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

Thematic (Sector/Industry)

New zealand Utilities / Thematic (Sector/Industry)

<ul><li>April 2023 saw continued strong hydro generation (particularly North Island), and a return to more favourable conditions for Meridian Energy (MEL).</li><li>Whilst ASX futures remain stubbornly high, there are further signs new generation costs are falling with the recent NSW tender resulting in a solar price below A$35/MWh and wind below A$50/MWh. </li><li>With an additional +661MW/+1,890GWh (+4%) added to the development pipeline, and thermal generation costs off their peaks, we see downward pressure on the futures curve — which is positive from a political/regulatory perspective, albeit not from a long-term earnings perspective.</li></ul>

April 2023 saw continued strong hydro generation (particularly North Island), and a return to more favourable conditions for Meridian Energy (MEL).Whilst ASX futures remain stubbornly high, there are further signs new generation costs are falling with the recent NSW tender resulting in a solar price below A$35/MWh and wind below A$50/MWh. With an additional +661MW/+1,890GWh (+4%) added to the development pipeline, and thermal generation costs off their peaks, we see downward pressure on the futures curve — which is positive from a political/regulatory perspective, albeit not from a long-term earnings perspective.

Power Points: Futures Pressure Downwards — May 2023