OUR DIVIDEND POLICY

Mercury’s dividend policy is to make distributions with a pay-out ratio of 70% to 85% of Free Cash Flow on average over time subject to the board’s due consideration of the Company’s working capital requirements and medium-term asset investment programme; a sustainable financial structure for the company, recognising the Company’s targeted long-term credit rating of BBB+ assigned by S&P (or equivalent from another recognised credit rating agency); and the risks from predicted short and medium-term economic, market and hydrological conditions, and estimated financial performance.

The Board will seek to maintain consistency on a dividend per share basis from year to year while maintaining the dividend pay-out ratio on average over time.

Free Cash Flow is Net Cash Flow from Operating Activities less normalised stay-in-business capital expenditure.

Dividend payments are expected to be split into an interim dividend paid in April, targeting 40% of the total expected dividend for the financial year, and a final dividend paid in September.

It is the intention of the Board to attach imputation credits to dividends to the extent they are available. Details of past dividends and declared dividends announced can be found below under Historical Dividends.

DIVIDEND REINVESTMENT PLAN

Mercury provides Shareholders with a Dividend Reinvestment Plan ("DRP"), through which they are able to increase their investment in Mercury directly.

Mercury shareholders under the DRP, may elect to reinvest the net proceeds of cash dividends payable on all or some of their fully paid ordinary shares in Mercury by acquiring further fully paid shares, free of brokerage charges. Any shareholders who decide not to participate in the Dividend Reinvestment Plan will continue to receive their dividends in cash.

Please refer to the offer document below for details on reinvestment options.