Contact Energy : FY22 Interim Results Presentation

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2022 interim results presentation

Six months ended 31 December 2021

Disclaimer and important information

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While all reasonable care has been taken in compiling this presentation, neither Contact nor any of its directors, employees, shareholders nor any other person gives any representation as to the accuracy or completeness of this information or accepts any liability for any errors or omissions.

This presentation may contain certain forward-looking statements with respect a variety of matters. All such forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies, and other factors, many of which are outside the control of Contact, which may cause the actual results or performance of Contact to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this presentation. Except as required by law or regulation (including the NZX Listing Rules and the ASX Listing Rules), Contact undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to the date of this presentation or to update or keep current any of the information contained herein. Any estimates or projections as to events that may occur in the future (including projections of revenue, expense, net income and performance) are based upon the best judgement of Contact from the information available as of the date of this presentation.

EBITDAF, free cash flow and operating free cash flow are financial measures that are "non-GAAP (generally accepted accounting practice) financial information" under

Guidance Note 2017: 'Disclosing non-GAAP financial information' published by the New Zealand Financial Markets Authority, "non-IFRS financial information" under ASIC Regulatory Guide 230: 'Disclosing non-IFRS financial information' and "non-GAAP financial measures" within the meaning of Regulation G under the U.S. Exchange Act of 1934.

Such financial information and financial measures (including EBITDAF, free cash flow and operating free cash flow) do not have standardised meanings prescribed under New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS"),

Australian Accounting Standards ("AAS") or International Financial Reporting Standards

("IFRS") and therefore, may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with NZ IFRS, AAS or IFRS accounting practice) measures.

Information regarding the usefulness, calculation and reconciliation of these measures is provided in the supporting material.

This presentation does not constitute financial or investment advice. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, Contact securities and may not be relied on in connection with any purchase of a Contact security.

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

All references to $ are New Zealand dollar unless stated otherwise.

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Agenda

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1

1H22 highlights and market update / Mike Fuge, CEO

4 - 13

2

Financial results and outlook / Dorian Devers, CFO

14 - 30

3

Supporting materials

31 - 43

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1H22 performance highlights

Mike Fuge, CEO

Summary of key financial performance measures

Strong performance despite volatile market conditions, investment ramps up

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	Six months ended	Six months ended
	31 December 2021
	31 December 2020 (1H21)
	(1H22)
EBITDAF1	$322m	↑	31% from $246m
Profit	$134m	↑	72% from $78m
Profit per share	17.2 cps	↑	58% from 10.9 cps
Operating free cash flow2	$131m	↓	17% from $157m
Operating free cash flow per share2	16.8 cps	↓	23% from 21.9 cps
Interim dividend declared	$109m	→	$109m
Interim dividend declared per share	14.0 cps	→	14.0 cps
Stay-in-business (SIB) capital	$35m	↑	13% from $31m
expenditure (cash)
Growth capital expenditure (cash)	$116m	↑	2,220% from $5m
Strategic investments (cash)	$12m	↑	71% from $7m

1. Refer to slides 39 for a definition and reconciliation of EBITDAF
2. Refer to slides 25 for a reconciliation of operating free cash flow

1H22 market

The operating conditions in 1H22 were characterised by:

• Strong Clutha hydro flows, followed by improving national hydro storage in the second quarter of FY22.
• Improved deliverability outlook for the Maui and Kupe gas fields.
• Falling wholesale spot prices.
• Material increases to gas and carbon costs.
• Elevated wholesale electricity futures as thermal costs rise and as gas uncertainty persists.

Contact responded to the conditions by:

• Supporting the market with our diverse portfolio of assets.
• Increasing renewable generation and stored fuel for future use.
• Long-termofftake agreements signed.
• Investment programme to deliver on decarbonisation strategy ramping up.

Operating earnings (EBITDAF) were up by $76m when compared to 1H21.

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