Mercury NZ : Dividend Reinvestment Plan

STOCK EXCHANGE LISTINGS: NEW ZEALAND (MCY) / AUSTRALIA (MCY)

NEWS RELEASE
onlyDividend Reinvestment Plan
22 February 2022 - Mercury advises that documents relating to the newly established Dividend Reinvestment Plan will be sent
use
to shareholders today.
The Dividend Reinvestment Plan will apply to the FY2022 interim dividend.
Attached to this announcement is a copy of the letter to be sent to shareholders, the Dividend Reinvestment Plan Offer
Document and Participation Notice.
ENDS
Howard Thomas
General Counsel and Company Secretary
personalFor
Mercury NZ Limited
For investor relations queries, please contact:	For media queries, please contact:
Tim Thompson	Shannon Goldstone
Head of Treasury and Investor Relations	Head of Communications
0275 173 470	Media phone: [phone]

ABOUT MERCURY NZ LIMITED

Mercury's mission is energy freedom. Our purpose is to inspire New Zealanders to enjoy energy in more wonderful ways and ur goal is to be New Zealand's leading energy brand. We focus on our customers, our people, our partners and our country;

maintain a long-term view of sustainability; and promote wonderful choices. Mercury is energy made wonderful. Visit us at: www.mercury.co.nz

DEAR SHAREHOLDER.

DIVIDEND REINVESTMENT PLAN.

For personal use only

If you wish to participate in the Plan for the upcoming interim dividend, you need to apply by no later than 5pm on 18 March 2022.

THE PRICE

The price of the Shares issued or transferred under the Plan will be based on the market price before the date of issue or transfer. Mercury may choose to offer these Shares to you at a discount to this market price. If a discount is to apply, it will be announced at the same time as details of the dividend are announced.

The first dividend to which the Plan will apply is the 8 cents per Share dividend, being

• complete the enclosed Participation Notice and return it to Computershare Investor Services.

or

• apply online by visitingwww.investorcentre.com/nz;

If you wish to participate in the Plan you need to:

HOW TO PARTICIPATE

DEAR

onlySHAREHOLDER.

MERCURY DIVIDEND REINVESTMENT PLAN.

useMercury NZ Limited ('Mercury')

has established the Mercury Dividend Reinvestment Plan ('Plan'), offering you the

personalopportunity to reinvest the net proceeds of dividends from some or all of your existing Mercury ordinary shares ('Shares') in additional, fully paid Shares.

By participating in the Plan you can increase your investment in Mercury without incurring b okerage charges. The enclosed booklet xplains how the Plan works.

ELIGIBILITY

Mercury has determined that, for the time being, the Plan is only available to shareholders residing in New Zealand or Australia. Mercury may amend

Foreligibility requirements at any time, at its sole discretion.

YOUR CHOICES

Participation in the Plan is optional and it's flexible too. You may elect to participate in respect of all or only some of your Shares (in which case you'll receive a mixture of both cash dividends and Shares) and you may change your mind if it doesn't suit your investment needs in the future.

If you wish to continue to receive only cash dividends, you don't need to do anything.

the interim ordinary dividend to be paid on 1 April 2022. Mercury has determined that Shares issued or transferred under the Plan in respect of the FY2022 interim dividend will be issued or transferred at a discount of 2.5% to the market price.

Mercury will determine whether the Plan will apply to future dividends, and whether Shares issued or transferred under the Plan in respect of future dividends will be issued or transferred at a discount, at the time future dividend payments are determined.

Please read the information in the booklet carefully. You should consult your financial adviser or Computershare if you have any questions in relation to any of the content in the booklet.

Yours sincerely,

PRUE FLACKS // CHAIR

2	DEAR SHAREHOLDER

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QUESTIONSAND ANSWERS.

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WHAT IS THE MERCURY DIVIDEND REINVESTMENT PLAN ("PLAN")?

The Plan enables shareholders to reinvest all or part of the net proceeds of cash dividends paid on their Mercury Shares in additional Mercury Shares, instead of receiving those dividends in cash.

AM I ELIGIBLE TO PARTICIPATE?

As at the date of the Offer Document, the Plan is only available to shareholders who have an address on the Mercury share register in New Zealand or Australia.

Mercury may amend this policy at any time, at its sole discretion.

IS THERE A MINIMUM NUMBER OF SHARES THAT I NEED TO OWN BEFORE I CAN PARTICIPATE?

No.

HOW MUCH DOES IT COST?

There are no charges for participating in or withdrawing from the Plan or changing the number of Shares nominated by you that will participate in the Plan. No brokerage or commission costs will be payable in respect of the Shares you receive under the Plan.

REGISTRAR IN AUSTRALIA

Computershare Investor Services

Pty Limited

Postal address:

GPO Box 3329 Melbourne VIC 3001 Australia

You can also scan your Participation Notice and email it to [e-mail].

Online Participation: You can apply online by visiting the website of the Share Registrar, Computershare Investor Services, at www.investorcentre.com/nz.

Log into www.investorcentre.com/nz, and select 'My Profile'. Then select 'Reinvestment Plans' from the left-handmenu. Select Mercury NZ Limited in the holding line and 'Apply' to select your participation level. If you do not have an Investor Centre account, you will need your CSN/Investor Number and FIN to register. If you don't have this information available you can email enquiry@computershare. co.nz or phone [phone].

If you wish to participate in the Plan for the upcoming dividend, you will need to return your Participation Notice by no later than 5pm on 18 March 2022.

with the terms and conditions of the Plan). Note that you will continue to receive cash dividends on any of your Shares that are not part of the Plan; or

Specific Participation: Please see the Offer Document for details on specific participation in the Plan if this is relevant to you.

WHAT IF I DON'T WANT TO

PARTICIPATE IN THE PLAN?

If you do not wish to participate in the Plan, you do not need to do anything. You will continue to receive cash dividends on your Shares.

WHAT IF I CHANGE MY MIND?

You can join the Plan or vary your participation at any time online via Mercury's Share Registrar, Computershare Investor Services, at www.investorcentre.com/nz

or by delivering an updated Participation Notice to the Registrar. Participation Notices are available online or from the Registrar on request.

If you choose to participate in the Plan and then change your mind, you can opt out by informing the Registrar either online or by completing a Cancellation Form (available

For

HOW DO I PARTICIPATE IN THE PLAN?

You should read the Offer Document carefully before deciding whether to participate. You can elect to participate at any time by completing and returning a Participation Notice to Mercury's Registrar, Computershare Investor Services or by making an election online.

REGISTRAR IN NEW ZEALAND Computershare Investor Services Limited

Postal address: Private Bag 92119 Victoria Street West Auckland 1142 New Zealand

WHAT OPTIONS DO I HAVE

REGARDING PARTICIPATING

IN THE PLAN?

Participation in the Plan is optional. If you wish to participate in the Plan, you may elect:

Full participation: Where all of your Shares (including Shares held now and acquired in the future, including where issued or transferred to you under the Plan) will be treated as participating in the Plan for all future dividends to which the Plan applies (unless you vary your participation in the Plan in accordance with the terms and conditions of the Plan); or

Partial participation: Where only the number of Shares nominated by you will participate in the Plan for all future dividends to which the Plan applies (unless you vary your participation in accordance

online or from the Registrar on request).

Such variation or cancellation will be effective immediately provided that any online application or Participation Notice or Cancellation Form that is received after 5pm on an Election Date will be effective for the following dividend.

WHAT PRICE WILL

SHAREHOLDERS PAY?

The price of Shares is based on the average of the daily volume-weighted average sale price of Mercury Shares sold on the NZX Main Board over a period of time. Please see the Offer Document for further details. The Share price may be subject to a discount set by Mercury from time to time. The discount, if any, as well as the pricing period will be announced by Mercury to Shareholders at the same time the dividend is announced for the relevant period.

MERCURY DIVIDEND REINVESTMENT PLAN

3

onlyCAN THE PLAN BE CHANGED IN THE FUTURE?

Yes. Mercury may change, suspend or cancel the Plan at its sole discretion. If that occurs, notice will be given through

usethe NZX and ASX as required by the terms and conditions of the Plan.

CAN I SELL THE SHARES?

Yes. Shares acquired under the Plan can be sold at any time.

ARE THERE ANY TAX IMPLICATIONS?

The taxation consequences for each shareholder should they elect to participate

personalin the Plan will depend on their particular circumstances. Accordingly, each shareholder should consult their own tax adviser as to the taxation implications of the Plan. Mercury does not accept any responsibility for the financial or taxation effects of a shareholder's participation or n n-participation in the Plan.

WHERE CAN I FIND INFORMATION ON THE MERCURY DIVIDEND POLICY?

You can find a copy of the Mercury dividend policy at www.mercury.co.nz/investors/ dividends.

HOW DO I FIND OUT HOW MANY

SHARES I HAVE RECEIVED?

Shortly after the issue or transfer of Shares under the Plan, Computershare Investor Services will send all Plan participants an updated Securities Transaction Statement,

Foralong with a dividend remittance advice.

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