NZ Windfarms : FY23 Investor Presentation

FullHa f Year Results Presentattion

For the period ending 301 December 2021 June 2023

Key highlights

• Successful TRH Repower fast-track resource consent delivered. The Company secured fast-trackconsents to potentially repower the Te Rere Hau wind farm with 30 new-larger-threebladed turbines. The Company is currently advancing confidential commercial negotiations for the repower. Repowering the Te Rere Hau wind farm could position it as an onshore wind farm with an estimated capacity factor between 48% to 51% (compared to our current fleet capacity factor of ~25%). Average annual energy production could increase substantially from 100 to 120 GWh to between 530 GWh and 570 GWh.
• Successful fast-track resource consent referral - Aokautere Extension Project. We have identified an opportunity for further expansion of the repowered wind farm with nine additional turbines through the Aokautere Extension project. This could add up to an additional 170 GWh to the production potential of the repowered wind farm (i.e. up to 740 GWh in total). This project has been successfully referred to the fast-track consenting pathway, and we are currently progressing the resource consent application. Our intention is to submit this fast-trackconsent application by the end of October 2023, with a consenting decision possible in Q1 2024. If successful, this will be incorporated into the repower.
• We have secured land rights to build an alternative higher capacity grid connection option. We are in advanced discussions with Transpower on the grid connection requirements.
• Generation: 98.2 GWh (pcp: 100.2 GWh)
• Average Wind Speed: 9.0 m/s (pcp: 9.1 m/s)
• Availability: 95.5% (pcp: 97.3%)
• Lost time injuries (LTI): Zero (pcp: 1 x LTI)
• Debt restructured to a cash offset facility (similar to revolving credit facility).

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Key Financial Metrics

• Net Electricity Revenue(1): $9.7m (pcp: $10.7m)
• Net Electricity Price GWAP(2): $98.51 per MWh (pcp: $107.11 per MWh)
• EBITDAF(3): $4.6m (pcp: $6.4m)
• NPAT: -$5.3m (pcp: $5.2m)
• Operating Cash Flow: $3.7m (pcp: $5.9m)
• Our operational performance has benefited from our VVFPA (Variable Volume Fixed Price Agreement) programme which partially shielded the Company from the impact of difficult market conditions. Realised derivative gains of $4.18m (2022: realised loss of $0.05m)
• TRH operating expenditure(4) increased 14.2% to $5.1m (2022: $4.4m). Notwithstanding tight cost discipline the Company was not immune to the material inflationary environment.
• Forward EBITDAF Guidance FY2024: We anticipate EBITDAF in the range of $3.0m to $4.5m. The revision is based on a higher confidence full year generation estimate of 106 GWh (previously 108.6 GWh) and an estimated blended electricity price of $92.50 per MWh which incorporates VVFPA prices levels, estimated spot prices, hedge ratios and seasonally adjusted generation profiles.

1. Net Electricity Revenue - Electricity sales revenue less realised gain (loss) on derivatives.
2. Net Generation Weighted Average Price = (electricity sales + gain on realised derivatives - loss on realised derivatives) / generation
3. EBITDAF - Earnings before interest, tax, depreciation, amortisation, and fair value adjustments. EBITDAF is a non-GAAP measurement. The Company utilises EBITDAF to provide shareholders with a view of underlying operational earnings on a like-for-like basis over time. Please note NZ Windfarms definition may be different to others in the market. Please refer to the EBITDAF waterfall chart for a reconciliation of EBITDAF to the financial statements.
4. TRH Operating Expenditure = Total Operating Expenses - impairments - loss on property, plant and equipment - loss on derivatives - repowering consultation expenses (non-recurring expenses)

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About NZ Windfarms Ltd

Snapshot

• We harness the power of wind to generate clean and renewable electricity.
• Well positioned to support the transition to a low emissions economy.
• Te Rere Hau is a world class wind site - IEC Class 1A certification.
• Independent wholesale wind generator.
• Experienced board and management team.
• 91 x 500kW turbines, 45.5 MW nameplate capacity.
• 30m hub height, 33m rotor diameter.
• Annual community engagement and liaison meetings.
• The wind farm received resource consent in 2005 with turbines installed in four stages with the final stage being completed in 2011.
• All maintenance carried out in-house.

Asset base

• 91 wind turbines (~50% of fixed asset base).
• 56 consented but undeveloped turbine sites.
• 324 hectare freehold farm.
• Land access agreements for 32 turbines (Eastern extension).
• Workshop and office buildings.
• Extensive spares, tools and inventory.
• Underground connection system:
  o Connects each turbine to the Te Rere Hau switchyard.
  o 2 x 33kV transmission lines that connect Te Rere Hau switchyard to Mercury's Tararua Wind Farm grid injection point and T3 sub station.
  o Permits injection up to 48.5MW into the national grid.

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Successful TRH Repower fast-track consent delivered

• This year has been significant for the Company in enhancing future shareholder value. We have progressed our strategy, unlocking growth potential through successfully gaining consents for repowering Te Rere Hau.
• Repowering the Te Rere Hau wind farm could position it as an onshore wind farm with an estimated capacity factor between 48% to 51% (compared to our current fleet capacity factor of ~25%).
• Average annual energy production could increase substantially from 100 to 120 GWh to between 530 GWh and 570 GWh.
• This would enable the Company to unlock the full potential of its world-classwind resource and represents a major source of unrecognised value.
• The Company is currently advancing confidential commercial negotiations for the repower projects
• While the consent for repowering represents an important step, final decisions on funding structures have yet to be made and will be reached in consultation with shareholders.

• It is essential to recognise that this project focuses on repowering, setting it apart from new greenfield projects. With the site already functioning as a wind farm, our familiarity with its geotechnical intricacies, wind resource, pre- existing road infrastructure, and reusable assets all provide a competitive edge in terms of cost and time. These factors also reduce construction and developmental risks compared to starting greenfield projects.
• We are in advanced discussions with Transpower on the grid connection requirements of a new and higher capacity grid connection as part of pursuing grid connection options to repower and extend the TRH wind farm.
• The land rights for the transmission corridor have been secured and are conditional on the final grid connection study outcome.

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