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Mercury NZ (MCY) investor relations material

Mercury NZ Investor Presentation summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Investor Presentation summary28 Sep, 2025

Strong investor proposition and market positioning

  • Operates a diversified renewable portfolio with ~8.8 TWh generation and 906k customer connections, holding 19% generation and 25% retail electricity market share in New Zealand.

  • Delivers consistent ordinary dividend growth for 17 years, with FY26 EBITDAF guidance at $1b and FY30 aspiration of $1.15–$1.25b, implying 5–7% annualized growth.

  • Holds a BBB+ credit rating, maintains a strong balance sheet with Debt/EBITDA at 2.5x, and robust liquidity headroom to fund growth.

  • Recognized by analysts with 'Outperform' and 'Overweight' ratings, and a market capitalization of ~$9b.

  • Delivers an annualized total shareholder return of 11% since listing in 2013.

Growth strategy and renewable development

  • Accelerating renewable growth through wind and geothermal, with 1.1 TWh in construction and a pipeline targeting 3.5 TWh new generation by 2030.

  • Geothermal portfolio is a global leader, with 0.5GW/3.6TWh operational and up to 5TWh potential post-2030; NZ government selected Rotokawa for next-gen geothermal research.

  • Wind remains a focus due to cost advantage, with major projects like Kaiwera Downs II and Kaiwaikawe underway.

  • Solar and battery storage (BESS) options are being explored for future flexibility and scale.

  • Value-accretive projects in construction have lower long-run marginal costs than solar, supporting further investment.

Market environment and demand outlook

  • New Zealand's electricity market is highly renewable (>80%), competitive, and globally ranked for security, affordability, and sustainability.

  • National demand declined 2.2% in FY25 due to industrial closures and wetter conditions, but long-term growth is expected from electrification and data center expansion.

  • Declining gas reserves and electrification of transport and industry are key drivers for sustained electricity demand growth.

  • Wholesale electricity prices signal further investment as gas production declines and hydrological conditions fluctuate.

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Frequently asked questions

Mercury NZ Limited is an integrated electricity generation and retail company in New Zealand, primarily focused on renewable energy. The company generates electricity from a portfolio of renewable sources, including hydro, geothermal, and wind assets, supplying power to residential, commercial, and industrial customers. Mercury NZ is committed to sustainability and supports New Zealand’s transition to cleaner energy through its investments in renewable infrastructure and technology. In addition to electricity generation, the company offers energy management services and products to help consumers optimize energy use. The company is headquartered in Auckland, New Zealand, and its shares are listed on the NZX.

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