Mercury Nz Ltd. · NZX:MCY
Mercury Nz — FY2026 Earnings Presentation
41 slides from Mercury Nz's earnings presentation, Aug 18, 2026
Slide 1: Full Year Results FY26
FULL YEAR RESULTS FY26 18 August 2026 STEW HAMILTON RICHARD HOPKINS PAUL RUEDIGER 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: Strong FY26 performance supports record renewable investment
STRONG FY26 PERFORMANCE SUPPORTS RECORD RENEWABLE INVESTMENT • EBITDAF of $1,068m, up 36% - driven by higher renewable generation and cost discipline Resilient • OPEX held at $370m target, down $26m on FY25 and down 10.2% in real terms, reflecting focused operational execution earnings • 41% of cust
Slide 4: Strong FY26 delivery – all guidance metrics met or beaten
STRONG FY26 DELIVERY – ALL GUIDANCE METRICS MET OR BEATEN FY26 EBITDAF FY26 Operating Cashflow FY26 Dividend $1,068m $762m 27 cps Initial guidance: $1,000m 18th consecutive year of growth Up 36% on FY25 $786m +13% on FY25 FY26 normalised $1,050m, FY27 guidance $1,075m Up 58% on FY25 $483m FY27 guida
Slide 5: Strong earnings converted to cash while funding growth and dividends
STRONG EARNINGS CONVERTED TO CASH WHILE FUNDING GROWTH AND DIVIDENDS Higher generation and disciplined operational execution lifts performance FY26 EBITDAF PERFORMANCE • Higher EBITDAF was supported by higher hydro generation, new 1,200 geothermal and wind generation and disciplined cost management
Slide 6: Leading operational efficiencies and cost discipline
LEADING OPERATIONAL EFFICIENCIES AND COST DISCIPLINE Operating Expenses OPERATING EXPENSES • Our focus on operational efficiencies and cost discipline has 400 resulted in $26m or 6.6% lower operating expenses which is a (7) (6) reduction of 10.2% in real terms (10) • Generation and Customer segments
Slide 7: Stay-in-business investment protects reliability and long-term cashflow
STAY-IN-BUSINESS INVESTMENT PROTECTS RELIABILITY AND LONG-TERM CASHFLOW STAY-IN-BUSINESS CAPEX Higher major hydro asset spend offsetting 200 conclusion of drilling campaign • We assess asset condition and consequence over a multi-year 150 (11) 1 26 horizon with work ranked by criticality and then bu
Slide 8: Execution creates value
EXECUTION CREATES VALUE NGĀ TAMARIKI GEOTHERMAL STATION
Slide 9: Operational delivery – three flagship projects tracking on time and on budget
OPERATIONAL DELIVERY – THREE FLAGSHIP PROJECTS TRACKING ON TIME AND ON BUDGET OEC5 GEOTHERMAL KAIWERA DOWNS -STAGE 2 WIND FARM KAIWAIKAWE WIND FARM FID MAJOR EQUIP. STARTUP COD FID TURBINE STARTUP COD FID TURBINE STARTUP COD DELIVERY DELIVERY DELIVERY Q4 FY24 Q3 FY25 H2 FY26 H2 FY26 Q4 FY24 H1 FY26
Slide 10: More value per customer at lower cost-to-serve
MORE VALUE PER CUSTOMER AT LOWER COST-TO-SERVE FOUR YEARS OF COMPOUNDING BUNDLING GROWTH Scale, platform improvements and operating discipline continue to 1,200 45% 40.9% lift productivity 38.3% • 41% of customers now hold two or more products, up from 38% ICPs and connections '000s 32.7% 33.8% 1,00
Slide 11: El Niño – a different risk profile to FY25
EL NIÑO – A DIFFERENT RISK PROFILE TO FY25 1 What is forecast 2 Why FY25 is not the comparison • Earth Sciences NZ (NIWA) declared El Niño in FY26, with peak conditions expected • National hydro storage at 141% of historical average as at 31 July over the 2026-27 austral summer1 • FY25 pressure refl
Slide 12: A portfolio built for resilience
A PORTFOLIO BUILT FOR RESILIENCE Resilient earnings across a range of long-term market, demand and hydrological conditions 87% OF FY30 GENERATION COVERED BY RETAIL AND CONTRACTED DEMAND PORTFOLIO RESPONSE TO KEY RISKS FY30 87% 13% Avg. C&I contract duration of ~5 years; long-term contracting limits
Slide 13: Next growth cycle
NEXT GROWTH CYCLE KAIWERA DOWNS WIND FARM
Slide 14: Visible demand supports staged investment
VISIBLE DEMAND SUPPORTS STAGED INVESTMENT • Visible pathways to approximately 4TWh of demand growth ELECTRICITY DEMAND by 2030 (TWh, Calendar Year) • Industrial electrification is the most established source 54 Aligns with BCG 'High', Transpower 'Aotearoa Intelligence' and MBIE 52 52 'Reference' sce
Slide 15: Repeatable platforms reduce execution risk and improve capital efficiency
REPEATABLE PLATFORMS REDUCE EXECUTION RISK AND IMPROVE CAPITAL EFFICIENCY 14% OEC5, KD2 & Turitea Sth & KD1 Mercury’s geothermal and wind share of national generation (rolling 12 months) Turitea N & Wind Farms Kaiwaikawe 12% Ngā Tamariki Waipipi Wind Geothermal Station Farms 10% Mahinerangi 8% Ngā A
Slide 16: Near-term development pipeline – all investments remain staged and gated
NEAR-TERM DEVELOPMENT PIPELINE – ALL INVESTMENTS REMAIN STAGED AND GATED PUKE KAPO HAU WIND IG4 – FID GEOTHERMAL EXPANSION IG1 - Feasibility • Capacity / output: 192MW / 533GWh • Underpinned by appraisal drilling targeting brownfield sites • See next slide 1 4 • Drilling rig secured ready for drilli
Slide 17: FID achieved at Puke Kapo Hau – WindPlatform scale continues to drive value
FID ACHIEVED AT PUKE KAPO HAU – WINDPLATFORM SCALE CONTINUES TO DRIVE VALUE • Puke Kapo Hau is the Stage 2 expansion of the Mahinerangi Wind Farm, located west of Dunedin. Together this is expected to be the Project Specification (at FID) Puke Kapo Hau Kaiwera Downs Stage 2 Kaiwaikawe largest wind f
Slide 18: Scaling the GeoPlatform: next phase of growth
SCALING THE GEOPLATFORM: NEXT PHASE OF GROWTH 5 TWh 1 TWh $75m 2030 Geo Platform of development projects Board approved appraisal target for first pipeline are in feasibility drilling in FY27-FY28 generation Planning commenced for three well appraisal drilling campaign. LEADING GROWTH PLATFORM Procu
Slide 19: Datagrid - investment creates a pathway to long-term demand growth
DATAGRID - INVESTMENT CREATES A PATHWAY TO LONG-TERM DEMAND GROWTH 1 Current Commitment 2 Strategic value • NZ$53m (US$30m) equity investment, from existing facilities • Potentially material long-term electricity demand • 12.7% minority stake in Datagrid Holding Group NZ • Electricity sales and port
Slide 20: Our geo and wind platforms underpin the delivery of NZ's leading pipeline
OUR GEO AND WIND PLATFORMS UNDERPIN THE DELIVERY OF NZ’S LEADING PIPELINE HOW THE PIPELINE CONVERTS TO EARNINGS KEY MESSAGE Options become projects as demand firms and returns clear our hurdles A PROVEN BUILDER WITH A STRONG PIPELINE 1. PROVEN 2. COMMITTED 3. OPTIONS Mercury’s leading pipeline allow
Slide 21: Capital allocation
CAPITAL ALLOCATION
Slide 22: Capital allocation framework governs every investment decision
CAPITAL ALLOCATION FRAMEWORK GOVERNS EVERY INVESTMENT DECISION VALUE TIMING RISK FUNDING Must clear return hurdles Sequenced through Assessed for construction, Delivered within balance and be earnings accretive investment gates IG1–IG4 market and technology risk sheet guardrails VALUE TIMING • Inves
Slide 23: Balance sheet capacity supports the next growth cycle
BALANCE SHEET CAPACITY SUPPORTS THE NEXT GROWTH CYCLE NET DEBT AND DEBT/EBITDA1 Capital structure well positioned for growth 3 • We target Debt/EBITDA between 2x – 3x after adjusting for S&P Global treatment, consistent with our BBB+ rating Net Debt ($b) Debt/EBITDA • Debt/EBITDA1 decreased to 2.0x
Slide 24: 18 years of resilient dividend growth
18 YEARS OF RESILIENT DIVIDEND GROWTH DIVIDENDS PAYOUT & POLICY SETTINGS 40 • FY26 ordinary dividend of 27 cents per share and FY27 dividend 85% guidance of 29 cents per share • Fully imputed final dividend of 17 cents per share, up 13% relative to 30 70% 24 27 Cents per share PCP. Record date is 3
Slide 25: Reviewing dividend settings as earnings and cashflow evolve
REVIEWING DIVIDEND SETTINGS AS EARNINGS AND CASHFLOW EVOLVE Mercury will review its dividend policy and broader capital allocation settings over the next 12 months as earnings, cashflow and investment requirements evolve 1 Why review now 2 What the review will assess 3 What will not change • Earning
Slide 26: Future outlook
FUTURE OUTLOOK
Slide 27: Energy investment remains essential - predictable market settings matter
ENERGY INVESTMENT REMAINS ESSENTIAL - PREDICTABLE MARKET SETTINGS MATTER INVESTOR TAKEAWAY POLICY SIGNAL INVESTOR IMPLICATION MERCURY RESPONSE Attention on predictable long- BUILD SETTINGS Progress wind/geothermal options term settings, as considerable Better pathway to project through staged develo
Slide 28: FY27 EBITDAF guidance of $1,075m
FY27 EBITDAF GUIDANCE OF $1,075M - DELIVERED GENERATION DRIVES UNDERLYING GROWTH 10 (18) • FY27 EBITDAF guidance of $1,075m on 33 4.1TWh of hydro generation subject to 0 1,075 1,068 (18) hydrological volatility, wholesale market conditions and any material adverse 1,050 events, significant one-off e
Slide 29: Increased confidence lifts FY30 EBITDAF target to $1.20b-$1.25b
INCREASED CONFIDENCE LIFTS FY30 EBITDAF TARGET TO $1.20B-$1.25B CAGR 3-5% Targeting FY30 EBITDAF of $1.20b to $1.25b 1200/1250 50 60 Increased confidence in delivered generation and the development (60) 50 100 pathway supports lifting the lower end of the FY30 target to $1.20b • ~1.1TWh of recently
Slide 30: Delivery today. Disciplined growth tomorrow
DELIVERY TODAY. DISCIPLINED GROWTH TOMORROW FY26 Delivery Higher Earnings Base Staged Growth Options • EBITDAF of $1,068m • Superior portfolio with two leading • Investment staged against visible • Operating cashflow of $762m diversified growth platforms demand • OPEX delivered at $370m • 1.1TWh of
Slide 31: Q&A
STEW HAMILTON CHIEF EXECUTIVE RICHARD HOPKINS CHIEF FINANCIAL OFFICER Q&A
Slide 32: Appendix
APPENDIX
Slide 33: A capable and multi-disciplined executive team
A CAPABLE AND MULTI-DISCIPLINED EXECUTIVE TEAM STEW HAMILTON RICHARD HOPKINS MICHELE MAUGER SURAIYA PHILLIMORE-SMITH CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER CHIEF PEOPLE OFFICER CHIEF CUSTOMER OFFICER • Appointed CEO in 2024; joined Mercury in 2021 • 25+ years experience, last 12 years as CFO • Join
Slide 34: Delivering on our strategic objectives
DELIVERING ON OUR STRATEGIC OBJECTIVES This table shows how we have performed against our strategic objectives set in FY26 MERCURY FULL YEAR RESULTS FY26 34
Slide 35: Ngā Tāngata | Our people
NGĀ TĀNGATA | OUR PEOPLE Health, safety and wellbeing HEALTH AND SAFETY • Mercury continued to progress towards Safety Citizenship, the highest level of its safety maturity within the model, where safety is shared, visible and embedded in 1.5 3 everyday work • This is supported by our Safety Intelli
Slide 36: Strong Waikato catchment inflows led to 4.5TWh of hydro generation
STRONG WAIKATO CATCHMENT INFLOWS LED TO 4.5TWH OF HYDRO GENERATION LAKE TAUPŌ STORAGE (ave. since 1 Jul 1999) Min / Max Avg Lake Taupo MCL 1 FY26 FY25 600 400 GWh 200 0 Month End Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Hydro Generation - 160 82 -36 29 69 -47 -71 7 53 59 84 22 6 Delta to
Slide 37: Building towards 2035
BUILDING TOWARDS 2035 3.5TWh target supported by staged development options +1.0 5.0 Generation output (TWh) +0.5 +1.02 3.5 +1.5 TWh +0.5 +0.0 +0.2 (100MW Capacity) Third party solar optionality +0.53 1.2 Mercury national demand growth scenario assumes 5TWh growth from 2030 to 2035. Generation advan
Slide 38: Mercury's long term track record
MERCURY’S LONG TERM TRACK RECORD EBITDAF OPEX DISTRIBUTIONS Share buyback Special dividend Operating expenditure 1,200 500 Final dividend Interim dividend 500 1,000 400 400 800 300 300 $m 600 $m $m 1068 400 200 200 200 100 100 0 0 0 2017 2018 2019 2021 2020 2022 2023 2024 2025 2026 2017 2018 2019 20
Slide 39: Long term industry trends
LONG TERM INDUSTRY TRENDS SECTOR EARNINGS DEMAND AND GENERATION CAPACITY CARBON EMISSIONS Demand 4 50 Max. Generation Capacity (RHS) 11.5 7,000 CAGR: 2.1% 11.0 6,000 3 40 10.5 EBITDAF ($b) 5,000 TWh 30 GW kT CO2e 10.0 4,000 2 20 9.5 3,000 1 9.0 2,000 10 8.5 1,000 0 0 8.0 0 2016 2017 2018 2019 2021 2
Slide 40: Demand rebounds as Tiwai resumes operations, dairy electrification continues
DEMAND REBOUNDS AS TIWAI RESUMES OPERATIONS, DAIRY ELECTRIFICATION CONTINUES DEMAND Key messages 18,000 FY2022 FY2023 FY2024 FY2025 FY2026 • National demand up 2.2%1 (unadjusted 2.3%) versus 16,000 FY25, with Tiwai demand returning after demand 14,000 response exercise and increases in dairy sector
Slide 41: Mercury
Mercury