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>Mercury (MCY) has reported strong 2Q24 operating statistics, with the key features being strong mass market yield growth and a big jump in wind generation as recently commissioned wind farms and above average wind speeds boost generation volumes.</li><li>We expect MCY to report a strong 1H24 result, only modestly below the record 1H23 result that was aided by record levels of hydro generation.</li><li>We increase our target price +24cps (+4.9%) to NZ$5.13 due to lower interest rates, but MCY remains expensive relative to its peers. UNDERPERFORM.</li></ul>

Mercury (MCY) has reported strong 2Q24 operating statistics, with the key features being strong mass market yield growth and a big jump in wind generation as recently commissioned wind farms and above average wind speeds boost generation volumes.We expect MCY to report a strong 1H24 result, only modestly below the record 1H23 result that was aided by record levels of hydro generation.We increase our target price +24cps (+4.9%) to NZ$5.13 due to lower interest rates, but MCY remains expensive relative to its peers. UNDERPERFORM.

Mercury - Wind Generation Winds Up — 2Q24 Op Stats

Mercury NZ Ltd

Mercury - Wind Generation Winds Up — 2Q24 Op Stats