Interim report 2003

M I G H T Y R I V E R P OW E R INTERIM REPORT 2002

Contents

From the Chairman and Chief Executive . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Interim Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Consolidated Statement of Financial Performance . . . . . . . . . . . . . . . . . . .10 Consolidated Statement of Movements in Equity . . . . . . . . . . . . . . . . . . . .11 Consolidated Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . .12 Consolidated Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . .15 Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Highlights

1 2 3 4 5 6 7 Record Operating

Balance sheet strengthened

Surplus before interest,

with Equity/Total Assets

tax and non-recurring

of 55.7% (2001: 48.3%).

items of $79.4m (2001: $25.8m).

Normal hydro

Full ownership of

Rotokawa geothermal

production of 2,320 GWh

Southdown Co-generation

capacity increased by 25%.

(2001: 1,770 GWh).

secured after exiting onerous Power Supply Agreement.

Retail services consolidated

Hearings on resource

under Mercury Energy brand

consents for hydro

and expanded into all network

stations commenced.

areas north of Lake Taupo.

From the Chairman and Chief Executive

On behalf of the Board and management, we are pleased to report on a very successful six month performance to 31 December 2002.

Highlights Mighty River Power’s operating surplus of $79.4 million before interest and taxes (EBIT) is the best first six months’ result since commencement of business in 1999.

Our business focus over the past four years has been on building a balanced generation base, matching that to a stable retail base and providing strong operating cash flows and a solid balance sheet.

Having succeeded in establishing that business platform, we were in an ideal position to take full advantage of hydrology conditions that were normal for the first time since

Mighty River Power’s formation.

Substantial financial benefits also arose from Mighty River Power’s decision to exit an onerous power supply agreement with Southdown Co-generation Limited. We subsequently took full ownership of the Southdown Co-generation Plant by acquiring NGC Holdings Limited 50% equity interest.

Exiting the Southdown Power Supply Agreement resulted in Mighty River Power releasing a provision from the balance sheet that had recognised the liability associated with the onerous pricing conditions of the agreement.

The release of the provision more than offset the costs of exit, and was a major contributor to a non-recurring gain of $35.4 million reported in the accounts. This culminated in an overall net surplus after taxation of $99.8 million. The termination of the

Power Supply Agreement will also provide ongoing cost reductions for Mighty River Power.

The record operating surplus and the non-recurring gain associated with the Southdown transaction resulted in a significant improvement in the financial strength of the Company, with our equity to assets ratio, improving from 51.1% as at 30 June 2002 to 55.7% as at 31 December 2002.

Our acknowledged position as a low cost generator was enhanced by the Southdown purchase as it creates the potential for greater flexibility in managing our generation portfolio without the constraints imposed by the previous joint venture arrangement. Southdown’s capacity can offset periods of poor hydrology and in better hydrology periods, scarce gas resources can be conserved.

Hydro Volumes

EBIT

Equity/Total Assets

(for 6 months to 31 December)

(for 6 months to 31 December)

(at 31 December)

% $M

GWh 2500

60 50

80

40

2000

60 30

1500 40

20

1000 20

500 0

0

0 1999 2000 2001 2002

2

10

1999 2000 2001 2002

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1999 2000 2001 2002

That acquisition was part of a very busy six months across the business that saw our Waikato River consents process reaching the hearing stage and the consolidation of our retail activities under a single brand, Mercury Energy, which now competes on all networks north of Taupo.

Underpinning all our efforts is a business commitment to “sustainable development.” How we intend to fulfil that commitment is outlined in “An Intricate Balance”. This document is available on the Mighty River Power website at www.mightyriverpower.co.nz.

Our update on sustainability will be available shortly.

Financial Total operating revenue was 33% lower than in the previous corresponding period. However, that was due

primarily to lower wholesale prices than were experienced in 2001.

Over the past three years an increasing number of customers have preferred financial contracts. These are not accounted for in operating revenues, unlike the more traditional physical supply agreements, but are reflected in operating surpluses. This impact is evident in the decrease in operating revenue between the 2000 period and the 2002 period, in contrast to operating surplus increases.

Operating surplus rose 208% to $79.4 million from $25.8 million in the same period last year while the net surplus after taxation figure of $99.8 million, compared with $14 million for the same period last year, includes the non-recurring item of $35.4 million.

Operating cash flow at $47.4 million would have been more than 50% higher

but for the cash costs of exiting the Southdown Power Supply Agreement but was still up from $20 million in the previous comparable period.

The record operating surplus, combined with the non-recurring gains, meant that shareholders’ funds grew from $726.9 million to $847.9 million.

The company has been very successful in improving the strength of its balance sheet with Net Debt at 31 December 2002 reduced to $487.8 million. All balance sheet ratios reflect the continuous improvement since formation with Net Debt/Equity reduced to 57.5% (30 June 2000, 91.4%), Net Debt/Net Debt plus Equity reduced to 36.5% (30 June 2000, 47.8%) and Equity/Total Assets ratio increased to 55.7% (30 June 2000, 40.5%).

NPAT

Total Operating Revenue

Operating Cashflow

(for 6 months to 31 December)

(for 6 months to 31 December)

(for 6 months to 31 December)

$M $M 100

$M

350 300

80

80

250

60

60

200 40

40 150

20

20

50 0

0 1999 2000 2001 2002

0 1999 2000 2001 2002

1999 2000 2001 2002

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3

In December 2002, international credit rating agency, Standard & Poor’s confirmed the Company’s long-term credit rating of BBB, and a short-term rating of A-2, with a stable outlook. Just after balance date the Company renewed its $200 million Cash Advances and Standby Facility until 26 March 2005. We are now considering a capital markets issue which if implemented will lengthen the average term of our funding and diversify our current sole dependence on banks. This will significantly improve the Company’s funding flexibility and reduce refinancing risks.

Generation Hydro production levels were the highest the Company has achieved in the first six month period of the financial year since formation four years ago.

The successful first half of the 2002/03 financial year reflected, in part, the 31% increase in generation volumes to 2,320 gigawatt hours (GWh), up from 1,770 GWh in the previous comparable period – a period that was affected by the hydro shortage of winter 2001.

Mighty River Power’s low-cost operations are based on renewable generation sources on the Waikato River system and geothermal interests near Taupo.

Those resources provide about 90% of our installed capacity and

4

are complemented by the co-generation plant at Southdown and methane gas recovery generation at two sites in Auckland and one in Wellington.

Sustaining our low-cost position while continuing to meet the demands of the country’s fastest growing population base in the upper North Island was behind the expansion of our interests at the Rotokawa Geothermal Plant and acquisition of the remaining 50% of the Southdown Plant.

Our ongoing commitment to geothermal resources led to the expansion of Rotokawa’s capacity by almost 6MW to 32MW. There is potential for further expansion from this field operated in partnership with the Tauhara North No.2 Trust.

Our application for resource consents for the Waikato River and Lake Taupo operations was heard in late 2002. The application seeks more flexibility in the storage range and minimum releases of several lakes in that operation.

This flexibility will take on increased national significance as Maui declines. A decision on the consents is expected in April 2003.

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Retail Whilst good hydrology was a fundamental driver in our improved results, improved processes within our retail business also reduced costs and delivered better quality services to customers.

During the second half of 2002 our mass-market retail business was consolidated under the Mercury Energy brand, with the transfer of around 23,000 First Electric customers to Mercury Energy.

We also further built on the launch of our “Duo” product that provides customers with a single bill for both gas and electricity.

We believe we are providing a range of products and services that satisfy our customers and this is reflected in improvements in the percentages of customers paying on time and a continuing reduction in the number of overdue debtors.

The standardisation of 10% prompt payment discounts for all residential accounts and additional rewards (2% discount) for electronic payment, combined with monthly meter reading wherever physically possible, have simplified customer processes and reduced the source of uncertainties for customers.

This has shown up in a significant reduction in the annual rate of customer contacts with the Company providing cost, service and quality benefits to Mercury Energy.

Customer numbers remained

reasonably constant throughout the period with growth in some markets offsetting the loss of some First Electric customers who opted out of the full services and prompt payment discounts offered by Mercury Energy.

The relatively low churn rates now being experienced by Mercury Energy are testimony to the fact that our pricing and the superior service we are offering represent value to customers. This is a position that has been hard won over a difficult period since deregulation post-1999.

The combined results of the product and brand simplification and service improvements underscores Mercury Energy’s ability to provide leadership in energy retailing services in an expanded geographic area of focus - the upper North Island.

Our market share based on retail customer numbers is broadly equivalent to the Company’s generation market share and our intention is to focus on building our existing retail presence in this geographic area.

To spread our retail base more widely would incur the inefficiencies and complexities of dealing with a greater number of network companies. They each have different pricing and contractual requirements and the risk for Mercury Energy is entering those markets without the customer numbers to justify the additional overhead. Simplifications for all retailers in dealing with these

complexities would be a catalyst to review this position.

In the commercial contracts areas we are providing a variety of options to businesses seeking firm, fixed term contracts for energy supply throughout New Zealand. We have expanded our range of products to include wholesale market services and financial contracts in addition to the more traditional physical supply arrangements.

These financial contracts can have significant advantages for businesses by allowing them to actively manage down their demand during very high wholesale market price periods, thereby lowering their overall cost of energy.

After three years of deregulation, we believe we are now seeing the same trends that have occurred in markets with longer experience in full deregulation. In the mass markets customers have a preference for suppliers such as Mercury Energy that provide “no hassle” service quality and reliability.

In the contracts market, there is a growing realisation of the benefits of fixed price certainty for a high proportion of customer demand and the use of straightforward contracts that do not expose customers to fuel supply risks.

By concentrating on these features we expect to maintain acceptable margins for our retail business while continuing to provide the products and services our customers prefer to receive.

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5

Stakeholders Previous Interim and Annual Reports detail our developing relationships with the stakeholders in our business. These relationships recognise that the lifeblood of our business is the natural resources in the Greater Waikato region. Our commitment to sustainable development is based on our desire to demonstrate to the wider community that we are responsible managers of all our generation resources with a balanced and fair approach to stakeholder interests.

During the reporting period, we committed to the establishment of the Waikato Catchment Ecological Enhancement Trust for the purpose of undertaking ecological mitigation and enhancement works and overseeing monitoring of the environmental effects of the hydro operation in the Waikato/Taupo catchment. This Trust will draw on the considerable body of knowledge about Lake Taupo and the Waikato River developed during our extensive resource consents applications process.

Our desire to protect and nurture the natural resources we manage is also shared by the tangata whenua associated with Lake Taupo and the Waikato River.

Our partnerships with iwi have been given further depth as we continue to develop our working relationships.

Our presence within the communities in which we carry out our business continues to grow and a detailed list of the organisations that we support appears in our 2002 Annual Report.

6

Looking Ahead The recently confirmed depletion of commercially recoverable Maui gas by 2007 creates new opportunities for Mighty River Power.

We believe there is further room for geothermal expansion with significant untapped generation capacity in fields throughout the Central North Island equivalent to the output of a large, gas fired, combined cycle gas turbine.

Small hydro schemes, biomass and methane based generation also have the potential for further development.

Therefore, we welcomed the recent Government announcement to give more weighting to the benefits of generation from renewable sources when the relevant local regulatory authorities are considering application under the Resource Management Act. Mighty River Power continues to pursue a policy of incremental improvements in generation capacity from its existing assets through technology upgrades and expansions such as the recent capacity upgrade at Rotokawa. We are currently working with Tuaropaki Trust to expand the Mokai power station from 55MW to 93MW with a view to commissioning the additional capacity by winter 2005.

In time, the Pohokura and Kupe gas fields will be developed to replace Maui and we anticipate little difficulty in securing ongoing gas supplies for Southdown. The current gas supply contract ends in 2006 but the plant

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is strategically located alongside Auckland’s load centre. Therefore, with a long-term gas transmission arrangement in place, we are well placed to secure the relatively small volumes of gas required beyond 2006 to continue to provide the plant’s important security of supply role to Auckland.

The depletion of the Maui fields and the implications of the government’s climate change policy will impact adversely on the costs of those generators with a balance of generation more heavily weighted towards non-renewable fuel sources.

Securing fuel supply will be the most important issue for generators in the near future. Mighty River Power’s focus on renewable resources means we are well placed to maintain and improve our contribution to this crucial sector of the national economy.

We have a sound generation base using diverse fuels and plant.

That is matched to a solid retail base that allows us to benefit from opportunities in the wholesale market.

That is a position that won’t change.

We have also successfully developed a solid and stable balance sheet – a position that will be further strengthened by our continuing debt management programme. Again, this places us well to invest in future growth opportunities that may become economic with the changing fuel supply circumstances.

Our People An experienced executive team supports Mighty River Power’s platform of generation assets, retail customers and a sound balance sheet.

Over the past few years our people committed to a journey which set out to strengthen the financial capability of the Company, achieve operating efficiencies and to provide service quality improvements. The results contained in this report confirm the success of the tremendous effort and enthusiasm of our people, and the underlying support they have had from their families.

The next phase of the journey will have new challenges, with a particular focus on the country’s need for new sources of electricity, and the efficient use of scarce resources.

During the period, there has been a change to our Board, with Hilary Webber’s valuable contribution ending upon the completion of her term of appointment. We welcome her replacement, Caroline Ball.

Given the leadership, organisational and technical ability within Mighty River Power, the Board is confident the considerable progress demonstrated by the Company will continue.

Rob Challinor

Doug Heffernan

Chairman

Chief Executive

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Interim Financial Statements For the six months ended 31 December 2002

Consolidated Statement of Financial Performance . . . . . . . . . . . . . . . . . . .10 Consolidated Statement of Movements in Equity . . . . . . . . . . . . . . . . . . . . .11 Consolidated Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . .12 Consolidated Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . .15

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Consolidated Statement of Financial Performance For the six months ended 31 December 2002

Year ended 30 June 2002 Audited $ 000

Note

767,758 Sales (182,153) Less transmission, line and metering charges

Six months ended 31 December 2002

Six months ended 31 December 2001

Unaudited $ 000

Unaudited $ 000

316,019

447,230

(86,343)

(99,950)

3,157 Interest income

1,512

1,822

6,346 Other revenue

3,863

3,070

235,051

352,172

79,417

25,764

595,108 Total Operating Revenue

Operating surplus before interest 87,177 and non-recurring items 3,157 Interest income (29,815) Interest expense 6,772 Non-recurring items

2

67,291 Surplus Before Taxation 20,208 Taxation expense 47,083 Net Surplus After Taxation

3

1,512

1,822

(14,062)

(17,897)

35,362

7,576

102,229

17,265

2,476

3,228

99,753

14,037

The notes set out on pages 15 to 19 form part of, and should be read in conjunction with, these Interim Financial Statements.

10

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Consolidated Statement of Movements in Equity For the six months ended 31 December 2002

Year ended 30 June 2002

Six months ended 31 December 2002

Six months ended 31 December 2001

Audited $ 000

Unaudited $ 000

Unaudited $ 000

759,965

712,882

47,083 Net surplus after taxation

99,753

14,037

Total Recognised Revenues 47,083 and Expenses for the Period

99,753

14,037

(11,800)

0

847,918

726,919

712,882 Equity at Beginning of the Period

Distributions to owners: 0 Final dividend paid 759,965 Equity at End of the Period

The notes set out on pages 15 to 19 form part of, and should be read in conjunction with, these Interim Financial Statements.

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Consolidated Statement of Financial Position As at 31 December 2002

Year ended 30 June 2002

Six months ended 31 December 2002

Six months ended 31 December 2001

Audited $ 000

Unaudited $ 000

Unaudited $ 000

377,561 Share capital

377,561

377,561

382,404 Reserves

470,357

349,358

759,965

847,918

726,919

59,896

144,593

0

881

209,402 Loans

394,046

423,787

343,245

453,942

569,261

73,112

64,975

2,907

3,272

21,251 Deferred taxation

27,241

18,871

22,063 Energy contracts – current portion

11,407

23,360

104,345

95,509

920

3,050

219,932

209,037

1,521,792

1,505,217

Equity

Non-Current Liabilities 133,766 Energy contracts 77 Obligations assumed on acquisition of businesses

Current Liabilities 84,255 Payables and accruals 3,191 Provisions

252,657 Loans – current portion 1,685 Obligations assumed on acquisition of businesses 385,102 1,488,312 Total Equity and Liabilities

The notes set out on pages 15 to 19 form part of, and should be read in conjunction with, these Interim Financial Statements.

12

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Consolidated Statement of Financial Position (continued) As at 31 December 2002

Year ended 30 June 2002

Six months ended 31 December 2002

Six months ended 31 December 2001

Audited $ 000

Unaudited $ 000

Unaudited $ 000

1,392,038

1,370,127

7,119

11,000

0

9,275

3,487 Other non-current assets

8,976

4,693

Deferred taxation on obligations assumed 7,665 on acquisition of businesses

6,229

9,450

1,414,362

1,404,545

10,619

6,274

84,204

84,080

2,939

3,317

Non-Current Assets 1,355,059 Property, plant and equipment 7,119 Investments 8,712 Intangibles

1,382,042

Current Assets 3,275 Cash 99,410 Receivables and prepayments 2,815 Inventories 0 Energy contracts – current portion 770 Provision for taxation 106,270 1,488,312 Total Assets

0

282

9,668

6,719

107,430

100,672

1,521,792

1,505,217

The notes set out on pages 15 to 19 form part of, and should be read in conjunction with, these Interim Financial Statements.

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Consolidated Statement of Cash Flows For the six months ended 31 December 2002

Year ended 30 June 2002

Six months ended 31 December 2002

Six months ended 31 December 2001

Unaudited $ 000

Unaudited $ 000

254,123

439,828

1,190

487

(182,767)

(394,554)

(36,339) Interest paid

(14,888)

(22,239)

(10,400) Taxation paid

(10,303)

(3,497)

47,355

20,025

833

0

Audited $ 000

Note

Cash Flows from Operating Activities Cash was provided from (applied to): 659,457 Receipts from customers 4,829 Interest received (539,675) Payments to suppliers and employees

77,872 Net Cash Inflow from Operating Activities

4

Cash Flows from Investing Activities Cash was provided from (applied to): 820 Sale of property, plant and equipment 3,881 Proceeds from investments

0

0

(19,369)

(8,647)

(6,800)

0

(300) Purchase of joint ventures and subsidiaries

9,293

0

(16,696) Net Cash Outflow from Investing Activities

(16,043)

(8,647)

(12,168)

(10,504)

(11,800)

0

(23,968)

(10,504)

(21,097) Purchase of property, plant and equipment 0 Purchase of other non-current assets

Cash Flows from Financing Activities Cash was provided from (applied to): (63,301) Loans repaid 0 Dividends paid (63,301) Net Cash Outflow from Financing Activities (2,125) Net Increase (Decrease) in Cash Held 5,400 Cash Balance at Beginning of the Period 3,275 Cash Balance at End of the Period

7,344

874

3,275

5,400

10,619

6,274

The notes set out on pages 15 to 19 form part of, and should be read in conjunction with, these Interim Financial Statements.

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Notes to the Consolidated Financial Statements For the six months ended 31 December 2002

1. Statement of Accounting Policies The interim financial statements presented here are the unaudited consolidated financial statements of Mighty River Power Limited for the six months ended 31 December 2002.

These interim financial statements have been prepared in accordance with FRS-24 Interim Financial Statements, and should be read in conjunction with the Annual Report for the period ended 30 June 2002. The accounting policies used in the preparation of these interim financial statements are consistent with those used in the annual financial statements and the previously published interim financial statements.

2. Non-Recurring Items Year ended 30 June 2002

Six months ended 31 December 2002

Six months ended 31 December 2001

Audited $ 000

Unaudited $ 000

Unaudited $ 000

0 Exit from Southdown power supply agreement

43,153

0

0 Write-off of Southdown goodwill

(8,243)

0

0

8,000

140

0

8,000 Movement in obligations assumed on acquisition (1,053) Loss on disposal of business (365) Net gain (loss) on insurance claim 190 Other 6,772

208

0

104

(424)

35,362

7,576

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Notes to the Consolidated Financial Statements (continued) For the six months ended 31 December 2002

3. Taxation Expense Year ended 30 June 2002

Six months ended 31 December 2002

Six months ended 31 December 2001

Audited $ 000

Unaudited $ 000

Unaudited $ 000

102,229

17,265

33,736

5,697

(24,470)

0

(1,590)

(2,202)

(5,200)

(267)

0

0

2,476

3,228

804

(3,243)

10,635 Deferred taxation

1,672

6,471

20,208

2,476

3,228

67,291 Surplus before taxation 22,206 Taxation at 33 cents

Taxation effect of permanent differences: 0 Release from Southdown energy contract (4,134) Amortisation of energy contracts 2,332 Other permanent differences (196) Prior year adjustments 20,208 Taxation expense

Analysis of taxation expense: 9,573 Current taxation

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Notes to the Consolidated Financial Statements (continued) For the six months ended 31 December 2002 4. Reconciliation of Net Surplus After Taxation with Net Cash Flows from Operating Activities Year ended 30 June 2002

Six months ended 31 December 2002

Six months ended 31 December 2001

Audited $ 000

Unaudited $ 000

Unaudited $ 000

47,083 Net Surplus After Taxation Add (less) non-cash items:

99,753

14,037

51,286 Depreciation

25,967

25,807

(10,373)

(11,723)

469

561

542

361

(842)

(10,168)

(23,565) Amortisation of energy contracts 1,124 Amortisation of goodwill 858 Amortisation of other non-current assets Movement in obligations assumed (12,337) on acquisition of businesses 0 Release from Southdown energy contract

(74,153)

0

8,243

0

0

(67)

4,400

(116)

(45,747)

4,655

Decrease (increase) in receivables 78,841 and prepayments

15,206

94,171

688 Decrease (increase) in inventories

(124)

186

(11,427)

(93,556)

0 Write-off of Southdown goodwill (4,507) Foreign exchange gains on USD loan 1,384 Other non-cash items 14,243

Add (less) movements in working capital:

(74,357) (Decrease) increase in payables and accruals

(8,898)

(6,739)

10,635 (Decrease) increase in deferred taxation

(790) (Decrease) increase in provision for taxation

7,426

6,470

15,017

2,183

532

(9,603)

0

Add (less) items classified as investing activities: Working capital acquired with purchase 19 of joint ventures and subsidiaries 1,510 Movement in other non-current assets 1,529 77,872 Net Cash Inflow from Operating Activities

769

801

(8,834)

801

47,355

20,025

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Notes to the Consolidated Financial Statements (continued) For the six months ended 31 December 2002

5. Southdown Exit from Southdown Power Supply Agreement On 28 November 2002 the Group exited from the Southdown Power Supply Agreement. The net cost of exiting from this arrangement, including a termination payment and reversal of an onerous energy contract provision, amounted to $43.153 million.

Acquisition of Additional Interest in Southdown Joint Venture On 30 November 2002 the Group acquired the remaining 50% interest in the Southdown joint venture. Details of the acquisition are as follows:

$000

$000

Net assets acquired: Cash

9,393

Other current assets

2,831

Property, plant and equipment

(12,434)

Non-current liabilities

(48,500)

Discount on acquisition Cash paid

18

61,842

Current liabilities

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13,132 (13,032) 100

Notes to the Consolidated Financial Statements (continued) For the six months ended 31 December 2002

6. Commitments Year ended 30 June 2002

Six months ended 31 December 2002

Six months ended 31 December 2001

Audited $ 000

Unaudited $ 000

Unaudited $ 000

8,633

17,626

9,148

7,522

17,781

25,148

Capital Commitments 13,000 Commitments for future capital expenditure Operating Commitments 7,499 Commitments for future operating expenditure 20,499

7. Contingencies Mighty River Power Limited has guaranteed payment obligations of $20.0 million pursuant to a letter of credit provided by a bank in favour of the market clearing company (M-Co Clearing House Limited).

Mighty River Power Limited has a number of potential on-going commitments with community based groups.

Mighty River Power Limited has a contingent liability in respect of the Accident Compensation Corporation’s residual claims levy. The levy is payable annually from May 1999 for up to fifteen years. The Group’s future liability is a function of the Accident Compensation Corporation’s unfunded liability for past claims and future payments to employees.

8. Subsequent Events There have been no events subsequent to balance date that would affect the fair presentation of these interim financial statements.

26 February 2003

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Directory

Board of Directors

Registered Office

Rob Challinor Chairman Carole Durbin Deputy Chair Caroline Ball (from November 2002) Ian Fraser Sandy Maier David McConnell Tania Simpson Wayne Walden Hilary Webber (until November 30, 2002)

Level 9, KPMG Legal Building 22 Fanshawe Street PO Box 90-399, Auckland Telephone: 09 308 8200 Facsimile: 09 308 8209 Email: enquiries@mightyriver.co.nz www.mightyriverpower.co.nz

Executive Management Doug Heffernan Chief Executive Colleen Cann Organisation Development Manager Tim Densem General Manager – Generation Assets John Foote General Manager – Retail Tony Gray Chief Financial Officer Stuart Lush General Manager – Generation Development William Meek Enterprise Risk Strategist James Moulder General Manager – Trading David Reeve Industry Strategy Manager Neil Williams General Manager – External Affairs

Company Secretary Richard Taylor

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Mighty River Power generates the bulk of its power from eight dams on the Waikato River and geothermal resources near Taupo. That generation is complemented by the Southdown Co-generation Plant in Auckland and methane gas recovery sites in Auckland and Wellington.

Current generation assets are: Hydro Aratiatia 84 MW Ohakuri 104 MW Atiamuri 84 MW Whakamaru 100 MW Maraetai 360 MW Waipapa 58 MW Arapuni 197 MW Karapiro 96 MW Geothermal Rotokawa 32 MW Co-generation Southdown 122MW Methane Gas Recovery Rosedale (Auckland)* 3MW Greenmount (Auckland)* 5MW Silverdale (Wellington)* 3MW (*majority owned by Mighty River Power)

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