New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Evidence of Mercury's (MCY) challenging 1Q25 is apparent in the operating statistics, with hydro generation well below average and gas costs continuing to rise higher.</li><li>The recovery in hydro storage during late August and September 2024 has enabled MCY to lift FY25 hydro generation guidance and earnings expectations.</li><li>After a difficult 1Q25, MCY is better positioned for the remainder of FY25, with possible La Nina conditions a likely positive for North Island hydro generation. OUTPERFORM.</li></ul>

Evidence of Mercury's (MCY) challenging 1Q25 is apparent in the operating statistics, with hydro generation well below average and gas costs continuing to rise higher.The recovery in hydro storage during late August and September 2024 has enabled MCY to lift FY25 hydro generation guidance and earnings expectations.After a difficult 1Q25, MCY is better positioned for the remainder of FY25, with possible La Nina conditions a likely positive for North Island hydro generation. OUTPERFORM.

Mercury - Bumpy Waters — 1Q25 Operating Statistics

Mercury NZ Ltd

Mercury - Bumpy Waters — 1Q25 Operating Statistics