Snowtown Wind Farm 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 forwar d-loo king s ta temen ts w ill 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 Adelaide • 100 MW Stage 1 commissioned in 2008 – 44% long-term cappyacity factor, ,p prior to Stag e 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 Stag e 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 – Origin Energy 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 comp ltlete 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 Wa ke fie ld 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 $A NZD/AUD 0800.80 700 fun ding w ill be soug ht to refinance AUD 600 bank facilities used for 500 Snowtown Stage 2 400 million 300 NZD 200 100 ‐ 0‐11‐22‐33‐44‐55+ Years to Maturity Subordinated Senior ‐ Drawn Senior ‐ Committed for Snowtown II Senior ‐ Undrawn Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 16 Financing – Group Gearing Ratio Debt:Debt+Equity Sell South post construction Hold South Long Term 50% 45% 40% 35% uity qq 30% 25% 20% 15% Debt:Debt+E 10% 5% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Financial Year Ended March Refer significant assumptions slide 21 and 22 Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 17 Financing – Group Gearing Debt/EBITDAF Sell South post construction Hold South Long Term 4.5 4.0 3.5 3.0 DAF TT 252.5 2.0 Debt/EBI 1.5 1.0 0.5 ‐ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Financial Year Ended March Refer significant assumptions slide 21 and 22 Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 18 Impact on the TrustPower Group First full year of operation of Snowtown 2 project – FY16 Snowtown 2 Snowtown 2 Total Snowtown North** South Stage 2 CAPEX(A$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$m) Earnings per share (NZ cps)* 343.4 454.5 797.9 * Exchange rate of NZD/AUD 0.8000 assumed ** Includes impact of wind shading on Snowtown Stage 1 Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 19 Snowtown 2 South sales process update TrustPower has two potential avenues to sell Snowtown 2 South: 1. Sale completed soon after financial close Exclusive ppprocess commenced with a potential co-investor that was short listed but unable to provide binding bid by targeted financial close. 2. Sell at commissioning (2014) Potential to offer pre-committed long term funding package. Large pool of potential co-investors interested once construction risk removedid inc ldiluding range o ffif financ iliial inves tors itinteres tdited in renewable infrastructure assets. Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 20 TrustPower’ s Australian vision • Snowtown Stage 2 will be the first of several wind fdddihfarms constructed and managed with co-investors • By 2022: – TrustPower will own 600MW of sustainable generation – It will have built another 600MW for its development partners, for which it continues to play a management role • Our Australian pppipeline currentl y consists of approximately 1,280 MW of potential wind options Date: 26-Jul-12 Snowtown Wind Farm Stage 2: Investor and analyst briefing 21 Significant Assumptions Project related assumptions Capex • Based on pricing under fixed price contracts with Siemens Ltd (“Siemens”), Downers EDI Engineering Power Pty Ltd and ElectraNet Pty Ltd •Port io ns in fo re ig n cu rr en ci es conv er ted to A$ us ing rates set by fo rwa rd e xc ha nge co n tr acts.