Vector FY17 Interim Results

FINANCIAL RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2016
CREATING GROWTH OPPORTUNITIES

Highlights:
 Net profit after tax from continuing operations
1
for the six months to 31 December 2016 rises
64.5% to $107.1 million
 Adjusted EBITDA
2
from continuing operations rises 1.4% to $257.0 million
 Group revenue from continuing operations rises 5.9% to $625.6 million
 New electricity and gas connections rise 19% to 6,490
 Smart meter fleet rises to 1.2 million. Deployment commences in Australia.
 Investments in new technology continue with the commissioning of a 2.3 MWh network battery
in Glen Innes, the expansion of the home battery fleet to 445 from 291 and the expansion of the
electric vehicle charging infrastructure to 21 chargers.
 The Commerce Commission’s review of the Input Methodologies broadly positive – stability of
approach, revenue cap, and supportive of investment in new technologies - providing regulatory
certainty through to 2025.
 Interim dividend increases by 0.25 cents per share to 8 cents per share

New Zealand’s leading energy infrastructure company Vector today announces improved earnings as it
continues to deploy new technologies to give choice and control to its customers and create new
opportunities for growth.

Net profit after tax from continuing operations for the six months to 31 December 2016 rose 64.5% to
$107.1 million, from $65.1 million in the same period last year.

The result was driven by growth in capital contributions - due to strong growth in Auckland - and lower
finance costs as we repaid debt following the sale of Vector Gas in April 2016. It also included a $15.0
million one-off gain after the Court of Appeal ruled in Vector’s favour over the tax treatment of the sale
of rights to use our Penrose to Hobson Street tunnel in Auckland.
Group revenue from continuing operations rose 5.9% to $625.6 million, from $590.6 million in the prior
period. Adjusted EBITDA from continuing operations was up 1.4% to $257.0 million from $253.5 million
in the same period last year.

1
That is, excluding Vector Gas, which was sold to First State Funds on 20 April 2016 for $952.5 million. Vector
Gas owned gas transmission pipelines and gas distribution networks outside Auckland.
2
Adjusted EBITDA is a non-GAAP profit measure. For a comprehensive definition and reconciliation to the GAAP
measure of net profit refer to pages five of this release.

MEDIA RELEASE
24 February 2017

2

MEDIA RELEASE
24 February 2017

Adjusted EBITDA for the continuing regulated networks business decreased 0.4% to $195.7 million,
from $196.4 million. A combined 19.0% increase in new electricity and gas connections was offset by
the effects of warmer weather and the continuing decline in household power consumption.
Adjusted EBITDA in the unregulated businesses rose 2.3% to $84.1 million from $82.2 million last year,
with continuing growth in the New Zealand metering business and a one-off insurance settlement
3

offsetting the costs associated with the expansion of metering into Australia, the commercialisation of
new technologies and ongoing low hydrocarbon prices.

Vector Chairman Michael Stiassny said: “Vector, with the support of its majority shareholder Entrust, is
embracing the technological changes that are disrupting the energy sector. We are doing this to ensure
the ongoing relevance of our energy networks, to create solutions for our customers, and to create new
opportunities for growth.”

Key developments in the period included: the transition of Vector Gas to its new owners was completed
in September; the commissioning of a 2.3 MWh network battery in Glen Innes; the continued expansion
of our smart meter fleet, including our first deployment of meters in Australia (10,000 as at the date of
this release); the expansion of the in-home battery fleet to 445 from 291 at the same time last year; and,
with the support of our majority shareholder Entrust, the expansion of the electric vehicle charging
infrastructure and the formation of a partnership with Auckland Council to drive energy efficiency in the
city.

“Following the Commerce Commission’s review of the regulatory framework that governs our energy
networks, we are doing all of this in an environment of stable economic regulation that is supportive of
the change. New Zealand is in the fortunate position of having a regulator that recognises it must keep
pace with the change and technological disruption in energy markets,” Mr Stiassny said.

RESULTS SUMMARY

Six months ended 31 December
2016
$M
2015
$M
Change
(%)
Revenue (continuing operations)
625.6 590.6 5.9
Adjusted EBITDA (continuing operations)
257.0 253.5 1.4
Net profit after tax (continuing operations)
107.1 65.1 64.5
Operating cash flow (inc. discontinued operations)
226.3 248.8 (9.0)
Dividend per share (cents)
8.0 7.75 3.2



3
In respect of damage sustained to Liquigas facilities in Lyttelton during the 2011 earthquake.

3

MEDIA RELEASE
24 February 2017

FINANCIAL STRENGTH
“Following the sale of Vector Gas, gearing
4
as at 31 December 2016 was 43.9% compared with 43.7%
at the end of June 2016 and 53.4% at 31 December 2015. The proceeds from the sale of Vector Gas
were applied to debt reduction. We are now redeploying this capital to support our new growth
opportunities.

“Vector has increased its dividend by at least 0.25 cents every year since it listed in 2005. The board
has considered our growth prospects, the strength of our balance sheet following the sale of Vector
Gas, and the stability in our regulatory regime through to 2025. We remain committed to increasing
dividends in line with historical practice, contingent on the company maintaining an investment-grade
(BBB) credit rating and continuing to meet its investment requirements.

“We will review this approach following the next electricity reset in 2020. Our ability to maintain this
approach beyond that point will be impacted by a range of factors, including the interest rates prevailing
at the time of the next reset, and our success in re-investing the proceeds of the sale of Vector Gas.

“Accordingly, the directors have declared an interim dividend of 8.0 cents per share, up 0.25 cents on
the prior year’s interim dividend of 7.75 cents per share. The record date for dividend entitlements is 30
March 2017 and the payment date is 13 April 2017,” Mr Stiassny said.

Vector Group Chief Executive Simon Mackenzie said: “Vector has long understood that new energy
technologies such as smart meters, batteries, solar panels, new software and energy management
solutions and electric vehicles would disrupt and transform our industry. Rather than resist, we decided
to embrace change for three key reasons.

“Firstly, technology is providing alternative ways to enhance our network, and delivering tangible
economic benefits. Secondly, technology is significantly augmenting our ability to deliver solutions that
give customers the choice and control they want in the management of their energy needs. Finally,
technology is facilitating Vector’s drive to create a sustainable and environmentally responsible
company.

“We are determined to develop solutions that are right for Auckland and right for consumers, both now
and in our new energy future. Our first installation of a utility-scale battery in Glen Innes is tangible
evidence of this approach, but this thinking permeates all aspects of our business.”



4
Gearing is defined as net economic debt to net economic debt plus equity. Economic debt means the
amount payable upon maturity, including the impact of hedging.

4

MEDIA RELEASE
24 February 2017

OUTLOOK:
Mr Stiassny concluded: “Vector is excited by the opportunities that are emerging within the energy
sector. We take comfort in the new maturity we are seeing in the regulation of our energy networks. We
are looking forward to the remainder of this financial year with confidence and continue to target adjusted
EBITDA broadly in line with last year’s result, and towards the top end of guidance given in August of
last year.”

Further detail of the group financial performance, including the performance of the group business
segments is contained in the company’s interim report, which was also released to the NZX today and
is available at: www.vector.co.nz/investors/reports

About Vector
Vector is New Zealand’s leading multi-network infrastructure company which delivers energy and communication
services to more than one million homes and businesses across the country. Vector is listed on the New Zealand
Stock Exchange with ticker symbol VCT. Our majority shareholder, with voting rights of 75.1%, is Entrust (formerly
Auckland Energy Consumer Trust). For further information, visit www.vector.co.nz



Contact

INVESTOR QUERIES:
Dan Molloy
Chief Financial Officer
Mobile 021 441 311
MEDIA QUERIES:
Melanie Tuala
External Relations
Mobile 021 518 459

5

MEDIA RELEASE
24 February 2017


NON-GAAP FINANCIAL INFORMATION
Vector’s standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (GAAP) is
net profit. Vector has used non-GAAP profit measures when discussing financial performance in this document.
The directors and management believe that these measures provide useful information as they are used internally
to evaluate performance of business units, to establish operational goals and to allocate resources. For a more
comprehensive discussion on the use of non-GAAP profit measures, please refer to the policy ‘Reporting non-
GAAP profit measures’ available on our website (vector.co.nz).

Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New Zealand International Financial
Reporting Standards) and are not uniformly defined, therefore the non-GAAP profit measures reported in this
document may not be comparable with those that other companies report and should not be viewed in isolation
from or considered as a substitute for measures reported by Vector in accordance with NZ IFRS.

DEFINITIONS
EBITDA: Earnings before interest, taxation, depreciation and amortisation from continuing
operations
Adjusted EBITDA: EBITDA from continuing operations adjusted for fair value changes, associates,
impairments, capital contributions, and significant one-off gains, losses, revenues
and/or expenses.
RECONCILIATION:
Group EBITDA and adjusted EBITDA from continuing operations

Six Months ended 31 December
2016
$M
2015
$M

Reported net profit for the period (GAAP) 107.1 65.1
Add back: net interest costs
1
68.6 90.0
Add back: tax (benefit)/expense
1
16.5 26.1
Add back: depreciation and amortisation
1
97.2 97.0
EBITDA 289.4 278.2
Adjusted for:
Associates (share of net (profit)/loss)
1
(1.1) (0.4)
Fair value change on financial instruments
1
0.0 (2.4)
Capital contributions
1
(31.3) (21.9)
Adjusted EBITDA 257.0 253.5
1
Extracted from reviewed financial statements
Segment adjusted EBITDA
Six months ended
31 December
2016 2015
Reported
segment
EBITDA
$M
Less capital
contributions
$M
Segment
adjusted
EBITDA
$M
Reported
segment
EBITDA
$M
Less capital
contributions
$M
Segment
adjusted
EBITDA
$M
Technology 60.9 (0.5) 60.4 57.3 (0.3) 57.0
Gas Trading 23.7 - 23.7 25.2 - 25.2
Unregulated segments
84.6 (0.5) 84.1 82.5 (0.3) 82.2
Regulated Networks continuing 226.5 (30.8) 195.7 218.0 (21.6) 196.4
Regulated Networks discontinued - - - 54.3 (1.9) 52.4
Regulated segments
226.5 (30.8) 195.7 272.3 (23.5) 248.8
Corporate (22.8) - (22.8) (25.1) - (25.1)
Total
288.3 (31.3) 257.0 329.7 (23.8) 305.9
Total continuing operations only 288.3 (31.3) 257.0 275.4 (21.9) 253.5

---

INTERIM REPORT 2017
VECTOR LIMITED
NEW
FUTURE

01 Half year highlights
02 Chairman’s report
06 Group Chief Executive’s report
10 Business review
13 About Vector
14 Operating statistics
15 Financial overview
16 Financial performance trends
18 Non-GAAP financial information
19 Interim financial statements
37 Directory
Vector is challenging and reinventing the
way communities and businesses are powered
and connected so they can grow and thrive.
We are embracing new technologies, disrupting
traditional business models and working with
like-minded companies to deliver customers
the new energy solutions they demand.
C R E ATI N G A
NEW ENERGY
FUTURE
WATC H our video online at https://vimeo.com/184272776
a glimpse into the new future of energy use in New Zealand

1. Adjusted EBITDA is a non-GAAP profit measure. For a comprehensive definition and
reconciliation to the GAAP measure of net profit please refer to page 18 of this report.
2. For statutory reporting purposes, the Vector Gas businesses in the comparative period
are presented separately in profit or loss as discontinued operations. Please refer to our
interim financial statements for a breakdown of continued and discontinued operations.
Adjusted EBITDA
1
from continuing operations
2

$257.0m
RISES 1.4% ON THE PREVIOUS CORRESPONDING PERIOD
Net profit after tax from continuing operations
2
$107.1m
RISES 64.5% ON THE PREVIOUS CORRESPONDING PERIOD
Fully-imputed interim dividend
8.0cents
RISES 0.25 CENTS PER SHARE
ON THE 2016 INTERIM DIVIDEND
HALF YEAR HIGHLIGHTS
Providing choice and
control page – 07
A new model for
investment page – 09

Auckland’s growth
page – 10
01

CHAIRMAN’S REPORT
In its recent reports to shareholders,
Vector has focused on new energy
technologies, and how we are using them
to give customers greater choice
and control over their energy use,
to transform our traditional business,
and to create new growth opportunities.
Our approach has received support from many
quarters. Meanwhile, the Commerce Commission
in its recent review of the rules governing
investment and returns on our regulated networks,
recognised the value such technologies can deliver
to consumers and the disruptive changes they are
driving within the energy sector.
Yet still we hear claims that we are distracted by
new technology, and that Vector should “stick to
its knitting” or “get back into its box”.
This is something we unashamedly will not do.
From a technology perspective, not much changed
on electricity networks between the commissioning
of the government’s first commercial hydro-
electric plant and transmission line in Rotorua in
1901 and the start of the 21st century.
But now our industry is contemplating the most
significant disruption it has ever experienced.
Photo-voltaic technology enables power to be
generated from the sun at a cost that is trending
towards the generation costs of traditional
technologies. Batteries enable electricity to be
stored, at both the household and grid level. Smart
meters, smart appliances, and new information
technologies give customers far more data and
control over their electricity usage. Electric vehicles
are rapidly gaining in popularity.
Our industry is
contemplating the
most significant
disruption it has
ever experienced.
CREATING OPPORTUNITIES
FOR GROWTH
02 VECTOR LIMITED INTERIM REPORT 2017

These technological developments are having
a profound impact on the electricity sector.
Previously clear lines of demarcation between
generation, transmission, distribution and
electricity retailing are being blurred as new
technologies and new players provide consumers
with broader and more customer-centric choices
to manage their energy needs.
Consumers who install batteries and solar panels
are likely to remain connected to the grid, but
they will use the grid less. These consumers could
go off-grid in future if lines companies do not
respond appropriately.
Smart appliances and home energy management
devices will further reduce household power
consumption. As a result, electricity companies will
no longer be able to rely on demand growth
to justify new investment. As distributed generation
becomes ubiquitous, a range of sector assets
could become surplus to requirements. Lines
companies would be unwise to rely on the
regulatory regime to protect such assets in the
long term.
Faced with these challenges and opportunities,
it is clear to us that “sticking to our knitting” is not
an option. Lines companies that keep operating as
they always have are likely to find themselves
increasingly marginalised over time.
Vector, with the support of its majority shareholder
Entrust, is therefore embracing the technological
changes that are disrupting the energy sector.
We are doing this to ensure the ongoing relevance
DIVIDENDS DECLARED
CENTS PER SHARE
INTERIM TOTAL
0
6
9
3
12
15
1314151617
03

CHAIRMAN’S REPORT Continued
of our energy networks, to create solutions for
our customers, and to create new opportunities
for growth.
We are investing in smart meters, solar systems,
household and network batteries, home
energy management solutions, electric vehicle
infrastructure and peer-to-peer electricity trading.
At the same time, we are continuing to invest
significant amounts in our Auckland energy
networks, as we connect record numbers of new
customers to meet the region’s strong growth.
We are however increasingly looking to use new
technology alongside traditional network solutions
to increase our flexibility and agility and reduce
the risk of future redundancy.
And now, following the Commerce Commission’s
review of the regulatory framework that governs
our energy networks, we are doing all of this in
an environment of stable economic regulation
that is supportive of the change. New Zealand is
in the fortunate position of having a regulator that
recognises it must keep pace with the change
and technological disruption in energy markets.
FINANCIAL PERFORMANCE
Net profit after tax from continuing operations for
the six months to 31 December 2016 rose 64.5%
to $107.1 million, from $65.1 million in the same
period last year.
The result was driven by growth in capital
contributions – due to strong growth in Auckland
– and lower finance costs as we repaid debt
following the sale of Vector Gas in April 2016.
It also included a $15.0 million one-off gain after
the Court of Appeal ruled in Vector’s favour over
the tax treatment of the sale of rights to use our
Penrose to Hobson Street tunnel in Auckland.
Group revenue from continuing operations rose
5.9% to $625.6 million, from $590.6 million in
the prior period. Adjusted EBITDA from continuing
operations was up 1.4% to $257.0 million from
$253.5 million in the same period last year.
Adjusted EBITDA for the continuing
regulated networks business decreased
0.4% to $195.7 million, from $196.4 million.
A combined 19.0% increase in new electricity
and gas connections was offset by the effects
of warmer weather and the continuing decline in
household power consumption.
Adjusted EBITDA in the unregulated businesses
rose 2.3% to $84.1 million from $82.2 million last
year, with continuing growth in the New Zealand
metering business and a one-off insurance
settlement
3
offsetting the costs associated with
the expansion of metering into Australia, the
commercialisation of new technologies and
ongoing low hydrocarbon prices.
3. In respect of damage sustained to Liquigas facilities in Lyttelton during the 2011 earthquake.
We are investing to ensure
the ongoing relevance of
our energy networks, to
create solutions for our
customers, and to create
new opportunities for growth.
04 VECTOR LIMITED INTERIM REPORT 2017

4. Gearing is defined as net economic debt to net economic debt plus equity. Economic debt
means the amount payable upon maturity, including the impact of hedging.
FINANCIAL STRENGTH
Following the sale of Vector Gas, gearing
4
as at
31 December 2016 was 43.9% compared with
43.7% at the end of June 2016 and 53.4% at
31 December 2015. The proceeds from the sale
of Vector Gas were applied to debt reduction.
We are now redeploying this capital to support
our new growth opportunities.
Vector has increased its dividend by at least
0.25 cents every year since it listed in 2005.
The board has considered our growth
prospects, the strength of our balance sheet
following the sale of Vector Gas, and the stability
in our regulatory regime through to 2025.
We remain committed to increasing dividends
in line with historical practice, contingent on
the company maintaining an investment-grade
(BBB) credit rating and continuing to meet its
investment requirements.
We will review this approach following the next
electricity reset in 2020. Our ability to maintain
this approach beyond that point will be impacted
by a range of factors, including the interest rates
prevailing at the time of the next reset, and our
success in re-investing the proceeds of the sale
of Vector Gas.
Accordingly, the directors have declared an
interim dividend of 8.0 cents per share, up
0.25 cents on the prior year’s interim dividend of
7.75 cents per share. The record date for dividend
entitlements is 30 March 2017 and the payment
date is 13 April 2017.
OUTLOOK
Vector is excited by the opportunities that are
emerging within the energy sector. We take
comfort in the new maturity we are seeing in the
regulation of our energy networks. We are looking
forward to the remainder of this financial year
with confidence and continue to target adjusted
EBITDA broadly in line with last year’s result,
and towards the top end of guidance given in
August of last year.
MICHAEL STIASSNY
Chairman
05

GROUP CHIEF EXECUTIVE’S REPORT
Vector has long understood that new energy
technologies such as smart meters, batteries, solar
panels, new software and energy management
solutions and electric vehicles would disrupt and
transform our industry. Rather than resist, we
decided to embrace change for three key reasons.
Firstly, technology is providing alternative ways
to enhance our network, and delivering tangible
economic benefits. Secondly, technology is
significantly augmenting our ability to deliver
solutions that give customers the choice and
control they want in the management of their
energy needs. Finally, technology is facilitating
Vector’s drive to create a sustainable and
environmentally responsible company.
Vector faces a challenging task. Auckland is
growing strongly. The region is forecast to add
as much as the equivalent population of Hamilton
every five years. In the past six months alone
new connections to our electricity and gas
networks rose 19% to 6,490. We do not benefit
from this growth in the short term due to the
regulatory regime’s weighting of returns towards
the end of assets’ lives.
Meanwhile, customers are using less power as
building standards improve and they renovate
and install energy-efficient appliances and lighting.
Indeed, today the average household uses 11.0%
less electricity per year than it did in 2005.
These trends, coupled with the growing adoption
of home batteries, solar panels and other energy
management technologies, have the potential to
reduce customers’ use of Vector’s networks.
We also shoulder an enormous responsibility.
Our Auckland energy networks require a projected
$2.0 billion of capital investment to meet growth
over the next 10 years. We are determined to meet
this challenge, but we will not do so by relying on
PROVIDING CHOICE
AND CONTROL
Technology is
significantly
augmenting our ability
to deliver solutions
that give customers
the choice and control
they want.
06 VECTOR LIMITED INTERIM REPORT 2017

We are
determined to
develop solutions
that are right
for Auckland
and right for
consumers, both
now and in our
new energy future.
old paradigms or beliefs that regulatory protection
will pass on the costs of funding over-built
infrastructure to consumers.
PROVIDING CHOICE AND CONTROL
We are determined to develop solutions that
are right for Auckland and right for consumers,
both now and in our new energy future. Our first
installation of a utility-scale battery in Glen Innes
is tangible evidence of this approach, but this
thinking permeates all aspects of our business.
We are investing heavily in data analytics to ensure
that we build smart networks and invest efficiently.
Our aim is to ensure we do not add unnecessary
costs to customers and that network investment is
anticipating the fast rate of change in technology
and customers’ demand for greater choice and
control over their energy use.
Our home battery fleet has grown to 445,
from 291 at the same time last year. The majority
of these batteries are paired with solar panels,
allowing customers to store power during the
day for use in the evening when consumption
and power prices generally peak.
Our electric vehicle charging network, with
the support of our majority shareholder Entrust,
has grown to 21 chargers from six chargers a
year ago, comprising 13 rapid chargers and
8 standard chargers.
We are working closely with peer-to-peer
(P2P) specialists to develop a New Zealand
P2P electricity trading platform. Meanwhile,
we are working with organisations such as Hawaii’s
Energy Excelerator to identify new solutions
and opportunities.
Alongside Entrust, we continue to work for the
interests of Auckland energy consumers. Together
we have advocated for customers by taking a
strong position against the Electricity Authority’s
latest Transmission Pricing Methodology proposals.
The changes will mean a 33% per annum increase
in Auckland’s transmission grid charges. This will
leave Auckland consumers bearing an even heavier
burden in the future.
07

GROUP CHIEF EXECUTIVE’S REPORT Continued
Vector and Entrust have also formed a partnership
with Auckland Council to drive energy efficiency in
the city. This is an extension of the already strong
relationship we enjoy with the council.
A RECORD OF SUCCESS
We have a proud history of anticipating how
changes in customer behaviour and advances
in new technology would disrupt traditional
business models and create opportunities to
enhance the services we provide our customers.
Less than a decade ago our residential smart
metering business did not exist. Yet, today it
continues to make a strong contribution to
Vector’s financial performance. Over the six
months to 31 December 2016 we added 77,224
meters, lifting our meter fleet to over 1.2 million,
an increase of 15.2% on the prior period.
Leveraging our extensive experience and success
in New Zealand, we are now looking to Australia
to deliver the next phase of metering growth.
We have signed metering services agreements
with two major electricity retailers there and expect
to have installed more than 10,000 meters as at
the date of this report. We anticipate the rate of
deployment to accelerate during 2017.
We remain confident of our prospects in the
Australian market. Regulatory reforms require
retailers to take responsibility for new and
replacement metering installations from
December 2017. This necessitates all retailers
making arrangements with meter providers by
this time to fulfil their obligations.
Our bottle swap business continues to grow
as more customers turn to the convenience of
pre-filled LPG bottles. Bottle swap volumes grew
5.8% to 319,685 bottles, up from 302,109 in the
prior period. We expect that amount to increase
over the coming year, helped in no small measure
by our new South Auckland bottling plant, which
is due for completion later this calendar year.
We also completed in September the transition
of Vector Gas to its new owners.
SAFETY AND SERVICE QUALITY
Vector recognises we will only succeed in
achieving these ambitious goals if we provide a
safe workplace that values diversity and inclusion
and develops skilled people who can lead our
company into the future.
Reflecting this commitment, we have taken
the industry-leading stance that network repair
and maintenance work will be undertaken
de-energised wherever possible. We regret that
this will result in increased outages for customers,
but we are confident they will agree that the safety
of our field staff is a priority. This approach is
aligned with international safety standards, and it is
already gaining acceptance around New Zealand.
Coupled with changes in our operating
environment, including increasing traffic
congestion in Auckland, this new approach
makes it challenging to meet the Commerce
Commission’s quality thresholds. We are having
a constructive dialogue with the commission
and WorkSafe New Zealand on these issues.
Vector has a great team motivated to achieve
our goals for this year and beyond. We are excited
by the challenges and opportunities we see amidst
the significant disruption and transformation
taking place in our sector and the considerable
growth we are seeing in Auckland.
SIMON MACKENZIE
Group Chief Executive
08 VECTOR LIMITED INTERIM REPORT 2017

Our Glen Innes substation is providing a
glimpse of the future. The network battery
we have installed at the substation has a
storage capacity of 2.3 MWh, enough to
power 450 average homes for more than
two hours. The new battery allows Vector
to better match investment in its network
with demand from the suburb.
It allows Vector to store power when
demand on the network is low and discharge
power to augment the network when
demand is high. And when connection or
consumption growth requires a conventional
network upgrade, we can move the battery
to other parts of the network where power
demand is rising.
Compare the flexibility of this investment
to the traditional practice of a substation
upgrade. The cost of an upgrade would have
been incurred immediately with an expectation
of a return decades later – by which time
changes in power use patterns in the suburb
could have made the investment redundant.
A new model for network investment
GLEN INNES
AUCKLAND
Vector Chairman Michael Stiassny, (left) the then Energy Minister Simon Bridges and
Vector Group Chief Executive Simon Mackenzie open the Glen Innes substation in October.
Storage capacity of
2.3Mwh
enough to power
450
average homes for more than
2 hours
IT ALLOWS VECTOR TO STORE POWER
WHEN DEMAND ON THE NETWORK IS LOW
AND DISCHARGE POWER TO AUGMENT THE
NETWORK WHEN DEMAND IS HIGH.
09

INCREASE IN NEW ELECTRICITY
AND GAS CONNECTIONS
Revenue
5
from continuing
operations (that is, excluding
Vector Gas) for the half year was
largely flat at $353.8 million
compared to $353.6 million last
year. An increase in transmission
fees, which are passed through
to customers with no margin,
offset the impact of falling
energy consumption.
Electricity volumes were down
0.6% to 4,340 GWh from
4,368 GWh in the prior year
due to the effects of warmer
weather, the partial closure
of a large industrial customer
and continuing falls in average
household electricity
consumption. This was despite
strong growth in the number
of new electricity connections,
which rose 17.0% to 4,583
from 3,916. Indeed, today
the average household on
our network uses 11.0% less
electricity per year than it
did in 2005.
Total new electricity and gas
connections rose 19% or 1,036
to 6,490.
Auckland gas distribution
network volumes were flat at
7.6 PJ with weaker demand
being offset by a 24.0%
increase in new connections.
Adjusted EBITDA from continuing
operations was $195.7 million
compared with $196.4 million
during the same period in the
prior year, as tight cost control
largely offset the impact of lower
network throughput.
Capital contributions increased
by 42.6% to $30.8 million, from
$21.6 million in the prior year,
due to continuing strong growth
in Auckland.
Electricity customers
552,948
INCREASED 1.0% OVER THE SAME
PERIOD LAST YEAR
Electricity volumes
4,340GWh
DOWN 0.6% FROM 4,368 GWH
ROSE TO 6,490
19.0%
Regulated Networks
Revenue
$353.8m
FLAT ON THE PRIOR PERIOD’S
$353.6 MILLION
Adjusted EBITDA
$195.7m
DECREASED FROM $196.4 MILLION
5. Excluding capital contributions.
BUSINESS REVIEW
10 VECTOR LIMITED INTERIM REPORT 2017

6. Excluding capital contributions.
INCREASE IN SMART METERS
Technology division revenue
6

rose 11.0% to $97.8 million,
from $88.1 million a year earlier,
driven largely by the increased
deployment of smart meters.
Adjusted EBITDA rose 6.0% to
$60.4 million from $57.0 million.
Gains from the smart meter
roll-out were diluted by
expenditure associated with
new energy technologies and
the establishment of the
Australian metering operation.
We installed 77,224 smart meters
during the period. As we signalled
in August, Vector is reaching the
end of the New Zealand smart
meter roll-out. We continue to
target the deployment of
140,000 to 160,000 meters in
New Zealand for the full year.
Thereafter, the focus here will be
on managing the existing meter
fleet and installing new and
replacement meters as required.
We continue to make progress
in Australia and as at the date
of this report we expect to have
installed more than 10,000
meters there. We have faced
challenges recruiting a skilled
workforce to undertake smart
meter installations, but we are
working through these issues,
and expect deployment velocity
to increase in the second half
of the financial year.
Vector Communications is
performing well in a competitive
market and has gained a number
of significant customers over
the period.
Electricity smart meters
1,203,482
INCREASED FROM 1,044,613 AT THE SAME TIME LAST YEAR
VECTOR INSTALLED 77,224 SMART
METERS DURING THE PERIOD.
15.2%
Technology
Revenue
6
$97.8m
INCREASED 11.0% FROM $88.1 MILLION
Adjusted EBITDA
$60.4m
INCREASED 6.0% FROM $57.0 MILLION
11

BUSINESS REVIEW
Revenue at the Gas Trading
division fell 0.8% to $150.2 million
from $151.4 million a year earlier
as the division continues to face a
challenging trading environment.
Adjusted EBITDA fell 6.0% to
$23.7 million from $25.2 million.
The result for the half year has
been impacted by a one-off
insurance settlement in respect
of damage caused to the
Liquigas facilities in Lyttleton in
the 2011 earthquake. Excluding
the insurance proceeds, adjusted
EBITDA was $18.4 million.
Vector’s LPG operations occupy
a strong market position and
have delivered an improved
contribution during the period.
Swap volumes of 9 kg bottles
rose 5.8% to 319,685 compared
to the same period last year. Our
new bottle filling facility in South
Auckland is proceeding well and
it will support continued growth
within the bottle swap business.
Since the November 2016
earthquake brought rail
transports of LPG to southern
markets to a halt, Liquigas has
made up for the shortfall in
capacity to meet the South
Island’s energy needs.
Domestic LPG tolling volumes
were down 1.0% to 72,239 tonnes
from 72,934 tonnes in the same
period of the prior year. Export
tolling volumes fell 60.9% to
5,449 tonnes from 13,934 tonnes
as lower international prices for
LPG made exports less attractive.
Meanwhile, as indicated in
August, the natural gas business
continues to face a number
of challenges. Volumes were
slightly higher at 9.3 PJ
compared with 9.1 PJ in the
prior year but margins and
prices were weaker due to tough
competition for customers.
Additionally, continued weakness
in the price for natural gas,
lower production and lower
processing fees at the Kapuni
Gas Treatment Plant and lower
hydrocarbon prices have
impacted segment earnings.
Bottle swap volumes
319,685
9 KG LPG BOTTLES
Gas Trading
Revenue
$150.2m
REVENUE FELL 0.8% FROM
$151.4 MILLION
Adjusted EBITDA
$23.7m
ADJUSTED EBITDA FELL 6.0% FROM
$25.2 MILLION
INCREASE IN 9 KG LPG BOTTLE
SWAP VOLUMES
ROSE 5.8% FROM 302,109 IN THE
SAME PERIOD A YEAR AGO.
5.8%
12 VECTOR LIMITED INTERIM REPORT 2017

ABOUT VECTOR
ELECTRICITY AND GAS NETWORKS
FIBRE-OPTIC NETWORK AUCKLAND
AUCKLAND
AUSTRALIA
Christchurch
Wellington
Napier
Tauranga
Invercargill
Dunedin
ELECTRICITY NETWORK
GAS NETWORK
FIBRE-OPTIC COMMUNICATION NETWORKS
ONGAS LPG BOTTLED GAS DELIVERY AREAS
ONGAS LPG RETICULATED NETWORKS
LIQUIGAS LPG DEPOTS
KAPUNI GAS TREATMENT PLANT
FIBRE-OPTIC POINTS OF PRESENCE
VECTOR AMS OFFICE
Vector’s advanced metering
subsidiary owns and operates energy
meters across New Zealand and in
New South Wales, Australia.
KEY
Vector is the country’s largest
distributor of electricity and gas with
our networks spanning the Auckland
region. We maintain and operate
more than 1.5 million electricity and
gas meters. We retail natural gas to
industry and LPG to industry and
homes from specialised depots
and more than 800 LPG bottle
swap outlets across the country
from Whangarei to Invercargill.
We employ nearly 800 staff and
1,000 contractors and we are one of
the largest companies listed on the
NZX. We have a record for delivering
growing returns to shareholders.
For more, visit: www.vector.co.nz

For more, visit: www.vector.co.nz
WHERE WE ARE
13

OPERATING STATISTICS
FOR THE SIX MONTHS ENDED 31 DECEMBER
20162015
ELECTRICITY
Customers
1,6
552,9485 47, 319
New connections
4,5833,916
Net movement in customers
2
2,8902,806
Volume distributed (GWh)
3
4,3404,368
Network length (km)
18,37718,240
SAIDI (minutes)
4
– 9 months to 31 December
5
Normal operations
119.878.3
Extreme events
2.40.0
Total
122.278.3
GAS DISTRIBUTION
7
Distribution customers
1,6
105,918102,908
New distribution connections
1,9071,538
Net movement in distribution customers
2
1,5961,343
Distribution volume (PJ)
7. 67. 6
GAS TRADING
Natural gas sales (PJ)
8
9.39.1
Gas liquids sales (tonnes)
9
38,55741,120
9kg LPG bottles swapped
10
319,685302,109
Liquigas LPG tolling (tonnes)
11
7 7, 6 8 886,868
TECHNOLOGY
1
Electricity: smart meters
12
1,203,4821,044,613
Electricity: legacy meters
107,4 67141,121
Electricity: prepay meters
4,5966,179
Electricity: time-of-use meters
11,98511 ,762
Gas meters
219,718216,266
Data management services connections
8,76 08,547
1. As at 31 December.
2. Net number of customers added during the period, includes disconnected, reconnected and decommissioned ICPs.
3. Volumes were impacted by the partial closure of a significant industrial customer in October 2015.
4. The SAIDI audited value for normal operations for the regulatory year ended 31 March 2016 was 117.0 minutes.
5. SAIDI (minutes) for the 9 months ended 31 December 2016 is an unaudited value and subject to change.
6. Billable ICPs.
7. The group’s gas transmission and non-Auckland gas distribution business (Vector Gas) was sold to First Gas on 20 April
2016. The operating statistics for the period to 31 December 2016 relate only to the Auckland network, and the prior period
comparatives have been adjusted accordingly.
8. Excludes gas sold as gas liquids. These sales are included within the gas liquids sales tonnages.
9. Total of retail and wholesale LPG and natural gasoline.
10. Number of 9kg LPG bottles swapped and sold during the period.
11. Includes product tolled in Taranaki and further tolled in the South Island.
12. The number of smart meters deployed as at 31 December 2016 includes 78,037 meters managed but not owned by Vector
(31 December 2015: 32,804).
14
VECTOR LIMITED INTERIM REPORT 2017

FINANCIAL OVERVIEW
Revenue $m
625.6
RISES 5.9% ON THE PREVIOUS CORRESPONDING PERIOD
Operating cash flow $m
226.3
FALLS 9.0% ON THE PREVIOUS CORRESPONDING PERIOD
FINANCIAL PERFORMANCE
1

$ MILLION
31 DEC 2016
6 MONTHS
31 DEC 2015
6 MONTHS

CHANGE
30 JUN 2016
12 MONTHS
Revenue
625.6590.65.9%1,144.6
Adjusted EBITDA
2 5 7. 0253.51.4%473.0
Adjusted EBIT
159.8156.52.1%278.4
Net profit from continuing operations
1 0 7. 165.164.5%58.9
Net profit from discontinued operations
0.035.0-10 0.0 %215.5
Net profit – total
1 0 7. 1100.17. 0 %274.4
Operating cash flow
2
226.3248.8-9.0%352.1
FINANCIAL POSITION

$ MILLION31 DEC 201631 DEC 2015CHANGE30 JUN 2016
Total equity
2 , 4 67. 12,323.16.2%2,398.3
Total assets
5,511.36,134.0-10.2 %5,603.0
Economic net debt
1,968.22,741.3-28.2%1,932.9
KEY FINANCIAL MEASURES
31 DEC 2016
6 MONTHS
31 DEC 2015
6 MONTHS

CHANGE
30 JUN 2016
12 MONTHS
Adjusted EBITDA/revenue
1
41.1%42.9%-4.2%41.3%
Adjusted EBIT/revenue
1
25.5%26.5%-3.4%24.3%
Equity/total assets
44.8%37.9 %18.2%42.8%
Gearing
43.9%53.4%-17. 8 %43.7%
Net interest cover
1
2.31.735.3%1.6
Earnings per share
2
10.59.96.1%2 7. 2
Dividend (cps)
8.007.753.2%15.75
1. Continuing operations only unless otherwise stated.
2. Includes both continuing and discontinued operations.
15

FINANCIAL PERFORMANCE TRENDS
REGULATED NETWORKS GAS TRADING
TECHNOLOGY CORPORATE INTER-SEGMENT
Group revenue from continuing operations increased due to continued
growth in Technology, and a higher level of capital contributions in the
Regulated Networks businesses driven by growth in Auckland.
REVENUE (CONTINUING OPERATIONS)
$ MILLION
FOR THE SIX MONTHS ENDED 31 DECEMBER
1213141516
0
584.0
581.4
618.9
590.6
625.6
YEAR
REGULATED NETWORKS GAS TRADING
TECHNOLOGY CORPORATE TOTAL GROUP
Adjusted EBITDA from continuing operations rose 1.4%, with growth in the Technology
division offsetting weaker performance in Regulated Networks and Gas Trading.
260.3
243.0
253.5
257.0
20122013201420152016
244.8
-50
0
50
100
150
200
250
300
ADJUSTED EBITDA (CONTINUING OPERATIONS)
$ MILLION
FOR THE SIX MONTHS ENDED 31 DECEMBER
16 VECTOR LIMITED INTERIM REPORT 2017

NET PROFIT (INCLUDING
DISCONTINUED OPERATIONS)
$ MILLION
FOR THE SIX MONTHS ENDED 31 DECEMBER
118.0
104.6
87.3
100.1
107.1
1213141516
0
Net profit from continuing operations increased
64.5% due to higher capital contributions, lower
interest costs, and the tunnel tax credit.
Operating cash flows fell with the impact of the
sale of Vector Gas partly offset by reduced
interest costs.
OPERATING CASH FLOWS
(INCLUDING DISCONTINUED OPERATIONS)
$ MILLION
FOR THE SIX MONTHS ENDED 31 DECEMBER
267.7
203.3
248.8
226.3
225.9
0
1213141516
TECHNOLOGY GAS TRADING
REGULATED NETWORKS CORPORATE
DISCONTINUED OPERATIONS
CONTINUED OPERATIONS
CAPITAL EXPENDITURE
(CONTINUING OPERATIONS)
$ MILLION
FOR THE SIX MONTHS ENDED 31 DECEMBER
49.8
102.2
8.9
12.0
Total capital expenditure was $172.9 million,
of which $111.6 million was directed at growth
initiatives.
17

NON-GAAP FINANCIAL INFORMATION
Vector’s standard profit measure prepared under New Zealand Generally Accepted Accounting Practice
(GAAP) is net profit. Vector has used non-GAAP profit measures when discussing financial performance in
this document. The directors and management believe that these measures provide useful information as
they are used internally to evaluate performance of business units, to establish operational goals and to
allocate resources. For a more comprehensive discussion on the use of non-GAAP profit measures, please
refer to the policy ‘Reporting non-GAAP profit measures’ available on our website (www.vector.co.nz).
Non-GAAP profit measures are not prepared in accordance with New Zealand International Financial Reporting
Standards (NZ IFRS) and are not uniformly defined, therefore the non-GAAP profit measures reported in
this document may not be comparable with those that other companies report and should not be viewed in
isolation from or considered as a substitute for measures reported by Vector in accordance with NZ IFRS.
DEFINITIONS
EBITDA: Earnings before interest, taxation, depreciation and amortisation from
continuing operations
Adjusted EBITDA: EBITDA from continuing operations adjusted for fair value changes, associates,
impairments, capital contributions, and significant one-off gains, losses, revenues
and/or expenses.
RECONCILIATION:
Group EBITDA and adjusted EBITDA from continuing operations
31 DEC 2016
6 MONTHS
$M
31 DEC 2015
6 MONTHS
$M
Reported net profit for the period (GAAP)
1
107.165.1
Add back: net interest costs
1
68.690.0
Add back: tax (benefit)/expense
1
16.526.1
Add back: depreciation and amortisation
1
97.297.0
EBITDA 289.4278.2
Adjusted for:
Associates (share of net (profit)/loss)
1
(1.1)(0.4)
Fair value change on financial instruments
1
0.0(2.4)
Capital contributions
1
(31.3)(21.9)
Adjusted EBITDA 257.0253.5
1. Extracted from reviewed financial statements.
Segment adjusted EBITDA ($M)
20162015
Six months ended 31 December
REPORTED
SEGMENT
EBITDA
LESS CAPITAL
CONTRI-
BUTIONS
SEGMENT
ADJUSTED
EBITDA
REPORTED
SEGMENT
EBITDA
LESS CAPITAL
CONTRI-
BUTIONS
SEGMENT
ADJUSTED
EBITDA
Technology
60.9(0.5)60.457.3(0.3)57.0
Gas Trading
23.7–23.725.2–25.2
Unregulated segments84.6(0.5)84.182.5(0.3)82.2
Regulated Networks continuing
226.5(30.8)195.7218.0(21.6)196.4
Regulated Networks discontinued
–––54.3(1.9)52.4
Regulated segments226.5(30.8)195.7272.3(23.5)248.8
Corporate(22.8)–(22.8)(25.1)–(25.1)
TOTAL288.3(31.3)257.0329.7(23.8)305.9
TOTAL continuing operations only288.3(31.3)257.0275.4(21.9)253.5
18 VECTOR LIMITED INTERIM REPORT 2017

19
GROUP CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 (UNAUDITED)
CONTENTS
Independent Review Report 20
Group Condensed Interim Financial Statements
Profit or Loss 21
Other Comprehensive Income 22
Balance Sheet 23
Cash Flows 24
Changes in Equity 25
Notes to the Group Condensed Interim Financial Statements 26
GROUP CONDENSED INTERIM FINANCIAL STATEMENTS
These group condensed interim financial statements for the six months ended 31 December 2016 are
dated 23 February 2017, and signed for and on behalf of Vector Limited by:
Director 23 February 2017
Director 23 February 2017
And management of Vector Limited by:
Group Chief Executive 23 February 2017
Chief Financial Officer 23 February 2017

20 VECTOR LIMITED INTERIM REPORT 2017
INDEPENDENT REVIEW REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
THE SHAREHOLDERS OF VECTOR LIMITED
We have completed a review of the interim financial statements of Vector Limited and its subsidiaries
(‘the Group’) on pages 21 to 35 which comprise the balance sheet as at 31 December 2016, and the
profit or loss and other comprehensive income, statement of changes in equity and statement of cash
flows for the six months ended on that date, and a summary of significant accounting policies and other
explanatory information.
This report is made solely to the shareholders as a body. Our review work has been undertaken so that
we might state to the Vector Limited shareholders those matters we are required to state to them in the
independent review report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Vector Limited shareholders as a body, for our
review work, this report or any of the conclusions we have formed.
Directors’ responsibilities
The directors of Vector Limited are responsible for the preparation and fair presentation of interim
financial statements in accordance with NZ IAS 34 Interim Financial Reporting and for such internal
control as the directors determine is necessary to enable the preparation and fair presentation of the
interim financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibilities
Our responsibility is to express a conclusion on the interim financial statements based on our review.
We conducted our review in accordance with NZ SRE 2410 Review of Financial Statements Performed
by the Independent Auditor of the Entity. NZ SRE 2410 requires us to conclude whether anything has
come to our attention that causes us to believe that the financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting. As the auditor of the
Group, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of the
annual financial statements.
A review of interim financial statements in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted
in accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an
audit opinion on those financial statements.
Our firm has also provided other services to the Group in relation to regulatory assurance services and
other assurance services. Subject to certain restrictions, partners and employees of our firm may also
deal with the Group on normal terms within the ordinary course of trading activities of the business of
the Group. These matters have not impaired our independence as auditors of the Group. The firm has
no other relationship with, or interest in, the Group.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these interim
financial statements of the Group do not present fairly, in all material respects, the financial position of
the Group as at 31 December 2016, and of its financial performance and its cash flows for the six
months ended on that date, in accordance with NZ IAS 34 Interim Financial Reporting.
23 February 2017
Auckland

21
GROUP INTERIM PROFIT OR LOSS
(UNAUDITED)
NOTE
31 DEC 2016
6 MONTHS
$000
31 DEC 2015
6 MONTHS
$000
30 JUN 2016
12 MONTHS
$000
Continuing operations:
Revenue
3625,579590,6011,144,603
Operating expenses3(337,308)(315,134)(621,764)
Depreciation and amortisation(97,188)(97,035)(194,580)
Interest costs (net)(68,582)(89,985)(168,805)
Fair value change on financial instruments282,3872,344
Associates (share of net profit/(loss)) 1,1234322,809
Impairment––(61,422)
Profit/(loss) before income tax123,65291,266103,185
Tax benefit/(expense)5(16,530)(26,142)(44,277)
Net profit/(loss) for the period from continuing operations107,12265,12458,908
Net profit/(loss) for the period from discontinued
operations (net of tax)
4–34,977215,494
Net profit/(loss) for the period107,122100,101274,402
Net profit/(loss) for the period attributable to
Non-controlling interests
2,6971,4552,909
Owners of the parent – continuing operations104,42563,66955,999
Owners of the parent – discontinued operations–34,977215,494
Basic and diluted earnings per share (cents)
Owners of the parent – continuing operations
910.56.45.6
Owners of the parent – discontinued operations9–3.521.6
Total10.59.927.2

22 VECTOR LIMITED INTERIM REPORT 2017
GROUP INTERIM OTHER COMPREHENSIVE INCOME
(UNAUDITED)
NOTE
31 DEC 2016
6 MONTHS
$000
31 DEC 2015
6 MONTHS
$000
30 JUN 2016
12 MONTHS
$000
Net profit/(loss) for the period107,122100,101274,402
Other comprehensive income net of tax
Items that may be re-classified subsequently to profit or loss:
Net change in fair value of hedge reserves40,9975,182(15,685)
Fair value change on financial asset7955 – –
Share of other comprehensive income of associate – – 250
Translation of foreign operations(50)(19)(42)
Other comprehensive income for the period net of tax41,9025,163(15,477)
Total comprehensive income for the period net of tax149,024105,264258,925
Total comprehensive income for the period attributable to
Non-controlling interests
2,6971,4552,909
Owners of the parent – continuing operations146,32768,83240,522
Owners of the parent – discontinued operations – 34,977215,494

23
GROUP INTERIM BALANCE SHEET
(UNAUDITED)
NOTE
31 DEC 2016
$000
31 DEC 2015
$000
30 JUN 2016
$000
CURRENT ASSETS
Cash and cash equivalents187,2365,981321,371
Trade and other receivables 189,718176,522191,523
Inventories5,2913,5144,285
Intangible assets64,8032,0031,281
Income tax7,3792,76935,126
Disposal group held for sale4 – 910,295 –
Total current assets394,4271,101,084553,586
NON-CURRENT ASSETS
Receivables
– – 51
Derivatives876,77298,65082,428
Investments in associates9,64011,90715,612
Other investments 75,413 – –
Intangible assets61,284,0511,337,4151,280,375
Property, plant and equipment (PPE)63,740,3923,584,8663,670,191
Deferred tax57076715
Total non-current assets5,116,8385,032,9145,049,372
Total assets5,511,2656,133,9985,602,958
CURRENT LIABILITIES
Trade and other payables
249,597225,913251,383
Provisions6,52925,6346,232
Borrowings8559,629170,500251,820
Derivatives817,6001,10912,608
Income tax334310829
Disposal group held for sale4 – 139,022 –
Total current liabilities833,689562,488522,872
NON-CURRENT LIABILITIES
Payables
14,50117,22415,400
Provisions17,77215,15317,040
Borrowings81,579,4992,631,4672,005,061
Derivatives8138,253131,993187,037
Deferred tax 460,456452,611457,213
Total non-current liabilities 2,210,4813,248,4482,681,751
Total liabilities 3,044,1703,810,9363,204,623
EQUITY
Equity attributable to owners of the parent
2,448,6472,306,9772,381,988
Non-controlling interests in subsidiaries18,44816,08516,347
Total equity 2,467,0952,323,0622,398,335
Total equity and liabilities 5,511,2656,133,9985,602,958
Net tangible assets per share (cents)9116.597.2110.5
Gearing ratio (%)943.953.443.7

24 VECTOR LIMITED INTERIM REPORT 2017
GROUP INTERIM CASH FLOWS
(UNAUDITED)
NOTE
31 DEC 2016
6 MONTHS
$000
31 DEC 2015
6 MONTHS
$000
30 JUN 2016
12 MONTHS
$000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
638,357684,1401,263,179
Interest received 5,368221438
Dividend received from associate111,500 – 1,500
Payments to suppliers and employees(343,659)(340,746)(676,305)
Interest paid(73,528)(92,104)(175,232)
Income tax paid(1,758)(2,680)(61,526)
Net cash flows from/(used in) operating activities 10226,280248,831352,054
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of PPE, and software intangibles
167103223
Purchase and construction of PPE and software
intangibles
(180,326)(163,121)(340,082)
(Post-completion payment) / Proceeds from sale of
discontinued operations
(59) – 960,000
Other investing cash flows – (750)(750)
Net cash flows from/(used in) investing activities (180,218)(163,768)619,391
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
– 250,000310,000
Repayment of borrowings(98,874)(256,000)(809,000)
Dividends paid (80,256)(80,852)(159,215)
Other financing cash flows(1,067)(452)(81)
Net cash flows from/(used in) financing activities (180,197)(87,304)(658,296)
Net increase/(decrease) in cash and cash equivalents (134,135)(2,241)313,149
Cash and cash equivalents at beginning of the period321,3718,2228,222
Cash and cash equivalents at end of the period 187,2365,981321,371
Cash and cash equivalents comprise:
Bank balances and on-call deposits
9,0511,1103,241
Short term deposits 178,1854,871318,130
187,2365,981321,371

25
GROUP INTERIM CHANGES IN EQUITY
(UNAUDITED)
ISSUED
SHARE
CAPITAL
$000
TREASURY
SHARES
$000
HEDGE
RESERVES
$000
OTHER
RESERVES
$000
RETAINED
EARNINGS
$000
NON-
CONTROLLING
INTERESTS
$000
TOTAL EQUITY
$000
Balance at 1 July 2015874,979(9,278)(73,593)(1,230)1,491,93215,8222,298,632
Net profit/(loss) for the period – – – – 98,6461,455100,101
Other comprehensive income – – 5,182(19) – – 5,163
Total comprehensive income – – 5,182(19)98,6461,455105,264
Dividends – – – – (79,660)(1,192)(80,852)
Employee share purchase
scheme transactions
– 25 – (7) – – 18
Total transactions with owners – 25 – (7)(79,660)(1,192)(80,834)
Balance at 31 December 2015874,979(9,253)(68,411)(1,256)1,510,91816,0852,323,062
Net profit/(loss) for the period – – – – 172,8471,454174,301
Other comprehensive income – – (20,867)227 – – (20,640)
Total comprehensive income – – (20,867)227172,8471,454153,661
Dividends – – – – (77,171)(1,192)(78,363)
Employee share purchase
scheme transactions
– 54 – (79) – – (25)
Total transactions with owners – 54 – (79)(77,171)(1,192)(78,388)
Balance at 30 June 2016874,979(9,199)(89,278)(1,108)1,606,59416,3472,398,335
Net profit/(loss) for the period – – – – 104,4252,697107,122
Other comprehensive income – – 40,997905 – – 41,902
Total comprehensive income – – 40,997905104,4252,697149,024
Dividends – – – – (79,660)(596)(80,256)
Employee share purchase
scheme transactions
– (50) – 42 – – (8)
Total transactions with owners – (50) – 42(79,660)(596)(80,264)
Balance at 31 December 2016874,979(9,249)(48,281)(161)1,631,35918,4482,467,095

26 VECTOR LIMITED INTERIM REPORT 2017
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. COMPANY INFORMATION
Reporting entityVector Limited is a company incorporated and domiciled in New Zealand,
registered under the Companies Act 1993 and listed on the NZX Main Board
(NZX). The company is an FMC entity for the purposes of Part 7 of the
Financial Markets Conduct Act 2013. Vector’s condensed interim financial
statements (the interim financial statements) comply with this Act.
The interim financial statements presented are for Vector Limited Group
(“Vector” or “the group”) as at, and for the six months ended 31 December
2016. The group comprises Vector Limited (“the parent”), its subsidiaries,
and its investments in associates and joint arrangements.
Vector Limited is a 75.1% owned subsidiary of Entrust (formerly Auckland
Energy Consumer Trust) which is the ultimate parent entity for the group.
The primary operations of the group are electricity and gas distribution,
natural gas and LPG sales, gas processing, metering, telecommunications
and new energy solutions.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparationThe interim financial statements have been prepared in accordance with
New Zealand Generally Accepted Accounting Practice (NZ GAAP) as
applicable to interim financial statements, and as appropriate to profit
oriented entities. They comply with NZ IAS 34 Interim Financial Reporting.
These interim financial statements do not include all of the information
required for full annual financial statements and should be read in
conjunction with the group financial statements and related notes included in
Vector’s 2016 Annual Report. The interim financial statements for the six
months ended 31 December 2016 and 31 December 2015 are unaudited.
All financial information has been rounded to the nearest thousand, unless
otherwise stated.
SeasonalityVector’s electricity and gas businesses are affected by the seasonal demand
for energy, which generally increases during periods of colder weather.
Accordingly, financial results for the first half of the financial year reported in
the interim financial statements are expected to be more profitable than
those of the second half of the year.
Significant accounting
policies
The accounting policies set out in Vector’s 2016 Annual Report have been
applied consistently to all periods presented in these interim financial
statements.

27
3. SEGMENT INFORMATION
SegmentsVector reports on three reportable segments in accordance with NZ IFRS 8
Operating Segments. The segments and related policies remain unchanged
from those reported in Vector’s 2016 Annual Report.
The reported segments are:
Regulated Networks Auckland electricity and gas distribution services.
Gas Trading Natural gas and LPG sales, storage and processing,
and cogeneration.
Technology Metering services, telecommunications and new
energy solutions.
The segment information for the interim period ended 31 December 2015
has been restated to reflect the above segments.
NOTES TO THE INTERIM FINANCIAL STATEMENTS

28 VECTOR LIMITED INTERIM REPORT 2017
3. SEGMENT INFORMATION (continued)
31 DEC 2016
6 MONTHS
REGULATED
NETWORKS
$000
GAS TRADING
$000
TECHNOLOGY
$000
INTER-
SEGMENT
$000
TOTAL
$000
External revenue:
Sales
350,373150,20791,497 – 592,077
Third party contributions30,812 – 532 – 31,344
Intersegment revenue3,428 – 6,327(9,755) –
Segment revenue384,613150,20798,356(9,755)623,421
External expenses:
Electricity transmission expenses
(106,757) – – – (106,757)
Gas purchases and production expenses – (94,491) – – (94,491)
Asset maintenance expenses(22,350)(10,027)(7,525) – (39,902)
Employee benefit expenses(7,657)(7,433)(11,267) – (26,357)
Other expenses(15,882)(11,092)(17,826) – (44,800)
Intersegment expenses(5,473)(3,459)(823)9,755 –
Segment operating expenses(158,119)(126,502)(37,441)9,755(312,307)
Segment EBITDA226,49423,70560,915 – 311,114
Depreciation and amortisation(50,286)(8,105)(32,881) – (91,272)
Segment profit/(loss)176,20815,60028,034 – 219,842
Segment capital expenditure102,15711,99149,817 – 163,965
During the period, the Technology segment procured and sold $0.7 million of battery assets to Regulated
Networks at zero margin. The battery assets are included in the segment capital expenditure for Regulated
Networks. The impact of the sale transaction is not reflected in the segment information presented for
Technology.
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
31 DEC 2016
REVENUE
$000
PROFIT/
(LOSS) BEFORE
INCOME TAX
$000
CAPITAL
EXPENDITURE
$000
Reported in segment information623,421219,842163,965
Amounts not allocated to segments (corporate activities):
Revenue 2,1582,158 –
Employee benefit expenses – (13,077) –
Other operating expenses – (11,924) –
Depreciation and amortisation – (5,916) –
Interest costs (net) – (68,582) –
Fair value change on financial instruments – 28 –
Associates (share of net profit/(loss)) – 1,123 –
Capital expenditure – – 8,929
Reported in the financial statements625,579123,652172,894
NOTES TO THE INTERIM FINANCIAL STATEMENTS

29
3. SEGMENT INFORMATION (continued)
31 DEC 2015
6 MONTHS
REGULATED
NETWORKS
$000
GAS TRADING
$000
TECHNOLOGY
$000
INTER-
SEGMENT
$000
TOTAL
$000
External revenue:
Sales
350,558151,35182,176(15,683)568,402
Third party contributions21,612 – 334 – 21,946
Intersegment revenue3,096 – 5,971(9,067) –
Segment revenue375,266151,35188,481(24,750)590,348
External expenses:
Electricity transmission expenses
(104,165) – – – (104,165)
Gas purchases and production expenses – (95,202) – 14,916(80,286)
Asset maintenance expenses(24,101)(10,516)(6,260)739(40,138)
Employee benefit expenses(8,800)(7,160)(8,098) – (24,058)
Other expenses(14,917)(10,472)(15,767)28(41,128)
Intersegment expenses(5,229)(2,806)(1,032)9,067 –
Segment operating expenses(157,212)(126,156)(31,157)24,750(289,775)
Segment EBITDA218,05425,19557,324 – 300,573
Depreciation and amortisation(51,020)(7,122)(32,159) – (90,301)
Segment profit/(loss)167,03418,07325,165 – 210,272
Segment capital expenditure79,8484,79850,019 – 134,665
The intersegment eliminations include $15.7 million of transactions between continuing and discontinued
operations which have been eliminated on consolidation.
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
31 DEC 2015
REVENUE
$000
PROFIT/
(LOSS) BEFORE
INCOME TAX
$000
CAPITAL
EXPENDITURE
$000
Reported in segment information590,348210,272134,665
Amounts not allocated to segments (corporate activities):
Revenue 253253 –
Employee benefit expenses – (13,091) –
Other operating expenses – (12,268) –
Depreciation and amortisation – (6,734) –
Interest costs (net) – (89,985) –
Fair value change on financial instruments – 2,387 –
Associates (share of net profit/(loss)) – 432 –
Capital expenditure – – 5,655
Reported in the financial statements590,60191,266140,320

30 VECTOR LIMITED INTERIM REPORT 2017
3. SEGMENT INFORMATION (continued)
30 JUN 2016
12 MONTHS
REGULATED
NETWORKS
$000
GAS TRADING
$000
TECHNOLOGY
$000
INTER-
SEGMENT
$000
TOTAL
$000
External revenue:
Sales
671,234277,098166,977(22,661)1,092,648
Third party contributions48,903 – 915 – 49,818
Intersegment revenue6,082 – 12,162(18,244) –
Segment revenue726,219277,098180,054(40,905)1,142,466
External expenses:
Electricity transmission expenses(209,740) – – – (209,740)
Gas purchases and production expenses – (176,512) – 21,543(154,969)
Asset maintenance expenses(47,880)(21,120)(12,737)1,088(80,649)
Employee benefit expenses(17,963)(13,954)(18,016) – (49,933)
Other expenses(22,562)(19,297)(32,901)30(74,730)
Intersegment expenses(10,638)(5,662)(1,944)18,244 –
Segment operating expenses(308,783)(236,545)(65,598)40,905(570,021)
Segment EBITDA417,43640,553114,456 – 572,445
Depreciation and amortisation(100,837)(12,480)(66,642) – (179,959)
Impairment of goodwill and assets – (64,000) – – (64,000)
Segment profit/(loss)316,599 (35,927)47,814 – 328,486

Segment capital expenditure200,99415,25595,113 – 311,362
The intersegment eliminations include $22.7 million of transactions between continuing and discontinued
operations which have been eliminated on consolidation.
During the year, the Technology segment procured and sold $11.9 million of battery assets to Regulated
Networks at zero margin. The battery assets are included in the segment capital expenditure for Regulated
Networks. The impact of the sale transaction is not reflected in the segment information presented for
Technology.
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
30 JUN 2016
REVENUE
$000
PROFIT/
(LOSS) BEFORE
INCOME TAX
$000
CAPITAL
EXPENDITURE
$000
Reported in segment information1,142,466328,486311,362
Amounts not allocated to segments (corporate activities):
Revenue
2,1372,137 –
Employee benefit expenses – (26,500) –
Other operating expenses – (25,243) –
Depreciation and amortisation – (14,621) –
Interest costs (net) – (168,805) –
Fair value change on financial instruments – 2,344 –
Associates (share of net profit/(loss)) – 2,809 –
Reversal of impairment of investment in associate – 2,578 –
Capital expenditure – – 11,259
Reported in the financial statements1,144,603103,185322,621
NOTES TO THE INTERIM FINANCIAL STATEMENTS

31
4. DISCONTINUED OPERATIONS
On 20 April 2016, Vector completed the sale of 100% of the shares in its subsidiary Vector Gas Limited
(“Vector Gas”) to First State Funds. Vector Gas owned the gas transmission and non-Auckland gas
distribution businesses.
The assets and liabilities were presented as a disposal group held for sale in the interim financial statements
for the six months ended 31 December 2015.
The disposal group was presented as discontinued operations in the interim financial statements for the
six months ended 31 December 2015 as well as in the 2016 Annual Report. The profit or loss shows these
periods as comparatives.
5. INCOME TAX EXPENSE/ (BENEFIT)
On 12 August 2016, the Court of Appeal released their judgment in respect of a tax dispute between
Vector and the Inland Revenue Department. The dispute related to the tax treatment of monies received
from Transpower for various rights, including access to Vector’s tunnel from Penrose to Hobson and the
transmission corridor on the North Shore. The Court found in favour of Vector. Through the course of the
dispute, Vector had taken a prudent approach and paid taxes in relation to the underlying transaction.
As a result of the judgment and subsequent confirmation that the Commissioner of Inland Revenue will not
appeal the Court of Appeal decision, Vector has recognised a $15.0 million income tax benefit in the period
ended 31 December 2016.
6. PPE AND INTANGIBLES

31 DEC 2016
6 MONTHS
$000
31 DEC 2015
6 MONTHS
$000
30 JUN 2016
12 MONTHS
$000
Key movements during the period
Capital expenditure
172,894152,042342,272
Disposals2,3343,0163,954
PPE transferred to disposal group held for sale – 558,911 –
Intangibles (including goodwill) transferred to disposal group held
for sale
– 335,065 –
Sale of discontinued operations – PPE – – 560,996
Sale of discontinued operations – intangibles (including goodwill) – – 335,037
Impairment of goodwill – – 64,000
Capital commitments
Capital commitments at end of period
77,80370,97157,940
7. OTHER INVESTMENTS
During the period, the group reclassified its investment in NZ Windfarms Limited as a financial asset,
measured at fair value through other comprehensive income (“OCI”). The investment was previously treated
as an associate. The fair value of the investment is determined by reference to its active market price on the
New Zealand Stock Exchange. On initial measurement to fair value, a loss of $1.1 million was recognised in
profit or loss.

32 VECTOR LIMITED INTERIM REPORT 2017
8. BORROWINGS AND DERIVATIVES
NET
DERIVATIVES
$000
BORROWINGS
$000
Balance at 30 June 2016(117,217)(2,256,881)
Fair value movements:
Foreign exchange rates
16,582(16,582)
Interest rates and other fair value changes21,55436,551
Repayment –98,874
Amortised costs –(1,090)
Balance at 31 December 2016(79,081)(2,139,128)
Fair value at 31 December 2016(79,081)(2,117,085)
Senior notes repaymentOn 16 September 2016, $98.9 million (USD 65.0 million) of USD senior
notes were repaid with cash from short-term deposits.
9. EQUITY
9.1 Transactions with owners
DividendsVector Limited’s final dividend for the year ended 30 June 2016 of
8.00 cents per share was paid on 15 September 2016, with a supplementary
dividend of $0.5 million (equating to 1.41 cents per non-resident share).
SharesAt the end of the period, 109,940 treasury shares were allocated to the
employee share purchase scheme (31 December 2015: 114,851,
30 June 2016: 95,129).
NOTES TO THE INTERIM FINANCIAL STATEMENTS

33
9. EQUITY (continued)
9.2 Financial ratios
31 DEC 2016
6 MONTHS
$000
31 DEC 2015
6 MONTHS
$000
30 JUN 2016
12 MONTHS
$000
Earnings per share
Net profit from continuing operations attributable to
owners of the parent
104,425 63,669 55,999
Net profit from discontinued operations attributable to
owners of the parent
–34,977 215,494
Net profit attributable to owners of the parent 104,425 98,646271,493
Weighted average ordinary shares outstanding during the
period (number of shares)
995,656,441 995,636,306 995,642,121
Earnings per share from continuing operations10.5 cents6.4 cents5.6 cents
Earnings per share from discontinued operations–3.5 cents21.6 cents
Total earnings per share10.5 cents9.9 cents27.2 cents
31 DEC 2016
$000
31 DEC 2015
$000
30 JUN 2016
$000
Net tangible assets per share
Net assets attributable to owners of the parent
2,448,6472,306,9772,381,988
Less total intangible assets (1,288,854)(1,339,418)(1,281,656)
Total net tangible assets1,159,793967,5591,100,332
Ordinary shares outstanding (number of shares) 995,645,137 995,640,226 995,659,948
116.5 cents97.2 cents110.5 cents
31 DEC 2016
$000
31 DEC 2015
$000
30 JUN 2016
$000
Economic net debt to economic net debt plus adjusted
equity ratio (“gearing ratio”)
Face value of borrowings
2,155,4052,747,2792,254,279
Less cash and cash equivalents(187,236)(5,981)(321,371)
Economic net debt1,968,1692,741,2981,932,908
Total equity2,467,0952,323,0622,398,335
Adjusted for hedge reserves48,28168,41189,278
Adjusted equity2,515,3762,391,4732,487,613
Economic net debt plus adjusted equity4,483,5455,132,7714,420,521
43.9%53.4%43.7%
In the prior periods, all of the above ratios were impacted by the sale of shares in Vector Gas.

34 VECTOR LIMITED INTERIM REPORT 2017
10. CASH FLOWS

31 DEC 2016
6 MONTHS
$000
31 DEC 2015
6 MONTHS
$000
30 JUN 2016
12 MONTHS
$000
Reconciliation of net profit/(loss) to net cash flows from/(used in)
operating activities
Net profit/(loss) for the period
107,122100,101274,402
Items associated with sale of discontinued operations
Gain on sale of discontinued operations classified as
investing activities
– – (166,206)
Costs of sale of discontinued operations classified as
operating activities
– – (6,892)
Items classified as investing activities
Net loss/(gain) on disposal of PPE and software intangibles
1,7522,7304,312
Non-cash items
Depreciation and amortisation
97,188102,893200,378
Non-cash portion of interest costs (net)(1,466)(574)(1,102)
Fair value change on financial instruments(28)(2,387)(2,344)
Associates (share of net (profit)/loss)(1,123)(432)(2,809)
Impairment – – 61,422
Increase/(decrease) in deferred tax (12,556)7,00520,529
Increase/(decrease) in provisions1,029686(4,505)
83,044107,191271,569
Cash items not impacting net profit/(loss)
Payments of amounts in provisions
– (155)(13,331)
Dividend received from associate1,500 – 1,500
Changes in assets and liabilities
Trade and other payables
8,60511,85424,564
Inventories(1,006)45845
Trade and other receivables (1,990)(2,805)(25,109)
Income tax 27,25329,870(13,600)
32,86238,964(13,300)
Net cash flows from/(used in) operating activities226,280248,831352,054
NOTES TO THE INTERIM FINANCIAL STATEMENTS

35
11. RELATED PARTY TRANSACTIONS
Majority shareholder
dividend
Vector Limited has paid its majority shareholder, Entrust, dividends of
$60.1 million during the period (six months ended 31 December 2015:
$60.1 million, 12 months ended 30 June 2016: $118.3 million).
Associate dividendDuring the period, $1.5 million of dividends were received from
Tree Scape Limited which is an associate of the group (six months ended
31 December 2015: nil, 12 months ended 30 June 2016: $1.5 million).
Outstanding balancesAt 31 December 2016, there are no material outstanding balances due to
or from related parties of the group.
12. CONTINGENT LIABILITIES
DisclosuresThe directors are aware of claims that have been made against entities of
the group and, where appropriate, have recognised provisions for these within
the financial statements.
No material contingent liabilities have been identified.
13. EVENTS AFTER THE END OF THE PERIOD
Financial statements
approval
The interim financial statements were approved by the board of directors
on 23 February 2017.
Interim dividendOn 23 February 2017, the board declared an interim dividend for the year
ended 30 June 2017 of 8.00 cents per share.
No adjustment is required to these interim financial statements in respect
of this event.

36 VECTOR LIMITED INTERIM REPORT 2017
BOARD OF DIRECTORS AND MANAGEMENT TEAM
BOARD OF DIRECTORS
Michael Stiassny – Chairman
James Carmichael
Hugh Fletcher
Jonathan Mason
Dame Alison Paterson
Karen Sherry
Bob Thomson
MANAGEMENT TEAM
Simon Mackenzie – Group Chief Executive
Andre Botha – Chief Networks Officer
Kate Beddoe – Chief Risk Officer
Brian Ryan – Group General Manager Development
Nikhil Ravishankar – Chief Digital Officer
Dan Molloy – Chief Financial Officer
David Thomas – Group General Manager Gas Trading and Metering
ASSOCIATES AND JOINT VENTURES
PRINCIPAL ACTIVITYPROPORTION HELD
31 DEC 201631 DEC 201530 JUN 2016
Associates
Tree Scape Vegetation management
50%50%50%
NZ WindfarmsPower generation
22%*22%22%
Joint Venture
Kapuni Energy Joint VentureCogeneration
50%50%50%
* NZ Windfarms ceased to be treated as an associate during the period.
FINANCIAL CALENDAR 2017
Record date for the interim dividend30 March
Interim dividend paid 13 April
Third quarter operational statisticsApril
Fourth quarter operational statisticsJuly
Full year result and annual reportAugust
Final dividend*September
Annual General MeetingSeptember
* Dividends are subject to board determination
INVESTOR INFORMATION
Ordinary shares in Vector Limited are listed and quoted on the New Zealand Stock Market (NZSX) under the
company code VCT. Vector also has capital bonds listed and quoted on the New Zealand Debt Market (NZDX)
Current information about Vector’s trading performance for its shares and bonds can be obtained on the NZX
website at www.nzx.com. Further information about Vector is available on our website www.vector.co.nz

REGISTERED OFFICE
Vector Limited
101 Carlton Gore Road
Newmarket
Auckland 1023
New Zealand
Telephone 64-9-978 7788
Facsimile 64-9-978 7799
www.vector.co.nz
POSTAL ADDRESS
PO Box 99882
Newmarket
Auckland 1149
New Zealand
INVESTOR ENQUIRIES
Telephone 64-9-213 5179
Email: investor@vector.co.nz
SHARE REGISTRAR
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna
Private Bag 92119
Auckland 1142
New Zealand
Telephone 64-9-488 8777
TO REPORT A FAULT
0508 VECTOR (0508 832 867)
SEE OUR OUTAGE CENTRE FOR MORE
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CAN ALSO OBTAIN OUTAGE INFORMATION ON
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DIRECTORY
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VEC170 03/17

www.vector.co.nz

---

FINANCIAL &
OPERATIONAL
RESULTS
24 February 2017
HALF YEAR ENDED 31 DECEMBER 2016

2
This presentation contains forward-looking statements.
Forward-looking statements often include words such as "anticipates", "estimates", "expects", "intends", "plans",
"believes“ and similar words in connection with discussions of future operating or financial performance.
The forward-looking statements are based on management's and directors’ current expectations and
assumptions regarding Vector’s businesses and performance, the economy and other future conditions,
circumstances and results.
As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and
changes in circumstances. Vector’s actual results may vary materially from those expressed or implied in its
forward-looking statements.
DISCLAIMER

3
MICHAEL STIASSNY
CHAIRMAN

4
•Dividend
•H1 2017 Highlights
•Operational and Financial Overview
•Outlook
•Q & A
AGENDA

5
EXTENDING OUR RECORD OF DIVIDEND GROWTH
6.00
6.506.506.506.50
6.75
7.00
7.25
7.507.50
7.75
8.00
6.00
6.50
6.75
7.25
7.50
7.50
7.50
7.75
7.75
8.00
8.00
FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17
12 consecutive years of dividend growth
(cents per share)
InterimFinal
•Half year dividend 8.00 cents
−Up 0.25 cents per share on prior year
−Fully imputed
•Board remains committed to progressive
dividends
−Supported by strong balance sheet, regulatory
stability and growth opportunities
−Contingent on maintaining BBB credit rating
•Post 2020, our ability to maintain this
approach will depend on
−Interest rates at the 2020 reset
−Our ability to successfully re-invest proceeds
from the sale of Vector Gas

6
SIMON MACKENZIE
GROUP CHIEF EXECUTIVE

7
FY2017 H1 SNAPSHOT –CREATING GROWTH OPPORTUNITIES
CUSTOMER
FOCUS
SUSTAINABLE
GROWTH
SAFETY,
PEOPLE &
CULTURE
OPERATIONAL
EXCELLENCE
PARTNERSHIPS
•Industry leading “de-energised” philosophy improving safety and we recognise the impact of
these changes on customers
•December 2016 TRIFR remains steady and in line with December 2015 results. This sustains
the 40% TRIFR decrease from the previous two year period (FY13)
•Auckland growing with 6,490 new electricity and gas connections added in H1
•Ongoing growth in smart meters and bottle swaps
•Input Methodologies provide certainty through to 2025 –revenue cap, new technology
•Commissioned first utility scale battery in Glen Innes
•Vector and Entrust have formed a significant strategic partnership with Auckland Council to drive
energy efficiency and sustainability in the city
•Working on a peer-to-peer energy trading platform
•Developing models that enable improved understanding of household and network energy usage
•Investing in digital technologies to enhance customer experience
•Battery fleet has grown to 445 and EV has grown to 21 chargers

‹#›
DAN MOLLOY
CHIEF FINANCIAL OFFICER

9
590.6
253.5
140.3
65.1
248.8
77.2
625.6
257.0
172.9
107.1
226.3
79.7
RevenueAdjusted EBITDACapital expenditureNet profitOperating cash flow*Half year dividend
H1 2017 Financial Performance ($m) (Continuing Operations only)
H1 2016
H1 2017
3, 4
GROWTH IN ADJUSTED EBITDA & NET PROFIT
Adjusted EBITDA is not a GAAP measure of profit. For a reconciliation of adjusted EBITDA to EBITDA and net profit refer to page26 of this presentation.
* Operating cash flow includes contribution from discontinued operations in prior period. All other measures are for continuing operations only
+5.9%+1.4%+64.5%-9.0%+23.2%+3.2%

10
ADJUSTED EBITDA BENEFITS FROM METERING GROWTH
253.5
257.0
-0.7
-1.5
+3.4
+2.3
H1 2016Regulated NetworksGas TradingTechnologyCorporateH1 2017
H1 2017 ADJUSTED EBITDA MOVEMENT ($M)
Continuing Operations only (excludes Vector Gas)
As a result of the sale of Vector Gas, we are no longer reporting a Gas Transportation segment. The Auckland gas distribution network and
the Auckland electricity network are now both included in the Regulated Networks segment

11
NET PROFIT GROWTH DRIVEN BY HIGHER CONTRIBUTIONS,
LOWER FUNDING COSTS & ONE OFF TAX GAIN
65.1
107.1
+6.8
+15.4
+15.0
+4.8
H1 2016Capital contributionsInterestTunnel tax gainOtherH1 2017
MOVEMENT IN NET PROFIT AFTER TAX ($M)
Excludes Discontinued Operations
*Tunnel tax gain of $15m from Court of Appeal decision in respect of tax treatment of the sale of rights to use our Penrose to Hobson Street tunnel in Auckland
*

12
RE-INVESTMENT INTO AUCKLAND ACCELERATES
57%
3%
36%
4%
59%
7%
29%
5%
GROSS CAPEX BY SEGMENT
Continuing Operations Only
Regulated Networks
Gas Trading
Technology
Corporate
H1 2016
H1 2017
118.4
141.6
21.9
31.3
-10
10
30
50
70
90
110
130
150
170
190
H1 2016H1 2017
GROSS CAPITAL EXPENDITURE ($m)
Continuing Operations Only
Net capexCapital contributions
•Gross capex up 23.2% to $172.9m. Net capex (after contributions) up 19.6% at $141.6m
•Growth capex up 33.5% to $111.6m. Replacement capex up 8.1% to $61.3m

13
STRONG BALANCE SHEET
2,6252,6822,7452,7411,9331,968
52.5%
52.9%
53.6%
53.4%
43.7%
43.9%
Jun 14Dec 14Jun 15Dec 15Jun 16Dec 16
NET ECONOMIC DEBT & GEARING ($m)
Net economic debt ($m)Gearing
•$160m floating rate notes are to be redeemed in April
•Capital Bonds election date 15 June 2017
160
400
350
297
251
150
307
286
270
355
FY17FY18FY19FY20FY21FY22FY23
GROUP DEBT MATURITY ($m)
Credit Wrapped Floating Rate NotesUSPP (2004)
USPP (2010)USPP (2014)
7% Capital Bonds (2012)Sterling 7.625% Bonds (2008)
Credit Facilities (undrawn)

14
SIMON MACKENZIE
GROUP CHIEF EXECUTIVE

15
TECHNOLOGY RESULT DRIVEN BY SMART METER ROLLOUT
•The mass roll out of smart meters in New Zealand is
drawing to a close
•Significant numbers of new smart meters will still be
deployed for new and replacement sites
•Despite resource challenges industry-wide, more than
10,000 meters installed in Australia
•EBITDA growth driven by smart meters, offset by
business development costs for Australian metering
& new energy technologies
•From Dec 2017, Australian retailers take responsibility
for provision of new and replacement metering
installations
Technology
Segment
57.0
60.4
+5.8
-1.6
-0.8
H1 2016Additional Smart
Meters (incl Arc)
Business Development
Initiatives
OtherH1 2017
ADJUSTED EBITDA MOVEMENT ($M)
H1 2011H1 2012H1 2013H1 2014H1 2015H1 2016H1 2017
METER FLEET (millions)
Smart MetersLegacy MetersGas MetersOther (C&I and Prepay)
0.8
1.5
1.4
1.3
1.1
0.9
0.8

16
GAS TRADING CONTINUES TO BE IMPACTED BY LOWER
NATURAL GAS MARGINS
25.2
23.7
-4.2
+1.8
-2.3
-2.1
+5.3
H1 2016Decline in
natural gas
margins
Increase in
LPG margins
and volume
Lower Liquigas
tolling
Lower
production at
Kapuni
Insurance
proceeds
H1 2017
ADJUSTED EBITDA MOVEMENT ($M)
320
302
266
229
203
158
248
240
200
185
155
FY17FY16FY15FY14FY13FY12
BOTTLE SWAP VOLUMES (‘000 cylinders)
H1H2
•Pressure on trading margins continues, with lower
international hydro carbon prices, lower LPG exports and
lower Kapuniproduction
•Vector’s LPG operations occupy strong market position;
increases in bottle swap, bulk & cylinder volumes
•New bottle plant in South Auckland will be operational in
second half of calendar 2017
Gas Trading
Segment

17
AUCKLAND GROWTH CONTINUES...
•New connections up 19%
•Technology is augmenting our ability to
deliver solutions that give customers choice
and control
•Commerce Commission IM review provides
stability of approach whilst recognising
technological change
−Result marginally better than draft position,
especially for gas
−Revenue cap and accelerated depreciation for Electricity
−Recognises the benefits new energy technologies can
deliver to consumers and the imperative to invest in
networks efficiently
196.4
195.7
-2.4
+1.8
-0.1
H1 2016Revenue net of
pass-through costs
Lower MaintenanceOtherH1 2017
ADJUSTED EBITDA MOVEMENT ($M)
2,657
3,003
3,780
3,916
4,583
1,233
1,499
1,550
1,538
1,907
H1 2013H1 2014H1 2015H1 2016H1 2017
NEW CONNECTIONS
Electricity ConnectionsGas Connections
Regulated
Networks
Segment

18
...BUT DELIVERS CHALLENGES
•Electricity volumes are flat as connection growth is
offset by the continued fall in household electricity
consumption
•Regulatory cash flows weighted towards the end of
asset lives, increasing stranded-assets risk
•Differences between Commission forecasts of inflation
and actual outcomes continue to cost Vector
•Labourand congestion constraints are very real
Regulated
Networks
Segment
*Annual consumption per residential ICP
6,600
6,800
7,000
7,200
7,400
7,600
7,800
8,000
FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16
RESIDENTIAL POWER CONSUMPTION (KWh)*
4,359
4,321
4,271
4,337
4,368
4,340
4,065
4,011
3,981
4,077
4,004
FY12FY13FY14FY15FY16FY17
ELECTRICITY VOLUMES (GWH)
H1H2

19
•Maturity of regulation provides Vector with considerable certainty through to 2025, and gives us confidence to
re-invest into energy networks to support growth in Auckland
•Our strong balance sheet and diverse portfolio ensures we are well positioned to capitalise on the opportunities
emerging from the significant disruption we are seeing in energy markets
•Our metering business is well positioned in New Zealand and is making progress in Australia and we remain
confident of our prospects in this new market
•We have long been at the forefront of recognising the significant disruption taking place in the industry and
leading the way with investments in new energy technologies
•These investments ensure the ongoing relevance of our energy networks; give customers greater choice and
control; and create new opportunities for growth
•We are on track to deliver adjusted EBITDA broadly in line with last year’s result, and towards top end of
previous guidance
OUTLOOK

20
Q&A
ANY QUESTIONS?

21
APPENDICES

22
5 YEAR ADJUSTED EBITDA PERFORMANCE BY SEGMENT
H1 2013H1 2014H1 2015H1 2016H1 2017
Regulated Networks
215.4197.7191.3196.4195.7
Gas Trading
34.025.129.325.223.7
Technology
36.044.849.757.060.4
Corporate
(25.1)(24.6)(25.5)(25.1)(22.8)
Total Group
260.3243.0244.8253.5257.0
260.3
243.0
244.8
253.5
257.0
Adjusted EBITDA (Continuing Operations Only)
$million
For the half year ended 31 December

23
GROUP PROFIT STATEMENT
HALF YEAR ENDED 31DECEMBER ($M)
INCOME STATEMENT
H1 2017
$m
H1 2016
$m
Change
%
Revenue (excluding capitalcontributions)
594.3568.6+4.5
Operatingexpenditure(337.3)(315.1)-7.0
AdjustedEBITDA257.0253.5+1.4
CapitalContributions31.321.9+42.9
Depreciationandamortisation(97.2)(97.0)-0.2
Netinterestcosts(68.6)(90.0)+23.8
Fairvaluechangeonfinancialinstruments0.02.4-100.0
Associates(shareofnetprofit/(loss))1.10.4+175.0
Tax(16.5)(26.1)+36.8
NetprofitfortheperiodfromContinuingoperations107.165.1+64.5
NetprofitfortheperiodfromDiscontinuedoperations
(netoftax)
-35.0n/a
Netprofitfortheperiod107.1100.1+7.0

24
GROUP CASH FLOW
1
HALF YEAR ENDED31 DECEMBER ($M)
CASH FLOW
H1 2017
$m
H1 2016
$m
Operating cash flow
226.3248.8
Replacement capex
(70.3)(71.5)
Dividendspaid(80.3)(80.9)
Cashavailableforgrowthanddebtrepayment75.796.4
Growthcapex(110.0)(91.6)
Otherinvestmentactivities0.1(0.6)
Predebtfinancingcashinflow(34.2)4.2
Repaymentofborrowings(98.9)(6.0)
Otherfinancingactivities(1.0)(0.4)
Increase/(decrease)incash(134.1)(2.2)
1 Half year comparatives includes continuing and discontinued operations

25
SEGMENT RESULTS
HALF YEAR ENDED 31 DECEMBER ($M)
REGULATED NETWORKSTECHNOLOGYGAS TRADINGCORPORATE
H1 2017H1 2016Change %H1 2017H1 2016Change %H1 2017H1 2016Change %H1 2017H1 2016Change %
Revenue excluding
CapitalContributions
353.8353.6+0.197.888.1+11.0150.2151.4-0.82.20.3+633.3
Operating expenditure(158.1)(157.2)-0.6(37.4)(31.1)-20.3(126.5)(126.2)-0.2(25.0)(25.4)+1.6
Segment Adjusted
EBITDA
195.7196.4-0.460.457.0+6.023.725.2-6.0(22.8)(25.1)+9.2
CAPEX
Replacement 44.942.4+5.95.55.4+1.92.13.3-36.48.85.6+57.1
Growth 57.337.5+52.844.344.6-0.79.91.5+560.00.10.0n/a
Total capex102.279.9+27.949.850.0-0.412.04.8+150.08.95.6+58.9

26
GAAP TO NON-GAAP RECONCILIATION
Vector’s standard profit measure prepared under New Zealand GAAP is net profit.
Vector has used non-GAAP profit measures when discussing financial performance
in this document. The directors and management believe that these measures
provide useful information as they are used internally to evaluate performance of
business units, to establish operational goals and to allocate resources. For a more
comprehensive discussion on the use of non-GAAP profit measures, please refer to
the policy ‘Reporting non-GAAP profit measures’ available on our website
(vector.co.nz).
Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New
Zealand International Financial Reporting Standards) and are not uniformly defined,
therefore the non-GAAP profit measures reported in this document may not be
comparable with those that other companies report and should not be viewed in
isolation from or considered as a substitute for measures reported by Vector in
accordance with NZ IFRS.
In this period we have amended our definition of Adjusted EBITDA to exclude
capital contributions.
Definitions
EBITDA
Earnings before interest, taxation, depreciation and amortisation from continuing
operation.
Adjusted EBITDA
EBITDA adjusted for fair value changes, capital contributions, associates,
impairments and significant one-off gains, losses, revenues and/or expenses.
1 Extracted from audited financial statements
GAAP toNon-GAAP reconciliation
EBITDA and Adjusted EBITDA
(Continuing operations only)
Half year ended 31 December
H1 2017
$M
H1 2016
$M
Reportednet profit for the period (GAAP)107.165.1
Addback:netinterestcosts
1
68.690.0
Addback:tax(benefit)/expense
1
16.526.1
Addback:depreciationandamortisation
1
97.297.0
EBITDA289.4278.2
Adjustedfor:
Associates (share of net(profit)/loss)
1
(1.1)(0.4)
Fair value change on financial instruments
1
0.0(2.4)
CapitalContributions(31.3)(21.9)
AdjustedEBITDA257.0253.5

27
SEGMENT ADJUSTED EBITDA
SEGMENTADJUSTED EBITDA ($m)
H1 2017H1 2016
Half yearended 31 December
Reported
segment EBITDA
less capital
contributions
Segment
adjusted EBITDA
Reported
segment EBITDA
less capital
contributions
Segment
adjusted EBITDA
Technology
60.9(0.5)60.457.3(0.3)57.0
Gas Trading
23.70.023.725.20.025.2
Unregulated Segments
84.6(0.5)84.182.5(0.3)82.2
Regulated Networks Continuing
226.5(30.8)195.7218.0(21.6)196.4
Regulated Networks Discontinued
0.00.00.054.3(1.9)52.4
Regulated Segments
226.5(30.8)195.7272.3(23.5)248.8
Corporate
(22.8)0.0(22.8)(25.1)0.0(25.1)
TOTAL
288.3(31.3)257.0329.7(23.8)305.9
TOTAL -Continuing OperationsOnly
288.3(31.3)257.0275.4(21.9)253.5

---

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Notice of event affecting securities
Vector Limited
John RodgerDIRECTORS RESOLUTION
09 978 785223022017