Powering today for tomorrow MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017

Powering today for tomorrow Mark Binns – Chief Executive MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 2

MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 Overview A brief overview of Meridian The big industry questions Looking forward Sustainability MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 3

A brief overview of Meridian Energy 30-34% New Zealand generation market share MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 4

MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 Our Customers Meridian is a B2B retailer – we understand you Account managers key to adding value Year 3 of 4 year investment programme – building tools to help make things easier for your business MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 5

Wholesale price can be volatile Current hydro storage Seasonal demand levels Transmission and distribution capacity Longer term demand changes Plant availability and retirement Timing of new generation MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 6

A quick look over the ditch MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 7

Solar – costs continue to fall Headlines from offshore Utility scale solar cost reductions are dramatic (20% YoY) Residential and Commercial cost reductions are relatively more moderate (5% YoY) Implications for Meridian Utility scale projects, while competitive in Australia, still lag wind and geothermal options in NZ Residential solar paybacks remain unattractive in NZ (without subsidies or niche load profiles) Commercial solar is an opportunity under consideration Residential PV (6.5kW) Commercial PV (200kW) Utility scale PV (1MW) Source: US Department of Energy data http://www.nrel.gov/news/press/2016/37745 MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 8

MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 Electricity load / Solar power (kW) Daily profile (00:00-24:00) Commercial Solar Commercial electricity load profiles far more suitable for solar versus Residential, ability to install medium sized systems (50-200kW) with minimal export Commercial business owners have longer investment horizons – willing to invest in assets that provide returns over 10+ years Commercial businesses focussed on sustainability and “doing their bit” for the environment – increasing uptake of environmental performance certification programmes i.e. carboNZero As a leading B2B retailer, Meridian is considering how we assist commercial customers achieve the benefits of roof-top solar in a cost-effective & simple way. MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 Meridian analysis 9

Sustainability is in our DNA MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 10

EV landscape in New Zealand MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 11

MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 Questions? MERIDIAN ENERGY LIMITED FMANZ Summit, May 2017 12