Mercury NZ (MCY) investor relations material

Strategic priorities and growth platforms

• Focus on stewardship, commercial leadership, customer-centricity, and adaptive culture to deliver reliable, renewable energy and financial growth by 2035.

• Geothermal and wind are core growth platforms, offering diversified, low-cost, renewable generation close to demand centers.

• Portfolio expansion targets up to 5 TWh of geothermal growth options, with 2.5 TWh under active development and 1 TWh entering feasibility.

• Demand growth is driven by data centers and industrial electrification, with electricity demand expected to rise from ~40 TWh to ~49 TWh by 2035.

• Geothermal provides firm, reliable renewable energy, supporting long-term contracts and major energy users.

Geothermal platform development and execution

• Multi-reservoir GeoPlatform enables repeatable value creation through brownfield and greenfield expansion, leveraging extensive landholdings and partnerships.

• Vertically integrated geothermal capability spans exploration, drilling, engineering, consenting, delivery, and operations, reducing risk and driving value.

• $75m committed for FY27–FY28 appraisal drilling, targeting high-value, high-confidence opportunities and supported by government funding for superhot geothermal.

• Near-term projects at Ngā Tamariki and Rotokawa are entering feasibility, with first generation targeted for 2030 and earliest FID late CY28.

• Next-generation geothermal (EGS, superhot) is being piloted, positioning for long-term upside as technology matures.

Capital allocation and shareholder value

• Capital allocation is disciplined, with geothermal projects competing on value, timing, risk, and funding.

• 1 TWh of projects entering feasibility represents $0.8b–$1.0b investment, with leverage peaking at 2.6x before declining.

• Growth is demand-led, avoiding overbuild and supported by long-term contracts with major energy users.

• Appraisal drilling and milestone progression reduce uncertainty before major capital deployment.

• Geothermal growth strengthens earnings quality, business resilience, and supports progressive dividends.