Financial Results for the year to 30 June 2019

Full Year Results22 August 2019VCTUtilities

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creating a new energy future

FINANCIAL RESULTS FOR THE YEAR TO 30 JUNE 2019

FY19 ADJUSTED EBITDA RESULT IN LINE WITH GUIDANCE.
NOVEMBER REGULATORY RESET KEY FOR FIVE YEAR OUTLOOK

Vector’s financial results for the 12 months to 30 June 2019 were steady, with adjusted
earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA)
1
of $485.8
million
2
- ahead of FY18 and in the mid-point of the guidance range provided over the year.

Shareholders will receive a fully imputed final dividend of 8.25 cents per share, taking the full
year dividend to 16.50 cents per share, up from 16.25 cents per share in 2018.

Dame Alison Paterson said, “While our revenues continued to benefit from strong connection
growth across our networks and the further expansion of the metering business in New
Zealand and Australia, gains were partially offset by increased maintenance expenditure to
improve electricity network reliability and the underperformance of E-Co Products Group,
trading as HRV.

“Group net profit after tax was $84.0 million and includes a non-cash impairment of
$46.6 million in respect of E-Co Products Group. The prior year’s net profit of $149.8
million included a one-off tax gain of $16.7 million. If we exclude these, Group net
profit after tax of $130.6 million was down slightly on the prior year.

“As a result of the disappointing performance of E-Co Products Group leading to
impairment, we have new leadership in place and have repositioned the business with
our other technology solutions, through Vector PowerSmart.

“For the past decade, we have worked hard to build a strategic asset portfolio which
provides more options for sustainable returns. Alongside our regulated electricity and
gas businesses, we have continued to grow our wider businesses, particularly Vector
PowerSmart, Vector Advanced Metering Services (AMS) and Vector
Communications, which, along with our Gas Trading business, define our company
as an energy group with a growing domestic and international footprint.”

Vector Group Chief Executive, Simon Mackenzie said, “The 12 months saw many
operational highlights, including continued network and smart meter connection
growth, ongoing leadership in health and safety, and the successful integration of
network management software co-developed with technology firm, mPrest.

“Vector has continued to engage with the Commerce Commission in relation to electricity
network service performance in the context of an increasingly challenging environment. As
part of this process, earlier this year Vector and the Commission agreed to recommend to
the Court a penalty of $3.6 million in recognition of Vector’s breaches of the electricity

1
Excludes capital contributions
2
As at 1 July 2018, Vector adopted new accounting standards for revenue from contracts and leases (NZ IFRS 15 and 16) and
changed the way we account for gains/losses on disposal of fixed assets. For more information and a breakdown of NZ IFRS
changes by segment see notes to the financial statements in Vector’s 2019 annual report.

market release
23 August 2019

creating a new energy future

network quality standards in 2015 and 2016. This year we have strengthened our focus on
improving network reliability and we remain committed to meeting our regulatory compliance
requirements.”

“Vector is facing a significant, ongoing requirement to invest in our networks not just to
support growing consumer demand, but also local and central policy objectives of enabling
Auckland growth, keeping energy affordable and enabling the transition to a low carbon
world through the accelerated electrification of transport.

“April 2020 marks the start of the next five-year regulatory period where the Commerce
Commission will reset limits for our electricity network revenues and network quality
standards.

“In terms of network revenues, a key focus of our ongoing engagement with the Commission
calls into question the sustainability of two critical regulatory settings. The first is the
indexation of asset values, which are heavily reliant on inflation forecasts and have been
significantly over-forecasted for a decade - resulting in major revenue impacts to electricity
distributors, without correction.

“Secondly, the current ultra-low interest rate environment underscores the urgent need for
the Commerce Commission to amend the way it derives the cost of debt in its Weighted
Average Cost of Capital (WACC) determinations. Currently this is determined from a narrow
window around the time of reset.

“Within the broader regulatory regime, there are avenues for Vector and the Commerce
Commission to work together to correct these anomalies, and better align cashflows with
investment needs.

“We remain committed to working openly and collaboratively with the Commerce
Commission - both within the current reset process and beyond - to explore all options to
address these two challenges.”

Looking ahead
Dame Alison Paterson said, “While acknowledging the key challenges ahead of us, we
remain committed to Vector’s vision to create a new energy future for New Zealanders.

“We remain confident in our plan to rise to the challenges of Auckland’s growth and
increasing electrification of transport. We will continue target investment as efficiently as we
can by supporting traditional network assets with digital and new energy solutions for the
long-term benefit of energy consumers. However, changes to regulatory settings which
enable this investment will be critical.

“We are pleased by our ongoing success in the Australian metering market and look forward
to continued growth in the coming year. Our revised approach for Vector Communications
and the newly consolidated Vector PowerSmart business are already gaining traction, and
we look forward to reporting on progress and improved profitability. Our Gas Trading

creating a new energy future

business will continue to adapt and seek new opportunities in the challenging market
conditions.

“As has been signalled previously, we will be reviewing our dividend policy and providing
guidance on FY20 earnings once we have the Commission’s final reset decision, which is
expected in late November of this year.”

ENDS

Investor contact
Jason Hollingworth, Chief Financial Officer, Vector
Jason.hollingworth@vector.co.nz, 021 312 928

Media contact
Elissa Downey, Acting Senior Manager Corporate Communications, Vector
Elissa.downey@vector.co.nz
, 021 866 146

About Vector
Vector is New Zealand’s leading network infrastructure company which runs a portfolio of
businesses delivering energy and communication services to more than one million homes
and commercial customers across the country. Vector is leading the country in creating a
new energy future for customers and continues to grow and invest in the growth of Auckland,
and in a wide range of activities and locations. 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

---

VECTOR LIMITED
Results announcement

Results for announcement to the market
Name of issuer VECTOR LIMITED
Reporting Period 12 MONTHS TO 30 JUNE 2019
Previous Reporting Period 12 MONTHS TO 30 JUNE 2018
Currency NEW ZEALAND DOLLAR
Amount (000s) Percentage change
Revenue from continuing
operations
$1,318,610 -0.7%
Total Revenue $1,318,610 -0.7%
Net profit/(loss) from
continuing operations
$82,898 -44.1%
Total net profit/(loss) $82,898 -44.1%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.08250000
Imputed amount per Quoted
Equity Security
$0.03208300
Record Date 09/09/2019
Dividend Payment Date 16/09/2019
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.978 $1.042
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to accompanying audited financial statements
Authority for this announcement
Name of person

authorised
to make this announcement
JOHN RODGER
Contact person for this
announcement
JOHN RODGER
Contact phone number 021 573640
Contact email address john.rodger@vector.co.nz
Date of release through MAP

23/08/2019

Audited financial statements accompany this announcement.

---

FULL YEAR ENDED 30 JUNE 2019
FINANCIAL &
OPERATIONAL
RESULTS
23 August 2019

Disclaimer
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.
2

Agenda
3
•Dividend
•FY2019 Business Insights
•Financial Performance
•Segment Performance
•Outlook
•Q&A

DIVIDEND
4

Full year dividend growth
6.00
6.506.506.506.50
6.75
7.00
7.25
7.507.50
7.75
8.00
8.258.25
6.00
6.50
6.75
7.25
7.50
7.50
7.50
7.75
7.75
8.00
8.00
8.00
8.00
8.25
FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19
Dividend growth (cents per share)
InterimFinal
•Full year dividend of 16.50 cents per
share
−Up 0.25 cents per share on prior year
−Fully imputed
•Dividend policy to be reviewed once
parameters for 2020 electricity reset
are confirmed
•Electricity network revenues from 1
April 2020 to 31 March 2025 (DPP3) will
be known by December 2019
•We will provide dividend and FY20
adjusted EBITDA guidance following
the final DPP3 decision
5

FY2019 BUSINESS INSIGHTS
6

•HRV combining with
PowerSmart to form ‘Vector
PowerSmart
•600kW renewable energy
system installed in Niue
•More than 96,000 rapid EV
charging sessions on Vector
owned charging stations
FY19 Business insights
•14,322 new electricity and gas
connections, c50% higher than 5
years ago
•Electricity volumes down 0.4%
to 8,410 GWh with C&I volumes
lower but residential volumes
higher
•Invested a further $261m of
capital expenditure in our
networks –or $5m every week
•Deployed 57k advanced
meters in NZ
•Deployed 96k advanced
meters in Australia
•Smart meter fleet totals 1.6m
across NZ and Australia
•Acquisition of Vircom
augments nationwide service
capability in NZ
•Continued natural gas supply
constraints due to field
outages
•Kapunifield production up
8.5%
•New LPG 9kg Bottle Swap
plant generating cost
efficiencies
•Bottle Swap plant won
‘Health and Safety Initiative of
the year’ at Deloitte Energy
Excellence Awards
New energy solutions
Challenging environment
for Gas Trading
Metering growth
Network growth
7

Continued business leadership
8
•LTIFR reduced by 35%
•TRIFR reduced by 40%
•31,000 native trees planted through
Urban Forest initiative over past year
•Vector EV charging stations have saved
more than 1,183 tonnes of CO
2
emissions from entering the
environment (compared to petrol
powered vehicles)
•Convened Battery Industry Group to
address end-of-life battery issues
•17% reduction in carbon intensity
•First NZ business to gain Accessibility
Tick
14.04
12.95
7.45
8.04
8.18
12.54
7.51
FY13FY14FY15FY16FY17FY18FY19
Total Recordable Injury Frequency Rate (TRIFR)
Number of recordable cases per million hours worked,
including contractors
2.76
2.80
2.90
2.96
2.52
2.30
1.50
FY13FY14FY15FY16FY17FY18FY19
Total Lost Time Injury Frequency Rate (LTIFR)
Number of lost time injury incidents per million hours
worked, including contractors
Urban
Forest
Initiative

FINANCIAL PERFORMANCE
9

Overview of financial performance
10
1328.4
470.1
381.2
149.8
389.9
162.5
1318.6
485.8
425.1
84.0
348.1
165.0
RevenueAdjusted EBITDACapital ExpenditureNet ProfitOperating Cash FlowFull Year Dividend
FY19 FINANCIAL PERFORMANCE ($M)
FY18
FY19
From 1 July 2018 we adopted IFRS 15/16
and changed the accounting treatment
of gains/losses on disposal of fixed assets.
Excluding these accounting changes,
comparable adjusted EBITDA would be
$475m (up 1%). Comparatives not
adjusted. See Appendix for more detail.
NPAT impacted by
$46.6m impairment
of E-Co and one-off
tax gain in prior
year of $16.7m
Adjusted EBITDA is not a GAAP measure of profit. For a reconciliation of adjusted EBITDA to EBITDA and net profit refer to page31 of this presentation.

Comparable segment earnings up $4.8m or 1.0%
11
470.1
485.8
+3.5
-4.6
+8.4
-2.5
+9.6
+1.3
FY18Regulated
Networks
Gas TradingTechnologyCorporateAccounting
change: IFRS
Accounting
change: Loss on
disposal
FY19
FY19 ADJUSTED EBITDA MOVEMENT ($M)
Accounting changes
+$10.9m
Higher residential
electricity revenue
due to increase in
connections
Driven by
smart meter
growth
From 1 July 2018 we have adopted new accounting standards on revenue and leasing (IFRS 15/16) and changed the treatment of gains/losses on disposal of fixed assets
More detail on these changes is available on slide 30
Multiple gas
field outages
impacting
gas market
Comparable segment earnings +$4.8m

NPAT impacted by impairment, one-off tax gain in prior
year and higher depreciation and amortisation
12
149.8
84.0
-46.6
-16.7
+3.5
+5.6
+6.9
-5.6
-1.4
-9.4
-2.1
FY18ImpairmentTax - one off
gain in FY18
Earnings
excluding
accounting
changes
Capital
Contributions
EarningsDepreciation &
Amortisation
InterestDepreciation &
Amortisation
OtherFY19
MOVEMENT IN NET PROFIT AFTER TAX ($M)
All items above are net of tax (except impairment and one off tax gain).
“Other”includes associates, interest (other than IFRS 16) and fair value change on financial instruments
The impact of the IFRS 15/16 accounting change is shown in more detail on slide 30
Increase is driven by
growth in asset base,
amortisation of
intangibles, accelerated
depreciation and
change in treatment on
disposal of fixed assets
Increase is due to
growth in sub-
division activity
and infrastructure
development in
Auckland
Post tax impact
of IFRS 15/16
accounting
change
Impairment of
E-Co Products
Group

Capex driven by Auckland growth & meter
deployment in Australia
13
$245.8m
64%
$17.1m
5%
$93.7m
25%
$24.6m
6%
$260.9m
61%
$11.8m
3%
$127.3m
30%
$25.1m
6%
GROSS CAPEX BY SEGMENT
Regulated Networks
Gas Trading
Technology
Corporate
FY18
FY19
309.7
345.8
71.5
79.3
FY18FY19
GROSS CAPITAL EXPENDITURE ($m)
Net capexCapital contributions
•Gross capex up 11.5% to $425.1m. Net capex (after deducting contributions) up 11.7% to $345.8m
•Growth capex up 9.3% to $250.6m. Replacement capex up 14.9% to $174.5m
•Technology capex up 35.9% with growth driven by smart meter deployment in Australia where
we deployed almost 96,000 meters in FY19

Strong balance sheet
14
2,6252,7451,9332,2202,3782,628
52.5%
53.6%
43.7%
47.1%
48.8%
52.2%
Jun 14Jun 15Jun 16Jun 17Jun 18Jun 19
NET ECONOMIC DEBT & GEARING ($M)
Net economic debt ($m)Gearing
•Economic gearing as at 30 June 2019 at 52.2%
•Issued a NZ$250 million senior bond in May 2019 at a rate of 3.45%
•BBB credit rating by Standard and Poor’s
355
300
325
350
307
297
150
251
277
138
240
250
FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30
GROUP DEBT MATURITY $m
Bank FacilitiesCredit Wrapped Floating Rate Notes
Perpetual Capital BondsUSPP
Wholesale BondsSenior Bond

SEGMENT PERFORMANCE
15

Network earnings benefit from higher electricity revenue
16
358.6
367.0
-1.7
7.1
-2.2
0.3
4.9
FY18Gas RevenueElectricity
revenue (net of
passthrough)
Higher
Maintenance
OtherAccounting
Changes*
FY19
ADJUSTED EBITDA MOVEMENT ($M)
•Revenue growth coming from residential sector
driven by ongoing connection growth and
average household consumption, which appears
to have stabilised after a decade of decline once
normalised for weather
•Revenue would be higher if not for:
−Settlement with Commission for LUFC adjustment
−Missing regulatory incentive targets reducing revenue by
c$4m pa from 1 April 2018
−Regulatory forecast inaccuracies
•Gas volumes down slightly at 14.4 PJ from 14.5 PJ a
year earlier. Gas revenue impacted by full year of
regulatory price reset of -14% from 1 October 2017
•Increase in maintenance focused on improving
network reliability and reducing SAIDI
* Adoption of IFRS 15/16 from 1 July 2018. Impact for FY19 is $2.5m. In addition, the prior year included a loss on disposal of ($2.4m) as part of operating expenses. In the current
period, gains/losses on disposal of fixed assets have been classified to depreciation with a loss of ($2.1m) recorded in the period. Comparatives for both changes have not been
restated.

Regulated capex higher due to continued Auckland
growth and higher replacement capex
17
•Regulated capex up 6.1% to $260.9m
•Higher capex driven by investment to improve
safety, reliability and resilience of our network
and to support Auckland growth
•Capital contributions up 12.5% to $79.0m
driven by Auckland infrastructure
development and increase in subdivision
activity
•Electricity Regulated Asset Base (RAB) as at 31
March is c$3.1b. Gas RAB is c$420m
•New connections for FY19 up slightly to 14,322
−571,125 total electricity connections (up 1.4%)
−111,642 total gas connections (up 2.2%)
−New connections remain circa 50% higher than 5
years ago
6,202
7,813
8,526
9,138
11,135
11,000
3,107
2,821
3,323
3,515
3,165
3,322
FY14FY15FY16FY17FY18FY19
NEW CONNECTIONS
ElectricityGas
164.4
183.7
170.4
201.0
210.6
245.8
260.9
FY13FY14FY15FY16FY17FY18FY19
REGULATED NETWORK CAPEX $M
ReplacementGrowth

Electricity default price path reset (DPP3)
18
•Next DPP (DPP3) in place from 1 April 2020 to 31 March 2025
•The WACC will be based on an average of the risk free rate over the period 1 June
2019 to 31 August 2019
•The draft DPP3 released by the Commission on 29 May 2019 indicated a price
change (from RY20 to RY21) of -3.5%
−Key parameters of the reset still to be determined
•Expected return over DPP2 was 7.2% but have been earning 6.0% due to a
number of issues including:
−CPI has been lower than 2% assumption used by the Commission
−Revenues were set on the basis that volume growth would be 1.1%pa but actual
volume growth has been less
•Since 2013, regulatory forecasting inaccuracies have translated to around $270m
of lost revenue
•As we move from DPP2 to DPP3, the downward price reset as a result of the lower
WACC will be less than implied by the WACC change as we are already earning
less than the allowable return
•We are engaging with the Commission on this reset and on a number of issues
given the significant growth in Auckland, cash flow profile and risk free rates
7.2%
5.7%
6.0%
Regulated Allowed
Return
Actual Return RY19Actual Return DPP2
life to date
Electricity Returns for DPP2

Gas Trading performance weighed down by challenging
market conditions
19
34.4
31.3
-2.3
0.7
-1.2
-1.8
1.5
FY18Natural GasGrowth in LPG
and Liquids
Higher Kapuni
maintenance
Lower Liquigas
throughput
Accounting
Changes*
FY19
ADJUSTED EBITDA MOVEMENT ($M)
358
352
320
302
266
229
203
158
300
301
284
248
240
200
185
155
FY19FY18FY17FY16FY15FY14FY13FY12
BOTTLE SWAP VOLUMES (‘000 cylinders)
H1H2
•Challenging market conditions for Natural Gas
business
−Natural gas volumes fell 12.0% to 16.1 PJ
−Planned and unplanned gas field outages reduced supply
•Solid performance in Liquids & LPG
−Gas liquid sales up 1.9% to 79,170 tonnes
−Bottle Swap growth slowing (volumes up 0.8% on prior
period) but we are now benefitting from cost efficiencies at
the new plant
•Liquigas tolling volumes were down 17.1% to
152,206 tonnes due to lack of exports
•Additional cyclical maintenance requirements at
KapuniGas Treatment Plant
* Adoption of IFRS 15/16 from 1 July 2018. Impact for FY20 is $1.4m. In addition, the prior year included a loss on disposal of ($0.1m) as part of operating expenses. In the current
period, gains/losses on disposal of fixed assets have been classified to depreciation with a small gain of $0.03m recorded inthe period. Comparatives for both changes have
not been restated.

Technology result driven by smart meter rollout
20
130.5
142.0
7.3
4.8
-3.7
3.1
FY18Additional Meters
in NZ
Additional Smart
Meters in Australia
New Energy
Solutions
performance
Accounting
Changes*
FY19
ADJUSTED EBITDA MOVEMENT ($M)
•Smart meter fleet now 1.56 million (owned &
managed)
−Deployed nearly 96,000 smart meters in Australia, in line with
expectations
−NZ smart meter base increased by almost 57,000 (net of
replacements)
−Vircomacquired in September 2018
•HRV now combined with PowerSmart to form
Vector PowerSmart
̅Vector PowerSmart to develop solutions to meet the needs
of the new energy future and growing electrification of
transport
̅HRV will focus on ventilation, heating and air-conditioning
̅PowerSmart led the way with a number of large scale
Commercial solar and battery installations during the year
including project on Niue
* Adoption of IFRS 15/16 from 1 July 2018. Impact for FY19 is $4.3m. In addition, the prior year included a gain on disposal of $1.2m as part of operating expenses. In the current
period, gains/losses on disposal of fixed assets have been classified to depreciation with a loss of ($1.5m) recorded in the period. Comparatives for both changes have not been
restated.

OUTLOOK
21

Outlook
22
•Auckland growth continues
−Targeting c12,000 new electricity connections in FY20
−Connections & infrastructure activity remain elevated, necessitating significant capital expenditure
•Smart meter deployment to increase in FY20
−Targeting 135k smart meters in Australia and 60k in New Zealand
•Impact of 2020 electricity reset will be known by the end of November 2019.
FY20 guidance on hold until then
−Regulatory WACC for DPP3 effectively known by 31 August 2019
−Final decision on electricity allowances and quality targets on 28 November
•Dividend policy to be reviewed once parameters for 2020 electricity reset are
confirmed

Q&A
ANY QUESTIONS?
23

APPENDICES
24

5 Year Adjusted EBITDA Performance by Segment
25
FY2015FY2016FY2017FY2018FY2019
Regulated Networks
349.7368.5361.2358.6367.0
Gas Trading
46.940.636.934.431.3
Technology
105.5113.5122.5130.5142.0
Corporate
(50.2)(49.6)(46.2)(53.4)(54.5)
Total Group
451.9473.0474.4470.1485.8
451.9
473.0
474.4
470.1
485.8
Adjusted EBITDA (Continuing Operations Only)
$million
For the year ended 30 June

Segment Results
Year ended 30 June ($m)
26
REGULATED NETWORKS
TECHNOLOGY
GAS TRADINGCORPORATE
20192018
Change
%
20192018
Change
%
20192018
Change
%
20192018
Change
%
Revenue excluding
CapitalContributions
690.1706.0-2.3274.5272.3+0.8284.1290.3-2.10.40.9-55.6
Operating
expenditure
(323.1)(347.4)+7.0(132.5)(141.8)+6.6(252.8)(255.9)+1.2(54.9)*(54.3)-1.1
Segment Adjusted
EBITDA
367.0358.6+2.3142.0130.5+8.831.334.4-9.0(54.5)(53.4)-2.1
CAPEX
Replacement
140.6123.8+13.614.811.3+31.05.96.1-3.313.210.7+23.4
Growth 120.3122.0-1.4112.582.4+36.55.911.0-46.411.913.9-14.4
Total capex260.9245.8+6.1127.393.7+35.911.817.1-31.025.124.6+2.0
* Corporate includes a group elimination of ($0.1m) in relation to margin earned by the Technology segment in
the delivery of solutions to the Regulated Networks.

Group Profit Statement
Year ended 30 June ($m)
27
INCOME STATEMENT
2019
$m
2018
$m
Change
%
Revenue (excluding capitalcontributions)
1,239.31,256.9-1.4
Operatingexpenditure(753.5)(786.8)+4.2
AdjustedEBITDA485.8470.1+3.3
CapitalContributions79.371.5+10.9
Depreciationandamortisation(246.8)(225.9)-9.3
Netinterestcosts(133.3)(130.7)-2.0
Fairvaluechangeonfinancialinstruments(2.5)3.1-180.6
Associates(shareofnetprofit/(loss))0.6(1.5)+140.0
Impairment(46.6)-n/a
Tax(52.5)(36.8)-42.7
Netprofitfortheperiod84.0149.8-43.9

28
Group Cash Flow
Year ended 30 June ($m)
CASH FLOW
2019
$m
2018
$m
Operating cash flow
348.1389.9
Replacement capex
(170.1)(152.7)
Dividendspaid
(164.1)(163.9)
Cashavailableforgrowthanddebtrepayment
13.973.3
Growthcapex
(248.3)(234.1)
Acquisitions
(8.0)(3.1)
Proceedsfromsaleofinvestments
-7.8
Otherinvestmentactivities
(1.0)(13.6)
Predebtfinancingcash(outflow)/inflow
(243.4)(169.7)
Increase/(decrease)inborrowings
249.4170.8
Otherfinancingactivities
(6.3)11.9
Increase/(decrease)incash
(0.3)13.0

Segment Adjusted EBITDA
29
SEGMENTADJUSTED EBITDA ($m)
20192018
Year ended 30 June
Reported
segment
EBITDA
less capital
contributions
Segment
adjusted EBITDA
Reported
segment
EBITDA
less capital
contributions
Segment
adjusted EBITDA
Technology142.3(0.3)142.0131.8(1.3)130.5
Gas Trading31.3-31.334.4-34.4
Unregulated Segments173.6(0.3)173.3166.2(1.3)164.9
Regulated Networks446.0(79.0)367.0428.8(70.2)358.6
Corporate(54.5)-(54.5)(53.4)-(53.4)
TOTAL565.1(79.3)485.8541.6(71.5)470.1
n
n
n
n
n
n
n
n
n
n
n
n
n
nnnnnnnnnnnnn

Impact of Accounting Changes in FY19
30
•Change 1: From 1 July 2018, Vector has adopted two new accounting standards (IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases). Of the
two accounting standards, IFRS 16 poses the most significant financial impact in both the balance sheet and the profit and loss.IFRS 16 requires that
the present value of the outstanding liability for leases is calculated using Vector’s incremental borrowing rate at the date of transition. The right of use asset is
then recognised and measured at a value equalling the lease liability, adjusted for lease incentives recorded on the balance sheet. Under the modified
retrospective approach, the FY18 comparatives are not restated. The impact on the profit and loss statement is a reduction inthe amount of operating
expense reported, offset by an increase in depreciation and interest. The impact for the year ending 30 June 2019 is a reductionto operating expense of $8.4m
and an increase to depreciation of $7.8m and interest cost of $2.0m. The impact of IFRS 15 is an increase to revenue of $1.2m
•Change 2: Vector has also reassessed the presentation of gains and losses on disposal of fixed assets within our statement of profit and loss. Historically,
disposal gains and losses have been included within ‘Operating Expenses’. Disposal gains/losses are also included within the group’s non-GAAP profit
measures of EBITDA and adjusted EBITDA. From 1 July 2018 we have included disposal gains and losses with depreciation and amortisation. In the year ending
30 June 2019, $3.6 million has been reclassified from Operating Expenses to Depreciation and Amortisation. The FY18 comparativesare not restated. Prior year
comparative value was $1.3m.
Segment
(A)
Prior year
reported FY18
Segment
Adjusted
EBITDA
(B)
Change 1:
Impact of
adoption of
IFRS 15/16
(C)
Change 2:
FY18 gain/(loss)
on disposal of
fixed assets
(D)= (B) + (C)
Total Impact of
changes on
comparables
(E)
FY19 Segment
adjusted
EBITDA post
accounting
changes
(F) = (E) –(D)
Comparable
1
Segment
adjusted
EBITDA FY19
Note: Re-
Classification of
FY19
gains/losses on
disposal to
Depreciation
Regulated Networks358.6 2.52.44.9367.0 362.12.1
Gas Trading34.4 1.4 0.11.531.329.8(0.0)
Technology130.54.3 (1.2)3.1142.0 138.91.5
Corporate(53.4) 1.4 0.01.4(54.5) (55.9)0.0
Adjusted EBITDA470.19.6 1.310.9485.8 474.93.6
Depreciation and
Amortisation(7.8) (3.6)
Finance Cost(2.0)
1
Comparable segment adjusted EBITDA excludes the impact of the two accounting changes

GAAP to Non-GAAP Reconciliation
31
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 toNon-GAAP reconciliation
EBITDA and Adjusted EBITDA
Year ended 30 June
2019
$M
2018
$M
Reportednet profit for the period (GAAP)
84.0149.8
Addback:netinterestcosts
1
133.3130.7
Addback:tax(benefit)/expense
1
52.536.8
Addback:depreciationandamortisation
1
246.8225.9
EBITDA516.6543.2
Adjustedfor:
Associates (share of net(profit)/loss)
1
(0.6)1.5
Capital Contributions
1
(79.3)(71.5)
Fair value change on financial instruments
1
2.5(3.1)
Impairment
1
46.6-
AdjustedEBITDA485.8470.1
1
Extracted from audited financial statements

END
32

---

VECTOR LIMITED
Distribution Notice
Section 1: Issuer information
Name of issuer VECTOR LIMITED
Financial product name/description ORDINARY SHARES
NZX ticker code VCT
ISIN NZVCTE000157
Type of distribution

Full
Year
X Quarterly
Half
Year
Special
DRP
applies

Record date 09/09/2019
Ex-Date 06/09/2019
Payment date 16/09/2019
Total monies associated with the distribution $82,500,000
Source of distribution RETAINED EARNINGS
Currency NEW ZEALAND DOLLAR
Section 2: Distribution amounts per financial product
Gross distribution $0.11458300
Total cash distribution $0.08250000
Excluded amount (applicable to listed PIEs) NOT APPLICABLE
Supplementary distribution amount $0.01455900
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please state
imputation rate as % applied
28%
Imputation tax credits per financial product $0.03208300
Resident Withholding Tax per financial product $0.00572900
Section 4: Distribution re-investment plan
NOT APPLICABLE

Section 5: Authority for this announcement
Name of person

authorised to make this
announcement
JOHN RODGER
Contact person for this announcement JOHN RODGER
Contact phone number 021 573 640
Contact email address john.rodger@vector.co.nz
Date of release through MAP

23/08/2019

---

Vector Limited’s Annual Report for the year ended 30 June 2019 is publicly
available, free of charge, on our website www.vector.co.nz/investors/reports.
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---

energy systems to
move us all forward
ANNUAL REPORT 2019

Life is enabled by infrastructure.
Core systems that deliver everything we take for granted.
Vector is one of those systems. With a
stable and robust core, our business has
the flexibility to rise to the challenges of
Auckland’s ever-growing energy demands.

ENERGY SYSTEMS
TO MOVE US ALL FORWARD
1 ―

― 2

Meeting the needs of tomorrow takes foresight,
capability and an environment that enables innovation,
investment and momentum.
We are leading the way in creating
intelligent and affordable energy systems
with the structural integrity to empower
our customers well into the future.
Vector is working with customers,
industry and global technology companies
to ensure we tackle the challenges
of a rapidly changing world, and create
a new energy future together.
ENERGY SYSTEMS
TO MOVE US ALL FORWARD
3 ―

About this report
This report, dated 22 August 2019, is a review of
Vector’s financial, operational and environmental
performance for the year ended 30 June 2019.
The financial statements have been prepared in
accordance with appropriate accounting standards
and have been independently audited by KPMG.
The financial, operational and environmental
information has been compiled in line with NZX
Rules and recommendations for investor reporting,
as well as Vector’s commitments to the United
Nations Sustainable Development Goals. Our
greenhouse gas (GHG) emissions as reported on
page 35 were also independently assured by KPMG
in accordance with ISAE3410. This approach is also
consistent with GHG protocol.
The report has drawn from a wide range of
information sources. This includes: our stakeholders,
customers, communities, sustainability framework,
value drivers, risk register, Board reports, asset
management plan, financial accounts and our
operational reports.
Throughout the report, we have focused on what
matters most to our stakeholders and our business.
Care has been taken to ensure all information in this
report is accurate, including internal assurance and
verification processes and Board approval.
Forward-looking statements in this report are based
on best-available information and assumptions
regarding Vector’s businesses and performance, the
economy and other future conditions, circumstances
and results. As with any forecast, forward-looking
statements are subject to uncertainty. Vector’s actual
results may vary from those expressed or implied in
these forward-looking statements.
― 4

How Vector creates value 6
Performance snapshot 8
Strong governance in a climate of change 10
Chair and Group Chief Executive report 12
Chief Financial Officer report 16
Our journey to a new energy future 18
Our material issues 20
Safety always 24
Regulated networks 26
Gas trading 29
Technology 30
Our people 32
Our environment 34
Our Board 36
Our management team 38
Governance report 40
Entrust 43
Joint ventures and investments 44
Operating statistics 45
Financial performance trends 46
Non-GAAP financial information 48
Financials 49
Statutory information 99
Financial calendar and directory 110
contents
5 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

Consumer
empowerment
and choice
Enabling positive and
sustainable change to
give customers more
choice and control over
their energy needs
Our People
Our Environment
Our Expertise
Our Finances
Our Assets
and Infrastructure
Our Community
and Relationships
Our energy
networks
Safe, reliable,
resilient, affordable
and future-ready
energy networks
Energy innovation
Shaping the evolving
energy ecosystem
through innovation,
and digital and
engineering know-how
Clean energy
Enabling clean energy
options to support
the transition to a low
carbon world
Empowered people
A workplace that
empowers our
people to contribute
positively to the
business, their
families and
communities
Financial
sustainability
Enabling responsible
investment to help
power Auckland’s
growing economy
OUTCOMES
ONOFF
EV TRAINS
e-buses
ONOFF
ONOFF
ONOFF
ONOFF
ONOFF
e-trains
ONOFF
ONOFF
ONOFF
ONOFF
neighbourhood
power supply
neighbourhood
power supply
STRONG FOUNDATIONNEW ENERGY FUTURE
Electricity network
Gas networks and products
Smart meters
Vector’s fibre networks
More customer choice and control
New energy solutions
Intelligent networks
1
5
3
1
3
4
2
2
6
5
6
7
7
OUR VISION:
Creating a new energy future
COMPANY VALUES:
Passionate, inquisitive,
resilient, here to win
SDGs
INPUTS
4
how Vector creates value
Vector AR’19― how Vector creates value
― 6

performance snapshot
Energy innovation
Vector Lights events for the people
of Auckland
network connected energy resources600 kW renewable energy system
installed in Niue
600kW24400+
1.9%
lift in gas liquid sales to
79,170 tonnes
Consumer empowerment and choice
1.56M
smart meters in New Zealand
and Australia
improved online Outage Centre tool
launched to customers
Our energy networks
$260.9M invested
1
to lift network
2
integrity and enable Auckland growth (over $5 million every week)
14,322
new electricity and gas connections added
major asset relocation projects
to enable significant Auckland
infrastructure upgrades
17
system average interruption duration index (SAIDI): 198 minutes average interruption
duration per customer in regulatory year 2019
3

198 minutes
Credit: City Rail Link Ltd (cityraillink.co.nz)
Vector AR’19― performance snapshot
― 8

Financial sustainability
$485.8M
Adjusted EBITDA
6

$84.0M
Group net profit after tax
16.50cents
Per share full-year dividend
1. Gross regulated capital expenditure.
2. Vector’s regulated electricity and gas networks.
3. This figure includes SAIDI minutes resulting from Vector’s changed health and safety practices.
4. Compared with equivalent energy used by petrol powered vehicles.
5. Lost Time Injury Frequency Rate (LTIFR) and Total Recordable Injury Frequency Rate (TRIFR).
6. Earnings before interest, tax depreciation and amortisation (EBITDA). Accounting changes are
consistent with the CFO report.
Clean energy
1,183 tonnes
CO
2
emissions saved from entering the environment at Vector EV charging stations
4
17%
reduction in corporate carbon intensity
this year
15,750
hours
of learning and development provided
across the Vector group this year
Empowered people
40%
reduction in our TRIFR
5
compared with
FY18, 35% reduction in LTIFR
5
Vector is the first New Zealand business
to gain the Accessibility Tick
native trees planted through Vector’s
Urban Forest Initiative over the past year
free EV charging sessions provided at Vector’s rapid charging stations
96,591
31,000
9 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

strong governance
in a climate of change
Meet our new Chair:
Dame Alison Paterson
Dame Alison Paterson started
her career as an accountant before
becoming a professional company
director in 1976. She was the first
female director of a publicly listed
company and has since held senior
governance roles with some of the
country’s foremost organisations,
including as Chair of Landcorp and
Deputy Chair of the Reserve Bank.
In 2018 Dame Alison was appointed
Chair of Vector’s Board after serving
as a director for eleven years.
Her services to business were
recognised in the 2014 New Year
Honours in which she was made a
Dame Companion of the New Zealand
Order of Merit. Along with Vector,
Dame Alison chairs the Boards
of Kiwi Wealth, the Forestry Industry
Safety Council, Te Aupouri Commercial
Development and Te Aupouri
Fisheries Management. She is also
a member of the Health Quality and
Safety Commission.
In this interview, we ask Dame Alison
about the key changes to Vector’s
Board over the past year, and what’s
next for the company.
What have been the key changes
to Vector’s Board this year?
After a long period of stability, Vector
has worked through a process of Board
renewal and we are privileged to have
three new business leaders join our
Board this year. Tony Carter, Dame
Paula Rebstock and Bruce Turner are
outstanding appointments. They bring
with them wide-ranging commercial and
governance experience to complement
the capability already in place around
the Vector Board table. We look forward
to their contribution as we continue
towards our goal of creating a new
energy future.
What new skills and experience
have been brought to the
Board table?
We followed a rigorous process to
ensure we were introducing the
right mix of skills and capabilities
to complement those already in
place. It is very important to get this
combination right, given our role is
to govern on behalf of shareholders.
While each new director has a wide
variety of governance competencies,
particular strengths are shown by
Dame Paula Rebstock in regulatory policy
and government relations, Bruce Turner
in distribution network engineering,
operations and market trading, and
Tony Carter in customer experience,
new technology disruption, government
relations and corporate governance.
How are you all developing
as a team?
As with any new team it takes time to
develop a fresh dynamic, but overall
everyone is working well together.
What we all have in common is a passion
for the energy sector and the critical role
Vector will play in enabling a new energy
future for Auckland and New Zealand –
both now and into the future.
We are developing a strong working
relationship with Simon Mackenzie
and his management team, many of
whom are also new to the business
this year. The Board is energised by the
wave of fresh thinking combined with
institutional knowledge. It’s a powerful
balance and I am excited about where
it’s leading us.
Vector AR’19― strong governance in a climate of change
― 10

DAME ALISON PATERSON, CHAIR
What excites the Board most
about Vector’s future?
We remain excited by Vector’s vision to
create a new energy future, recognising
the changing world, the development of
new technologies and how the consumer
is at the centre of new technology and
behaviours. Much of this is driven by
the responsibilities we have within an
environment characterised by relentless
growth and the increasing electrification
of motor vehicles which will only accelerate
as New Zealand works towards achieving
its net zero carbon goals.
Our ambition is to remain at the forefront
of new technology solutions that deliver
for our customers. Vector’s strategy has
two key elements. The first is optimising
our core network – the foundation of our
business – by making it truly intelligent.
Traditional assets will continue to play a key
role but they will be integrated with digital
and consumer assets. This capability will
allow us to more efficiently manage loads
and smooth out the demand curve. This
will mean we don’t have to invest so much
in continuing to build more and more
infrastructure that runs the risk of future
redundancy as technology drives energy
efficiency and alternatives.
The second element is to enable a new
energy future by empowering customers to
better manage and use their energy. Vector
has led the way in smart metering and is
now developing real traction in alternative
technologies such as batteries and solar.
We have engaged expertise in New Zealand
and internationally, and will continue to take
in these insightful global perspectives as
we progress this element of our strategy.
Furthermore, the Board is energised
by our responsibility to have a strong
voice on behalf of our customers and to
represent their interests on a variety of
industry issues. Some parties won’t agree
with the positions we take – but at least
they know where we stand!
What’s keeping you awake at night?
At a time of ultra-low interest rates and
pressures on growth, real infrastructure
investment in an economy assumes
even greater importance. I worry that
aspects of regulatory settings risk harming
incentives to invest by not being aligned
to the uncharted territory we are now
in. Inflation within regulatory settings
has been consistently over-forecast
without correction for a decade. It cannot
continue because it has the effect of
significantly reducing cashflow available
for critical infrastructure investment.
Settings must adapt to changing times
and regulation is no exception.
Click here to watch an interview with
Dame Alison Paterson.
11 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

Chair and Group Chief Executive report
Like the world around us, the pace
of change at Vector is accelerating.
As a company, our work is at the
heart of two key challenges facing
us – investing to support Auckland’s
relentless growth, and providing energy
solutions which move us all towards an
affordable low-carbon world.
Our customers continue to adopt
new technologies in their homes,
businesses and leisure activities and,
increasingly, with the new electric
vehicles that they drive. They tell us
that they value energy services that
are safe and reliable as well as giving
them greater choice and control of
how, where and when they use energy.
Vector’s focus is to continue
leading the way in meeting these
challenges. As signalled in our last
two annual reports, significant
investment is required to make
us future-ready in our traditional
energy networks, as well as digital
and new energy solutions. While it is
our primary responsibility to enable
Auckland’s growth, we believe our
new energy solutions can benefit
everyone – not just Aucklanders.
April 2020 marks the start of the
next five-year regulatory period in
which the Commerce Commission
will reset limits for our electricity
network revenues and network
quality standards. A key focus of
our ongoing engagement with the
Commerce Commission is how
low interest and inflation rates will
crystallise challenges within the
existing regulatory model. We also
remain committed to meeting our
regulatory compliance requirements.
We strongly believe that regulatory
settings should not restrict our ability
to deliver Auckland growth or invest
in technology to future-proof our
network. Within the broader regulatory
regime, there are avenues for Vector
and the Commerce Commission
to work together to correct these
anomalies, and better align cashflows
with investment needs.
The Commission’s final reset decision
is due on 28 November 2019. As has
been signalled previously, we will be
reviewing our dividend policy once
we have the Commission’s decision.
For the past decade, we have
worked hard to build a strategic
asset portfolio which provides more
options for sustainable returns.
Alongside our regulated electricity
and gas businesses, we have continued
to grow our wider businesses,
particularly Vector PowerSmart,
Vector Advanced Metering Services
(AMS) and Vector Communications,
which, along with our Gas Trading
business, define our company as an
energy group with a growing domestic
and international footprint.
We are pleased to report solid progress
towards our vision of creating a new
energy future. Through investing in
the expansion and intelligence of our
networks and energy solutions, and by
providing greater choice and control
to our customers, we are enabling the
accelerating change around us.

Through investing
in the expansion
and intelligence of
our networks and
energy solutions, and
by providing greater
choice and control
to our customers,
we are enabling the
accelerating change
around us.”
Vector AR’19― Chair and Group Chief Executive report
― 12

our year
Steady earnings performance
The group delivered a steady earnings
performance for the year, with the
adjusted EBITDA of $485.8 million ahead
of FY18 and in the mid-point of the
guidance range provided over the year.
While our revenues continued to
benefit from strong connection growth
across our networks and the further
expansion of the metering business
in New Zealand and Australia, these
gains were partially offset by increased
maintenance expenditure to improve
electricity network reliability and the
underperformance of E-Co Products
Group (trading as HRV).
Group net profit after tax was
$84.0 million and includes a non-cash
impairment of $46.6 million in respect
of E-Co Products Group. The prior year’s
net profit of $149.8 million included
a one-off tax gain of $16.7 million.
If we exclude these, Group net profit
after tax of $130.6 million was down
slightly on the prior year.
As a result of the disappointing
performance of E-Co Products Group
leading to impairment, we have
new leadership in place and have
repositioned the business with our
other technology solutions, through
Vector PowerSmart.
More detailed information about our
financial performance is provided in
the Financial Review on pages 16 to 17.
Dividend
Our steady earnings performance
enabled the Board to declare a final
dividend of 8.25 cents per share, taking
the full year’s dividend to 16.50 cents,
up from 16.25 cents last year.
Lifting our customer delivery
Auckland’s relentless growth continues,
with 14,322 new electricity and gas
connections over the year, averaging
around 275 connections each week.
Combined with ever-changing customer
behaviour, this growth continues to
provide significant opportunities and,
at the same time, challenges.
Whether it be constructing new assets,
adding intelligence to our networks
and systems, or developing energy
solutions – we have long understood
that putting customers’ needs at the
centre is essential.
We invested a further $260.9 million –
or $5 million every week – in our networks
to make them smarter, more resilient
and to support Auckland’s growth. Our
strengthened focus on electricity network
reliability is part of our commitment to
meet network quality targets in the 2020
regulatory year.
During the year we successfully
integrated a software platform into our
network which has been co-developed
with technology firm mPrest. In the
long-term, this platform will support
our key objective of keeping energy
prices affordable for consumers, while
still meeting their expectations around
network reliability and enabling energy
choice. This exciting project milestone
has been made possible by the
increasing focus on digitisation of our
company over recent years.
Simon Mackenzie
GROUP CHIEF EXECUTIVE
Dame Alison Paterson
CHAIR
We have also continued to invest in
our wider portfolio of businesses which
remain central to providing the choice
and control our customers demand.
Further information on how our
businesses have delivered for customers
this year can be found on pages 26 to 31.
Technology leading change
Vector’s group of Technology businesses
is an integral part of our vision to create a
new energy future.
We are pleased with the ongoing growth
of our smart metering business Vector
AMS, with 1.56 million meters now
installed in homes and businesses across
New Zealand and Australia.
13 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

Group Chief Executive and Board report
(continued)
The Electricity Pricing Review process
has drawn attention to the critical
importance and value of consumer
data across the entire energy value
chain. We support the broad consensus
that unlocking access to smart meter
data across the sector will bring
customer service innovation, greater
retail competition and more efficient
network investment. We are optimistic
that this will occur and that these
opportunities can be realised for the
benefit of consumers.
Our commercial energy solutions
business, Vector PowerSmart, has
also had a successful year, enabling
customers across New Zealand
and the Pacific to adopt greater
energy independence with solar and
battery technology. As an example,
our Technology report on page 31
showcases a partnership between
Vector PowerSmart and the New
Zealand and Niuean governments to
install an integrated renewable energy
solution for the people of Niue.
We are excited by the substantial
changes in both our Vector PowerSmart
and Vector Communications technology
businesses this year. We welcomed
new leadership to both businesses and
have embedded new plans to drive
future growth.
Of course, our most visible example
of new, sustainable energy technology
is Vector Lights on Auckland Harbour
Bridge, which celebrated its first year
anniversary in January 2019. Vector
Lights is part of a 10-year partnership
between Vector and Auckland Council,
in collaboration with the NZ Transport
Agency, and already holds growing
cultural significance for the people
of Auckland. Since its launch, Vector
Lights has generated more energy
than it has used.
Making work an ever-safer place
Both the Board and management
place the highest priority on ensuring
that Vector has best-practice health
and safety practices. Every one of
our staff and contractors must be
able to come to work each morning in the
knowledge that they will be going home
again safely at the end of their work day.
We are delighted with the progress
made towards our safety goals this year.
We have significantly reduced both the
occurrence of injury incidents and their
severity, particularly in our contracting
workforce. While this progress is clearly
a company-wide effort, we acknowledge
the award-winning initiatives of our
OnGas Bottle Swap team at their new
Papakura facility.
the Future of Energy
is here
While the challenges facing our
networks – relentless urban growth
and electrification of transport – are not
unique to Vector, they are intensified
by the size of our region and the rate
of change. Timely investment is critical,
both in traditional energy network
infrastructure and in new technologies
which give our networks the intelligence
to meet these challenges.
Advancement towards an
intelligent electricity network
Traditional network assets will continue
to form the backbone of our network
for the foreseeable future. However, the
integration of new technologies and
digital solutions into the broader system
remains critical to efficient capital spend,
and to provide the flexibility needed to
better manage energy flows as demand
grows and changes.
We are continuing to prepare our
electricity business for the unabated
integration of EV chargers. In
light of the Government’s recently
announced clean vehicle ‘feebate’
scheme, it is almost certain New
Zealand’s 15,000-strong EV fleet – more
than 40% of which is on Auckland’s roads
– will expand considerably.
Our 2019 – 2029 Electricity Asset
Management Plan outlines how we will
ensure our network has the flexibility
to respond to a surge in EV uptake.
This includes a digitisation programme
to enable better asset management
and load optimisation, supported by
innovative outage management services.
This network platform will provide a
strong foundation to give consumers
more choice and control over their energy
needs. More information on our efforts to
enable the convergence of transport and
energy can be found on page 26.
The importance of having smarter
networks will only increase over time.
To this end, we will continue to work
with local and central government
and regulators to highlight the real
value of these platforms, in terms
of decarbonisation, customer choice
and affordability.
Funding efficient investment
The ability to invest at the right level
at the right time is critical. Vector’s
holistic strategy to fundamentally
change its energy system requires
significant, ongoing investment as
it supports Auckland’s growth while
investing in a step-change in technology
to future-proof its physical assets.
As previously mentioned, a key focus
of our ongoing engagement with the
Commerce Commission is how low
interest and inflation rates are crystallising
challenges within in the existing
regulatory model. Since 2013, significant
regulatory forecasting inaccuracies have
resulted in around $270 million of lost
revenue for Vector. We believe the case to
align regulatory settings with the sector’s
investment requirements has never been
stronger, and we are not alone in calling
for change. The Electricity Pricing Review
Vector AR’19― Group Chief Executive and Board report (continued)
― 14

panel’s recent analysis also highlights
the issue of persistent revenue under-
recovery for many electricity distributors.
This calls into question two critical
regulatory settings. The first is the
indexation of asset values, which are
heavily reliant on inflation forecasts.
These have been significantly over-
forecasted for a decade, resulting in
major revenue impacts to electricity
distributors, without correction. More
fundamentally, any indexation of asset
values is treated as non-cash revenue.
From a timing perspective, this reduces
the cashflow available to Vector to
support critical infrastructure investment
at times of high growth and changing
consumer behaviour. In our engagement
with the Commerce Commission, we
are advocating a switch to non-indexing
asset values. This change would be net
present value (NPV) neutral in respect
of what customers pay over the life
of the assets, and therefore offers a
strong case for regulatory indifference.
This precedent already exists for other
New Zealand regulated entities.
Secondly, the current ultra-low interest
rate environment underscores the
urgent need for the Commerce
Commission to amend the way it derives
the cost of debt in its Weighted Average
Cost of Capital (WACC) determinations.
Currently this is determined from a
narrow window around the time of
reset. International regulatory practice
typically calculates debt costs based on
a 10-year trailing average to better reflect
efficient debt book management. Vector
is advocating for New Zealand regulation
to align with international practice.
We remain committed to working openly
and collaboratively with the Commerce
Commission – both within the current
reset process and beyond – to explore all
options within the regulatory framework
to address these two challenges.
Regulatory and policy settings must be
fit for the future, with the key focus being
on enabling customers to benefit from
energy innovation.
our people
On behalf of the Board and management,
we would like to thank the entire team
at Vector for their considerable efforts
and contribution as we advance towards
a new energy future. Our refreshed
senior management team has provided
new energy and leadership across the
business, too.
For several years, all our employees
have had ongoing access to learning
and career development opportunities.
This is resulting in an increased number
of internal promotions, which is
particularly pleasing.
We are also pleased with the outcome
of the year’s pay equity review, where
we make role-by-role comparisons for
all employees to identify any gender pay
equity gaps. In the past year, the very
small number of anomalies identified
were addressed within the annual
remuneration review process. Our goal
is to continue to ensure we pay our
employees fairly based on the market
data for the role they hold, to ensure
there is no gender bias.
This year Vector became the first
New Zealand company to be awarded
the Accessibility Tick in recognition
of our efforts to make our company
more accessible and inclusive for
people with disabilities.
More information on how our Human
Resources initiatives are delivering for
our people can be found on pages 32 – 33.
our Board
Around the Board table we saw a
significant refresh during the year. Our
long-serving independent chair Michael
Stiassny stood down at the November
annual shareholders meeting. In addition,
Entrust trustee Michael Buczkowski
joined as a non-executive director,
taking over from former trustee James
Carmichael. We would like to express
our appreciation to both these former
directors for their valued contribution
to Vector during their respective tenures.
Earlier this year we welcomed new
independent directors Dame Paula
Rebstock and Bruce Turner, and the return
of former director Tony Carter. While all
are highly experienced directors, each
brings a different skillset and perspective,
and they are adding real value to Vector’s
governance. Further information about our
new Board, is provided on pages 36 to 37.
looking ahead
While acknowledging the key challenges
ahead of us, we remain committed to
Vector’s vision to create a new energy
future for New Zealanders.
We remain confident in our plan to rise
to the challenges of Auckland’s growth
and increasing electrification of transport.
We will continue to target investment
as efficiently as we can by supporting
traditional network assets with digital and
new energy solutions for the long-term
benefit of energy consumers. However,
changes to regulatory settings which
enable this investment will be critical.
We are pleased by our ongoing success
in the Australian metering market and
look forward to continued growth in
the coming year. Our revised approach
for Vector Communications and the
newly consolidated Vector PowerSmart
business are already gaining traction,
and we look forward to reporting on
progress and improved profitability.
Our Gas Trading business will continue
to adapt and seek new opportunities in
the challenging market conditions.
Following the final Default Price Path
3 (DDP3) decision later this year, Vector
will be able to provide guidance about
expected future dividend payments
and FY20 adjusted EBITDA, which may
be affected by the reset of our future
electricity revenues.
Dame Alison Paterson
Chair
Simon Mackenzie
Group Chief Executive

We are advocating
the benefits of bringing
forward cash flow to
support investment,
customer outcomes
and meet market
expectations regarding
fair financial returns.”
15 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

Chief Financial Officer report
Vector delivered a steady financial
performance for the year, recording
adjusted earnings before interest,
tax, depreciation and amortisation
(adjusted EBITDA) of $485.8 million.
This was up $15.7 million or 3.3%
on last year’s result and in the
middle of the company’s guidance
range of $480 million to $490 million.
The result includes an uplift due to
recent accounting changes.
1
Excluding
these changes, comparable adjusted
EBITDA was up $4.8 million or 1.0% on
the previous corresponding period.
Group net profit after tax was
$84.0 million and includes a non-cash
impairment of $46.6 million in respect
of E-Co Products Group. The prior year’s
net profit of $149.8 million included a
one-off tax gain of $16.7 million. If we
exclude these, Group net profit after
tax of $130.6 million was down slightly
on the prior year.
Segment adjusted EBITDA
Earnings for our Regulated Networks
were $367.0 million, up $8.4 million
1

(2.3%) against the prior year. Continued
Auckland residential connection growth
drove a $7.1 million increase in underlying
electricity revenue
2
, while gas revenue
was $1.7 million lower, mainly due to
the full year impact of the October 2017
3

gas price reset.
Total network maintenance
expenditure increased by $2.2 million,
largely due to new initiatives focused on
improving electricity network reliability
and SAIDI performance (refer pages
26 to 27). During the year, Vector and
the Commerce Commission agreed
to recommend to the Court a penalty
of $3.6 million in recognition of Vector’s
breaches of the electricity network
quality standards in 2015 and 2016.
Gas Trading earnings were $31.3 million,
down $3.1 million
1
against the prior year
total of $34.4 million, impacted by the
loss of a major customer in January 2019
and continued gas constraint supply
issues which drove natural gas volumes
down by 12.0%. This was partly offset
by increased LPG sales and improved
cost efficiencies at the new OnGas Bottle
Swap processing plant.
Adjusted EBITDA for Vector’s technology
segment grew $11.5 million
1
(8.8%) to
$142.0 million, as a result of continued
growth in smart meter deployments in
New Zealand and Australia.
Impairment
The improved performance of the
metering business was offset by the
underperformance of E-Co Products
Group (trading as HRV). This result was
partly driven by the ongoing market
challenges faced by HRV’s heat pump
and solar divisions, as well as the
investment made in a leadership change,
restructure and repositioning of the
business in the second half of the year.
The new management team and
CEO, put in place in September 2018,
have undertaken a strategic review,
and will focus on a new commercial
energy solutions approach under
the Vector PowerSmart brand. With
this new approach, we expect a return
to profitability.
In view of the above changes, the
Vector group has recognised a
non-cash impairment of $46.6 million.
Capital contributions
Capital contributions grew by 10.9% to
$79.3 million during the year, resulting
from continued connection growth and
significant infrastructure development
taking place across Auckland.
Cash flow
Operating cash flow was 10.7% lower
at $348.1 million. This decrease was
largely due to the payment of Loss
Rental Rebate surpluses directly
to electricity account holders. This
payment occurred in August/September
2018 and was for Loss Rental Rebates
accumulated over the course of the prior
year. In addition, the accumulation of
Loss Rental Rebates for FY19 have been
less than the prior year.
FINANCIAL HIGHLIGHTS
1. As at 1 July 2018, Vector adopted new accounting
standards for revenue from contracts and leases
(NZ IFRS 15 and 16) and changed the way we account
for gains/losses on disposal of fixed assets. For more
information and a breakdown of NZ IFRS changes
by segment see notes to the financial statements.
2. Net of capital contributions, loss rental rebates and
pass-throughs.
3. The gas distribution reset resulted in a 14% reduction
in prices from 1 October 2017.
$84.0M
Group Net Profit after tax
16.50
Full year dividend
CENTS PER
SHARE
$485.8M
Adjusted EBITDA
Vector AR’19― Chief Financial Officer report
― 16

Capital expenditure
Capital expenditure was $425.1 million,
$43.9 million (11.5%) higher than last
year. This increase reflected continued
investment in infrastructure to support
Auckland’s continued growth, higher
network replacement expenditure,
and increasing deployments of smart
meters as market demand continues
to accelerate in Australia. Network
investment projects included the
installation of new grid-scale batteries in
Warkworth and Snells Beach and a new
substation at Hobsonville Point.
Balance sheet
Our balance sheet remains healthy, with
gearing at 30 June 2019 at 52.2%, up
from 48.8% a year earlier, and 49.6% at
31 December 2018. Reflecting our strong
balance sheet, Vector continues to hold
a BBB credit rating by Standard & Poor’s
and successfully issued a $250 million
senior bond in May this year.
Dividend
Despite operating in a challenging
regulatory environment, Vector has
delivered 13 consecutive years of
dividend growth, as a result of its prudent
asset management and strategy to
diversify its revenue streams. This year,
shareholders will receive a fully imputed
final dividend of 8.25 cents per share,
taking the full-year dividend to 16.50
cents per share, up from 16.25 cents per
share in 2018. The final dividend will be
paid to investors who are on the register
at 9 September 2019 and distributed to
investors on 16 September 2019.
Jason Hollingworth
CHIEF FINANCIAL OFFICER

Vector has delivered
13 consecutive years
of dividend growth,
reflecting its prudent
asset management and
strategy to diversify its
revenue streams.”

DIVIDEND DECLARED
CENTS PER SHARE
$425.1M
Capital expenditure
$348.1M
Net operating cash flow
$250M
Successful senior bond issued
CAPITAL EXPENDITURE
$ MILLION

FYFYFYFYFY
.
.
.
.
.
17 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

our journey to a
new energy future
And to meet New
Zealand’s net zero
carbon goals, we
need an electrified
transport system.
Auckland’s growth
is unprecedented.
Since 2013,
Auckland’s
population has
grown by the
size of Tauranga
and Whangarei’s
populations
combined!
In this time,
we’ve spent nearly
$1.3 billion to
strengthen network
integrity and support
Auckland’s growth,
and added 59,222
new customers.
We’ve also added
1,019km of network
– enough to stretch
in a direct line
from Auckland to
Queenstown!
$1.6 BILLION for Watercare
(next 3 years)
$28+ BILLION Auckland Council
capital plans for infrastructure
(over coming decade)
$82.5 BILLION Auckland
Council capital expenditure
(next 30 years)
We’re not the only
ones managing
the challenges and
opportunities of
growth. In recent
years, significant
infrastructure projects
have been announced,
including:
WHANGAREI POPULATION
TAURANGA POPULATION
AUCKLAND GROWTH
And it’s not stopping.
In the next 10 years
we’ll see:
~300,000
more people –
population of 2 million!
117,000
new energy
network connections
Up to
250,000
more vehicles on our
roads (based on current
ownership rates)
AUCKLAND
QUEENSTOWN
1
2
3
4
5
Vector AR’19― our journey to a new energy future
― 18

1. Vector estimates adding a 22kW ‘fast’ charger to a home
equates to adding approximately 8.8 homes to the grid.
MORE THAN 40% OF EVs
are on Auckland roads
The approach favoured by the ICCC*
to reduce emissions from the energy
sector includes REPLACING ~2
MILLION VEHICLES with EVs by 2035
A FAST
1
EV CHARGER can add the
equivalent demand of 8.8 houses
to the grid
Growth and EV
uptake puts pressure
on infrastructure.
MANAGING MULTI-
DIRECTIONAL POWER flows
with network connected energy
resources and digital platforms
FLATTENING PEAK DEMAND
with network batteries
TARGETING ASSET
MANAGEMENT through
better data
PUTTING MORE EV CHARGERS
ACROSS AUCKLAND to fuel EVs
and track usage trends
Already we are:
We are trialing
new things.
POWER DOWN TRIAL
to see if customer incentives
can reduce peak loads
VEHICLE TO HOME (V2H) TRIAL
to see if V2H can control loads and boost
customer independence
DISTRIBUTED ENERGY RESOURCE
MANAGEMENT (DERMS) ongoing
platform development
NEW CUSTOMER CHANNELS (BOTS)
New technology can
shift our network
peaks and keep
energy affordable.
It’s a sector-wide challenge to
transition New Zealand to the
future of energy. We have a
shared responsibility to:
ENABLE ACCELERATING EV
UPTAKE and the electrification
of public transport
ENERGISE A NET ZERO
CARBON WORLD
EMPOWER CUSTOMERS with
choice around their energy needs
DELIVER ENERGY through safe,
resilient and secure networks
PROVIDE
AFFORDABLE ENERGY
IMPLEMENT NEW
TECHNOLOGY to the benefit
of all customers
Vector’s ambition is
to create a new energy
future by:
Empowering customers
with choice to better
manage their energy needs
Making our network more
intelligent to improve
management of peak loads
Making data-driven
decisions to invest more
cost-effectively
Enabling Auckland growth
through asset relocations
and new connections
Deepening our
understanding of
customer needs
Integrate digital assets
and new energy solutions
to benefit consumers
* Independent Climate Change Committee.
6
7
8
9
10
19 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

our material issues
MAINTAINING VALUE
CREATING VALUE
New tech
integration
Customer
service
expectations
Disruptive
business
models
Digital
transformation
Cyber
threats
Customer
choice
Business
conduct
and ethics
Vulnerable
customers
Workplace
H&S
Auckland
hyper growth
Extreme
weather
events
Security
of energy
supply
Vegetation
management
Policy and
regulatory
change
Social
equity
Energy
affordability
Pace of
technological
change
Organisational
knowledge
Public
demands on
sustainability
SOCIAL
RESPONSIBILITY
RELIABILITY
RESILIENCE
EVOLVING
ENERGY SYSTEM
ELECTRIFICATION
OF TRANSPORT
PUBLIC &
WORKER SAFETY
CORE ISSUES
CONTRIBUTING ISSUES
our material issues
Vector monitors the changing business landscape,
using global and national trends to inform and
determine key issues impacting our operating
environment, and to support the identification
of emerging risks and opportunities.
Vector AR’19― our material issues
― 20

Our stakeholders have
told us about the matters
they consider to be
material to our business
Customers
‒Safe, reliable, resilient and affordable
energy networks
‒Real-time updates about outages
‒Choice and control over their energy
needs
Employees
‒Safe and rewarding workplace that
gives them opportunities to grow and
develop
‒Ability to sufficiently support
themselves, their families and
communities
Shareholders
‒Stable and sustainable returns
‒Confidence in Vector’s long term
strategy
Central government
‒Safe, reliable, resilient and affordable
energy networks
‒Aligned approach to achieving policy
objectives
‒Enabling urban growth, energy
affordability, safety and equality
‒Enabling the transition to a low
carbon economy
Local government
‒Safe, reliable, resilient and affordable
energy networks
‒Informed about issues and
opportunities
‒Open partnerships and opportunities
for joint infrastructure projects
Regulators
‒Delivering a safe, high-quality
network for customers at a fair price
Suppliers
‒Opportunities to collaborate, innovate
and cooperate
‒Fair and constructive engagement
Iwi
‒Deeper understanding of Māori
culture and values
‒Opportunity to work together on
matters of mutual interest
Community
‒Choice and control over their energy
needs
‒Safety
‒Access to the benefits of an evolving
intelligent energy system
Energy industry
‒Fair and competitive energy system
that enables positive outcomes for
consumers and the environment
Media
‒Informed commentary on issues
impacting the energy industry
‒Useful and timely outage updates for
their audiences
21 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

― 22

operations, leadership
and sustainable business
23 ―

safety always
Vector is committed to safety in
everything we do. The only thing
we care about more than keeping the
lights on is keeping our community
and our people safe. Vector’s aim is to
manage the risks inherent in working
and living around electricity, gas and
other technology systems.
Improved safety at work
We have made strong progress
towards our safety goals this year,
with a significant reduction in both
the occurrence of injury incidents
and their severity.
Our focus on managing safety
centres around the proactive steps
we can take to avoid incidents. This
includes training to ensure our workers
have the right skills to do their jobs
safely, audits and inspections to check
we are delivering the right outcomes,
and leadership engagement to
demonstrate commitment from the
highest levels of the organisation.
To track how we are progressing,
Vector measures its Lost Time Injury
Frequency Rate (LTIFR) and Total
Recordable Injury Frequency Rate
(TRIFR). This year we are pleased to
report a 35% improvement in our
LTIFR compared with FY18, and
a 40% improvement in our TRIFR
compared with FY18. Both LTIFR
and TRIFR include our own directly
employed workforce as well as our
contracting workforce. A large portion
of the TRIFR improvements have come
from our contracting workforce (47%
improvement compared with FY18).
Our severity rate (number of working
days lost due to injury) has improved
by 83% compared with FY18. This shows
we are not only reducing both the
occurrence of injury incidents but also
the severity in nature of those incidents.
Supporting wellness
Our focus on promoting employee
wellness continued throughout this
year with initiatives stemming from
feedback in our annual Wellbeing 360
survey and other initiatives. Highlights
included our Blue September roadshows
to raise awareness of prostate and
testicular cancer, and where more than
100 male workers underwent a prostate
cancer screening test.
To promote healthier eating, we
delivered fruit trees and established
vegetable gardens at our OnGas Bottle
Swap plant in Papakura, providing
ready access to a variety of fresh fruit
and vegetables. Feedback has been
encouraging, and in the coming year
we intend to repeat this initiative at
other Vector sites.
Vector also welcomed back MINDsense
founder Michael Duff, who ran a series of
sessions with more than 100 employees
participating each time. These sessions
help our people to build a more positive
self-view by exploring positive ways to
direct thoughts, actions and outcomes.
Safer communities
Vector is committed to educating
communities about the importance
of keeping safe around electricity and
other energy infrastructure.
Our award-winning Stay Safe Around
Electricity schools programme is offered
free of charge to schools and links
directly to the New Zealand Curriculum.
The programme runs in Years 3 to 8.
In the last year, we visited 28 schools
and engaged with 5,070 children.
Vector continues to support
‘beforeUdig’, an online service giving
anyone undertaking excavation works
access to information on the location
of cables, pipes and other utility assets
in and around any proposed dig site.
This helps to protect people and valuable
assets during these works. In 2018, more
than 172,000 enquiries were managed
through the site.
5,070
students attended Vector’s Stay Safe
Around Electricity schools programme
90
Health and safety leadership
engagements undertaken
OnGas Bottle Swap Plant won Health
and Safety Initiative of the Year at the 2018
Deloitte Energy Excellence Awards
HEALTH &
SAFET Y
INITIATIVE
OF THE
YEAR
4801
certification maintained for
New Zealand and Australian businesses,
7901 certificates continued
400
employees have participated in ‘fatigue
awareness’ roadshows over the past
two years
Vector AR’19― safety always
― 24

TOTAL RECORDABLE INJURY
FREQUENCY RATE
Number of recordable cases per million
hours worked including contractors

TRIFR – COMBINED

FYFYFYFYFY
.
..
.
.
LOST-TIME INJURY
FREQUENCY RATE
Number of lost time injury incidents per
million hours worked including contractors

LTIFR – COMBINED

FYFYFYFYFY
.
.
..
.
35%
reduction in our LTIFR
compared with FY18
40%
reduction in our TRIFR
compared with FY18
83%
reduction in severity rate (number of
working days lost due to injury) compared
with FY18
Helping our people manage fatigue
We know fatigue is a key underlying contributor to many of our critical health
and safety risks. With many of our people holding safety-critical roles, we want
to ensure we are managing the risk of fatigue well. This year, we have adopted
new technology to help.
Building on our safety awareness roadshows, which included fatigue
management strategies, we are trialling the effectiveness of the Readiband
device. Similar to a Fitbit, the device is worn on the wrist to record sleep data,
and is helping to build a fatigue risk profile so we can proactively identify and
manage fatigue issues.
Our OnGas business is also trialling the Guardian Seeing Eye Machine
camera, which is installed in vehicles to detect eye movement, including
‘micro-sleeps’ and distractions. An alert is sent to the driver if the camera picks
up any concerns. Depending on the effectiveness of this trial, we may install
the cameras in the company fleet.
6,070
HSE training hours completed
25 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

regulated networks
Our Regulated Networks, which
include the electricity and gas
distribution networks, provide the
strong foundation for us to build
a new energy future for Auckland.
Maintaining the integrity of these
networks is critical as we continue
adapting to the disruptive pressures
of urban growth, our changing climate,
advances in new energy technology
and ever-evolving customer needs.
In FY19 we invested $260.9 million
to improve the safety, reliability and
resilience of our network and facilitate
Auckland growth.
Adjusted EBITDA was $367.0 million,
up $8.4 million
1
on last year, largely
driven by higher electricity revenue
from increased connections due to
consistently high residential growth
in Auckland. This was partially offset
by increased maintenance expenditure.
Volumes and consumption trends
Volumes transported across the
electricity network fell 0.4% to
8,410 GWh, largely due to warmer
average temperatures in May and
June 2019 compared with the
corresponding period last year.
Electricity consumption per household
appears to have stabilised after more
than a decade of decline. Auckland
gas distribution volumes fell 0.7% to
14.4 PJ from 14.5 PJ in the prior year.
Enabling urban growth
In the last year, we added another 11,000
new electricity connections and 3,322
gas connections to our networks. Total
electricity connections stood at 571,125,
1.4% higher than a year ago, and total gas
connections were 111,642, up 2.2% from
109,229 in the prior year.
Vector plays a critical role in enabling
new connections and asset relocation
for infrastructure development, including
roads and wastewater systems, housing
and public transport.
During the year, we worked on 17
major asset relocation projects to
enable major Auckland infrastructure
upgrades. For example, in the City Rail
Link project assets were relocated to
make way for tunnelling. With no sign
of a slowdown, we are working with our
regulator to ensure these projects can
be appropriately funded in the future.
Convergence of transport
and energy
In the past year, we’ve seen
increasing Government policy focus
on the accelerated electrification
of the transport sector, to help
New Zealand achieve its zero carbon
goals. Vector has been proactively
preparing Auckland for the impacts
that the rise of electric vehicles (EVs) will
have on our energy systems. With some
fast residential EV chargers adding the
equivalent of 8.8 new houses to the
electricity grid, it is imperative that we
understand future network impacts.
Over the past year Vector’s 29 EV
charging stations installed around the
city provided more than 96,000 free
charging sessions and 800 MWh of
electricity to EV users. The chargers
are providing us with valuable insights
about customer charging behaviour
for future network planning.
Improving reliability for
our customers
In recent years, we have faced a
range of challenges which have resulted
in the increased frequency and duration
of outages on our network. We remain
committed to meeting our regulatory
compliance requirements, and this year
we have strengthened our focus on
improving electricity network reliability.
An example is a changed approach to
the significantly increasing travel times,
which remain an ongoing challenge
for our crews.
$260.9M
invested in our Regulated Networks
2
problem trees removed to protect
overhead power lines and 31,000 native
trees planted through our Urban Forest
initiative
11,383
1. For the breakdown of NZ IFRS changes by segment, see notes to the financial statements.
2. Gross regulated capital expenditure.
400+
network connected energy resources
14,322
new electricity and gas connections
Vector AR’19― regulated networks
― 26

The Automobile Association recently
reported that the average Auckland
motorway commuter lost 85 hours to
congestion in 2018. In an effort to reduce
the travel required to assess and repair
faults, we have significantly strengthened
both the number of fault crews and the
amount of network equipment stored at
strategic locations around the city.
Under its agreement with Entrust, Vector
has invested in more standby mobile
generation, which has already improved
our ability to restore power quickly to
customers while our crews work to repair
the faults.
We are also stepping up our community
engagement to better manage
problematic trees surrounding power
lines, and have adopted aerial imaging
and data analytics to identify problem
vegetation more accurately. In tandem,
we continue to collaborate with industry
to reform tree regulations that constrain
our ability to trim and cut vegetation.
The Government’s long-awaited review
of tree regulations is currently underway
and is expected to provide greater
clarity of tree owners’ accountability
where trees threaten wider community
electricity resilience.
Turning EVs into power sources
Our development of a Vehicle to Home (V2H) solution for New Zealand continues
at pace, mostly thanks to an Energy Efficiency and Conservation Authority (EECA)
grant to explore the customer and network benefits of V2H technology. We
currently have customers in Piha trialling V2H systems which can effectively turn
EVs into mobile batteries. The trial will help determine how this technology would
help ease expensive peak demand on our network as well as providing a backup
supply for customers during short-term outages.
This research is important because, as EV uptake grows, so will the demand for
electricity, especially when people want to recharge their EVs at peak times.
While we can always keep building more network infrastructure to meet demand
peaks, this comes at a very high cost for consumers. Investigating the potential of
new technology like V2H allows us to consider alternatives which are more fit-for-
purpose and affordable.
Vector DERMS platform
In 2018, Vector successfully introduced the first stage of a full company
implementation of our Distributed Energy Resources Management System,
(DERMS), taking the management of our core assets into the cloud. DERMS is a
highly intelligent software system, able to connect distributed energy assets like
solar panels and storage battery connections to our traditional infrastructure and
management systems. Over the past year, more than 400 customer and network
connected resources have been integrated with the network using the DERMS
platform to provide visibility and manage the complex and real-time interactions
between the network and the ever-increasing number of distributed energy assets.
In addition, DERMS is providing an unmatched level of security and reliability to our
energy management, including predictions around loading on critical infrastructure
assets such as power transformers, and supports improved response to unexpected
events, including extreme weather. This has given us confidence that we can scale
it up to more than half a million homes and businesses within the next decade. We
expect this system to be a high-value strategic asset for many years to come.
27 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

Warkworth and Snells Beach battery systems
Auckland Council estimates that Auckland will have two million residents by 2028.
It’s therefore no surprise we’re experiencing increasing customer density in the
established parts of the network and new demand at the fringes. As once sparsely
populated rural areas like Warkworth and Snells Beach grow, the associated increase
in electricity demand is putting real pressure on local networks.
Last year, Vector reinforced electricity supply to Warkworth and Snells Beach by
installing large battery systems. They work by drawing and storing electricity during
periods when the community is using little power, and releasing the electricity when
needed to support the local network during high-use periods. This approach allows
us to cater for localised growth in the near term while considering how the needs
of the area should be met in the long term.
An added benefit is flexibility – should a battery system no longer be required,
we can move it to a new location.
Mixing traditional assets with
new technology
Vector recently published its updated
Asset Management Plan (AMP), setting
out how we intend to deliver a resilient,
reliable electricity network to Auckland
over the next 10 years – a period in which
the region’s population is expected to
exceed two million people.
In our AMP, a smart mix of traditional
and digital assets underpins our drive
to provide safe, reliable and affordable
energy for a continually growing
customer base. We have a digitisation
programme underway to enable
better asset management and load
optimisation, and supporting innovative
outage management services. This
platform is the foundation of a new
customer proposition that will give
consumers more choice and control
over their energy needs.
Based on our experience to date, we
know that further investment in digital
technology will significantly enhance
the capabilities of our physical networks,
as well as our ability to quickly adapt to
changing demand.
In the new five-year regulatory period
beginning next April, these types of
investment decisions will increasingly
challenge the current regulatory
settings, which have been built
from historical spending categories.
Vector is working with the Commerce
Commission and the Government to
ensure regulatory settings do not limit
our ability to invest in new technology
for the long term benefit of consumers
as Auckland grows.
Vector AR’19― regulated networks (continued)
― 28

gas trading
Natural Gas faced a challenging year
on the supply side, with multiple
planned and unplanned outages of
major gas fields. These outages led
to significant supply disruption for
some customers and contributed
to a 9.0% fall in segment earnings
for Gas Trading. Adjusted EBITDA for
Gas Trading was down to $31.3 million
1

from $34.4 million a year earlier.
Our Gas Trading business provides
energy choice for consumers in their
homes and businesses, and this year
we saw further evidence of its enduring
popularity. The LPG business delivered
another strong performance, with
cylinder LPG operations seeing increased
volumes, while bulk LPG supplies were
flat. Gas liquid sales were up 1.9% to
79,170 tonnes. Bottle Swap 9kg cylinder
volumes were up 0.8% to 658,159 swaps
and sales from 652,859 a year earlier.
Liquigas tolling volumes were down
17.1% to 152,206 tonnes, mainly due
to lack of exports over the period.
On the supply side, we welcomed
an 8.5% increase in field production
and throughput from our Kapuni
gas treatment plant this year, which
contributed to the overall result.
Delivering in a challenging
wholesale environment
Total natural gas supply in the period
was 16.1 PJ, down 12.0% on last
year. The gas field outages led to
unprecedented market volatility as gas-
fired generation remains important for
the security of New Zealand’s electricity
supply. Shortages of gas have a flow-
on impact on retail electricity bills,
particularly in periods of low hydro lake
levels or high demand in winter.
On behalf of our customers, Vector
continues to advocate for greater
transparency around upstream outages
to enable better planning. In the coming
year, we hope to see progress towards
regulatory changes that will bring the
industry more transparency, efficiency and
confidence in the wholesale gas sector.
Lifting standards in residential
and industrial gas use
Our OnGas Bottle Swap Plant won the
‘Health and Safety Initiative of the Year’
at the 2018 Deloitte Energy Excellence
Awards in recognition of its leading plant
and process innovations. The award
marks the culmination of five years of
careful design to address the wellness
of its operators, including gas recapture
technologies, on-site breakfasts and
adoption of water-based paints.
Innovation continued over the year with
the introduction of new shot-blasting
equipment that adopts automated
machine loading functionality, increasing
the Bottle Swap Plant’s capacity for
gas recapture. This has dual benefits of
reducing waste and limiting emissions.
We have also introduced health
and safety training material for our
commercial customers and partners,
which includes a training video specific
to our forklift cylinder exchange and
on-site forklift cylinder filling activities.
Our bulk-use transport partners are also
receiving the benefit of our new dedicated
virtual-reality simulation experience. This
assists drivers to run through common
procedures in a safe environment.
8.5%
increase in field production and through-
put at Kapuni treatment plant
1.9%
lift in gas liquid sales to 79,170 tonnes
Helping shape the future
Our Gas Trading business performs
best when we put customer needs,
innovation and great service at the
centre, and this will remain our approach
as we work to achieve continued
growth in FY20. A key area of focus will
be to further leverage Vector group’s
leading approach to risk, safety and
sustainability to add value to customers
in an increasingly competitive market.
This includes continued efforts to share
safety and hazard mitigation expertise
with customers to help them advance
towards their own compliance targets.
1. For the breakdown of NZ IFRS changes by segment,
see notes to the financial statements.
Vector AR’19― gas trading
29 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

technology
10.8%
growth in smart meter fleet
600kW
renewable energy system installed
in Niue
1.56M
smart meters in New Zealand
and Australia
These solutions range from smart meters
which give households better visibility
and control over their energy use, to the
clean energy microgrids installed by
Vector PowerSmart, which are helping
small Pacific nations to reduce their
dependence on imported fossil fuels.
Adjusted EBITDA for the Technology
segment was $142.0 million
1
, up $11.5
million or 8.8% from a year earlier, with
gains from the smart meter roll-out
offset by a disappointing result from
E-Co Products Group.
Metering
Our smart metering business, Vector
Advanced Metering Services (Vector
AMS), continues to stand out as a
market leader, helping retailers to better
manage their business and respond to
their customers’ needs.
We are pleased to report continued
strong demand for our smart meters
in homes and businesses across
New Zealand and Australia. In the past
year, our smart meter fleet grew by
10.8% to 1.56 million, which includes
more than 160,000 smart meters in
Australia. With this accelerating pace
of deployment, we are now averaging
nearly 9,000 installations in Australia per
month. Back home, growth also remains
strong, with almost 57,000 meters
installed in New Zealand this year. An
example of our innovation this year is
the halving of delivery time for meter
data to customers, boosting quality and
timeliness of our service delivery.
In September 2018, Vector AMS
acquired Vircom, which is a nationwide
provider of field services for residential
and commercial smart metering
customers. Vircom has enhanced our
existing services, enabling us to provide
a full-service nationwide metering
capability. It is now integrated into
our core metering operations.
Communications
Vector Communications delivered
a steady performance over the year.
Customer dependency on high-speed
telecommunication services continues
to increase across the board and we
recognise an opportunity for Vector
Communications to further capitalise on
its fibre assets in the wholesale market.
New energy solutions
Over the past year, our new energy
solutions businesses have experienced
tremendous challenge and change.
New Vector PowerSmart CEO Colin
Daly started in September 2018 and
immediately set about reviewing
operations and refreshing the group’s
vision and direction.
Critical to the new direction has
been the consolidation of the
various businesses, rationalisation
of products and services, and
distillation of brands to a focused,
concentrated offer to market.
The E-Co Products Group will operate
solely as the well-known brand HRV.
HRV will focus on ventilation, heating
and air-conditioning and will be
regionally based to stay close to its
customers and improve both service
and experience.
HRV has joined with Vector’s
commercial solar and battery
storage company, PowerSmart,
to form Vector PowerSmart. With
some of Vector’s top product and
marketing talent also joining the
Vector PowerSmart business, focus
will be placed on the development
and delivery of technologically
advanced energy solutions.
These solutions promise to be
compelling to customers, commercially
focused and meeting the needs of
rapidly evolving markets.
With the changes outlined above
now in place, we are confident that
Vector PowerSmart has the right
structure, team and approach to
succeed. Accordingly, we expect an
improved performance in FY20 with the
HRV business returning to profitability.
1. For the breakdown of NZ IFRS changes by segment, see notes to the financial statements.
Our Technology business unit
encompasses a range of energy
expertise, products and solutions that
are crucial to our vision of creating a
new energy future for our customers.
Vector AR’19― technology
― 30

Vector PowerSmart
supporting Niue’s new
energy future
The past decade has seen massive
development and investment in
renewable energy, centred around solar
electricity and large-scale batteries.
With the South Pacific region at the
forefront of the effects of global warming
due to rising sea levels, the need to
reduce carbon emissions in the Pacific
Islands is very real. This has led most
South Pacific countries to start investing
in renewable energy and introducing
renewable energy targets.
The situation in Niue
The small island nation of Niue, like
many other countries in the South
Pacific, has relied on diesel generators
for their electricity for decades. Niue has
historically been supplied by four 500kVA
diesel generators which distribute the
electricity via two networks across the
island. Over the past decade, this supply
has been supported by solar power
arrays, which has brought mixed results
due to the challenges of balancing
the demands of Niue’s electricity grid
with the solar and diesel-generated
electricity. This resulted in curtailing the
solar generation to try and maintain grid
stability, which meant that not all solar
electricity produced on the island was
able to be used.
Vector PowerSmart’s solution
Working with Ministry of Foreign
Affairs and Trade (MFAT) and
the Niuean Government, Vector
PowerSmart designed and built a
sustainable generation plant and
energy management system for the
island, using new solar and battery
technology. The 600kW of solar
technology has produced 320,000kWh
of electricity in the six months since
1 January 2019. Diesel consumption
has reduced alongside CO
2
emissions.
Practically speaking, this means
on sunny days the diesel generators
of Niue are often switched off for up
to 12 hours. The solar system is connected
to a 3MWh lithium ion battery energy
storage solution (BESS) connected
to the grid at Niue’s power station.
Vector PowerSmart’s state-of-the-art
energy management system controls
the flow of electricity from the diesel
generators, solar arrays (old and new)
and the BESS to maximise Niue’s use
of renewable solar electricity.
A new energy future for Niue
In 2015 the government of Niue
released its Strategic Energy Roadmap,
which stated a target of having 80% of
electricity produced from renewables
by 2025. Vector PowerSmart’s newly
implemented energy technology will
go a long way to helping Niue achieve
this goal by increasing the island’s use
of renewable energy.
This project was implemented in
partnership with the Government
of Niue and MFAT.
31 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

Our people are a key ingredient in
how Vector ensures its customers
enjoy affordable access to energy,
when and where they need it.
Over the past year, we have
continued to invest in engaging
and developing our own people,
as well as helping to broaden the
pool of future talent. We are pleased
to report solid progress, as evidenced
by increased internal promotions,
a significant lift in external applications
from all parts of the community
and the continued strengthening
of Vector’s reputation as an
employer of choice.
Developing from within
Vector delivers a broad range
of development programmes, aimed
at the continued strengthening of
organisational capability and helping
our people reach their potential.
During the year, more than 15,750
hours of learning and development
were provided across the organisation.
Over the past three years, more
than 190 people have participated
in our core leadership programmes
and, pleasingly, 32% have received
internal promotions. Notably, 35% of
participants from the 2018 Women
in Leadership cohort have received
internal promotions.
Such visibility for career progression
has encouraged more people to
participate this year, with nearly
300 people attending programmes
focused on mentoring, career
and personal development, and
leadership development. We
celebrated the graduation of the
third cohort of Women in Leadership,
as well as over 50 new or emerging
leaders completing the Foundations
of Leadership programme.
The future of work
For the first time, we are fast
approaching a workforce comprising
four different generations, and it is
evident that the traditional cookie-cutter
approach to employment and conditions
is no longer fit for purpose. While Vector
has always offered flexibility in roles and
conditions to meet changing employee
needs, we have commenced a wider
review of the entire employee experience
and HR model this year.
The review began with a series of
workshops, focused on understanding what
is important to our people. Engagement
was high and Vector’s supportive culture
was positively viewed, as were our flexible
working conditions and our collaborative
approach to problem solving.
Pay and conditions
With key skill shortages remaining a fact
of life, Vector has continued to review
and refine its employment conditions
to ensure it remains an employer of
choice. The introduction of enhanced
parental leave conditions and greater job
flexibility has been positively received,
both in the market and internally.
Following our first pay equity audit in
2017, we have continued to focus on
reducing the equity gap by ensuring
similar roles in the organisation are in line
with market data and internal relativity.
In the past year, the very small number
of anomalies identified were addressed
within the annual remuneration review
process. Our goal is to continue to ensure
we fairly pay our employees based on
the market data for the role they hold
to ensure there is no gender bias.
Increasing the talent pool
Evidence shows that a truly customer-
centric organisation needs a workforce
aligned with its customer base to drive
ideas, improvements and innovation
across the business. This is a key goal
for Vector and we are slowly and steadily
making progress towards having a
community-representative workforce,
in respect of gender, ethnicity and age.
While all employee appointments remain
uncompromisingly merit based, Vector is
also committed to enhancing the pool of
people applying for roles. Specifically, we
are investing to promote opportunities
to parts of the community that would
not normally participate in our business
or in science, technology engineering
and manufacturing (STEM) roles. We
are challenging ourselves to rethink the
attributes required for roles too, and to
address unconscious bias which may
have developed over time.
Vector has continued to deliver external
programmes focused on developing
a larger talent pool in the traditionally
under-represented areas of Pasifika and
women in STEM roles. These include the
Growing Pasifika Niu Leaders programme
and Women in Leadership. This year has
also seen a strong focus on developing
our youth pipeline and our future talent,
with Vector actively participating in
external career programmes including
our people
190PEOPLE
have participated in our core leadership
programmes in the past three years, of
these 32% receiving internal promotions
15,750
HOURS
of learning and development provided
across Vector group this year
35%
of participants from the 2018 Women
in Leadership cohort have received
internal promotions
VECTOR EMPLOYEES BY GENDER
VECTOR GENDER BREAKDOWNMALE 2019FEMALE 2019DIVERSE 2019MALE 2018FEMALE 2018
Directors5 (62.5%)3 (37.5%)5 (62.5%)3 (37.5%)
Executive team5 (71.4%)2 (28.6%)6 (85.7%)1 (14.3%)
Direct reports to the executive team29 (78.4%)8 (21.6%)25 (65.8%)13 (34.2%)
Across Vector group635 (65.5%)334 (34.4%)1 (0.1%)563 (67.5%)271 (32.5%)
Data in all charts and tables on these pages 32 and 33 exclude statistics from subsidiaries
PowerSmart and E-Co Products Group.
Vector AR’19― our people
― 32

GirlBoss, Engineering NZ Careers Evening,
Shadow Tech and Shadow a Leader.
We have also provided our under-30-
year-old employees with development
opportunities such as the RYLA and
Smartseeds leadership programmes
and the sponsorship of the internal
GenR8 team to work on cross-functional
projects. Further information about
these programmes is available on the
company’s website.
We are pleasingly seeing the positive
impacts of these initiatives in the
number of job applications, as well as
the proportion of women in STEM roles
in our digital business increasing from
25% to 41% since 2018.
Progress towards a more diverse
workforce has been slow and steady,
but we are satisfied it is heading in the
right direction. In the past four years,
we have seen a gender composition
shift, with the number of female
employees increasing from 29.5% to
34.4%. Age-wise, our employees aged
20 to 39 years have increased 7.8% and
those 40-years-old+ have decreased by
7.5%. Our ethnicity profile has moved
only slightly, with Māori and Pasifika
representation up only 1 to 2%.
Supporting all employees
Vector’s proud reputation as a diverse
and inclusive organisation was further
enhanced in 2018 when it became
New Zealand’s first business to gain
the Accessibility Tick. The accreditation
followed a review of our policies,
practices and working environment
for people with disabilities, including
mental health. A 12-month action plan
is now underway to further improve
the accessibility and support for people
with disabilities within the company.
Vector’s leadership in employee
diversity and inclusion has been
recognised externally. We were a finalist
at the Rainbow Excellence Awards
(Leadership category) and a finalist in
two categories at the Diversity Works
Awards (Empowerment – Women
in Leadership; and Diversability –
Accessibility programme).
4.9%
rise in female employees, up from 29.5%
to 34.4% in four years
first New Zealand business to gain the
Accessibility Tick
.%
.%
.%
.%
.%
.%
EMPLOYEES BY AGE

UNDER 20

20-29

30-39

40-49

50-59

60+
.%
.%
.%
.%
.%
.%
.%
.%
EMPLOYEES BY ETHNICITY

ASIAN

EUROPEAN

MELAA*

NZ EUROPEAN

NZ MĀORI

OTHER

PASIFIKA

UNKNOWN
.%
.%
.%
EMPLOYEES BY GENDER

FEMALE

MALE

DIVERSE
EMPLOYEES BY AGE AND GENDER
AgeMALEFEMALEDIVERSETOTAL
UNDER 20224
20-24172542
25-2958411100
30-349345138
35-398849137
40-448444128
45-497754131
50-548239121
55-59642185
60+701484
Total6353341970
* Middle Eastern, Latin American and African.
33 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

shared services (continued)
Our relationship to the environment is
becoming increasingly important as we
respond to the changing climate and
the challenges posed by pressures on
resources and biodiversity.
Improving understanding through
scenario analysis and modelling
We are continuing to improve our
understanding of the financial and
operational implications of climate
change on the company. Scenario
analysis and modelling on both the
physical and economic impacts of
climate change is being used to inform
key decision-making and planning
across the business. As an example,
our updated AMP has integrated
projections of increased high winds
and the expected demand-side
changes for electricity that were
identified in the scenario analysis.
Our adaptation to the physical impacts
of climate change is part of a broader
resilience focus. This includes increased
battery storage on the network; trials
with Vehicle to Home (V2H) technology;
aerial bundled conductors and an
increase in vegetation management,
recognising the increasing role that
changing weather has on the network.
Vector has invested in fault prediction
capability that analyses weather,
vegetation and network information
to predict likely network impacts from
a weather event.
Working together on climate
change issues
We have been proactive in engaging
with stakeholders on climate change.
Over the past year, Vector shared its
learnings on how to assess the physical
impacts of climate change with a
range of organisations, including in
the energy sector. We have also been
engaging with suppliers on greenhouse
gas (GHG) emissions. Measuring and
reducing emissions is a key part of our
soon to be released supplier code of
conduct and through the development
of this, conversations have been had
with a number of key suppliers.
Vector continues to work with other
corporates to create the transformation
required to address climate change.
We are active in both the Climate
Leaders Coalition (CLC) and the recently
formed Aotearoa Circle. Climate-X, an
innovation platform funded by the CLC
and developed with support from Vector
and other CLC businesses, was launched
in 2018 and the first sprint event took
place in July 2019.
At a city level, Vector has been involved
in the development of Auckland’s
climate action plan, participating in
workshops and the Climate Symposium.
We are co-leading one of the flagship
actions to explore how ultra-low
carbon and resilient energy solutions
can be delivered at scale in Auckland.
This action involves collaboration with
other energy businesses as well as
housing developers.
Our progress on climate action was
acknowledged this year, with an award
from the Carbon Disclosure Project
(CDP) for the best first-time performance
across Australia and New Zealand. CDP
reporting requirements are based on the
Task Force on Climate related Financial
Disclosures (TCFD). The process of
preparing a response has highlighted
to the business areas where we continue
to improve.
We have also convened an industry
group to develop a product stewardship
scheme for large lithium ion batteries,
called the Battery Industry Group.
Batteries are a key element in the new
energy future, but without a clear plan
for managing both the second-life
and end-of-life of these batteries, there
will be lost value and environmental
and social consequences. In a report
to be released later this year, several
opportunities are identified which
would allow New Zealand to bring
innovative solutions and build new
businesses based around reuse and
recycling of batteries.
17%
reduction in corporate carbon intensity
native trees planted through Vector’s
Urban Forest initiative
convened the Battery Industry Group to
address end-of-life battery issues
awarded ‘Best-first-time performance’
from the Carbon Disclosure Project
(Aus/NZ)
our environment
31,000
Vector AR’19― our environment
― 34

Right tree, right place
This year we created the Vector Urban Forest, an initiative that has resulted in 31,000
native trees and other plants being introduced into urban areas of Auckland. The
Vector Urban Forest stems from a promise we have made to plant two native trees
for every tree we cut down to protect Auckland’s power lines. The initiative has two
purposes – firstly, to encourage Aucklanders to be smart about planting near power
lines, and secondly to help regenerate Auckland’s ecosystems which provide key
environmental and social benefits.
In establishing urban forests, Vector is aiming to create a future positive legacy
for the residents of Auckland too. With 20,000 to 30,000 trees to be planted each
year, the initiative will help address the issue of tree inequality within Auckland
by targeting areas with lower canopy cover, which generally coincide with lower
socioeconomic groups. Vector’s Urban Forest will help to create a valuable resource
for neighbouring communities.
This initiative is engaging our staff and suppliers also. It’s encouraging them to step
outside their everyday roles and connect with the natural environment through
planting, as well as building relationships across the wider Vector business.
Greenhouse gas emissions
Our primary emission sources are
associated with our gas processing
operation at Kapuni, which represents
around 83.0% of Vector’s total emissions.
These emissions increased by 9% in FY19
due to increases in the CO
2
content of the
raw gas supplied and a growth in demand
for gas in the New Zealand economy.
Our Scope 2 emissions, which relate
to our purchased electricity (all sites)
and the electricity distribution losses
from our Auckland electricity network,
decreased by 18% during FY19. This
resulted from slightly lower electricity
distribution losses and a reduction
in the published emissions factor for
these emission types. Vector reports on
emissions associated with distribution
losses, these fluctuate, with demands
for different energy sources and the
TOTAL CARBON BASELINE
FY17
(adjusted)*
FY18
(adjusted)*FY19
% Change
f rom FY17
baseline
Scope 1**341,964371,084402,575+17.72%
Scope 2**31,59929,07023,768-24.78%
Scope 3**–5,86911,009
* Baseline and FY18 Scope 1 and 2 data adjusted due to changes in published emission factors for the relevant
reporting year. The emissions associated with our gas distribution network increased 5.67% in FY17 and 3.5% in FY18.
** Scope 3 emission sources include business travel and fuel consumption for our key service providers in each business
unit. Our Scope 1 and 2 carbon data is inclusive of the co-generation facility at Kapuni Gas Treatment Plant, which has
been apportioned 50% between the two joint venture parties but excludes emissions from E-Co Products Group Limited.
generation mix for electricity, both of
which are outside our control.
We are reporting Scope 3 emissions,
which relate to fuel consumption for
all our key field service providers, for
the first time. The largest source of
these Scope 3 emissions is the service
delivery vehicles used by our network
maintenance crews.
We have successfully addressed some
‘low-hanging fruit’ in our corporate
emissions profile by continuing to
transition our corporate fleet to EV or
hybrid vehicles. This transition resulted
in a 12.6% reduction in associated carbon
emissions in our OnGas sales fleet.
Other initiatives have included installing
solar power on buildings, including
some substations, and changing the
fuel used in our mobile generator fleet
to bio-diesel.
For FY19, we have expanded our carbon
reporting to include Scope 1 and 2 data
for our PowerSmart business, as well as
fuel consumption by our main service
providers in New Zealand and Australia
(Scope 3). To gain a better understanding
of carbon exposure, the business has also
identified a number of key products that
are high in carbon and has calculated an
estimate of embodied emissions.
For the second consecutive year
we have successfully exceeded our
corporate carbon intensity reduction
target, with a 17% reduction compared
with a target of 5%. This covers business
travel, fleet fuel use and electricity
consumption across our offices and is a
ratio of tCO
2
e to EBITDA. Since 2017 we
have reduced this intensity value by 32%
(a reduction of absolute emissions by
30% for these sources).
35 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

our board
MICHAEL BUCZKOWSKI
BE (Electrical), MBA (With Dist)
NON-INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 12 November 2018
DAME ALISON PATERSON
DNZM, QSO, DCom(hc), FCA, ADistFInstD

INDEPENDENT NON-EXECUTIVE
CHAIR
―
Appointed on 7 March 2007
JONATHAN MASON
MBA, MA, BA
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 10 May 2013
TONY CARTER
BE (Hons), ME, MPhil
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 1 May 2019
Jonathan Mason has extensive commercial experience. He has worked in financial management
positions in the oil and gas, chemicals, forest products and dairy industries in New Zealand and
the USA for International Paper, ExxonMobil Corporation, Carter Holt Harvey, Cabot Corporation
and Fonterra. Jonathan also has experience as a non-executive director on boards in both New
Zealand and the USA and is currently a director of Air New Zealand Limited, New Zealand Assets
Management Limited (NZAM), Westpac New Zealand Limited and Zespri Group Limited. He is also
an Adjunct Professor of Management at the University of Auckland, focusing on finance.
Tony Carter was managing director of Foodstuffs New Zealand Limited for ten years until his
retirement in 2010. Tony is Chair of Fisher & Paykel Healthcare Limited and Air New Zealand Limited*
and is a director of ANZ Bank New Zealand Limited and Fletcher Building Limited*, and a trustee of
the Maurice Carter Charitable Trust.
* Tony is retiring from the Boards of Air New Zealand and Fletcher Building Limited in September
and November respectively and joined the Datacom Group Limited Board on 1 August.
Michael Buczkowski is an experienced Trustee and Deputy Chairman of Entrust. He was General
Manager Operations at Ricoh from 2007 to 2018 and, prior to that, Managing Director of Hirepool
and also Director of Owens Industrial (NZX top 40). His professional experience includes: Consulting
Electrical Engineer at Beca, registered Electrical Engineer from 1984 to 2004 as well as international
consulting expertise in the energy sector.
Dame Alison Paterson is Chair of the Forestry Industry Safety Council, Kiwi Wealth Group, Te Aupouri
Commercial Development Limited and Te Aupouri Fisheries Management Limited. She is also a
member of the Health Quality & Safety Commission New Zealand.
Vector AR’19― our board
― 36

BOB THOMSON
BEng (Electrical), DipBS
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 18 March 2005
BRUCE TURNER
BE (Hons), ME, BCom
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 16 April 2019
KAREN SHERRY
QSM, BA, MA (Hons), LLB (Hons), C.FInstD.
NON-INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 24 July 2006
DAME PAULA REBSTOCK
BSc (Econ), Dip & MSc (Econ)
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 16 April 2019
Bob Thomson was chief executive of Transpower Limited and, since 2004, has been an adviser to
Energy Trusts of New Zealand Inc. Prior to his appointment at Transpower, he held a range of senior
management and engineering positions in the New Zealand Electricity Department and Electricity
Corporation of New Zealand Limited. Bob was involved in the reform of the electricity industry,
including as a board member of the Electricity Market Company Limited from 1994 to 1998. He is a
fellow of Engineering New Zealand (formerly the Institution of Professional Engineers New Zealand).
Bruce Turner is Director of Central Portfolio Management at Fonterra. He is a highly experienced
senior executive who has held leadership roles in the energy industry, both in New Zealand and
overseas. Bruce is a member of the Electricity Authority’s Security and Reliability Council and an
advisory board member at the University of Colorado’s JP Morgan Center for Commodities. He
was involved in the reform of the electricity industry, as a member of the despatch rules working
group, the NZEM Rules Committee, the MARIA governance board and the development of industry
common quality standards.
* Bruce is joining New Zealand Butter Canners Ltd as a director from 5 August.
Karen Sherry is a director and shareholder of the firm Donnell Sherry Limited where she specialises
in commercial and trust law. She is a trustee and former Chair of Entrust. Karen is the Chair of Energy
Trusts of New Zealand Inc. and a director of the Energy Efficiency and Conservation Authority. She is
also a Chartered Fellow of the Institute of Directors in New Zealand.
Dame Paula Rebstock is a leading Auckland-based economist and company director,
who was made a Dame Companion of the New Zealand Order of Merit in 2015. She is Chair of ACC,
Kiwi Group Holdings Limited, Ngāti Whātua Ōrākei Whai Maia and the New Zealand Defence Force
Board and a director of Auckland Transport. Dame Paula is the former Chair of the New Zealand
Commerce Commission.
37 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

management team
SIMON MACKENZIE
Grad DipBS (Dist), DipFin, NZCE
GROUP CHIEF EXECUTIVE
―
ANDRE BOTHA
BEng, MEng, PG DipBus
CHIEF NETWORKS OFFICER
―
CO LIN DA LY
PG Dip (Operations)
CHIEF EXECUTIVE OFFICER – VECTOR
POWERSMART
―
KATE BEDDOE
BA, LLB
CHIEF RISK AND SUSTAINABILITY OFFICER
―
Andre Botha is Vector’s Chief Networks Officer, accountable for Vector’s electricity and gas
businesses. He brings 29 years’ experience in the energy sector with a proven track record
at executive level, locally and internationally.
Andre holds a B.Eng (Electrical) and a M.Eng (Electrical and Electronic) from the University
of Pretoria, South Africa, and a PGDipBus (Finance) from the University of Auckland.
Initially joining Vector to lead our E-Co Products Group, Colin Daly now leads newly formed
Vector PowerSmart which encompasses HRV and PowerSmart Solar operations and, at group level,
our strategic marketing, business development, product innovation and technology functions.
Colin brings extensive experience in business and organisational strategy, innovation, customer
service and market growth, and has led businesses in B2C, B2B and hybrid channels to market
across New Zealand, Australia and the United Kingdom.
He has a proven track record in building high-performing teams, cultural transformation and
the delivery of innovative business strategies leading to significant revenue growth. He is also a
member of New Zealand’s Institute of Directors and a director of Hauraki Marine (Burnsco).
Kate Beddoe leads Vector’s risk, sustainability and Health, Safety and Environment teams to ensure
these areas are aligned and support Vector’s strategy and culture. Her areas of responsibility include
risk management and assurance, business continuity and crisis management, sustainability and HSE.
Kate has over 25 years’ experience in leading change in areas such as strategic and operational risk
management, sustainability, business continuity, OHSE, insurance, human resources and commercial
law. Prior to joining Vector, Kate was with Amcor Limited where she held the global position of Vice-
President, Risk and Sustainability and has held management roles with Toyota and Bonlac Foods
Ltd (Fonterra). Kate is also a director and Vice-President of RIMS (the Risk Management Society)
New Zealand & Pacific Islands and is a faculty contributor to the Cambridge Institute for Sustainability
Leadership – Business and Sustainability Executive Leadership Program (Melbourne).
Simon Mackenzie is passionate about the power of technology to transform the energy industry
and consumers’ lives. As Group Chief Executive, he has expanded and driven Vector’s portfolio
of businesses to embrace innovative technologies and strategies to deliver efficient, sustainable
energy solutions to consumers.
Simon was appointed Vector’s Group Chief Executive in 2008. His tertiary qualifications include
engineering, finance and business studies, and the Advanced Management Programme at the
Wharton School, University of Pennsylvania.
Vector AR’19― management team
― 38

FIONA MICHEL
MBA
CHIEF PEOPLE OFFICER
―
NIKHIL RAVISHANKAR
BSc BCom (Hons)
CHIEF DIGITAL OFFICER
―
JASON HOLLINGWORTH
MCom (Hons), FCA, CMInstD
CHIEF FINANCIAL OFFICER
―
Fiona Michel is Vector’s Chief People Officer, responsible for people, capability and culture.
She has worked in the technology, banking, insurance and public sectors for over two decades
in New Zealand and overseas. Fiona has won awards in New Zealand and Australia for achievement
in human resources, leadership, culture transformation and industrial relations. She has a Master of
Business Administration, is an alumnus of Harvard Business School and is completing her Doctorate
at the University of Auckland. Professionally, Fiona is a Chartered Fellow of the Chartered Institute
of Personnel and Development in the United Kingdom and a Fellow Certified Practitioner HR of the
Australian Human Resources Institute.
Nikhil Ravishankar leads Vector’s digital team and is responsible for managing the company’s digital
and IT functions. He is charged with harnessing the performance of both existing and emerging
disruptive digital technologies to ensure Vector is able to provide reliable, relevant and innovative
services, and compete in the modern customer driven energy marketplace. Prior to joining Vector,
Nikhil was with Accenture where he held the position of Managing Director for New Zealand
operations and also sat on its Global Advisory Council for Telecommunications and Media practice.
Prior to his role at Accenture, he was the Head of Technology Strategy for Spark and was part of their
group transformation office.
Jason Hollingworth joined Vector as Chief Financial Officer in May 2019. He has over 30 years’
experience in a range of senior corporate finance roles including being CFO of public listed pay
television company SKY TV, CFO of telecommunications company TelstraClear, Investment Manager
for the diversified investment company Ngai Tahu Holdings, Executive Director at Asian private
power development company AsiaPower and a Director of corporate advisory firm Southpac
Corporation. Jason has a Master of Commerce degree, is a Fellow of the Institute of Chartered
Accountants ANZ and a member of the Institute of Directors.
39 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

This section of the annual report
is an overview of selected aspects
of Vector’s corporate governance
framework. A copy of Vector’s full
Corporate Governance Statement
for the 2019 financial year, which
provides detailed information about
the company’s framework of corporate
governance policies, practices and
processes, is available at the corporate
governance section of the company’s
website at www.vector.co.nz/investors/
governance.
Vector’s Board is committed to
maintaining high standards of corporate
governance, ensuring transparency
and fairness, and recognising the
interests of our shareholders and
other stakeholders.
The Board has an established set of
guiding principles that state that the
company will:
‒Be a leading commercial enterprise
in Australasia with a reputation
for delivering results through
sound strategy;
‒Have entrepreneurial agility, being
the first to identify opportunities
and bring them to market;
‒Be a great employer which values
knowledge and talent;
‒Strive to ensure that everyone who
does work for Vector, goes home
healthy and safe;
‒Deal fairly and honestly with its
customers; and
‒Be a good corporate citizen.
Vector’s governance practices are
consistent with the principles in the
NZX Corporate Governance Code
(2019) (NZX Code), except that Vector
has not adopted a formal protocol for
responding to takeovers (NZX Code
Recommendation 3.6). Because Entrust
holds 75.1% of Vector’s shares, it is not
practically possible for a takeover offer
of Vector to be made by a party other
than Entrust.
Roles and responsibilities of the
Board and management
The primary objective of the Board is to
protect and enhance the value of the
company in the interests of the company
and its shareholders.
To ensure that Vector’s business
objectives and strategies are achieved
and to deliver value to the company
and its shareholders, the Board strives
to understand, meet and appropriately
balance the expectations of all its
stakeholders, including its employees,
customers and the wider community.
In carrying out its responsibilities
and powers, the Board at all times
recognises its overriding responsibility
to act honestly, fairly, diligently and in
accordance with the law. The Board
works to promote and maintain
an environment within Vector that
establishes these principles as basic
guidelines for all of its employees
and representatives.
The Group Chief Executive has
responsibility for the day-to-day
management of Vector and its businesses.
He is supported in this function by the
Vector executive team. Details of the
members of the executive team are set
out on pages 38 and 39 of this annual
report and in the About Us section of
Vector’s website (www.vector.co.nz/
about-us/board-executive-team). The
Board maintains ultimate responsibility
for strategy and control of Vector and
its businesses.
Board membership
Vector’s Board comprises experienced
directors from diverse backgrounds
and who lead the company on behalf of
its shareholders and other stakeholders.
The directors are committed to
maintaining high standards of corporate
governance, ensuring transparency and
fairness and recognising the interests of
our stakeholders.
governance
report
The Board comprises eight directors, all
of whom are non-executive. Biographies
are set out on pages 36 and 37 of this
report. The current directors possess an
appropriate mix of skills, expertise and
diversity to enable the Board to discharge
its responsibilities and deliver the
company’s strategic priorities.
Director independence
The Nominations Committee has
responsibility on behalf of the Board
for making determinations as to the
independence status of all directors.
The committee’s assessment of
independence is guided by the
NZX Listing Rules and NZX Code
Recommendation 2.4.
The Board has reviewed the position
and relationships of all directors in
office and considers that six of the
non-executive directors are independent.
Those directors are Dame Alison
Paterson who is Vector’s Chair, Jonathan
Mason who is Deputy Chair, Tony Carter,
Dame Paula Rebstock, Bob Thomson
and Bruce Turner. Michael Buczkowski
and Karen Sherry represent Vector’s
majority shareholder Entrust, and are
therefore not independent directors.
Board committees
There are currently four Board
committees; an Audit Committee,
a Nominations Committee, a
Remuneration Committee and a Risk
and Assurance Committee. During
the year the Regulatory Committee
and Sustainability Committee were
discontinued following a determination
by the Board that it was more
appropriate for these matters to be
considered by the full Board.
Each committee has a written charter
setting out its purpose, objectives,
responsibilities, structure and
composition, meetings and procedure,
authority and reporting.
The members and chairs of each committee are:
COMMITTEEMEMBERS
Audit CommitteeJonathan Mason (Chair)
Alison Paterson
Karen Sherry
Bob Thomson
Nominations CommitteeAlison Paterson (Chair*)
Jonathan Mason
Karen Sherry
Bob Thomson
Remuneration CommitteeBob Thomson (Chair*)
Alison Paterson
Karen Sherry
Risk and Assurance CommitteeKaren Sherry (Chair)
Jonathan Mason
Alison Paterson
Bob Thomson
* effective 3 December 2018.
Vector AR’19― governance report
― 40

External auditor
The effectiveness, performance and
independence of the external auditor
is reviewed annually by the Audit
Committee.
The company’s external auditor is
KPMG. Malcolm Downes has been
the Audit Partner since 2018 and
Laura Youdan has been the Assurance
Partner since 2018. KPMG has
provided the Board with the required
independence declaration for the
financial year ended 30 June 2019. The
Audit Committee has determined that
there are no matters that have affected
the auditor’s independence.
It is the Board’s policy that all non-audit
services proposed to be undertaken
by the external auditor must be pre-
approved by the Audit Committee.
The Audit Committee considered and
gave its approval for the auditor to
undertake certain non-audit related
matters. KPMG was paid $1.2m for
services in the financial year to 30 June
2019. Of this sum, $1.0m was for audit-
related services and $0.2m was for non-
audit related services. Further detail is
provided on page 64 of this annual report.
Risk management
At Vector, we recognise that rigorous
risk and opportunity management is
essential for corporate stability and
performance, and supports Vector in its
pursuit to create a new energy future.
To drive sustainable growth and ensure
business resilience, we must anticipate
risks to our operations while capitalising
on opportunities as they arise.
Vector’s enterprise risk management
(ERM) framework provides a flexible
and purpose-built approach to the
application of risk management
across Vector and is consistent with
the Australian/New Zealand Risk
Management Standard “AS/NZS
ISO 31000:2009 Risk management
– Principles and Guideline”. Our risk
management processes and tools
are embedded within our business
operations to drive consistent, effective
and accountable decision-making.
Consistent with the “Three Lines of
Defence” principle, all Vector people
are responsible for applying Vector’s
ERM framework within their individual
roles and are encouraged to proactively
identify, analyse, escalate and treat risks.
This risk mindset has been implemented
through:
‒Acknowledgement of risk
management’s value at Executive and
Board level;
‒Relatable and easily applied risk
management policies, processes and
tools;
‒Integration of risk champions
throughout the business; and
‒Continuous training and education,
both formal and informal.
Vector regularly monitors the changing
business landscape, assessing the
influence of macrotrends on Vector’s
operating environment. These
perspectives, along with material
risks from individual business unit risk
profiles, support the identification of key
group wide risks and opportunities.
To further promote accountability and
transparency, key business areas formally
present their material risks to the Risk and
Assurance Committee on an annual basis.
These material risks are assessed against
a group wide set of criteria covering both
consequence and likelihood, as defined in
Vector’s Group Risk Assessment Matrix.
STRATEGIC RISKS
Business
evolution and
adaptation
Changing customer needs and
expectations; managing the balance
of regulated and non-regulated
revenues effectively
Rapid
digitalisation
and technology
changes
Appropriately innovating and keeping
pace with technological advancements
as they emerge
Product/
service
commercialisation
Delivery of new revenue streams in a
dynamic marketplace, needing a strong
coordinated approach
Portfolio
management
Delivery of acceptable returns in
the medium term, through actively
managing the investment portfolio and
capturing growth opportunities
Political and
regulatory
uncertainty
Ongoing changes in the New Zealand
and Australian political and regulatory
landscape; ensuring the regulatory
environment keeps pace with
technological and operational change
Accelerated
climate change
adaptation and
mitigation
Exposure of network assets to
potential changes in weather trends
and increased severe weather events;
transition to a net zero emissions
economy (presents both risks and
opportunities for the business)
Data
governance and
management
Heightened focus on ensuring
organisations appropriately manage,
use and safeguard data
OPERATING RISKS
Cyber security
Vector’s IT/OT environment being
compromised, leading to disruption to
critical services or confidential information
being released, modified or deleted
Significant HSE
incident
Safety Always is fundamental to Vector’s
operations, to protect our people,
contractors and the wider public
Core business
operational failure
Strong business continuity practices to
minimise disruption from the unlikely
event of a significant operational
incident at a critical site
Compliance with
quality standards
External factors, resourcing and
technical constraints and Auckland’s
ongoing growth; challenging Vector’s
ability to achieve SAIDI and SAIFI targets
Reputational
damage
The use, speed and hyper-transparency
of social media, coupled with increasing
engagement with customers
EMERGING RISKS
Trust and
ethical conduct
perceptions
Heightened focus on organisational
trust, transparency and conduct
Talent, capability
and capacity
Resourcing capability and capacity due
to the volume and speed of change,
together with evolving workforce
requirements and skillsets
Growing value of
intangible assets
Increasing role of intangibles in
supporting and driving business value
(presents both long-term opportunities
and risks)
ENVIRONMENTAL RISKS TECHNOLOGICAL RISKS ECONOMIC RISKS SOCIETAL RISKS OPERATIONAL RISKS
Our key and emerging risks
41 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

governance report (continued)
Internal audit
Vector’s Group Internal Audit function
provides independent and objective
assurance on the effectiveness of
governance, risk management and
internal controls across all business
operations. The team follows a co-
sourced model, drawing on both in-
house and external expertise, and has
unrestricted access to all Vector staff,
records and third parties. The team
liaises closely with KPMG, as Vector’s
external auditor, to share the outcomes
of the internal audit programme to
the extent that they are relevant to
the financial statements.
Ethical and responsible behaviour
The Code of Conduct and Ethics outlines
the responsibilities of Vector’s people
and explains the standards of conduct
and ethics.
At Vector our vision and values are the
foundation of our business; they reflect
who we are and how we do business.
Together as a team, as well as with
our customers, partners and the wider
community, each and every one of us
has an important role to play in bringing
our values to life.
The purpose of our Code is to provide a
framework for ethical decision making.
However, the Code is not a substitute for
good judgment. As Vector employees
we strive to carry out our work in
accordance with our values, and this
Code should be used as a practical set
of guiding principles to help us make
decisions in our daily jobs.
Diversity and inclusion
The Board’s commitment to creating
and maintaining both a diverse
workforce and an inclusive workplace
for all employees is reflected in its
Diversity and Inclusion Policy. A
Diversity Council, made up of senior
management representatives, provides
governance over the implementation
of the Policy. The Diversity Council also
provides guidance and direction in
relation to the activity of the Diversity
Committee, which consists of employee
representatives from across the business.
Vector has sought to establish
measurable objectives for achieving
diversity, including gender diversity,
and its annual assessment of its diversity
objectives for FY19 and the company’s
progress towards achieving these
objectives are set out on pages 32 to 33
of this annual report.
Investor engagement
Vector’s Board is committed to
maintaining open and transparent
communications with investors
and other stakeholders and it
supports a programme for two-way
engagement with shareholders,
debt investors, the media and the
broader investment community.
Annual and interim reports, NZX
releases, quarterly reports on operational
performance, governance policies and
charters and a wide variety of corporate
information are posted on Vector’s
website. Vector conducts detailed market
briefings in conjunction with the release
of the annual and interim financial
results. Transcripts of the briefings
are available at the annual reports page
of the Investor section of the website.
Introducing the Audit-Bot
The core purpose of the internal audit function is to add value and improve the
operations of the organisation. However, the exponential pace of change in today’s
business environment means that the traditional assurance model is unable to meet
the shifting needs of our stakeholders and is ill-equipped to address emerging risks.
At Vector, we have recognised the role that emerging technologies and innovation
will play in the future of internal audit. Over the course of the year, the internal audit
function has been automating controls testing and exception reporting using data
analytics and robotic automation with cognitive intelligence technologies.
This has enabled a move from manual, point in time sample based testing towards
an automated and continuous assurance model that is able to analyse the whole
data population. For example the audit-bot can now review all business expenditure
and identify those that may have been approved outside of delegated authority
levels and require further investigation.
Using cognitive technologies, the audit-bot’s capability has also been extended
to look at external risk factors such as reputation through tracking of social
networking and online news media. This supplements existing external controls
by Vector supporting early detection via continuous monitoring.
This innovation delivered by the audit-bot has also been transformational in
enabling greater assurance across the business, increased operational efficiency,
extended audit coverage, improved effectiveness of controls and continuous
monitoring of controls.
Over the coming year internal audit will continue to bolster its armoury with more
emerging and disruptive technologies, such as artificial intelligence and machine
learning. This will improve our ability to anticipate and efficiently respond to
stakeholder needs, address the challenge of emerging risks, improve operations
and assist in safeguarding the business as management pursues new methods
of creating and delivering value.
Vector AR’19― governance report (continued)
― 42

Entrust, majority shareholder of Vector
Community trust Entrust was formed
more than 25 years ago to ensure
that stewardship over Auckland’s
electricity network remains in the
hands of Aucklanders. Entrust
acts in the interests of its 333,000
families and businesses in Auckland,
Manukau, northern Papakura and
eastern Franklin. Entrust protects
the $2.8 billion
1
investment in Vector
through its role in the appointment
of directors to Vector’s Board.
Here for the community
Entrust is proud of the work it has
undertaken for its beneficiaries and
all Aucklanders.
Advocacy on behalf of
energy consumers
Entrust regularly advocates on behalf of
energy consumers on important matters
such as the Electricity Pricing Review
and transmission pricing.
Enabling projects with direct benefit
Entrust has an agreement with Vector
that requires an average of $10.5 million
to be invested in projects in the Entrust
District every year.
In the year to 30 June 2019, key
undergrounding projects have
been undertaken in Franklin Road
(Freemans Bay), Station Road (Otahuhu),
Alba Road (Greenlane), St Georges Road
(Avondale), Sarsfield Street (Herne Bay),
Dominion Road (Mt Eden), Rahiri
Road (Mt Eden), and Taurarua Terrace
and Windsor Street (Parnell).
Entrust’s agreement with Vector also
results in other projects on the Vector
network which have a direct benefit
to Entrust beneficiaries. This year
these include procurements of mobile
community generators to supply
power during periods of extended
maintenance on Vector’s network.
Passing on a share of Vector’s
profits to beneficiaries
In addition, Vector’s growth and
operating performance enables Entrust
to distribute an annual dividend to
beneficiaries through its 75.1% stake
in Vector.
WILLIAM CAIRNS (CHAIR)
MICHAEL BUCZKOWSKI (DEPUTY CHAIR)
ALASTAIR BELL
PAUL HUTCHISON
KAREN SHERRY
In September 2018, each
of Entrust’s 333,000
beneficiaries received
a $350 dividend – that’s
more than $115 million
going straight into the
Auckland economy.
“Entrust, in the
community since 1993”

OVER 135
undergrounding projects have been
completed since the programme
began, in Auckland, Manukau and
northern Papakura
1. Based on recent Vector NZX quoted share price.
Vector AR’19― Entrust, majority shareholder of Vector
43 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

joint ventures and
investments
50%
KAPUNI ENERGY JOINT VENTURE
Vector Kapuni Limited (a wholly owned
subsidiary of Vector) holds a 50% interest
in an unincorporated joint venture that
operates a cogeneration plant situated
at the Kapuni Gas Treatment Plant,
producing electricity and steam for the
gas treatment plant and other customers.
50%
TREESCAPE
Vector holds a 50% shareholding in Tree
Scape Limited, one of Australasia’s largest
specialist tree and vegetation management
companies, with depots throughout New
Zealand and in Queensland and New
South Wales. Treescape employs more
than 600 staff. Its customers include
councils, utilities, government agencies,
construction companies and developers.
Treescape implements Vector’s planned
vegetation management programme,
which plays a major role in minimising
the impact of severe weather on Vector’s
electricity network.
www.treescape.co.nz
60.25%
LIQUIGAS
NGC Holdings Limited (a wholly owned
subsidiary of Vector) holds a 60.25%
shareholding in Liquigas Limited, New
Zealand’s leading company for tolling,
storage and distribution of bulk LPG.
Liquigas has staff and depots in Auckland,
New Plymouth, Christchurch and Dunedin.
www.liquigas.co.nz
8.1%
mPREST
Vector holds a 8.1% shareholding in
mPrest Systems (2003) Limited. 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.
www.mprest.com
Vector has investments in a number of businesses that complement our network
businesses and strengthen our capabilities in the energy services field.
Vector AR’19― joint ventures and investments
― 44

operating
statistics
YEAR ENDED 30 JUNE20192018
ELECTRICITY
Customers
1, 4
571,125563,076
New connections11,00011,135
Net movement in customers
2
8,0497,976
Volume distributed (GWh)8,4108,442
Networks length (km)
1
18,88418,694
SAIDI (minutes)
3

Normal operations198.2226.2
Major network events377.241.3
Total575.4267.5
GAS DISTRIBUTION
Customers
1, 4
111,642109,229
New connections3,3223,165
Net movement in customers
2
2,4132,559
Volume distributed (PJ)14.414.5
GAS TRADING
Natural gas sales (PJ)
5
16.118.3
Gas liquid sales (tonnes)
6
79,17077,656
9kg LPG bottles swapped
7
658,159652,859
Liquigas LPG tolling (tonnes)
8
152,206183,540
TECHNOLOGY
Electricity: smart meters
1, 9
1,558,2911,405,936
Electricity: legacy meters
1
76,36786,505
Electricity: prepay meters
1
3962
Electricity: time-of-use meters
1
12,47312,327
Gas meters
1
228,027224,770
Data management and service connections
1
8,8248,810
Vector Operating Statistics
– FY 2019
1. As at 30 June.
2. Net number of customers added during the 12-month period, includes disconnected, reconnected and
decommissioned ICPs.
3. Regulatory year - 12 months to 31 March (audited).
4. Billable ICPs.
5. Excludes gas sold as gas liquids. These sales are included within the gas liquids sales tonnages.
6. Total of retail and wholesale LPG and natural gasoline. Includes wholesale volumes from Kapuni and retail volumes
via OnGas. Product sold from Kapuni to OnGas is counted twice for the purpose of this metric.
7. Number of 9kg LPG bottles swapped and sold during the year.
8. Product tolled in Taranaki and further tolled in the South Island is counted twice for the purpose of this metric.
9. The number of smart meters deployed as at 30 June 2019 includes 156,713 meters managed but not owned by Vector
(30 June 2018: 135,284).
Vector AR’19― operating statistics
45 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

YEAR ENDED 30 JUNE ($ MILLION)20192018201720162015
PROFIT OR LOSS – CONTINUING OPERATIONS
1
Total income1,318.61,328.41,226.71,144.61,153.4
Adjusted EBITDA485.8470.1474.4473.0451.9
Depreciation and amortisation(246.8)(225.9)(199.6)(194.6)(179.0)
Adjusted EBIT239.0244.2274.8278.4272.9
Net prof it – continuing operations84.0149.8168.958.988.3
PROFIT OR LOSS – DISCONTINUED OPERATIONS
Total income–––110.7140.6
Adjusted EBITDA–––75.388.5
Depreciation and amortisation–––(5.8)(16.2)
Adjusted EBIT–––69.572.3
Net profit – including discontinued operations84.0149.8168.9274.4149.4
BALANCE SHEET
Total equity2,349.42,457.92,448.32,398.32,298.6
Total assets6,061.05,808.05,574.65,603.06,123.0
Economic net debt (borrowings net of cash
and short-term deposits)2,627.52,377.92,220.11,932.92,745.1
CASH FLOW
Operating cash flow348.1389.9335.7352.1369.2
Capital expenditure(418.4)(386.8)(354.3)(340.1)(311.8)
Dividends paid(164.1)(163.9)(161.0)(159.2)(155.4)
KEY FINANCIAL MEASURES
Adjusted EBITDA/total income36.8%35.4%38.7%41.3%39.2%
Adjusted EBIT/total income 18.1%18.4%22.4%24.3%23.7%
Equity/total assets38.8%42.3%43.9%42.8%37.5%
Return on assets (adjusted EBITDA/assets)8.0%8.1%8.5%8.4%7.4%
Gearing
2
52.2%48.8%47.1%43.7%53.6%
Net interest cover – continuing ops (adjusted EBIT/net
f inance costs) (times)1.81.82.01.61.5
Earnings (NPAT) per share (cents) including
discontinued activities8.314.816.727.214.6
Dividends declared, cents per share (fully imputed)16.5016.2516.0015.7515.50
FIVE YEAR FINANCIAL PERFORMANCE
1. Prepared on a continuing basis, excluding contribution from gas transmission and non-Auckland gas distribution for all periods presented.
2. Gearing is defined as economic net debt to economic net debt plus adjusted equity. Adjusted equity means total equity adjusted for hedge reserves.
ADJUSTED EBITDA (continuing operations)
$ MILLION
451.9474.4470.1485.8
FY15FY16FY17FY18FY19
0
100
-100
200
300
400
500
600
700
473.0

REGULATED NETWORKS

GAS TRADING

TECHNOLOGY

CORPORATE

TOTAL GROUP
Vector AR’19― financial performance trends
― 46

5.9%
29.9%
2.8%
61.4%
F
Y
1
9
F
Y
1
8
6%
65%
4%
25%
47.8%
52.2%
F
Y
1
9
F
Y
1
8
48.8%51.2%
CAPITAL EXPENDITURE

REGULATED NETWORKS

GAS TRADING

TECHNOLOGY

CORPORATE

REGULATED NETWORKS

GAS TRADING

TECHNOLOGY

CORPORATE

INTER-SEGMENT

ECONOMIC NET DEBT

ADJUSTED EQUITY
SOURCE OF FUNDING – GEARING
AS AT 30 JUNE
TOTAL INCOME
(continuing operations)
$ MILLION
NET PROFIT
(including discontinued operations)
$ MILLION
OPERATING CASH FLOWS
(including discontinued operations)
$ MILLION
,.
,.
,.
,.
,.

FYFYFYFYFY

FYFYFYFYFY
.

.

.
.
.

FYFYFYFYFY
.
.
.
.
.
1. FY18 includes a $16.7 million one-off tax gain.
2. FY19 includes a $46.6 million non-cash impairment.
47 ―
ENERGY SYSTEMS
TO MOVE US ALL FORWARD

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 the 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
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.
20192018
YEAR ENDED 30 JUNE ($ MILLION)
Segment adjusted EBITDA
REPORTED
SEGMENT
EBITDA
LESS
CAPITAL
CONTRIBUTIONS
SEGMENT
ADJUSTED
EBITDA
REPORTED
SEGMENT
EBITDA
LESS
CAPITAL
CONTRIBUTIONS
SEGMENT
ADJUSTED
EBITDA
Technology142.3 (0.3)142.0 131.8 (1.3)130.5
Gas Trading31.3 – 31.3 34.4 – 34.4
Unregulated segments173.6 (0.3)173.3 166.2 (1.3)164.9
Regulated segment446.0 (79.0)367.0 428.8 (70.2)358.6
Corporate(54.5) – (54.5)(53.4) – (53.4)
TOTAL565.1 (79.3)485.8 541.6 (71.5)470.1
GAAP TO NON-GAAP RECONCILIATION
YEAR ENDED 30 JUNE ($ MILLION)
Group EBITDA and adjusted EBITDA from continuing operations20192018
Reported net profit for the period (GAAP)84.0 149.8
Add back: net interest costs133.3 130.7
Add back: tax (benef it)/expense52.5 36.8
Add back: depreciation and amortisation246.8 225.9
EBITDA516.6 543.2
Adjusted for:
Associates (share of net (prof it)/loss)(0.6)1.5
Capital contributions(79.3)(71.5)
Fair value change on f inancial instruments2.5 (3.1)
Impairment46.6 –
Adjusted EBITDA485.8 470.1
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 New
Zealand International 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.
Vector AR’19― Non-GAAP financial information
― 48

financials
49 ―

Vector AR’19
― 50
― financial statements
CONTENTS
Prof it or Loss
51
Other Comprehensive Income
52
Balance Sheet
53
Cash Flows
54
Changes in Equity
55
Notes to the Financial Statements
56
Independent Auditor’s Report
92
2019 FINANCIAL STATEMENTS
These f inancial statements for the year ended 30 June 2019 are dated 22 August 2019,
and signed for and on behalf of Vector Limited by:
Director 22 August 2019
Director 22 August 2019
And management of Vector Limited by:
Group Chief Executive 22 August 2019
Chief Financial Officer 22 August 2019
financial statements

51 ―
PROFIT OR LOSS
for the year ended 30 June
NOTE
2019
$M
2018
$M
Revenue51,318.61,328.4
Operating expenses6(753.5)(786.8)
Depreciation and amortisation(246.8)(225.9)
Interest costs (net) 7(133.3)(130.7)
Fair value change on f inancial instruments8(2.5)3.1
Associates (share of net prof it/(loss))12.20.6(1.5)
Impairment13.1(46.6)–
Profit/(loss) before income tax136.5186.6
Income tax benef it/(expense)9(52.5)(36.8)
Net profit/(loss) for the period84.0149.8
Net profit/(loss) for the period attributable to
Non-controlling interests 1.11.6
Owners of the parent 82.9148.2
Basic and diluted earnings per share (cents) 22.38.314.8

Vector AR’19― financial statements (continued)
― 52
NOTE
2019
$M
2018
$M
Net profit/(loss) for the period84.0149.8
Other comprehensive income net of tax
Items that may be re-classif ied subsequently to prof it or loss:
Net change in fair value of hedge reserves19(21.0)8.9
Translation of foreign operations(2.1)(0.3)
Items that will not be re-classif ied to prof it or loss:
Fair value change on f inancial asset12.40.61.1
Other comprehensive income for the period net of tax(22.5)9.7
Total comprehensive income for the period net of tax61.5159.5
Total comprehensive income for the period attributable to
Non-controlling interests 1.11.6
Owners of the parent 60.4157.9
OTHER COMPREHENSIVE INCOME
for the year ended 30 June

53 ―
NOTE
2019
$M
2018
$M
CURRENT ASSETS
Cash and cash equivalents21.327.627.9
Trade and other receivables11100.1104.5
Contract assets5.2105.2105.5
Inventories8.411.6
Intangible assets1.91.0
Income tax952.484.7
Total current assets295.6335.2
NON-CURRENT ASSETS
Receivables111.70.1
Derivatives19109.356.6
Investment in associate12.28.78.1
Other investments12.415.615.0
Intangible assets131,354.91,397.2
Property, plant and equipment (PPE)144,184.63,995.7
Right of use assets (ROU)15.138.1–
Income tax952.3–
Deferred tax100.20.1
Total non-current assets5,765.45,472.8
Total assets6,061.05,808.0
CURRENT LIABILITIES
Trade and other payables16200.1214.1
Provisions1717.424.4
Borrowings18481.3224.2
Derivatives194.965.8
Contract liabilities5.248.444.4
Lease liabilities15.27.2–
Income tax90.80.7
Total current liabilities760.1573.6
NON-CURRENT LIABILITIES
Payables161.80.2
Provisions1727.422.6
Borrowings182,279.72,171.1
Derivatives1978.251.2
Contract liabilities5.243.944.7
Lease liabilities15.232.7–
Deferred tax 10487.8486.7
Total non-current liabilities2,951.52,776.5
Total liabilities3,711.63,350.1
EQUITY
Equity attributable to owners of the parent2,332.42,440.4
Non-controlling interests in subsidiaries17.017.5
Total equity2,349.42,457.9
Total equity and liabilities6,061.05,808.0
Net tangible assets per share (cents)22.397.8104.2
Gearing ratio (%)22.352.248.8
BALANCE SHEET
as at 30 June

Vector AR’19― financial statements (continued)
― 54
NOTE
2019
$M
2018
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts f rom customers1,316.51,312.2
Interest received 1.12.0
Dividends received –0.5
Payments to suppliers and employees(765.3)(736.5)
Interest paid(142.6)(127.0)
Income tax paid (61.6)(61.3)
Net cash flows from/(used in) operating activities21.1348.1389.9
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds f rom sale of PPE and software intangibles0.60.4
Proceeds f rom sale of investments–7.8
Purchase and construction of PPE and software intangibles(418.4)(386.8)
Acquisition of businesses(8.0)(1.7)
Post-completion payment for acquisition of businesses–(1.4)
Other investments(1.6)(14.0)
Net cash flows from/(used in) investing activities(427.4)(395.7)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds f rom borrowings535.0570.8
Repayment of borrowings(285.6)(400.0)
Dividends paid (164.1)(163.9)
Sale of treasury shares–14.0
Lease liabilities payments(6.2)–
Other f inancing cash flows(0.1)(2.1)
Net cash flows from/(used in) financing activities21.279.018.8
Net increase/(decrease) in cash and cash equivalents(0.3)13.0
Cash and cash equivalents at beginning of the period27.914.9
Cash and cash equivalents at end of the period27.627.9
Cash and cash equivalents comprise:
Bank balances and on-call deposits22.019.6
Short-term deposits 5.68.3
21.327.627.9
CASH FLOWS
for the year ended 30 June

55 ―
NOTE
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 30 June 2017875.0(9.2)(49.0)0.81,613.017.72,448.3
Net prof it/(loss) for the period––––148.21.6149.8
Other comprehensive income––8.90.8––9.7
Total comprehensive income– –8.90.8148.21.6159.5
Dividends ––––(162.1)(1.8)(163.9)
Sale of treasury shares5.09.0––––14.0
Total transactions with
owners5.09.0––(162.1)(1.8)(149.9)
Reclassification on sale
of financial asset– ––(1.9)1.9––
Balance at 30 June 2018880.0(0.2)(40.1)(0.3)1,601.017.52,457.9
Impact of adopting NZ IFRS 15
at 1 July 2018––––(6.0)–(6.0)
Adjusted balance at
1 July 2018880.0(0.2)(40.1)(0.3)1,595.017.52,451.9
Net prof it/(loss) for the period––––82.91.184.0
Other comprehensive income––(21.0)(1.5)––(22.5)
Total comprehensive income––(21.0)(1.5)82.91.161.5
Dividends 3––––(162.5)(1.6)(164.1)
Employee share purchase
scheme transactions–(0.2)–0.3––0.1
Total transactions with
owners–(0.2)–0.3(162.5)(1.6)(164.0)
Balance at 30 June 2019880.0(0.4)(61.1)(1.5)1,515.417.02,349.4
CHANGES IN EQUITY
for the year ended 30 June

Vector AR’19
― 56
― notes to the financial statements
notes to the financial statements
Note 1Company information 57
Note 2Summary of significant accounting policies
57
Note 3Significant transactions and events
58
Note 4Segment information
59
Note 5Revenue
62
Note 6Operating expenses
64
Note 7Interest costs (net)
64
Note 8Fair value change on financial instruments
64
Note 9Income tax expense/(benefit)
65
Note 10Deferred tax
66
Note 11Trade and other receivables
66
Note 12Investments
68
Note 13Intangible assets
71
Note 14Property, plant and equipment (PPE)
73
Note 15Leases
75
Note 16Trade and other payables
77
Note 17Provisions
77
Note 18Borrowings
78
Note 19Derivatives and hedge accounting
80
Note 20Financial risk management
85
Note 21Cash flows
88
Note 22Equity
89
Note 23Related party transactions
91
Note 24Contingent liabilities
91
Note 25Events after balance date
91

57 ―
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 reporting
entity for the purposes of Part 7 of the Financial Markets Conduct Act 2013. The f inancial statements
comply with this Act.
The f inancial statements presented are for Vector Limited Group (“Vector” or “the group”) as at, and
for the year ended 30 June 2019. The group comprises Vector Limited (“the parent”), its subsidiaries,
and its investments in associates, f inancial assets and joint arrangements.
In accordance with the Financial Markets Conduct Act 2013, where a reporting entity prepares
consolidated f inancial statements, parent company disclosures are not required.
Vector Limited is a 75.1% owned subsidiary of Entrust 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
Statement of complianceThe f inancial statements comply with New Zealand equivalents to International Financial Reporting
Standards (NZ IFRS), and other applicable Financial Reporting Standards, as appropriate for Tier 1
for-prof it entities. They also comply with International Financial Reporting Standards.
Basis of preparationThe f inancial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP) as appropriate to Tier 1 for-prof it entities.
They are prepared on the historical cost basis except for the following items, which are measured at
fair value:
—the identif iable assets and liabilities acquired in a business combination; and
—certain f inancial instruments, as disclosed in the notes to the f inancial statements.
The presentation currency is New Zealand dollars ($). All f inancial information has been rounded to
the nearest 100,000, unless otherwise stated.
The statements of prof it or loss, other comprehensive income, cash flows and changes in equity are
stated exclusive of GST. All items in the balance sheet are stated exclusive of GST except for trade
receivables and trade payables, which include GST.
Signif icant accounting policies,
estimates and judgements
Vector’s management is required to make judgements, estimates, and apply assumptions that
affect the amounts reported in the f inancial statements. They have based these on historical
experience and other factors they believe to be reasonable. Actual results may differ f rom these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and in the future
periods affected.
Accounting policies, and information about judgements, estimations and assumptions that have
had a signif icant effect on the amounts recognised in the f inancial statements are disclosed in the
relevant notes as follows:
—Revenue recognition (Note 5)
—Consolidation basis and classif ication and valuation of investments (Note 12)
—Impairment and valuation of goodwill (Note 13)
—Property, plant and equipment: valuation and classif ication of expenses (Note 14)
—Provisions (Note 17)
—Borrowings: measurement bases (Note 18)
—Valuation of derivatives (Note 19)
—Financial risk management – impairment of f inancial instruments (Note 20)

Vector AR’19― notes to the financial statements (continued)
― 58
2. Summary of significant
accounting policies
CONTINUED
New accounting standards
adopted
On 1 July 2018 the following accounting standards were adopted:
i) NZ IFRS 15: Revenue f rom Contracts with Customers
ii) NZ IFRS 16: Leases
NZ IFRS 15: Revenue from Contracts with Customers
NZ IFRS 15 Revenue f rom Contracts with Customers provides an entity with guiding principles on
when, how, and how much revenue to recognise in an entity’s f inancial statements in any given
reporting period. The standard and its subsequent amendment replace all existing IFRS guidance
for revenue recognition. The most relevant to Vector are: NZ IAS 18 Revenue, NZ IAS 11 Construction
Contracts, NZ IFRIC 8 Transfers of Assets f rom Customers. Refer to Note 5 for details of accounting
policies and impact f rom adoption of NZ IFRS 15.
NZ IFRS 16: Leases
The group has elected to early adopt NZ IFRS 16 Leases, effective f rom 1 July 2018. The group
applied NZ IFRS 16 using the modif ied retrospective transition approach. Comparative information
and opening equity are therefore not restated and continue to be reported under NZ IAS 17 Leases
and IFRIC 4 Determining whether an arrangement contains a lease. Refer to Note 15 for details of
accounting policies and impact f rom adoption of NZ IFRS 16.
New standard effective
and previously adopted
NZ IFRS 9: Financial Instruments
NZ IFRS 9 Financial Instruments is mandatory for the group effective f rom 1 July 2018.
The group has previously completed the adoption of NZ IFRS 9 by electing to early adopt NZ IFRS 9
(2013) Financial Instruments in the year ended 30 June 2015 (initial application 1 July 2014) and NZ
IFRS 9 (2014) Financial Instruments in the year ended 30 June 2017 (initial application 1 July 2016).
3. Significant transactions
and events
Signif icant transactions and events that have occurred during the year ending 30 June 2019:
The Commerce Commission Over-recovery of electricity revenue
On 7 July 2017, Vector and the Commerce Commission (“the 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 is effected through a $13.9 million (including accumulated interest of $3.8 million)
price adjustment for the regulatory years ending 31 March 2019 and 31 March 2020, impacting the
group’s reported revenues and interest costs for the f inancial years ended 30 June 2018 (3 months),
and f inancial years ending 30 June 2019 (12 months) and 2020 (9 months).
The impact in the current year ended 30 June 2019 is a $4.8 million (2018: $1.0 million) decrease in
revenue and a $1.7 million (2018: $0.4 million) increase in interest costs.
Breaches of electricity network quality measures
Vector have breached the electricity network reliability targets, set by the Commission, for the
regulatory years ended 31 March 2017, 2018 and 2019. The breaches are in large part expected results
f rom Vector’s work safety policy to perform electricity line work in a de-energised state. The policy
was effective for a full year in 2018 and 2019, and a portion of 2017.
Should the Commission seek penalty charges Vector will face up to $15.0 million in liability
($5.0 million per year of breach). For similar breaches in regulatory years 2015 and 2016, the
Commission brought a total penalty charge of $3.6 million.

59 ―
3. Significant transactions
and events
CONTINUED
Debt programmeOn 14 January 2019, the group repaid $285.6 million (GBP $115.0 million) of medium-term notes
using existing facilities.
On 27 May 2019, the group raised $250.0 million of unsubordinated bonds with a f ixed rate of 3.45%
maturing on 27 May 2025.
During the year ended 30 June 2019, the group drew down a net of $285.0 million
(2018: $15.0 million) f rom the bank facilities.
DividendsVector Limited’s f inal dividend for the year ended 30 June 2018 of 8.00 cents per share was paid on
14 September 2018, with a supplementary dividend of 1.41 cents per non-resident share. The total
dividend paid was $80.0 million.
Vector Limited’s interim dividend for the year ended 30 June 2019 of 8.25 cents per share was paid
on 11 April 2019, with a supplementary dividend of 1.46 cents per non-resident share. The total
dividend paid was $82.5 million.
Liquigas Limited, a subsidiary of the group, paid an interim dividend in December 2018 of $0.6
million and a f inal dividend in June 2019 of $1.0 million to the company’s non-controlling interests.
4. Segment information
SegmentsVector reports on three reportable segments in accordance with NZ IFRS 8 Operating Segments.
These segments are reported internally to the group chief executive and the Board. This reporting is
used to assess performance and make decisions about the allocation of resources.
The segments are unchanged f rom those reported in Vector’s annual report for the year ended
30 June 2019. The segments are:
Regulated Networks Auckland electricity and gas distribution services.
Gas Trading Natural gas and LPG sales, storage and processing, and cogeneration.
Technology Metering services, telecommunications and new energy solutions.
Segment information is prepared and reported in accordance with Vector’s accounting policies.
Intersegment transactions included in the revenues and operating expenses for each segment are
on an arms’ length basis.
Segment prof itThe measures of segment prof it reported to the group chief executive and the Board are earnings
before interest and tax and earnings before interest, tax, depreciation and amortisation (EBITDA).
Corporate activitiesCorporate activities, comprising shared services and investments, earn revenues that are incidental
to Vector’s operations and do not meet the def inition of an operating segment under NZ IFRS 8.
The results for corporate activities are reported in the reconciliations of segment information to the
group’s f inancial statements.
Interest costs (net), fair value change on f inancial instruments and associates (share of net prof it/
(loss)) are reported as corporate activities and are not allocated to the segments.
Major customersVector engages with three major customers, each of which contribute greater than ten percent of
the group’s revenue. These customers are large energy retailers. For the year ended 30 June 2019,
the customers contributed $220.4 million (2018: $223.6 million), $172.3 million (2018: $177.2 million)
and $164.6 million (2018: $162.7 million) respectively, which is reported across all segments.

Vector AR’19― notes to the financial statements (continued)
― 60
4. Segment information
CONTINUED
2019
REGULATED
NETWORKS
$M
GAS
TRADING
$M
TECHNOLOGY
$M
INTER-
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 676.8284.1269.2–1,230.1
Third party contributions79.0–0.3–79.3
Other8.8–––8.8
Intersegment revenue4.5–5.3(9.8)–
Segment revenue769.1284.1274.8(9.8)1,318.2
External expenses:
Electricity transmission expenses(209.6)–––(209.6)
Gas purchases and production expenses–(179.2)––(179.2)
Technology cost of sales––(68.3)–(68.3)
Network and asset maintenance(60.6)(17.1)(11.0)–(88.7)
Employee benef it expenses(16.3)(13.6)(28.5)–(58.4)
Other expenses(32.8)(38.4)(23.2)–(94.4)
Intersegment expenses(3.8)(4.5)(1.5)9.8–
Segment operating expenses(323.1)(252.8)(132.5)9.8(698.6)
Segment EBITDA446.031.3142.3–619.6
Depreciation and amortisation(122.4)(15.6)(91.4)–(229.4)
Segment profit/(loss)323.615.750.9–390.2
Segment capital expenditure260.911.8127.3–400.0
During the year, the Technology segment delivered technology related network projects for Regulated Networks at a margin of
$0.1 million. The assets are included in the segment capital expenditure for Regulated Networks. The $0.1 million margin is included in
the segment information presented for Technology and has been eliminated in the reconciliation below.
Reconciliation to revenue, profit/(loss) before income tax and capital expenditure
reported in the financial statements:
2019
REVENUE
$M
PROFIT/(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information1,318.2390.2400.0
Amounts not allocated to segments (corporate activities):
Revenue 0.40.4–
Impairment–(46.6)–
Employee benef it expenses–(30.8)–
Other operating expenses–(24.0)–
Elimination of margin on inter-segment transaction–(0.1)–
Depreciation and amortisation –(17.4)–
Interest costs (net)–(133.3)–
Fair value change on f inancial instruments–(2.5)–
Associates (share of net prof it/(loss))–0.6–
Capital expenditure––25.1
Reported in the financial statements1,318.6136.5425.1

61 ―
4. Segment information
CONTINUED
2018
REGULATED
NETWORKS
$M
GAS
TRADING
$M
TECHNOLOGY
$M
INTER-
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 684.6290.3263.9–1,238.8
Third party contributions70.2–1.3–71.5
Other17.2–––17.2
Intersegment revenue4.2–8.4(12.6)–
Segment revenue776.2290.3273.6(12.6)1,327.5
External expenses:
Electricity transmission expenses(220.6)–––(220.6)
Gas purchases and production expenses–(187.1)––(187.1)
Technology cost of sales––(78.5)–(78.5)
Network and asset maintenance(58.4)(16.9)(12.4)–(87.7)
Employee benef it expenses(15.1)(13.4)(31.4)–(59.9)
Other expenses(46.5)(33.5)(18.7)–(98.7)
Intersegment expenses(6.8)(5.0)(0.8)12.6–
Segment operating expenses(347.4)(255.9)(141.8)12.6(732.5)
Segment EBITDA428.834.4131.8–595.0
Depreciation and amortisation(115.0)(20.7)(76.2)–(211.9)
Segment profit/(loss)313.813.755.6–383.1
Segment capital expenditure245.817.193.7–356.6
During the year, the Technology segment delivered technology related network projects for Regulated Networks at a margin of
$0.7 million. The assets are included in the segment capital expenditure for Regulated Networks. The $0.7 million margin is included in
the segment information presented for Technology and has been eliminated in the reconciliation below.
Reconciliation to revenue, profit/(loss) before income tax and capital expenditure
reported in the financial statements:
2018
REVENUE
$M
PROFIT/(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information1,327.5383.1356.6
Amounts not allocated to segments (corporate activities):
Revenue 0.90.9–
Employee benef it expenses– (28.6)–
Other operating expenses– (25.0)–
Elimination of margin on inter-segment transaction–(0.7)–
Depreciation and amortisation – (14.0)–
Interest costs (net)– (130.7)–
Fair value change on f inancial instruments– 3.1–
Associates (share of net prof it/(loss))– (1.5)–
Capital expenditure– –24.6
Reported in the financial statements1,328.4186.6381.2

Vector AR’19― notes to the financial statements (continued)
― 62
5. Revenue
5.1 Revenue from contracts
with customers
NOTE
2019
$M
2018
$M
Sales1,230.11,238.8
Third party contributions79.371.5
Other9.218.1
Total 1,318.61,328.4
TransitionThe group adopted NZ IFRS 15 with a date of initial application of 1 July 2018 using the cumulative
retrospective approach. Under this approach, the cumulative effect of applying NZ IFRS 15 is
recognised as an adjustment to the opening balance of equity at 1 July 2018. Comparative
information has not been restated and continues to be reported under NZ IAS 18 and NZ IAS 11.
The adoption of NZ IFRS 15 has impacted the timing of recognising revenue f rom third party
contributions for some construction contracts. The table below summarises the impacts on the
group’s consolidated f inancial statements for the year ended 30 June 2019.
BALANCE SHEET
AS AT 30 JUNE 2019
BALANCE BEFORE
TRANSITION
$M
ADJUSTMENT
$M
AS REPORTED
$M
Current liabilities
Contract liabilities47.11.348.4
Non-current liabilities
Deferred tax490.1(2.3)487.8
Contract liabilities38.15.843.9
Equity
Retained earnings1,509.46.01,515.4
PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2019
BALANCE BEFORE
TRANSITION
$M
ADJUSTMENT
$M
AS REPORTED
$M
Revenue – Regulated Networks767.91.2769.1
PoliciesRevenue is measured at the value of consideration received, or receivable, as specif ied in a contract
with a customer. Amounts collected on behalf of third parties are excluded. The group recognises
revenue when it transfers control over a good or service to a customer.

63 ―
5. Revenue
CONTINUED
5.1 Revenue from contracts
with customers
CONTINUED
Major sources of revenue Regulated Networks
Electricity and gas distribution services
Revenue f rom electricity and gas distribution services are measured at fair value, to the extent that
pricing is determined by the regulator within a def ined pricing path set. Revenue is recognised over
time using an output method. The right to payment corresponds directly with the customers’
pattern of electricity and gas consumption.
Third party contributions
Third party contributions towards the construction of property, plant and equipment are
recognised over time, reflecting the percentage completion of the underlying construction activity
or the performance obligation if the activity is bundled with other goods or services.
A contract liability is presented on the balance sheet representing the portion of consideration
received f rom the customer on acceptance of a contract but where the performance obligation
associated with the contract is not yet satisf ied.
Gas Trading
Sale of natural gas
The group receives revenue f rom customers for the provision of a continuous supply of natural gas
over a time period. Revenue is recognised over time in line with a customer’s consumption of natural
gas and measured at the transaction price of the contract.
The transaction price for a gas supply contract includes variable consideration in the form of
indexed pricing, volume pricing, and take or pay arrangements. The group estimates the amount
of variable consideration present in each contract using the expected value method, which is the
sum of probability weighted amounts in a range of possible consideration amounts.
Technology
Metering revenue
Metering revenue earned f rom the provision of metering services is recognised over time as the
customer simultaneously receives and consumes the benef its f rom operations of the group’s
network of meters.
5.2. Contract balances
PoliciesContract liabilities
Of the revenue recognised this year, $29.2 million was included in the contract liability balance at
the beginning of the reporting period.
Contract assets
Contract assets represent balances due f rom customers for performance obligations (or series
of performance related milestones) completed but that have not been invoiced. A contract asset
is reclassif ied to trade receivables at the point when it is invoiced to the customer.

Vector AR’19― notes to the financial statements (continued)
― 64
6. Operating expenses
NOTE
2019
$M
2018
$M
Electricity transmission 4209.6220.6
Gas purchases and production 4179.2187.1
Technology cost of sales468.378.5
Network and asset maintenance488.787.7
Other direct expenses55.059.0
Employee benef it expenses489.288.5
Administration expenses26.020.0
Professional fees13.015.0
IT expenses16.015.0
Other indirect expenses 8.515.4
Total 753.5786.8
Fees paid to auditorsFees were paid to KPMG as follows:
—audit or review of f inancial statements: $597,000 (2018: $506,000);
—regulatory assurance: $392,185 (2018; $366,000);
—other assurance fees: $74,485 (2018: $50,000);
—non-audit fees: $174,000 (2018: $nil).
Other assurance fees include fees for the audit of guaranteeing group f inancial statements, bond
registers, and agreed upon procedures required by certain contractual arrangements. Non-audit
fees include fees for IT forensics and other forensic services.
7. Interest costs (net)
NOTE
2019
$M
2018
$M
Interest expense125.9131.6
Amortisation costs6.55.1
Capitalised interest(5.4)(4.4)
Interest income(1.1)(2.2)
Interest on leases15.32.0–
Decommissioning costs172.01.8
Other3.4(1.2)
Total 133.3130.7
PoliciesInterest costs (net) include interest expense on borrowings and interest income on funds invested
which are recognised using the effective interest rate method.
Capitalised interestVector has capitalised interest to PPE and software intangibles while under construction at an
average rate of 5.3% per annum (2018: 5.8%).
8. Fair value change
on financial instruments
2019
$M
2018
$M
Fair value movement on hedging instruments 54.732.2
Fair value movement on hedged items(57.2)(29.1)
Total gains/(losses)(2.5)3.1

65 ―
9. Income tax expense/
(benefit)
Reconciliation of income tax expense/(benefit)
2019
$M
2018
$M
Prof it/(loss) before income tax136.5186.6
Tax at current rate of 28% 38.252.2
Current tax adjustments:
Non-deductible expenses3.33.3
Relating to prior periods – others0.11.9
Relating to MEL Network Limited removal–(16.7)
Impairment13.0–
Other(0.3)(1.3)
Deferred tax adjustments:
Relating to prior periods – others(1.8)(2.6)
Income tax expense/(benefit)52.536.8
Comprising:
Current tax40.828.1
Deferred tax11.78.7
Other adjustmentsMEL Network Limited removal
MEL Network Limited (MEL), a wholly owned subsidiary of Vector, was removed f rom the Companies
Off ice register on 27 March 2018. Following the removal, the related party advance between MEL and
Vector Limited was written off, resulting in an income tax benef it of $16.7 million to the group in the
year ended 30 June 2018. A private binding ruling was obtained to conf irm the income tax benef it.
PoliciesIncome tax expense/(benef it) comprises current and deferred tax and is calculated using rates
enacted or substantively enacted at balance date.
Current and deferred tax is recognised in prof it or loss unless the tax relates to items in other
comprehensive income, in which case the tax is recognised as an adjustment in other
comprehensive income against the item to which it relates.
Income tax assetVector’s current policy is to fully impute its dividend payments to shareholders. This has driven the
recognition of a current income tax asset at 30 June 2019 of $52.4 million (2018: $84.7 million) and a
non-current income tax asset of $52.3 million (2018: nil).
The group intends to review its dividend and imputation policy during the year ended 30 June
2020 following conf irmation of the Commerce Commission’s Default Price Path (DPP3) due on
28 November, 2019.
Imputation creditsThere are no imputation credits available for use as at 30 June 2019 (2018: nil), as the imputation
account has a debit balance as of that date.

Vector AR’19― notes to the financial statements (continued)
― 66
10. Deferred tax
Deferred tax liability/ (asset)
NOTE
PPE AND
INTANGIBLES
$M
PROVISIONS
AND
ACCRUALS
$M
HEDGE
RESERVES
$M
OTHER
$M
TOTAL
$M
Balance at 1 July 2017492.4(8.3)(19.0)10.4475.5
Recognised in prof it or loss23.5(11.3)–(3.5)8.7
Recognised in other comprehensive income––3.5–3.5
Recognised f rom business combinations(1.1)–––(1.1)
Balance at 30 June 2018514.8(19.6)(15.5)6.9486.6
Recognised in prof it or loss20.5(5.9)–(2.9)11.7
Recognised in other comprehensive income––(8.2)–(8.2)
Recognised f rom adoption of NZ IFRS 155–––(2.3)(2.3)
Recognised f rom adoption of NZ IFRS 16–––(0.2)(0.2)
Balance at 30 June 2019535.3(25.5)(23.7)1.5487.6
The group’s deferred tax position is presented in the balance sheet as follows:
2019
$M
2018
$M
Deferred tax asset(0.2)(0.1)
Deferred tax liability487.8486.7
Total487.6486.6
PoliciesDeferred tax is:
—Recognised on temporary differences between the carrying amounts of assets and
liabilities for f inancial reporting purposes and the amounts used for taxation purposes.
—Not recognised for the initial recognition of goodwill.
—Measured at tax rates that are expected to be applied to the temporary differences
when they reverse.
11. Trade and other receivables
2019
$M
2018
$M
Current
Trade receivables 76.371.6
Interest receivable9.417.3
Prepayments11.111.7
Other3.33.9
Balance at 30 June100.1104.5
Non-current
Other receivables1.70.1
Balance at 30 June 1.70.1

67 ―
11. Trade and other receivables
CONTINUED
At 30 June, the exposure to credit risk for trade and other receivables by type of counterparty was
as follows.
2019
$M
2018
$M
NOT CREDIT
IMPAIRED
CREDIT
IMPAIRED
NOT CREDIT
IMPAIRED
CREDIT
IMPAIRED
Business customers62.42.860.10.7
Mass market customers6.6–4.4–
Third party asset damages0.35.20.43.9
Residential and other4.20.95.2–
Total gross carrying amount73.58.970.14.6
Loss allowance(0.2)(4.2)(0.1)(3.0)
73.34.770.01.6
The following table provides information about the exposure to credit risk and expected credit
losses for trade receivables as at 30 June.
2019
$M
2018
$M
CARRYING
AMOUNT
LOSS
ALLOWANCE
CARRYING
AMOUNT
LOSS
ALLOWANCE
Not past due65.9–56.5–
Past due 1 – 30 days7.1–7.2–
Past due 31 – 120 days2.90.24.10.1
Past due more than 120 days2.14.23.83.0
Balance at 30 June78.04.471.63.1
PoliciesReceivables are initially recognised at fair value. They are subsequently adjusted for credit
impairment losses.
Discounting is not applied to receivables where collection is expected to occur within the next
twelve months.
Credit riskIn assessing credit losses for trade receivables, the group applies the simplif ied approach and
records lifetime expected credit losses (“ECLs”) on trade receivables.
Lifetime ECLs result f rom all possible default events over the expected life of a trade receivable.
The group considers the probability of default upon initial recognition of the trade receivable,
based on reasonable and available information on the group’s customers and groups of customers.
The group’s trade receivables are monitored in two groups: business customers, and mass market
residential customers.
In assessing ECLs on trade receivables the group considers both quantitative and qualitative inputs.
Quantitative data includes past collection rates, industry statistics, ageing of receivables, and trading
outlook. Qualitative inputs include past trading history with the group.
The group’s customer acceptance process includes a check on credit history, prof itability, and the
customer’s external credit rating if available. Different levels of sale limits are also imposed on
customer accounts by nature.

Vector AR’19― notes to the financial statements (continued)
― 68
12. Investments
JudgementsClassifying investments as either subsidiaries, associates, f inancial assets or joint operations
requires management to judge the degree of influence which the group holds over the investee.
These judgements impact upon the basis of consolidation accounting which is used to recognise
the group’s investments in the consolidated f inancial statements.
12.1 Investments in subsidiaries
Trading subsidiariesSignif icant trading entities and holding companies in the group are listed below.
PERCENTAGE HELD
PRINCIPAL ACTIVITY20192018
Vector Gas Trading LimitedNatural gas trading and processing100%100%
Vector Kapuni LimitedJoint operator – cogeneration plant100%100%
Liquigas LimitedBulk LPG storage, distribution, and management 60%60%
On Gas LimitedLPG sales and distribution100%100%
Vector Metering Data Services LimitedHolding company 100%100%
Advanced Metering Assets LimitedMetering services 100%100%
Advanced Metering Services LimitedMetering services 100%100%
Arc Innovations LimitedMetering services 100%100%
Vector Communications LimitedTelecommunications 100%100%
Vector Energy Solutions LimitedHolding company100%100%
PowerSmart NZ LimitedEnergy solutions services100%100%
Vector ESPS Trustee LimitedTrustee company100%100%
E-Co Products Group LimitedHolding company100%100%
Cristal Air International LimitedVentilation, heating and water systems sales
and assembly100%100%
Ventilation Australia Pty Limited Holding company100%100%
HRV Australia Pty LimitedVentilation systems and parts sales100%100%
Vector Advanced Metering Services (Australia)
Pty LimitedMetering services 100%100%
Vector Advanced Metering Assets (Australia)
LimitedMetering services 100%100%
Vector Energy Solutions (Australia) Pty LimitedEnergy solutions services100%100%
PoliciesSubsidiaries are entities controlled directly or indirectly by the parent. Vector holds over 50% of the
voting rights in all entities reported as subsidiaries. There are currently no indicators that Vector
does not have control consistent with these voting rights.
The f inancial statements of subsidiaries are reported in the f inancial statements using the
acquisition method of consolidation.
Intra-group balances and transactions between group companies are eliminated on consolidation.
GeographyAll subsidiaries are incorporated in New Zealand, except for the following which are incorporated
in Australia:
—Vector Advanced Metering Services (Australia) Pty Limited;
—Vector Energy Solutions (Australia) Pty Limited;
—Ventilation Australia Pty Limited;
—HRV Australia Pty Limited.

69 ―
12. Investments
CONTINUED
12.2 Investment in associate
PERCENTAGE HELD
ASSOCIATEPRINCIPAL ACTIVITYBALANCE DATE
COUNTRY OF
INCORPORATION20192018
Tree Scape LimitedVegetation management31 MarchNew Zealand50%50%
2019
$M
2018
$M
Carrying amount of associates
Balance at 1 July 8.19.6
Share of net prof it/(loss) of associate0.6(1.5)
Balance at 30 June 8.78.1
Equity accounted earnings of associate
Prof it/(loss) before income tax0.8(2.1)
Income tax benef it/(expense)(0.2)0.6
Share of net profit/(loss) of associate0.6(1.5)
Total recognised revenues and expenses0.6(1.5)
PoliciesAssociates are entities in which Vector has signif icant influence, but not control or joint control, over
the operating and f inancial policies. Vector holds over 20%, but not more than half, of the voting
rights in all entities reported as associates and has assessed that there are currently no indicators
that Vector does not have signif icant influence consistent with these voting rights. Where Vector
has 50% voting rights in an entity reported as an associate, we have determined that this does not
constitute joint control as there is more than one combination of parties that can achieve majority
voting rights and control through board voting.
Investments in associates are reported in the f inancial statements using the equity method.
12.3 Interest in joint operation
INTEREST HELD
JOINT OPERATIONPRINCIPAL ACTIVITYBALANCE DATE20192018
Kapuni Energy Joint VentureCogeneration plant operator30 June50%50%
PoliciesA joint operation is where Vector is a party to a joint arrangement and has rights to the assets and
obligations for the liabilities relating to the arrangement.
Vector has assessed that the contractual arrangement governing the Kapuni Energy Joint Venture,
of which Vector Kapuni Limited is a party, meets the criteria of a joint arrangement, and that the
rights and obligations conferred by that contract meet the classif ication of a joint operation.
The interest in the joint operation is reported in the f inancial statements using the proportionate
method of consolidation.

Vector AR’19― notes to the financial statements (continued)
― 70
12. Investments
CONTINUED
12.4 Other investmentsmPrest Systems (2003) Limited
On 4 October 2017, Vector invested $14.0 million (US $10.0 million) into mPrest Systems (2003)
Limited (“mPrest”). The investment is accounted for as a f inancial asset at fair value through other
comprehensive income (“OCI”) on the Balance Sheet.
Vector holds 8.1% (2018: 7.8%) of the issued shares in mPrest. The group has determined the fair
value of the asset as $15.6 million at 30 June 2019, with the upward movement of $0.6 million
recognised in OCI.
For fair value measurement purposes, the f inancial asset is classif ied as level 3 on the fair value
hierarchy (see Note 20 for explanations of various levels in the hierarchy). The table below provides
information on how the fair value of the asset is determined.
The discount rate used is a post-tax, risk-adjusted rate that reflects the risks specif ic to the different
segments of operations in mPrest.
The terminal growth rate represents an estimated long-term sustainable growth rate for the f ree
cash flows of the business.
FAIR VALUE
DESCRIPTION
2019
$M
2018
$M
VALUATION
TECHNIQUE
SIGNIFICANT
UNOBSERVABLE INPUT
SENSITIVITY OF FAIR VALUE
TO CHANGES IN INPUT
Offshore private
equity investment
15.615.0Discounted
cashflow
Discount rate 10%A 1% increase in discount rate used
will result in a $2.2 million decrease
in the fair value.
A 1% decrease in discount rate
will result in a $2.9 million increase
in fair value.
Terminal growth rate 2%A 1% increase in the terminal growth
rate used will result in a $1.6 million
increase in the fair value.
A 1% decrease in the terminal growth
rate used will result in a $1.2 million
decrease in the fair value.
The group’s team of valuation specialists are responsible for establishing the appropriate valuation
techniques and inputs into the valuation models, including an assessment of any inputs obtained
f rom third party or market sources.
The valuation team report to the chief f inancial off icer, and any signif icant valuation issues are
reported to the group’s audit committee.

71 ―
13. Intangible assets
NOTE
CUSTOMER
INTANGIBLES
$M
EASEMENTS
$M
SOFTWARE
$M
TRADE
NAMES
$M
GOODWILL
$M
TOTAL
$M
Carrying amount 30 June 201738.416.359.916.61,266.01,397.2
Cost49.916.3252.516.81,330.01,665.5
Accumulated amortisation(11.5)–(192.6)(0.2)–(204.3)
Accumulated impairment––––(64.0)(64.0)
Transfers f rom PPE–0.524.4––24.9
Acquisition of business––––3.63.6
Disposals––(0.1)––(0.1)
Amortisation for the period(4.5)–(23.1)(0.8)–(28.4)
Carrying amount 30 June 201833.916.861.115.81,269.61,397.2
Cost49.916.8276.616.81,333.61,693.7
Accumulated amortisation(16.0)–(215.5)(1.0)–(232.5)
Accumulated impairment––––(64.0)(64.0)
Transfers f rom PPE–0.530.6––31.1
Acquisition of business––0.1–7.47.5
Impairment13.1(3.9)–––(42.7)(46.6)
Amortisation for the period(5.9)–(26.6)(1.8)–(34.3)
Carrying amount 30 June 201924.117.365.214.01,234.31,354.9
Cost49.917.3299.016.81,341.01,724.0
Accumulated amortisation(21.9)–(233.8)(2.8)–(258.5)
Accumulated impairment(3.9)–––(106.7)(110.6)

Vector AR’19― notes to the financial statements (continued)
― 72
13. Intangible assets
CONTINUED
13.1 Goodwill
Goodwill by reportable segment
2019
$M
2018
$M
Regulated Networks1,050.21,050.2
Gas Trading156.8156.8
Technology27.362.6
Total 1,234.31,269.6
PoliciesGoodwill represents the excess of the consideration transferred over the fair value of Vector’s share
of the net identif iable assets of an acquired subsidiary.
Goodwill is carried at cost less accumulated impairment losses.
AllocationGoodwill is monitored internally at a group level. It is allocated to operating segments, which are also
reflective of the group’s cash generating units (“CGUs”), for impairment testing purposes. This is the
highest level permissible under NZ IFRS. The CGUs within the group are: electricity, gas distribution,
metering, gas trading, communications, E-Co Products and commercial energy solutions.
Goodwill is tested at least annually for impairment against the recoverable amount of the CGU to
which it has been allocated.
JudgementsTo assess impairment, management must estimate the future cash flows of operating segments
including the CGUs that make up those segments. This entails making judgements including:
—the expected rate of growth of revenues;
—margins expected to be achieved;
—the level of future maintenance expenditure required to support these outcomes; and
—the appropriate discount rate to apply when discounting future cash flows.
ImpairmentAs at 30 June 2019, the group has recognised an impairment loss of $46.6 million in respect of
goodwill and intangible assets allocated to the E-Co Products (“E-Co”) CGU within the technology
segment. The impairment reflects various factors including the post-acquisition performance of
E-Co’s heat pumps and f ilters businesses falling below expectations, the closure of E-Co’s retrof it
windows business and the signif icant investment in establishing the HRV solar business. Following
the appointment of new management in September 2018, E-Co has undertaken a detailed review of
its operations with a focus on reorganisation and simplif ication. The business is expected to return
to prof itability in 2020.
The recoverable amount of the E-Co CGU has been determined based on value in use. Post-tax
discount rates of between 7.6% and 8.3% (2018: 8.3% and 9.0%) have been applied in determining
the recoverable amount for the E-Co CGU.
AssumptionsThe recoverable amounts attributed to the electricity, gas distribution, metering, gas trading and
communications CGUs are calculated on the basis of value-in-use using discounted cash flow
models. On the basis that the recoverable amounts of these CGUs to which goodwill is allocated
exceeds the net assets plus goodwill allocated, the group has determined that no impairment to
goodwill has occurred during the period.
Future cash flows are forecast based on actual results and business plans.
For the electricity, gas distribution and metering CGUs, a ten-year period has been used due to the
long-term nature of the group’s capital investment in these businesses and the predictable nature of
their cash flows. A f ive-year period has been used for the gas trading, E-Co and communications CGUs.
Terminal growth rates in a range of 1.0% to 2.0% (2018: 1.0% to 2.0%) and post-tax discount rates between
4.7% to 8.9% (2018: 4.8% and 9.0%) are applied. Rates vary for the specif ic segment being valued.
Projected cash flows for regulated businesses are sensitive to regulatory uncertainty. Estimated
future regulated network revenues and the related supportable levels of capital expenditure are
based on default price-quality path determinations issued by the Commerce Commission and are
in line with estimates published in the asset management plans.

73 ―
13. Intangible assets
CONTINUED
13.2 Other intangible assets
PoliciesOther intangible assets are initially measured at cost, and subsequently stated at cost less any
accumulated amortisation and impairment losses.
Software, customer intangibles, and trade names have been assessed as having a f inite life greater
than 12 months, and are amortised f rom the date the asset is ready for use on a straight-line basis
over its estimated useful life. The estimated useful lives (years) are as follows:
Software 3 – 36
Customer intangibles 3 – 10
Trade names 10
Easements are not amortised, but are tested for impairment at least annually as part of the
assessment of the carrying values of assets against the recoverable amounts of the operating
segments to which they have been allocated.
14. Property, plant
and equipment (PPE)
DISTRIBUTION
SYSTEMS
$M
ELECTRICITY
AND GAS
METERS
$M
LAND,
BUILDINGS
AND
IMPROVE-
MENTS
$M
COMPUTER
AND TELCO
EQUIPMENT
$M
OTHER
PLANT AND
EQUIPMENT
$M
CAPITAL
WORK IN
PROGRESS
$M
TOTAL
$M
Carrying amount 1 July 20172,861.9448.9172.5107.9135.0111.33,837.5
Cost3,818.4756.0204.7208.9229.0111.35,328.3
Accumulated depreciation(956.5)(307.1)(32.2)(101.0)(94.0)–(1,490.8)
Additions––––2.5381.2383.7
Acquisition of business0.6–––––0.6
Transfers – Intangible assets–––––(24.9)(24.9)
Transfers – Other 223.873.81.96.334.1(339.9)–
Disposals(3.7)–––––(3.7)
Depreciation for the period(120.3)(44.1)(3.7)(14.3)(15.1)–(197.5)
Carrying amount 30 June
20182,962.3478.6170.799.9156.5127.73,995.7
Cost4,028.1829.2206.6206.6265.6127.75,663.8
Accumulated depreciation(1,065.8)(350.6)(35.9)(106.7)(109.1)–(1,668.1)
Additions–––––424.6424.6
Acquisition of business–––0.10.3–0.4
Transfers – Intangible assets–––––(31.1)(31.1)
Transfers – Other 269.8102.013.06.120.2(411.1)–
Disposals(1.9)(1.7)(0.1)–(0.1)–(3.8)
Depreciation for the period(120.0)(53.4)(3.4)(11.7)(12.7)–(201.2)
Carrying amount 30 June
20193,110.2525.5180.294.4164.2110.14,184.6
Cost4,280.4926.7219.4198.4286.0110.16,021.0
Accumulated depreciation(1,170.2)(401.2)(39.2)(104.0)(121.8)–(1,836.4)

Vector AR’19― notes to the financial statements (continued)
― 74
14. Property, plant
and equipment (PPE)
CONTINUED
PoliciesPPE is initially measured at cost, and subsequently stated at cost less depreciation and any
impairment losses. Cost may include:
—Consideration paid on acquisition
—Costs to bring the asset to working condition
—Materials used in construction
—Direct labour attributable to the item
—Interest costs attributable to the item
—A proportion of directly attributable overheads incurred
—If there is a future obligation to dismantle and/or remove the item, the costs of doing so
Capitalisation of costs stops when the asset is ready for use.
Subsequent expenditure that increases the economic benef its derived f rom the asset is capitalised.
Uninstalled assets are stated at the lower of cost and estimated recoverable amount.
Depreciation commences when an asset becomes available for use.
Depreciation of PPE, other than f reehold land and capital work in progress, is calculated on a
straight-line basis and expensed over the useful life of the asset. Useful lives are reviewed regularly
and adjusted as appropriate for the revised expectations.
Estimated useful lives (years) are as follows:
Buildings40 – 100Meters and meter inspections2 – 40
Distribution systems5 – 100Other plant and equipment3 – 55
Leasehold improvements5 – 20
JudgementsManagement must apply judgement when evaluating:
—Whether costs relate to bringing the items to working condition
—The amount of overhead costs which can be reasonably directly attributed to the construction
or acquisition of an asset
—Whether subsequent expenditure on the asset increases the future economic benef its to be
obtained f rom that asset
—Whether any indicators of impairment have occurred which might require impairment testing
of the current carrying values
Capital commitmentsThe estimated capital expenditure for PPE and software intangibles contracted for at balance date
but not provided is $83.4 million for the group (2018: $68.0 million).

75 ―
15. Leases
15.1 Right of use assets
LAND,
BUILDINGS
AND
IMPROVE-
MENTS
$M
OTHER
PLANT AND
EQUIPMENT
$M
TOTAL
$M
Opening net book value 1 July 2018–––
Movements on transition39.40.740.1
Additions2.13.75.8
Depreciation for the period(6.8)(1.0)(7.8)
Carrying amount 30 June 201934.73.438.1
Cost41.54.445.9
Accumulated amortisation(6.8)(1.0)(7.8)
15.2 Lease liabilities
maturity analysis
MINIMUM
LEASE
PAYMENTS
$M
INTEREST
$M
PRESENT
VALUE
$M
Within one year9.0(1.8)7.2
One to f ive years23.2(4.6)18.6
Beyond f ive years19.7(5.6)14.1
Total51.9(12.0)39.9
Current portion7.2
Non-current portion32.7
Total39.9
15.3 Lease expenses included
in profit or loss
2019
$M
Short-term leases0.3
Interest on leases2.0
15.4 Lease cashflows included
in cashflow statement
2019
$M
Total cash outflow in relation to leases8.4
PoliciesLease liabilities are measured at the present value of remaining lease payments, discounted at the
group’s incremental borrowing rate as at 1 July 2018. The weighted-average rate applied is 4.7%.
Right of use (ROU) assets are initially recognised at cost, comprising the initial amount of the lease
liability less any unamortised lease incentives. ROU assets are subsequently depreciated using the
straight-line method f rom the commencement date to the end of the lease term. In considering
the lease term, the group applies judgment in determining whether it is reasonably certain that an
extension or termination option will be exercised. The majority of the group’s leases are property
leases. These, in the main, give the group the right to renew the leases at the end of their lease terms.

Vector AR’19― notes to the financial statements (continued)
― 76
15. Leases
CONTINUED
15.5 Transition to NZ IFRS 16
Leases
$M
Operating lease commitment at 30 June 2018 as disclosed in the
Group’s financial statements40.2
Discounted using the incremental borrowing rate at 1 July 201830.2
Finance lease liabilities as at 1 July 20180.5
Recognition exemption for:
Short-term leases(0.5)
Extension options reasonably certain to be exercised13.0
Net changes in leases(2.3)
Lease liabilities recognised at 1 July 201840.9
TransitionThe group applied NZ IFRS 16 f rom 1 July 2018 using the modif ied retrospective approach.
Leases entered into and identif ied by the group include property leases, building access rights,
and vehicle leases.
In assessing whether an arrangement is, or contains a lease, the group considers whether the
contract conveys the right to control the use of an identif ied asset for a period of time in exchange
for consideration. To assess whether a contract conveys the right to control the use of an identif ied
asset, the group assesses whether:
—the contract involves the use of an identif ied asset;
—the group has the right to obtain substantially all of the economic benef its f rom use of the asset
throughout the period of use; and
—the group has the right to direct the use of the asset.
On transition, the group applied the following practical expedient available f rom NZ IFRS 16:
—to not recognise right of-use assets and liabilities for short-term leases with lease terms ending
within 12 months f rom the date of transition. The costs related to these leases are recognised in
the prof it or loss; and
—to not reassess whether an arrangement is, or contains a lease, at the date of transition if such
arrangement was previously identif ied as a lease applying NZ IAS 17 and IFRIC 4.
The table below summarises the key impacts on the group’s segment note for the year ended
30 June 2019.
Profit or Loss
for the year ended
30 June 2019
INCREASE / (DECREASE)
REGULATED
NETWORKS
$M
GAS
TRADING
$M
TECHNOLOGY
$M
CORPORATE
$M
TOTAL
$M
Operating expenses(1.3)(1.4)(4.3)(1.4)(8.4)
EBITDA1.31.44.31.48.4
Depreciation and
amortisation 1.11.34.21.27.8
Interest costs0.40.70.60.32.0
Profit/(loss)
before income tax(0.2)(0.6)(0.5)(0.1)(1.4)

77 ―
16. Trade and other payables
2019
$M
2018
$M
Current
Trade payables 154.6158.6
Employee benef its 18.015.6
Finance leases–0.3
Interest payable27.539.6
Balance at 30 June200.1214.1
Non-current
Finance leases–0.2
Other non-current payables1.8–
Balance at 30 June1.80.2
Other payablesVector accrues employee benef its which remain unused at balance date, and amounts expected
to be paid under short-term cash bonus plans.
17. Provisions
PROVISION FOR
DISTRIBUTION
TO CUSTOMERS
$M
DECOM-
MISSIONING
PROVISIONS
$M
OTHER
$M
TOTAL
$M
Balance 1 July 201816.622.67.847.0
Additions8.82.86.518.1
Unwinding of discount–2.0–2.0
Payments(16.6)–(4.3)(20.9)
Reversed to prof it or loss––(1.4)(1.4)
Balance at 30 June 20198.827.48.644.8
Comprising:
Current8.8–8.617.4
Non-current–27.4–27.4
PoliciesA provision is recognised where the likelihood of a resultant liability is more probable than not,
and the amount required to settle the liability can be reliably estimated.
DecommissioningThe decommissioning provisions represent the present value of the future expected costs for
dismantling the group’s gas treatment and cogeneration plants situated at Kapuni and depot
assets situated at various regions in New Zealand. Timing of economic outflows represents
management’s best estimate of the end of the useful life of the plant and associated assets.
Other provisionsThese provisions comprise amounts that may be required to be utilised within one year or a longer
period dependent on ongoing negotiations with third parties involved. There are currently no
foreseeable uncertainties which would be reasonably expected to lead to material changes in
the amounts provided.

Vector AR’19― notes to the financial statements (continued)
― 78
18. Borrowings
2019
CURRENCY
MATURITY
DATE
FACE
VALUE
$M
UNAMORT-
ISED COSTS
$M
FAIR VALUE
ADJUSTMENT
ON HEDGED
RISK
$M
CARRYING
VALUE
$M
FAIR
VALUE
$M
Bank facilities – variable rateNZDMar 2020
– Jul 2021395.0(1.2)–393.8393.8
Capital bonds – 5.7% f ixed rateNZD–307.2(1.0)–306.2345.7
Wholesale bonds – 4.996%
f ixed rate
NZDMar 2024
240.03.9–243.9278.7
Senior notes – f ixed rateUSDSep 2019
– Sep 20291,112.9(2.1)109.71,220.51,291.6
Floating rate notes – variable rateNZDOct 2020350.0(0.5)–349.5351.8
Unsubordinated bonds – 3.45%
f ixed rate
NZDMay 2025
250.0(2.9)–247.1277.3
Balance at 30 June2,655.1(3.8)109.72,761.02,938.9
2018
CURRENCY
MATURITY
DATE
FACE
VALUE
$M
UNAMORT-
ISED COSTS
$M
FAIR VALUE
ADJUSTMENT
ON HEDGED
RISK
$M
CARRYING
VALUE
$M
FAIR
VALUE
$M
Bank facilities – variable rateNZDMar 2020
– Feb 2021110.0(1.1)–108.9108.9
Capital bonds – 5.7% f ixed rateNZD–307.2(1.3)–305.9324.9
Wholesale bonds – 4.996%
f ixed rate
NZDMar 2024
240.04.4–244.4244.1
Senior notes – f ixed rateUSDSep 2019
– Sep 20291,112.9(2.6)52.61,162.91,150.7
Floating rate notes – variable rateNZDOct 2020350.0(1.0)–349.0342.4
Medium term notes – 7.625% f ixed
rate
GBPJan 2019
285.6(0.3)(61.1)224.2231.4
Balance at 30 June2,405.7(1.9)(8.5)2,395.32,402.2

79 ―
18. Borrowings
CONTINUED
PoliciesBorrowings are initially recorded at fair value, net of transaction costs. After initial recognition,
borrowings are measured at amortised cost with any difference between the initial recognised
amount and the redemption value being recognised in interest costs in prof it or loss over the
period of the borrowing using the effective interest rate method.
The carrying value of borrowings includes the principal converted at contract rates (face value),
unamortised costs and a fair value adjustment for the component of the risk that is hedged.
The fair value is calculated by discounting the future contractual cash flows at current market
interest rates that are available for similar f inancial instruments. The fair value of all borrowings,
calculated for disclosure purposes, are classif ied as level 2 on the fair value hierarchy, explained
further in Note 20.
Bank facilitiesNew floating rate bank facilities were added with a maturity date in July 2021.
Capital bondsCapital bonds of $307.2 million are unsecured, subordinated bonds with the next election date set
as 15 June 2022. The interest rate was f ixed at 5.7% at the previous election date of 15 June 2017.
Wholesale bondsIn June 2018, Vector issued a further $140.0 million of f ixed rate wholesale bonds to the existing
$100.0 million wholesale bonds. The bonds have a f ixed rate of 4.996% and mature in March 2024.
Senior notesIn October 2017, a total of $415.8 million (USD $300.0 million) of USD senior notes were issued.
$277.2 million (USD $200 million) matures in October 2027 and $138.6 million (USD $100.0 million)
matures in October 2029.
In October 2014, $150.0 million (USD $130.0 million) of USD senior notes were issued and matures in
October 2021.
In December 2010, $250.5 million (USD $182.0 million) of USD senior notes were issued and matures
in December 2022.
$296.6 million (USD $195 million) of USD senior notes are due to be repaid in September 2019.
Vector has bank facilities to provide liquidity cover for the repayment.
Floating rate notesThe $350.0 million floating rate notes are credit wrapped by MBIA Insurance Corporation.
Unsubordinated f ixed rate
bonds
On 27 May 2019, the group raised $250.0 million of unsubordinated bonds with a f ixed rate of 3.45%
maturing on 27 May 2025.
Medium term notesThe $285.6 million medium term notes were repaid in January 2019 using existing facilities.
CovenantsAll borrowings are unsecured and are subject to negative pledge arrangements and various
lending covenants. These have all been met for the years ended 30 June 2019 and 30 June 2018.

Vector AR’19― notes to the financial statements (continued)
― 80
19. Derivatives and
hedge accounting
CASH FLOW HEDGESFAIR VALUE HEDGESCOST OF HEDGINGTOTAL
2019
$M
2018
$M
2019
$M
2018
$M
2019
$M
2018
$M
2019
$M
2018
$M
Derivative assets
Cross currency swaps––116.056.8(6.7)(1.7)109.355.1
Interest rate swaps–1.4–––––1.4
Forward exchange
contracts–0.1–––––0.1
Total –1.5116.056.8(6.7)(1.7)109.356.6
Derivative liabilities
Cross currency swaps–(65.9)(4.9)(0.4)0.10.5(4.8)(65.8)
Interest rate swaps(78.2)(51.0)––––(78.2)(51.0)
Forward exchange
contracts(0.1)(0.2)––––(0.1)(0.2)
Total (78.3)(117.1)(4.9)(0.4)0.10.5(83.1)(117.0)
Key observable market data for fair value measurement20192018
Foreign currency exchange (FX) rates as at 30 June
NZD-GBP FX rateNot applicable0.5123
NZD-USD FX rate0.67190.6766
Interest rate swap rates
NZD1.36% to 1.80%1.89% to 3.03%
USD1.74% to 2.40%2.09% to 2.97%
GBPNot applicable0.50% to 1.64%
Sensitivity to changes in market rates
2019
$M
2018
$M
Impact on comprehensive income:
Sensitivity to change in interest rates
-1% change in interest rates(44.9)(35.3)
+1% change in interest rates42.533.9
Sensitivity to change in foreign exchange rates
-10% change in foreign exchange rates1.0(8.0)
+10% change in foreign exchange rates(1.0)7.9
Impact on profit or loss:
Sensitivity to change in interest rates
-1% change in interest rates(1.1)(0.4)
+1% change in interest rates1.30.3
Sensitivity to change in foreign exchange rates
-10% change in foreign exchange rates(3.6)–
+10% change in foreign exchange rates5.10.1

81 ―
19. Derivatives and
hedge accounting
CONTINUED
PoliciesVector initially recognises derivatives at fair value on the date the derivative contract is entered into,
and subsequently they are re-measured to their fair value at each balance date. All derivatives are
classif ied as level 2 on the fair value hierarchy explained in Note 20.
Fair value is calculated as the present value of the estimated future cash flows based on observable
interest yield curves and/or foreign exchange market prices. The carrying values of the f inancial
instruments are the fair values excluding any interest receivable or payable, which is separately
presented in the balance sheet in other receivables or other payables.
The resulting gain or loss on re-measurement is recognised in prof it or loss immediately, unless the
derivative is designated and effective as a hedging instrument, in which case the timing of recognition
in prof it or loss depends on the nature of the designated hedge relationship.
Vector designates certain derivatives as either:
—Fair value hedges (of the fair value of recognised assets or liabilities or f irm commitments); or
—Cash flow hedges (of highly probable forecast transactions).
At inception each transaction is documented, detailing:
—The economic relationship and the hedge ratio between hedging instruments and hedged
items;
—The risk management objectives and strategy for undertaking the hedge transaction; and
—The assessment (initially and on an ongoing basis) of whether the derivatives that are used in
the hedging transaction are highly effective in offsetting changes in fair values or cash flows of
hedged items.
The underlying risk of the derivative contracts is identical to the hedged risk component (i.e. the
interest rate risk and the foreign exchange risk) therefore the group has established a one-to-one
hedge ratio.
Hedge accounting is discontinued when the hedge instrument expires or is sold, terminated,
exercised, or no longer qualif ies for hedge accounting.
Fair value hedgesVector has entered into cross currency interest rate swaps (the hedging instruments) to hedge
the interest rate risk and foreign currency risk (the hedged risk) arising in relation to its USD senior
notes (the hedged items). These transactions have been designated into fair value hedges.
The following are recognised in prof it or loss:
—The change in fair value of the hedging instruments; and
—The change in fair value of the underlying hedged items attributable to the hedged risk.
Once hedging is discontinued, the fair value adjustment to the carrying amount of the hedged
item arising f rom the hedged risk is amortised through prof it or loss f rom that date through to
maturity of the hedged item.

Vector AR’19― notes to the financial statements (continued)
― 82
19. Derivatives and
hedge accounting
CONTINUED
Cash flow hedgesVector has entered into interest rate swaps (the hedging instruments) to hedge the variability in
cash flows arising f rom interest rate movements in relation to its NZD floating rate notes.
The effective portion of changes in the fair value of the hedging instruments are recognised in
other comprehensive income.
The following are recognised in prof it or loss:
—any gain or loss relating to the ineffective portion of the hedging instrument; and
—fair value changes in the hedging instrument previously accumulated in other comprehensive
income, in the periods when the hedged item is recognised in prof it or loss.
Once hedging is discontinued, any cumulative gain or loss previously recognised in other
comprehensive income is recognised in prof it or loss either:
—at the same time as the forecast transaction; or
—immediately if the transaction is no longer expected to occur.
Market rate sensitivityAll derivatives are measured at fair value. A change in the market data used to determine fair
value will have an impact on Vector’s f inancial statements.
The table on page 80 shows the sensitivity of the f inancial statements to a range of possible
changes in the market data at balance date.
Rights to offsetVector enters into derivative transactions under International Swaps and Derivatives Association
(ISDA) master agreements. The ISDA agreements do not meet the criteria for offsetting in the
balance sheet for accounting purposes. This is because Vector does not have any currently legally
enforceable right to offset recognised amounts. Under the ISDA agreements the right to offset is
enforceable only on the occurrence of future events such as a default on the bank loans or other
credit events. The potential net impact of this offsetting is disclosed in column ‘amount after
applying rights of offset under ISDA agreements.’ Vector does not hold and is not required to
post collateral against its derivative positions.
2019
$M
2018
$M
DERIVATIVES
POSITION AS
PER BALANCE
SHEET
AMOUNT
AFTER
APPLYING
RIGHTS OF
OFFSET
UNDER ISDA
AGREEMENTS
DERIVATIVES
POSITION AS
PER BALANCE
SHEET
AMOUNT
AFTER
APPLYING
RIGHTS OF
OFFSET
UNDER ISDA
AGREEMENTS
Derivative assets109.360.056.610.6
Derivative liabilities (83.1)(33.8)(117.0)(71.0)
Net amount26.226.2(60.4)(60.4)

83 ―
19. Derivatives and
hedge accounting
CONTINUED
19.1 Effects of hedge accounting on the financial position and performance
The tables below demonstrate the impact of hedged items and the hedging instruments designated in hedging relationships:
Cash flow hedges
2019
FACE
VALUE
$M
WEIGHTED
AVERAGE
RATE
$M
CARRYING
AMOUNT
ASSETS/
(LIABILITIES)
$M
CHANGE IN
FAIR VALUE
USED FOR
MEASURING
INEFFECTIVE-
NESS
$M
HEDGING
(GAIN)
OR LOSS
RECOGNISED
IN CASH
FLOW HEDGE
RESERVE
$M
HEDGE
INEFFECTIVE-
NESS
RECOGNISED
IN PROFIT OR
LOSS
$M
(GAIN)
OR LOSS
RECOGNISED
IN COST OF
HEDGING
$M
Interest risk
Hedged item: NZD floating
rate exposure on borrowings(1,070.0)(80.1)
Hedging instrument: Interest
rate swaps(1,450.0)3.8%(78.2)(78.2)78.2––
Total–
Cash flow hedges
2018
FACE
VALUE
$M
WEIGHTED
AVERAGE
RATE
$M
CARRYING
AMOUNT
ASSETS/
(LIABILITIES)
$M
CHANGE IN
FAIR VALUE
USED FOR
MEASURING
INEFFECTIVE-
NESS
$M
HEDGING
(GAIN)
OR LOSS
RECOGNISED
IN CASH
FLOW HEDGE
RESERVE
$M
HEDGE
INEFFECTIVE-
NESS
RECOGNISED
IN PROFIT OR
LOSS
$M
(GAIN)
OR LOSS
RECOGNISED
IN COST OF
HEDGING
$M
Interest risk
Hedged item: NZD floating
rate exposure on borrowings(790.0)(49.0)
Hedging instrument: Interest
rate swaps(1,100.0)4.2%(49.6)(49.6)49.6––
Interest and exchange risk
Hedged item: GBP f ixed rate
exposure on borrowings(285.6)(66.2)
Hedging instrument: Cross
currency swaps (285.6)10.8%(65.6)(65.9)4.8–(0.3)
Total–
The NZD floating rate exposure includes $350.0 million f rom the floating rate notes (2018: $350.0 million) and $720.0 million arising
f rom hedging the USD senior bonds (2018: $440.0 million), as allowable under NZ IFRS 9.
The interest rate swaps include $380.0 million of forward starting swaps (2018: $310.0 million).

Vector AR’19― notes to the financial statements (continued)
― 84
19. Derivatives and
hedge accounting
CONTINUED
19.1 Effects of hedge accounting on the financial position and performance CONTINUED
Fair value hedges
2019
FACE
VALUE
$M
WEIGHTED
AVERAGE
RATE
$M
ACCUM-
ULATED FAIR
VALUE HEDGE
ADJUSTMENTS
$M
CARRYING
AMOUNT
ASSETS/
(LIABILITIES)
$M
CHANGE IN
FAIR VALUE
OF THE
HEDGED
ITEM
$M
CHANGE IN
FAIR VALUE
OF THE
HEDGING
INSTRUMENT
$M
CHANGE IN
VALUE IN
COST OF
HEDGING
$M
Interest and exchange risk
Hedged item: USD f ixed rate
exposure on borrowings(1,112.9)(109.7)(1,220.5)(57.2)
Hedging instrument:
Cross currency swaps(1,112.9)floating104.554.7(5.1)
Total(57.2)54.7
Fair value hedges
2018
FACE
VALUE
$M
WEIGHTED
AVERAGE
RATE
$M
ACCUM-
ULATED FAIR
VALUE HEDGE
ADJUSTMENTS
$M
CARRYING
AMOUNT
ASSETS/
(LIABILITIES)
$M
CHANGE IN
FAIR VALUE
OF THE
HEDGED
ITEM
$M
CHANGE IN
FAIR VALUE
OF THE
HEDGING
INSTRUMENT
$M
CHANGE IN
VALUE IN
COST OF
HEDGING
$M
Interest and exchange risk
Hedged item: USD f ixed rate
exposure on borrowings(1,112.9)(52.6)(1,162.9)(29.1)
Hedging instrument: Cross
currency swaps(1,112.9)floating55.032.21.8
Total(29.1)32.2
Hedging instruments and hedged items are included in the line items “Derivatives” and “Borrowings” respectively in the balance sheet.
Ineffectiveness is the sum of the change in fair value of the hedged item and the change in fair value of the hedging instrument.
The source of ineffectiveness is largely due to counterparty credit risk on the derivative instruments. Hedge ineffectiveness is included
in the “Fair value change on f inancial instruments” in the prof it or loss.

85 ―
19. Derivatives and
hedge accounting
CONTINUED
19.2 Reconciliation of
changes in hedge reserves
Hedge reserves
2019
CASHFLOW
HEDGE
RESERVE
$M
COST OF
HEDGING
$M
TOTAL
$M
Opening balance39.30.840.1
Hedging gains or losses recognised in OCI52.25.457.6
Transferred to prof it or loss(28.4)–(28.4)
Recognised as basis adjustment to non-f inancial assets–––
Deferred tax on change in reserves(6.7)(1.5)(8.2)
Closing balance56.44.761.1
Hedge reserves
2018
CASHFLOW
HEDGE
RESERVE
$M
COST OF
HEDGING
$M
TOTAL
$M
Opening balance47.21.849.0
Hedging gains or losses recognised in OCI33.2(1.4)31.8
Transferred to prof it or loss(44.4)–(44.4)
Recognised as basis adjustment to non-f inancial assets0.2–0.2
Deferred tax on change in reserves3.10.43.5
Closing balance39.30.840.1
20. Financial risk
management
PoliciesFair value measurement hierarchy
Financial instruments measured at fair value are classif ied according to the following levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; or
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset
or liability, either directly (prices) or indirectly (derived f rom prices); or
Level 3: Inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
Risk management framework
Vector has a comprehensive treasury policy, approved by the Board, to manage f inancial risks arising
f rom business activity. The policy outlines the objectives and approach that the group applies to
manage:
—Interest rate risk;
—Credit risk;
—Liquidity risk;
—Foreign exchange risk; and
—Funding risk.
For each risk type, any position outside the policy limits requires the prior approval of the Board.
Each risk is monitored on a regular basis and reported to the board.

Vector AR’19― notes to the financial statements (continued)
― 86
20. Financial risk
management
CONTINUED
20.1 Interest rate risk
Interest rate exposure
2019
< 1 YEAR
$M
1 – 2 YEARS
$M
2 – 5 YEARS
$M
> 5 YEARS
$M
TOTAL
$M
Interest rate exposure: borrowings1,041.6–947.7665.82,655.1
Derivative contracts:
Interest rate swaps(1,150.0)450.0320.0380.0–
Cross currency swaps816.3–(400.5)(415.8)–
Net interest rate exposure707.9450.0867.2630.02,655.1
Interest rate exposure
2018
< 1 YEAR
$M
1 – 2 YEARS
$M
2 – 5 YEARS
$M
> 5 YEARS
$M
TOTAL
$M
Interest rate exposure: borrowings745.6296.6707.7655.82,405.7
Derivative contracts:
Interest rate swaps(1,070.0)(30.0)790.0310.0–
Cross currency swaps1,112.9(296.6)(400.5)(415.8)–
Net interest rate exposure788.5(30.0)1,097.2550.02,405.7
PoliciesVector is exposed to interest rate risk through its borrowing activities.
Interest rate exposures are managed primarily by entering into derivative contracts. The main
objectives are to minimise the cost of total borrowings, control variations in the interest expense of
the borrowings f rom year to year, and where practicable to match the interest rate risk prof ile of the
borrowings with the risk prof ile of the group’s assets.
The Board has set and actively monitors maximum and minimum limits for the net interest rate
exposure prof ile.
20.2 Credit risk
PoliciesCredit risk represents the risk of cash flow losses arising f rom counterparty defaults. Vector is
exposed to credit risk in the normal course of business f rom:
—Trade receivable transactions with business and mass market residential customers; and
—Financial instruments transactions with f inancial institutions.
The carrying amounts of f inancial assets represent the group’s maximum exposure to credit risk.
The group has credit policies in place to minimise the impact of exposure to credit risk and
associated f inancial losses:
—The Board must approve placement of cash, short-term cash deposits or derivatives with
f inancial institutions whose credit rating is less than A+. As at 30 June 2019, all f inancial
instruments are held with f inancial institutions with credit rating above A+;
—The Board sets limits and monitors exposure to f inancial institutions; and
—Exposure is spread across a range of f inancial institutions. Where we deem there is credit
exposure to energy retailers and customers, the group minimises its risk by performing credit
evaluations and/or requiring a bond or other form of security.

87 ―
20. Financial risk
management
CONTINUED
20.3 Liquidity risk
Contractual cash flows maturity profile
2019
PAYABLE
< 1 YEAR
$M
PAYABLE
1 – 2 YEARS
$M
PAYABLE
2 – 5 YEARS
$M
PAYABLE
> 5 YEARS
$M
TOTAL
CONTRACTUAL
CASH FLOWS
$M
Non-derivative financial liabilities
Trade payables154.6–––154.6
Contract liabilities9.79.619.02.240.5
Lease liabilities9.06.916.319.751.9
Borrowings: interest89.474.8147.074.4385.6
Borrowings: principal685.2350.01,011.6696.52,743.3
Derivative financial (assets)/liabilities
Cross currency swaps: inflow(332.3)(33.8)(532.0)(512.2)(1,410.3)
Cross currency swaps: outflow326.125.8458.1484.21,294.2
Forward exchange contracts: inflow(13.0)–––(13.0)
Forward exchange contracts: outflow13.1–––13.1
Net settled derivatives
Interest rate swaps 29.722.628.86.287.3
Group contractual cash flows971.5455.91,148.8771.03,347.2
Contractual cash flows maturity profile
2018
PAYABLE
< 1 YEAR
$M
PAYABLE
1 – 2 YEARS
$M
PAYABLE
2 – 5 YEARS
$M
PAYABLE
> 5 YEARS
$M
TOTAL
CONTRACTUAL
CASH FLOWS
$M
Non-derivative financial liabilities
Trade payables160.3–––160.3
Contract liabilities8.510.722.42.644.2
Borrowings: interest109.182.6161.891.2444.7
Borrowings: principal334.5288.21,118.3683.42,424.4
Derivative financial (assets)/liabilities
Cross currency swaps: inflow(291.7)(330.0)(546.2)(524.3)(1,692.2)
Cross currency swaps: outflow349.7332.2498.3530.91,711.1
Forward exchange contracts: inflow(8.4)–––(8.4)
Forward exchange contracts: outflow8.5–––8.5
Net settled derivatives
Interest rate swaps 21.022.113.3(0.8)55.6
Group contractual cash flows691.4405.81,267.9783.13,148.2
The above table shows the timing of non-discounted cash flows for all f inancial instrument liabilities and derivatives.
The cash flows for capital bonds, included in borrowings, are disclosed as payable within 2 – 5 years as the next election date set for
the capital bonds is 15 June 2022 and the bonds have no contractual maturity date.
PoliciesVector is exposed to liquidity risk where there is a risk that the group may encounter diff iculty in
meeting its day to day obligations due to the timing of cash receipts and payments.
The objective is to ensure that adequate liquid assets and funding sources are available at all times
to meet both short term and long term commitments. The board has set a minimum headroom
requirement for committed facilities over Vector’s anticipated 18 month peak borrowing requirement.
At balance date, in addition to short-term deposits, Vector has access to undrawn funds of
$585.0 million (2018: $545.0 million).

Vector AR’19― notes to the financial statements (continued)
― 88
20. Financial risk
management
CONTINUED
20.4 Foreign exchange risk
Policies Vector is exposed to foreign exchange risk through its borrowing activities, foreign currency
denominated expenditure, and through our Australian subsidiaries.
Foreign exchange exposure is primarily managed through entering into derivative contracts.
The Board requires that all signif icant foreign currency borrowings and expenditure are hedged
into NZD at the time of commitment to drawdown or when the exposure is highly probable. Hence,
at balance date there is no signif icant exposure to foreign currency risk.
20.5 Funding risk
PoliciesFunding risk is the risk that Vector will have diff iculty ref inancing or raising new debt on comparable
terms to existing facilities. The objective is to spread the concentration of risk so that if an event occurs
the overall cost of funding is not unnecessarily increased. Details of borrowings are shown in Note 18.
The Board has set the maximum amount of debt that may mature in any one f inancial year.
21. Cash flows
21.1 Reconciliation of net profit/
(loss) to net cash flows from/
(used in) operating activities
Reconciliation of net profit/(loss) to net cash flows from/
(used in) operating activities
2019
$M
2018
$M
Net prof it/(loss) for the period84.0149.8
Items classified as investing activities
Non-cash items classif ied as investing activities(3.4)12.8
Other items classif ied as investing activities1.6(0.1)
Net loss/(gain) on sale of investments–(1.1)
(1.8)11.6
Items classified as financing activities
Items associated with lease liabilities1.5–
Non-cash items
Depreciation and amortisation246.8225.9
Non-cash portion of interest costs (net)(5.5)1.7
Fair value change on f inancial instruments2.5(3.1)
Associates (share of net (prof it)/loss)(0.6)1.5
Impairment46.6–
Increase/(decrease) in deferred tax 11.68.6
Increase/(decrease) in provisions(4.2)21.4
Other non-cash items(1.6)(2.4)
295.6253.6
Changes in assets and liabilities
Trade and other payables (12.4)0.9
Contract liabilities(5.2)11.2
Contract assets0.3(3.6)
Inventories3.2(0.3)
Trade and other receivables2.8(0.1)
Income tax (19.9)(33.2)
(31.2)(25.1)
Net cash flows from/(used in) operating activities348.1389.9

89 ―
21. Cash flows
CONTINUED
21.2 Reconciliation of movement
of liabilities to cash flows arising
from financing activities
Reconciliation of movement
of liabilities to cash flows arising
from financing activities
LEASE
LIABILITIESBORROWINGSDERIVATIVESTOTAL
As at 30 June 2018–2,395.360.42,455.7
Adoption of IFRS 1640.9––40.9
Balance at 1 July 201840.92,395.360.42,496.6
Net draw downs–249.4–249.4
Lease liabilities payments(6.2)––(6.2)
Financing cash flows(6.2)249.4–243.2
Cost of debt raising–(3.3)–(3.3)
Fair value changes–118.2(86.6)31.6
Borrowing fees paid–(4.4)–(4.4)
Amortisation of debt raising costs–6.5–6.5
Premium released(0.7)–(0.7)
ROU asset additions5.8––5.8
Other(0.6)––(0.6)
As at 30 June 201939.92,761.0(26.2)2,774.7
21.3 Cash and cash equivalents
PoliciesCash and cash equivalents are carried at amortised cost less an allowance for expected credit losses.
Cash and cash equivalents includes deposits that are on call.
22. Equity
22.1 Share Capital
SharesThe total number of authorised and issued shares is 1,000,000,000 (2018: 1,000,000,000).
All ordinary issued shares are fully paid, have no par value and carry equal voting rights and equal
rights to a surplus on winding up of the parent.
At balance date 132,035 shares (2018: 86,148) are allocated to the employee share purchase scheme.
22.2 Capital Management
PoliciesVector’s objectives in managing capital are:
—To safeguard the ability of entities within the group to continue as a going concern;
—To provide an adequate return to shareholders by pricing products and services commensurate
with the level of risk; and
—Maintain an investment grade credit rating.
Vector manages and may adjust its capital structure in light of changes in economic conditions
and for the risk characteristics of the underlying assets. To achieve this Vector may:
—Adjust its dividend policy;
—Return capital to shareholders;
—Issue new shares; or
—Sell assets to reduce debt.
Vector primarily monitors capital on the basis of the gearing ratio.

Vector AR’19― notes to the financial statements (continued)
― 90
22. Equity
CONTINUED
22.3 Financial ratios
Earnings per share
2019
$M
12 MONTHS
2018
$M
12 MONTHS
Net prof it attributable to owners of the parent 82.9148.2
Weighted average ordinary shares outstanding during the period
(number of shares)999,889,595998,370,185
Total earnings per share8.3 cents14.8 cents
Net tangible assets per share
2019
$M
2018
$M
Net assets attributable to owners of the parent 2,332.42,440.4
Less total intangible assets (1,354.9)(1,398.2)
Total net tangible assets977.51,042.2
Ordinary shares outstanding (number of shares)999,867,965999,913,852
97.8 cents104.2 cents
Economic net debt to economic net debt plus adjusted
equity ratio (“gearing ratio”)
2019
$M
2018
$M
Face value of borrowings2,655.12,405.7
Less cash and cash equivalents(27.6)(27.9)
Economic net debt2,627.52,377.8
Total equity2,349.42,457.9
Adjusted for hedge reserves61.140.1
Adjusted equity 2,410.52,498.0
Economic net debt plus adjusted equity 5,038.04,875.8
52.2%48.8%
22.4 Reserves
Hedge reservesHedge reserves comprise the cash flow hedge reserve and cost of hedging.
The cash flow hedge reserve records the effective portion of changes in the fair value of derivatives
that are designated as cash flow hedges.
The gain or loss relating to the ineffective portion is recorded in prof it or loss within interest
costs (net).
During the year, $28.4 million (2018: $44.4 million) was transferred f rom the cash flow hedge reserve
to interest expense.
Cost of hedging records the change in the fair value of the cost to convert foreign currency into
New Zealand dollars as required under NZ IFRS 9.
Other reservesOther reserves comprise:
—A share-based payment reserve relating to the employee share purchase scheme. When shares
are vested to the employee, the reserve is offset with a reduction in treasury shares.
—A foreign currency translation reserve to record exchange differences arising f rom the
translation of the group’s foreign operations.
—A reserve recording the group’s share of its associate’s other comprehensive income.
—A reserve to record the fair value movements in the group’s investments in f inancial assets.

91 ―
23. Related party
transactions
2019
$M
2018
$M
Transactions with Entrust
Dividends paid 122.0122.0
2019
$M
2018
$M
Transactions with associates and joint operations
Purchases of electricity and steam f rom KEJV8.08.9
Sale of gas to KEJV9.89.4
Sales of operations and maintenance services to KEJV 1.91.7
Sales of administration and other services to KEJV0.10.1
Purchase of vegetation management services f rom Tree Scape
Limited9.37.4
Directors’ fees received f rom Tree Scape Limited0.10.1
Transactions with key management personnel
Salary and other short-term employee benef its5.15.4
Directors’ fees0.90.9
Related partiesRelated parties of the group include the associates and joint operations disclosed in Note 12, the
ultimate parent entity (Entrust) and key management personnel (directors and the executive team).
OtherThe group may transact on an arms’ length basis with companies in which directors have a
disclosed interest.
Receivables / (Payables)
2019
$M
2018
$M
Tree Scape Limited(0.4)–
KEJV0.30.3
24. Contingent liabilities
DisclosuresThe directors are aware of other claims that have been made against entities of the group and,
where appropriate, have recognised provisions for these within Note 17.
Except for the liability associated with Vector’s breaches of electricity network quality measures
described in Note 3, no other material contingent liabilities have been identif ied.
25. Events after balance date
ApprovalThe f inancial statements were approved by the Board on 22 August 2019.
Final dividendOn 22 August 2019, the Board declared a f inal and fully imputed dividend for the year ended 30
June 2019 of 8.25 cents per share.
No adjustment is required to these f inancial statements in respect of this event.

Vector AR’19
― 92
― Independent Auditor’s Report

© 2019 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.

Combined Independent Auditor’s and
Limited Assurance Report
General
Our assurance procedures consisted of the audit of the consolidated financial statements of Vector Limited and
limited assurance procedures on Carbon Baseline presented in Vector Limited’s annual report for the period
ended 30 June 2019.
Independent Auditor’s Report
To the shareholders of Vector Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of Vector Limited
(the ’company’) and its subsidiaries (the 'group') on
pages 51 to 91:
i. present fairly in all material respects the group’s
financial position as at 30 June 2019 and its
financial performance and cash flows for the
year ended on that date; and
ii. comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— the consolidated balance sheet as at 30 June
2019;
— the consolidated statements of profit or loss,
other comprehensive income, changes in
equity and cash flows for the year then ended;
and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 (Revised) Code of
Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (‘IESBA
Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.

93 ―

Our firm has also provided other services to the group in relation to regulatory assurance services, other
assurance services, IT forensic and other forensic services. Subject to certain restrictions, partners and
employees of our firm may also deal with the group on normal terms within the ordinary course of trading
activities of the business of the group. These matters have not impaired our independence as auditor of the
group. The firm has no other relationship with, or interest in, the group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $9 million determined with reference to a benchmark of group profit before
tax. We chose the benchmark because, in our view, this is a key measure of the group’s performance.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements.
The key audit matter How the matter was addressed in our audit
1. Capitalisation and asset lives (Property, plant and equipment of $4,185 million, with additions during the
year of $425 million). Refer to Note 14 of the financial statements.
Capitalisation of costs and useful lives
assigned to these assets are a key audit
matter due to the significance of property,
plant and equipment to the group’s
business, and due to the judgement
involved in determining the carrying value of
these assets, principally:
— the decision to capitalise or expense
costs relating to the metering,
electricity and gas distribution
networks. This decision depends on
whether the expenditure is considered
to enhance the network (and therefore
capital), or to maintain the current
operating capability of the network (and
therefore an expense). There is also
judgement when estimating the extent
of recovering overhead, particularly
involving digital projects; and
— the estimation of the useful life of the
asset once the costs are capitalised.
Estimated lives range between 2 and
Our audit procedures in this area included, among others:
—
examining the operating effectiveness of controls related to
the approval of capital projects;
— assessing the nature of capitalised costs by checking a
sample of costs to invoice to determine whether the
description of the expenditure met the capitalisation criteria
in the relevant accounting standards;
— assessing the useful economic lives stated in the
accounting policies of the group by comparing to industry
benchmarks and our knowledge of the business and its
operations; and
— assessing whether the useful economic lives of each
individual asset capitalised in the current period was within
the stated policies.
We found no material errors in the nature and amount
capitalised in the period and that the estimated useful lives of
assets were within an acceptable range when compared to
those used in the industry.

Vector AR’19
― 94
― Independent Auditor’s (continued)

The key audit matter How the matter was addressed in our audit
100 years, resulting from the diversity
of property, plant and equipment across
a portfolio of businesses. There is also
judgment when estimating asset lives
due to the uncertainty of the impact of
technological change.
2. Impairment assessment of a) the Gas Trading segment b) the Regulated Networks segment and c) the E-
Co Products cash generating unit (inclusive of $1,234 million of goodwill). Refer to Note 13 of the financial
statements
We considered the impairment assessment
of the Gas Trading segment, including $157
million of goodwill, to be a key audit matter
due to the decreasing margin trading
environment.
We considered the impairment assessment
of the Regulated Networks segment to be a
key audit matter due to the significance of
goodwill of $1,050 million to the financial
position of the group and the significant
judgment used to estimate future pricing of
the regulated revenue streams beyond the
timeframe of the current Commerce
Commission regulatory price paths.
We considered the impairment assessment
of the E-Co Products cash generating unit,
including goodwill, to be a key audit matter
due to the poor performance in FY19 and
underperformance against expectations
since its acquisition in FY17.

The procedures we performed to evaluate the impairment
assessments included:
— assessing whether the methodology adopted in the
discounted cash flow models was consistent with accepted
valuation approaches of NZ IAS 36 Impairment of Assets
and within the energy industry;
— evaluating the significant future cash flow assumptions by
comparing to historical trends, customer contracts and
supplier agreements, Asset Management Plans, regulatory
pricing models and budgets;
— comparing the discount rates applied to the estimated
future cash flows and the terminal growth rates to relevant
benchmarks using our own valuation specialists;
— challenging the above assumptions and judgements by
performing sensitivity analysis, considering a range of likely
outcomes based on various scenarios;
— considering actual and possible gas M&A activity in New
Zealand and how that informs the carrying value and
classification of the Gas Trading segment assets (including
goodwill);
— specifically in connection with the E-Co Products
impairment charge of $46.6 million recognised in FY19,
evaluating a number of scenarios of expected performance
in the 5 year forecast period of the DCF analysis; and
— comparing the group’s total net assets as at 30 June 2019
of $2,349 million to its market capitalisation of $3,780
million at 30 June 2019 which implied total headroom of
$1,431 million.
For each segment we found the methodology to be consistent
with industry norms. We found:
— the discount and terminal growth rates were in an
acceptable industry range;
— future cash flow assumptions were supported by
comparison to the sources we considered above; and

The key audit matter How the matter was addressed in our audit
— the overall comparison of the group’s net assets to market
capitalisation did not indicate an impairment.
3. Valuation of investments in the technology segment, as part of the group’s strategy to ‘Create a New
Energy Future’
During the 30 months ending 30 June 2019
the group has invested circa $270 million in
new energy technologies and markets as
part of its strategy to ’Create a New Energy
Future’, including but not limited to:
— acquisitions of E-Co Products group
Limited (refer point 2 above) and
PowerSmart NZ Limited;
— investment in mPrest Systems (2003)
Limited in October 2017; and
— continued investment in developing a
presence in the Australian electricity
metering market to coincide with
changes to the market regulation and
structure.
We consider the valuation of investments in
new energy technologies and markets to be
a key audit matter because of the
judgement involved whether through;
— valuing intangible assets and goodwill
acquired in a business or asset
purchase;
— assessing the fair value of investments,
when carried at fair value, in absence of
a listed-market reference; or
— considering impairment in markets
where the future outcomes are more
uncertain than in the group’s
established businesses.

The procedures we performed to conclude on the valuation
assessments included:
— evaluating the performance of the Australian metering
business, in particular understanding the status and critically
challenging the expected future outlook of the group’s bids
for meter data and deployment contracts with Australian
energy retailers;
— considering actual and possible metering M&A activity in
Australasia and how that informs the carrying value and
classification of the group’s metering assets (including
goodwill);
— assessing whether there are indicators of impairment in
respect of any of these investments; and
— assessing the fair value of mPrest, including various
techniques that could be employed as the maturity of
mPrest evolves.
We did not identify any material errors in the valuations
attributed to the investments in the new non-regulated activities
outlined opposite.

Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s 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 audit work, this independent
auditor’s report, or any of the opinions we have formed.

95 ―

The key audit matter How the matter was addressed in our audit
— the overall comparison of the group’s net assets to market
capitalisation did not indicate an impairment.
3. Valuation of investments in the technology segment, as part of the group’s strategy to ‘Create a New
Energy Future’
During the 30 months ending 30 June 2019
the group has invested circa $270 million in
new energy technologies and markets as
part of its strategy to ’Create a New Energy
Future’, including but not limited to:
— acquisitions of E-Co Products group
Limited (refer point 2 above) and
PowerSmart NZ Limited;
— investment in mPrest Systems (2003)
Limited in October 2017; and
— continued investment in developing a
presence in the Australian electricity
metering market to coincide with
changes to the market regulation and
structure.
We consider the valuation of investments in
new energy technologies and markets to be
a key audit matter because of the
judgement involved whether through;
— valuing intangible assets and goodwill
acquired in a business or asset
purchase;
— assessing the fair value of investments,
when carried at fair value, in absence of
a listed-market reference; or
— considering impairment in markets
where the future outcomes are more
uncertain than in the group’s
established businesses.

The procedures we performed to conclude on the valuation
assessments included:
— evaluating the performance of the Australian metering
business, in particular understanding the status and critically
challenging the expected future outlook of the group’s bids
for meter data and deployment contracts with Australian
energy retailers;
— considering actual and possible metering M&A activity in
Australasia and how that informs the carrying value and
classification of the group’s metering assets (including
goodwill);
— assessing whether there are indicators of impairment in
respect of any of these investments; and
— assessing the fair value of mPrest, including various
techniques that could be employed as the maturity of
mPrest evolves.
We did not identify any material errors in the valuations
attributed to the investments in the new non-regulated activities
outlined opposite.

Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s 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 audit work, this independent
auditor’s report, or any of the opinions we have formed.

Vector AR’19
― 96
― Independent Auditor’s (continued)

Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
— implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is 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 audit of the consolidated financial
statements
Our objective is:
— to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
Independent Limited Assurance Report
To the Directors of Vector Limited
Report on the Carbon Baseline
Conclusion
Our limited assurance conclusion has been formed on the basis of the matters outlined in this report.
Based on our limited assurance engagement, which is not a reasonable assurance engagement or an audit,
nothing has come to our attention that would lead us to believe that the Carbon Baseline, presented in
Vector Limited’s (‘Vector’) Annual Report, has not, in all material respects, been prepared in accordance with
the Greenhouse Gas Protocol (‘the GHG Protocol’) for the year ended 30 June 2019

Information subject to assurance
We have performed an engagement to provide limited assurance that nothing has come to our attention that
would lead us to believe Vector’s carbon emissions baseline totals (‘Carbon Baseline’) presented in Vector’s
Annual Report, has not been prepared, in all material respects, in accordance with the GHG Protocol for the year
ended 30 June 2019.
Criteria
The scope of our limited assurance services was Vector’s Carbon Baseline prepared in accordance with the GHG
Protocol and presented in Vector’s Annual Report for year ended 30 June 2019.
The operations included in the scope were those deemed by Vector to be within their current operational control
boundary. The scope of our services excluded greenhouse gas emissions outside of the reporting period and
outside of Vector’s designated control boundary.
Standards we followed
We conducted our limited assurance engagement in accordance with International Standard on Assurance
Engagements (New Zealand) 3000 (Revised) Assurance Engagements other than audits or reviews of historical
financial information and International Standard on Assurance Engagements (New Zealand) 3410 Assurance
Engagements on Greenhouse Gas Statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion. In accordance with those standards we have:
— used our professional judgement to plan and perform the engagement to obtain limited assurance that the
Carbon Baseline is free from material misstatement, whether due to fraud or error
— considered relevant internal controls when designing our assurance procedures, however we do not
express a conclusion on the effectiveness of these controls; and
— ensured that the engagement team possess the appropriate knowledge, skills and professional
competencies.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for a reasonable assurance engagement. Consequently the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
Restriction of distribution and use
Our report should not be regarded as suitable to be used or relied on by any party’s other than Vector for any
purpose or in any context. Any party other than Vector who obtains access to our report or a copy thereof and
chooses to rely on our report (or any part thereof) will do so at its own risk.
To the fullest extent permitted by law, we accept or assume no responsibility and deny any liability to any party
other than Vector for our work, for this independent limited assurance report, or for the conclusions we have
reached.
Our report is released to Vector on the basis that it shall not be copied, referred to or disclosed, in whole (save
for Vector's own internal purposes) or in part, without our prior written consent.
Directors’ responsibility for the Carbon Baseline
The Directors of Vector are responsible for the preparation and fair presentation of the Carbon Baseline,
presented in the Annual Report, in accordance with the GHG Protocol. This responsibility includes such internal
control as the directors determine is necessary to enable preparation of a Carbon Baseline that is free from
material misstatement whether due to fraud or error.

97 ―

Information subject to assurance
We have performed an engagement to provide limited assurance that nothing has come to our attention that
would lead us to believe Vector’s carbon emissions baseline totals (‘Carbon Baseline’) presented in Vector’s
Annual Report, has not been prepared, in all material respects, in accordance with the GHG Protocol for the year
ended 30 June 2019.
Criteria
The scope of our limited assurance services was Vector’s Carbon Baseline prepared in accordance with the GHG
Protocol and presented in Vector’s Annual Report for year ended 30 June 2019.
The operations included in the scope were those deemed by Vector to be within their current operational control
boundary. The scope of our services excluded greenhouse gas emissions outside of the reporting period and
outside of Vector’s designated control boundary.
Standards we followed
We conducted our limited assurance engagement in accordance with International Standard on Assurance
Engagements (New Zealand) 3000 (Revised) Assurance Engagements other than audits or reviews of historical
financial information and International Standard on Assurance Engagements (New Zealand) 3410 Assurance
Engagements on Greenhouse Gas Statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion. In accordance with those standards we have:
— used our professional judgement to plan and perform the engagement to obtain limited assurance that the
Carbon Baseline is free from material misstatement, whether due to fraud or error
— considered relevant internal controls when designing our assurance procedures, however we do not
express a conclusion on the effectiveness of these controls; and
— ensured that the engagement team possess the appropriate knowledge, skills and professional
competencies.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for a reasonable assurance engagement. Consequently the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
Restriction of distribution and use
Our report should not be regarded as suitable to be used or relied on by any party’s other than Vector for any
purpose or in any context. Any party other than Vector who obtains access to our report or a copy thereof and
chooses to rely on our report (or any part thereof) will do so at its own risk.
To the fullest extent permitted by law, we accept or assume no responsibility and deny any liability to any party
other than Vector for our work, for this independent limited assurance report, or for the conclusions we have
reached.
Our report is released to Vector on the basis that it shall not be copied, referred to or disclosed, in whole (save
for Vector's own internal purposes) or in part, without our prior written consent.
Directors’ responsibility for the Carbon Baseline
The Directors of Vector are responsible for the preparation and fair presentation of the Carbon Baseline,
presented in the Annual Report, in accordance with the GHG Protocol. This responsibility includes such internal
control as the directors determine is necessary to enable preparation of a Carbon Baseline that is free from
material misstatement whether due to fraud or error.

Vector AR’19
― 98
― Independent Auditor’s (continued)

Our responsibility
Our responsibility is to express a conclusion to the directors on whether anything has come to our attention that
would lead us to believe that the Carbon Baseline, presented in Vector’s Annual Report, has not been prepared,
in all material respects, in accordance with the GHG Protocol.
Our independence and quality control
We have complied with the independence and other ethical requirements of Professional and Ethical Standard
(Revised) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
The firm applies Professional and Ethical Standard 3 (Amended) and accordingly maintains a comprehensive
system of quality control including documented policies and procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Our firm has also provided other services to the group in relation to regulatory assurance services, other
assurance services, IT forensic and other forensic services. Subject to certain restrictions, partners and
employees of our firm may also deal with the group on normal terms within the ordinary course of trading
activities of the business of the group. These matters have not impaired our independence as assurance
practitioner of the group. The firm has no other relationship with, or interest in, the group.
Other information
The Directors, on behalf of the group, are responsible for the other information. The other information comprises
the information included in the group’s Annual Report, but does not include consolidated financial statements
and our Independent Auditor’s Report thereon. Our opinion on the consolidated financial statements does not
cover any other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.

The engagement partners on the engagement resulting in this Combined Independent Auditor’s and Limited
Assurance Report are

Malcolm Downes – Audit partner
Laura Youdan – Assurance partner

For and on behalf of

KPMG
Auckland
22 August 2019

99 ―
Interests register
Each company in the group is required to maintain an interests register in which the particulars of
certain transactions and matters involving the directors must be recorded. The interests registers
for Vector Limited and its subsidiaries are available for inspection at their registered off ices.
Particulars of entries in the interests registers made during the year ended 30 June 2019 are set out
in this Statutory Information section.
Information used by directors
During the f inancial year there were no notices f rom directors of Vector Limited, or any subsidiary,
requesting to use information received in their capacity as a director which would not otherwise
have been available to them.
Indemnification and insurance of directors and officers
As permitted by the constitution and the Companies Act 1993, Vector Limited has indemnif ied
its directors, and those directors who are directors of subsidiaries against potential liabilities and
costs they may incur for acts or omissions in their capacity as directors. In addition, Vector Limited
has indemnif ied certain senior employees against potential liabilities and costs they may incur for
acts or omissions in their capacity as employees of Vector Limited, or directors of Vector subsidiaries
or associates.
During the f inancial year, Vector Limited paid insurance premiums in respect of directors and
certain senior employees’ liability insurance which covers risks normally covered by such policies
arising out of acts or omissions of directors and employees in their capacity as such. Insurance is
not provided for criminal liability or liability or costs in respect of which an indemnity is prohibited
by law.
Donations
Vector Limited made donations of $615 during the year ended 30 June 2019. Subsidiaries of Vector
Limited made donations of $12,004 during the year ended 30 June 2019.
Credit rating
At 30 June 2019 Vector Limited had a Standard & Poor’s credit rating of BBB/stable, and a Moody’s
credit rating of Baa1/stable.
NZX regulation waivers and rulings
Under a decision dated 22 June 2005 Vector Limited was granted waivers f rom the requirements of
listing rules 3.1.1, 3.1.2, 7.3.3 to 7.3.8, and 9.1.1 to allow its constitution to contain provisions which are
not ordinarily contained in the constitution of a company listed by NZX, giving certain approval
rights to Entrust. Vector has been given a non-standard designation by NZX due to the inclusion of
these provisions in its constitution. Under a decision dated 12 September 2008, Vector Limited was
granted a waiver f rom listing rule 9.3.1 allowing Entrust to vote on shareholder resolutions for
director remuneration increases. Under a decision dated 6 October 2006 Vector Limited was
granted a waiver f rom listing rule 3.5.1 permitting payment of director remuneration to board
members of Liquigas Limited.
On 1 July 2019 Vector Limited transitioned to updated listing rules. Vector has applied to NZX
Regulation to redocument the existing waivers summarised above for the equivalent provisions in
the updated listing rules. Until NZX Regulation has f inalised this process, Vector Limited is relying
on a class waiver dated 19 November 2018 that carries over the waivers to the new listing rules until
30 June 2020.
Exercise of NZX powers
NZX did not exercise any of its powers set out in Listing Rule 5.4.2 (relating to powers to cancel,
suspend or censure an issuer) with respect to Vector Limited.
Trustees of Entrust
During the year ended 30 June 2019, Vector Limited made payments to M Buczkowski, J Carmichael
and K Sherry, trustees of Entrust (Vector Limited’s majority shareholder) totalling $196,996 in respect
of their roles as directors on the Vector Limited board.
Subsidiaries and associates
A list of each of the company’s subsidiaries and associates is contained on pages 68 and 69.
The company has not gained or lost control of any entity during the year ended 30 June 2019.
Vector AR’19― statutory information
statutory information

Vector AR’19
― 100
― statutory information (continued)
Directors
The following directors of Vector Limited and current group companies held off ice as at 30 June 2019 or resigned (R) as a director
during the year ended 30 June 2019. Directors marked (A) were appointed during the year.
PARENTDIRECTORS
Vector LimitedD Bartholomew (R), M Buczkowski (A), J Carmichael (R), A Carter (A), S Krieger (R),
J Mason, A Paterson, P Rebstock (A), K Sherry, M Stiassny (R), R Thomson, B Turner (A).
All of the above directors in off ice at 30 June 2019 are independent directors, except for M Buczkowski and K Sherry who are trustees
of Entrust (Vector Limited’s majority shareholder).
SUBSIDIARIESDIRECTORS
Advanced Metering Assets LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
Advanced Metering Services LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
Arc Innovations LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
Cristal Air International LimitedS Mackenzie
E-Co Products Group LimitedS Mackenzie
HRV Australia Pty LimitedS Mackenzie, J Sheridan
HRV Clean Water LimitedS Mackenzie
HRV Filters LimitedS Mackenzie
Liquigas LimitedA Andriopoulos (A), H Blackburn (A), B Boswell (R), A Gilbert (R), L Glover (R), P Goodeve
(A), N Hannan (A), E Krogh (A), R Middelbeek (A), D Molloy (R), G O’Brien, J Seymour (R),
R Sharp, B Talacek, C Teichert (A) (R), M Trigg
NGC Holdings LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
On Gas LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
PowerSmart NZ LimitedS Mackenzie
Safe Filters LimitedS Mackenzie
Safe Windows LimitedS Mackenzie
SolPho LimitedS Mackenzie
UnitedNetworks LimitedS Mackenzie, D Molloy (R)
Vector Advanced Metering Assets
(Australia) LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
Vector Advanced Metering Services
(Australia) Pty LimitedS Mackenzie, J Sheridan
Vector Communications LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
Vector Energy Solutions (Australia)
Pty LimitedS Mackenzie, J Sheridan
Vector Energy Solutions LimitedS Mackenzie
Vector ESPS Trustee LimitedS Mackenzie, D Molloy (R)
Vector Gas Trading LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
Vector Kapuni LimitedS Mackenzie, D Molloy (R)
Vector Management Services LimitedS Mackenzie, D Molloy (R)
Vector Metering Data Services LimitedJ Carmichael (R), J Mason, A Paterson, K Sherry, M Stiassny (R), R Thomson
Ventilation Australia Pty LimitedS Mackenzie, J Sheridan

101 ―
Directors
CONTINUED
ASSOCIATESDIRECTORS
Tree Scape LimitedC Baudinet (A), C Beddoe (A), A Botha, E Chignell, S Mackenzie (R), D Molloy (R), K Smith,
B Whiddett
Directors’ remuneration and value of other benef its received f rom Vector Limited and current group companies for the year ended
30 June 2019:
DIRECTORS OF VECTOR LIMITED
PAID BY
PARENT
$
PAID BY
SUBSIDIARIES
$
D Bartholomew (R)36,032–
M Buczkowski (A)59,487–
J Carmichael (R)36,859–
A Carter (A)16,775–
S Krieger (R)36,032–
J Mason100,650–
A Paterson162,462–
P Rebstock (A)21,015–
K Sherry100,650–
M Stiassny (R)74,040–
R Thomson100,650–
B Turner (A)21,015–
765,667–
DIRECTORS OF SUBSIDIARIES
PAID BY
PARENT
$
PAID BY
SUBSIDIARIES
$
A Andriopoulos (A)–417*
H Blackburn (A)–250*
B Boswell (R)–2,079
L Glover (R)–2,079
P Goodeve (A)–2,500
N Hannan (A)–1,409
E Krogh (A)–1,630
R Middelbeek (A)–417*
D Molloy (R)–3,629*
G O’Brien–6,250
J Seymour (R)–4,750
R Sharp–5,000*
B Talacek–6,250*
M Trigg–44,200
–80,860
* Directors’ fees relating to any Vector Limited employee are paid to the company.

Vector AR’19
― 102
― statutory information (continued)
Directors
CONTINUED
Directors of Vector Limited
Entries in the interests register of Vector Limited during the year to 30 June 2019 that are not set out elsewhere in this annual report:
DIRECTORENTITYPOSITION
M BuczkowskiEntrustTrustee
A CarterAir New Zealand LimitedChairman
ANZ Bank NZ LimitedDirector
Capital Solutions LimitedAdvisor
Capital Education LimitedAdvisor
Fisher & Paykel Healthcare LimitedChairman
Fletcher Building LimitedDirector
Loughborough Investments LimitedDirector and shareholder
Maurice Carter Family TrustTrustee
J MasonAir New Zealand LimitedDirector
Beloit College, Wisconsin, USATrustee
New Zealand Assets Management LimitedDirector
University of AucklandTrustee and Adjunct Professor of Management
Westpac New Zealand LimitedDirector
Zespri Group LimitedDirector
A PatersonAM Paterson TrustTrustee
BJ Paterson TrustTrustee
Donny Charitable TrustTrustee
Forestry Industry Safety CouncilChair
Health Quality & Safety CommissionMember
Kiwi Wealth GroupChair
Te Aupouri Commercial Development LimitedChair
Te Aupouri Fisheries Management LimitedChair
P RebstockAccident Compensation CorporationChair
Auckland District Health BoardChair (Finance and Assurance Committee)
Auckland TransportDirector
Kiwi Group Holdings LimitedChair
New Zealand Defence Force BoardChair
New Zealand PoliceChair (Women’s Advisory Network)
On Being BoldDirector and shareholder
Synergia LimitedAdvisory board member
Tonkin & Taylor LimitedChair (Finance and Risk Committee)
Ngāti Whātua Ōrākei Whai Maia LimitedChair

103 ―
Directors
CONTINUED
Directors of Vector Limited
CONTINUED
Entries in the interests register of Vector Limited up to 30 June 2019 that are not set out elsewhere in this annual report:
CONTINUED
DIRECTORENTITYPOSITION
K SherryBell-Booth Sherry LimitedDirector and shareholder
Energy Eff iciency and Conservation Authority (EECA)Director
Energy Trusts of New ZealandChair
EntrustTrustee
Sasha & Otto LimitedDirector and shareholder
R ThomsonCalnan Holdings LimitedDirector and shareholder
Energy Trusts of New ZealandConsultant
R & M Thomson Holdings LimitedDirector and shareholder
B TurnerElectricity Authority’s Security and Reliability CouncilMember
Fonterra Co-operative Group LimitedEmployee
The Arapaho Springs TrustTrustee
The Arapaho Springs Investment TrustTrustee
University of Colorado’s JP Morgan Commodity CentreAdvisory board member
The entities listed above against each director may transact with Vector Limited and its subsidiaries in the normal course of business.
Auckland based directors (M Buczkowski, A Carter, J Mason, A Paterson, P Rebstock, K Sherry and B Turner) are Vector Limited
residential electricity customers.
Directors of subsidiaries
There are no entries in the interests register of subsidiaries up to 30 June 2019 that are not set out elsewhere in this annual report.

Vector AR’19
― 104
― statutory information (continued)
Employees
The number of current employees of the company and the group receiving remuneration and
benef its above $100,000 in the year ended 30 June 2019 are set out in the table below:
CURRENT EMPLOYEESGROUPCOMPANY
$100,001 – $110,0005344
$110,001 – $120,0006547
$120,001 – $130,0005544
$130,001 – $140,0005244
$140,001 – $150,0004737
$150,001 – $160,0002826
$160,001 – $170,0002420
$170,001 – $180,0001816
$180,001 – $190,0001916
$190,001 – $200,0001615
$200,001 – $210,00097
$210,001 – $220,00097
$220,001 – $230,00055
$230,001 – $240,000106
$240,001 – $250,00053
$250,001 – $260,00043
$260,001 – $270,00033
$270,001 – $280,00044
$280,001 – $290,00032
$290,001 – $300,00043
$300,001 – $310,00021
$310,001 – $320,00032
$320,001 – $330,00022
$330,001 – $340,00022
$340,001 – $350,0001–
$350,001 – $360,00022
$360,001 – $370,00011
$370,001 – $380,0001–
$380,001 – $390,00021
$390,001 – $400,00033
$450,001 – $460,00021
$470,001 – $480,0001–
$490,001 – $500,00011
$540,001 – $550,00011
$550,001 – $560,00011
$740,001 – $750,00011
$830,001 – $840,00011
$1,670,001 – $1,680,00011
461373

105 ―
Employees
CONTINUED
The number of former employees of the company and the group receiving remuneration and
benef its above $100,000 in the year ended 30 June 2019 are set out in the table below:
FORMER EMPLOYEES (INCLUDING ANY TERMINATION PAYMENTS)GROUPCOMPANY
$100,001 – $110,00053
$110,001 – $120,00054
$120,001 – $130,00032
$130,001 – $140,00073
$140,001 – $150,00053
$150,001 – $160,00044
$160,001 – $170,00011
$170,001 – $180,00031
$180,001 – $190,00021
$190,001 – $200,0001–
$200,001 – $210,0001–
$220,001 – $230,00022
$260,001 – $270,00011
$310,001 – $320,00011
$420,001 – $430,0001–
$690,001 – $700,00011
4327
No employee of the group appointed as a director of a subsidiary or associate company receives
or retains any remuneration or benef its as a director. The remuneration and benef its of such
employees, received as employees, are included in the relevant bandings disclosed above, where
the annual remuneration and benef its exceed $100,000.

Vector AR’19
― 106
― statutory information (continued)
Bondholder statistics
NZDX debt securities distribution as at 30 June 2019:
5.70% capital bonds
RANGE
NUMBER OF
BONDHOLDERS
PERCENTAGE OF
BONDHOLDERS
NUMBER OF
BONDS HELD
PERCENTAGE OF
BONDS HELD
5,000 – 9,99964516.43%3,490,0001.14%
10,000 – 49,9992,48263.24%49,851,70016.23%
50,000 – 99,99949312.56%28,285,3009.21%
100,000 – 499,9992777.06%43,144,00014.04%
500,000 – 999,99980.20%4,759,0001.55%
1,000,000 plus200.51%177,675,00057.83%
3,925100.00%307,205,000100.00%
Twenty largest registered capital bond holders as at 30 June 2019:
BONDHOLDER
NUMBER OF
BONDS HELD
PERCENTAGE OF
BONDS HELD
Forsyth Barr Custodians Limited <1-CUSTODY>30,973,00010.08%
FNZ Custodians Limited24,399,0007.94%
Custodial Services Limited <A/C 3>20,984,0006.83%
Custodial Services Limited <A/C 4>14,251,0004.64%
Custodial Services Limited <A/C 2>13,855,0004.51%
JBWere (NZ) Nominees Limited <NZ RESIDENT A/C>8,528,0002.78%
Investment Custodial Services Limited <A/C C>7,805,0002.54%
Custodial Services Limited <A/C 1>7,797,0002.54%
Custodial Services Limited <A/C 18>7,137,0002.32%
Masfen Securities Limited5,980,0001.95%
Citibank Nominees (New Zealand) Limited – NZCSD <CNOM90>4,450,0001.45%
Forsyth Barr Custodians Limited <ACCOUNT 1 E>4,140,0001.35%
Tappenden Holdings Limited3,856,0001.26%
NZPT Custodians (Grosvenor) Limited – NZCSD <NZPG40>3,016,0000.98%
Francis Horton Tuck + Catherine Ann Tuck <PUKETIHI A/C>2,300,0000.75%
FNZ Custodians Limited <DRP NZ A/C>2,295,0000.75%
Custodial Services Limited <A/C 16>2,151,0000.70%
FNZ Custodians Limited <DTA NON RESIDENT A/C>2,076,0000.68%
Fletcher Building Educational Fund Limited2,000,0000.65%
National Nominees New Zealand Limited – NZCSD <NNLZ90>1,980,0000.64%
169,973,00055.34%

107 ―
Bondholder statistics
CONTINUED
3.45% senior bonds
RANGE
NUMBER OF
BONDHOLDERS
PERCENTAGE OF
BONDHOLDERS
NUMBER OF
BONDS HELD
PERCENTAGE OF
BONDS HELD
5,000 – 9,99910814.61%659,0000.26%
10,000 – 49,99947263.88%9,558,0003.82%
50,000 – 99,9998511.50%5,321,0002.13%
100,000 – 499,999476.36%7,538,0003.02%
500,000 – 999,999101.35%6,468,0002.59%
1,000,000 plus172.30%220,456,00088.18%
739100.00%250,000,000100.00%
Twenty largest registered senior bond holders as at 30 June 2019:
BONDHOLDER
NUMBER OF
BONDS HELD
PERCENTAGE OF
BONDS HELD
Forsyth Barr Custodians Limited <1-CUSTODY>40,288,00016.12%
National Nominees New Zealand Limited – NZCSD <NNLZ90>25,500,00010.20%
FNZ Custodians Limited 23,430,0009.37%
HSBC Nominees (New Zealand) Limited O/A Euroclear Band
-NZCSD <HKBN95>15,000,0006.00%
Custodial Services Limited <A/C 4>12,857,0005.14%
Custodial Services Limited <A/C 3>10,737,0004.29%
BNP Paribas Nominees (NZ) Limited – NZCSD <BPSS40>9,610,0003.84%
Citibank Nominees (New Zealand) Limited – NZCSD <CNOM90>8,930,0003.57%
BNP Paribas Nominees (NZ) Limited - NZCSD <COGN40>8,800,0003.52%
Custodial Services Limited <A/C 2>8,436,0003.37%
Investment Custodial Services Limited <A/C C>8,072,0003.23%
Custodial Services Limited <A/C 1>5,362,0002.14%
HSBC Nominees (New Zealand) Limited – NZCSD <HKBN90>5,320,0002.13%
TEA Custodians Limited Client Property Trust Account –
NZCSD <TEAC40>4,840,0001.94%
Generate Kiwisaver Public Trust Nominees Limited
<NZCSD> <NZPT44>4,620,0001.85%
New Zealand Methodist Trust Association4,000,0001.60%
Custodial Services Limited <A/C 18>3,782,0001.51%
JBWere (NZ) Nominees Limited <NZ RESIDENT A/C>3,257,0001.30%
New Zealand Permanent Trustees Limited – NZCSD <NZPT43>3,019,0001.21%
Mint Nominees Limited – NZCSD <NZP440>2,875,0001.15%
208,735,00083.48%

Vector AR’19
― 108
― statutory information (continued)
Shareholder statistics
Twenty largest registered shareholders as at 30 June 2019:
SHAREHOLDER
ORDINARY
SHARES HELD
PERCENTAGE
OF ORDINARY
SHARES HELD
Entrust751,000,00075.10%
Citibank Nominees (New Zealand) Limited15,111,5051.51%
Custodial Services Limited <A/C 3>13,190,3421.32%
Custodial Services Limited <A/C 4>11,470,1631.15%
FNZ Custodians Limited10,625,5001.06%
HSBC Nominees (New Zealand) Limited A/C State Street8,558,9940.86%
Custodial Services Limited <A/C 2>8,276,7090.83%
HSBC Nominees (New Zealand) Limited7,775,0600.78%
Accident Compensation Corporation5,515,1870.55%
Investment Custodial Services Limited <A/C C>5,018,6900.50%
JBWere (NZ) Nominees Limited <NZ Resident A/C4,771,1570.48%
JP Morgan Chase Bank NA NZ Branch-Segregated Clients Acct4,600,4330.46%
Custodial Services Limited <A/C 18>4,555,0950.45%
National Nominees New Zealand Limited3,182,3900.32%
ANZ Custodial Services New Zealand Limited2,986,1490.30%
New Zealand Depository Nominee Limited <A/C 1 CASH
ACCOUNT>2,876,2140.29%
Custodial Services Limited <A/C 1>2,760,9700.27%
BNP Paribas Nominees (NZ) Limited2,590,0560.26%
Forsyth Barr Custodians Limited <1-CUSTODY>2,369,9410.24%
BNP Paribas Nominees (NZ) Limited1,810,4640.18%
869,045,01986.91%
Substantial product holders as at 30 June 2019:
SHAREHOLDER
NUMBER OF
RELEVANT
INTEREST
VOTING
PRODUCTS
HELD
PERCENTAGE
OF VOTING
PRODUCTS
HELD
Entrust 751,000,00075.10%
Alastair Bell, Michael Buczkowski, William Cairns, Paul Hutchison and Karen Sherry are the
registered holders of the shares held by Entrust.

109 ―
Shareholder statistics
CONTINUED
As at 30 June 2019, voting products issued by Vector Limited totalled 1,000,000,000 ordinary shares.
Ordinary shares distribution as at 30 June 2019:
RANGE
NUMBER OF
SHAREHOLDERS
PERCENTAGE OF
SHAREHOLDERS
NUMBER OF
SHARES HELD
PERCENTAGE OF
SHARES HELD
1 – 4996,33220.63%1,982,0610.20%
500 – 9993,19610.41%2,496,3300.25%
1,000 – 4,99915,67651.08%28,485,9662.85%
5,000 – 9,9992,7278.88%18,350,1731.83%
10,000 – 49,9992,5048.16%45,071,1414.51%
50,000 – 99,9991590.52%10,311,0721.03%
100,000 plus990.32%893,303,25789.33%
30,693100.00%1,000,000,000100.00%
Analysis of shareholders as at 30 June 2019:
SHAREHOLDER TYPE
NUMBER OF
SHAREHOLDERS
PERCENTAGE OF
SHAREHOLDERS
NUMBER OF
SHARES HELD
PERCENTAGE OF
SHARES HELD
Entrust10.00%751,000,00075.10%
Companies9403.06%10,471,3671.05%
Individual Holders16,43653.55%54,197,4075.42%
Joint9,05629.51%41,728,3194.17%
Nominee Companies5881.92%136,899,75413.69%
Other3,67211.96%5,703,1530.57%
30,693100.00%1,000,000,000100.00%
The following current directors of the parent are holders (either benef icially or non-benef icially)
of Vector Limited ordinary shares as at 30 June 2019:
DIRECTOR
NUMBER
OF SHARES
M Buczkowski1,322
A Carter (as a shareholder of Loughborough Investments Limited)10,000
J Mason (as a trustee of the Trumbull Trust)18,500
A Paterson (as trustee of the A M Paterson Trust)10,000
A Paterson (as trustee of the B J Paterson Trust)10,700
K Sherry840
R Thomson45,000
Alastair Bell, Michael Buczkowski, William Cairns, Paul Hutchison and Karen Sherry are the
registered holders of the 751,000,000 ordinary shares held by Entrust. Michael Buczkowski
and Karen Sherry are directors of Vector Limited.
The following disclosures are made pursuant to section 148 of the Companies Act 1993, in relation
to dealings during the year ended 30 June 2019 by directors of Vector Limited in the ordinary
shares of Vector Limited:
There were no acquisitions or disposals of relevant interests.

Vector AR’19
― 110
― financial calendar and directory
Financial calendar
2019
Final dividend paid 16 September
Annual meeting 23 September
2020
First quarter operating statistics October
Second quarter operating statistics January
Half year result and interim report February
Interim dividend* April
Third quarter operating statistics April
Fourth quarter operating statistics July
Full year result and annual report August
Final dividend* September
* Dividends are subject to Board determination.
Investor information
Ordinary shares in Vector Limited are listed and quoted on the New Zealand Stock Market (NZSX) under the company code VCT.
Vector also has capital bonds and unsubordinated f ixed rate 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.
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
This annual report is dated
22 August 2019 and signed
on behalf of the Board by:
Dame Alison Paterson Jonathan Mason
Chair Director
insight
creative.co.nz

VEC196

vector.co.nz
creating a new
energy future

Full Year Results Announcement Date Notice of Annual Meeting 2019

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.