Snowtown Stage 2 Investor and Analyst Briefing 26 July 2012 Disclaimer

The information set out below relates to future matters, that are subject to a number of risks and uncertainties (many of which are beyond the control of TrustPower, which may cause the actual results, performance or achievements of TrustPower or the TrustPower Group to be materially different from the future results set out below. The inclusion of the forward- looking information below should not be regarded as a representation or warranty by TrustPower, the directors of TrustPower or any other person that those forward -loo king s ta tement s will be ac hieve d or tha t the assump tions underlying any forward-looking statements will in fact be correct.

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 2 Outline

• Key project information • Wind farm contract suite • Construction timetable • Approvals and regulatory framework • Project economics • Financing • Sale of Snowtown 2 South – update

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 3 Project summary

• Site located 140 km north of • 100 MW Stage 1 commissioned in 2008 – 44% long-term cappyacity factor ,p, prior to Sta ge 2 • Stage 2: 270 MW, split into two separate wind farms – 90 × 3 MW turbines – 48 turbines for Snowtown 2 North (144 MW) – 42 turbines for Snowtown 2 South (126 MW) • Total expected project cost ≤ A$439m •Cappyacity factor for Sta ge 2 ≈ 42% (()40% North and 44% South) • PPAs cover 100% of Stage 2 output

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 4 Site location and turbine layout

Direction of construction Snowtown

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 5 Key contracts

• EPC Agreement – Siemens Ltd – Siemens SWT-3.0-101/108 Direct Drive WTG – Covers full installation, to commissioning and handover

• Warranty and O&M Agreement (WOM) – Siemens Ltd – Comprehensive availability warranty and full service O&M coverage for 15 years from first turbine handover

• Power purchase agreements – Electricity Limited – Separate agreements for Snowtown 2 North and South , with identical commercial terms – Agreements cover 100% of the energy and RECs – Expiry date 31 December 2030, with options to extend the energy portion for a further five years at either a put or call price

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 6 Key contracts cont.

• Transmission Connection Agreement – ElectraNet Pty Ltd – 25-year agreement finalised

• Land – 25-year agreements in place with all 24 landowners – TrustPower will have the ability to repower the site at the end of these agreements – Strong community and council support of the project

• Transmission line – Downer EDI Pty Ltd – 28km transmission line (275 kV) to be constructed between wind farms and the market connection point, a new substation on the Para- Buugaangama line – Line and substation will be owned by Snowtown 2 North and shared by both wind farms

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 7 Construction timetable

2012 2013 2014 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Financial Close and Notice to Proceed

Wind farm construction

Wind farm completion and handover Transmission line and connection

Design, delivery Commissioning and Key Major milestone and construction reliability testing

First Snowtown Snowtown synchitihronisation SthSouth compl ltete NthNorth comp ltlete Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 8 Approvals secured

DlDevelopmen t Plann ing Approva l Wak efi eld RCR.C. 9 Foreign Investment Approval FIRB 9 Generation Licence ESCOSA 9

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 9 Supporting regulatory framework

• Emission Reduction Target – Australia has committed to reducinggg greenhouse gas emissions to 5 % below 2000 levels by 2020

• Renewable Energy Target (RET) – Australia’s Large-scale RET legislation is a key driver of renewable investment – The Government is targeting 20% renewable electricity generation by 2020 (41,000 GWh) – Wind is likely to make up c. 75% of this total (≈ 9,700 MW, an increase of 6,,)600 MW on current levels) – The LRET scheme runs to 2030, which supports long-term PPAs

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 10 Project economics

Wind resource / Turbine price PPA Currency technology match Star alignment + Swift execution = Shareholder value

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 11 Project economics cont.

Total Snowtown 2 Snowtown 2 Snowtown South North Stage 2

Capacity (A$m) 126 MW 144 MW 270 MW Long term expected annual yield 481 GWh 504 GWh 985 GWh (at market connection point) CitftCapacity factor 44% 40% 42%

CAPEX (A$) 182m 257m 439m

(A$m/MW) 1.44 1.78 1.63 Assumed mid-life refu rbishment $400, 000 $400, 000 $400, 000 (A$ per WTG, years 16-20) Ungeared Project IRR >15.0% >13.0% >13.5%

Date: 26-Jul-12 Snowtown WindRefer Farm significant Stage 2: Investorassumptions and analyst slide briefing 21 and 22 12 Snowtown Stage 1 A successful investment • 47 Suzlon S88 turbines (98.7MW) plus prototype 2.1MW turbine

• 389 GWh long term expected annual output

• Commissioned 2008

• 44% long term expected capacity factor before commissioning of Stage 2 Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 13 Snowtown Stage 1 A successful investment

Wind Farm Capacity Factors (SCADA Data) 60%

50% %

40% Factor

30% yy

20%

Capacit 10%

0% Aug‐09 Nov‐09 Feb‐10 May‐10 Aug‐10 Nov‐10 Feb‐11 May‐11 Aug‐11 Nov‐11 Feb‐12 May‐12 Snowtown Stage 1 Avg NEM WF CF (Excl Snowtown Stage 1)

• Snowtown forecast long term output expected to reduce by 19 GWh once Snowtown North constructed due to wind shading • Capacity factor will reduce from 44% to just under 42%

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 14 Financing – Committed Sources of Funding

TrustPower Group Funding Sources • TrustPower Group has (NZD millions) 40 committed debt facilities of 118 close to NZ$ equivalent 1.5 billion 238 NZD Bank ECA Facility 674 Sub Bonds Senior Bonds AUD Bank Unutilised Bank 240

186

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 15 Financing – Debt Maturity

Debt Maturity • Over the next 12 (Including Commitment to Fund Snowtown II) months long term $A NZD/AUD 0800.80 700 fundi ng w ill be soug ht to refinance AUD 600 bank facilities used for 500 Snowtown Stage 2

400 million

300 NZD

200

100

‐ 0‐11‐22‐33‐44‐55+ Years to Maturity

Subordinated Senior ‐ Drawn Senior ‐ Committed for Snowtown II Senior ‐ Undrawn

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 16 Financing – Group Gearing Ratio

Debt:Debt+Equity

Sell South post construction Hold South Long Term

50% 45% 40% 35% uity qq 30% 25% 20% 15% Debt:Debt+E 10% 5% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Financial Year Ended March

Refer significant assumptions slide 21 and 22

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 17 Financing – Group Gearing

Debt/EBITDAF

Sell South post construction Hold South Long Term

4.5 4.0 3.5 3.0 DAF TT 252.5 2.0

Debt/EBI 1.5 1.0 0.5 ‐ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Financial Year Ended March

Refer significant assumptions slide 21 and 22

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 18 Impact on the TrustPower Group

First full year of operation of Snowtown 2 project – FY16

Snowtown 2 Snowtown 2 Total Snowtown North** South Stage 2

CAPEX(A$m) 257 182 439

EBITDA (A$m) 41.2 36.7 77.9

NPAT (A$m) 8.6 11.3 19.9 Operating Free Cash Flow (after 21.5 20.4 41.9 tax and debt service) (A$m) Earnings per share (NZ cps)* 343.4 454.5 797.9

* Exchange rate of NZD/AUD 0.8000 assumed ** Includes impact of wind shading on Snowtown Stage 1

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 19 Snowtown 2 South sales process update

TrustPower has two potential avenues to sell Snowtown 2 South: 1. Sale completed soon after financial close Exclusive ppprocess commenced with a potential co-investor that was short listed but unable to provide binding bid by targeted financial close. 2. Sell at commissioning (2014) Potential to offer pre-committed long term funding package. Large pool of potential co-investors interested once construction risk removedid inc ldiluding range o ffif financ iliial inves tors itinterest tdied in renewable infrastructure assets.

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 20 TrustPower’ s Australian vision

• Snowtown Stage 2 will be the first of several wind fdddihfarms constructed and managed with co-investors • By 2022: – TrustPower will own 600MW of sustainable generation – It will have built another 600MW for its development partners, for which it continues to play a management role • Our Australian pppipeline currentl y consists of approximately 1,280 MW of potential wind options

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 21 Significant Assumptions

Project related assumptions

Capex • Based on pricing under fixed price contracts with Siemens Ltd (“Siemens”), Downers EDI Engineering Power Pty Ltd and ElectraNet Pty Ltd •Por tio n s in f or ei gn curr en ci es conv er ted to A$ us ing rates set by fo rwa rd e xc ha nge co n tr acts. 100% o f fo re ig n cu rr en cy ex posuuere isscoeedby covered by forward contracts EBITDAF • Revenue based on fixed price contract with Origin Energy Electricity Limited (“Origin”) and long term expected average wind volumes • Maintenance costs based on maintenance contract with Siemens • Landowner royalties based on land rental agreements • Other costs estimated based on existing wind farm costs • Fair value movements on financial instruments will be zero as hedge accounting is used for foreign exchange cover. NPAT • EBITDAF less interest (based on expected average TrustPower Group Australian funding cost), depreciation (at 5%) and tax (at 30%) Free cash flows • NPAT plus depreciation and less capex (assumed to be nil in first year of operation i.e. the first full year post commissioning) EPS • Based on expected $A NPAT converted to NZD at 0.8000 divided by number of TrustPower shares on issue (less treasury stock held by TrustPower) Wind volume/capacity factors • Based on independent expert assessment Ungeared Project IRR • Based on ppjroject cash flows (bein g EBITDAF less cash tax and ca pex ) • Revenue post fixed price contract with Origin based on estimated price path • Maintenance costs post contract with Siemens based on cost in last year of contract • Project life assumed to be 25 years, after 25 years value assumed to be book value of roads, substation and electricity reticulation system • Inflation assumed at 2%

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 22 Significant Assumptions

Group Funding Assumptions Debt:Debt+Equity • Snowtown Stage 2 capex funded entirely through debt. • No other majjppor items of capital expenditure over and above normal o pgpperating capex. • Equity increased by profits less dividend and an inflation driven revaluation of generation assets. • Profits are defined as EBITDAF less interest (based on expected average TrustPower Group funding cost), depreciation (at existing rates as per note 2.6 of the 31 March 2012 financial statements) and tax (at 28% in New Zealand and 30% in Australia) • EBITDAF on existing business growing in line with electricity wholesale prices (flat over first three years then lifting) • Snowtown Stage 2 EBITDAF in accordance with above assumptions Under the scenario where Snowtown 2 South is sold post construction the sale proceeds reflect the capital expenditure plus an estimate of the expected net present value of future earnings less tax (capital gains tax and stamp duty) • Dividends held flat at current cents per share • Free cash flows after dividends used to retire debt. Debt/EBITDAF • Based on same assumptions as debt:debt+equity

Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 23