#1Meridian. 2021 Investor Day Presentation MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM 11 MAY 2021#2Introduction Meridian. Mark Verbiest Chair#3Welcome Welcome and introduction Mark Verbiest Chair Strategy and targets Rory Blundell Group Strategy Manager Retail Flux Federation Lisa Hannifin Nic Kennedy Future of the NZ system Grant Telfar South Island demand options Guy Waipara Portfolio balance Harapaki wind farm Chris More Generation development Closing comments Chris Ewers Rebecca Knott Neal Barclay Chief Customer Officer CEO Flex Federation Modelling Manager General Manager Development General Manager Wholesale Wind Maintenance and Development Manager Head of Renewable Development Chief Executive Meridian. 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION | 3#4Three key themes Aotearoa's future decarbonisation and the electrification opportunity Future dry year solutions Meridian's response to a 2024 NZAS exit Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 4#5NZAS exit response NZAS contract 14 Jan 2021 Meridian portfolio response Current swaption CUWLP NI battery Process heat Data centre Green hydrogen Meridian. 1 Jan 2022 1 Jan 2023 1 Jan 2024 31 Dec 2024 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 5#6Board matters Dividend policy No changes to ordinary dividend policy proposed (subject always to circumstances) 'No earnings or dividend guidance' approach will remain in place Current Board Diverse skill set Gender parity Board rotation Further changes planned this year Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 6#7Strategy and targets Meridian. Rory Blundell Group Strategy Manager#8Strategy initiatives 5-year targets Strategic Champion Competitive markets Sustainability Climate action Grow a clear sustainability leadership position Optimise Trading & asset management Re-consenting Financing Use our 5,000 GWh renewable opportunity to fast-track NZ's decarbonisation NZ's highest customer satisfaction Grow Retail Generation Flux NZ's largest retail group by ICPS Triple Aus FY20 customer numbers Current position A resilient wellbeing and safety culture 5th in Colmar Brunton Better Futures Report 1,500 GWh new demand opportunities identified 3 million ICP's on Flux 5th highest customer satisfaction 3rd largest retail group by ICPs 6% growth in Aus customer numbers 550,000 ICP's on Flux 90% positive staff wellbeing and safety sentiment, deteriorating injury frequency rates Meridian. 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION | 8#9Strategic Strategy initiatives Current initiatives Champion Competitive markets Sustainability Climate action Regulatory and government relations programmes drive positive change New South Island demand options to mitigate NZAS closure Generative health and safety culture Optimise Trading & asset management Re-consenting Financing Portfolio evolution to support continued growth Enterprise security Grow Retail Generation Flux Customer best in class digital and infrastructure Reduce Aus retail cost-to-serve, advance pipeline Grow the Flux client base Deliver Harapaki Secure new development options Shift in our management practices to accommodate increased agility and a changing world of work Meridian. Covering today 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 9#10Retail Meridian. Lisa Hannifin Chief Customer Officer#11Profitable growth Being delivered through volume and margin management New Zealand retail sales volumes GWh 9,000 >8,000 7,376 5,727 5,981 6,240 6,000 Improved financial performance continues despite increased competition and pressure on retail 3,000 margins Significant volume growth has been achieved through targeted acquisition across both brands Meridian most notably in the C&I segment, whilst Powershop has grown its Residential and Small Business market share Strong discipline on controllable costs despite an increasing customer base has seen a continued reduction in operating expenditure by ICP and MWh 0 2017 Financial Year ended 30 June 310 300 290 280 270 2018 2019 2020 2021 est Source: Meridian Operating Expenditure 2017 2018 Financial Year ended 30 June 2019 Opex per ICP (LHS) 2020 NETBACK $/MWH 2021 est Opex per MWh (RHS) 15 14 13 12 11 Source: Meridian Meridian. 92.1 FY17 93.1 FY18 .91.1 FY19 11 MAY 2021 96.2' FY20 100.9 FY21 est 2021 INVESTOR DAY PRESENTATION | 11#12600k 500k 400k 300k 200k 100k Sustained customer growth ■ Through disciplined execution of multi-brand strategy The Group is delivering net growth in all segments and has become the 3rd largest retail group in NZ Powershop recently surpassed a milestone 100k ICPS The strong growth trend of small and medium retailers continues, and Meridian's multi-brand strategy ensures we're well positioned to leverage this 2016 Mar 2016 May 2016 Jul 2016 Sep 2016 Nov 2017 Jan 2017 Mar Meridian. 2017 May 2017 Jul 2017 Sep 2017 Nov 2018 Jan 2018 Mar 2018 May 2018 Jul 2018 Sep 2018 Nov 2019 Jan 2019 Mar ICP count by Retailer 2019 May 2019 Jul 2019 Sep 2019 Nov 2020 Jan 2020 Mar 2020 May 2020 Jul 2020 Sep 2020 Nov 2021 Jan g021 Mar Genesis Energy Contact Energy Small and medium retailers Meridian Energy Mercury NZ Trustpower Source: Electricity Authority Total 324 ICPs by Segment 400k Total 338 300k 87 79 27 29 200k 43 45 35 38 100k 130 128 FY20 Meridian RES Meridian AGR FY21 YTD Meridian SME | Meridian CLB I Powershop RES Powershop BUS 11 MAY 2021 2021 INVESTOR DAY PRESENTATION Source: Electricity Authority 12 Ok#13Core platform transformation Near completion with no major issues to date and improved efficiencies Over 60% of Meridian ICPs have been successfully migrated to the Flux platform with the project due for completion in 2021 Meridian ICPs by Platform VELOCITY 96999 -1,679 on 16/04 FLUX 146295 *1,681 от 16/04 VELOCITY 39.87% Meridian. Emails Calls 粥粥粥 296 096 20% 15% 10% 5% 960 July AUX Sept 220 Customer Interactions Nov Dec Dec wer Feb Mar Flux Q Melocity 4% 9% 2% 3% FLUX 60.13% Source: Meridian % of customer base contacting for the month Source: Meridian Platform productivity benefits are being realised with improved customer care agent to ICP servicing ratios driven by reduced customer interaction volumes 11 MAY 2021] 2021 INVESTOR DAY PRESENTATION 13#14Stable customer satisfaction In both brands, despite core platform transformation 12 Month TREND 42 Meridian. Company NPS Target: Set Target NPS 42.11228 Resp. 8 CSAT Gentailer brands - Meridian Energy Genesis Contact Energy Mercury Trustpower . . . . . . Gentailer average 6 16 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 Source: Meridian Source: Meridian 12 Month TREND Company - NPS Target: Set Target POWERSHOP 100 0 9 CSAT - Challenger brands .... NPS 72 325 Resp. 7 Energy Online Nova Energy PowerShop Electric Kiwi Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Meridian. Source: Meridian Pulse Energy ...... • Challenger average May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20May-20 Jul-20 Sep-20 Nov-20 Jan-21 Source: Meridian 11 MAY 2021| 2021 INVESTOR DAY PRESENTATION 14#15Meridian. Improving retention and market leading brand Meridian continues to enjoy trader churn rates significantly below the market average Powershop's programme of 'churn busting' work has delivered substantial improvements to its churn rate Brand health continues to remain strong in both brands - providing a platform for us to continue sustained growth 12 month rolling average trader churn 12% 10% 8% 6% 4% I've been with you for many years and have no reason to change. If people come from other companies and want me to change I tell them I'm not interested as very happy with meridian. Source: Meridian 2% Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 -Powershop Dec-19 -Meridian Energy Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Weighted Market Average Source: Electricity Authority 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 15#16Innovation and delivery with a decarbonisation focus EV Charging Network Meridian is launching a nationwide network of more than 200 EV chargers to help build real momentum for the switch to electric as electrification of transport is one of the biggest ways to help combat climate change Process Heat Electrification Programme Accelerating New Zealand's transition away from fossil fuels by supporting customers to electrify their process heat through competitive pricing, long term pricing certainty and funding support ECertified Renewable Energy Zero Zero A market leading product that aligns with customers' sustainability goals providing an accredited alternative to carbon offsetting, enabling businesses to report their Scope 2 electricity emissions as zero Commercial Solar Meridian offers solutions to businesses that want to lead the way to a renewable energy future with an array of options to go solar Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 16#17Our way of working continues to evolve From New ways of working Traditional & Specialised Silo/multiple handovers Broader Frontline Capability People & Process Optimisation Solid Transactional Single brand One Product Everyone is responsible for CX Brand essence integrity Extended operational skillset To - Progressive & cross functional - Managed end to end customer outcomes - High Performance - Added Value / Trusted Partner - NZ Retail - Multiple products Actionable Insight- Voice of Customer Disparate data & reporting - Single integrated service platform Meaningful work Manual - Automated Meridian. 11 MAY 2021] 2021 INVESTOR DAY PRESENTATION | 17#18Flux Flux Federation Move faster, price smarter & integrate widely Nic Kennedy, CEO May 2021#19FLUX FEDERATION VISION Flux empowers visionary companies leading the energy transition; enabling them to respond to changing generation, distribution and consumption models by moving faster, pricing smarter and integrating widely. 43 Flux Federation | May 2021 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 19#20FLUX'S ROLE IN THE MERIDIAN GROUP Flux creates value for the Meridian Group in three ways... 1. Providing the best retail platform in market to the Meridian Group retailers 2. Selling that platform to other retailers to capture revenue for the Meridian Group 3. Building the enterprise value of the Flux asset 41 Flux Federation | May 2021 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 20 20#21INTRODUCING FLUX FEDERATION Enabling retailers to move faster, price smarter and integrate widely • 100% owned by Meridian Energy 250+ staff globally Remote-first operations World class Exec team Targeting growth in AU, NZ and UK, in mass market, SME and C&I Flux provides deep industry knowledge and assists clients with: Energy retail best practice Operational improvements Cost savings Risk reduction Digital transformation and change management Data insights 43 Flux Federation | May 2021 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 21#22MARKET DEMAND ACCELERATING "Energy retailers globally are being challenged like never before." - McKinsey Energy transition challenges - the 3D's: Digitisation Decentralisation Decarbonisation On top of: . Increasing regulation Changing competition landscape Decreasing margin Challenging stakeholder demands Low in-house change and digital skills/talent 43 Flux Federation | May 2021 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 22 22#23COMPETITION New entrant tech companies see great opportunity in the energy transition 43 Flux Federation | May 2021 Incumbents SAP Gentrack Oracle Agility New entrants Flux (Meridian) Kaluza (Ovo) Kraken (Octopus) . Ensek 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 23#24LOOKING AHEAD Great things in business are never done by one person. They're done by a team of people. - Steve Jobs Last 12 months - Foundations for scale. Improving the team, architecture, product, brand and delivery and establishing strategy for growth Secured 101 talented people in 2020 during Covid, all remotely Transformed the culture, high-performing, Remote- first, staff satisfaction and productivity gains Improved client satisfaction by 30% Replaced Gentrack at Meridian including C&I Re-architected product to microservices Rebranded, logo, website, messaging Hired VP Global Sales 43 Flux Federation | May 2021 Next 1-2 years - Build on customer intimacy and product leadership strategy to shape the market. New client acquisition in UK, AU and NZ Next 3-5 years - Expansion into Asia and the US 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 24#25The future of the NZ system with 100% renewables Grant Telfar Modelling Manager Meridian.#26Living in uncertain times: renewable energy & dry year flexibility Hydro inflow deficits of 5TWh (20%) have historically been managed by maintaining thermal capacity, flexible thermal fuel storage, and flexible thermal fuel deliveries Newly committed wind and geothermal projects (2.7TWh) will move the system to 90% renewable over the next few years The Government has stated its intent for a 100% renewable system by 2030 They are proposing the Onslow-Manorburn pump storage scheme as a key plank towards this goal As more wind enters the system, it too can face extreme deficits of 8-10%. Solar also faces deficits of up to 3-5% A Tiwai smelter closure by the end of 2024 could see 5TWh of excess Southland-Otago generation attempting to flow northward In response to this regional energy imbalance, large-scale demand. stimulation projects are being pursued Significant new demand in Southland that is also flexible could address regional energy balance and create an alternative mechanism for dry-years. Major Generation Sources Scaled to size of mean energy contribution: 2021-23 Hydro storage Thermal storage Hydro generation Coal generation Gas generation Geothermal generation Wind generation Major load centre Net transfer to NI - HVDC link Meridian. Source: Meridian 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 26#27Changes to the power system by 2030 A large volume of new renewable energy (RE) generation is needed: 12TWh, 3GW, and $7B of new grid generation A secure power system can be achieved multiple ways: retaining thermal generation, 99% RE possible with Onslow, system overbuild, or large-scale demand flexibility, 100% RE possible All solutions rely on other power system components also flexing: dispatchable demand, renewable spill, batteries, ... The pace of change and sheer scale of this challenge is enormous, regardless of the dry-year flexibility solution Wide-reaching changes are expected: storage, prices, and generation all alter dramatically from today's expectations Any of these solutions can do the job: a secure power system with low carbon emissions and a high level of RE annual generation [TWh] 50 45 40 35 30 25 20 15 ☐ 10 5 NZ Power System 2030 Generation Summary Southland Stimulation & System Flexibility: all weeks, all hydrologies 100% 98% 95% 93% 90% 88% 85% BAU: FY2022-24 750MW 610MW Full H2 Flex Dry-Year Tiwai 400MW 1,000MW 750MW Gas Onslow Coal Turbines Reserve Overbuild Overbuild + Big PKI Hydro Solar Dispatchable Demand Wind Auxiliary Dem Response Geothermal Thermal ---% Renewable % renewable energy Source: Meridian Costs, cost allocation, and implications for market are more challenging for some solutions Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 27#28Future dry year flexibility scenarios (1) 610MW Southland demand This could either be new or existing demand Flex production down in times of hydro inflow scarcity, and falling lake levels, in incremental steps Across all hydrological history, demand reduction is low 250GWh pa (5% of annual production) This can vary between 0 and 1,500GWh (30% of production) with the extreme occurring infrequently, <1% of all inflow years No flexibility at all is required in up to 75% of all hydrological years On rare occasions of extreme stress, the market could consume the entire load of the facility (610MW) for a number of weeks or even months # of years Annual output 250 200 150 100 Count SumProb 50 Demand Consumption with Dry-Year Flexibility Southland Stimulation; 610MW dry-year flexible H₂; no thermal -- Flexible Pivot Point <3,750 3,750 3,850 3,950 4,050 4,150 4,250 4,350 - 4,450 4,550 - 4,650 4,750 - 4,850 4,950 - 5,050 - 5,150 - 3,850 3,950 4,050 4,150 4,250 4,350 4,450 4,550 4,650 4,750 4,850 4,950 5,050 5,150 5,350 annual generation [GWh] 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% sum prob (# years) Source: Meridian The need for flexibility in large scale demand is modest but with some extreme usage seen in rare, dry years Meridian. 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION 28#29Future dry year flexibility scenarios (2) 750MW hydrogen electrolysis plant As per scenario #1, flex production down in times of hydro inflow scarcity in incremental steps Adding to this: flex production up in times of renewable surplus: wet, sunny, windy, low demand A "typical" running load of 550MW The ability to increase to 750MW during periods of surplus at lower market prices Annual consumption the same as previous case (5TWh), a 77% capacity factor, with dry-year flexibility offered back to the power system, up to 1.5TWh Strong seasonality in the demand for flexibility The distribution of potential H₂ plant loading is far broader than was observed for dry-year demand response only energy [GWh per week] Weekly output 140 120 100 80 60 40 20 20 28-Jun ... 28-Sep www................. Hydrogen Electrolysis Consumption Southland Stimulation & System Flexibility: all weeks, all hydrologies M 28-Dec *II......... EMPTY____________LINE 28-Mar 28-Jun 28-Sep ....... 28-Dec 5-25th %ile 25-75th %ile 75-95th %ile ........... .................. 28-Mar 28-Jun 28-Sep 28-Dec Min Mean Max 28-Mar www................ 28-Jun Source: Meridian Benefits to the system can be significant: increasing the overall power system capacity factor, dry-year management, and the ability to absorb more intermittent renewables Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 129#30Future dry year flexibility scenarios (3) Onslow-Manorburn (simple) pumped storage 585MW of (new or old) Southland load with no flexibility A simple 4,000GWh storage and 1,000MW power station. scheme: 25% losses: 750MW available for hydro management and 250MW for intermittency management Reservoir release rules determined by dynamic needs of the power system, dispatched according to water-value: Mean dry-year pumping load is 650GWh - 'trickle charge' overnight in summer Mean generation / releases are 325GWh. This will increase as Lake Onslow fills. Intermittency management contributes an extra ~125GWh ■ There is a clear seasonal need for generation In extremes, up to an extra 1,500GWh of generation is dispatched back into the market # of years Annual Onslow-Manorburn Generation output Southland Stimulation; 750MW generator; trickle-charge pumping; No thermal 100 100% 90% 90 80 70 60 Count 50 — SumProb 40 40 30 20 10 80% 70% 60% 50% 40% 30% 20% 10% 0% <0 0 135 135 - 270- 270 405 405- 540- 675- 810- 945 1,080 1,215 1,350 1,485 1,620 1,755 1,890 - 540 675 810 945 1,080 1,215 1,350 1,485 1,620 1,755 1,890 2,000 annual generation [GWh] sum prob ( years) Source: Meridian The estimated $4B+¹ Onslow scheme can be a viable dry year mechanism, along-side other sources of flexibility ¹estimated cost, not including further required investment in transmission Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 30#31Annual system costs by 2030 Over the decade, the challenge of meeting the generation needs of a power system moving towards 99%-100% RE are significant, regardless of the dry-year solution pursued: 13-15TWh of new generation, including roof-top PV New capital requirements are broadly in line with energy needs - similar between scenarios $9.5-10B (including $1.9B of roof-top PV) Additional costs are likely for new flexibility: For example: H₂ = $2.5B; Onslow = $4B; gas flexibility = $0.5B; Pukaki high dam = $2.5B (all estimates) Depending on how costs are socialised, dry-year load response, reserve coal, or gas turbines could all look significantly cheaper System cost is not the only metric for the Government (or regulators) to consider: carbon, security, volatility, and investment/market stability are all important system costs per year [$M] $2,000 $1,500 $1,000 $500 S- Annual NZ System Costs Southland Stimulation & System Flexibility: all weeks, all hydrologies Shortage Emergency Dem Res Capital Annuity Direct Tx Carbon Thermal Fuel IOM TOTAL (mean) .......+flex capital Source: Meridian A tight range of system costs is seen between quite different solutions to dry-year flexibility until the unknown costs of flexibility are considered Meridian. 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION 31#32The best source of future dry year flexibility The scale and pace of change required to move the NZ power system to 100% renewable energy is significant Changes expected in wholesale market outcomes and performance will be dramatic at times: ☐ Mean modelled prices ~$80/MWh in most scenarios, but sufficient to generate a return on investment Weekly price volatility - especially in winter - is significantly higher than seen today (4-5x) Storage levels are held higher, creating a buffer against deficits in renewable fuel Expected carbon emissions are low in all cases: but slightly higher for coal and gas solutions Expected shortage is greater than today's market but manageable Significant renewable energy spill (wind, geothermal, solar) adds to the hydro spill seen in today's market There is no single solution to future dry-year flexibility that produces a desirable outcome in all situations Of the solutions explored: flexible demand response solutions - especially if it can manage both dry-years and intermittency; and a gas-turbine based solution - if upstream flexibility can be delivered; can achieve a balanced compromise of power system outcomes across a range of metrics All dry-year solutions have the potential to help solve much of the NZ dry-year issue. Any given solution does not need to solve it in its entirety, nor be mutually exclusive with other complementary future solutions Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 32#33South Island demand options Guy Waipara General Manager Development Meridian.#34Datagrid - overview ■ Manapouri has abundant, stable and very competitive renewable energy (versus lack of hydro power in Australia) Southland has the coolest weather in ANZ (average 9.8°C temperature) Shortest distance to Australia, 20M population within 35 millisecond latency Existing high reliability transmission grid (built for Tiwai) and access to "unlimited" and affordable land Plus NZ provides a safe environment, well - educated workforce, state-of-the-art UFB network - optical fibre connectivity datagrid Globally, data centres are expected to consume around 8% of the world's electricity by 2030 Meridian. 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION | 34#35SX-N - Datagrid – project update Exclusivity arrangement - Datagrid have rights to up to 100MW of electricity Conditional on Datagrid achieving project milestones ■ Working with Great South to identify potential sites, closure imminent Australian DC market forecast to grow from 500 MW in 2021 to 2200 MW in 2026. Datagrid team believe they can service. Australia circa 30% cheaper than domestic green options Sydney Brisbane HAWAIKI Meridian. Melbourne datagrid ZERO-EMISSION DATA CENTRE Invercargill H2 Mangawizi TGA Auckland Raglan Taula Ja Dunedin Stewart Island Wellington Aqualink Christchurch Source: datagrid Graborne 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 35#36Datagrid – project timeline - 2021 Site acquisition Resource consent Architecture - Design Construction - Open tender 2022 2023 2024 Tranche 1 construction Subsea cable tender - permitting Marine survey System manufacturing Cable laying Investor selection-project funding IM Data room Closing ca datagrid Meridian. Tranche 2 construction Source: datagrid 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 36#37Process heat electrification - business Meridian team is working with South Island industrial customers to assist with the decarbonisation and electrification of industrial plant Mainly replacement of coal boilers with electricity powered options Meridian is committed to: Competitive pricing Reduced rates for projects that replace fossil fuels Long term price certainty Funding support Contracts with fixed pricing for up to 10 years. Funding support to assist with your electrification project. with electricity. ◉ Potential new demand opportunity of 250GWh-500GWh pa To date leads of 132GWh, and 31GWh of load committed Provided a syndicated offer to large industrial user for their consideration Meridian. 11 MAY 2021] 2021 INVESTOR DAY PRESENTATION | 37#38Green hydrogen feasibility study A three part study: Market scan - markets, end use cases, logistics, NZ opportunity Technology and engineering assessment - development costs, technology options, health and process safety and logistics ☐ Dry year flexibility Study completion by August 2021 Registration of interest due out May 2021 - test end to end value chain Independent Advisory Board providing project governance Meridian. contact Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 38#39Green hydrogen project plan Key dates May 2021 ROI released April 2021 Aug 2021 Dec 2022 Dec 2024 August 2021 Feasibility study and ROI completed March 2022 Assess Select pathway December 2022 Develop consortium and commercial 100 Select Opportunity Assessment Initial Business Case Feasibility Study December 2023 Complete detailed design and secure consents December 2024 Final investment Strategic Assessment Review decision Meridian. C Develop Concept( Selection Interim Business Case Basis of Design/ Tech Spec/ Consenting Final Business Case contact Execute Engineer, Procure and Construct Plant Commission & Test Business Justification Review Delivery Strategy Investment Review Decision Review Readiness for Service Review Project Initiation Concept Selection Procurement Decision Decision Decision Final Investment Decision Handover Decision Dec 2026 Meridian. Operate Handover, Start up Operate & Secure return on investment Operational & Benefit Realisation Reviews Source: Contact Energy/Meridian Energy 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION 39#40Green hydrogen initial conclusions Global demand forecasts are high Many potential pathways Many variables Economic gap Dry year solution NZ has a real opportunity Our overall initial assessment is cautiously optimistic International focus on decarbonisation is driving large increases in demand forecasts for green hydrogen Countries such as Japan and South Korea have limited domestic decarbonisation options Ammonia and liquid hydrogen are the two likely carriers They enable numerous use case options spanning heavy transport, power generation and industrial process substitution Optimal use cases, carrier options and potential partners are unclear Best strategy is to keep our options open for as long as possible The cost of producing green hydrogen is currently significantly higher than fossil fuels. Carbon taxes or subsidies will be key enablers May provide 35-40% of NZ's dry year flexibility requirement Likely to be lowest cost option for NZ The combination of existing generation and transmission infrastructure combined with industrial sites and port access makes NZ's offer unique An initial export opportunity could facilitate a lower entry cost and earlier domestic opportunity Supported by feedback and interest from a number of ongoing external engagements The ROI will be a critical test of this assessment Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 40#41Portfolio balance Meridian. Chris Ewers General Manager Wholesale#42Role of Wholesale The Wholesale Team are accountable for delivering Energy Margin while simultaneously minimising risk and volatility across time. ■ Specifically - we work collaboratively across Meridian to ensure we have: the optimal amount of committed sales going forward the optimal amount of plant available to support those sales the fuel (hydro) required to operate that plant; and the right amount of risk management products to mitigate any externalities (e.g. transmission outages/constraints) and internal shortfalls (low hydro or signification plant outages) MARKET DEVELOPMENT /MODELLING SET UP SPOT TRADING & GENERATION CONTROL Meridian. 1395 50.02 0. 581 T PORTFOLIO OPTIMISATION PORTFOLIO PLANNING SHORT TERM CONTRACTING OUTAGE PLANNING LONG TERM CONTRACTING 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION 42#43Portfolio tracking Portfolio length is decreasing ■physical generation TWh hedging mass market sales C&I sales NZAS sales financial sales 1H FY21 18 +2.5 +2.6 +1.5 +1.7 17.0 +1.7 +0.7 15.5 15.3 14.8 14.9 14.8 2.7 15 1.1 1.6 13.3 2.0 13.8 12.3 12.3 2.2 2.5 2.2 12 2.3 1.3 1.6 5.4 9 5.3 5.0 5.0 5.0 13.7 13.3 13.6 14.2 6 12.5 3.0 2.2 2.0 2.2 2.3 3 3.8 3.7 3.8 3.9 4.3 0 generation sales generation sales generation sales generation sales generation sales 2016 2017 2018 2019 2020 Financial Year ended 30 June Meridian. Source: Meridian 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 43#44Lake Pūkaki low range operation ■ Lake Pūkaki is consented to be used down to 513.0m ▪ Usage below 518.0m is generally tied to the System Operator's Electricity Risk Curves Operations have been extended down to 513.0m 1,767GWh Lake Pūkaki operating range schematic 532.5m top of consented operating range 523.8m current storage (10 May) 518.0m Electricity Risk Curves apply 178GWh 516.4m previous operational floor Security of Supply Alert Meridian. 367GWh 515.0m 513.0m bottom of consented range Official Conservation Campaign Source: Meridian 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 44#45513.0 516.0 wet-T uel-6 17-Jan 25-Jan 519.0 level (masi] 2-Feb 10 Feb 18-Feb 26-Feb 522.0 6-Mar 14-Mar 22-Mar Meridian. 525.0 528.0 531.0 534.0 Pukaki Lake Level 1999-2021 Lake Pūkaki low range operation ◉ Since April 2020, the full Lake Pūkaki storage range has been included in our modelling and forecasting Including the contingent storage allows a greater use of flexibility in the main range which can be seen in the forecast distribution Contingent storage is also included in the Electricity Risk Curves, increasing the margin Storage maintained above 518m historically WOE 7-Apr 15-Apr 23-Apr NEWT News 17-May 25-May un-2 10-Jun 18-Jun 26-Jun 4-Jul 12-Jul n-02 int-sz ny-5 13-Aug 21-Aug 29-Aug 6-Sep 14-Sep 22-Sep 30-Sep 8-Oct 120-9T 24-Oct AON-T 9-Nov 17-Nov 25-Nov 3-Dec 11-Dec 19-Dec 27-Dec MG 20121 LPC Forecast Pūkaki Storage Spaghetti historical mean without 2,200 contingent storage 2,000 1,800 2001 2003 forecast mean with 2001 1,600 2004 contingent storage 200036 200 2001 2014 2011 3012 2013 3014 Pukaki Storage (GWh) 1,400 1,200 1,000 800 600 stoc A 518.2m 2018 2017 400 AA 516.4m A 200 3019 0 Source: Meridian 08-Feb-211 Operational Storage 08-Apr-21 08-Jun-21 11 MAY 2021 08-Aug-21- 08-Oct-21- 08-Dec-21- 08-Feb-22- 08-Apr-22- 08-Jun-22- 08-Aug-22- 08-Oct-22 Discretionary Storage Individual Hyd Sequence Forecast Mean History <---8-Mar-21 08-Dec-22- 08-Feb-23- 2021 INVESTOR DAY PRESENTATION 08-Apr-23- 08-Jun-23- 08-Aug-23- 45 08-Oct-23-#46Harapaki Investment in Harapaki will add length to the portfolio (542 GWh pa) And support existing flexibility while enabling continued retail sales growth Investment in renewables also aligns with New Zealand's move towards a highly renewable energy system And supporting the retirement of aging thermal plant Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 46#47Genesis swaption Meridian has a swaption arrangement with Genesis for up to 150 MW, up until the end of 2022 The swaption is a financial arrangement, which locks in a fixed price for the volume called Since this was agreed, Lake Pūkaki contingent storage availability has provided additional flexibility Currently exploring products from 2023 onwards with a range of parties Demand response will likely play a more important part going forward Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 47#48Smelter demand response Manapouri, Clutha, Waitaki, & Waikato Storage Versus Dry Year Trigger (09-May-2021) ■ Under the NZAS contract, Meridian can by notice Smelter Demand Response to NZAS require a Smelter Demand Response (SDR) when the relevant hydro storage is less than the Dry Year Trigger Level ■ If Meridian gives NZAS an SDR notice, NZAS must start to reduce electricity consumption by a date specified by Meridian which must be between 14 and 40 days after NZAS's receipt of Meridian's notice Under an SDR, NZAS must manage its electricity consumption to achieve a reduction in electricity consumption of 250GWh over 130 days 2500 2000 [GWh] With all material reductions in load occurring within 7 days of the date that NZAS is required to start reducing consumption 1500 1000 500 0 2-May-21 3-May-21 4-May-21 5-May-21 6-May-21 7-May-21 8-May-21 9-May-21 10-May-21 11-May-21 12-May-21 13-May-21 14-May-21 15-May-21 16-May-21 17-May-21 18-May-21 19-May-21 20-May-21 21-May-21 22-May-21 23-May-21 28-Apr-21 29-Apr-21 30-Apr-21 1-May-21 27-Apr-21 26-Apr-21 Manapouri, Clutha, Waitaki & Walkato Storage Dry Year Trigger Source: Meridian As at 10 May, relevant hydro storage sat 101GWh above the Dry Year Trigger Level 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION Meridian. 48#49Harapaki wind farm Meridian. Chris More Wind Maintenance & Development Manager#50Harapaki site features ■ Highest wind farm in NZ - in sub-alpine altitudes ■ Terrain has geological features that require innovative solutions Great access to site via State Highway 5 from Napier, being the main port of supply ■ Transmission connection is on the site. Significant cable reticulation connecting turbines to the switchyard Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 50#51Community and Iwi Within the Te Pōhue community based on the eastern side of the range Two iwi have ties to the region; Ngati Hineuru and Maungaharuru Tangitu Trust Meridian will be a good long-term citizen and fulfil what is culturally appropriate to iwi and also support community led initiatives Meridian. Your D 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 51#52Team Assembled a very experienced delivery team with deep construction and operational experience Aim to use local expertise to fill site roles as much as reasonably possible Team disciplines aligned with contracts thereby having commercial and technical oversight Strong focus on culture, environment and sustainability through the life of the project Meridian. 300-40 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 52 32#53Delivery Meridian has chosen the 'Principal' over 'turn key', or 'Engineer, Procure, Construct' models Enables Meridian to set, monitor and control the Health & Safety and performance culture on-site Enables the complex interaction between contractors to be seamlessly managed within the master programme Allows Meridian to manage the risks directly and deal with issues in real time Meridian. HIGGINS 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 53#54Technology Direct Drive (DD) technology has far less. moving parts as there is no gearbox DD turbines use less oil, have greater ability to respond to changes in wind strength and generally have a longer life expectancy Meridian previous experience with DD technology at the Mt Millar wind farm in South Australia, the Ross Island installation and the Brooklyn wind turbine Our expectation is to consistently meet high availability output with lower operating costs Meridian. 11 MAY 2021] 2021 INVESTOR DAY PRESENTATION 54#55Financials ☐ NZ$395M capital investment 41 turbines | 176MW | 542 GWh 35% capacity factor ■ NZ$35M to NZ$39M EBITDAF p.a. On a $/kW basis, Harapaki construction is expected to be 17% lower than Mill Creek The technology change to direct drive turbines gives rise to two benefits: Lower operational costs due to less moving parts and consumables (no gearbox) Greater longevity, resulting in a contracted 30-year life backed with availability warranty Estimated Levelised Unit Energy Cost of NZ$62.4/MWh Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 55#56Generation development Meridian. Rebecca Knott Head of Renewable Development#57Development context Meridian's analysis suggests 12TWh of new grid generation by 2030 to meet 100% RE Greater than the CCC's Draft Advice, which suggested 10TWh of additional system generation +10TWh by 2035 A third of that growth equates to at least 7 Meridian generation projects by 2035 Longer term analysis suggests further system demand growth of at least another 10TWh 2035- 2050 Development challenges are significant: Timing of new demand growth uncertain. Consenting timeframes are subjective Long greenfields development timeframes. Upswing in competition for options Generation (TWh) 60 60 50 00 40 30 20 10 Meridian. 11 MAY 2021 1990 1995- 2000 2005 2010- 2015- 2020 Historical Our path Other Oil Gas Coal Solar Wind Geothermal 2025 - 2030- 2035 Source: Climate Change Commission Draft Advice January 2021 2021 INVESTOR DAY PRESENTATION | 57 ■Hydro#58Development scenario Frequent builds will be needed just to meet a portion of the CCC's projected system growth Development focus is on finding, consenting and holding options, not the timing of builds. 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Harapaki 7+ additional projects North Island battery Meridian. 0% 0% 0% 16% 21% 21% 21% 38% 51% 61% 72% 72% 84% 89% 100% Key Investigation Expert Studies & Consent Detailed Design Option on hold 11 MAY 2021 | Construction Source: Meridian 2021 INVESTOR DAY PRESENTATION 58#59Current development pipeline Pipeline of 1.9GW (4,400GWh) Consented sites will likely require re-consenting for better technology fit Design, development and construction timeframe is subject to site complexity Opportunities inevitably will not crystalise, more development options are needed Wind sites will come down off the ridgelines Solar is faster to analyse, design and build than wind Development pipeline (MW) 800 110 consented sites I secured sites ■opportunities 1,000 Meridian. Source: Meridian 11 MAY 2021 2021 INVESTOR DAY PRESENTATION 59#60North Island battery To build greater depth to North Island reserve offers In turn allowing greater HVDC North transfer and less inter-island price differential Potentially shared ownership with Contact Energy Likely 100MW capacity NZAS exit delay gives more time to consider location and technology alternatives Intended commissioning in 2024 Meridian. Tesla 100-MW/129-MWh energy storage system, Hornsdale Wind Farm in South Australia Courtesy: Tesla 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 60#61Forever Forests Target 1,100 hectares of new plantings to grow Meridian's own carbon offsets (21t) Plant Meridian land Partner with others land Purchase land (marginal land) Long-term native biodiversity through mixed model (exotics and natives) Progress 60ha planted (~60k stems), 80k stems ordered for 2021 Registration of first forests in the ETS now underway Meridian. LFR483 n 0633N 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 61#62Closing comments Meridian. Neal Barclay Chief Executive#63NZAS exit response NZAS contract 14 Jan 2021 May 21 1 Jan 2022 1 Jan 2023 1 Jan 2024 investor day Meridian portfolio response Current swaption CUWLP NI battery Exploring options on schedule completion review of sites site acquisition design & consents construction NTP Process heat 31 GWh committed Data centre review of sites site acquisition design & consents Green hydrogen ROI open Feasibility and ROI select pathway develop consortium Meridian. ECCA funded projects 1 tranche 1 construction, cable laying ECCA funded projects 2 design & consents go live 31 Dec 2024 >250 GWh contracted tranche 2 construction FID 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 63#64expected annual energy [GWh] -500 -1,000 -1,500 -2,000 -2,500 2,500 2,000 1,500 1,000 500 0 FY2021 Meridian. Supply demand balance NZAS exit mostly absorbed by 2030 with modest organic demand growth and new load (industrial heat, data centre, EV's) FY2022 NZ Power System New Generation & Retirement 10 Year Outlook Exit @Feb21 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 EV ■Solar (Roof) Thermal ■Hydro Solar (Grid) ■Geothermal Wind Source: Meridian FY2030 ☐ T annual demand [TWh] 5 10 15 20 25 30 FY2021 35 40 45 NZ Power System Demand 10 Year Outlook with 2025 Exit: @Feb21 50 3.0% 1 2.0% 1.0% -1.0% annual demand growth [%] -2.0% -3.0% -4.0% -6.0% -7.0% FY2022 FY2023 SI FY2024 FY2025 FY2026 FY2027 NI NZAS FY2028 FY2029 FY2030 ----- NZ Demand Growth Source: Meridian New renewable builds announced recently support thermal retirements before 2030 With some rationalisation of existing renewables 11 MAY 2021| 2021 INVESTOR DAY PRESENTATION 64 -5.0%#65Closing comments Engaged Lazard to assess Australian strategic direction and options People focus changing world of work health, safety and wellbeing Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 65