Mercury NZ (MCY) Investor Presentation summary

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.