Contact Energy Limited · NZX:CEN
Contact Energy — FY2025 Earnings Presentation
55 slides from Contact Energy's earnings presentation, Aug 18, 2025
Slide 1: 2025 full year results presentation
2025 full year results presentation Twelve months ended 30 June 2025 18 August 2025 1
Slide 2: Disclaimer and important information
Disclaimer and important information This presentation contains summary information and statements about Contact and its EBITDAF, free cash flow, operating free cash flow and return on invested capital are businesses and activities as at the date of this presentation. The information is not held fin
Slide 3: Agenda
Agenda 1 FY25 highlights / Mike Fuge, CEO 4-8 2 Market update / Mike Fuge, CEO 9 - 15 3 Financial results and outlook / Matt Forbes, CFO 16 - 29 3 4 Update on Manawa and strategic delivery / Mike Fuge, CEO 30 - 39 5 3 Supporting materials 40 - 55 3
Slide 4: FY25 highlights
FY25 highlights Delivering financial Delivering transformative Delivering renewable performance portfolio change energy growth Stations online +17% EBITDAF (underlying) $774m up $111m YoY Tauhara Te Huka 3 174MW 51MW 1.45TWh 0.43TWh +13% NPAT (underlying) $261m up $31m YoY Transaction completed $1.1
Slide 5: Refreshed leadership, delivering growth
Refreshed leadership, delivering growth Leadership team refreshed to match the scale, complexity and ambition of the business Mike Fuge Chris Abbott Jan Bibby Chief Executive Chief Corporate Chief People Officer Affairs Officer Experience Officer Changes Matt Bolton John Clark (During 2H FY25) Manaw
Slide 6: Summary of key financial performance measures
Summary of key financial performance measures Building for the future, ready for today Performance powered by geothermal expansion and resilient risk management Market Twelve months ended Twelve months ended 30 30 June 2025 (FY25) June 2024 (FY24) FY25 was shaped by challenging market dynamics: Cont
Slide 7: Delivering on the plan
Strategy delivery Delivering on the plan Impressive delivery of the FY25 strategic targets outlined at the start of the year Strategic theme FY25 operational plan FY25 achieved ▪ New demand facilitated since FY21 to New demand facilitated and contracted since FY21 ~230MW (88MW online) up from 105MW.
Slide 8: Renewable projects under construction
Strategy delivery Renewable projects under construction Contact is currently leading the build of ~$1.1bn in renewable infrastructure across New Zealand Te Mihi Stage 2 geothermal Glenbrook-Ohurua BESS1 Kōwhai Park solar farm4 Key facts & progress updates Net capacity / annual generation 101MW / 0.8
Slide 9: Market update
Market update 9
Slide 10: National electricity demand
Market demand National electricity demand NZ electricity demand down ~1% even when normalised for NZAS demand response National electricity demand in FY25 reflected the Regional National electricity demand (TWh) impact of extreme weather and challenging conditions. (0%) change (%) FY25 vs FY24 Overa
Slide 11: Near term demand outlook is positive
Market demand Near term demand outlook is positive Committed new load and consistent residential progression accounts for more than half of market growth expectations in the next 5 years National demand growth over time1 Estimates of future demand by sector3 3.3 48 Actual demand data (EMI) 47 Contra
Slide 12: Two historically significant dry periods
Fuel supply Two historically significant dry periods Lower hydro output offset by new geothermal production and lower demand Generation by type (TWh) Supply Commentary – National hydro storage Generation Mix FY25 44.1 • Hydro generation was down 1H24 2H24 1H25 2H25 43.1 42.9 Gas 3.9 ~10% on FY24, 9%
Slide 13: Volatile pricing driven by hydro and gas availability
Wholesale market Volatile pricing driven by hydro and gas availability Current gas deliverability forecasts point to continued steep decline Net domestic gas production Wholesale and futures electricity pricing ($/MWh) Average monthly gas PJ 2024 2025 production down 20% 14 year-on-year Long-dated f
Slide 14: Retail strategic value outweighs margin headwinds
Retail electricity market Retail strategic value outweighs margin headwinds Medium-term cost pressures not deterring long-term positioning or competition Change in retail customer electricity connections (000s) 30 June 2023 – 30 June 2025 2yr ICP delta (1000s) 2yr % change Retail Electricity Market
Slide 15: Responding to the energy challenges that matter
Responding to the energy challenges that matter Contact is investing in renewables, flexible storage, and demand response - guided by clear market signals and long-term national priorities; These actions reflect strong alignment with government objectives and reinforce the value of stable, predictab
Slide 16: Financial results and outlook
Financial results and outlook 16
Slide 17: Key themes from the financial results
Key themes from the financial results Delivering TCC and AGS storage enabled New NZAS contract delivered Improved confidence in the ability to value from fuel Contact to secure ~6PJ of short- improved pricing, enabled demand access AGS storage capacity, and the term gas from Methanex, supporting res
Slide 18: Strong earnings growth reflects investment
FY25 results: Summary Strong earnings growth reflects investment Performance underpinned by renewable growth, fuel flexibility, and pricing discipline Profit ($m)1 Underlying EBITDAF ($m)1 AGS onerous contract release Underlying EBITDAF 151 -185 872 331 46 98 -18 675 -3 -46 15 133 -31 12 -65 71 774
Slide 19: Wholesale business performance offsets retail losses and integration-related costs
FY25 results: Segmental performance Wholesale business performance offsets retail losses and integration-related costs Operating performance by segment Wholesale EBITDAF1 (underlying, $m) Retail EBITDAF ($m) Corporate / unallocated costs ($m) +149 -22 895 -17 3 746 215 Price recovery 77 68 0 -32 2 0
Slide 20: Generation costs
FY25 results: Wholesale business Generation costs Generation costs rose despite strong geothermal growth, reflecting elevated gas and demand response costs Generation volumes Electricity generated or acquired (GWh) Electricity generated or acquired costs ($m) • FY25 saw two distinct periods of histo
Slide 21: Wholesale contracted revenue
FY25 results: Wholesale business Wholesale contracted revenue Diversified mix of long-term and ASX linked sales channels Contracted +215 revenue ($m) Contracted wholesale revenue increased across most channels, supported by 1,386 higher prices and strategic volume shifts. 5 4 1,727GWh +508GWh 146 •
Slide 22: Wholesale trading and merchant revenue
FY25 results: Wholesale business Wholesale trading and merchant revenue In FY24, hydro volatility and elevated spot prices led to Trading EBITDAF ($m) Long / short position (GWh) reduced hydro generation and increased reliance on Merchant generation higher-cost thermal, resulting in lower merchant g
Slide 23: Retail business performance
FY25 results: Retail business Retail business performance Managing through rising wholesale input costs while growing market share through a multi-product strategy EBITDAF ($m) Retail margins have contracted, driven by sustained high wholesale FY25 FY24 Variance prices and rising distribution costs.
Slide 24: Operating costs reflect inflation, growth, and one-off items
FY25 results: Other operating costs Operating costs reflect inflation, growth, and one- off items related to the Manawa acquisition Non-recurring and performance items Other operating cost movement ($m) • FY24 included $4 million of one-off costs related to assessing the Manawa acquisition (in addit
Slide 25: Cash flow and capital expenditure
FY25 results: Cash flow Cash flow and capital expenditure Cash conversion lower with strong EBITDAF growth offset by negative working capital changes and interest Return on invested capital (ROIC) ROIC (average)3 ROIC (FY)4 12 months 12 months Net operating profit after taxes (NOPAT) / Invested capi
Slide 26: Growth capital expenditure
FY25 results: Cash flow Growth capital expenditure Contact’s FY25 growth investment demonstrates progress in the strategic execution of its renewable development pipeline Growth capital expenditure – cash basis ($m)¹ • Construction commenced in FY25 on three major renewable projects: the Up to 12 mo
Slide 27: Supportive balance sheet
FY25 results: Key balance sheet metrics Supportive balance sheet Contact’s diverse funding sources enable continued renewable build Approach and FY25 highlights Closing net debt ($m) Borrowing maturities ($m) Face value of borrowings less cash Average tenor of 7.7 years as at 30 June 2025 • Contact’
Slide 28: Dividend per share for FY25 39cps, up 5%
Dividend per share for FY25 39cps, up 5% Reflects 101% of the average operating free cash flow for the preceding four years Ordinary dividends ($m) Declared Dividend for FY25 of 39 cents per share 355 272 273 274 291 • The final dividend of 23 cents per share is imputed up to 57% or 13 cents per sha
Slide 29: Normalised and expected FY26 EBITDAF $980m
ASSUMPTIONS FOR NORMALISED EARNINGS Normalised and expected FY26 EBITDAF $980m1 Before Manawa transaction and integration costs and assuming mean hydrology and wind conditions FY assumptions that deliver expected & normalised EBITDAF for FY26 CFDs C&I 215 1 Channel choices maximise long term value2
Slide 30: Update on Manawa and strategic delivery
Update on Manawa and strategic delivery 30
Slide 31: Recap: A strategically compelling acquisition
Recap: A strategically compelling acquisition Seasonal shape Geographically diversified hydro schemes are Output relative to average (x) complementary, enhancing portfolio resilience 1 and the volume of fixed price supply agreements 1.4 able to be placed into the market.1 1.2 Average Contact 1.0 Man
Slide 32: Delivering on the promise of the Manawa acquisition
Delivering on the promise of the Manawa acquisition Contact is well-positioned to deliver the benefits of the Manawa acquisition, backed by market tailwinds and a proven integration approach Re-cap: Expected benefits on transaction announcement (EBITDAF)1 Embedded value – Future Manawa standalone ea
Slide 33: Asset upgrades and market tailwinds building confidence
Asset upgrades and market tailwinds building confidence Key milestones met in Manawa’s asset refurbishment Increase in electricity futures prices expected to provide programme: On track for 1,991GWh p.a. mean output from FY28 higher near-term hedge repricing benefits Hydro improvement project status
Slide 34: Cost synergies on track
Cost synergies on track Integration Management Office (IMO) established….. …..with granular plans firming up targets for cost synergies A well resourced integration management programme is in place Cost reduction targets confirmed (all shown pre-tax) Opex reduction target at Opex reduction target Ca
Slide 35: Upside from portfolio combination benefits to come
Upside from portfolio combination benefits to come Focus on capturing the benefits of increased generation flexibility, increased access to renewable winter energy and reducing hydrology risk Supported by market trends… … which are expected to grow the portfolio combination benefits Material downgra
Slide 36: Combined portfolio 98% renewable from FY26
Combined portfolio 98% renewable from FY26 (mean wind and hydro) Annual mean renewables to support electricity sales to be above 12TWh per annum from FY28 Summary of renewable projects delivered and under construction Expected generation (indicative): Delivered Under Glenbrook- Ohurua Kōwhai Park co
Slide 37: Development prioritised as the market requires
Development prioritised as the market requires Development options across Contact and Manawa’s integrated pipeline will be prioritised and advanced based on key strategic evaluation criteria and guiding capital allocation principles Key strategic evaluation criteria for renewable projects Recap: Con
Slide 38: An attractive and diversified development pipeline
An attractive and diversified development pipeline Development options across a diverse combined pipeline of >10TWh Earliest Project status Combined solar and wind pipeline available options of >10TWh Project Capacity Estimated Expected investment (MW)1 output (GWh) online date Land Consent Consente
Slide 39: Our operational plan for the next 12 months
Our operational plan for the next 12 months Next update on strategy will be provided at Contact’s November 2025 Capital Markets Day Strategic theme FY26 New demand facilitated since FY21 to reach >250MW 1 Achieve FID for CO2 Grow At least 50% of new demand contracted in-year structured Demand with f
Slide 40: Questions
Questions 40
Slide 41: Supporting materials
Supporting materials 41
Slide 42: Guidance topics
Guidance topics FY25 guidance FY25 result FY26 guidance FY26 Guidance Commentary Stay in business (SIB) capex (cash) $120-130m $110m $175m - $190m SIB capital expenditure BAU $77m - $87m $71m $115m - $125m At the mid-point ~$5m higher than long-run expectations due to consenting. SIB accelerated pro
Slide 43: Normalised and expected EBITDAF assumptions
FY25 results Normalised and expected EBITDAF assumptions With reconciliation to actual performance FY25 assumptions that deliver expected & normalised EBITDAF of $770m over a financial year EBITDAF guidance reconciliation to actual FY25 Normalised & Expected 770 1 Channel choices maximise long term
Slide 44: Integrated portfolio performance
Historic performance Integrated portfolio performance Operating earnings (EBITDAF) 1 Electricity sales Continuing operations ($m) (i) Long-term channels (ii) Market channels 774 186 Price 136 ($/MWh) 127 108 106 115 663 150 EBITDAF1 5.42 5.08 5.14 5.02 Price 131 133 133 4.94 ($/MWh) 553 546 573 3.69
Slide 45: Greenhouse gas emissions
Carbon reporting Greenhouse gas emissions Indicator Unit Target FY21 FY22 FY23 FY24 FY25 Direct GHG emissions (Scope 1) tC02e 1,044,744 786,842 526,621 947,491 740,468 45% reduction of 2018 - Stationary combustion tC02e Scope 1 and 2 1,044,537 786,544 526,282 947,131 739,945 emissions by 2026 - Mobi
Slide 46: Generation and sales position
Operational data Generation and sales position Contact generation output sold to the national grid (GWh) Hydro generation (GWh) 8,908 8,636 8,928 8,445 8,404 8,269 Inflows stored include uncontrolled storage lakes Thermal 1,421 7,543 1,088 1,360 1,592 1,046 1,620 3,919 generation 439 3,752 Hydro 3,2
Slide 47: Plant and fuel performance
Operational data Plant and fuel performance Geothermal fuel performance Plant availability Geothermal fuel extracted at Wairakei vs consented (mT) Hydro Geothermal1 Net Availability Capacity Electricity Pool revenue Net Availability Capacity Electricity Pool revenue -5% capacity (%) factor output ca
Slide 48: Fuel storage movements
Operational data Fuel storage movements Hawea storage (GWh) Gas storage (PJ) Closing storage Closing storage (current) 7.8 4.7 0.5 2.4 191 259 2.4 116 253 160 139 264 2.7 87 3.3 265 3.4 190 174 2.8 Inflows 324 3.4 1.6 1.9 Gas Injected 242 322 7.8 0.9 232 330 1.7 1.3 3.1 5.8 4.7 260 252 263 3.4 3.4 O
Slide 49: Contracted and stored gas
Operational data Contracted and stored gas Contracted gas volumes (PJ) Gas storage monthly injections and extractions (PJ) Uses of gas (PJ) 15.3 4.4 0.6 3.1 10.3 10.6 1.3 10.0 9.8 9.8 0.2 9.6 9.2 9.0 0.81 0.77 3.6 Purchases 9.8 9.8 3.8 3.0 2.6 2.8 2.8 8.8 9.1 5.6 2.2 0.48 2.8 0.28 6.6 0.25 0.25 6.3
Slide 50: Reconciliation between Profit and EBITDAF
Non-GAAP profit measure Reconciliation between Profit and EBITDAF EBITDAF is Contact’s earnings before interest, tax, depreciation and amortisation, asset impairment and write-offs, The movements between FY25 and FY24 underlying profit are as and changes in fair value of financial instruments. follo
Slide 51: S&P Net Debt / EBITDAF ratio
S&P adjustments S&P Net Debt / EBITDAF ratio FY21 FY22 FY23 FY24 FY25 Actuals from S&P ratings report Estimated • These calculations have been provided as an illustration of the Net Debt adjustments made by Contact’s Carrying value of borrowings 856 1,099 1,556 1,913 2,449 ratings agency, S&P Global
Slide 52: Reconciliation of change in fair value of financial instruments
Fair value of financial instrucments Reconciliation of change in fair value of financial instruments Realised / Change in fair value of financial instruments FY25 FY24 Variance Description unrealised In the period, Contact entered into two long-term Realised gains or losses on the settlement of cont
Slide 53: Historical financial information
Historic performance Historical financial information FY23 FY24 FY25 Unit FY21 FY22 Underlying2 Reported Underlying2 Reported Underlying2 Reported Revenue1 $m 2,573 2,387 2,118 2,867 3,306 Expenses1 $m 2,020 1,820 1,500 1,613 2,204 2,192 2,532 2,434 EBITDAF $m 553 546 573 460 663 675 774 872 Profit
Slide 54: Wholesale segment
Segmental performance Wholesale segment FY25 FY24 Year ended 30 June 2025 Year ended 30 June 2024 Volume GWAP Volume GWAP Note: this table has not been rounded and might not add GWh $/MWh $m GWh $/MWh $m Electricity sales to Retail segment 3,689 163 601 3,801 148 562 Electricity sales to C&I (netbac
Slide 55: Retail segment
Segmental performance Retail segment Residential electricity unit FY22 FY23 FY24 FY25 Residential gas unit FY22 FY23 FY24 FY25 Average connections # 373,347 380,482 388,459 401,332 Average connections # 64,649 66,605 68,092 70,369 Sales volumes GWh 2,644 2,688 2,798 2,809 Sales volumes TJ 1,583 1,50