Slide 1: Mercury Full Year Results FY25
BETTER BUILDING BRIGHTER ercur STEW HAMILTON RICHARD HOPKINS PAUL RUEDIGER 19 August 2025 Chief Executive Chief Financial Officer Head of Business Performance & Investor Relations
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Mercury NZ Limited and its group of companies (“Company”) for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. Information in this presentation has been prepared by the C
Slide 3: Why Mercury - Strong Investor Proposition
WHY MERCURY- STRONG INVESTOR PROPOSITION Superior Growth Attractive Portfolio Opportunities Returns Diversified renewable generation with superior Best pipeline of wind prospects, exciting Progressive dividends and a strong balance asset location and hydro river peaking that geothermal options sheet
Slide 4: FY25 business performance and major events
FY25 business performance Steady performance in challenging conditions: and major events Total renewable generation of 7.9 TWh, 10% lower than PCP primarily from dry FY25 EBITDAF conditions. result of $786m. AI powered hydro and station upgrades lifts normalised total generation to 8.8 TWh. Ordinary
Slide 5: Strategy refresh: focus on priorities that will deliver value
STRATEGY REFRESH: FOCUS ON PRIORITIES THAT WILL DELIVER VALUE FY35 FY30 ASPIRATIONS PRIORITIES STRATEGIC OBJECTIVES KEY INITIATIVES KEY RESULTS :w: Mercur~ Deliver more reliable and Construct new Plan to deliver 3.5TWh of KAITIAKITANGA renewables new generation by 2030 renewable energy Generation St
Slide 6: A Capable and Multi-Disciplined Executive Team
A CAPABLE AND MULTI-DISCIPLINED EXECUTIVE TEAM © MERCURY FULL YEAR RESULTS FY25 STEW HAMILTON CHIEF EXECUTIVE. Appointed CEO in 2024; joined Mercury in 2021 as EGM, Generation. Former CEO of NZ Aluminium Smelters; 25+ years in industrial energy across multiple continents Chemical Engineer with an MB
Slide 7: Nga Tangata | Our People
NGA TANGATA I OUR PEOPLE HEALTH AND SAFETY Health, safety and wellbeing 1.5 3 • Moving closer towards our target state of Safety Citizenship, this year we introduced a renewed focus on wellbeing, supporting improvement of our contractor performance and creating leaders as coaches across our business
Slide 8: Investing in Growth Through the Cycle
INVESTING IN GROWTH THROUGH THE CYCLE 1,228 FY2024 1153 FY2025 877 786 612 483 385 396 290 347 325 337 142 138 154 1 Trading Margin Operating Expenditure EBITDAF NPAT Operating Cash Flow Stay-In-Business Growth Investment Declared Ordinary Capital Expenditure Dividend FY25 FINANCIAL PERFORMANCE * Gr
Slide 9: Steady Performance in Challenging Conditions
STEADY PERFORMANCE IN CHALLENGING CONDITIONS EBITDAF bridge (FY24 to FY25) 900 Decrease Ml Increase 800 (159) 5 —_ (5) (1) Ca $ 700 A 877 2 600 786 500 400 FY24 Generation Mass Market C&l Yields Telco Sales Price Other Operating FY25 volume Yields incorne Expenses * Generation volume down 0.9TWh fro
Slide 10: Critical Areas of Focus for Future Success
CRITICAL AREAS OF FOCUS FOR FUTURE OPERATING EXPENSES SUCCESS 450 Operating Expenses 400 c:::::(~j= • Operating costs increased by $11 million primarily due to increases in I (10) I I 15 I I 9 I asset maintenance costs and organisation change costs to enable future cost saving .-.. 350 E -{/}- • The
Slide 11: Enhancing Our Assets
ENHANCING OUR ASSETS STAY-IN-BUSINESS CAPEX Increases in hydro asset spend offset integration reductions • Stay-in-Business drilling decreased from resources shifted to Nga Tamariki drilling for OECS (Growth Capex) • Major hydro resilience projects include strengthening Arapuni -E I (17) I 10 10 I 1
Slide 12: Hydro Storage and Gas Availability Impact on Electricity Prices
Remaining 2P Gas Reserves Hydro Daily NZ Storage HYDRO STORAGE AND GAS 2,500 5,000 AVAILABILITY IMPACT ON 2,000 4,000 ELECTRICITY PRICES 1,500 ..s::. ~ C) 3,000 2 2,000 1,000 1,000 Increased gas price volatility on declining 500 availability ...._ Ol +- +- > u c ....0 • Declining gas reserves contri
Slide 13: Hydro Storage Managed Through Highly Volatile FY25
HYDRO STORAGE MANAGED THROUGH HIGHLY VOLATILE FY25 LAKE TAUPO STORAGE (since 1 Jul1999) MinI Max - Avg --·Lake Taupo MCL - FY24 FY25 600 500 400 ~ ~ 300 (.!) 200 100 0 Month End Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 5 Hydro Generation - -7 -91 -116 -54 -35 -59 -60 -77 -54 -24 -61 2
Slide 14: Long-Term Deals and Robust Sales Pipeline Drive Renewables Investment
LONG-TERM DEALS AND ROBUST SALES PIPELINE DRIVE RENEWABLES INVESTMENT NZ Aluminium Smelter long-term supply agreement operational from Jan 2025 • A 20-year CFD (contract for difference) signed in May 2024 took effect from Jan 2025. Initial baseload volume of 50 MW will step up to 75MW in 2027 Provid
Slide 15: Karapiro Rehabilitation Update and the Digital River
- KARAPIRO REHABILITATION UPDATE AND THE DIGITAL RIVER LIFT AVERAGE GENERATION • The Karapiro rehabilitation project is a $90 million upgrade to the station 1 originally commissioned in 1946 • The project will increase station capacity from 96MW to 112.5MW with an annual output increase of +32 GWh/y
Slide 16: Our $1B & 1.1 TWh of Construction Projects Are on Time and on Budget
OUR $18 & 1.1 TWH OF CONSTRUCTION PROJECTS ARE ON TIME AND ON BUDGET NGA TAMARIKI OEC5 GEO KAIWERA DOWNS S2WIND KAIWAIKAWE WIND • Baseload gen adds energy & supports firming • Hedged and supporting Tiwai's long-term • Northland location commitment to NZ • Leverages existing reservoir and geothermal
Slide 17: Significant Strides in Reducing Opex per Connection
SIGNIFICANT STRIDES IN REDUCING OPEX PER CONNECTION Total 901k connections! across all products at full year, with significant inroads in reducing OPEX per connection Key messages: * Total connections grew by ~40k, representing 5% growth relative to RP * Energy connections remained flat, while telco
Slide 18: Mercury's Contribution to the Energy Trilemma
MERCURY'S CONTRIBUTION TO THE ENERGY TRILEMMA Sustainability MERCURY FULL YEAR RESULTS FY25 Security (@) + Zero post-pay disconnections for customers in hardship * Material support for social retailers Nau Mai Ra and Toast Electric * Commercial & Industrial milestones — long-term contracts with New
Slide 19: Committed to a Fair and Equitable Energy Transition
COMMITTED TO A FAIR AND EQUITABLE ENERGY TRANSITION MERCURY RESIDENTIAL POST PAY CREDIT DISCONNECTIONS JAN 20- JUN 25 Delivering greater clarity. 2000 1808 control and care • Clarity in cost through real-time usage 1500 1347 insights that help customers understand 1234 and manage what they are spend
Slide 20: Policy Solutions to the Transition Challenges
POLICY SOLUTIONS TO THE TRANSITION CHALLENGES Firming generation needed to keep lights on Declining gas supplies and New Zealand's dry year problem have exacerbated the need for more firming generation to ensure secure supply when the rain doesn’t fall, the wind doesn't blow and sun doesn’t shine. >
Slide 21: We Are Planning to Deliver 3.5 TWh by 2030
WE ARE PLANNING TO DELIVER 3.5 TWH BY 2030 4.0 - • We're leveraging our strength in wind I f- HIGHER CONFIDENCE OPTIONS __. f- OPTIONALITY MAINTAINED__. geo and our advantaged project pipeline PLAN TO DELIVER 3.5 TWh BY 2030 • 'V35% is being delivered through 3.5- I ---------------------------------
Slide 22: Our Firming Potential Is Sufficient to Enable Our Growth Ambitions
OUR FIRMING POTENTIAL IS SUFFICIENT TO ENABLE OUR GROWTH AMBITIONS INDICATIVE FY30 CAPACITY REQUIREMENTS VS. OPTIONS 700- Renewable diversity ✓ Geographic diversity of wind developments ✓ Geothermal features in Generation Development 600- pipeline ✓ Hydro refurbishment programme enhancing capacity 5
Slide 23: We Are Evaluating Post-2030 Geothermal Potential - Nga Tamariki Example
WE ARE EVALUATING POST-2030 NGA TAMARIKI EXAMPLE GEOTHERMAL POTENTIAL High quality resource with proven phased development history and potential for expansion Nga Tamariki Geothermal Field Pr Deep temperature contours Mokai @ Nga y= = } @ MCY & Partner Reservoirs Pa . 2 @ MCY & Partner land interest
Slide 24: Strong Balance Sheet to Support Growth
STRONG BALANCE SHEET TO SUPPORT GROWTH Capital structure well positioned for growth Net Debt and Debt/EBITDA • Mercury targets Debt I EBITDA between 2x - BBB+ Range • Net Debt [::J liquidity Headroom 3 -Debt/EBITDA 3x after adjusting for S&P Global treatment1 3 consistent with our BBB+ rating • Debt
Slide 25: EBITDAF Bridge
• • EBITDAF BRIDGE – Angelika/Robbie • • • • • • • •
Slide 26: Stew Hamilton, Chief Executive Officer
STEW HAMILTON CHIEF EXECUTIVE OFFICER OFFICER
Slide 27: Mercury's Long Term Track Record
MERCURY'S LONG TERM TRACK RECORD EBITDAF OPEX = Operating expenditure DISTRIBUTIONS — hare buyback = Special dividend 1,000 500 500 Final dividend Interim dividend 800 400 400 600 € — 300 & 400 % 200 200 100 0 0 of e@ so a YQ 8 8 or © 2 SHA mM Tw Ninety wk Da OR ND Te 2: eee 8 as 8 x Eee BRAN K Pete
Slide 28: Long Term Industry Trends
LONG TERM INDUSTRY TRENDS 2024 SECTOR EARNINGS DEMAND AND GENERATION CAPACITY CARBON EMISSIONS — Demand 4 50 Max. Generation Capacity (RHS)_¢ 10.5 7,000 3 CAGR: 3.0% 40 100 6,000 a « 5,000 2 z 30 95% & 4,000 £ 20 9.0 3,000 a id “ 2,000 | 10 85 , 1,000 of of 1 8.0 of 22 ®e oH Ye 8 22be een 8 8 8 e228
Slide 29: Commercial - Diversified Funding Profile
ARUMONI | COMMERCIAL — DIVERSIFIED FUNDING PROFILE = Commercial Paper Undrawn Bank Facilities Undrawn Rolling Bank Facilities $700 = Drawn Bank Facilities mUS Private Placement = AUD Green Bonds Capital Bonds Domestic Wholesale Green Bonds Retail Green Bonds $600 $500 £ $400 $300 $200 $100 $ 2026 20
Slide 30: Demand Lower Due to Industrial Response, Wetter Conditions
DEMAND LOWER DUE TO 18,000 DEMAND INDUSTRIAL RESPONSE, 16,000 mFY2021 « FY2022 mFY2023 FY2024 = FY2025 WETTER CONDITIONS "4000 12,000 = 10,000 6 8,000 Key messages 6,000 * National demand down 2.2%! 4000 (unadjusted 3.2%) versus FY24, with ‘ industrial and irrigation-linked sector 2,000 l | demand d
Slide 31: Non-GAAP Measures
NON-GAAP MEASURES * EBITDAF (or Operating Earnings) is earnings before net interest expense, tax expense, depreciation, amortisation, change in the fair value of financial instruments, gain on sale and impairments * Energy Margin is sales from electricity generation and sales of electricity and gas
Slide 32: Mercury
Mercury