Quarterly Operational Update

Quarterly Operational Update for the three months ended 31 March 2024. QUARTERLY HIGHLIGHTS > STRONG YIELDS IN ALL SEGMENTS - Through mass market pricing and C&I renewals > BENEFITS OF FUEL DIVERSITY - Effective portfolio management delivering volume at high prices > CONNECTION GROWTH IN TELCO PRODUCTS - 13,000 new telco and mobile connections COMMENTARY MARKET SUMMARY Lower national inflows during the quarter resulted in higher spot electricity prices averaging $195/MWh in Auckland. Forward prices remained high averaging $180/MWh in Auckland for financial years 2024 to 2026 as at 31 March 2024. Forward price escalation reflects increased gas supply uncertainty. ABOVE AVERAGE WAIKATO INFLOWS AND INCREASED PORTFOLIO DIVERSITY SEES STRONG GENERATION OUTPUT 64th percentile inflows in the Waikato catchment over the quarter saw 1006GWh of hydro generation (214GWh, 18% lower than PCP). This was supported by 664GWh of geothermal generation (68GWh, 10% higher than PCP) and 517GWh of wind generation (196GWh, 61% higher than PCP). Despite 44th percentile inflows in the Waikato catchment during March, effective portfolio management activity across the quarter enabled a high starting storage level for Q4FY24. We are forecasting average hydrology conditions for the remainder of the year and 4,067GWh of hydro generation for the full year. STRONG YIELDS IN BOTH C&I AND MASS MARKET Commercial & Industrial yields (physical and end-user CDs) remained strong, increasing by $7/MWh (6%) to $126/MWh versus the PCP, and reflecting repricing of contract renewals into the high electricity forward curve. Mass Market yields also saw strong growth, up $9/MWh (6%) vs PCP, due to the impact of price changes and reduced acquisition and retention activity. NATIONAL DEMAND HIGHER FROM INCREASED SOUTH ISLAND IRRIGATION DEMAND National demand was 4.6% higher for the quarter relative to PCP, with normalised demand increasing 3.5%, adjusting for 2024 being a leap year. Higher demand was a largely result of increased South Island irrigation demand and PCP negatively impacted by flooding. [For Operational Statistics and Charts, please refer to the attached] ENDS Howard Thomas General Counsel and Company Secretary Mercury NZ Limited For investor relations queries, please contact: Paul Ruediger Head of Business Performance & Investor Relations 027 517 3470 investor@mercury.co.nz For media queries, please contact: Shannon Goldstone Reputation & Social Impact Lead 027 210 5337 mercurycommunications@mercury.co.nz End CA:00429678 For:MCY Type:MKTUPDTE Time:2024-04-17 08:30:28