RESULTS PRESENTATION for the year ended June 2013 Disclaimer The information in this presentation was prepared by Meridian Energy with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the information. In addition, neither the company nor any of its directors, employees, shareholders nor any other person shall have liability whatsoever to any person for any loss (including, without limitation, ariiising from any fau lt or neg ligence )ariiising from t his presentat ion or any ifinformat ion supp lidilied in connection with it. The compan y is not presently in a position to pro vide for ward -looking financial information nor to answer questions about its activities or prospects. This presentation does not constitute financial advice. Further, this presentation is not and should not be construed as an offer to sell or a solicitation of an offer to buy Meridian Energy securities and may not be relied upon in connection with any purchase of Meridian Energy securities. This presentation contains a number of non -GAAP financial measures, including Energy Margin , EBITDAF, Underlying NPAT and gearing. Because they are not defined by GAAP or IFRS, Meridian's calculation of these measures may differ from similarly titled measures presented by other companies, nor should they be construed as an altealternativernative to other financial measures determined in accordance with GAAP. Although Meridian believes they provide useful information in measuring the financial performance and condition of Meridian's business, readers are cautioned not to place undue reliance on these non-GAAP financial measures. RESULTS PRESENTATION for the year ended June 2013 12 August 2013 PG | 2 Highlights Highlights . Significant financial performance $M EBITDAF and Net Profit - last 3 financial years improvement from the record dry FY12 700 660 12 months to 30 Jun 11 1 1 585 12 months to 30 Jun 12 NPAT +296%, EBITDAF +23%, Underlying NPAT 600 12 months to 30 Jun 13 +53%, Operating cash flow +29% 500 477 AhiAchieve d w hile mana gigiging increase dtd transm iss ion 400 costs and the impact of residual FY12 dry year 303 295 300 hedges 219 200 163 Inflows at average levels, up 34% from FY12 106 100 75 0 . Market disruption was well managed EBITDAF Underlying NPAT NPAT source: Meridian 42 days of HVDC outages to support Pole 3 commissioning 3 month Tekapo canal outage 4 months of extremely dry national conditions . No lost time injuries in the year 1 EBITDAF and Underlying NPAT are non -GAAP financial Two years since an LTI was recorded measures. Refer to pg12 for definitions of these measures RESULTS PRESENTATION for the year ended June 2013 12 August 2013 PG | 3 Highlights Return to average inflows from record dry FY12 $M Financial measures . Significant financial performance 1,000 916 12 months to 30 Jun 12 improvement from the record dry FY12 900 12 months to 30 Jun 13 EBITDAF1+23% 800 763 700 1 585 Underlying NPAT +53% 600 529 500 477 Operating cash flow +29% 417 400 322 295 277 300 252 227 245 . StiSome cost increases 200 163 115 106 87 75 71 Transmission +33% from increased HVDC charges 100 0 Energy Trans Operating EBITDAF NPAT Underlying Operating Investment Dividend MiMargin miiission CtCosts NPAT ChCash Flow EditExpenditure DlDeclare d Operatifing costs +8% from one-off items re lat ing +20% +33% +8% +23% +296% +53% +29% -48% +254% to development and IPO costs, and at risk +$153m +$29m +$18m +$108m +$221m +$57m +$95m -$252m +$181m performance incentives not paid in FY12 source: Meridian . Several one off impacts below EBITDAF $101m pre tax gain on Macarthur wind farm sale $6m gain on sale of EFI (Energy for Industry) 1 EBITDAF and Underlying NPAT are non -GAAP financial $25m of impairments, largely North Bank Tunnel measures. Refer to pg12 for definitions of these measures RESULTS PRESENTATION for the year ended June 2013 12 August 2013 PG | 4 Safety and health Safety and health remain a critical focus . Continuous focus to ensure safety and EEA industry Lost time injury frequency rate average health is a core part of all operations period ended Jun 2013 000.0 Meridian continues to develop individual safety behaviour and accountability Jun 2012 0.9 Particular emphasis on embedding pre- Jun 2011 1.8 qualification programme for contractors Jun 2010 2.5 Two years siliijhbince a lost time injury has been Jun 2009 3.1 recorded - 1 2 3 4 5 6 7 12 month average lost time injury incidents per million hours worked (permanent employ ees) source: Meridian RESULTS PRESENTATION for the year ended June 2013 12 August 2013 PG | 5 Wholesale Return to average inflows from record dry FY12 GWh Combined inflows into Meridian's catchments . Inflows at 101% of historical average 14,000 Siggygnificantly higher inflows in 1H FY1 3 than 1H FY12 12,000 10,000 Dry 2H FY13, bookended by two large inflow 8,000 events in early January 13 and late June 13 6,000 15 consecutive weeks of significantly below 4,000 average inflows between February 13 and May 13 2,000 resulted in reduced generation 0 Financial 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 year Storage fell rapidly during 2H FY13 Interim Final half year source: Meridian Interim 80 year average Full year 80 year average GWh Meridian's Waitaki storage Severe North Island drought conditions over 3,000 summer 2,500 2,000 . Market disruption was well managed 1,500 42 days of HVDC outages to support Pole 3 1,000 commissioning 500 source: Meridian 3 month Tekapo canal outage over summer 0 1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec 1 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 Mean RESULTS PRESENTATION for the year ended June 2013 12 August 2013 PG | 6 Wholesale Market disruptions drove volatility in generation market share and prices HVDC outages islanded Meridian generation and NZ generation market share (weekly) 45% impacted market share high 40% inflows high inflows 35% Resulted in periods of significant inter island high 30% price separation inflows 25% 11 day 6 day HVDC HVDC Pole 3 commissioned, Pole 2 control system 20% outage outage 15% upgrade beginning in August and expected to be 15 weeks of below avg inflows 10% Tekapo canal outage completed in December 5% source: Meridian 0% Competitor’s North Island hydro storage levels hit Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Jan-13 Feb-13 Mar-13 Apr-13 Jun-13 very low levels during the drought $/MWh Average wholesale price* 250 12 months to 30 Jun 12 2012 record dry winter 12 months to 30 Jun 13 Good availability of thermal generation 199 200 North Island drought conditions supplemented reduced hydro output 161 151 146 150 2011 low inflows and cold weather demand Tekapo canal outage limited inflows into 107 97 100 102 98 96 100 Meridian’s catchments 81 83 77 65 60 53 52 57 56 50 38 41 39 Once reopened, the canal provided a source of 26 25 inflows during the dry period 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Meridian NZ generation 10% higher than FY12 *Price received for Meridian's physical generation source: Meridian RESULTS PRESENTATION for the year ended June 2013 12 August 2013 PG | 7 Retail Continuing retail financial improvement . Segment earnings improvement GWh Monthly national demand 3,800 EBITDAF1 per MWh (at fixed input price) increased 3, 600 by $1.20 (63%), even with increased corporate cost allocations 3,400 3,200 Contracted revenue ggyrew by 2.6% desp ite a 1% 3,000 reduction in volume and continued soft demand conditions 2,800 source: Meridian 2,600 MldibiMostly driven by improv ing port fliiihfolio mix with Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun minimal energy tariff increases Range (FY08-FY12) FY11 FY12 FY13 GWh Retail segment sales volumes Changgpes to lines cost component of tariffs were 3,500 12 months to 30 Jun 12 2,923 12 months to 30 Jun 13 reflected in prices including decreases in Auckland 3,000 2,897 . Customer changes 2,360 2,500 2,232 Customer connections declined by 5% during FY13 2,000 1,898 1,861 Includes transfer out of pre-pay and EDNZ 1,500 customer connections 1,000 444 506 Excluding EDNZ, Meridian North Island customer 500 connections increased 4% 0 Residential/Small Corporate Powershop Spot Total Powershop connections increased 7% Business source: Meridian 1 EBITDAF is a non-GAAP financial measure. Refer RESULTS PRESENTATION for the year ended June 2013 to pg12 for a definition of this measure 12 August 2013 PG | 8 Development Development pipeline reshaped . New Zealand Maungaharuru Pipeline rationalised in response to soft market 94MW conditions (consents held) No further development expected for 3-5 years Focus on a smaller, more deployable set of future Central Wind options with attractive cost profile 120MW (consents held) North Bank tunnel hydro project suspended Meridian gained consents for the Hurunui wind farm in North Canterbury (31 turbines) Mill Creek 60MW Mill Creek wind farm construction on schedule (construction) . Australia Hurunui 76MW $101m ppgre tax gain on sale of the Macarthur wind farm (consents held) Mt Mercer wind farm construction on schedule Pukaki Hydro 35MW Powershop launched in Victoria (()consents held) RESULTS PRESENTATION for the year ended June 2013 12 August 2013 PG | 9 New Zealand Aluminium Smelters Agreement reached with the owners of New Zealand Aluminium Smelters (NZAS) After a year of negotiations, agreement has been reached with New Zealand Aluminium Smelters (NZAS), effective