Earnings release
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1 • Kaiwera Downs Stage 2 has reached full generation. The $486 million expansion project was completed in two years, adding 36 turbines and 155MW of installed capacity. • All 12 turbines now installed at Kaiwaikawe Wind Farm. The wind farm began generating in July, reflecting the pace and strength of our construction delivery. • Puke Kapo Hau Wind Farm is progressing to plan, with works expected to begin in November 2026. • FY27 SIB CAPEX is expected to be around $150m, with growth CAPEX expected to be between $300m and $400m. • This year also marks 25 years of partnership with Starship. Since 2001, Mercury and its customers have raised more than $20 million to support the care of children and families across New Zealand, and we are proud of what our partnership has achieved. Quarterly highlights NZX / ASX Announcement 1Q-FY27 Trading update For the three months ended 30 September 2026 14 October 2026 - Mercury Chief Executive Stew Hamilton Mercury delivers strong Q1 performance Trading Margin $445m 19% on PCP $70m on PCP YTD Trading margin up $70m to $445m Generation Volume 2,526GWh 26GWh on PCP New wind and geothermal generation (up 307GWh) offset by lower hydro volumes, down 332GWh or 24% Hydrological Inflows 2nd percentile from 71st percentile PCP YTD Inflows were at 2nd percentile compared to 71st percentile PCP Mercury delivered a strong first quarter, with trading margin of $445 million, up 19% on PCP, despite Waikato hydro inflows at the second percentile. This demonstrates the resilience of our earnings, supported by disciplined portfolio management and our diversified generation portfolio. We continue to deliver against our renewable development programme, while maintaining our focus on disciplined investment and funding growth on balance sheet within our financial guardrails. Based on our current outlook, we remain on track to deliver our FY27 EBITDAF guidance.
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1) VWAP is volume weighted average energy-only price sold to customers after lines, metering and fees 2) Geothermal (Consolidation) includes Mercury’s 65% share of Ngā Awa Pūrua generation 3) Mass market includes residential segments and non time-of-use commercial customers 4) Other Costs of Sales includes levies, incentives, connection charges and ancillaries 2 Performance summary Disclaimer: The operational and other data contained in this document is unaudited, preliminary and subject to change. This document has been prepared for information purposes only and is not intended to be relied upon as the basis for any investment decision. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information contained in this document. Recipients should make their own independent assessment and seek appropriate professional advice. Data used in this table is available in downloadable excel format on the investor section of our website VWAP Volume VWAP Volume ($/MWh) (GWh) ($/MWh) (GWh) Electricity Connections ('000 ICPs) Gas & LPG Connections ('000) Broadband Connections ('000) Mobile Connections ('000) Customers with two or more products ('000) Generation 72.0 2,526 124.7 2,552 Hydro 82.9 1,057 134.8 1,389 Geothermal (Consolidated)2 58.3 770 121.6 691 Wind Spot 33.6 295 112.6 145 Wind PPA 97.4 405 93.8 327 Network Losses (GWh) Mass Market 1,3 177.8 1,333 167.0 1,349 Commercial & Industrial 1 182.6 605 187.6 549 Physical Electricity Purchases (66.4) 2,047 (140.5) 2,009 Other Costs of Sales ($m) 4 Derivative Margin ($m) End User Sell CfD's (Strike) 146.6 344 132.5 419 End User Sell CfD's (Spot) (57.0) 344 (133.2) 419 Buy CfD's (Strike) (119.4) 502 (127.1) 667 Buy CfD's (Spot) 58.9 502 132.8 667 Portfolio Derivatives 100.2 355 15.0 399 Other Derivatives ($m) Spot Electricity Margin ($m) Spot Electricity Sales 59.1 58 149.3 60 Spot Electricity Purchases (59.0) 59 (137.9) 61 Gas Margin ($m) Gas Sales ($/GJ | Tj) 34.9 706 31.7 728 Gas Costs ($/GJ | Tj) (19.4) 706 (19.8) 728 Broadband Margin ($m) Broadband Sales ($ / month / connection) 90.4 197 85.9 183 Broadband Costs ($ / month / connection) (64.5) 197 (62.6) 183 LPG Margin ($m) Mobile Margin ($m) Trading Margin ($m) Other Income ($m) SIB CAPEX Growth CAPEX 110 111 4 (16) (12) 40 (1) (10) OPERATING INFORMATION Three months ended Three months ended 30 September 26 30 September 25 (0) 1 11 9 445 375 3 5 1 0 15 13 0 1 236 53 197 109 595 582 110 183 40 220 36 33 27 76
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Performance summary 3 Howard Thomas | General Counsel and Company Secretary | Mercury NZ Limited CONTACT ABOUT MERCURY NZ LIMITED Mercury’s generation assets produce electricity from 100% renewable sources: hydro, geothermal and wind. We’re also a retailer of electricity, gas, broadband and mobile services. We’re listed on the New Zealand Stock Exchange and the Australian Stock Exchange with the ticker symbol ‘MCY’, with foreign exempt listed status. The New Zealand Government holds a legislated minimum 51% shareholding of Mercury. For media inquiries, please contact: Catherine Morab External Communications Manager 09 282 1158 mercurycommunications@mercury.co.nz For investor relations queries, please contact: Paul Ruediger Head of Business Performance & Investor Relations 027 517 3470 investor@mercury.co.nz The Mercury Building, 33 Broadway, Newmarket 1023 PO Box 90399, Auckland 1142 120 (90) -120 -80 -40 0 40 80 120 160 Delta to average - start of the quarter Delta to average - end of the quarter GWh Hydro Storage - Delta to Average* 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Supply Demand GWh Demand and supply - YTD Hydro Geothermal Wind Spot Financials Wind PPA Mass Market C&I Financials Wind PPA End User CfD Losses * Average since July 1999