Contact Energy : UBS Australasia Conference Presentation

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UBS Australasia Conference

November 2021

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Disclaimer and important information

This presentation may contain projections or forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties.

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Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks.

Although management may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realised.

EBITDAF, underlying profit, free cash flow and operating free cash flow are non-GAAP (generally accepted accounting practice) measures. Information regarding the usefulness, calculation and reconciliation of these measures is provided in the supporting material.

Furthermore, while all reasonable care has been taken in compiling this presentation, Contact accepts no responsibility for any errors or omissions.

This presentation does not constitute investment advice.

Numbers in the presentation have not all been rounded and might not appear to add.

All logos and brands are property of their respective owners. All company, product and service names used in this presentation are for identification purposes only.

All references to $ are New Zealand dollars

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Strategic evolution

Our previous strategy focused on efficient operations and use of capital which has delivered sector leading performance efficiency

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Profitable operations

Operating free cash flows per MWh, $/MWh FY21

Strong cash conversion

Operating free cash flows as a proportion of EBITDAF, %, 3-year average FY19-21

Reducing our cost base

Other operating costs and SIB capex, $M

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41

34

2423

67

6160

53

391

-30%

357

301	272	248	272

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Contact	Peer 1	Peer 3	Peer 2
Energy

Strong cash flow generation per unit despite higher cost thermal generation assets in our portfolio

Contact	Peer 1	Peer 3	Peer 2
Energy

Strong conversion of operating earnings into cash flow, highlighting capital discipline

FY16

FY17

FY18

FY19

FY20

FY21

Controllable CAPEX and OPEX removed through our continuous improvement program

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Strategic delivery

Our focus has delivered solid EBITDAF over the past four years despite volatile wholesale markets and rising thermal fuel costs. Contact is now positioned well for growth

only																																					582	595 587 598
EBITDAF, $M, continuing operations rolling 12 months average
	FY18									FY19												FY20										FY21
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				497	509	509	510	510	506	499	497	505	502																				496	513	529		Average
				492	479												487	491	480	476	485	492
449	459	465	468											451	445	448	446	446	451	449	454	446	457	466
																									$492m
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		Jul-18		Sep-18	Nov-18		Jan-19		Mar-19		May-19	Jul-19		Sep-19		Nov-19		Jan-20		Mar-20		May-20	Jul-20		Sep-20		Nov-20		Jan-21		Mar-21		May-21	Jul-21	Sep-21

Financial year end circled

Net debt has reduced by $800m between 30 June 2018 and 31 June 2021 positioning us well. This includes the equity raise of $400m in

February 2021 to support our capital investment programme.

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Strategic acquisitions and partnerships to build capability

Strategic acquisitions and partnerships with distinctive capabilities to meet our electrification and development targets

Strategic capability

Additionally, we have developed, acquired, or partnered with distinctive capabilities to position us for growth

Strong geothermal capabilities Geothermal generation cash-costs excluding transmission, $/MWh

Enhanced customer experiences driving highly engaged customers Retail NPS, %

only		-2% p.a.
	~30%
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-8

+43

35

14 15 14

-3

ersonal	FY15	FY16	FY17	FY18	FY19	FY20	Peer
						estimate1

Geothermal fixed costs believed to ~30% less than major peers

Operational excellence program achieved 2% p.a. cost reduction off-setting carbon price increase and inflation

1. Bas d on annual reports total generation cash-costs weighted by the relative capacity of each generation type

FY15

FY16

FY17

FY18

FY19

FY20

Digitisation of key touchpoints and growth into new adjacencies supporting rapid net promoter score (NPS) growth

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