Vector FY18 Interim Results
FINANCIAL RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017
VECTOR EXPECTING A FLAT FY18 RESULT, IN
LINE WITH PREVIOUS GUIDANCE
Financial Results Summary
Vector’s financial results for the half-year reflect its long-term investment in new energy future
initiatives and the impact of Auckland growth on connections and capital expenditure.
Revenue was up to $676.2 million from $625.6 million, due primarily to the acquisition of E-Co
Products Group on 31 March. However, Group net profit was down to $79.0 million from $107.1
million in the prior period. This is largely because of one-off items totalling $18.8 million
1
in the
prior year, as well as a significant increase in depreciation and amortisation in this half.
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) were
down to $250.0 million from $257.0 million in the prior period. Regulated Business earnings were
down $3.0 million largely due to an increase in maintenance expenditure. Gas Trading earnings
were down $5.3 million, because of a $5.3 million insurance settlement one-off in the prior year,
with underlying earnings flat.
While earnings in the Technology segment grew $4.2 million and helped to offset the earnings
decline in Regulated Networks and Gas Trading, growth was lower than expected. The gains
from acquisitions and the New Zealand smart meter roll-out were diluted by slow Australian meter
deployment in advance of the Power of Choice reforms, by a lower than expected performance of
E-Co Product Group’s heat-pump business, by the cost of establishing HRV Solar, and by
changes to the way we account for internal communications services.
Capital expenditure (capex) increased 5.7% to $182.7 million from $172.9 million in the prior
period. This was driven by Auckland growth and by higher network replacement capital
expenditure, which was partly offset by lower metering capital expenditure in line with the slow-
down in New Zealand meter deployment rates.
1
These included a $5.3m ($3.8m post tax) insurance payment to Liquigas and a tax gain of $15 million following
the Court of Appeal ruling over the tax treatment of the sale of rights to use our Penrose to Hobson Street tunnel.
MARKET RELEASE
28 February 2018
MARKET RELEASE
28 February 2018
Results Table
Six months ended 31 December H1 2018 $m H1 2017 $m Change %
Revenue 676.2 625.6 +8.1
Adjusted EBITDA 250.0 257.0 -2.7
Net Profit after tax 79.0 107.1 -26.2
Operating cash flow 236.0 226.3 +4.3
Dividend per share (cents) 8.25 8.00 +3.1
Creating long-term and sustainable value
Vector Chairman Michael Stiassny said, “The six months to 31 December 2017 saw continued
progress towards Vector’s ambition of creating a new and more sustainable energy future.
“We believe the business is well positioned for the future. However, we were not satisfied with the
slower than expected growth in our Technology part of the business. In particular, this was
attributable to disappointing results in the E-Co Products Group’s heat pump business, as well as
the cost of establishing the new HRV Solar business ahead of its recent launch in Auckland. In
metering, installations in Australia were lower than hoped for as the market waited for the Power
of Choice reforms to take effect in December 2017.
“In addition, there was increased planned and unplanned maintenance costs in our Regulated
Networks business to accommodate Auckland’s continued rapid growth as well as the increased
need to manage the vegetation risks to energy infrastructure.
“All these areas will be a key focus for the second half of the financial year. In a world being
rapidly disrupted, we must maintain our focus on creating lasting and sustainable value for our
customers, for shareholders and for New Zealand.
“According to the International Renewable Energy Agency (IRENA), by 2020, all the renewable
power generation technologies that are now in commercial use will fall within the fossil fuel-fired
cost range, with most at the lower end or even undercutting the cost of fossil fuels.
“Over the next decade, as the cost of solar and wind energy generation and battery storage
inevitably falls and becomes competitive with traditional generation, we expect energy to be
increasingly distributed, decentralised and democratised. Greater connectivity, artificial
intelligence and data analytics will accelerate the adoption of the ‘internet of energy’, benefiting
industries, communities, businesses, and individuals.
MARKET RELEASE
28 February 2018
“Auckland is now one of the fastest growing cities in the western world, so energy infrastructure
must accommodate this growth intelligently, reliably, sustainably, and cost-effectively. Customer
expectations are changing too – in today’s world, we all expect continuous service and the ability
to access what we want, when we want, and how we want.
“These are the mega trends we have observed in New Zealand and globally that have been
driving our thinking as a business. And as has occurred in all other industries impacted by
technological disruption, we believe these trends will give consumers more control and choice
over the services they use and the way they use them.
“In December 2017, the Government outlined the draft terms of reference for the forthcoming
review of retail electricity pricing in New Zealand, a review that Vector believes is timely. While
the legacy generation and retail energy market framework has served New Zealand for some
time, it may no longer be the best framework for a future where customers have more control
over how, with whom, and when they use energy, where innovative companies may seek to enter
the retail electricity market, where the impacts of climate change may impact the sector, and
where technology can play a much greater role in enabling choice and control.”
Vector Group Chief Executive Simon Mackenzie said, “We are investing to facilitate this future in
different ways. Through our network, using a mix of traditional infrastructure and emerging
technologies to support Auckland’s needs now and into the future. Through smart metering to
give consumers better information on their usage and enable retailers to innovate with new
products and models. And through new energy technologies for residential and commercial
customers via HRV and PowerSmart.
“In addition, our ambitions and presence are increasingly extending beyond New Zealand. Our
smart meter business is well positioned in Australia and will be deploying smart meters for at
least four leading Australian electricity retailers in 2018. PowerSmart is delivering the 5MW
battery to Territory Generation in Alice Springs in the Northern Territory, and has been selected
for a similar project in Niue in the South Pacific.
“A scenario is emerging where what is good for consumers is also good for our environment, for
network resiliency, for Auckland and, ultimately, for New Zealand. It’s an elegant dynamic – the
more energy generation becomes distributed, the more control shifts to the consumer, the more
they can reduce their own costs, the more resilient the network system becomes and the more
sustainable and less carbon intensive our energy supply becomes.
MARKET RELEASE
28 February 2018
“Having a significantly greater number of renewable and localised electricity generation sources
will also help address one of the most pressing issues we face as a nation. Increasingly, climate
change is altering New Zealand weather patterns. This means we must factor an increase in the
number of ‘1 in 100 year’ extreme weather events and an increase in the risk of drought, with the
consequent impact on New Zealand’s lake levels, so critical to our energy supply.
“Electricity will play a key role in helping to shift New Zealand to a low carbon economy, and
technology will be a critical enabler. The world-leading internet-of-energy capabilities of mPrest,
the next big advancement in energy systems, allows us to manage energy systems in more
sophisticated ways, using data analytics, machine learning and artificial intelligence to manage
network systems more efficiently, dynamically shift demand and improve resilience - as well as
put more power and control in the hands of consumers.
“To achieve our objectives, we must continue to take the lead on innovation as new energy
technologies emerge and evolve. We must trial and invest in ways to manage Auckland’s future
energy needs that reflect what customers will want tomorrow, not just today.
“As part of a wider multi-million-dollar energy efficient partnership with Auckland Council we
launched Vector Lights in January 2018. It is a brilliant showcase for new energy solutions that is
now lighting up Auckland’s Harbour Bridge using a combination of solar, battery, LED, and peer-
to-peer technology, and is living proof that the new energy future is now possible.
Looking ahead
Mr Stiassny said, “For Vector, while we are not entirely satisfied with our half-year financial
results, we have maintained good operational momentum towards our longer-term goals. We’ve
introduced a number of new innovations. We’ve diversified the Group even further and explored
new opportunities. We have positioned ourselves well in a number of new and emerging markets.
“Vector’s balance sheet remains strong, with gearing as at 31 December 2017 at 47.3%, up from
43.9% at the prior half-year. We’re proud of the fact that we have paid out almost $1.7 billion in
dividends over the last 12 years and that we have added $2.2 billion in investments into electricity
and gas networks over that same time.
“As flagged last year, the Board has been reviewing the company’s dividend policy and has now
approved a new progressive policy. Vector will increase dividends by at least 0.25 cents per
MARKET RELEASE
28 February 2018
share annually provided the company has the financial capacity to do so. We will review this
policy once the parameters for the 2020 electricity reset are established.
“In line with this policy, the directors have declared a dividend of 8.25 cents per share, up 0.25
cents on the prior year’s interim dividend of 8.0 cents per share. The record date for dividend
entitlement is 28 March 2018 and the payment date is 11 April 2018.
“Looking ahead, we reaffirm our guidance from August 2017 for adjusted EBITDA for the full-year
to 30 June 2018 to be at or around last year’s result.”
MARKET RELEASE
28 February 2018
APPENDIX: NON-GAAP PROFIT REPORTING MEASURES
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 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,
capital contributions, associates, impairments and significant one-off
gains, losses, revenues and/or expenses.
GAAP to Non-GAAP Reconciliation
EBITDA and adjusted EBITDA
1
Six months ended 31 December
H1 2018
$M
H1 2017
$M
Reported net profit for the period (GAAP)
79.0 107.1
Add back: net interest costs 66.4 68.6
Add back: tax (benefit)/expense 31.9 16.5
Add back: depreciation and amortisation 109.6 97.2
EBITDA 286.9 289.4
Adjusted for:
Associates (share of net (profit)/loss) 0.1 (1.1)
Fair value change on financial instruments (2.8) -
Capital Contributions (34.2) (31.3)
Adjusted EBITDA 250.0 257.0
1
Extracted from audited financial statements
MARKET RELEASE
28 February 2018
SEGMENT ADJUSTED EBITDA
($m) H1 2018 H1 2017
Six months ended 31 December
Reported
segment
EBITDA
less capital
contributions
Segment
adjusted
EBITDA
Reported
segment
EBITDA
less capital
contributions
Segment
adjusted
EBITDA
Technology 65.1 (0.4) 64.7 61.0 (0.5) 60.5
Gas Trading 18.4 - 18.4 23.7 - 23.7
Unregulated Segments 83.5 (0.4) 83.1 84.7 (0.5) 84.2
Regulated Segments 226.5 (33.8) 192.7 226.5 (30.8) 195.7
Corporate (25.8) - (25.8) (22.9) - (22.8)
TOTAL 284.2 (34.2) 250.0 288.3 (31.3) 257.0
About Vector
Vector is the country’s largest distributor of electricity and gas, owning the lines and pipes to
households and businesses across Auckland. It is working innovatively to create a smarter and
more affordable energy future. Vector is listed on the New Zealand Stock Exchange with ticker
symbol VCT. Our majority shareholder, with voting rights of 75.1%, is Entrust.
For further information, visit www.vector.co.nz
ENDS
---
THE NEW
ENERGY
FUTURE
IS NOW
HERE
VECTOR://
IR 2018
CREDIT: PHOTOGRAPH SUPPLIED BY CHRIS WEISSENBORN.
Vector is focused on leading the creation of a
new energy future. A future where new energy
technologies can help make energy more
affordable, accessible, and sustainable for all
communities, businesses, and households. And,
ultimately, a future where Vector can deliver
lasting value for customers, shareholders and
for New Zealand. Vector Lights on Auckland’s
Harbour Bridge, a showcase for innovative and
sustainable energy solutions, is powerful proof
that this new energy future is now here.
VECTOR LIGHTS. BRIDGING THE GAP
BETWEEN WHAT'S POSSIBLE AND WHAT'S
NOW ACCESSIBLE TO EVERYONE.
2 ——— Vector Lights
4 ——— Did you know?
5 ——— Performance highlights
6 ——— Chairman and Group Chief Executive report
12 ——— Business review
18 ——— Operating statistics
19 ——— Financial overview
20 ——— Financial performance trends
22 ——— Non-GAAP financial information
23 ——— Interim financial statements
41 ——— Directory
VECTOR LIGHTS
Auckland Harbour Bridge
VECTOR’S LIFE
SPIRAL OF ENERGY
Vector Lights is
evidence of a system
of disruptive energy
technologies that
delivers more value
and choice to
consumers, makes
energy supply more
resilient, leads to
more industry
innovation, and
supports a more
sustainable future.
2
Nearly all the technologies
sustainably powering Vector Lights
are now available to households and
businesses. As consumers embrace
these new technologies this will
fundamentally change the way our
energy system works – benefiting
everyone in the process.
LOCALISED,
CHEAPER,
CLEANER
ENERGY.
SMARTER, MORE
DISTRIBUTED,
RESILIENT AND
EFFICIENT
ENERGY
NETWORK
LOWER
NETWORK
COSTS
INCREASED INNOVATION
AND TECHNOLOGY
INVESTMENT
CREATING VALUE FOR CUSTOMERS, FOR THE
ENVIRONMENT, FOR INDUSTRY, FOR SHAREHOLDERS
AND FOR NEW ZEALAND.
VALUE, CHOICE
AND CONTROL FOR
CONSUMERS
NETWORK
RESILIENCE
BATTERY
STORAGE
DIGITAL
TECHNOLOGY
RENEWABLE
ENERGY
CHANGING ENERGY
ECONOMICS
SUPPORTING A
TRANSITION TO A
LOWER CARBON
ECONOMY
Vector://IR 182
VECTOR’S LIFE
SPIRAL OF ENERGY
VECTOR LIGHTS //
3
Energy disruption that benefits all
Auckland — Vector Lights demonstrates the new energy
technologies that are now possible for all
— The power needed for Vector Lights on the
Harbour Bridge is matched by renewable energy
from solar and battery storage arrays in
Wynyard Quarter
New Zealand — What is proven in Auckland shows what’s
possible elsewhere
— Having more renewables, more choice, and
a greater ability to smooth peaks delivers
more value
Everyday consumers — The disruptive technologies used by Vector Lights
are scalable from projects to cities, right down to
individual homes and businesses
— Consumers can lower costs, choose an energy
source, control their use and share what they
generate. This is the democratisation and
localisation of energy
The environment — Increased localisation of generation, less reliance
on major infrastructure, less carbon and reduced
energy distribution requirements
— Convergence with other sectors (e.g.
transport and electric vehicles) enhances
environmental impacts
Energy industry — Localised energy sourcing and balanced demands
reduces capital intensive infrastructure, increases
network resilience and lowers costs
The technology sector — More innovation and investment drives further
research, idea generation and breakthrough
new technologies
The world’s cities — These technologies and integrated systems are
already being sought for implementation in other
world cities
Investors — These trends reinforce the growing importance of
Vector’s role in delivering the new energy future in
a rapidly evolving sector.
Vector://IR 183
VECTOR
FAC TS ://
DID YOU
KNOW?
Vector’s size
and scale
• Vector provides
infrastructure for
more than 1.5 million
New Zealanders
energy needs.
• On call 24/7 to keep
power flowing.
• 18,607km of overhead
and underground
network.
• 4,382km of gas mains
pipeline.
• More than 120,000
power poles.
• Provide smart
meters to more
than 1.3 million
New Zealand homes
and businesses.
Sustainability
• Transport is the
highest contributor
to Auckland’s
gross greenhouse
gas emissions at
39.7%, followed by
stationary energy at
29.5% and industrial
processes and product
use 21.1%.
1
• Over 50,000 rapid
electric vehicle
charging sessions
have occurred over the
last calendar year at
Vector’s EV charging
stations, providing
371MWh of electricity
to electric vehicle
users, with more than
401,843kg of CO
2
e
emissions avoided.
• Vector's corporate
fleet of pool cars in
Auckland is now 100%
electric or hybrid.
• Vector has 18x
50kW rapid and 9x
standard EV chargers
across Auckland.
• Vector Lights –
90,000 solar
powered LEDs, with
248 solar panels
providing energy for
the Auckland Harbour
Bridge alongside
475kWh battery
storage.
New technology
• Average household
electricity
consumption has
reduced 11% in the
last 10 years, with new
technology enabling
energy efficiency.
• On average, new
homes use up to 30%
less electricity per sqm
than older homes.
• Vector is using
acoustic testing
technology as a way
of identifying network
defects before they
affect customers.
• More than 16,000
homes are generating
their own electricity
across New Zealand
as consumers make
the most of disruptive
technology.
Auckland growth
and complexity
of network
• Auckland is one of the
fastest growing cities
in the world, growing
at over 3% each year.
• In a typical week,
Auckland gains 825
new residents and 278
new houses.
• Vector connects on
average approximately
1,000 new electricity
customers, 300 new
gas customers, and
70 new generation
connections
every month.
• Traffic accidents and
falling trees account
for approximately 23%
of power outages.
Cost to
consumers
• Average cost to
Auckland households
for Vector’s role
in keeping power
delivered is $1.23
per day.
• Distribution makes up
26% of the average
electricity bill in
New Zealand.
• In 2017, Entrust
distributed $350 to
each beneficiary – and
has distributed more
than $1.2 billion to
Aucklanders over the
last decade.
1. Shanju Xie, Auckland’s
Greenhouse Gas Inventory
to 2015, October 2017
Technical Report 2017/026,
Research and Evaluation
Unit (RIMU).
Vector://IR 184
PERFORMANCE HIGHLIGHTS
HALF YEAR
SNAPSHOT
Net profit
Group net profit for
the six months to
31 December 2017 falls
26.2% to $79.0 million
Adjusted EBITDA
Adjusted EBITDA falls
2.7% to $250.0 million
250.0
MILLION
$
79.0
MILLION
$
FINANCIAL
SNAPSHOT:
5.7%
Capex
Capex rises 5.7% to
$182.7 million
Interim dividend
Interim dividend
increased 3.1%
8.25
OPERATIONAL
SNAPSHOT:
Sustainable
Business Network
award achieved
for Kupe St
development
mPrest internet
of energy solution
being implemented
on our network
Now deploying
smart meters
for four leading
Australian retailers
under the Power of
Choice reforms
Launched HRV
Solar in Auckland,
rest of NZ to
follow
www.hrvsolar.co.nz
First major
corporate to be
an accredited
Living Wage
employer
PowerSmart
projects underway
in Alice Springs
and the South
Pacific
Vector Lights
launched on
Auckland
Harbour Bridge
CPS
OnGas Papakura
Bottle Swap plant
commissioned
First New Zealand
major hazard facility
to have a Safety
Case approved
Vector://IR 185
LEADERSHIP
Chairman and Group Chief Executive report
Vector’s financial results
for the half-year reflect
our long-term
investment in new
energy future initiatives
and the impact of
Auckland growth on
connections and capital
expenditure.
We believe the business
is well positioned for the
future. However, we were
not satisfied with the
slower than expected
growth in our
Technology part of the
business. In particular,
this was attributable to
disappointing results in
the E-Co Products
Group’s heat pump
business, as well as the
cost of establishing the
new HRV Solar business
ahead of its recent
launch in Auckland. In
metering, installations in
Australia were lower than
hoped for as the market
waited for the Power of
Choice reforms to take
effect in December
2017. In addition, there
was increased planned
and unplanned
maintenance costs in
our Regulated Networks
business to
accommodate
Auckland’s continued
rapid growth as well as the increased need to
manage the vegetation risks to energy infrastructure.
All these areas will be a key focus for the second half
of the financial year.
Revenue was up to $676.2 million from
$625.6 million, due primarily to the acquisition
of E-Co Products Group on 31 March. However,
Group net profit was down to $79.0 million from
$107.1 million in the prior period. This is largely
because of one-off items totalling $18.8 million
in the prior year
1
, as well as a significant increase
The six months to
31 December 2017
saw continued
progress towards
Vector’s ambition of
creating a new and
more sustainable
energy future.
Simon Mackenzie
—
GROUP CHIEF EXECUTIVE
Michael Stiassny
—
CHAIRMAN
CONTINUED PROGRESS
TOWARDS A NEW
1. These include a $5.3 million ($3.8 million post tax) insurance payment to Liquigas and a tax gain
of $15.0 million following the Court of Appeal ruling over the tax treatment of the sale of rights to
use our Penrose to Hobson Street tunnel.
Vector://IR 186
in depreciation and
amortisation in this half.
Adjusted earnings
before interest, tax,
depreciation and
amortisation (Adjusted
EBITDA) were down to
$250.0 million from
$257.0 million in the
prior period. Regulated
Business earnings were
down $3.0 million
largely due to an
increase in maintenance
expenditure. Gas
Trading earnings were
down $5.3 million,
because of a
$5.3 million insurance
settlement one-off in
the prior year, with
underlying earnings flat.
While earnings in the
Technology segment
grew $4.2 million and
helped to offset the
earnings decline in
Regulated Networks and
Gas Trading, growth was
lower than expected for
the reasons set out
earlier, and also due to
changes to the way we
account for internal
communications
services.
Capital expenditure
(capex) increased 5.7%
to $182.7 million from
$172.9 million in the
prior period. This was
driven by Auckland
growth and by higher
network replacement
capital expenditure,
LEADERSHIP
//
which was partly offset
by lower metering capital
expenditure in line with
the slow-down in
New Zealand meter
deployment rates.
Creating long-lasting,
sustainable value
In a world being rapidly
disrupted, we must
maintain our focus on
creating lasting and
sustainable value for
our customers, for
shareholders and for
New Zealand.
According to the
International Renewable
Energy Agency (IRENA),
by 2020, all the
renewable power
generation technologies
that are now in
commercial use will fall
within the fossil fuel-fired
cost range, with most at
the lower end or even
undercutting the cost
of fossil fuels.
Over the next decade,
as the cost of solar and
wind energy generation
and battery storage
inevitably falls and
becomes competitive
with traditional
generation, we expect
energy to be increasingly
ENERGY FUTURE
Vector://IR 187
LEADERSHIP
Chairman and Group Chief Executive report
distributed, decentralised and democratised. Greater
connectivity, artificial intelligence and data analytics
will accelerate the adoption of the ‘internet of
energy’, benefiting industries, communities,
businesses, and individuals.
Auckland is now one of the fastest growing cities
in the western world, so energy infrastructure must
accommodate this growth intelligently, reliably,
sustainably, and cost-effectively. Customer
expectations are changing too – in today’s world,
we all expect continuous service and the ability
to access what we want, when we want, and how
we want.
These are the mega trends we have observed in
New Zealand and globally that have been driving
our thinking as a business. And as has occurred
in all other industries impacted by technological
disruption, we believe these trends will give
consumers more control and choice over the
services they use and the way they use them.
As a famous quote from writer William Gibson
goes, “The future is already here, it’s just not evenly
distributed”. We have a role to play in addressing
that, and we are investing to facilitate this future
in different ways. Through our network, using a
mix of traditional infrastructure and emerging
technologies to support Auckland’s needs now and
into the future. Through smart metering, to give
consumers better information on their usage and
enable retailers to innovate with new products and
models. And through new energy technologies for
residential and commercial customers via HRV
and PowerSmart.
Already market leaders in delivering healthy homes,
HRV’s current offering includes ventilation, heat
pumps, and water filtration. Over time we see
significant opportunities for HRV to deliver
residential solar solutions. At the beginning of 2018,
HRV Solar launched in the Auckland market with
a nationwide launch to follow.
In addition, our
ambitions and presence
are increasingly
extending beyond
New Zealand. Our smart
meter business is well-
positioned in Australia
and will be deploying
smart meters for at least
four leading Australian
electricity retailers in
2018. PowerSmart is
delivering the 5MW
battery to Territory
Generation in Alice
Springs in the Northern
Territory, and has been
selected for a similar
project in Niue in
the South Pacific.
Treescape has built a
significant business in
Australia, and is
providing vegetation
management services to
a number of Australian
energy networks
and councils.
As part of a wider multi-
million-dollar energy
efficient partnership with
Auckland Council we
launched Vector Lights
in January 2018. It is a
brilliant showcase for
new energy solutions
that is now lighting up
Auckland’s Harbour
Bridge using a
combination of solar,
battery, LED, and peer-
to-peer technology, and
is living proof that the
new energy future is
now possible.
The new energy
life spiral
A scenario is emerging
where what is good for
consumers is also good
for our environment, for
network resiliency, for
Auckland and, ultimately,
for New Zealand.
It’s an elegant dynamic
– the more energy
generation becomes
distributed, the more
control shifts to the
consumer, the more
they can reduce their
own costs, the more
resilient the network
system becomes and
the more sustainable
and less carbon
intensive our energy
supply becomes.
Over the next decade,
we expect to see a lot
more distributed energy
resources such as solar,
wind, battery, and
electric vehicles on our
network. Power
generation will shift to
a broader, more diverse
generation sector as
consumers can choose
from a wider range of
energy sources that are,
quite literally, closer
to home.
A more distributed
energy network with
a greater number of
localised generation and
storage sources will be
far more resilient. It will
Vector://IR 188
save money for
consumers and put
more power and control
in their hands because
they can generate, store
and exchange their own
energy. They can use
smart technology to
dynamically manage
their energy use,
consuming energy at
more convenient or less
expensive times to suit
their individual
preferences.
It will reduce the high
peaks that network
operators need to build
capacity for because
‘internet of energy’
technology and
improved access to data
will enable consumer
needs to be better
understood, peaks to be
smoothed, and energy
consumption to be
more evenly distributed,
leading to greater
network utilisation and
efficiency. To use a
transport analogy, it
means avoiding the cost
of building a six-lane
motorway for the peak
hour because traffic can
be spread across the
whole day.
It will help maintain
existing network
infrastructure more
efficiently, because
technology can be
deployed to optimise
maintenance programmes, identify and pre-empt
problems before they occur, and restore power more
seamlessly and quickly following any unexpected
outages, such as the storm damage experienced
in early January 2018.
Having a significantly greater number of renewable
and localised electricity generation sources will also
help address one of the most pressing issues we
face as a nation. Increasingly, climate change is
altering New Zealand weather patterns.
This means we must factor an increase in the
number of ‘1 in 100 year’ extreme weather events
and an increase in the risk of drought, with the
consequent impact on New Zealand’s lake levels,
so critical to our energy supply. Already, New Zealand
has seen examples in 2017 of wholesale energy
prices rising significantly due to the risks of a
dry year.
This is why a system wide view of operating energy
infrastructure more sustainably is a critical need for
New Zealand, and this is why Vector has signed up
to the United Nations Sustainable Development
Goals. Electricity will play a key role in helping to shift
New Zealand to a low carbon economy, and
technology will be a critical enabler.
The electrification of transport is also an emerging
factor. The number of electric vehicles (EV’s) on our
roads is roughly doubling year on year, and EV costs
are coming down, so energy systems must have the
resiliency to cope with a surge in localised demand
from more EV’s being charged and EV’s with longer
range being introduced.
A scenario is
emerging where
what is good for
consumers is also
good for our
environment, for
network resiliency,
for Auckland and,
ultimately, for
New Zealand.
—
Vector://IR 189
Taking the lead
To achieve our objectives, we must continue to take
the lead on innovation as new energy technologies
emerge and evolve. We must trial and invest in ways
to manage Auckland’s future energy needs that
reflect what customers will want tomorrow, not
just today.
In terms of innovation, we invest significantly in
energy research & development. We already
collaborate with some of the most innovative
companies in the world and we are constantly
pioneering new energy technology solutions for
customers. And we are very open to working with
commercial partners and with Government as we
believe the expertise and technology proven in
Auckland can be applied elsewhere in the country.
We must continue to look after what matters – our
people, our customers, and our environment. We
have invested in skills and leadership development
to attract, grow and retain new talent, and to upskill
our people for the future of work. We have
implemented a comprehensive diversity and
inclusion programme to ensure that our business
benefits from diversity of background and thought.
We have chosen to prioritise the health and safety of
our people and customers with regards to live-line
work and we have achieved certification to AS/NZS
4801 and ISO 14001 standard for our Health Safety
and Environment Management System. The new
gas bottling plant commissioned in Papakura can fill
up to 6,000 gas bottles a day, and it is a world-class
facility that sets a benchmark for safety. It is the
first plant in New Zealand to have an approved
Safety Case under the new upper tier major hazard
facilities regulations.
Whilst we have seen an increase in our Total
Recordable Injuries Frequency Rate (TRIFR) in the
first half of the year (primarily from our contracted
workforce), this has come from more comprehensive
LEADERSHIP
Chairman and Group Chief Executive report
safety reporting by field service providers. As a
consequence, while we do not anticipate meeting
our TRIFR reduction targets for the financial year,
we are satisfied we are continually lifting the bar
and improving safety across our workforce and
supply-chain.
We are proud to say that Vector has led the way on
fair pay, in November 2017 becoming the first large
corporate in New Zealand to qualify as an accredited
Living Wage employer, and accelerating our work
to deliver pay equity, with our efforts recognised with
a nomination for the YMCA Equal Pay Award in
November 2017.
We invest millions every year towards preventing
problems for customers before they occur. We have
teams in the field ready to navigate Auckland traffic
and go out into storms to restore power for
Aucklanders. The world-leading internet-of-energy
capabilities of mPrest, the next big advancement in
energy systems, allows us to manage energy
systems in more sophisticated ways, using data
analytics, machine learning and artificial intelligence
to manage network systems more efficiently,
dynamically shift demand and improve resilience -
as well as put more power and control in the hands
of consumers.
And we have worked closely with Auckland
communities, through our work alongside Entrust,
Ngāti Whātua and Auckland Council to deliver new
and more democratic energy solutions for
communities in Orakei, Glen Innes and South
Auckland, and through growing the dividends
we have been able to deliver for our shareholders.
In December 2017, we won the Revolutionising
Energy category at the Sustainable Business
Network awards for our work with Ngāti Whātua
on their Kāinga Tuatahi housing development in
Kupe St, Ōrākei.
Vector://IR 1810
Michael Stiassny
Chairman
Looking ahead
In December 2017, the Government outlined the
draft terms of reference for the forthcoming review
of retail electricity pricing in New Zealand, a review
that Vector believes is timely.
While the legacy generation and retail energy market
framework has served New Zealand for some time,
it may no longer be the best framework for a future
where customers have more control over how, with
whom, and when they use energy, where innovative
companies may seek to enter the retail electricity
market, where the impacts of climate change may
impact the sector, and where technology can play
a much greater role in enabling choice and control.
For Vector, while we are not entirely satisfied with our
half-year financial results, we have maintained good
operational momentum towards our longer-term
goals. We’ve introduced a number of new
innovations. We’ve diversified the Group even
further and explored new opportunities. We have
positioned ourselves well in a number of new and
emerging markets.
Vector’s balance sheet remains strong, with gearing
as at 31 December 2017 at 47.3%, up from 43.9%
at the prior half-year. We’re proud of the fact that we
have paid out almost $1.7 billion in dividends over
the last 12 years and that we have added $2.2 billion
in investments into electricity and gas networks over
that same time.
As flagged last year, the Board has been reviewing
the company’s dividend policy and has now
approved a new progressive policy. Vector will
increase dividends by at least 0.25 cents per share
annually provided the company has the financial
capacity to do so. We will review this policy once
the parameters for the 2020 electricity reset are
established. Full details of the policy can be found
at www.vector.co.nz/investors.
In line with this policy, the directors have declared
an interim dividend of 8.25 cents per share, up
0.25 cents on the prior year’s interim dividend of
8.0 cents per share. The
record date for dividend
entitlement is 28 March
2018 and the payment
date is 11 April 2018.
Looking ahead, we
reaffirm our guidance
from August 2017 for
adjusted EBITDA for the
full-year to 30 June
2018 to be at or around
last year’s result.
It’s a time of rapid
change for the energy
industry. We are
committed to continuing
to lead and to positively
shaping the new energy
future for the benefit of
consumers, of Auckland,
of New Zealand
and beyond.
Simon Mackenzie
Group Chief Executive
Vector://IR 1811
BUSINESS REVIEW
Unregulated Business
During the six-month period, we installed
44,804 advanced meters in New Zealand and
7,515 advanced meters in Australia. Our smart
meter base grew 10.8% to 1.33 million
1
from
1.20 million the year before. As communicated
in August, Vector is now reaching the end of its
smart meter roll-out in New Zealand, and we are
targeting a reduced deployment of around 80,000
to 100,000 meters over FY18. After that, the focus
in New Zealand will shift to managing the existing
electricity meter fleet and installing new and
replacement meters as required.
For the past three years, we have been targeting
Australia to deliver the next phase of growth for
the metering business. We are pleased with the
progress made in Australia over the past six
months. In particular, over this period we
successfully completed the development of the
system changes required to deliver the Power of
Choice, the new Australian electricity industry
reforms, and achieved full accreditation from the
Australian Energy Market Operator (AEMO).
The Power of Choice reforms went live in the
first week of December 2017, so all new and
replacement residential electricity meters
2
must
now be advanced meters, to be installed by
metering co-ordinators appointed by electricity
retailers. Vector will be deploying advanced meters
on behalf of at least four leading electricity retailers
in 2018 across New South Wales, Queensland,
South Australia and the ACT. Metering volumes
across the industry are expected to rise as the
demand that had been suppressed during the wait
for Power of Choice to go live is met.
Late in FY17, Vector’s electricity business entered
into a lease with Vector Communications over the
fibre used to provide SCADA connectivity across
its network. The lease is accounted for as capital
expenditure, which for the period reduced Vector
TECHNOLOGY
Technology division
revenue rose 36.1% to
$133.9 million from
$98.4 million at
31 December 2016,
driven by smart meter
installations and the
contribution of E-Co
Products Group and
PowerSmart which
were both acquired on
31 March 2017.
Technology adjusted
EBITDA rose 6.9% to
$64.7 million from
$60.5 million, with
gains from acquisitions
and the smart meter
roll-out diluted by
continued business
development
expenditure associated
with establishing
Australian metering
operations and the
new energy solutions
business, and changes
to how we structured
the services provided
by Vector
Communications to
Vector’s electricity
network.
We have been
targeting Australia
to deliver the next
phase of growth
for the metering
business.
—
—
AUSTRALIAN SMART
METERING BUSINESS
READY FOR
POWER OF CHOICE
REFORMS, AND
WITH DEPLOYMENT
CONTRACTS IN
PLACE WITH FOUR
LEADING RETAILERS.
1. Including 118,961 meters which are managed,
but not owned, by Vector.
2. Excluding Victoria.
Vector://IR 1812
BUSINESS REVIEW
Unregulated Business
Communications
revenue and Regulated
Networks operating
expenditure by
$3.3 million.
Our new energy
solutions business was
strengthened this year
by the acquisition of
E-Co Products Group
and PowerSmart. The
market for large scale
solar and battery
installations is strong
across Australia
and the Pacific.
PowerSmart will deliver
a large commercial
battery system to
Territory Generation in
Alice Springs and will
then shift focus to an
exciting project in Niue,
where it has been
awarded the contract
for another large solar
array and battery
storage system.
PowerSmart is also
contracted to deliver a
number of solar/battery
microgrid solutions
in New Zealand. During
the period, Vector
acquired New Zealand’s
largest solar array, on
the Yealands Winery in
Marlborough, which was
installed by
PowerSmart. The
output of this system
has been sold under
a long-term power
purchase agreement.
PowerSmart is actively
—
HRV SOLAR
LAUNCHES ACROSS
AUCKLAND WITH A
NATIONAL OFFERING
TO FOLLOW.
targeting other such opportunities to deliver
commercial solar to New Zealand businesses.
E-Co Products (trading as HRV) is Vector’s channel
to market for healthy and energy efficient home
solutions. HRV’s core ventilation and water filtration
products have continued to trade well since
acquisition. The heat pump business, which we
believe offers significant opportunity across
New Zealand, has not performed to expectations,
and we ceased offering HRV's retrofit windows
product early in 2018. During the period HRV has
invested significantly in developing a residential
solar offering, which was launched in Auckland at
the beginning of 2018 as HRV Solar, with a
nationwide offering to follow in due course.
Visit www.hrvsolar.co.nz for details.
Vector://IR 1813
BUSINESS REVIEW
Unregulated Business
Revenue for the Gas Trading division increased to
$153.5 million from $150.2 million a year earlier,
with volumes from the Kapuni field up 6.7% to
4.8PJ, natural gas volumes up 3.2% to 9.6PJ,
improved Liquigas revenue and higher Bottle
Swap volumes.
During the period we commissioned the new
9kg LPG bottle-filling and refurbishment plant in
Papakura, the first of its kind in New Zealand. This
plant will strengthen Vector’s LPG business and
help drive efficiencies and enable further growth in
our Bottle Swap operations. Bottle Swap 9kg
volumes were up 10.1% over the period to 351,962
bottles from 319,685 in the first half of the year.
The prior period result included a one-off
insurance settlement of $5.3 million in relation to
damage to the Liquigas facilities at Lyttelton in the
2011 earthquake. Excluding this, adjusted EBITDA
was flat year on year at $18.4 million.
GAS
TRADING
—
NEW ONGAS
BOTTLE SWAP
PLANT IN
PAPAKURA
OPENED BY
WORKPLACE
RELATIONS
AND SAFETY
MINISTER
IAIN LEES-
GALLOWAY.
3.2%
Natural gas
volumes up 3.2%
to 9.6PJ.
Vector://IR 1814
BUSINESS REVIEW
Regulated Business
Revenue for our Regulated Networks business
1
increased 1.4% to $358.9 million from
$353.8 million the year before, largely driven by
higher connections and higher pass-through
transmission costs.
New electricity connections rose 32.9% to 6,090
from 4,583. New gas connections fell 13.2% to
1,656 from 1,907, but remain significantly above
long term average growth rates. Total connections
to the electricity network stood at 559,777 as at
31 December 2017, up 1.2% from 552,948 a year
ago. Total gas connections were 108,270, up 2.2%
from 105,918 a year ago.
Despite the increase in connections, volumes
transported across our electricity network
increased only slightly to 4,352GWh from
4,340GWh a year earlier, with the growth in
connections partially offset by declining electricity
consumption per connection. Auckland gas
distribution network volumes were 7.7 PJ, up 1.3%
from 7.6PJ the previous year, due largely to
connection growth.
Adjusted EBITDA fell 1.5% on the prior year to
$192.7 million from $195.7 million on the back of
higher maintenance costs offset by higher revenue
which was driven by additional connections and
a reduction in internal communications charges.
The increase in maintenance costs ($6.5 million
above the prior period) is driven by an increase
in vegetation maintenance targeting the
worst performing feeders and higher
planned maintenance.
Capital contributions increased by 9.7% to
$33.8 million, from $30.8 million in the prior year
due to continued strong growth in Auckland.
—
CONNECTIONS
CONTINUE TO
RISE ACROSS OUR
BUSINESS.
REGULATED
BUSINESSES
32.9%
New electricity
connections up.
13.2%
New gas connections
down, but remain
significantly above
long term average.
1. Excluding capital contributions.
Vector://IR 1815
BUSINESS REVIEW
People, Safety and Risk
Vector has a necessarily holistic and
comprehensive approach to looking after the
things that matter, be it people, communities,
assets, or the environment.
Our approach to people, safety and risk was
reflected in our 2017 decision with regards to live-
line work, and reflected more recently in our
certification to AS/NZS 4801 and ISO 14001
standard for our Health Safety and Environment
Management System. We are particularly pleased
that the new gas bottling plant commissioned in
Papakura is the first plant in New Zealand to have
an approved Safety Case under the new upper tier
major hazard facilities (UTMHF) regulations.
Our philosophy of ‘safety always’ means our
customers are experiencing more planned outages.
We are working closely with the Commerce
Commission on the issue, as we firmly believe
safety should not be a secondary consideration
to service targets.
The last six months saw a renewed focus on more
comprehensive safety reporting by our field service
providers. As a consequence, we have unfortunately
seen an increase in our Total Recordable Injuries
Frequency Rate (TRIFR) in the first half of the year.
As a result, we do not anticipate meeting our TRIFR
reduction targets for the financial year but we are
satisfied we are continuing to improve safety across
our business and supply-chain.
In a country like New Zealand where the impact of
climate change is already evident from increased
storm activity and increased risk of drought, Vector,
like all businesses, must play a role in transitioning
to a low carbon economy. This, along with
responding to issues of inequality, underpins our
approach to sustainability.
We see sustainability as a key part of the new
energy future that we are pioneering. That’s why
we joined other leading global businesses in
making a clear commitment to the United Nations
Sustainable Development Goals. Our initial focus is
on seven key areas: Good health and well-being;
Affordable and clean energy; Industry, innovation
and infrastructure; Reduced inequalities;
PEOPLE, SAFETY
& RISK
—
VECTOR HAS A
SAFETY ALWAYS
PHILOSOPHY
THAT DRIVES
THE WAY WE
WORK.
Vector://IR 1816
BUSINESS REVIEW
People, Safety and Risk
Sustainable cities and
communities; Climate
action; and Partnership.
As part of our
sustainability leadership
we regularly bring
thought-leaders from
around the world to
New Zealand to share
their insights with the
energy industry and
with other stakeholders.
In 2017 this included
futurist Tony Seba and
scientist Will Steffen,
and this year we intend
to bring Australian
expert Simon Corbell
to New Zealand.
In continuing our work
on better understanding
and reducing our
carbon impact, we are
incorporating newly
acquired businesses
into our carbon
emissions reporting
frameworks, as well
as investing in lower
carbon options for
business, for example
Vector’s corporate fleet
of light pool cars in
Auckland is now 100%
electric or hybrid.
PEOPLE, SAFETY
& RISK
Encouraging and
embracing diversity and
inclusion is important to
Vector. Greater diversity
of thought allows us to
harness a broader and
richer range of ideas,
insights and
perspectives to better
understand and serve
the needs of our
customers and help
design what the new
energy future will be.
It’s why we sought
and received a
reaccreditation of our
Rainbow Tick and it’s
why we launched both
Women in Leadership
and Pacifica
development
programmes.
In November 2017,
Vector became the first
corporate business to
be accredited as a
Living Wage employer.
We support a living
wage because it is the
right thing to do.
Fairness and equity
have been a big part
of our approach to
remuneration for a
number of years, and
we’re pleased to have
this formally recognised
through the Living
Wage accreditation.
We’re now working with
our partners and
suppliers to encourage
support for a living wage
across our supply chain.
In line with this, Vector
—
WORKING WITH
COMMUNITIES TO
CREATE A NEW
ENERGY FUTURE.
has also begun taking
steps to proactively
find and address
pay inequities.
Vector://IR 1817
OPERATING STATISTICS
For the six months ended 31 December
20172016
Electricity
Customers
1,2
559,777552,948
New connections6,0904,583
Net movement in customers
3
4,6772,890
Volume distributed (GWh)4,3524,340
Network length (km)
1
18,60718,377
SAIDI (minutes)
4
Normal operations168.0121.0
Extreme events0.02.4
Total168.0123.4
Gas Distribution
Customers
1,2
108,270105,918
New connections1,6561,907
Net movement in customers
3
1,6001,596
Volume distributed (PJ)7.77.6
Gas Trading
Natural gas sales (PJ)
5
9.69.3
Gas liquids sales (tonnes)
6
40,75238,557
9kg LPG bottles swapped
7
351,962319,685
Liquigas LPG tolling (tonnes)
8
89,14777,688
Technology
Electricity: smart meters
1,9
1,333,2081,203,482
Electricity: legacy meters
1
91,848107,467
Electricity: prepay meters
1
3664,596
Electricity: time-of-use meters
1
12,25911,985
Gas meters
1
223,368219,718
Data Management and services connections
1
8,8118,760
1. As at period end.
2. Billable ICP’s.
3. The net number of
customers added during
the period.
4. Regulatory year – 9 months
to 31 December.
5. Excludes gas sold as gas
liquids as these sales are
included within the gas
liquids sales tonnages.
6. Total of retail and wholesale
LPG production and natural
gasoline.
7. Number of 9kg LPG bottles
swapped and sold during
the year.
8. Includes product tolled in
Taranaki and further tolled
in the South Island.
9. The number of smart
meters deployed at
31 December 2017 includes
118,961 meters managed
but not owned by Vector
(31 December 2016: 78,037).
Vector://IR 1818
FINANCIAL OVERVIEW
FINANCIAL PERFORMANCE
1
$ MILLION
31 DEC 2017
6 MONTHS
31 DEC 2016
6 MONTHSCHANGE
30 JUN 2017
12 MONTHS
Revenue676.2625.68.1%1,226.7
Adjusted EBITDA250.0257.0(2.7%)474.4
Adjusted EBIT140.4159.8(12.1%)274.8
Net profit79.0107.1(26.2%)168.9
Operating cash flow236.0226.34.3%335.7
FINANCIAL POSITION
$ MILLION31 DEC 201731 DEC 2016CHANGE30 JUN 2017
Total equity2,468.12,467.00.0%2,448.3
Total assets5,668.35,511.32.8%5,574.6
Economic net debt (borrowings net of
cash and short-term deposits)
2,252.91,968.214.5%2,220.1
KEY FINANCIAL MEASURES
31 DEC 2017
6 MONTHS
31 DEC 2016
6 MONTHSCHANGE
30 JUN 2017
12 MONTHS
Adjusted EBITDA/revenue37.0%41.1%(10.0%)38.7%
Adjusted EBIT/revenue20.8%25.5%(18.4%)22.4%
Equity/total assets43.5%44.8%(2.9%)43.9%
Gearing
1
47.3%43.9%7.7%47.1%
Net interest cover – (adjusted EBIT/net
interest costs) (times)
2.12.3(8.7%)2.0
Earnings (NPAT) per share (cents)7.910.5(24.8%)16.7
Dividend declared, cents per share (fully
imputed)
8.258.003.1%16.00
REVENUE
Rises 8.1% on the
previous corresponding
period
676. 2
MILLION
$
OPERATING CASH
FLOW
Rises 4.3% on the
previous corresponding
period
236.0
MILLION
$
1. Gearing is defined as economic net debt to economic net debt plus adjusted equity. Adjusted equity means total equity adjusted for
hedge reserves.
Vector://IR 1819
FINANCIAL PERFORMANCE TRENDS
REGULATED NETWORKS
GAS TRADING
TECHNOLOGY
CORPORATE
INTER-SEGMENT
CONTINUED OPERATIONS
DISCONTINUED OPERATIONS
-100
100
0
200
300
400
600
500
800
700
20132014201520162017
581.4
618.9
590.6
625.6
676.2
REVENUE (CONTINUING OPERATIONS)
FOR THE SIX MONTHS ENDED 31 DECEMBER
$ MILLION
243.0
244.8
257.0
250.0
20132014201520162017
0
-50
50
100
150
200
250
300
253.5
ADJUSTED EBITDA (CONTINUING OPERATIONS)
FOR THE SIX MONTHS ENDED 31 DECEMBER
$ MILLION
REGULATED NETWORKS
GAS TRADING
TECHNOLOGY
CORPORATE
TOTAL GROUP
20132014201520162017
104.6
87.3
100.1
107.1
79.0
0
20
40
60
80
100
120
NET PROFIT (INCLUDING DISCONTINUED OPERATIONS)
FOR THE SIX MONTHS ENDED 31 DECEMBER
$ MILLION
Vector://IR 1820
12.3
119.6
10.6
40.2
2
0
1
7
2
0
1
6
8.9
49.8
12.0
102.2
CAPITAL EXPENDITURE
FOR THE SIX MONTHS ENDED 31 DECEMBER
$ MILLION
REGULATED NETWORKS
GAS TRADING
TECHNOLOGY
CORPORATE
2
0
1
7
2
0
1
6
2,252.9
1,968.2
2,512.9
2,515.3
SOURCE OF FUNDING – GEARING
AS AT 31 DECEMBER
$ MILLION
ECONOMIC NET DEBT
ADJUSTED EQUITY
20132014201520162017
225.9
203.3
248.8
226.3
236.0
0
50
100
150
200
250
300
OPERATING CASH FLOWS (INCLUDING DISCONTINUED
OPERATIONS) FOR THE SIX MONTHS ENDED 31 DECEMBER
$ MILLION
Vector://IR 1821
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
31 DEC 2017
6 MONTHS
$M
31 DEC 2016
6 MONTHS
$M
Reported net profit for the period (GAAP)
1
79.0107.1
Add back: net interest costs
1
66.4 68.6
Add back: tax (benefit)/expense
1
31.916.5
Add back: depreciation and amortisation
1
109.6 97.2
EBITDA286.9289.4
Adjusted for:
Associates (share of net (profit)/loss)
1
0.1 (1.1)
Fair value change on financial instruments
1
(2.8) -
Capital contributions(34.2)(31.3)
Adjusted EBITDA250.0257.0
1. Extracted from reviewed financial statements.
SEGMENT ADJUSTED EBITDA
20172016
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
65.1(0.4)64.761.0 (0.5)60.5
Gas Trading
18.4 18.4 23.7 –23.7
Unregulated segments83.5(0.4)83.184.7 (0.5)84.2
Regulated segment226.5(33.8)192.7226.5 (30.8)195.7
Corporate(25.8)–(25.8)(22.9)–(22.9)
TOTAL284.2(34.2)250.0288.3 (31.3)257.0
Vector://IR 1822
GROUP CONDENSED INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2017 (unaudited)
CONTENTS
2 4 ——— Independent Review Report
2 6 ——— Group Condensed Interim Financial Statements
27 ——— Profit or Loss
2 8 ——— Other Comprehensive Income
2 9 ——— Balance Sheet
29 ——— Cash Flows
3 0 ——— Changes in Equity
3 1 ——— Notes to the Group Condensed Interim Financial Statements
GROUP CONDENSED INTERIM FINANCIAL STATEMENTS
These group condensed interim financial statements for the six months
ended 31 December 2017 are dated 27 February 2018, and signed for
and on behalf of Vector Limited by:
Director 27 February 2018
Director 27 February 2018
And management of Vector Limited by:
Group Chief Executive 27 February 2018
Chief Financial Officer 27 February 2018
Vector://IR 1823
INDEPENDENT REVIEW REPORT
for the six months ended 31 December 2017
© 2018 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Independent Review Report
To the shareholders of Vector Limited
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 26 to 39
do not:
i. present fairly in all material respects the
Group’s financial position as at 31
December 2017 and its financial
performance and cash flows for the period
ended on that date; and
ii. comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
— the consolidated balance sheet as at 31
December 2017;
— the consolidated profit or loss, statements of
other comprehensive income, changes in
equity and cash flows for the period then
ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of interim consolidated financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of Vector Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to
the audit of the annual financial statements.
Our firm has also provided other services to the group in relation to regulatory and other assurance. 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 reviewer of the group. The firm has no other relationship with, or interest in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we
might state to the 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 shareholders as a body for our review work, this report, or any of the
opinions we have formed.
Vector://IR 1824
Responsibilities of the Directors for the interim consolidated financial
statements
The Directors, on behalf of the group, are responsible for:
— the preparation and fair presentation of the interim consolidated financial statements in accordance with NZ
IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of interim consolidated financial
statements that are fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim consolidated
financial statements
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. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
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 these interim consolidated financial statements.
This description forms part of our Independent Review Report.
KPMG
Auckland
27 February 2018
Vector://IR 1825
GROUP INTERIM PROFIT OR LOSS
(unaudited)
NOTE
31 DEC 2017
6 MONTHS
$M
31 DEC 2016
6 MONTHS
$M
30 JUN 2017
12 MONTHS
$M
Revenue4676.2625.61,226.7
Operating expenses4(392.0)(337.3)(690.0)
Depreciation and amortisation(109.6)(97.2)(199.6)
Interest costs (net)(66.4)(68.6)(137.3)
Fair value change on financial instruments2.8–1.6
Associates (share of net profit/(loss)) (0.1)1.11.6
Profit/(loss) before income tax110.9123.6203.0
Tax benefit/(expense)(31.9)(16.5)(34.1)
Net profit/(loss) for the period79.0107.1168.9
Net profit/(loss) for the period attributable to
Non-controlling interests
0.72.73.1
Owners of the parent 78.3104.4165.8
Basic and diluted earnings per share (cents)77.910.516.7
Vector://IR 1826
GROUP INTERIM OTHER COMPREHENSIVE INCOME
(unaudited)
31 DEC 2017
6 MONTHS
$M
31 DEC 2016
6 MONTHS
$M
30 JUN 2017
12 MONTHS
$M
Net profit/(loss) for the period79.0107.1168.9
Other comprehensive income net of tax
Items that may be re-classified subsequently to profit or loss:
Net change in fair value of hedge reserves4.241.040.3
Fair value change on financial asset3.10.91.8
Translation of foreign operations(0.3)–0.1
Other comprehensive income for the period net of tax7.041.942.2
Total comprehensive income for the period net of tax86.0149.0211.1
Total comprehensive income for the period attributable to
Non-controlling interests
0.72.73.1
Owners of the parent 85.3146.3208.0
Vector://IR 1827
GROUP INTERIM BALANCE SHEET
(unaudited)
NOTE
31 DEC 2017
$M
31 DEC 2016
$M
30 JUN 2017
$M
CURRENT ASSETS
Cash and cash equivalents17.9187.214.9
Trade and other receivables 213.3189.7206.3
Derivatives60.1––
Inventories12.95.311.3
Intangible assets6.04.82.4
Income tax32.77.451.1
Total current assets282.9394.4286.0
NON-CURRENT ASSETS
Derivatives6
45.276.838.0
Investment in associate9.59.69.6
Other investments 23.35.46.2
Intangible assets1,393.81,284.11,397.2
Property, plant and equipment (PPE)3,913.53,740.43,837.5
Deferred tax0.10.60.1
Total non-current assets5,385.45,116.95,288.6
Total assets5,668.35,511.35,574.6
CURRENT LIABILITIES
Trade and other payables
271.9216.3250.0
Provisions4.86.54.8
Borrowings6–559.6399.7
Derivatives6–17.66.6
Income tax0.40.30.5
Total current liabilities277.1800.3661.6
NON-CURRENT LIABILITIES
Payables
45.047.941.5
Provisions21.417.820.4
Borrowings62,232.01,579.51,770.7
Derivatives6135.7138.3156.5
Deferred tax 489.0460.5475.6
Total non-current liabilities 2,923.12,244.02,464.7
Total liabilities 3,200.23,044.33,126.3
EQUITY
Equity attributable to owners of the parent
2,450.32,448.62,430.6
Non-controlling interests in subsidiaries17.818.417.7
Total equity 2,468.12,467.02,448.3
Total equity and liabilities 5,668.35,511.35,574.6
Net tangible assets per share (cents)7105.1116.5103.5
Gearing ratio (%)747.343.947.1
Vector://IR 1828
GROUP INTERIM CASH FLOWS
(unaudited)
NOTE
31 DEC 2017
6 MONTHS
$M
31 DEC 2016
6 MONTHS
$M
30 JUN 2017
12 MONTHS
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers693.1638.31,224.2
Interest received 0.45.49.0
Dividends received90.51.52.0
Payments to suppliers and employees(389.0)(343.7)(686.6)
Interest paid(67.4)(73.5)(151.7)
Income tax refunded––0.9
Income tax paid(1.6)(1.8)(62.1)
Net cash flows from/(used in) operating activities 8236.0226.2335.7
CASH FLOWS FROM INVESTING ACTIVITIES
Proceed from sale of PPE and software intangibles
0.10.10.4
Purchase and construction of PPE and software intangibles(184.9)(180.3)(354.4)
Acquisition of businesses3(1.7)–(90.9)
Other investments3(14.0)––
Net cash flows from/(used in) investing activities (200.5)(180.2)(444.9)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings6
435.8–284.6
Repayment of borrowings6(400.0)(98.9)(318.2)
Dividends paid (80.2)(80.2)(161.0)
Sale of treasury shares14.0––
Other financing cash flows(2.1)(1.1)(2.7)
Net cash flows from/(used in) financing activities (32.5)(180.2)(197.3)
Net increase/(decrease) in cash and cash equivalents 3.0(134.2)(306.5)
Cash and cash equivalents at beginning of the period14.9321.4321.4
Cash and cash equivalents at end of the period 17.9187.214.9
Cash and cash equivalents comprise:
Bank balances and on-call deposits
9.59.07.0
Short term deposits 8.4178.27.9
17.9187.214.9
Vector://IR 1829
GROUP INTERIM CHANGES IN EQUITY
(unaudited)
ISSUED
SHARE
CAPITAL
$M
TREASURY
SHARES
$M
HEDGE
RESERVES
$M
OTHER
RESERVES
$M
RETAINED
EARNINGS
$M
NON-
CONTROLLING
INTERESTS
$M
TOTAL
EQUITY
$M
Balance at 1 July 2016875.0(9.2)(89.3)(1.1)1,606.516.32,398.2
Net profit/(loss) for the period –– – – 104.42.7107.1
Other comprehensive income –– 41.00.9– – 41.9
Total comprehensive income––41.00.9104.42.7149.0
Dividends– –– – (79.6)(0.6)(80.2)
Total transactions with owners––––(79.6)(0.6)(80.2)
Balance at 31 December 2016875.0(9.2)(48.3)(0.2)1,631.318.42,467.0
Net profit/(loss) for the period– – – – 61.40.461.8
Other comprehensive income– – (0.7)1.0– – 0.3
Total comprehensive income––(0.7)1.061.40.462.1
Dividends– – – – (79.7)(1.1)(80.8)
Total transactions with owners ––––(79.7)(1.1)(80.8)
Balance at 30 June 2017875.0(9.2)(49.0)0.81,613.017.72,448.3
Net profit/(loss) for the period––––78.30.779.0
Other comprehensive income––4.22.8––7.0
Total comprehensive income––4.22.878.30.786.0
Dividends––––(79.6)(0.6)(80.2)
Sale of treasury shares5.09.0––––14.0
Total transactions with owners5.09.0––(79.6)(0.6)(66.2)
Balance at 31 December 2017880.0(0.2)(44.8)3.61,611.717.82,468.1
Vector://IR 1830
NOTES TO THE INTERIM FINANCIAL STATEMENTS 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
2017. 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 2017 Annual
Report. The interim financial statements for the six months ended 31 December
2017 and 31 December 2016 are unaudited.
All financial information has been presented in New Zealand dollars ($) and
rounded to the nearest 100,000, 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 2017 Annual Report have been
applied consistently to all periods presented in these interim financial
statements.
Vector://IR 1831
NOTES TO THE INTERIM FINANCIAL STATEMENTS
3. SIGNIFICANT TRANSACTIONS AND EVENTS
Significant transactions and events that have occurred during the six months to 31 December 2017:
Commerce Commission
settlement
On 7 July 2017, Vector and the Commerce Commission agreed the settlement
of an over-recovery of electricity revenue by Vector during the regulatory years
ended 31 March 2014 and 31 March 2015.
The settlement will be effected through a price adjustment for the regulatory
year ending 31 March 2019 and 31 March 2020. The total amount of the
adjustment is approximately $13.9 million which will impact revenues reported
for the financial years ending 30 June 2018 (3 months), 30 June 2019
(12 months), and 30 June 2020 (9 months).
As the settlement will be enacted through future pricing, no amount is recorded
in the period ended 31 December 2017.
InvestmentsmPrest Systems (2003) Limited
On 4 October 2017, Vector invested $14.0 million (US $10.0 million) into
mPrest Systems (2003) Limited for 7.8% of the company’s total issued capital
(7.1% diluted share capital). The investment is accounted for as a financial asset
on the Balance Sheet. The mPrest technology allows companies to better
monitor, analyse, and control energy networks and connect traditional
infrastructure like electricity lines and substations with new technology like solar
and battery energy solutions. Vector is in the process of rolling out the mPrest
technology across its Auckland network.
SolPho Limited
Vector Energy Solutions Limited acquired 100% of the shares in SolPho Limited
for cash consideration of $0.7 million on 1 November 2017. SolPho Limited
owns one of the largest photovoltaic arrays in New Zealand, and the power is
sold via a long-term offtake agreement. SolPho Limited owns one of the largest
photovoltaic arrays in New Zealand, and the power is sold via a long-term
offtake agreement.
Aircon Direct Limited
E-Co Products Group and its associated subsidiary acquired the business
of Aircon Direct Limited for cash consideration of $1.0 million on 22 September
2017. Aircon Direct Limited is a provider of air conditioning and ventilation
system services and represents a geographical expansion to E-Co Products
Group’s business.
Debt programmeOn 25 October 2017, Vector issued a total of $415.8 million (US $300.0 million)
of USD senior notes maturing on 25 October 2027 and 25 October 2029
respectively.
On 26 October 2017, the group repaid $400.0 million of Floating Rate Notes.
Vector://IR 1832
NOTES TO THE INTERIM FINANCIAL STATEMENTS
DividendsVector Limited’s final dividend for the year ended 30 June 2017 of 8.00 cents
per share was paid on 15 September 2017, with a supplementary dividend of
1.41 cents per non-resident share. The total dividend paid was $79.6 million.
Liquigas Limited, an associated company of the group, paid an interim dividend
for the six months ended 31 December 2017 of $0.6 million to the company’s
non-controlling interests.
Sale of treasury sharesOn 9 November 2017, the group sold 4,244,923 treasury shares to various
investors for a total of $14.0 million, at $3.30 per share (a 2.9% discount to the
closing price on 8 November 2017). This resulted in a gain of $5.0 million
which has been recorded within issued share capital in equity.
4. 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 2017 Annual Report.
The reported segments are:
Regulated NetworksAuckland electricity and gas distribution services.
Gas Trading Natural gas and LPG sales, storage and processing,
and cogeneration.
TechnologyMetering services, telecommunications and new energy
solutions.
On 31 March 2017, the group acquired 100% of the voting shares in E-Co
Products Group Limited and the business and net assets of PowerSmart NZ
Limited. The financial results of both these entities is included within the
Technology segment.
3. SIGNIFICANT TRANSACTIONS AND EVENTS (continued)
Vector://IR 1833
NOTES TO THE INTERIM FINANCIAL STATEMENTS
4. SEGMENT INFORMATION (continued)
31 DEC 2017
6 MONTHS
REGULATED
NETWORKS
$M
GAS TRADING
$M
TECHNOLOGY
$M
INTER-
SEGMENT
$M
TOTAL
$M
External revenue:
Sales
356.6153.5131.1–641.2
Third party contributions33.8–0.4–34.2
Intersegment revenue2.3–2.4(4.7)–
Segment revenue392.7153.5133.9(4.7)675.4
External expenses:
Electricity transmission expenses
(111.9)–––(111.9)
Gas purchases and production expenses–(98.0)––(98.0)
Technology cost of sales––(35.6)–(35.6)
Asset maintenance expenses(28.8)(9.0)(6.9)–(44.7)
Employee benefit expenses(8.4)(7.4)(17.4)–(33.2)
Other expenses(15.5)(17.9)(8.6)–(42.0)
Intersegment expenses(1.6)(2.8)(0.3)4.7–
Segment operating expenses(166.2)(135.1)(68.8)4.7(365.4)
Segment EBITDA226.518.465.1–310.0
Depreciation and amortisation(56.9)(9.9)(35.9)–(102.7)
Segment profit/(loss)169.68.529.2–207.3
Segment capital expenditure119.610.640.2– 170.4
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
31 DEC 2017
6 MONTHS
REVENUE
$M
PROFIT/
(LOSS) BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information675.4207.3170.4
Amounts not allocated to segments (corporate activities):
Revenue
0.80.8–
Employee benefit expenses–(14.7)–
Other operating expenses–(11.9)–
Depreciation and amortisation –(6.9)–
Interest costs (net)–(66.4)–
Fair value change on financial instruments–2.8–
Associates (share of net profit/(loss))–(0.1)–
Capital expenditure––12.3
Reported in the financial statements676.2110.9182.7
Vector://IR 1834
NOTES TO THE INTERIM FINANCIAL STATEMENTS
4. SEGMENT INFORMATION (continued)
31 DEC 2016
6 MONTHS
REGULATED
NETWORKS
$M
GAS TRADING
$M
TECHNOLOGY
$M
INTER-
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 350.4150.291.5–592.1
Third party contributions30.8–0.5–31.3
Intersegment revenue3.4–6.4(9.8)–
Segment revenue384.6150.298.4(9.8)623.4
External expenses:
Electricity transmission expenses
(106.8)–––(106.8)
Gas purchases and production expenses–(94.5)––(94.5)
Technology cost of sales––(12.7)–(12.7)
Asset maintenance expenses(22.2)(10.0)(7.5)–(39.7)
Employee benefit expenses(7.7)(7.4)(11.3)–(26.4)
Other expenses(15.9)(11.1)(5.1)–(32.1)
Intersegment expenses(5.5)(3.5)(0.8)9.8–
Segment operating expenses(158.1)(126.5)(37.4)9.8(312.2)
Segment EBITDA226.523.761.0–311.2
Depreciation and amortisation(50.3)(8.1)(32.9)–(91.3)
Segment profit/(loss)176.215.628.1–219.9
Segment capital expenditure102.212.049.8–164.0
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
$M
PROFIT/
(LOSS) BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information623.4219.9164.0
Amounts not allocated to segments (corporate activities):
Revenue
2.22.2–
Employee benefit expenses–(13.2)–
Other operating expenses–(11.9)–
Depreciation and amortisation –(5.9)–
Interest costs (net)–(68.6)–
Associates (share of net profit/(loss))–1.1–
Capital expenditure––8.9
Reported in the financial statements625.6123.6172.9
Vector://IR 1835
NOTES TO THE INTERIM FINANCIAL STATEMENTS
4. SEGMENT INFORMATION (continued)
30 JUN 2017
12 MONTHS
REGULATED
NETWORKS
$M
GAS TRADING
$M
TECHNOLOGY
$M
INTER-
SEGMENT
$M
TOTAL
$M
External revenue:
Sales
674.8281.8202.9–1,159.5
Third party contributions61.2–1.1–62.3
Intersegment revenue5.9–10.0(15.9)–
Segment revenue741.9281.8214.0(15.9)1,221.8
External expenses:
Electricity transmission expenses
(212.6)–––(212.6)
Gas purchases and production expenses–(181.7)––(181.7)
Technology cost of sales––(35.7)–(35.7)
Asset maintenance expenses(50.9)(20.0)(14.4)–(85.3)
Employee benefit expenses(16.0)(15.0)(26.0)–(57.0)
Other expenses(31.7)(21.9)(13.0)–(66.6)
Intersegment expenses(8.3)(6.3)(1.3)15.9–
Segment operating expenses(319.5)(244.9)(90.4)15.9(638.9)
Segment EBITDA422.436.9123.6–582.9
Depreciation and amortisation(103.5)(15.1)(68.9)–(187.5)
Segment profit/(loss)318.921.854.7–395.4
Segment capital expenditure210.632.7104.3–347.6
In March 2017, the Technology segment granted an indefeasible right of use (“IRU”) to the Regulated
Networks segment for the exclusive use of a network of fibre and fibre-associated telecommunications
assets. The agreement is recognised as a finance lease and replaces the previous telecommunications
services agreement between the two segments. The impact is a reduction in intersegment sales for
the Technology segment and an equivalent reduction in intersegment expenses for the Regulated
Networks segment.
During the year, the Technology segment procured and sold $1.4 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 2017
REVENUE
$M
PROFIT/
(LOSS) BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information1,221.8395.4347.6
Amounts not allocated to segments (corporate activities):
Revenue
4.94.9–
Employee benefit expenses–(25.8)–
Other operating expenses–(25.3)–
Depreciation and amortisation –(12.1)–
Interest costs (net)–(137.3)–
Fair value change on financial instruments–1.6–
Associates (share of net profit/(loss))–1.6–
Capital expenditure––19.8
Reported in the financial statements1,226.7203.0367.4
Vector://IR 1836
NOTES TO THE INTERIM FINANCIAL STATEMENTS
5. CAPITAL COMMITMENTS
31 DEC 2017
6 MONTHS
$M
31 DEC 2016
6 MONTHS
$M
30 JUN 2017
12 MONTHS
$M
Capital expenditure committed to but not provided for at
balance date
75.177.852.6
6. BORROWINGS AND DERIVATIVES
NET
DERIVATIVES
$M
BORROWINGS
$M
Balance at 30 June 2017(125.1)(2,170.4)
Fair value movements:
Foreign exchange rates
53.3(53.3)
Interest rates and other fair value changes(18.6)27.0
Repayment –400.0
Drawdown–(435.8)
Amortised costs –0.5
Balance at 31 December 2017(90.4)(2,232.0)
Fair value at 31 December 2017(90.4)(2,251.7)
7. FINANCIAL RATIOS
31 DEC 2017
6 MONTHS
$M
31 DEC 2016
6 MONTHS
$M
30 JUN 2017
12 MONTHS
$M
Earnings per share
Net profit attributable to owners of the parent
78.3 104.4165.8
Net profit attributable to owners of the parent 78.3104.4165.8
Weighted average ordinary shares outstanding
during the period (number of shares)
996,852,041 995,656,441 995,651,036
7.9 cents10.5 cents16.7 cents
Net tangible assets per share
Net assets attributable to owners of the parent
2,450.32,448.62,430.6
Less total intangible assets (1,399.8)(1,288.9)(1,399.6)
Total net tangible assets1,050.51,159.71,031.0
Ordinary shares outstanding (number of shares)999,913,110 995,645,137 995,645,987
105.1 cents116.5 cents103.5 cents
Vector://IR 1837
NOTES TO THE INTERIM FINANCIAL STATEMENTS
7. FINANCIAL RATIOS (continued)
31 DEC 2017
$M
31 DEC 2016
$M
30 JUN 2017
$M
Economic net debt to economic net debt plus adjusted
equity ratio (“gearing ratio”)
Face value of borrowings
2,270.82,155.42,235.0
Less cash and cash equivalents(17.9)(187.2)(14.9)
Economic net debt2,252.91,968.22,220.1
Total equity2,468.12,467.02,448.3
Adjusted for hedge reserves44.848.349.0
Adjusted equity2,512.92,515.32,497.3
Economic net debt plus adjusted equity4,765.84,483.54,717.4
47.3%43.9%47.1%
8. CASH FLOWS
31 DEC 2017
6 MONTHS
$M
31 DEC 2016
6 MONTHS
$M
30 JUN 2017
12 MONTHS
$M
Reconciliation of net profit/(loss) to net cash flows
from/(used in) operating activities
Net profit/(loss) for the period
79.0107.1168.9
Items classified as investing activities
Net loss/(gain) on disposal of PPE and software intangibles
1.31.84.3
Net loss/(gain) on sale of investments(1.1)––
0.21.84.3
Non-cash items
Depreciation and amortisation
109.697.2199.6
Non-cash portion of interest costs (net)(1.5)(1.5)(3.8)
Fair value change on financial instruments(2.8)–(1.6)
Associates (share of net (profit)/loss)0.1(1.1)(1.6)
Increase/(decrease) in deferred tax 11.8(12.6)(9.1)
Increase/(decrease) in provisions1.01.0(1.3)
118.2 83.0182.2
Cash items not impacting net profit/(loss)
Dividend received from associate
–1.52.0
Changes in assets and liabilities
Trade and other payables
30.48.58.2
Inventories(1.6)(1.0)(2.0)
Trade and other receivables (8.5)(2.0)(11.2)
Income tax 18.327.3(16.7)
38.632.8(21.7)
Net cash flows from/(used in) operating activities236.0226.2335.7
Vector://IR 1838
NOTES TO THE INTERIM FINANCIAL STATEMENTS
9. 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 December 2016:
$60.1 million, 12 months ended 30 June 2017: $120.2 million).
Associate dividendDuring the period, no dividends were received from Tree Scape Limited which
is an associate of the group (six months ended 31 December 2016: $1.5 million,
12 months ended 30 June 2017: $2.0 million).
Outstanding balancesAt 31 December 2017, the group has no material outstanding balances due to
or from related parties of the group (31 December 2016: nil, 30 June 2017:
$0.2 million).
10. 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.
11. EVENTS AFTER THE END OF THE PERIOD
Sale of financial assetOn 23 February 2018, the group executed the unconditional sale of its
22.11% shareholding in NZ Windfarms Limited, an NZX listed entity. The sale
transaction settled on 27 February 2018 for total consideration of $6.4 million.
No adjustment is required to these interim financial statements in respect of
this event.
Financial statements
approval
The interim financial statements were approved by the board of directors on
27 February 2018.
Interim dividendOn 27 February 2018, the board declared an interim dividend for the year
ended 30 June 2018 of 8.25 cents per share.
No adjustment is required to these interim financial statements in respect of
this event.
Vector://IR 1839
BOARD OF DIRECTORS AND MANAGEMENT TEAM
BOARD OF DIRECTORS
Michael Stiassny
// Chairman
James Carmichael
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
Emerging Technologies
Dan Molloy
// Chief Financial Officer
Nikhil Ravishankar
// Chief Digital Officer
Rod Snodgrass
// Chief Customer Officer
ASSOCIATES AND JOINT VENTURES
PRINCIPAL ACTIVITYPROPORTION HELD
31 DEC 201731 DEC 201630 JUN 2017
Associates
Tree Scape Limited Vegetation management
50%50%50%
Joint Venture
Kapuni Energy Joint VentureCogeneration
50%50%50%
FINANCIAL CALENDAR 2018
Record date for the interim dividend28 March
Interim dividend paid 11 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
2018
//
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
Vector://IR 1840
DIRECTORY
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
INFORMATION ABOUT WHAT CAUSES OUTAGES,
HOW TO BE PREPARED FOR AN OUTAGE. YOU
CAN ALSO OBTAIN OUTAGE INFORMATION ON
THE GO WITH OUR OUTAGE APP.
This document is printed on an environmentally responsible paper, produced
using an Elemental Chlorine Free (ECF), Third Party certified pulp from
Responsible Sources, and manufactured under the strict ISO14001
Environmental Management System. The ink used is 100% vegetable based,
mineral oil free and manufactured from 100% renewable resources.
insight
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VEC184
Vector://IR 1841
VECTOR.CO.NZ
---
FINANCIAL &
OPERATIONAL
RESULTS
28 February 2018
HALF YEAR ENDED 31 DECEMBER 2017
Insert new artwork
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
•FY2018 H1 Operational Highlights
•Financial Performance
•Segment Performance
•Outlook
•Q & A
•Appendices
AGENDA
5
INTERIM DIVIDEND INCREASES TO 8.25 CPS
6.00
6.506.506.506.50
6.75
7.00
7.25
7.507.50
7.75
8.00
8.25
6.00
6.50
6.75
7.25
7.50
7.50
7.50
7.75
7.75
8.00
8.00
8.00
FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
Dividend growth (cents per share)
InterimFinal
•Half year dividend 8.25 cents
−Up 0.25 cps on prior year
−Fully imputed
•Board has approved a progressive
dividend policy of at least 0.25 cps
increase each year, contingent on:
•Maintaining a BBB credit rating
•Complying with funding covenants
•Ensuring we have the financial capacity to meet
medium term investment and operating
requirements
•Dividend policy will be reviewed once
parameters for 2020 electricity reset are
confirmed
6
SIMON MACKENZIE
GROUP CHIEF EXECUTIVE
7
FY2018 H1 OPERATIONAL HIGHLIGHTS
•Regulated Networks and Gas Trading
performing as expected. Technology
result below expectations
•Australian Metering business successfully
mobilised for Power of Choice launch
–Deployment contracts with four leading
retailers
•New gas bottling plant commissioned
–1
st
safety case to be approved for a new
major hazard facility
•Launched HRV solar in Auckland, rest of
NZ to follow (www.hrvsolar.co.nz)
•PowerSmartprojects in Alice Springs and
South Pacific
•Lighting of Auckland Harbour Bridge
•mPrest internet of energy solution being
implemented on Vector’s network
‹#›
DAN MOLLOY
CHIEF FINANCIAL OFFICER
9
625.6
257.0
172.9
107.1
226.2
79.7
676.2
250.0
182.7
79.0
236.0
82.5
RevenueAdjusted EBITDACapital ExpenditureNet ProfitOperating Cash FlowHalf Year Dividend
H1 2018 FINANCIAL PERFORMANCE ($M)
H1 2017
H1 2018
3, 4
OVERVIEW OF FINANCIAL PERFORMANCE
Adjusted EBITDA is not a GAAP measure of profit. For a reconciliation of adjusted EBITDA to EBITDA and net profit refer to page25 of this presentation.
+8.1%
-2.7%
-26.2%
4.3%
+5.7%
+3.5%
10
EARNINGS GROWTH IN TECHNOLOGY OFFSET BY
OTHER SEGMENTS
257.0
250.0
-3.0
-5.3
+4.2
-2.9
H1 2017Regulated NetworksGas TradingTechnologyCorporateH1 2018
H1 2018 ADJUSTED EBITDA MOVEMENT ($M)
11
NET PROFIT IMPACTED BY HIGHER DEPRECIATION & UNUSUAL
ITEMS IN PRIOR PERIOD
107.1
79.0
-3.8
-15.0
-8.9
-1.2
+1.6
+2.1
-2.9
H1 2017Liquigas
insurance
proceeds
Tunnel tax gainDepreciation &
Amortisation
EarningsInterestCapital
Contributions
OtherH1 2018
MOVEMENT IN NET PROFIT AFTER TAX ($M)
Unusual items
in prior period
All items above are net or tax.
“Other” includes prior period tax washup, associates and fair value change on financial instruments
12
NETWORK CAPEX UP 17% DRIVEN BY CONNECTION GROWTH
59%
7%
29%
5%
65%
6%
22%
7%
GROSS CAPEX BY SEGMENT
Regulated Networks
Gas Trading
Technology
Corporate
H1 2017
H1 2018
141.6
148.5
31.3
34.2
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
H1 2017H1 2018
GROSS CAPITAL EXPENDITURE ($m)
Net capexCapital contributions
•Gross capex up 5.7% to $182.7m. Net capex (after contributions) up 4.9% to $148.5m
•Growth capex down 3.1% to $108.1m. Replacement capex up 21.7% to $74.6m
13
$1.5B OF REFINANCING COMPLETED IN LAST 12 MONTHS
2,6252,6822,7452,7411,9331,9682,2202,253
52.5%
52.9%
53.6%
53.4%
43.7%
43.9%
47.1%
47.3%
Jun 14Dec 14Jun 15Dec 15Jun 16Dec 16Jun 17Dec 17
NET ECONOMIC DEBT ($M) & GEARING (%)
Net economic debt ($m)Gearing
•Gearing now 47.3%
•$715m refinancing for the half year -$415m USPP & $300m bank facilities
•Strong demand for Vector credit -USPP 3x oversubscribed
350
297
251
150
286
355
300
100
307
277
138
FY18FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30
GROUP DEBT MATURITY ($M)
Credit Wrapped Floating Rate NotesUSPP (2004)
USPP (2010)USPP (2014)
Sterling 7.625% Bonds (2008)Credit Facilities
Wholesale Bond5.7% Hybrid Capital Bonds
USPP (2017)
14
SIMON MACKENZIE
GROUP CHIEF EXECUTIVE
15
TECHNOLOGY RESULT DRIVEN BY SMART METER ROLLOUT
60.5
64.7
5.0
-2.0
-3.3
4.5
H1 2017Additional Smart
Meters in NZ
Business
Development
Initiatives
Restructure of
internal comms
charges *
OtherH1 2018
ADJUSTED EBITDA MOVEMENT ($M)
Technology
Segment
•Gains from smart meter rollout & acquisitions
diluted by business development costs for new
energy technologies & Australian metering
•Deployed 44,804 smart meters in NZ & 7,515 in
Australia. Smart meter fleet now at 1.33 million
(owned & managed)
•On track to install 80,000 –100,000 meters in
NZ in FY18, at which point Vector’s NZ smart
meter rollout will be largely complete
•Deployment contracts with four leading retailers
in Australia. Currently deploying more than
1,000 meters per week
•Performance from E-Co & PowerSmart
impacted by integration costs, timing of new
contracts and gearing up for HRV Solar
H1 2012H1 2013H1 2014H1 2015H1 2016H1 2017H1 2018
METER FLEET (millions)
Smart Meters (NZ)Smart Meters (AU)Legacy Meters
Gas MetersOther (C&I and Prepay)
0.9
1.7
1.5
1.4
1.3
1.1
0.8
* There is a corresponding offset included in Regulated Networks segment
16
ABSENT LAST YEAR’S INSURANCE SETTLEMENT,
GAS TRADING EARNINGS ARE FLAT
23.7
18.4
-5.3
0.9
0.9
-1.8
H1 2017Liquigas
earthquake
proceeds
(prior yr)
Higher Liquigas
throughput
Higher Kapuni
field production
OtherH1 2018
ADJUSTED EBITDA MOVEMENT ($M)
Gas Trading
Segment
352
320
302
266
229
203
158
284
248
240
200
185
155
FY18FY17FY16FY15FY14FY13FY12
BOTTLE SWAP VOLUMES (‘000 cylinders)
H1H2
•Increased Kapuniproduction & higher Liquigas
throughput
•New bottle plant in South Auckland is now
operational
–Bottle swaps (9kg) up 10.1% to 351,962
bottles from 319,685 a year earlier
–New plant to drive higher margins in H2
17
NETWORK EARNINGS IMPACTED BY HIGHER MAINTENANCE
2,657
3,003
3,780
3,916
4,583
6,090
1,233
1,499
1,550
1,538
1,907
1,656
H1 2013H1 2014H1 2015H1 2016H1 2017H1 2018
NEW CONNECTIONS
Electricity ConnectionsGas Connections
195.7
192.7
-1.4
2.6
-6.5
3.3
-1.0
H1 2017Gas RevenueElectricity
revenue (net of
passthrough)
Higher
Maintenance
Restructure of
internal comms
charges *
OtherH1 2018
ADJUSTED EBITDA MOVEMENT ($M)
Regulated
Networks
Segment
•New connections up 19.4% to 7,746
–559,777 electricity connections (up 1.2%)
–108,270 gas connections (up 2.2%)
•Despite connection growth, electricity volumes
only up 0.3% to 4,352 GWh
•Gas Volumes up 1.3% to 7.7 PJ
•Capital Contributions up 9.7% to $33.8m
driven by connection growth & infrastructure
development
•Gas price reduction of 14% from 1 October
•Increase in maintenance spend driven by
additional vegetation and planned maintenance
* There is a corresponding offset included in Technology segment
New
connections
have doubled in
5 years
18
OUTLOOK
•Strong connection growth in Networks, but not flowing to earnings
−Gas Reset price reduction of 14% from 1 October 2017
−SAIDI/SAIFI penalty impacting revenue by c$4m from 1 April 2018
−Commerce Commission LUFC settlement of $13.9m spread over two regulatory years commencing 1 April 2018
•Metering deployment switching towards Australia
−80,000-100,000 smart meters in NZ in FY18 (this will largely complete Vector’s NZ smart meter mass deployment)
−Currently deploying 1,000 meters per week in Australia, expect this to accelerate over H2
•Continue to expect adjusted EBITDA for FY18 at or around FY17 result
19
Q&A
ANY QUESTIONS?
20
APPENDICES
21
5 YEAR ADJUSTED EBITDA PERFORMANCE BY SEGMENT
H1 2014H1 2015H1 2016H1 2017H1 2018
Regulated Networks
197.7191.3196.4195.7192.7
Gas Trading
25.129.325.223.718.4
Technology
44.849.757.060.564.7
Corporate
-24.6-25.5-25.1-22.9-25.8
Total Group
243.0244.8253.5257.0250.0
243.0
244.8
253.5
257.0
250.0
Adjusted EBITDA
$million
For the half year ended 31 December
22
GROUP PROFIT STATEMENT
HALF YEAR ENDED 31DECEMBER ($M)
INCOME STATEMENT
H1 2018
$m
H1 2017
$m
Change
%
Revenue (excluding capitalcontributions)
642.0594.3+8.0
Operatingexpenditure(392.0)(337.3)-16.2
AdjustedEBITDA250.0257.0-2.7
CapitalContributions34.231.3+9.3
Depreciationandamortisation(109.6)(97.2)-12.8
Netinterestcosts(66.4)(68.6)+3.2
Fairvaluechangeonfinancialinstruments2.80.0n/a
Associates(shareofnetprofit/(loss))(0.1)1.1n/a
Tax(31.9)(16.5)-93.3
Netprofitfortheperiod79.0107.1-26.2
23
GROUP CASH FLOW
HALF YEAR ENDED31 DECEMBER ($M)
CASH FLOW
H1 2018
$m
H1 2017
$m
Operating cash flow
236.0226.2
Replacement capex
(75.2)(70.3)
Dividendspaid(80.3)(80.2)
Cashavailableforgrowthanddebtrepayment80.575.7
Growthcapex(109.6)(110.0)
Otherinvestmentactivities(15.7)0.1
Predebtfinancingcashinflow(44.8)(34.2)
Proceedsfromborrowings435.80.0
Repaymentofborrowings(400.0)(98.9)
Otherfinancingactivities12.0(1.0)
Increase/(decrease)incash3.0(134.1)
24
SEGMENT RESULTS
HALF YEAR ENDED 31 DECEMBER ($M)
REGULATED NETWORKSTECHNOLOGYGAS TRADINGCORPORATE
H1 2018H1 2017Change %H1 2018H1 2017Change %H1 2018H1 2017Change %H1 2018H1 2017Change %
Revenue excluding
CapitalContributions
358.9353.8+1.4133.597.9+36.4153.5150.2+2.20.82.2-63.6
Operating expenditure(166.2)(158.1)-5.1(68.8)(37.4)-84.0(135.1)(126.5)-6.8(26.6)(25.1)-6.0
Segment Adjusted
EBITDA
192.7195.7-1.564.760.5+6.918.423.7-22.4(25.8)(22.9)-12.7
CAPEX
Replacement 63.744.9+41.94.35.5-21.82.82.1+33.33.88.8-56.8
Growth 55.957.3-2.435.944.3-19.07.89.9-21.28.50.1n/a
Total capex119.6102.2+17.040.249.8-19.310.612.0-11.712.38.9+38.2
25
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 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, 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
Half year ended 31 December
H1 2018
$M
H1 2017
$M
Reportednet profit for the period (GAAP)79.0107.1
Addback:netinterestcosts
1
66.468.6
Addback:tax(benefit)/expense
1
31.916.5
Addback:depreciationandamortisation
1
109.697.2
EBITDA286.9289.4
Adjustedfor:
Associates (share of net(profit)/loss)
1
0.1(1.1)
Fair value change on financial instruments
1
(2.8)0.0
CapitalContributions(34.2)(31.3)
AdjustedEBITDA250.0257.0
26
SEGMENT ADJUSTED EBITDA
SEGMENTADJUSTED EBITDA ($m)
H1 2018H1 2017
Half yearended 31 December
Reported
segment EBITDA
less capital
contributions
Segment
adjusted EBITDA
Reported
segment EBITDA
less capital
contributions
Segment
adjusted EBITDA
Technology
65.1(0.4)64.761.0(0.5)60.5
Gas Trading
18.4-18.423.7-23.7
Unregulated Segments
83.5(0.4)83.184.7(0.5)84.2
Regulated Networks
226.5(34.2)192.7226.5(30.8)195.7
Corporate
(25.8)-(25.8)(22.9)0.0(22.9)
TOTAL
284.2(34.2)250.0288.3(31.3)257.0
---
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If more than one security is affected by the event, use a separate form.
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$
28 March, 201811 April, 2018
$82,500,000
Date Payable
$$0.005729$0.032083
In dollars and cents
Retained Earnings
$0.08250
$0.00000
NZD$0.014559
Enter N/A if not
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ORDINARY SHARESNZVCTE0001S7
EMAIL: announce@nzx.com
Notice of event affecting securities
Vector Limited
John RodgerDIRECTORS RESOLUTION
09 978 78522822018
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.