Vector Half Year Results

creating a new energy future



Steady HY20 adjusted EBITDA result in line with expectations.
Regulatory reset gives greater clarity for outlook and dividend policy.

Vector delivered a steady earnings performance for the HY 2020 period, with the adjusted
EBITDA of $264.5 million in line with last year’s comparable result.

Vector Chair 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, these gains were partially offset by increased
maintenance to improve electricity network reliability.

“Vector’s shareholders will receive a partially imputed HY dividend of 8.25 cents per share.

“When the Vector Board approved the current dividend policy in 2017 it was noted that the
policy would be reviewed having regard to the impact on Vector’s revenue of the Commerce
Commission’s default price-quality path regulatory reset (DPP3) for Vector’s electricity
network. The DPP3 period comes into effect from 1 April 2020.

“The Board has decided to move from a progressive dividend policy of increasing dividends
by 0.25 cents per annum, to a policy of maintaining the current dividend of 16.5 cents per
annum with the expectation of continuing to increase dividends in the future based on
projected growth in Vector’s businesses. Vector will attach imputation credits to dividends at
a rate of 10.5%,” she said.

Vector will ensure that in considering the payment of any dividend, the company will:

• maintain its current BBB credit rating with Standard & Poor’s, or equivalent;
• have the financial capacity to meet its medium-term investment and operating
requirements, and;
• comply with all funding covenants and the solvency test in the Companies Act.
Dividends are made only at the discretion of the Board of Vector. The payment of dividends
is not guaranteed and Vector’s dividend policy may change.
Vector’s group net profit after tax was $80.5 million, down $2.8 million (or 3.4%) on the prior
year’s result. This result was largely driven by higher depreciation and amortisation partially
offset by higher capital contributions and lower interest cost.

Dame Alison said, “During the period we have invested significant capital expenditure to
improve asset reliability, support growth in Auckland, as well as investment to support
increasing deployment of advanced meters. Total capital expenditure in the first six months
has been $240.0 million, an increase of $38.9 million or 19.3% on the prior period.”

Landmark decisions during the period, particularly confirmed regulatory settings and the sale
of the Kapuni Gas Treatment Plant to Todd Energy, have helped further refine Vector’s
outlook and direction.

market release
25 February 2020

creating a new energy future


Vector Group Chief Executive, Simon Mackenzie said, “Acknowledging the challenges and
opportunities ahead of us, we remain committed to our new energy future vision
and are confident we have the right strategy in place to deliver for our customers.

“We acknowledge that due to our recently confirmed regulatory settings, we are limited
in how much we can invest in growing and maintaining our networks to keep pace
with Auckland’s rapid growth, while also addressing additional pressures driven by the
electrification of transport and changing customer behaviours. We remain committed
to working with our stakeholders to overcome these challenges, and to targeting investment
as efficiently as we can.

“In terms of our core electricity business, Vector remains committed to meeting its regulatory
compliance targets with a number of initiatives focused on improving restoration times. This
included commissioning a new equipment depot in Helensville to help speed up restoration
efforts in the North and West of Auckland.
“As was reported in our most recent operational update, SAIDI minutes for the nine months
ending 31 December 2019 were 13.7% lower than the comparable period, which reflects the
significant investment being made to improve network resilience, as well as fewer extreme
weather events,” he said.

Adjusted EBITDA for electricity and gas distribution in the six months to 31
December 2019 was down $9.5 million to $189.2 million – a 4.8% decrease compared with
the prior period. During the period Vector also invested regulated capex of $156.0 million to
lift network integrity and enable Auckland growth.
Adjusted EBITDA for the Metering segment was $76.1 million in the six-months to 31
December 2019, up $8.0 million or 11.7% from a year earlier. Metering capex invested in the
first half-year increased by 8.9% to $65.0 million, with most of this increase reflecting the
acceleration of deployment of new advanced meters in Australia.

“Our advanced meter base grew 10.8% to 1.64 million from 1.48 million the year before. We
have now deployed over 221,000 advanced meters in Australia and are on target to install
between 130,000 and 140,000 meters in FY20.

“The growth and innovation opportunities for metering in both New Zealand and Australia are
significant. With continued investment and focus on customer service, Vector Metering is on
track to deliver another solid performance in FY20”, Simon said.

Gas Trading business’s financial performance in the six-months to 31 December 2019 saw
adjusted EBITDA flat at $20.8 million.

ENDS

To read a copy of the HY20 Report, click here: https://www.vector.co.nz/investors/reports

Media contact
Elissa Downey, Acting Senior Manager Corporate Communications,

creating a new energy future


Elissa.downey@vector.co.nz 021 866 146

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

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

---

•
•
•
•
•
FY19FY20
Dividend (cents per share)
InterimFinal

•
•
•
•
•
•
•
•
•
•

688.6
264.7
201.1
83.3
219.1
82.5
699.6
264.5
240.0
80.5
254.0
82.5
RevenueAdjusted EBITDACapital ExpenditureNet ProfitOperating Cash FlowHalf Year Dividend
H1 2020 FINANCIAL PERFORMANCE ($M)
H1 2019
H1 2020

-9.5
+0.1
+8.0
+1.2
H1 2019Regulated NetworksGas TradingMeteringCorporate and Other*H1 2020
H1 2020 ADJUSTED EBITDA MOVEMENT ($M)
•
•
•

83.3
80.5
-0.1
+2.8
-8.3
+5.5
-2.7
H1 2019EarningsCapital ContributionsDepreciation and
amortisation
InterestOtherH1 2020
MOVEMENT IN NET PROFIT AFTER TAX ($M)

$125.0m
62%
$6.0m
3%
$59.7m
30%
$10.4m
5%
$156.0m
65%
$3.0m 1%
$65.0m
27%
$16.0m
7%
GROSS CAPEX BY SEGMENT
Regulated Networks
Gas Trading
Metering
Corporate and Other
H1 2019
H1 2020
H1 2019H1 2020
Net capexCapital contributions
•
•
•

2,6822,7411,9682,2532,4492,704
52.9%
53.4%
43.9%
47.3%
49.6%
52.9%
Dec 14Dec 15Dec 16Dec 17Dec 18Dec 19
NET ECONOMIC DEBT & GEARING ($M)
Net economic debt ($m)Gearing
•
•

198.7
189.2
-1.2
-5.2
-1.4
-1.7
H1 2019Electricity revenue
(net of
passthrough)
Higher
Maintenance
Higher Personnel
costs
OtherH1 2020
ADJUSTED EBITDA MOVEMENT ($M)
•
−
−
−
•
•
•
•
•
•
−
−
3,003
3,780
3,916
4,583
6,090
5,160
6,625
1,499
1,550
1,538
1,907
1,656
1,669
1,863
H1 2014H1 2015H1 2016H1 2017H1 2018H1 2019H1 2020
NEW CONNECTIONS
ElectricityGas

•
•
•
•
•
12 7
13 2
13 8
14 3
14 8
13 6
14 0
14 6
15 4
15 9
RY21RY22RY23RY24RY25
DPP 3 Opex Allowances vs. AMP 2019 ($'m)
Opex AllowanceOpex (AMP 19)
2 11
2 10
2 13
2 10
19 7
2 4 3
2 4 7
2 5 2
2 70
2 2 9
RY21RY22RY23RY24RY25
DPP 3 Capex Allowances vs. AMP 2019 ($'m)
Capex AllowanceCommissioned Assets (AMP 19)

20.7
20.8
-0.8
1.7
-0.4
-0.4
H1 2019Natural GasOne off provision
release
Lower liquidsOtherH1 2020
ADJUSTED EBITDA MOVEMENT ($M)
364
358
352
320
302
266
229
203
158
300
301
284
248
240
200
185
155
FY20FY19FY18FY17FY16FY15FY14FY13FY12
BOTTLE SWAP VOLUMES (‘000 cylinders)
H1H2
•
̅
̅
̅
•
−
−
•
̅
−
•

68.1
76.1
5.0
2.6
1.0
-0.6
H1 2019Advanced Meters
in Australia
Advanced Meters
in NZ
Indirect cost
savings
OtherH1 2020
ADJUSTED EBITDA MOVEMENT ($M)
•
−
−
−
•
H1 2019H1 2020

•
−
−
•
−
•
•

H1 2016H1 2017H1 2018H1 2019H1 2020
Regulated Networks
196.4195.7192.7198.7189.2
Gas Trading
25.223.718.420.720.8
Metering
50.855.760.168.176.1
Corporate and Other*
-18.9-18.1-21.2-22.8-21.6
Total Group
253.5257.0250.0264.7264.5

REGULATED NETWORKSMETERINGGAS TRADINGCORPORATE AND OTHER
1
Total capex156.0125.0+24.865.059.7+8.93.06.0-50.016.010.4+53.8

---

flexible energy
solutions for tomorrow
INTERIM REPORT 2020

half year snapshot
Consumer empowerment and choice
Our energy networks
$156.0 MILLION
Invested
1
to lift network
2
integrity and enable
Auckland growth ($6.0 million every week)
1,642,635
Vector advanced meters in New Zealand and Australia
13.7%
Improvement in system average interruption
duration index (SAIDI) minutes
3

120
Customers across Auckland participating in a smart
electric vehicle charging trial
8,488
New electricity and gas connections
1.7%
Lift in 9kg LPG bottle swaps
AWARD-WINNING
Vector won two prestigious awards at the Enterprise, Digital
and IT Architecture Excellence Awards held in New York
737 k W
Solar energy system installed in Aitutaki
(with 500kWh energy storage)
8 VECTOR LIGHTS
events for the people of Auckland
Vector Interim Report 2020

Financial sustainabilityEmpowered people
Clean energy
Battery Industry Group established to develop a product
stewardship scheme for end of life batteries
$264.5 MILLION
Adjusted EBITDA
5
755 TONNES
Of CO
2
emissions saved from entering the environment
at Vector EV charging stations
4
INTERIM DIVIDEND
8.25 CENTS PER SHARE
10.5% imputed
$80.5 MILLION
Group net profit after tax
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. Earnings before interest, tax, depreciation and amortisation (EBITDA)
56,919
Free EV charging sessions provided at Vector’s rapid
charging stations
SUPREME WINNER
At the 2019 Diversity Awards New Zealand. Also winner of
the Empowerment and Diversability categories
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
1 ―

Chair and Group Chief
Executive report
Through ongoing investment
in our networks and energy
solutions, strengthening our
partnerships with some of the
world’s best energy innovators
and problem solvers, and by
providing greater choice and
control to our customers, we
are enabling the accelerating
change around us.”
Progress towards a new energy future
The six months to 31 December 2019 saw continued
progress with Vector’s vision of creating a new
energy future. The Group continued to rise to the
key challenges of investment to support Auckland’s
rapid growth, while also advancing new energy
systems and solutions to meet customers’ ever-
changing energy demands. Vector remains
committed to its leadership role in preparing
our customers, their communities and the
wider industry for the future of energy.
Our customers continue to tell us that they want
safe, reliable and affordable energy systems that
empower them with choice and control. These
expectations are set to strengthen further, as more
people adopt electric vehicles, and more homes
and businesses choose to harness the power of
solar, batteries and other energy technologies.
These trends show no signs of slowing down locally
or globally, and we have a responsibility to ensure
our energy systems remain stable and robust,
yet flexible enough to evolve in concert with
changing customer behaviours.
Vector’s focus is to continue executing on our
strategy, which has two key elements. The first is
to optimise our core electricity and gas distribution
networks – the foundation of our business – by
making them truly intelligent. Our traditional
network assets will continue to play a key role,
while becoming increasingly integrated with digital
and consumer assets. This convergence allows
us to more efficiently manage loads and smooth
out demand curves, and adapt more quickly to
changing network dynamics. It also means we
can deliver for customers without investing
so much in continuing to build more
and more infrastructure that runs the risk of
future redundancy, as advancing technology
drives energy efficiency and alternatives
beyond what’s possible today.
― 2
Vector Interim Report 2020

The second element of our strategy is to empower
customers with energy solutions to better manage
and use their energy. As this half-year result
demonstrates, Vector is continuing to lead the
way in advanced metering technology across
New Zealand and Australia. We have continued
to provide new energy solutions to a range of
residential and business customers through our
Vector PowerSmart business. Our gas business
continues to provide customers with energy
choice, and our Vector Fibre business remains
a critical strategic asset for our energy networks
while remaining well positioned to continue
capitalising on emerging opportunities in the
telecommunications industry.
The power of Vector’s strategy lies in combining
our many strengths, so we can overcome
challenges and take advantage of the best
opportunities to empower our customers.
To this end, the Group’s strategic portfolio of
assets has been carefully constructed over time
to reflect this positioning. As well as delivering
for our customers, this strategy and approach
continues to provide our shareholders with
more options for sustainable returns.
In this half-year report, we are pleased to report
solid progress towards our vision of creating
a new energy future. More broadly, we can now
share more detail on how landmark decisions,
particularly our confirmed regulatory settings
and the sale of the Kapuni Gas Treatment Plant
to Todd Energy, have helped further refine
our outlook, structure and direction.
Remaining constant throughout is the strong
commitment from the Board, senior management
and wider Vector team to continue at pace towards
our vision of creating a new energy future. Through
ongoing investment in our networks and energy
solutions, strengthening our partnerships with
some of the world’s best energy innovators and
problem solvers, and by providing greater choice
and control to our customers, we are enabling the
accelerating change around us.
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
3 ―

Regulatory settings confirmed
The six-month period has provided Vector’s
electricity business with long-awaited certainty
regarding the next five-year regulatory period,
commencing April 1, 2020. With this decision
now finalised, the Commerce Commission has
confirmed the maximum allowable revenue for
Vector’s electricity business, as well as set limits
for network quality standards.
As we explained in our most recent Annual Report
and Annual General Meeting, it is our firm view
that current regulatory settings have failed
to consider the negative impact that today’s
unprecedented low interest rates and continual
forecast inaccuracies are having on our ability
to invest to keep pace with Auckland’s growth.
For the regulatory period 2013-19, Vector’s under-
recovery of actual revenue relative to allowable
revenue was approximately $270 million. While
we acknowledge the 2020-25 regulatory settings
have corrected growth forecast inaccuracies,
it is disappointing that exposure to ongoing
inflation forecast inaccuracies remains. Moreover,
the default price-quality path (DPP3) reset has
created a further $189 million funding gap as the
Commission has restricted the capital expenditure
available to Vector over the next five years at
a time when the need to maintain and upgrade
Auckland’s electricity network is at an all-time high.
Although this outcome will impede our ability
to invest in Auckland to the level we believe is
necessary over the next five years, we have
increased total capital and operational expenditure
and are committed to upgrading, extending and
maintaining Auckland’s electricity network to the
best of our ability. In tandem, we continue to work
openly and collaboratively with the Commission
and other stakeholders to explore all options to
address the investment short fall.
Group-wide earnings performance
The Group delivered a steady earnings performance
for the HY 2020 period, with adjusted EBITDA of
$264.5 million which was in line with last year’s
comparative result.
Group net profit after tax was $80.5 million,
down $2.8 million (or 3.4%) on the prior year’s
result. This result was largely driven by higher
depreciation and amortisation, partially offset
by higher capital contributions and lower
interest costs.
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 to
improve electricity network reliability. We have also
invested significant capital expenditure to improve
asset reliability, support growth in Auckland, as well
as investment to support increasing deployment
of advanced meters. Reflecting these priorities,
total capital expenditure in the first six months has
been $240.0 million, an increase of $38.9 million or
19.3% on the prior period.
Capital contributions grew by $3.9m to $45.1 million
from $41.2 million a year earlier, reflecting continued
connection growth and significant infrastructure
development taking place across Auckland.
With recent changes to Vector’s regulatory
settings further restricting our cashflow –
which is now below the level of investment
required each year to keep pace with Auckland’s
rapid population and infrastructure growth –
we have changed some business policies to
align capital expenditure.
― 4
Vector Interim Report 2020― Chair and Group Chief Executive report

Dividend Policy Update
Shareholders will receive a partially imputed
HY dividend of 8.25 cents per share.
When the Vector Board approved the current
dividend policy in 2017 it was noted that the policy
would be reviewed having regard to the impact on
Vector’s revenue of the Commerce Commission’s
DPP3 reset for Vector’s electricity network. The
DPP3 period comes into effect from 1 April 2020.
The Board has decided to move from a progressive
dividend policy of increasing dividends by 0.25
cents per annum, to a policy of maintaining the
current dividend of 16.5 cents per annum with the
expectation of continuing to increase dividends in
the future based on projected growth in Vector’s
businesses. Vector will attach imputation credits
to dividends at a rate of 10.5%.
Vector will ensure that in considering the payment
of any dividend, the company will;
‒maintain its current BBB credit rating
with Standard & Poor’s, or equivalent;
‒have the financial capacity to meet its
medium-term investment and operating
requirements, and;
‒comply with all funding covenants and the
solvency test in the Companies Act.
Dividends are made only at the discretion of
the Board of Vector. The payment of dividends
is not guaranteed and Vector’s dividend policy
may change.
Strengthening network resilience
Vector remains committed to meeting its
regulatory compliance targets. In the six-month
period we increased efforts to combat outage
restoration delays caused in part by increasing
Auckland traffic. This included commissioning
a new depot to make it more efficient for crews
to access network equipment required to carry
out certain types of repair work in the North
and West areas of Auckland.
To further minimise community disruption caused
by power outages, Vector has recently joined calls
for changes to Land Transport rules to allow lines
mechanics to use flashing lights on their response
vehicles. As homes and businesses become
increasingly dependent on a reliable supply of
electricity, we believe response crews should be
permitted to gain access to flashing lights to
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
5 ―
― Chair and Group Chief Executive report

move more quickly through traffic, thus allowing
faster restoration times. The use of flashing lights
would prove particularly beneficial in electrical
and gas emergencies that require coordination
with first responders.
During the period we introduced several
initiatives to help reduce the frequency of
outages caused by problem trees and other
vegetation. This included onboarding aborist
expertise and additional resources to increase
cut and trim activity, introducing new data and
analytics technology to better target problem
areas and increasing our community
engagement to ensure tree owners are
aware of their responsibilities.
The period also saw the continued implementation
of the Vector DERMS platform (distributed energy
resource management system) which is critical to
optimising our core network – the foundation of
our business – by making it truly intelligent and
ready to adapt to changing demand and
customer behaviours.
In December we added new functionality to our
online Outage Centre – which has been designed
to give customers another source of up to date
information about planned and unplanned outages
affecting their address. The Outage Centre now
includes an interactive map to show the extent of
an outage on the surrounding area as well as other
relevant information pertaining to a specific
outage, such as the estimated restoration time.
As was reported in our most recent operational
update, SAIDI minutes for the nine months ending
31 December 2019 were 13.7% lower than the
comparable period, which reflects the significant
investment being made to improve network
resilience, as well as fewer extreme weather events.
Financial performance – electricity and
gas distribution
Adjusted EBITDA for electricity and gas distribution
in the six months to 31 December 2019 was down
$9.5 million to $189.2 million – a 4.8% decrease
compared with the prior period. This result was
largely driven by lower revenue and the phasing
of electricity maintenance expenditure focused
on improving network reliability and reducing
outage minutes.
Further reflecting Auckland’s growth, new
electricity connections increased 28.4% to 6,625
from 5,160. New gas connections increased 11.6%
to 1,863 from 1,669. Total electricity connections
stood at 576,352, up 1.6% from 567,009 a year earlier,
while total gas connections were 113,094, up 2.4%
from 110,489 a year ago.
Volumes transported across the electricity network
rose 0.1% to 4,396 GWh from 4,390 GWh a year
earlier. Auckland gas distribution volumes were
up 2.6% at 7.9 PJ from 7.7 PJ a year earlier.
― 6
Vector Interim Report 2020― Chair and Group Chief Executive report

Strong metering performance
Our advanced metering business continues to lead
from the front, helping retailers to better manage
their business and respond to customers’ evolving
energy needs. In the six months to 31 December
2019 we installed 22,936 advanced meters in
New Zealand and 61,408 advanced meters in
Australia. Our advanced meter base grew 10.8%
to 1.64 million from 1.48 million the year before.
We have now deployed over 221,000 advanced
meters in Australia and are on target to install
between 130,000 and 140,000 meters in FY20.
The growth and innovation opportunities for
metering in both New Zealand and Australia are
significant. With continued investment and focus
on customer service, Vector Metering is on track
to deliver another solid performance in FY20.
Adjusted EBITDA for the Metering segment was
$76.1 million in the six months to 31 December 2019,
up $8.0 million or 11.7% from a year earlier. Metering
capex invested in the first half-year increased by
8.9% to $65.0 million, with most of this increase
reflecting the acceleration of deployment of new
advanced meters in Australia.
Facilitating the convergence of energy
and transport
With the Interim Climate Change Commission
(ICCC) calling for the electrification of up to half
of New Zealand’s vehicle fleet by 2035, Vector
remains focused on preparing for the impact
this will have on our electricity network.
To date, this preparation has included investing
in data and analytics capability and establishing
Vector DERMS (and other digital platforms) to
better manage the demand impact that rising
EV uptake will have on Auckland’s electricity
network. Complementing this work, in October
2019, we recruited 120 Auckland residents to
participate in a trial to test the effectiveness of
smart demand-response technology. Through the
trial, Vector has installed a 7kW smart EV charger
at each participant’s home to collect data on
EV charging preferences and how this impacts
network load profiles. The trial aims to assess how
managed smart EV charging can meet customer
expectations while also alleviating peak demands
on the network. A key benefit of which could
include avoiding the need to invest in expensive
network infrastructure upgrades.
More recently, Vector announced we will be
working with Auckland Transport to look at the
impact a fully electric bus fleet would have on
Auckland's transport system. This collaboration
will enable the electrification of Auckland's
bus fleet and help Auckland Transport think
innovatively about new technologies and solutions
that can be effective and sustainable without
placing unnecessary cost burdens on customers.
Improved performance by HRV
Vector PowerSmart’s HRV business has continued
its focus on customer excellence and improved
business operations over the six month period.
HRV’s financial performance has improved and
this is expected to continue in the second half.
Furthering our fibre ambitions
Vector Fibre has made solid progress in the
six month period with plans in place to increase
market share in 2020 and deliver outstanding
service for customers. We are excited to see
how we will capitalise on the rapid changes in
the world of telecommunications – specifically the
chance for our fibre network to support the roll out
of 5G technology against the backdrop of emerging
local fibre company regulation opportunities.
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
7 ―
― Chair and Group Chief Executive report

Milestone Kapuni transaction
In early December, a key milestone for our
Gas Trading business was reached with plans
confirmed to transfer the Kapuni Gas Treatment
Plant and associated assets to Todd Energy.
The deal resets the relationship between Todd
and Vector and creates strong alignment in terms
of our shared interest in seeing the Kapuni field
developed further. New natural gas and LPG
supply agreements have been agreed as part
of this deal to ensure Vector has long term
access to gas products on behalf of our customers.
The sale, which is due to be completed in the
coming months, will not have a material
impact on adjusted EBITDA for the Gas Trading
business in FY20.
Gas Trading business’s financial performance
in the six months to 31 December saw adjusted
EBITDA flat at $20.8 million. This was a good
result given very challenging market conditions.
Leadership
Vector has entered the new decade with a
refreshed Executive Leadership Team structure
that will lead the Vector Group through this next
stage of our journey. These changes mark a further
point in our history, as ‘how’ we work evolves in line
with the rapid pace of change in technology and
the global challenges around decarbonisation
and customer experience accelerate.
In October, Vector was proud to have been named
the Supreme Winner at the 2019 Diversity Awards
in recognition of our commitment to integrating
an inclusive culture right across our business.
Vector also won the Empowerment and
Diversability categories, which recognise
innovative responses to gender equity and
positive employment opportunities for
people with disabilities.
Looking ahead
Acknowledging the challenges and opportunities
ahead of us, we remain committed to our vision
of a new energy future and are confident we
have the strategy, plan and talent in place to
deliver for our customers.
We acknowledge that due to our recently
confirmed regulatory settings, we are limited
in how much we can invest in growing and
maintaining our networks to keep pace with
Auckland’s rapid growth while also addressing
additional pressures driven by the electrification
of transport and changing customer behaviours.
We remain committed to working with our
stakeholders to overcome these challenges,
and to targeting investment as efficiently
as we can at every turn.
We are pleased by our ongoing success in the
New Zealand and Australian metering markets,
and with progress being made in our Vector
Fibre and Vector PowerSmart businesses.
Our Gas businesses will continue to adapt
and seek opportunities to perform well in
today’s challenging market conditions.
Dame Alison Paterson
Chair
Simon Mackenzie
Group Chief Executive
― 8
Vector Interim Report 2020― Chair and Group Chief Executive report

FINANCIAL PERFORMANCE
$M
31-DEC-19
6 MONTHS
31-DEC-18
6 MONTHSCHANGE
30-JUN-19
12 MONTHS
Total revenue699.6688.61.6%1,318.6
Adjusted EBITDA264.5264.7(0.1%)485.8
Adjusted EBIT133.1144.8(8.1%)239.0
Net prof it80.583.3(3.4%)84.0
Operating cash flow254.0219.115.9%348.1
FINANCIAL POSTION
$M31-DEC-1931-DEC-18CHANGE30-JUN-19
Total equity2,355.52,451.7(3.9%)2,349.4
Total assets6,158.15,934.33.8%6,061.0
Economic net debt (borrowings net of cash
and short-term deposits)2,704.32,449.310.4%2,627.5
KEY FINANCIAL MEASURES
31-DEC-19
6 MONTHS
31-DEC-18
6 MONTHSCHANGE
30-JUN-19
12 MONTHS
Adjusted EBITDA/ total revenue37.8%38.4%(1.6%)36.8%
Adjusted EBIT/ total revenue19.0%21.0%(9.5%)18.1%
Equity/total assets38.3%41.3%(7.3%)38.8%
Gearing
1
52.9%49.6%6.7%52.2%
Net interest cover - (adjusted EBIT/net interest
costs) (times)2.12.05.0%1.8
Earnings (NPAT) per share (cents)8.08.3(3.6%)8.3
Dividends declared, cents per share8.258.250.0%16.50
1. Gearing is defined as economic net debt to economic net debt plus adjusted equity. Adjusted equity means total equity adjusted for hedge reserves
Total revenue
$699.6 MILLION
Rises 1.6% on the previous corresponding period
Operating cash flow
$254.0 MILLION
Rises 15.9% on the previous corresponding period
financial overview
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
9 ―
― Chair and Group Chief Executive report









.
.
.
.
.
NET PROFIT
(including discontinued operations)
for the six months ended 31 December
$ MILLION
TOTAL REVENUE
(continuing operations)
for the six months ended 31 December
$ MILLION










.
.
.
.
.


REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER

INTER-SEGMENT
253.5
250.0
264.7
264.5
20152016201720182019
0
-100
50
100
150
200
250
300
257.0
ADJUSTED EBITDA
(continuing operations)
for the six months ended 31 December
$ MILLION

REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER

TOTAL GROUP
― 10
Vector Interim Report 2020― financial performance trends

CAPITAL EXPENDITURE
for the six months ended 31 December
$ MILLION
OPERATING CASH FLOWS
(including discontinued operations)
for the six months ended 31 December
$ MILLION








.
.
.
.
.
16.0
65.0
3.0
156.0
2
0
1
9
2
0
1
8
10.4
125.0
6.0
59.7

REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER
2,405.2
2,704.3
2
0
1
9
2
0
1
8
2,449.32,493.3
SOURCE OF FUNDING – GEARING
as at 31 December
$ MILLION

ECONOMIC NET DEBT

ADJUSTED EQUITY
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
11 ―
― financial performance trends

Vector’s standard profit measure prepared under New Zealand Generally Accepted Accounting
Practice (GAAP) is net profit. Vector has used non-GAAP profit measures when discussing financial
performance in this document. The directors and management believe that these measures provide
useful information as they are used internally to evaluate performance of business units, to establish
operational goals and to allocate resources. For a more comprehensive discussion on the use of non-
GAAP profit measures, please refer to the policy ‘Reporting non-GAAP profit measures’ available on
our website (www.vector.co.nz).
Non-GAAP profit measures are not prepared in accordance with New Zealand International Financial
Reporting Standards (NZ IFRS) and are not uniformly defined, therefore the non-GAAP profit measures
reported in this document may not be comparable with those that other companies report and should
not be viewed in isolation from or considered as a substitute for measures reported by Vector in
accordance with NZ IFRS.
DEFINITIONS
EBITDA: Earnings before interest, taxation, depreciation and amortisation from
continuing operations.
Adjusted EBITDA: EBITDA from continuing operations adjusted for fair value changes, associates,
impairments, capital contributions, and significant one-off gains, losses,
revenues and/or expenses.
GAAP TO NON-GAAP RECONCILIATION
Group EBITDA and adjusted EBITDA
31-DEC-2019
6 MONTHS
$M
31-DEC-2018
6 MONTHS
$M
Reported net profit for the period (GAAP)
1
80.583.3
Add back: net interest costs
1
64.0 71.7
Add back: tax (benef it)/expense
1
33.331.3
Add back: depreciation and amortisation
1
131.4 119.9
EBITDA309.2306.2
Adjusted for:
Associates (share of net (prof it)/loss)
1
(0.1)(0.5)
Fair value change on f inancial instruments
1
0.5 0.2
Capital contributions
1
(45.1)(41.2)
Impairment
1
––
Adjusted EBITDA264.5264.7
1. Extracted from audited financial statements
Segment adjusted EBITDA20192018
SIX MONTHS ENDED
31 DECEMBER
REPORTED
SEGMENT
EBITDA
LESS CAPITAL
CONTRIBUTIONS
SEGMENT
ADJUSTED
EBITDA
REPORTED
SEGMENT
EBITDA
LESS CAPITAL
CONTRIBUTIONS
SEGMENT
ADJUSTED
EBITDA
Metering76.1 – 76.1 68.1 – 68.1
Gas Trading20.8 – 20.8 20.7 – 20.7
Unregulated segments96.9 – 96.9 88.8 – 88.8
Regulated segment234.2 (45.0)189.2 239.9 (41.2)198.7
Corporate and other(21.5)(0.1)(21.6)(22.8) – (22.8)
TOTAL309.6 (45.1)264.5 305.9 (41.2)264.7
― 12
Vector Interim Report 2020― non-GAAP financial information

CONTENTS
Independent Review Report14
Group Condensed Interim Financial Statements
Profit or Loss16
Other Comprehensive Income17
Balance Sheet18
Cash Flows20
Changes in Equity 21
Notes to the Group Condensed Interim Financial Statements22
GROUP CONDENSED INTERIM FINANCIAL STATEMENTS
These group condensed interim financial statements for the six months ended 31 December 2019
are dated 24 February 2020, and signed for and on behalf of Vector Limited by:
Director
Director
And management of Vector Limited by:
Group Chief Executive
Chief Financial Officer
GROUP CONDENSED INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2019 (unaudited)
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
13 ―
― non-GAAP financial information

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Independent Review Report
To the shareholders of Vector Limited
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 16 to 32
do not:
i.present fairly in all material respects the
Group’s financial position as at 31
December 2019 and its financial
performance and cash flows for the 6
month period ended on that date; and
ii.comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
—the consolidated balance sheet as at 31
December 2019;
—the consolidated statements of profit and loss,
other comprehensive income, changes in
equity and cash flows for the 6 month period
then ended; and
—notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of interim consolidated financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of Vector Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to
the audit of the annual financial statements.
Our firm has also provided other services to the group in relation to regulatory, other assurance, 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 reviewer of the group. The firm has no other relationship with, or interest
in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might
state to the shareholders those matters we are required to state to them in the Independent Review Report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the shareholders as a body for our review work, this report, or any of the opinions we have formed.
― 14
Vector Interim Report 2020― Group Condensed Interim Financial Statements

Responsibilities of the Directors for the interim consolidated financial
statements
The Directors, on behalf of the group, are responsible for:
—the preparation and fair presentation of the interim consolidated financial statements in accordance with NZ
IAS 34 Interim Financial Reporting;
—implementing necessary internal control to enable the preparation of a interim consolidated 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 review of the interim consolidated
financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit
opinion on these interim consolidated financial statements.
This description forms part of our Independent Review Report.


KPMG
Auckland
24 February 2020


FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
15 ―

PROFIT OR LOSS
 NOTE
31 DEC 2019
6 MONTHS
(UNAUDITED)
$M
31 DEC 2018
6 MONTHS
(UNAUDITED)
$M
30 JUN 2019
12 MONTHS
(AUDITED)
$M
Revenue4699.6688.61,318.6
Operating expenses4(390.0)(382.7)(753.5)
Depreciation and amortisation(131.4)(119.9)(246.8)
Interest costs (net)(64.0)(71.7)(133.3)
Fair value change on f inancial instruments(0.5)(0.2)(2.5)
Associates (share of net prof it/(loss)) 0.10.50.6
Impairment––(46.6)
Profit/(loss) before income tax113.8114.6136.5
Income tax benef it/(expense)(33.3)(31.3)(52.5)
Net profit/(loss) for the period80.583.384.0
Net profit/(loss) for the period attributable to
Non-controlling interests 0.80.71.1
Owners of the parent 79.782.682.9
Basic and diluted earnings per share (cents)88.08.38.3
― 16
Vector Interim Report 2020― Group Condensed Interim Financial Statements

OTHER COMPREHENSIVE INCOME
 
31 DEC 2019
6 MONTHS
(UNAUDITED)
$M
31 DEC 2018
6 MONTHS
(UNAUDITED)
$M
30 JUN 2019
12 MONTHS
(AUDITED)
$M
Net profit/(loss) for the period80.583.384.0
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 reserves11.4(1.5)(21.0)
Translation of foreign operations (0.9)(1.2)(2.1)
Items that will not be re-classif ied subsequently to prof it or loss:
Fair value change on f inancial asset(1.5)–0.6
Other comprehensive income/(loss) for the period net of tax9.0(2.7)(22.5)
Total comprehensive income/(loss) for the period net of tax89.580.661.5
Total comprehensive income for the period attributable to
Non-controlling interests 0.80.71.1
Owners of the parent 88.779.960.4
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
17 ―

BALANCE SHEET
 NOTE
31 DEC 2019
(UNAUDITED)
$M
31 DEC 2018
(UNAUDITED)
$M
30 JUN 2019
(AUDITED)
$M
CURRENT ASSETS 
Cash and cash equivalents29.226.527.6
Trade and other receivables 89.9110.7100.1
Contract assets96.493.9105.2
Inventories8.010.78.4
Intangible assets4.810.41.9
Income tax52.341.452.4
Disposal group held for sale3,579.2––
Total current assets359.8293.6295.6
NON-CURRENT ASSETS
Receivables2.00.21.7
Derivatives3,7112.275.5109.3
Investment in associate8.78.68.7
Other investments 14.115.015.6
Intangible assets61,315.71,398.01,354.9
Property, plant and equipment (PPE)4,274.94,080.44,184.6
Right of use assets (ROU)36.438.938.1
Income tax34.124.052.3
Deferred tax0.20.10.2
Total non-current assets5,798.35,640.75,765.4
Total assets6,158.15,934.36,061.0
CURRENT LIABILITIES
Trade and other payables199.4217.0200.1
Provisions18.913.117.4
Borrowings3,7629.3513.0481.3
Derivatives3,719.269.34.9
Contract liabilities50.543.548.4
Lease liabilities7.98.97.2
Income tax0.20.40.8
Disposal group held for sale3,525.8––
Total current liabilities951.2865.2760.1
― 18
Vector Interim Report 2020― Group Condensed Interim Financial Statements

BALANCE SHEET (CONTINUED)
 NOTE
31 DEC 2019
(UNAUDITED)
$M
31 DEC 2018
(UNAUDITED)
$M
30 JUN 2019
(AUDITED)
$M
NON-CURRENT LIABILITIES
Payables0.98.21.8
Provisions8.123.627.4
Borrowings3,72,213.61,966.82,279.7
Derivatives3,747.854.978.2
Contract liabilities36.837.443.9
Lease liabilities30.531.332.7
Deferred tax 513.7495.2487.8
Total non-current liabilities 2,851.42,617.42,951.5
Total liabilities 3,802.63,482.63,711.6
EQUITY
Equity attributable to owners of the parent2,338.52,434.12,332.4
Non-controlling interests in subsidiaries17.017.617.0
Total equity 2,355.52,451.72,349.4
Total equity and liabilities 6,158.15,934.36,061.0
Net tangible assets per share (cents)8101.8102.597.8
Gearing ratio (%)852.949.652.2
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
19 ―

CASH FLOWS
 NOTE
31 DEC 2019
6 MONTHS
(UNAUDITED)
$M
31 DEC 2018
6 MONTHS
(UNAUDITED)
$M
30 JUN 2019
12 MONTHS
(AUDITED)
$M
CASH FLOWS FROM OPERATING ACTIVITIES 
Receipts f rom customers693.4691.71,316.5
Interest received 0.40.51.1
Payments to suppliers and employees(373.2)(399.3)(765.3)
Interest paid(64.8)(72.0)(142.6)
Income tax paid(1.8)(1.8)(61.6)
Net cash flows from/(used in) operating activities 9254.0219.1348.1
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds f rom sale of PPE and software intangibles0.30.20.6
Purchase and construction of PPE and software intangibles(242.9)(202.7)(418.4)
Acquisition of businesses––(8.0)
Other investing cash flows(0.7)(3.5)(1.6)
Net cash flows from/(used in) investing activities (243.3)(206.0)(427.4)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds f rom borrowings3,7375.070.0535.0
Repayment of borrowings3,7(296.6)–(285.6)
Dividends paid 3(83.3)(80.6)(164.1)
Lease liabilities payments(4.2)(3.6)(6.2)
Other f inancing cash flows–(0.3)(0.1)
Net cash flows from/(used in) financing activities (9.1)(14.5)79.0
Net increase/(decrease) in cash and cash equivalents1.6(1.4)(0.3)
Cash and cash equivalents at beginning of the period27.627.927.9
Cash and cash equivalents at end of the period 29.226.527.6
Cash and cash equivalents comprise:
Bank balances and on-call deposits24.118.222.0
Short term deposits 5.18.35.6
  29.226.527.6
― 20
Vector Interim Report 2020― Group Condensed Interim Financial Statements

CHANGES IN EQUITY
(unaudited)
NOTEISSUED SHARE CAPITAL$MTREASURY SHARES$MHEDGE RESERVES$MOTHER RESERVES$MRETAINED EARNINGS$MNON– CONTROLLING INTERESTS$MTOTAL EQUITY$M
Balance at 1 July 2018  880.0(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 2018 880.0(0.2)(40.1)(0.3)1,595.017.52,451.9
Net prof it/(loss) for the period––––82.60.783.3
Other comprehensive income––(1.5)(1.2)––(2.7)
Total comprehensive income––(1.5)(1.2)82.60.780.6
Dividends––––(80.0)(0.6)(80.6)
Employee share purchase
scheme transactions–(0.2)––––(0.2)
Total transactions with owners–(0.2)––(80.0)(0.6)(80.8)
Balance at 31 December 2018880.0(0.4)(41.6)(1.5)1,597.617.62,451.7
Net prof it/(loss) for the period––––0.30.40.7
Other comprehensive income––(19.5)(0.3)––(19.8)
Total comprehensive income––(19.5)(0.3)0.30.4(19.1)
Dividends––––(82.5)(1.0)(83.5)
Employee share purchase
scheme transactions–––0.3––0.3
Total transactions with owners –––0.3(82.5)(1.0)(83.2)
Balance at 30 June 2019880.0(0.4)(61.1)(1.5)1,515.417.02,349.4
Net prof it/(loss) for the period––––79.70.880.5
Other comprehensive income––11.4(2.4)––9.0
Total comprehensive income ––11.4(2.4)79.70.889.5
Dividends3––––(82.5)(0.8)(83.3)
Employee share purchase
scheme transactions–––(0.1)––(0.1)
Total transactions with owners–––(0.1)(82.5)(0.8)(83.4)
Balance at 31 December 2019880.0(0.4)(49.7)(4.0)1,512.617.02,355.5
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
21 ―

1. Company information
Reporting entityVector Limited is a company incorporated and domiciled in New Zealand,
registered under the Companies Act 1993 and listed on the NZX Main
Board (NZX). The company is an FMC entity for the purposes of Part 7
of the Financial Markets Conduct Act 2013. Vector’s condensed interim
financial statements (the interim financial statements) comply with
this Act.
The interim financial statements presented are for Vector Limited Group
(“Vector” or “the group”) as at, and for the six months ended 31 December
2019. The group comprises Vector Limited (“the parent”), its subsidiaries,
and its investments in associates and joint arrangements.
Vector Limited is a 75.1% owned subsidiary of Entrust which is the
ultimate parent entity for the group.
The primary operations of the group are electricity and gas distribution,
natural gas and LPG sales, gas processing, metering, telecommunications
and new energy solutions.
2. Summary of significant accounting policies
Basis of preparationThe interim financial statements have been prepared in accordance
with New Zealand Generally Accepted Accounting Practice (NZ GAAP)
as applicable to interim financial statements, and as appropriate
to profit oriented entities. They comply with NZ IAS 34 Interim
Financial Reporting.
These interim financial statements do not include all of the information
required for full annual financial statements and should be read in
conjunction with the group financial statements and related notes
included in Vector’s 2019 Annual Report. The interim financial statements
for the six months ended 31 December 2019 and 31 December 2018
are unaudited.
All financial information is presented in New Zealand dollars ($) and
has been rounded to the nearest 100,000, unless otherwise stated.
SeasonalityVector’s electricity and gas businesses are affected by the seasonal
demand for energy, which generally increases during periods of colder
weather. Accordingly, financial results for the first half of the financial
year reported in the interim financial statements are generally more
profitable than those of the second half of the year.
Significant Accounting PoliciesThe accounting policies set out in Vector’s 2019 Annual Report have
been applied consistently to all periods presented in these interim
financial statements.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
― 22
Vector Interim Report 2020― Group Condensed Interim Financial Statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
3. Significant transactions and events
Signif icant transactions and events that have occurred during the six months to 31 December 2019:
Sale of the Kapuni gas interestsOn 3 December 2019, Vector announced an agreement for the sale of the
Kapuni Gas Treatment Plant and related assets including Vector’s 50%
interest in the Kapuni Energy Joint Venture (together “the Kapuni gas
interests”) to Todd Petroleum Mining Company Limited. Vector is
targeting completion by June 2020.
The Kapuni gas interests are a part of Vector’s Gas Trading segment.
Assets and liabilities associated with the Kapuni gas interests
($79.2 million and $25.8 million respectively) are classified and
presented in the interim financial statements as a disposal group held
for sale from December 2019. Depreciation and amortisation on the
assets have ceased from 31 December 2019 as a result. Refer to Note 5
for details on the disposal group held for sale.
The Commerce CommissionOver-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 financial years ended 30 June 2018
(3 months), and financial years ending 30 June 2019 (12 months) and
2020 (9 months).
The estimated impact in the six months ended 31 December 2019 is a
$4.0 million decrease in revenue (six months ended 31 December 2018:
$2.1 million) and a $1.2 million increase in interest cost (six months ended
31 December 2018: $0.7 million).
Debt programmeOn 16 September 2019, the group repaid $296.6 million (USD $195.0 million)
of USD senior notes.
During the six months ended 31 December 2019, the group drew down a
net of $375.0 million (six months ended 31 December 2018: $70.0 million)
from bank facilities.
DividendsVector Limited’s final dividend for the year ended 30 June 2019
of 8.25 cents per share was paid on 16 September 2019, with a
supplementary dividend of 1.46 cents per non-resident share.
The total dividend paid was  $82.5 million.
Liquigas Limited, an associated company of the group, paid an interim
dividend for the six months ended 31 December 2019 of $0.8 million to
the company’s non-controlling interests.
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
23 ―

NOTES TO THE INTERIM FINANCIAL STATEMENTS
4. Segment information
SegmentsVector reports on three reportable segments in accordance with
NZ IFRS 8 Operating Segments.
A review of the reportable segments in the current year resulted in the
following changes from the 30 June 2019 reporting period:
‒The Technology segment, which included the metering services,
telecommunications and new energy solutions businesses is no
longer a reportable segment;
‒The Metering services business is disaggregated from the Technology
segment to form a new and single reportable segment Metering;
‒The telecommunications and new energy solutions businesses have
been removed from segment reporting. These businesses do not
satisfy the criteria to be reported as a reportable segment.
The current reportable segments are therefore:
Regulated Networks Auckland electricity and gas distribution services.
Gas Trading Natural gas and LPG sales, storage and
processing, and cogeneration.
MeteringMetering services.
The processing and cogeneration businesses in Gas Trading will cease at
completion of the sale of Vector’s Kapuni gas interests (refer to Note 3).
Prior periods segment information have been restated to reflect the
changes in the segments.
― 24
Vector Interim Report 2020― Group Condensed Interim Financial Statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
4. Segment information (continued)
31 DEC 2019
6 MONTHS (UNAUDITED)
REGULATED
NETWORKS
$M
GAS
TRADING
$M
METERING
$M
INTER–
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 353.0151.2101.7–605.9
Third party contributions45.0–––45.0
Other7.3–––7.3
Intersegment revenue1.5–0.7(2.2)–
Segment revenue406.8151.2102.4(2.2)658.2
External expenses:
Electricity transmission expenses(104.0)–––(104.0)
Gas purchases and production
expenses–(92.1)––(92.1)
Metering services cost of sales––(12.7)–(12.7)
Network and asset maintenance (35.0)(7.3)(5.0)–(47.3)
Employee benef it expenses(9.5)(7.4)(4.3)–(21.2)
Other expenses(24.1)(21.4)(4.3)–(49.8)
Intersegment expenses–(2.2)–2.2–
Segment operating expenses(172.6)(130.4)(26.3)2.2(327.1)
Segment EBITDA234.220.876.1–331.1
Depreciation and amortisation(64.8)(8.8)(39.4)–(113.0)
Segment profit/(loss)169.412.036.7–218.1
Segment capital expenditure156.03.065.0–224.0
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
31 DEC 2019
6 MONTHS
REVENUE
$M
PROFIT/
(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information658.2218.1224.0
Amounts not allocated to segments:
Revenue (including third party contributions)41.441.4–
Employee benef it expenses–(23.3)–
Other operating expenses–(41.5)–
Elimination of transactions with segments–1.9–
Depreciation and amortisation –(18.4)–
Interest costs (net)–(64.0)–
Fair value change on f inancial instruments–(0.5)–
Associates (share of net prof it/(loss))–0.1–
Capital expenditure––16.0
Reported in the financial statements699.6113.8240.0
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
25 ―

NOTES TO THE INTERIM FINANCIAL STATEMENTS
4. Segment information (continued)
31 DEC 2018
6 MONTHS (UNAUDITED)
REGULATED
NETWORKS
$M
GAS TRADING
$M
METERING
$M
INTER–
SEGMENT
$M
TOTAL
$M
External revenue:     
Sales 354.3152.992.3–599.5
Third party contributions41.2–––41.2
Other5.4–––5.4
Intersegment revenue1.7–0.8(2.5)–
Segment revenue402.6152.993.1(2.5)646.1
External expenses:
Electricity transmission expenses(105.0)–––(105.0)
Gas purchases and production
expenses
–(95.1)––(95.1)
Metering services cost of sales––(11.0)–(11.0)
Network and asset maintenance(29.8)(8.2)(4.4)–(42.4)
Employee benef it expenses(8.1)(6.8)(5.2)–(20.1)
Other expenses(19.8)(19.6)(4.4)–(43.8)
Intersegment expenses–(2.5)–2.5–
Segment operating expenses(162.7)(132.2)(25.0)2.5(317.4)
Segment EBITDA239.920.768.1–328.7
Depreciation and amortisation(60.0)(7.7)(34.9)–(102.6)
Segment profit/(loss)179.913.033.2–226.1
Segment capital expenditure125.06.059.7–190.7
Reconciliation to revenue, prof it/(loss) before income tax and
capital expenditure reported in the f inancial statements:
31 DEC 2018
6 MONTHS (UNAUDITED)
REVENUE
$M
PROFIT/
(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information646.1226.1190.7
Amounts not allocated to segments:
Revenue (including third party contributions)42.542.5–
Employee benef it expenses–(25.8)–
Other operating expenses–(41.2)–
Elimination of transactions with segments–1.7–
Depreciation and amortisation –(17.3)–
Interest costs (net)–(71.7)–
Fair value change on f inancial instruments–(0.2)–
Associates (share of net prof it/(loss))–0.5–
Capital expenditure––10.4
Reported in the financial statements688.6114.6201.1
― 26
Vector Interim Report 2020― Group Condensed Interim Financial Statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
4. Segment information (continued)
30 JUN 2019
12 MONTHS (AUDITED)
REGULATED
NETWORKS
$M
GAS TRADING
$M
METERING
$M
INTER–
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 676.8284.1186.9–1,147.8
Third party contributions79.0–––79.0
Other8.8–––8.8
Intersegment revenue3.0–1.5(4.5)–
Segment revenue767.6284.1188.4(4.5)1,235.6
External expenses:
Electricity transmission expenses(209.6)–––(209.6)
Gas purchases and production
expenses–(179.2)––(179.2)
Metering services cost of sales––(22.8)–(22.8)
Network and asset maintenance (60.6)(17.1)(9.0)–(86.7)
Employee benef it expenses(16.3)(13.6)(9.5)–(39.4)
Other expenses(35.1)(38.4)(8.4)–(81.9)
Intersegment expenses–(4.5)–4.5–
Segment operating expenses(321.6)(252.8)(49.7)4.5(619.6)
Segment EBITDA446.031.3138.7–616.0
Depreciation and amortisation(122.4)(15.6)(72.0)–(210.0)
Segment profit/(loss)323.615.766.7–406.0
Segment capital expenditure260.911.8121.2–393.9
Reconciliation to revenue, prof it/(loss) before income tax and
capital expenditure reported in the f inancial statements:
30 JUN 2019
12 MONTHS (AUDITED)
REVENUE
$M
PROFIT/
(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information1,235.6406.0393.9
Amounts not allocated to segments:
Revenue (including third party contributions)83.083.0–
Impairment–(46.6)–
Employee benef it expenses–(49.7)–
Other operating expenses–(88.0)–
Elimination of transactions with segments–3.8–
Depreciation and amortisation –(36.8)–
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––31.2
Reported in the financial statements1,318.6136.5425.1
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
27 ―

NOTES TO THE INTERIM FINANCIAL STATEMENTS
5. Disposal group held for sale

 
31 DEC 2019
(UNAUDITED)
$M
Assets
Trade and other receivables6.0
Inventories0.1
Intangible assets (including goodwill)36.0
Property, plant & equipment 29.4
Deferred tax7.7
79.2
Liabilities
Trade and other payables5.1
Provisions20.7
25.8
PoliciesVector classifies a disposal group as held for sale if its carrying amount
will be recovered principally through a sale transaction rather than
through continuing use. The disposal group is measured at the lower
of carrying amount and fair value less costs to sell.
― 28
Vector Interim Report 2020― Group Condensed Interim Financial Statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
6. intangible assets
Goodwill impairment
assessments
Goodwill is tested at least annually for impairment against the
recoverable amount of the cash generating units (“CGU”) to which
it has been allocated.
Management performed impairment assessments on the electricity,
gas distribution, gas trading and metering CGUs at 31 December 2019
and found no impairment.
Other CGUs in the group were assessed for indicators of impairment
at 31 December 2019 only. No indicators were found. Impairment
assessments for these CGUs will be performed at 30 June 2020.
7. Borrowings and derivatives
NET
DERIVATIVES
$M
BORROWINGS
$M
Balance at 30 June 2019 (audited)26.2(2,761.0)
Fair value movements:
Foreign exchange rates2.3(2.3)
Interest rates and other fair value changes16.7(1.4)
Repayment–296.6
Drawdown–(375.0)
Amortised costs –0.2
Balance at 31 December 2019 (unaudited)45.2(2,842.9)
Fair value at 31 December 2019 (unaudited)45.2(3,002.7)
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
29 ―

NOTES TO THE INTERIM FINANCIAL STATEMENTS
8. Financial ratios
Earnings per share
31 DEC 2019
6 MONTHS
(UNAUDITED)
$M
31 DEC 2018
6 MONTHS
(UNAUDITED)
$M
30 JUN 2019
12 MONTHS
(AUDITED)
$M
Net prof it attributable to owners of the parent 79.782.682.9
Weighted average ordinary shares outstanding during
the period (number of shares)999,870,623999,911,394999,889,595
Total earnings per share8.0 cents8.3 cents8.3 cents
Net tangible assets per share
31 DEC 2019
(UNAUDITED)
$M
31 DEC 2018
(UNAUDITED)
$M
30 JUN 2019
(AUDITED)
$M
Net assets attributable to owners of the parent 2,338.52,434.12,332.4
Less total intangible assets (1,320.5)(1,408.4)(1,354.9)
Total net tangible assets1,018.01,025.7977.5
Ordinary shares outstanding (number of shares)999,882,348999,867,208999,867,965
101.8 cents102.5 cents97.8 cents
Economic net debt to economic net debt plus adjusted
equity ratio (“gearing ratio”)
31 DEC 2019
(UNAUDITED)
$M
31 DEC 2018
(UNAUDITED)
$M
30 JUN 2019
(AUDITED)
$M
Face value of borrowings 2,733.52,475.82,655.1
Less cash and cash equivalents(29.2)(26.5)(27.6)
Economic net debt2,704.32,449.32,627.5
Total equity2,355.52,451.72,349.4
Adjusted for hedge reserves49.741.661.1
Adjusted equity2,405.22,493.32,410.5
Economic net debt plus adjusted equity5,109.54,942.65,038.0
52.9%49.6%52.2%
― 30
Vector Interim Report 2020― Group Condensed Interim Financial Statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS
9. Cash flows
31 DEC 2019
6 MONTHS
(UNAUDITED)
$M
31 DEC 2018
6 MONTHS
(UNAUDITED)
$M
30 JUN 2019
12 MONTHS
(AUDITED)
$M
Reconciliation of net profit/(loss) to net cash flows
from/(used in) operating activities
Net prof it/(loss) for the period80.583.384.0
Items classified as investing activities
Non-cash items classif ied as investing activities0.4(2.5)(3.4)
Other items classif ied as investing activities0.70.21.6
1.1(2.3)(1.8)
Items classified as financing activities
Items associated with lease liabilities–1.51.5
Non-cash items
Depreciation and amortisation131.4119.9246.8
Non-cash portion of interest costs (net)(1.4)(1.4)(5.5)
Fair value change on f inancial instruments0.50.22.5
Associates (share of net (prof it)/loss)(0.1)(0.5)(0.6)
Impairment––46.6
Increase/(decrease) in deferred tax 13.811.711.6
Increase/(decrease) in provisions3.5(11.3)(4.2)
Other non-cash items(4.3)(1.3)(1.6)
143.4117.3295.6
Changes in assets and liabilities
Trade and other payables6.5(3.0) (12.4)
Contract liabilities(5.0)(2.9)(5.2)
Contract assets5.910.00.3
Inventories0.40.93.2
Trade and other receivables 3.5(4.7)2.8
Income tax 17.719.0(19.9)
 29.019.3(31.2)
Net cash flows from/(used in) operating activities254.0219.1348.1
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
31 ―

NOTES TO THE INTERIM FINANCIAL STATEMENTS
10. Capital commitments
 
31 DEC 2019
(UNAUDITED)
$M
31 DEC 2018
(UNAUDITED)
$M
30 JUN 2019
(AUDITED)
$M
Capital expenditure committed to but not provided
for at balance date122.670.883.4
11. Related party transactions
Majority shareholder dividendVector Limited has paid its majority shareholder, Entrust, dividends
of $62.0 million during the period (six months ended December 2018:
$60.1 million, 12 months ended 30 June 2019: $122.0 million).
Outstanding balancesAt 31 December 2019, the group has no material outstanding balances
due to or from related parties of the group (31 December 2018 and
30 June 2019: not material).
12. Contingent liabilities
DisclosuresThe directors are aware of claims that have been made against entities of
the group and, where appropriate, have recognised provisions for these
within the financial statements.
No material contingent liabilities have been identified.
13. Events after the end of the period
Interim dividendOn 24 February 2020, the board declared an interim dividend for the year
ended 30 June 2020 of 8.25 cents per share.
No adjustment is required to these interim financial statements in
respect of this event.
Financial statements approvalThe interim financial statements were approved by the board of directors
on 24 February 2020.
― 32
Vector Interim Report 2020― Group Condensed Interim Financial Statements

CALENDAR AND DIRECTORY
Financial calendar
2020
Record date for interim dividend30 March
Interim dividend paid* 8 April
Third quarter operating statistics April
Fourth quarter operating statistics July
Full year result and annual report August
Final dividend* September
Annual meetingSeptember
* Dividends are subject to Board determination.
Investor information
Ordinary shares in Vector Limited are listed and quoted on the New Zealand Stock Market (NZSX) under the
company code VCT. Vector also has capital bonds 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
insight
creative.co.nz

VEC211
FLEXIBLE ENERGY SOLUTIONS FOR TOMORROW
33 ―

creating a new
energy future
vector.co.nz

---

VECTOR LIMITED
Results announcement



Results for announcement to the market
Name of issuer VECTOR LIMITED
Reporting Period 6 MONTHS TO 31 DECEMBER 2019
Previous Reporting Period 6 MONTHS TO 31 DECEMBER 2018
Currency NEW ZEALAND DOLLAR
Amount (000s) Percentage change
Revenue from continuing
operations
$699,629 +1.6%
Total Revenue $699,629 +1.6%
Net profit/(loss) from
continuing operations
$79,684 -3.5%
Total net profit/(loss) $79,684 -3.5%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.08250000
Imputed amount per Quoted
Equity Security
$0.00967877
Record Date 30 March 2020
Dividend Payment Date 8 April 2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.018 $1.025
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to accompanying unaudited 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

25/02/2020

Unaudited financial statements accompany this announcement.

---

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
Quarterly
Half
Year
X Special
DRP
applies

Record date 30 MARCH 2020
Ex-Date 27 MARCH 2020
Payment date 8 APRIL 2020
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 $0.09217877
Total cash distribution $0.08250000
Excluded amount (applicable to listed PIEs) NOT APPLICABLE
Supplementary distribution amount $0.00439204
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Partially imputed
If fully or partially imputed, please state
imputation rate as % applied
10.5%
Imputation tax credits per financial product $0.00967877
Resident Withholding Tax per financial product $0.02074022
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

25/02/2020