2021 Investor Presentation

2019 4 Years 2022-2025 5 Years 2026-2030 5 Years 2031-2035 New Zealand policy and regulation Climate Change Commission Final Advice Released in June 2021, final advice on 2022-35 emissions budgets Proposes deeper emissions cuts in first two budget periods than earlier draft advice Recommends major expansion in the electricity system needs to start immediately Considers replacing 100% renewable electricity target with achieving 95%- 98% by 2030, with gas to provide flexibility until at least 2035 Government has until May 2022 to set the first three emissions budgets out to 2035 and release the country's first emissions reduction plan with detailed policies Following the draft final advice, Government has introduced a Clean Car Discount effective 1 July 2021 And have raised the cost containment reserve price in the ETS from $50 to $70 and the price floor from $20 to $30 (both from 2022 onwards with 10%/5% plus inflation annual increases thereafter) And started consultation on reforms to the industrial allocation in the Emissions Trading Scheme (ETS) Energy, industry and buildings Transport Land Waste and F-gases CO₂e 78 Mt 72.4 Mt 62.4 Mt 50.6 Mt Per Year Per Year Per Year Per Year Budget 3 Phase out imports Budget 1 Budget 2 Lower- emissions Accelerate uptake of electric and zero- emissions cars, buses and trucks Improve efficiency of vehicles and freight movement of internal vehicles Reducing vehicle trips combustion engine light vehicles Encourage switching to walking, cycling and public transport Reduce demand for travel, for example through smart urban development and increased working from home Increase use of rail and coastal shipping for freight Aviation and shipping Improve efficiency Buildings Start electrifying ferries and coastal shipping Increase use of biofuels Start electrifying short-haul flights Start phasing out existing fossil gas Low carbon liquid fuels No new fossil gas heating systems installed after 2025 Improve thermal efficiency Phase out Transmission and distribution grid upgrades use in buildings Achieve -95% renewable generation Electricity fossil base-load generation Agriculture Expand renewable generation Adopt low- emissions Adopt low- practices on-farm emissions breeding for sheep Industrial process heat Native forests Replace coal with biomass and electricity Ramp up establishing new native forests Average 25,000 ha per year of new exotic forests Replace fossil gas with biomass and electricity Encourage new low biogenic methane technologies to be adopted when available Establish 25,000 ha per year Exotic forests Waste F-gases Divert organic waste from landfill Improve and extend landfill gas capture Increase end-of-life recovery of F-gases Ramp down planting new exotic forests for carbon storage Meridian. NOVEMBER 2021 Source: He Pou a Rangi Climate Change Commission 2021 INVESTOR PRESENTATION 8

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