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) delivered a FY25 EBITDAF result ahead of expectations, though challenging hydro conditions meant it was well below FY24 and normalised hydro earnings.</li><li>First-time FY26 EBITDAF guidance was strong due to normalised hydro earnings increasing +NZ$50m and favourable hydro conditions adding a further +NZ$50m.</li><li>Normalised NPAT of NZ$225m was +NZ$21m better than forecast, with MCY’s effective interest rate falling -1.4pp to ~5.4% in 2H25 from 1H25.</li></ul>

Mercury (MCY) delivered a FY25 EBITDAF result ahead of expectations, though challenging hydro conditions meant it was well below FY24 and normalised hydro earnings.First-time FY26 EBITDAF guidance was strong due to normalised hydro earnings increasing +NZ$50m and favourable hydro conditions adding a further +NZ$50m.Normalised NPAT of NZ$225m was +NZ$21m better than forecast, with MCY’s effective interest rate falling -1.4pp to ~5.4% in 2H25 from 1H25.

Mercury Guidance Rising With The River—FY25 Result

Mercury NZ Ltd

Mercury Guidance Rising With The River—FY25 Result