Earnings release
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QUARTERLY OPERATIONAL UPDATE Three months ended 31 December 2025 MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE 01 >> QUARTERLY HIGHLIGHTS HIGH NATIONAL HYDRO INFLOWS TAUPO STORAGE REMAINS ELEVATED NEW OEC5 GEOTHERMAL GENERATION >> COMMENTARY Market summary High national hydrological inflows of 98th percentile was reflected in lower wholesale spot electricity prices averaging $40/MWh in Auckland for the quarter. Forward prices in Auckland for FY26 have eased considerably to $135/MWh due to high inflows and above average hydro storage levels. National demand was up 3.1% for the quarter relative to PCP, primarily due to New Zealand Aluminium Smelter resuming normal operations after a period of demand response curtailments. Portfolio management has provided a strong Q3 stored hydro starting position Waikato catchment hydrological inflows were 88th percentile for the quarter, and this resulted in higher hydro generation of 1,072 GWh, up 200 GWh (23%) relative to PCP. Hydro spill was significant at ~345 GWh for the quarter, to maintain lakes within high operating levels. Taupō hydro storage ended the quarterwith an above average lake level. Wind generation was 32 GWh (6%) higher for the quarter relative to PCP. Geothermal generation was 50 GWh (9%) lower than PCP (539 GWh compared to 589 GWh) primarily driven by planned maintenance outage at Ngā Awa Pūrua which coincided with low spot prices and was delivered on budget and on time. Commercial & Industrial yield (physical & end-user CfDs) was lower by $3.2/MWh for the quarter relative to PCP. Physical C&I yields were lower as some contracts repriced to a lower 2026 electricity forward curve, while End-User CfDs were lower due to new long-term agreements. Our differentiated bundling and value-creation strategy lifted the share of customers with two or more products by 10% to 223k connections with telco and mobile connections increasing by 30k relative to PCP. We will deliver more reliable and renewable energy with Ngā Tamariki OEC5 close to completion Ngā Tamariki OEC5 geothermal expansion is close to completion.Commissioning of the new OEC5 unit started in January and once completed, it will increase site generation by 390 GWh per annum and net output by 46 MW. Full commissioning is expected by the end of Q3. RESULTED IN LOW WHOLESALE ELECTRICITY SPOT PRICES PROVIDING A STRONG Q3 PORTFOLIO POSITION COMMISSIONING STARTED AS PLANNED WITH POTENTIAL GENERATION UPSIDE RELATIVE TO GUIDANCE
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584 582 1 109 107 186 169 43 30 223 203 VWAP 3 Volume VWAP 3 Volume VWAP 3 Volume VWAP 3 Volume (GWh) (GWh) (GWh) (GWh) 1,463 1,473 3,361 3,324 4 916 970 2,265 2,294 5 547 503 1,096 1,030 81 84 192 193 6 1,544 1,557 3,553 3,517 750 750 1,569 1,621 292 244 690 601 7 458 506 880 1,020 54 50 115 81 1 444 475 1,238 1,339 1 444 480 1,238 1,355 2 2 2,178 1,996 4,729 4,194 1,072 872 2,461 1,836 8 539 589 1,230 1,272 152 196 296 398 415 339 742 685 532 593 1,200 1,458 7 532 593 1,200 1,458 9 2 -57 65 -172 1 2 3 4 5 6 7 8 9 MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE 02 Electricity connections (ICPs) Gas connections OPERATING INFORMATION Three months ended 31 December 2025 Three months ended 31 December 2024 Six months ended 31 December 2025 Six months ended 31 December 2024 CONNECTION NUMBERS ('000s) Customers with 2 or more products Telecommunication connections Mobile connections ($/MWh) ($/MWh) ($/MWh) ($/MWh) ELECTRICITY SALES Physical 166.05 155.53 170.32 161.05 Mass Market 195.55 174.30 179.08 168.16 Commercial & Industrial 116.70 119.38 152.22 145.19 Network Losses Physical Purchases 39.71 45.00 96.71 201.35 Financial 122.47 136.65 135.98 151.72 End User CfDs 125.10 130.06 130.43 134.94 Other Sell CfDs 120.79 139.83 140.34 161.60 Spot Settlement of CfDs 37.62 42.33 86.85 179.33 Spot Customer Purchases 41.12 39.89 92.60 147.02 Gas Sales ($/GJ, TJ) 42.36 31.61 38.16 27.41 Gas Purchases ($/GJ,TJ) 11.70 12.92 17.36 23.06 Telco Sales ($/month/connection) 76.36 81.65 76.54 82.26 Telco Costs ($/month/connection) 55.40 56.56 55.64 56.77 ELECTRICITY GENERATION Physical 50.11 50.89 90.46 165.46 Hydro 54.31 57.73 99.75 204.93 Geothermal (consolidated) 30.63 39.32 81.74 167.24 Wind Spot 31.34 26.87 70.96 133.12 Wind PPA 72.59 66.60 81.92 75.11 Spot Settlement of CfDs 37.23 39.96 90.40 203.14 Net Position Financial 110.91 106.88 119.93 122.02 Buy CfDs 110.91 106.88 119.93 122.02 Includes Virtual Asset Swap volumes of 76 GWh for the 3 months ended 30 June 2025 and 113 GWh for the 3 months ended 30 June 2024 and of 151 GWh for the 12 months ended 30 June 2025 and 226 GWh for the 12 months ended 30 June 2024. Also includes the Manawa CFD volumes relating to the Trustpower retail transaction since May 2022 Includes Mercury’s 65% share of Nga Awa Purua generation Includes all physical and financial buys and sells except spot customer purchases and wind ppa Includes LPG bottle connections Includes mobile VWAP is volume weighted average energy-only price sold to customers after lines, metering and fees Mass market includes residential segments and non time-of-use commercial customers Fixed-price, variable-volume (FPVV) sales to time-of-use commercial customers Excludes spot customer purchases >> OPERATING STATISTICS
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> ELECTRICITY GENERATION BY COMPANY FOR THE THREE MONTHS ENDED 31 DECEMBER Source: Transpower SCADA > SHARE OF ELECTRICITY SALES (GWh) FOR THE THREE MONTHS ENDED 31 DECEMBER (EXCLUDING CFDs) Source: Mercury Purchases and Transpower SCADA MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE 03 22% 38% 20% 8% 12% Financial Year Q2 2026MERCURY MERIDIAN ENERGY CONTACT ENERGY GENESIS ENERGY OTHER >> MARKET DATA 20% 35% 22% 10% 13% Financial Year Q2 2025 16% 84% Financial Year Q2 2026Mercury Other 17% 83% Financial Year Q2 2025
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> OTAHUHU WHOLESALE PRICE AND NATIONAL HYDRO STORAGE LEVELS Source: NZX Hydro and NZEM Pricing Manager (NZX) > TAUPO STORAGE Source: NZX Hydro MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE 04 $0 $50 $100 $150 $200 $250 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun $/MWh GWh AVERAGE NATIONAL STORAGE FY2025 NATIONAL STORAGE FY2026 NATIONAL STORAGE ROLLING 12 MONTH AVERAGE OTA SPOT PRICE AVERAGE MONTHLY OTA SPOT PRICE 0 100 200 300 400 500 600 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun GWh AVERAGE SINCE 1999 FY2025 FY2026
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> OTAHUHU ASX FUTURES SETTLEMENT PRICE Source: ASX > BENMORE ASX FUTURES SETTLEMENT PRICE Source: ASX MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE 05 $183.04 $178.18 $171.63 $173.76 $183.33 $171.36 $160.31 $187.10 $176.55 $134.99 $192.33 $183.50 $0 $50 $100 $150 $200 $250 2026 2027 2028 $/MWh Financial Year As at 31/12/2024 As at 30/06/2025 As at 30/09/2025 As at 31/12/2025 $151.36 $143.76 $137.73 $148.63 $155.65 $147.48 $141.52 $164.76 $155.73 $117.93 $169.63 $160.40 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2026 2027 2028 $/MWh Financial Year As at 31/12/2024 As at 30/06/2025 As at 30/09/2025 As at 31/12/2025
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> NATIONAL CONSUMPTION (NON-TEMPERATURE ADJUSTED) Source: Transpower Information Exchange > AUCKLAND CLIMATE SUMMARY ( ⁰C) FINANCIAL YEAR Q1 Q2 Q3 Q4 2026 12.4 17.9 - - 2025 12.5 17.1 19.7 15.3 2024 12.2 16.8 19.6 14.3 2023 12.9 17.2 19.2 15.1 2022 12.2 17.8 20.8 15.1 2021 12.3 16.9 19.5 14.8 Historical Average (since 1999) 12 16.2 19.5 14.3 Source: Met Service > MONTHLY TOTAL CONSUMER RETAIL SWITCHING (ICPs) Source: Electricity Authority MERCURY NZ LIMITED QUARTERLY OPERATIONAL UPDATE 06 8,505 8,327 8,364 8,380 8,447 8,474 1,247 1,262 1,273 1,270 997 1,259 0 2,000 4,000 6,000 8,000 10,000 12,000 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q2 2026 GWh National Consumption Tiwai Point Aluminium Smelter Consumption 10% 15% 20% 25% 30% 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 % Churn Monthly ICPs NZ MARKET CHURN (LHS) ANNUAL NZ MARKET CHURN % (RHS)