELECTRICAL • All rights secured – Land, Consent, Grid • Large BESS in a beneficial location – can be delivered in phases • Trading synergy via bulk dispatch with Hydro WHAKAMARU BESS BESS CAPEX REDUCTIONS LIKELY TO BENEFIT WHAKAMARU For personal use only
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WE’RE ACTIVELY OPTIMISING & DE-RISKING OPTIONALITY FOR 2030 DELIVERY JUNE 2025 MERCURY INVESTOR DAY REPORT 52 EXISTING PUKETOI CONSENT ALTERNATE PUKETOI CONSENT ASSESSING OPTION TO LOCATE TURBINES HIGHER ON RIDGELINE TO REDUCE CIVIL COST & DERISK CONSTRUCTION Waikokowai:We’re focused on securing remaining land rights, progressing consenting studies, and optimising project layout for 2030 development. Site is well suited to scale with potential for future growth. • Additional land rights to increase project size by 50 to 100MW are due to be signed, increasing the project to ~300 to 350 MW. • Optimisation and consenting underway across turbine layouts, environmental mapping, and civil and transmission design. Puketoi 2.0: We’re focused on scheme and consent optimisation, and de-risking geo-tech to realise the full potential of this world class wind resource - 12m/s average wind speed. • Investigating opportunities to increase project size by approx 30 to 40 MW. • Optimisation work underway across development constraints, access roading, and civil and transmission design. Highlights Highlights For personal use only
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WE’RE DEVELOPING A PIPELINE OF HIGH-QUALITY OPTIONS THAT POSITION US TO LEAD THE ENERGY TRANSITION POST-2030 JUNE 2025 MERCURY INVESTOR DAY REPORT 53 MERCURY’S PIPELINE FOCUSES ON HIGH VALUE FUELS AND LEVERAGES OUR COMPETITIVE ADVANTAGE IN WIND AND GEOTHERMAL " Our post-2030 opportunity set continues to be guided by technology fundamentals and leveraging Mercury’s core capability. " In addition to onshore wind, we’re focusing on converting early stage Geothermal opportunities into post-2030 development options. Wind Geothermal 0 2 4 6 8 10 Pre-pipeline TWh pre-pipeline opportunities For personal use only
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OUR STRONG GEOTHERMAL FOUNDATION JUNE 2025 MERCURY INVESTOR DAY REPORT 54 " 480MW+ / 3.6 TWh under operation " Founded with strong iwi partnerships " High capacity, baseload generation " Core technical and delivery capability MMKAI Joint venture with Tkaropaki Trust NG TAMARIKI Mercury owned ROTOKAWA Joint venture with Tauhara North No.2 Trust KAWERAU Mercury owned GEOTHERMAL OPPORTUNITY AT SCALELARGE, HIGH VALUE AND DIVERSE EXISTING GEOTHERMAL PORTFOLIO 112MW NG AWA PkRUA Joint venture with Tauhara North No.2 Trust 86MW & 48MW OEC5 107MW 34MW 139MW UNLOCKS THE NEXT ROUND OF GEO GROWTH Up to 5 TWh of potential geothermal opportunities (unfiltered) For personal use only
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WE’RE EVALUATING POST-2030 GEOTHERMAL POTENTIAL JUNE 2025 MERCURY INVESTOR DAY REPORT 55 NG TAMARIKI EXAMPLE High quality resource with proven phased development history and potential for expansion Ng Tamariki Geothermal Field +290ºC +280ºC +260ºC +260ºC +280ºC Deep temperature contours Current production area OEC1-5 Injection Injection 2km N " Largest geographic geothermal footprint " Currently generating from ~10% of total prospect acreage (33k Ha) " Mix of brownfield and greenfield opportunities " Early stage development programme underway Early Stage Development Factors " Leverage reservoir simulation capability " Explore open boundaries – temperature and permeability across all horizons " Map and integrate possible brownfield synergies " Use risk-based development phasing " Monitoring and understand best fit technology options For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 56 SHAPING THE NZ DEVELOPMENT ECOSYSTEM For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 57 Social License – to bring communities along " We’re proactive and transparent in our consultation with iwi, stakeholders, and communities where we’re developing. Proof point: We successfully consented (new or amendments) KD1, KD2, OEC5, KWK, and BESS Government & Regulatory – to enable efficient projects " We’re consulting with government on various changes to enabling legislation e.g. RMA reform, Fast-Track Approvals legislation, updates to the national direction package changes to EA code. Proof point: We successfully listed 4 wind farm projects in the Fast Track Approvals Legislation Grid Connection & Transmission – to ensure the grid is ready " We consult with Transpower on ways to unlock credible projects from the generation connection queue. In the meantime, we’re getting on with projects through a Developer- Led model. Proof point: We developed KD2 Grid Connection following a developer-led model, in consultation with Transpower NZ Development Capability – to further unlock Gen Dev in NZ " We’re testing and supporting new supply chain participants - including turbine suppliers and delivery contractors. Proof point: We will tender Mahinerangi 2 and Whakamaru BESS to an experienced pool of OEMs and contractors KAIWAIKAWE GROUNDBREAKING WITH IWI, LANDOWNERS, MP MCCALLUM AND MINISTER WATTS KD2 SITE VISIT WITH HOKONUI RkNUNGA WE’RE LEANING INTO DEVELOPMENT ENABLERS TO UNLOCK RENEWABLES GROWTH AND CREATE STRATEGIC ADVANTAGE For personal use only
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BEST IN CLASS RENEWABLES DEVELOPMENT Plan to deliver 3.5 TWh of new generation by 2030 Grow pipeline to >8TWh by 2030 POSITIONED TO BUILD FOR VALUE TOMORROW " $1B / 1.1 TWh construction projects are on track " Developing high value executable options to position us to meet rising demand and lead the energy transition, to 2030 and beyond SHAPING THE NZ DEVELOPMENT ECOSYSTEM " Creating a strategic advantage by shaping the NZ renewables development ecosystem - Social Licence, Regulation and Policy, Partnerships, Grid, and NZ Development Capability BETTER DELIVERY TODAY • NZ’s most consistent and successful renewables developer • Seasoned, end-to-end inhouse capability with a supply chain poised to support JUNE 2025 MERCURY INVESTOR DAY REPORT 58 For personal use only
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GENERATION DELIVERING VALUE INVESTOR DAY 10 JUNE 2025 KEVIN TAYLOR CHIEF OPERATING OFFICER For personal use only
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Generation has delivered strong performance for safety and production outcomes Mercury has a defined programme to enhance our safety performance through a safety citizenship model. " Leaders Routines - Toolbox Talks & Short-Interval Controls " Coaching Bench " Hazard Identification " Process Safety Fundamentals Mercury generation has continued to deliver an uplift YoY with respect to normalised Production & Availability. " Geothermal production volumes continue to be stable 2,650 GWh & FY25 YtD 93.5% Availability (on plan) " Hydro Production Volumes have seen low inflows in Q3 FY25 forecasting 3,400 GWh; strong availability in FY25 at 86% (2% above plan) " Wind FY25 YtD 1900 GWh; 96.5% Availability (0.5% above plan) DELIVERING SAFE AND RELIABLE GENERATION PERFORMANCE 8.8 TWH <3 FOF GEO 93.5% GEO – 86% HYDRO – 96.5% WIND <8 AIFR TRIFR ~ 0.65 +100% HSW REPORTING Mean Annual Generation Lowering forced outage factor YoY since FY22 Value creation through optimised availability All Incident Frequency Rate 3 recordable injuries in the last 12 months Total recordable Incident Frequency Rate Trending down since FY22 Reporting of events & observations increase since 2022 JUNE 2025 MERCURY INVESTOR DAY REPORT 60 0 10 20 30 40 50 60 70 80 90 100 2021 2022 2023 2024 2025 Availability (%) Mercury Generation Performance Geo Availability Hydro Availability Wind Availability Mercury Generation HSW Performance For personal use only
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61 DELIVERING VALUE TODAY JUNE 2025 MERCURY INVESTOR DAY REPORT For personal use only
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CARBON REDUCTION PROGRAMME UPDATE: EMISSIONS REDUCTION DELIVERY ACROSS GEOTHERMAL Our target is to deliver an industry first solution for Carbon Abatement which we are on track to deliver, with net positive from an environmental and financial view point. We have delivered value at Ng Tamariki: " Industry first to undertake carbon reinjection " Total CO 2 avoided from the atmosphere: 20,079 tonnes to date " Offset ETS participation costs of over $1M since 2022 " $3.3M investment to complete NTM reinjection program Our team is focused on delivering effective emissions reduction solutions: " Completed technical reviews off flash plant processes required to achieve targets " Developed a comprehensive financial feasibility model " Flash plant CO 2 direct use case feasibility " Compare possible direct case options and opportunities Supports Mercury’s Climate Action Plan target: 70% reduction in Scope 1 emissions by 2030 (From FY22 emissions intensity baseline) NG TAMARIKI (~33,000 tC02e/y) – REINJECTION SUCCESSES JUNE 2025 MERCURY INVESTOR DAY REPORT 62 FY25 Feasibility Studies and Assessments Complete FY26 Strategy Recommendation & Detailed Development On Track FY27-FY29 Execution KAWERAU (~94,000 tCO2e/y) REINJECTION +/- DIRECT USE MERCURY EMISSION PROFILE (220,000 tCO2e/y) 20,079 tCO2-e REINJECTED 41% CO2-e REINJECTED 95% AVAILABILITY ~ $1M OFFSET ETS Total Emissions reinjected since 2021 Exceeded our target of 40% in Aug 2024 Equipment performance has achieved 95% availability vs target of 90% To date we have avoided over $1M in ETS costs since 2021 For personal use only
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GEOTHERMAL WELL DRILLING 63 The Geothermal drilling campaign has invested $147M for delivery of 6 wells, with 2 additional wells to complete the campaign with a total investment of $175M. The campaigns purpose is to: " Increase fuel supply for Ng Tamariki (supporting OEC5 expansion) and; " Maintain supply for Rotokawa and Kawerau stations The current programme has successfully delivered: " 3 new production wells all achieving drilling objectives " 3 new reinjection wells all achieving drilling objectives " 2 additional wells to be drilled in early FY26 " Strong partnerships established with domestic drilling contractors: 2 Marokopa Drilling 2 MB Century " Increased in-house technical capability " Leveraging expertise from external consultants 1 supports OEC5 upgrade l 2 Historic average drilling rate 2014-2020 is 1.2 wells/year. Forward projection drilling rate circa 1.3 wells/year. Field Well FY23-FY252 Drilling Outcomes % to Target Kawerau Production 1 140% Injection 1 125% Ng Tamariki1 Production 1 TBC Injection 1 250% Rotokawa Joint Venture (Mercury / TN2T gross) Production 1 100% Injection 1 100% JUNE 2025 MERCURY INVESTOR DAY REPORT For personal use only
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KARPIRO REHABILITATION PROJECT UPDATE " The Karpiro rehabilitation project is a $90 million investment in the station commissioned in 1946 " Scope includes full replacement of all three generating units: generators, turbines, and governors " Intake gates are also being replaced " Karpiro will increase station capacity from 96MW to 112.5MW. Annual output increase: +32 GWh/year " The last generator removed had been in service for 79 years " The project protects long-term value by extending asset life by 50 years " Main generating unit delivery is led by Andritz Hydro FIRST UNIT: Completion Aug 23 SECOND UNIT: Completion Sept 24 THIRD UNIT: Planned completion Sept 25 JUNE 2025 MERCURY INVESTOR DAY REPORT 64 For personal use only
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DISCIPLINED STAY-IN-BUSINESS CAPITAL ALLOCATION JUNE 2025 MERCURY INVESTOR DAY REPORT 65 " We prioritise capital efficiency, focusing investment on the highest-return opportunities " Long term SIB capex remains at $150m per year as previously stated. We phase spend to manage this reinvestment profile whilst balancing risk and value. " Protect & Enhance capex: " The Hydro Rehab programme protects current generation from end of asset life failures and adds significant capacity and efficiency. KPO adds 16.5MW and 32 GWh per year. The next 3 rehabs will add another 58MW and average generation of 87 GWh per year. " The drilling programme ensures that our geothermal assets have the fuel and resilience to maintain optimum performance. " Maintenance capex: " Generation assets includes both minor and major maintenance projects, such as Arapuni Left Abutment (dam leakage) and erosion works at the TaupM Control Gates " Technology & energy management capex is largely driven by technology, customer, and enterprise-wide initiatives 1 FY25F SIB Capex of $150m as per guidance update 25th February 2025 STAY-IN-BUSINESS CAPEX 0 20 40 60 80 100 120 140 160 FY24 FY25F Long-Term SIB Capex $m Maintenance Capex: Technology & Energy Management Maintenance Capex: Generation Assets Protect & Enhance Capex: Hydro rehabs and geothermal drilling For personal use only
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PROTECTING VALUE THROUGH ASSET RESILIENCE 66 JUNE 2025 MERCURY INVESTOR DAY REPORT For personal use only
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ASSET RESILIENCE AND STRENGTHENING OUR SOCIAL LICENSE TAUPM CONTROL GATES JUNE 2025 MERCURY INVESTOR DAY REPORT 67 " Constructed in the 1940s, the TaupM Control Gates involved diverting the original river channel " Mercury monitors the gates as part of its ongoing assurance programme " The structure is currently safe and fit for use " Long-term seismic resilience standards may require full replacement of the structure " Ngti Tkwharetoa and the hapk of Te Hikuwai are mana whenua of the area and critical partners in the project " Iwi and hapk will guide Mercury on matters relating to their whenua tkpuna (ancestral lands) PHASE 1: Engineering investigation & Cultural impact assessment COMPLETE PHASE 2: Optioneering in partnership FY25-FY26 PHASE 3: Consenting & Design FY27-FY29 PHASE 4: Construction FY30+ For personal use only
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REDUCING RISK AND STRENGTHENING ASSET RESILIENCE ARAPUNI LEFT ABUTMENT JUNE 2025 MERCURY INVESTOR DAY REPORT 68 " The Arapuni Dam was constructed in 1927 and has experienced seepage issues since inception " The original seepage controls, installed in the 1930s, are now ineffective due to age " Seepage changes were observed in the left abutment after two distant earthquakes in 2016 " Project objective: to safely and economically establish long-term, stable seepage conditions " The solution involves construction of an overlapping pile cutoff wall (shown in yellow) " A team of internationally recognised experts has been assembled to lead the project " The total project cost is currently estimated at approximately $120 million OVERLAPPING PILES TRUSTED PARTNER: TREVI Q1 FY26: Drainage Construction and Jet Grouting Trials Q2 FY26: Consents Granted, Alliance Agreement Established Q3 FY26 - 29: Main Cutoff Wall Construction 18 – 24 months For personal use only
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ENHANCING FUTURE VALUE 69 JUNE 2025 MERCURY INVESTOR DAY REPORT For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT Programme Designed to Deliver value: " Rehabilitation timing driven by asset condition, value and capital profile. " Timing continuously being optimised. " Next 3 stations in the program: Maraetai, Ohakuri, and Atiamuri " These assets are 64–75 years old " Largest Hydro Reinvestment in NZ " ~$550M reinvestment — the largest in New Zealand’s hydro history 70 HYDRO REHABILITATION PROGRAMME: ENHANCING OUR PEAKING STATIONS FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 Aratiatia (3 units) REHAB LEAD IN TURBINES Ohakuri (4 units) TURBINES LEAD IN GENERATORS Atiamuri (4 units) LEAD IN REHAB Whakamaru (4 units) REHAB Maraetai 1 (5 units) LEAD IN REHAB REHAB Maraetai 2 (5 units) CLASS 4 Waipapa (3 units) LEAD IN REHAB Arapuni (8 units) GENERATORS 5-8 Karpiro (3 units) CLASS 4 LEAD IN REHAB Supplier Partnership Model Delivers: " Efficient delivery through consistent technology use " Local skills retention via long-term, staged investment " Optimised phasing to balance asset risk and capital spend Value driven Design: " Programme driven by Generator condition. " Turbine replacement is NPV positive due to increased efficiency and capacity. " Digital River allows design to be optimised. " Potential to increase output by 58 MW (87 GWh) across the three sites (Maraetai 1, Ohakuri, Atiamuri) For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 71 Optimising existing plant: Developing a funnel of innovative opportunities to deliver sustainable incremental value from existing assets. These activities are creating value year on year with a wide range of solutions. Some examples include: 2 Leveraging AI and machine learning that provide tactics to geothermal operations on a daily basis 2 Executing projects that optimise ways of working like centralised operations where teams focus on incremental MW gains OPTIMISING PERFORMANCE OF EXISTING ASSETS Using Machine learning and digital science to optimise geothermal stations Centralising Geothermal control room operations - unattended stations with improved safety outcomes On track to deliver 30 GWh of enhanced sustained value 3-D view of plant performance from multiple parameters. This shows the complexity and interconnectivity of parameters needed to optimise MW generated. In FY26 we are on track to deliver an additional 1MW across our geothermal stations using this Machine Learning Model. 31 99 0 40 80 120 FY25 Annualised Generation (GWh) GENERATION OPTIMSING PERFORMANCE Generation Protected (GWh) Generation Enhanced (GWh) For personal use only
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DELIVERING VALUE TODAY AND TOMORROW. PROTECTING VALUE THROUGH ASSET RESILIENCE • Projects to improve asset resilience are on track and are well understood by stakeholders. • Key projects are Arapuni Left Abutment and TaupM Control Gates. • Strengthening Social license ENHANCING FUTURE VALUE • Rehab uplift 16.5MW from KPO and 58MW next 3 rehabs • Maximising value of our assets through machine learning DELIVERING VALUE TODAY • Geothermal Well Delivery. • First to delivery Carbon Capture. • Successful delivery of Karpiro Rehabilitation to plan. • Stay in Business Capital profile. JUNE 2025 MERCURY INVESTOR DAY REPORT 72 Protect & Enhance Annual Generation: 8.8 TWh Sustained Long term SIB capex at $150m For personal use only
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INVESTOR DAY 10 JUNE 2025 RICHARD HOPKINS CHIEF FINANCIAL OFFICER CFO PRESENTATION & CE WRAP For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 74 WHAT I’VE SEEN AT MERCURY CFO Early Observations People " Great people and depth of talent " Experienced executive with industry and external perspectives " Strong partnerships Value " Bold choices have paid off " Value accretive projects and technology choices " Opportunity in the core Governance " Leading Board " Disciplined project governance " Value and TSR focus with strong balance sheet For personal use only
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WHAT I’VE HEARD FROM LISTENING TO INVESTORS JUNE 2025 MERCURY INVESTOR DAY REPORT 75 Recent executive team change Continue the strong value creation for shareholders Continue the progressive dividend policy Operating costs higher than peers Value our capital Don’t over promise and under deliver Strong track-record and history of delivery 1Assumes $1000 were invested in Mercury’s IPO and gross dividends received on the payment date and reinvested in Mercury shares at the closing price on that date " This ignores the effect of tax, noting that investors would have received the full value of the dividend through imputation credits " This also ignores that Mercury has occasionally paid unimputed special dividends " Ignores dividends not adding up to whole share values (i.e. assumes fractional shares purchased with reinvested dividends) PERIOD TSR ANNUALISED TSR 1-year -2% -2% 5-year 49% 8% Since listing 226% 10% For personal use only
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346 385 395 370 370 370 300 320 340 360 380 400 FY23 FY24 FY25F FY26 FY27 FY28 $m OPERATING COST DISCIPLINE JUNE 2025 MERCURY INVESTOR DAY REPORT 76 " Cost out programme to lower operating costs to maintain $370m from FY26 to FY28 " Mercury-led, with support from an external provider " Programme consists of three phases, diagnostic, design and implementation. We are now in the implementation phase. " This first wave of cost out from the cost reduction pipeline targets key cost levers across the enterprise and drives a culture of strong cost wiring. 1 FY25F operating expenses guidance as at 25 February 2025 of $395m. Normalised for the geothermal well repair is $386m OPERATING EXPENSES For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 77 TODAY. TOMORROW. TOGETHER. Future TSR underpinned by operational excellence History of winning through partnerships. Well positioned for future Value accretive pipeline. Disciplined decision making Customer: Retail integration synergies delivered, journey to 1m connections by FY28 underway, operating for value and driving efficiencies Generation: 8.8 TWh new baseline. SIB capex maintained at $150m. Increasing output (32 GWh at Karpiro and 87 GWh from future rehabs). Operational efficiencies being found across hydro and geothermal. Cost Discipline: Lower operating costs to maintain $370m from FY26 to FY28 Building for value with the best renewable pipeline to grow energy and capacity: Plan to deliver 3.5 TWh of new generation by 2030 and lift total generation by ~40% pa Best renewable development track-record to execute current projects: Reached FID or delivered 5 of the 6 New Zealand wind projects in the last 5 years Generation development: Happy to stand out from the crowd. Backing LRMC winners - Leading position in wind development will continue to monitor other technologies as economics evolves Successful partnerships sets us apart Differentiated approach to iwi, supplier and customer relationships Social Licence On track for zero disconnections in FY25 Geothermal opportunity is significant: Currently generating from ~10% of total prospect acreage of 33k ha. Up to 5 TWh of potential geothermal opportunities beyond 2030. For personal use only
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JUNE 2025 MERCURY INVESTOR DAY REPORT 78 INDICATIVE FY30 EBITDAF ASPIRATION SUPPORTED BY VALUE ACCRETIVE RENEWABLE DEVELOPMENT " 1.1 TWh of generation in- construction across 3 projects, Ng Tamariki OEC5 geothermal, Kaiwera Downs stage 2 wind farm and Kaiwaikawe wind farm " Higher electricity and telco sales yields through long term channels and portfolio management " Cost out programme to lower operating costs to maintain $370m from FY26 to FY28 " $50m: Mahinerangi 2 wind farm is Mercury’s next highest confidence generation development option of scale up to 550 GWh and is subject to FID. Whakamaru BESS rights secured across land, consent and grid and is subject to FID " +$100m: Waikokowai and geothermal remain options for 2030. Optionality maintained as investments must be value accretive with planning to deliver on time and on budget Targeting FY30 EBITDAF $1,150m to $1,250m 1 Normalised primarily for mean generation volumes 2 Ng Tamariki OEC5 geothermal, Kaiwera Downs Stage 2 and Kaiwaikawe wind farms For personal use only
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Q&A INVESTOR DAY 10 JUNE 2025 STEW HAMILTON CHIEF EXECUTIVE RICHARD HOPKINS CHIEF FINANCIAL OFFICER For personal use only
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NG MIHI THANK YOU INVESTOR DAY 10 JUNE 2025 STEW HAMILTON CHIEF EXECUTIVE For personal use only
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