Contact Energy (CEN) presentation summary

Strategic rationale and market context

• $525M equity raise aims to accelerate renewable energy projects and the Contact31+ strategy, targeting growth in geothermal, battery, and solar assets.

• New Zealand electricity demand is forecast to grow by 3-5TWh over the next five years, driven by electrification in dairy, data centres, metals, and residential sectors.

• The company holds the most diversified generation portfolio in New Zealand, with leadership in geothermal and the largest national renewables pipeline.

• Market clarity on key risks and supportive sector trends underpin confidence in further investment.

Use of proceeds and project pipeline

• Funds will support pre-FID drilling for Tauhara 2 geothermal (potentially upsizing from 50MW to 60-70MW), Glenbrook battery 2.0, and Glorit solar projects.

• Tauhara 2 drilling program is confirmed at $30M, targeting a final investment decision in FY27 and incremental EBITDAF of $9M–$18M in FY31.

• Glenbrook battery 2.0 (200MW) and Glorit solar (150MWac) are expected to deliver significant new capacity and contracted revenue, with strong project IRRs and off-balance sheet structures for solar.

• Enhanced capital flexibility will allow acceleration of additional pipeline projects if market conditions are favourable.

Financial impacts and capital management

• Equity raise will reduce pro forma S&P net debt/EBITDAF from 2.8x to 2.3x, maintaining leverage within the 2.6x–2.8x target range over the medium term.

• FY31+ EBITDAF targets are maintained, with potential upside from accelerated growth.

• Dividend guidance reaffirmed: 40cps in FY26 and 41–42cps in FY27, with new shares ineligible for the FY26 interim dividend.