VECTOR DELIVERS STEADY FY20 RESULT

creating a new energy future


VECTOR DELIVERS STEADY FY20 RESULT

27 August 2020 - Vector Group (NZX: VCT) is pleased to announce a steady earnings
performance for the 12 months to 30 June 2020, with adjusted earnings before interest, tax,
depreciation and amortisation (Adjusted EBITDA)
[1]
of $490.0 million, $4.2 million ahead of
FY19.
The Board has determined that shareholders will receive a final dividend of 8.25 cents per
share imputed at 10.5%, taking the full year partially imputed dividend to 16.5 cents per
share.
Group net profit after tax was $97.3 million and includes a non-cash impairment of $32.0
million in respect of E-Co Products Group.
Vector Chair Dame Alison Paterson said, “We are pleased with our performance this
financial year, despite some challenging and uncertain conditions. The Board remains
confident in the company’s strategy, which is continuing to drive progress towards defining
Vector as an innovative energy group providing sustainable shareholder returns through a
diverse portfolio of businesses. I would like to thank our people and key partners for the way
they have adapted to continue to deliver essential services to our customers throughout the
COVID-19 lockdowns.”
Vector Group Chief Executive Simon Mackenzie said, “There were several highlights to the
2020 financial year including the recent announcement of our strategic alliance with Amazon
Web Services.
“Significantly, the sale of the Kapuni Gas Treatment Plant in March to Todd Energy marked a
key milestone for our Gas Trading business. Bringing the ownership of the plant and field
together clears the way for Todd to invest in developing the field. The deal includes long-term
supply agreements which means we can support supply to our natural gas and LPG
customers.
“Our metering business grew strongly with 119,003 advanced meters installed in Australia
and 36,350 in New Zealand during the year. In Australia, we are now averaging
m arket release
27 August 2020

creating a new energy future


approximately 10,000 installations per month, which is encouraging growth in this
competitive market.
“New electricity connections increased to 12,231, up from 11,000 in the prior year, while new
gas connections were down 3.6% to 3,201. This year we have invested $317.1m in the
Auckland electricity and gas networks to improve safety, reliability and resilience of our
networks and facilitate Auckland’s growth. This is a 21.5% increase on the previous year.”
Vector Powersmart has completed the building of New Zealand’s largest solar installation
over Watercare’s waste-water treatment plant. The 1MW floating solar array is the country’s
fi rst floating solar array and first megawatt-scale solar system.
Under the new regulatory settings which came into effect on 1 April 2020, Vector is subject to
a revenue cap over a five-year period, compared to a price cap in the previous period. A
feature of the current regime is that any revenue under recovery can be recovered in
subsequent years. Given the impact of Covid-19 on revenues, we are changing our previous
policy and will use loss rental rebates, allocated by Transpower, to offset future customer
prices increases. It is important to note that consumers will not be disadvantaged by this as it
will limit future price shocks and any excess will be returned to consumers later.
Vector’s response to COVID-19: Key actions and initiatives
Vector continued to provide essential services throughout the COVID-19 lockdown periods in
the reporting period. Acknowledging the necessity of its services, Vector temporarily halted
planned outages across the electricity and gas networks to minimise disruption to customers
during the first lockdown, with works only going ahead if they were critical for safety,
maintenance, or to support other essential services to operate.
The company also initiated a programme of work alongside other gas and electricity network
providers to offer business customers three-month payment deferral plans.
The E-Co Products Group was adversely impacted by the COVID-19 lockdown. Vector has
taken a conservative position and impaired the carrying value of this business to reflect the
uncertain economic environment Vector is operating in.
Looking ahead

creating a new energy future


For the coming financial year Vector is targeting adjusted EBITDA in the range of $480m to
$500m.
In July 2020, Vector announced a strategic alliance with Amazon Web Services (AWS) to
jointly develop the New Energy Platform, aimed at changing how energy is managed,
delivered and consumed. Partnering with like-minded global companies such as AWS is
evidence of Vector’s Symphony strategy in action – of leveraging data and innovation in
order to deliver cleaner, more affordable and resilient energy options for consumers.
“We believe partnerships such as this are critical to the new energy future, and our focus in
FY21 remains on developing solutions that deliver more choice to consumers,” said Mr
Mackenzie. “We will continue to explore strategic partnerships that enable us to drive our
Symphony strategy forward, support decarbonisation and the electrification of vehicles, and
bring innovation and customer-centric solutions to the market.”
In April, we saw a significant negative price reset in our electricity business, with the new
Default Price-Path 3 (DPP3) regulatory settings coming into effect. Mr Mackenzie said that
Vector remains concerned by regulatory settings and their impact on the company’s ability to
invest.
He said the economic uncertainties as a result of COVID-19 will be with us for some time but
Vector remains confident in its strategy; and the current environment further highlights the
need for smart investment and an unfaltering focus on customers.
Vector’s Board of Directors
Mr Mackenzie said, “I would like to acknowledge Dame Alison Paterson, who will be stepping
down as Vector’s Chair next month. Dame Alison’s governance experience is unparalleled in
New Zealand, and we have benefited from her guidance over the past few years. On behalf
of Vector, we thank her for her contribution and wish her well in retirement.”
As announced in June 2020, current non-executive director, Jonathan Mason will take on the
role of Chair after Dame Alison’s retirement at the Annual Shareholder Meeting on 25
September 2020.
[1]
Excludes capital contributions
ENDS

creating a new energy future


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

Media contact
Rachel Reynolds, Senior Communications Partner, Vector
Rachel.reynolds@vector.co.nz
, 021 419 501

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

---

ANNUAL REPORT 2020
The
interplay
of today
and
tomorrow.

Second
to second.
Decade
to decade.
THE INTERPLAY OF
TODAY AND TOMORROW

At Vector, the interplay of daily living, detail and foresight – now
and in the future – motivates us to ensure our essential services
are delivered for customers, but also that we continue to evolve
to meet future challenges. Our focus is on being proactive,
leading, and creating, not waiting for the future to arrive. 
This year, the COVID-19 lockdowns further highlighted the
need for everyone who uses our services to have as close to
uninterrupted supply as possible. Our people are dedicated
to making that happen. We continue to lift our responsiveness
to ensure our energy system operates at peak efficiency.
We continue to sharpen our networks and increase new
technologies. We question the rules that seem to hold energy
consumers back. 
In the longer term, as the very nature of how customers source
their power changes, we’ll be at the heart of a digital and
technological revolution that will accelerate decarbonisation and
see our customers empowered as never before. We have a key
role to play in creating a cleaner energy future. Already, we’re
engaging in new technologies, partnerships and global alliances
that will redefine the possibilities in the years ahead.
1 ―

About this report
This report, dated 26 August 2020, is a review of Vector’s
financial and operational performance for the year ended
30 June 2020.
The financial statements have been prepared in accordance
with appropriate accounting standards and have been
independently audited by KPMG.
The financial and operational information has been compiled
in line with NZX Rules and recommendations for investor
reporting.
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 statements 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.
THE INTERPLAY OF TODAY AND TOMORROW
― 2

3 ―
Symphony Strategy4
Performance snapshot6
Chair and Group Chief Executive report8
Chief Financial Officer report12
Safety always14
Our people15
Regulated networks16
Gas trading18
Metering19
Sustainability20
Our Board22
Our management team24
Governance report26
Entrust, majority shareholder of Vector29
Joint ventures and investments30
Operating statistics31
Financial performance trends32
Non-GAAP financial information34
Financials35
Independent auditor’s report84
Statutory information90
Financial calendar and directory100

Contents

Symphony
Strategy
Energy systems in New Zealand
and globally are under pressure
to respond to the uptake of new
consumer energy technology,
electrification of transport, demands
for decarbonisation, increased
consumption of renewable energy
and energy poverty.
Disruption is here, and while some
energy companies choose to take a
“wait and see” approach, Vector has
been an active leader in the disruption
for years. We have long recognised
the potential benefits of energy sector
transformation, and we’ve been
leading the adoption of new energy
technologies in New Zealand as we
gear our business towards putting the
customer at the heart of the energy
system. We’ve recently named this
strategy ‘Symphony’, in which each
of our six business units has a key role
to play to:
1. Design energy solutions and
systems around the customer –
transforming our systems to start
with demand, not supply.
2. Keep it local – locate energy systems
in the community to increase resilience
and system-wide efficiencies.
3. Optimise the system – leverage smart
energy solutions, future focused using
technology and data to support an agile
system which can unlock new products
and solutions for our customers.
4. Capture the value of coordination –
enable an energy system that is more
than the sum of its parts through
coordination between customers
and their energy systems, between
distributed energy resources, and
across energy supply chains.
Symphony is how Vector is creating a new
energy future, supporting a cleaner, more
affordable and reliable energy system.
― 4
THE INTERPLAY OF TODAY AND TOMORROW

C
o
m
m
u
n
i
t
y
C
u
s
t
o
m
e
r
THE FUTURE OF ENERGY
Customer benefits
of Symphony
Community
generation &
storage
Peer to peer
trading
EV charging
Electrification of
public transport
Microgrids
EV
Battery
How we’re creating a new energy future: 
‒Intelligent Distribution Network
‒Harnessing the power of data
analytics and new technology
‒Working with aligned partners and
sector specialists to accelerate our
progress and ensure best practice
‒Working collaboratively across the
Vector Group to unlock potential
‒Keeping the customer at the heart
of every decision
Energy
efficiency
apps
Solar
COST EFFICIENCIES
Cost efficiencies can be delivered by
harnessing the power of data to build
efficient assets and provide new
products and services to our customers
RELIABILITY & RESILIENCY
Reliability and resiliency will increase,
due to data insights into operational and
asset performance and customer trends
CUSTOMER CHOICE
Customer choice increased across a range
of competing services to create healthier
and smarter homes that will optimise
energy use to suit their needs
CLIMATE ACTION
Climate action is enabled by
supporting New Zealand’s electrification
of transport and transition to a low
emissions economy
Data &
electricity
Smart
distribution
network
KEY
‒Connecting network assets and
distributed energy resources with
a focus on cyber security
‒Enabling customers to have cleaner,
more reliable and affordable energy
‒Advanced meters allowing customers
to develop new products and services
for changing consumer needs.
5 ―
SYMPHONY STRATEGY

15,432
NEW ELECTRICITY AND GAS
CONNECTIONS ADDED
STRATEGIC
ALLIANCE
WITH AMAZON WEB SERVICES TO
CREATE THE NEW ENERGY PLATFORM
ESSENTIAL
SERVICE
STATUS DURING COVID-19 ALERT
LEVELS 4 AND 3 – THANK YOU TO
OUR PEOPLE AND PARTNERS FOR
ENABLING VECTOR TO KEEP THE LIGHTS
ON AND ENERGY FLOWING FOR OUR
CUSTOMERS DURING THE PANDEMIC
BAT TERY
INDUSTRY
GROUP (B.I.G.)
SPEARHEADED AN INDUSTRY-WIDE
EFFORT TO DEVELOP A CIRCULAR
ECONOMY PRODUCT STEWARDSHIP
SCHEME FOR END-OF-LIFE BATTERIES
CUSTOMERS AND COMMUNITY
$
488.7
M

INVESTED
GROSS CAPITAL EXPENDITURE
INVESTMENT ACROSS VECTOR GROUP
OUR ENERGY SYSTEMS
119,000
+
ADVANCED METERS INSTALLED
IN AUSTRALIA
Performance
snapshot
― 6
THE INTERPLAY OF TODAY AND TOMORROW

SUPREME
AWARD
AT THE DIVERSITY WORKS AWARDS
FOR OUR COMMITMENT TO BUILDING
AN INCLUSIVE AND SUPPORTIVE
WORKPLACE CULTURE
17
%
REDUCTION IN OUR TRIFR COMPARED
WITH FY19, 11% INCREASE IN LTIFR
1
GENDER
DIVERSITY
35
%
FEMALE EMPLOYEES
(UP FROM 34% FY19)
$
97. 3
M
GROUP NET PROFIT AFTER TAX
MORE THAN
$
1
B
SUCCESSFUL DEBT RAISING AND
REFINANCING ACROSS NEW ZEALAND
AND UNITED STATES FINANCIAL MARKETS
16.5
CENTS
PER SHARE FULL-YEAR DIVIDEND
$
490.0
M
ADJUSTED EBITDA
2
WAIHEKE
ISLAND
SUPPORTING THE GOAL TO BECOME THE
WORLD’S FIRST ELECTRIFIED ISLAND
THANKS TO AN EECA FUNDING GRANT
TO VECTOR TO INSTALL SMART EV
CHARGING INFRASTRUCTURE
VECTOR
POWERSMART
CLEAN ENERGY SYSTEMS DELIVERED
FOR THE GOVERNMENT OF NIUE (WITH
SUPPORT FROM MINISTRY OF FOREIGN
AFFAIRS AND TRADE) AND WATERCARE
CLEAN ENERGY
EMPOWERED PEOPLE
FINANCIAL SUSTAINABILITY
SALE
OF KAPUNI GAS TREATMENT PLANT AND
ASSOCIATED ASSETS TO TODD ENERGY
1. Lost Time Injury Frequency Rate (LTIFR) and Total
Recordable Injury Frequency Rate (TRIFR).
2. Refer to Non-GAAP reconciliation on page 34.
7 ―
PERFORMANCE SNAPSHOT

One of the biggest lessons from the
past year is how important it is to be
ready and willing to adapt to change
within an unchartered and fast-
moving environment.
As a provider of essential services,
Vector is proud of the way our people
responded to the COVID-19 global
pandemic. Whether it meant putting
the needs of our customers and
communities ahead of their own fears
or working collaboratively to find an
innovative solution to a new problem
– our people showed courage and
determination at every turn.
As well as a summary of our past
year’s performance, this report
includes tributes to the outstanding
commitment and dedication of our
people and field service partners,
who went above and beyond for
our customers in the most unsettling
of circumstances.
In addition to adapting admirably to
change, our people and partners have
been the driving force behind Vector’s
exciting progress towards our new
energy future vision in FY20. Despite
the challenges of today, our integrated
Group strategy we call ‘Symphony’
is preparing us for the opportunities
of tomorrow.
Through Symphony, we are tracking
well towards our objective of providing
shareholders with more options for
sustainable returns – further defining
our company as an innovative energy
group with a growing local and
international impact.
Steady earnings performance
The Group delivered a steady earnings
performance for the year, with the
adjusted EBITDA of $490.0 million,
$4.2 million ahead of FY19.
Our revenues continued to grow
from investment in metering in New
Zealand and Australia, however we
still face challenges given the recent
electricity regulatory reset and interest
rate environment. These gains were
partially offset by increased maintenance
expenditure to improve electricity
network reliability, as well as the impact
of COVID-19, which was particularly
significant for the E-Co Products Group,
which had demonstrated improved
performance prior to ceasing operations
during Alert Level 4 lockdown.
Group net profit after tax was $97.3
million which is an improvement on the
previous year. More detailed information
about our financial performance is
provided in the Financial Review on
pages 12 to 13.
Dividend
As announced in our interim report,
the Board has decided to move from a
progressive dividend policy, to a policy
of maintaining the current dividend
of 16.5 cents per annum, with the
expectation of future dividend growth
based on projected growth in Vector’s
businesses.
This year, shareholders will receive a
final dividend of 8.25 cents per share
imputed at 10.5%, taking the full-year
partially imputed dividend to 16.5 cents
per share. The final dividend will be paid
to investors who are on the register at
14 September 2020 and distributed to
investors on 21 September 2020.
Chair and
Group Chief
Executive
report
COVID-19 network demand impact
Understanding how and why demand
patterns change over time is essential
for efficient network planning and
investment. Throughout each stage of
the COVID-19 lockdown, Vector observed
significant changes in consumption
trends across our electricity and gas
networks. At the start of Alert Level
4 on 25 March 2020, volume across
our electricity network dropped by
approximately 15% compared with the
average consumption of the previous
three years. Across our gas network it
dropped by approximately 22%. For the
first time, weekday commercial load
profiles across both networks resembled
those of a typical weekend.
With more people living, working
and schooling from home, residential
consumption during Alert Level 4
increased by approximately 13%. We also
noticed morning peaks started later
in the day and a midday peak forming
for the first time on record. When the
country entered COVID-19 Alert Level
1, residential trends largely returned to
normal; however, commercial energy
usage remains suppressed compared
with historical averages.
Vector continues to advocate for
greater access to customer advanced
meter data. These insights would allow
us to harness the latest data analysis
technologies to improve investment
decisions and forecasting methods for
new customer growth, as well as improve
customer experiences by enabling more
accurate customer communication
about a network outage and more
coordinated outage responses.
THE INTERPLAY OF TODAY AND TOMORROW
― 8

Accelerated momentum
across the Group
During the initial COVID-19 lockdown,
our teams were busy finalising an
exciting strategic alliance with global
cloud provider Amazon Web Services
(AWS). While the agreement was signed
after the balance date, this alliance is a
critical part of unlocking the new energy
future. Our multi-year partnership with
AWS will see us co-develop a cloud-
based New Energy Platform (NEP) which
will radically improve the way we collect
and process energy consumption data
from advanced meters. The strategic
alliance to jointly develop the NEP is the
first of its kind for AWS in New Zealand,
and for AWS in the global energy sector.
The NEP will help to unlock innovative
energy products and services to benefit
consumers. We look forward to working
alongside AWS and our energy industry
partners initially in New Zealand and
Australia to bring these to market
over time.
This year, Vector Metering has expanded
its leadership position in the Australian
and New Zealand markets. Our
investment in people, systems and
digital platforms has enabled us to
optimise our installation process over
the past year, comfortably meeting
service level agreements and enabling
us to consistently and reliably scale
up meter installations. In October
2019, Vector Metering announced an
innovative partnership with Genesis
Energy to roll out advanced gas meters
to their customers across New Zealand.
The advanced metering solution will see
Genesis become the first energy retailer
to move customers from an analogue
to digital platform, resulting in greater
transparency and visibility over customer
gas use.
The sale of the Kapuni Gas Treatment
Plant and associated assets to Todd
Energy marked a key milestone for
our Gas Trading business this year.
The process has constructively reset
the relationship. The deal includes long-
term supply agreements, which means
Vector can support our customers who
value gas as a preferred energy choice.
Vector’s LPG business, Vector OnGas,
continues to operate in an increasingly
competitive retail marketplace. The
sustained strong performance from the
Vector OnGas team is testament to their
commitment to safety and customer
service excellence, as well as innovating
to provide new customer solutions and
optimise existing operations.
Our new energy solutions business,
Vector PowerSmart, has delivered
several major projects in New Zealand
and the Pacific this year – further
enhancing our reputation as a leading
provider of advanced energy solutions
in the region. The build of the floating
solar array at Watercare’s Rosedale
Water Treatment Plant is complete
with commissioning in late August.
Our Vector Fibre business has continued
to perform well this year, progressing
plans to create new products and
services to capitalise on changes in the
telecommunications landscape. Vector
Fibre remains focused on seeing our
fibre network support the roll-out of
5G technology against the backdrop
of regulation opportunities to increase
industry competition. A key component
of this strategy is investment in digital
platforms to enhance the way our
customers interact with us through the
provisioning process.
As we continue our efforts to create a
new energy future for New Zealand,
Australia and beyond, the power of the
Symphony strategy lies in combining our
many strengths. As an integrated Group
united under one strategy, this enables
us to overcome challenges and capitalise
on the best opportunities to empower
our customers now and into the future.
Lifting customer service
In a year characterised by constant
change, our commitment to improving
customer service in our regulated
electricity and gas businesses has
remained constant, and we are pleased
to report continued progress.
We invested $317.1 million – or $6.1 million
every week – to make our networks
more intelligent and resilient and to
keep pace with Auckland’s growth.
Furthermore, we have actively embraced
new ways of working that have reduced
the frequency and duration of outages
across the electricity network. In FY20
we ran an internal programme to
significantly reduce our System Average
Interruption Duration Index (SAIDI)
and continuously drive reliability and
performance. We are proud of the
progress we made, and will work hard to
build on these achievements to deliver
a favourable network performance
outcome in the coming year.
SIMON MACKENZIE
GROUP CHIEF EXECUTIVE OFFICER
DAME ALISON PATERSON
CHAIR
9 ―
CHAIR AND GROUP CHIEF EXECUTIVE REPORT

In the past year, Vector has progressed
work on a digital platform to enhance
the way we monitor the condition,
performance and future potential of the
many thousands of assets that make up
our electricity network, such as poles,
wires and transformers.
Working collaboratively with our field
service providers (FSPs), we are now
collecting and storing more detailed,
accurate and consistent data to track
the general health and condition of our
network assets. This capability is paving
the way for more precise and real-time
information flow to customers via the
Outage Centre and other customer
information channels.
Funding efficient investment
As a country – and now more than ever
– we must be strategic and focus on
creating a high-value economy that is
built on innovation, moving from volume
to value. This way of thinking is the
embodiment of our Symphony strategy
and is a central theme in our ongoing
discussions with our regulators, as we
continue to advocate for changes to
reflect the environment we are in.
In November 2019, our Default Price-
Path 3 (DPP3) regulatory settings were
confirmed through to 2025 – providing
targets for electricity network quality
and allowable revenues for the five-year
period, which commenced 1 April 2020.
A significant issue we are facing is the
impact of the inflation assumptions
selected by the Commerce Commission.
Those assumptions used in setting
our new price path have for a decade
systematically over-forecast inflation and
in turn reduced our revenues below levels
consistent with a fair return. This is an
impact that will be further exacerbated
through to 2025 given radically different
inflation expectations since DPP3 was
determined in late 2019. Nor do we believe
this is a sustainable outcome or one that
is consistent with the legislation intended
to ensure regulated businesses can invest
for the long-term interests of consumers
and earn an appropriate return.
This is not an issue that is exclusive to
Vector, as other regulated entities in
New Zealand face the same challenges
and a review is underway in Australia
with their regulator. We will actively
engage with the Commerce Commission
to seek a constructive solution.
Vector considers this to be a critical
matter that must be worked through
collaboratively to ensure Auckland
growth and government infrastructure
investments are supported through
aligned regulatory settings, while
ensuring fair returns to our shareholders.
Despite this obvious cashflow
challenge, Vector remains committed
to upgrading, extending and
maintaining Auckland’s electricity
network to the best of our ability for
the benefit of energy consumers.
Vector Technology Services
In the past year, Vector carried out
a review of our assets and business
activities to support the delivery of
our future-focused Symphony strategy.
In addition to the movement of some
assets between wholly-owned entities
within the Group, the restructure saw
several digital assets moved to a new
entity, which we have named Vector
Technology Services (VTS).
Our Symphony strategy has a
fundamental technology overlay
across all business units, including
our electricity business, and there
are opportunities to commercialise
these solutions. Beyond creating
another revenue stream for the
Group, taking these proprietary
solutions to market will support other
infrastructure companies on a similar
digital transformation. The review
found that such activities can be
more effectively and transparently
achieved through a new subsidiary
company with its own incentives
and leadership. At first, VTS will
focus on our industry-leading
cyber security capability which was
developed by Vector’s own cyber
experts with input from expert global
partners. We will also take to market
our Distributed Energy Resource
Management Systems (DERMS), the
system co-developed with our partner,
mPrest. In future, we will look to add
“As a country – and now more than ever –
we must be strategic and focus on creating
a high-value economy that is built on
innovation, moving from volume to value.”
― 10
THE INTERPLAY OF TODAY AND TOMORROW

to our catalogue of services, working
alongside appropriately skilled partners.
Leadership
Continuing to use Symphony as
the strategy to deliver a new energy
future vision has led us to implement
a new approach to working across
the Group. Under our new model,
we draw on the power of cross-
functional team-based collaboration
to prioritise and achieve our business
goals. In the past year, we have
commenced our evolution towards a
new operating model where employees
are better supported to succeed
personally, professionally and through
business performance. This way of
working has already fostered the
development of new technical skills
throughout our workforce, opened
career pathways and released new
ways of thinking that support our
direction as a business and the sort
of culture we aspire to.
In August 2019, we were pleased
to be awarded the Empowerment,
Diversability and overall Supreme Award
at the Diversity Works Awards for our
commitment to building an inclusive
and supportive workplace culture.
For the Supreme Award, Vector was
chosen from 36 other entrants and 76
entries across nine categories. This is the
second time we have won the Supreme
Award, the first being in 2015.
In November 2019, we announced the
launch of the Battery Industry Group
(B.I.G), a cross-industry collaboration
to design reuse and recycling solutions
for large batteries, commonly found in
electric vehicles or in stationary energy
storage. We are also an active participant
in the Aotearoa Circle, Sustainable
Finance Forum, Sustainable Business
Council and Climate Leaders’ Coalition.
Our cultural leadership has already
been recognised by other like-minded
organisations, for example AWS, which
appreciated the strong cultural alignment
when forming our strategic alliance.
Looking to tomorrow
Vector is focused on managing the
demands of today while preparing our
people, customers and wider energy
sector for the opportunities of tomorrow.
We have the right talent, strategy and
partners to enable us to forge ahead
towards our new energy future vision.
We remain committed to growing,
advancing and maintaining our networks
so they can continue to deliver for our
customers and evolve in line with their
changing energy needs and preferences.
Like all businesses we will continue to
experience the impact and uncertainties
caused by a COVID-19 world. We
remain concerned about the regulatory
settings and the impact on our ability
to invest. We must balance these
external pressures on Vector with our
responsibility to deliver essential services
at affordable prices for customers.
We firmly believe that our Symphony
strategy is the right one for us as we
strive towards our vision of a new energy
future. As a shareholder, in the next year
you can expect to see Vector to continue
to execute our Symphony strategy,
investing wisely to benefit customers.
We will embrace change and disruption
and harness innovation with a relentless
commitment to improving outcomes for
our customers.
Dame Alison Paterson
Chair
Simon Mackenzie
Group Chief Executive
Board succession planning
Succession planning is key to ensuring continuity as the business
environment continues to evolve.
Earlier this year Vector announced our Deputy Chair, Jonathan
Mason, will take over from our Chair, Dame Alison Paterson – who
has made the decision to retire at our upcoming annual meeting on
25 September 2020.
The Board is deeply thankful to Dame Alison for 13 years of
outstanding service on Vector’s Board, including the past two years
serving as our Chair. Her achievements and standing within both
Vector and New Zealand’s wider business community are unparalleled.
While we are reluctant to farewell Dame Alison, the Board
acknowledges it is fortunate to have a director of Jonathan’s calibre
ready to take up the position of Chair in September. Jonathan joined
Vector as a non-executive director in 2013, bringing with him extensive
experience in the energy and financial services sectors. He has a
strong governance background that includes directorships on the
boards of leading companies, such as Air New Zealand, Zespri and
Westpac New Zealand.
We look forward to welcoming Jonathan as he takes the reins from
Dame Alison to continue the Board’s work supporting Vector’s
Symphony strategy and enabling our vision to create a new
energy future.
11 ―
CHAIR AND GROUP CHIEF EXECUTIVE REPORT

Chief Financial
Officer report
Vector’s financial performance for
the year benefitted from continued
advanced meter deployment in
New Zealand and Australia. However,
this was offset by the regulatory
Default Price-Path 3 reset from 1 April
2020 and the impact of COVID-19 which
resulted in lower electricity network
volumes and therefore revenue, driven
by a significant drop in commercial
sector consumption as well as an
impact on the wider business.
We recorded adjusted EBITDA
1
of
$490.0 million. This was up $4.2 million
or 0.9% on last year’s result. Group
net profit after tax was $97.3 million
and includes a non-cash impairment
of $32.0 million in respect of E-Co
Products Group.
COVID-19 impact
With restrictions in place under
COVID-19 Alert Levels 3 and 4, electricity
volumes across our network decreased
by approximately 10% leading to a fall
in revenue for the period. Under DPP3
regulatory settings, any increase or
decrease in electricity revenue relative
to our maximum allowable revenue
(MAR) targets set by the Commerce
Commission, can be adjusted (up
or down) through electricity prices
from 1 April 2022. We are evaluating
the ways in which we can minimise
impacts on customers through price
adjustments through a range of factors,
including market rebates. We continue
to be concerned with the regulatory
settings, particularly in light of the
COVID-19 environment.
The FY20 performance of our unregulated
E-Co Products Group and Gas Trading
businesses was also impacted by the
COVID-19 pandemic. Across the Vector
Group, we estimate that adjusted EBITDA
earnings were adversely impacted
by approximately $10 million. Despite
improved performance from E-Co in the
first half of FY20, Level 3 and 4 restrictions
and the subsequent impact on the wider
economy and consumer confidence,
have impacted E-Co’s growth trajectory
resulting in us taking a conservative
approach and impairing the carrying
value of the E-Co Products Group.
Segment adjusted EBITDA
1

Adjusted EBITDA for our Regulated
Networks was $337.6 million, down
$29.4 million (8.0%) against the prior
year. The lower result was driven by: the
DPP3 price reset which came into effect
on 1 April 2020 and saw prices reduce
by 6.9%; higher maintenance activity
linked to the improvement in reliability
and resilience of the network; as well as
the impact of COVID-19, which saw lower
volumes across our electricity and gas
$
4 9 0 .0
M
ADJUSTED EBITDA
1
JASON HOLLINGWORTH
CHIEF FINANCIAL OFFICER
networks after Alert Level 4 lockdown
began on 25 March 2020.
In FY20 we invested $317.1 million of
capital expenditure to improve the safety,
reliability and resilience of our network
and facilitate Auckland’s growth. This
represents an increase of 21.5%, or
$56.2 million, on a year earlier.
Gas Trading adjusted EBITDA was
$33.9 million, up $2.6 million against the
prior year total of $31.3 million. During
the period, we sold the Kapuni Gas
Treatment Plant and associated assets
to Todd Energy. The effective date of this
transaction was 31 March 2020. The sale
resulted in a decline in adjusted EBITDA
for Q4 FY20, which was largely offset by
interest income on the sale consideration,
reported below the line as part of net
interest costs. This will continue in future.
The overall impact to earnings was not
material to the FY20 result.
The Gas Trading result benefitted
from improved Natural Gas margin and
higher Liquigas throughput. The LPG
business delivered a strong result, despite
the COVID-19 lockdown. Residential
cylinder LPG and Bottle Swap operations
saw increased volumes, while commercial
cylinder and bulk LPG supplies were
lower, due to variable take by a large
customer in the petroleum industry. The
gas market is competitive, and as such,
we continue to evolve our approach.
$
97. 3
M
GROUP NET PROFIT AFTER TAX
1. Refer to Non-GAAP reconciliation on page 34.
― 12
THE INTERPLAY OF TODAY AND TOMORROW

Adjusted EBITDA for Vector’s metering
segment grew $16.1 million (11.6%) to
$154.8 million, as a result of continued
growth in advanced meter deployments
in New Zealand and Australia.
Capital contributions
Capital contributions grew by 9.0% to
$86.4 million during the year, resulting
from continued connection growth and
significant infrastructure development
taking place across Auckland.
The challenge of investing to keep pace
with Auckland’s growth remains and
Vector continued to review and test
our pricing framework in FY20. We
have adjusted our capital contributions
position to reflect regulatory settings
while remaining committed to
facilitating these projects.
Cash flow
Operating cash flow was 14.1% higher at
$397.3 million. This increase was largely
due to a number of factors including
lower interest paid, higher receipts
associated with loss rental rebates, and
higher capital contributions.
 ‒
 ā
 fi
 -
 3
ā‒ā‒ā‒ 4ā‒ 3ā‒ 1ā‒ -ā‒ 9ā‒ fiā‒ 6ā‒ āā‒  ā‒ ‒ā‒‒4ā‒‒3
DIVIDEND DECLARED
CENTS PER SHARE
GROUP CAPITAL EXPENDITURE
$ MILLION











FYFYFYFYFY
.
.
.
.
.
Capital expenditure
Capital expenditure was $488.7 million,
$63.6 million (15%) higher than last
year. This increase reflected ongoing
investment in infrastructure to support
Auckland’s continued growth, higher
network replacement expenditure, and
increasing deployments of advanced
meters as market demand continues
to accelerate in Australia. Network
investment included a programme
to replace and upgrade automated
switching equipment in approximately
180 feeders across the network to
improve circuit options to remotely
restore power to customers experiencing
an outage. This was one of a number
of initiatives aimed at meeting quality
targets and improving reliability.
Re-financing and balance sheet
Vector continues to maintain a strong
balance sheet. Our 30 June 2020 gearing,
as measured by economic net debt
to economic net debt plus adjusted
equity rose to 55.2% from 52.2% at the
beginning of the year.
“Capital expenditure was $488.7 million, $63.6 million
(15%) higher than last year. This increase reflected
ongoing investment in infrastructure to support
Auckland’s continued growth, higher network
replacement expenditure, and increasing deployments
of advanced meters as market demand continues to
accelerate in Australia.”
We successfully raised over NZ$1.1 billion
of debt in the financial year, utilising both
the domestic and the US markets.
In one of the largest deals for a
New Zealand-based entity in recent
times, we secured US$500 million from
the US Private Placement market for
12 and 15 years, which has allowed us
to further extend the maturity profile
of the Group’s debt portfolio and
preserve liquidity.
We remain an ‘investment-grade’ credit
risk with a Baa1 rating from Moody’s and
BBB from Standard & Poor’s.
Dividend
This year, shareholders will receive a
final dividend of 8.25 cents per share
imputed at 10.5%, taking the full-year
partially imputed dividend to 16.5 cents
per share. The final dividend will be paid
to investors who are on the register at
14 September 2020 and distributed to
investors on 21 September 2020.
13 ―
CHIEF FINANCIAL OFFICER REPORT

Safety always
Working and living around risks of
electricity, gas and other energy
systems drives our ‘safety always’
approach. During the COVID-19
pandemic, this focus expanded to
include new controls and processes to
protect the health of our people and
communities. Cautious and considered
at every stage, we were successful in
ensuring continuity of service while
upholding the high health and safety
standards we set for ourselves and
our contractor partners.
Progress towards our Group
safety goals
To track our progress against our
safety goals, Vector continues to record
reactive measures across the Group,
specifically Lost Time Injury Frequency
Rate (LTIFR) and Total Recordable
Injury Frequency Rate (TRIFR). Beyond
tracking progress, these measures
are critical for indicating which areas
require ongoing improvement. In the
past year we observed a 11% increase in
LTIFR and a 17% improvement in TRIFR
across the Group.
The severity rate, which measures
number of lost days per 1 million hours
worked, increased by 235.6%. This was
impacted by a FY19 injury, where time
away from work was incurred in the
2020 financial year.
In alignment with our Symphony
strategy, our approach to managing
safety across the Group is evolving
– moving away from a standardised
approach, to one where the unique
needs and circumstances of different
situations directly inform risk mitigation.
Our focus on managing safety will still
centre around the proactive steps we can
take to avoid incidents, and our reporting
system will still serve to highlight
areas where we can make continuous
improvements. The change in approach
is receiving positive feedback from our
leadership teams and operational staff,
who see this collaborative approach as
a more effective and practical way to
manage safety.
Safety during the
COVID-19 pandemic
As an essential service, thousands of
New Zealanders were relying on us
during the COVID-19 lockdowns. In
Australia, our metering customers
were relying on our teams to continue
operations to support customers
on their behalf. Vector needed to do
everything we could to keep our people
safe and healthy, so they could continue
to keep the lights on and energy
flowing for those depending on us.
Vector’s COVID-19 “Warrant of Fitness”
(WOF) training programme was
created to ensure our operational
teams were fit to work in the field
under COVID-19 Alert Levels. The
WOF programme was later adapted
to support our office teams to re-
enter our workplaces safely under
Level 1. We also had leading external
experts review our safe work practices
and assist with ensuring our staff
communications were evidence based.
The programme was based on
management of change safety protocols
which required each part of the business
to step back and assess risks before
developing controls to protect our
people, their families and communities
while COVID-19 was still active. These
included robust training around hygiene
and physical distancing controls when
working with each other and interacting
with members of the community.
It also included thorough mechanisms
to record contact tracing data.
Our people showed remarkable
commitment and courage during this
time, adapting quickly and adeptly to
the rapidly changing circumstances
and safety requirements asked of them.
Vector continues to provide health
and safety guidance to our office and
operational teams in New Zealand,
Victoria and New South Wales, where,
at the time of writing, community
transmission was still being managed.
Wellness while working
from home
When it became certain that our office-
based employees would work from
home during COVID-19 lockdowns,
Vector introduced a range of initiatives to
ensure their physical environment could
be as safe and comfortable as possible.
During lockdown, Vector provided regular
advice to staff about resilience and well-
being and ensured mental health and
wellness resources were available to
them. We outline other initiatives in the
People section of this report.
“As an essential service,
thousands of New Zealanders
were relying on us during the
COVID-19 lockdowns.”
― 14
THE INTERPLAY OF TODAY AND TOMORROW

Our people
Ultimately, our people are the ones
who will deliver the future of energy.
Over the past year, we have continued
to invest in our people through a range
of award-winning initiatives, further
strengthening Vector’s reputation as
an employer of choice.
FY20 has also seen Vector
purposefully shape our organisation
to amplify the skills and competencies
necessary to continue to deliver our
Symphony strategy. We are integrating
lessons from our global partners to
help cultivate a nimble, innovative
and collaborative culture to propel
the business forward and deliver for
our customers.
Developing talent from within
Vector remains committed to diversity
and inclusion as we recognise the
importance of a dynamic workplace
to drive a range of views that are
representative of our communities
and customers.
In August 2019, Vector was pleased to
win the overall Supreme Award at the
2019 Diversity Works Awards for our
commitment to building an inclusive
and supportive workplace culture.
We also took home the Empowerment
Award in acknowledgement of our
programmes to improve gender diversity
and the Diversability Award for our
work to make Vector a more accessible
environment for people with disabilities.
In the past five years, we have seen a
significant gender composition shift
within our executive team with the
number of female executives increasing
from 17% to 44%. In the same period,
we have seen a gender composition
shift with the number of female
employees increasing from 34% to 35%
across the organisation.
Age-wise, in the past year our employees
aged 20 to 39 have increased to 49.8% –
up from 43.0% one year ago. Those aged
40 and over have decreased by 8.7%. Our
ethnicity profile has moved only slightly,
with Māori representation up 1% to 6.1%
and Pasifika static at 3.1%.
In January we commenced a pilot
coaching programme for an initial
cohort of leaders – all provided positive
feedback on the value of coaching
techniques to increase staff engagement
and grow performance within their
sphere of influence.
Flexibility and the future
The productivity benefits of working
from home have long been discussed
by business experts the world over and
the COVID-19 lockdown provided an
opportunity for Vector to test our own
thinking around workplace flexibility.
We canvassed the views of our people
through a working-from-home survey
which found 90% of people found their
productivity levels were the same or
higher compared with working from
the office. The most popular working-
from-home benefit was ‘avoiding the
commute’, which has the flow-on benefit
of allowing people to strike a better
work-life balance.
The survey is helping the business
evolve our ways-of-working framework
for the future.
1. HRV and Vector PowerSmart staff numbers included
in gender and age data only, not ethnicity.
Adapting to a COVID-19 world
Alongside a thorough programme of employee communications, the
People and Culture response team established a confidential care-
call initiative where every employee was contacted on a regular basis
to ask them if they were coping under the extraordinarily challenging
circumstances. In the event anyone needed extra help – whether that
be in the form of additional ergonomic equipment, counselling support or
a safe environment to seek help, the team was there to source confidential
advice and support where it was needed.
The People and Culture team made over 2,000 confidential calls to over
1,000 staff during lockdown, receiving feedback that people felt supported
and cared for by Vector. The initiative proved particularly beneficial to several
of our Christchurch-based staff who experienced overlaid trauma from the
Christchurch earthquakes and appreciated the personal assistance.
.%
.%.%
.%
.%
.%
.%
EMPLOYEES BY AGE

UNDER 20

20-29

30-39

40-49

50-59

60+

UNKNOWN
.%
.%
.%
EMPLOYEES BY GENDER

FEMALE

MALE

DIVERSE
.%
.%
.%
.%
.%
.%
.%
.%
EMPLOYEES BY ETHNICITY
1

ASIAN

EUROPEAN

MELAA*

NZ EUROPEAN

NZ MĀORI

OTHER

PASIFIKA

UNKNOWN
* Middle East, Latin America and Africa
15 ―
OUR PEOPLE

The regulated gas and electricity
distribution networks that stretch
across the Auckland region serve
thousands of homes and businesses
every day. Maintaining their integrity
while also preparing them for the
opportunities of tomorrow are top
priorities for the Group.
This past year, the continuing
pressures of population growth,
climate change and new technology
adoption were compounded by the
extraordinary circumstances of the
COVID-19 pandemic.
Despite a challenging year, Vector,
with support from our field service
providers (FSPs), continued to
deliver for our communities and
made solid progress towards
our commitment to comply with
network quality standards.
Volumes and new connections
Reflecting Auckland’s continued
growth, new electricity connections
in the year increased to 12,231 from
11,000 in the prior year. Total electricity
connections stood at 580,060, up 1.6%
from 571,125 a year earlier. We also added
3,201 new gas connections. As at 30 June,
total gas connections were 113,960, up
2.1% on a year ago.
Both gas and electricity distribution
volumes were impacted when only
essential businesses were permitted
to operate during COVID-19 lockdown.
Gas volumes were down 0.7% at 14.3 PJ
from 14.4 PJ a year earlier and volumes
transported across the electricity
network fell 1.1% to 8,315 GWh from
8,410 GWh in the prior year.
Improving reliability for
our customers
In FY20 we invested $317.1 million
to improve the safety, reliability and
resilience of our gas and electricity
networks and facilitate Auckland
growth. This is a 21.5% lift on the
previous year’s investment and
reflects our ongoing commitment
to reduce the frequency and
duration of outages across our
electricity network through a mix
of new initiatives and innovative
approaches to asset management.
In FY20 we significantly reduced
SAIDI minutes and aim to build on
the achievements of the past year in
FY21. Critical to this will be the continued
adoption of new technologies and more
advanced operating practices to drive
better outcomes for our customers.
However, challenges remain, such
as climate change, volatile weather
patterns, increased traffic and more
cars hitting poles. We also continue
to work with Auckland Council and
MBIE on vegetation issues affecting
the network.
Protecting our people and
communities in a pandemic
With families and communities based
from home and even more reliant on the
continuity of power, Vector temporarily
halted planned outages across our
electricity and gas networks to minimise
disruption during the COVID-19 lockdowns.
Only works relating to maintenance
necessary for safety or to support other
essential services continued, for example,
upgrading the network to allow a
supermarket to install a new storeroom.
COVID-19 restrictions led to the
suspension of several non-critical
maintenance and capital works projects
across our gas and electricity networks.
When restrictions eased, we worked
collaboratively with our FSP partners
to recover time lost. This has included
increasing our programme of weekend
and night works which has the added
benefit of reducing the inconvenience
planned outages have on customers
during busy times of the day and
week. The intention is to continue
these practices as part of our ongoing
commitment to customer service
excellence and network improvement.
Like many businesses, Vector moved
quickly to prioritise essential energy
services to best protect our people,
communities and customers during the
COVID-19 lockdowns. We commend the
remarkable commitment and courage
of our essential workers who worked
Regulated
networks
$
337.6
M
ADJUSTED EBITDA
1
, DOWN 8%
FROM A YEAR EARLIER
12,231
NEW ELECTRICITY CONNECTIONS
1. Refer to Non-GAAP reconciliation on page 34.
― 16
THE INTERPLAY OF TODAY AND TOMORROW

Waiheke’s goal to become a fully electrified island
In August 2019, Vector was awarded funding from the Government’s
Low Emission Vehicles Contestable Fund (LEVCF), administered by
the Energy Efficiency and Conservation Authority (EECA), to install
and manage at least 80 electric vehicle (EV) 7.2kW smart chargers
in homes across Waiheke Island, along with ten 7.2kW public EV
chargers and one mobile EV charger. The funding will see us put in
place the technology needed to support Waiheke’s goal to become
fully electrified. The technology includes network-ready EV chargers
and public charging infrastructure as well as smart EV charging
systems that will enhance network resilience and avoid the need for
costly traditional network infrastructure. With the numbers of EVs
on the island doubling year-on-year, this new technology will better
manage the expected surges in network demand from increased
EV uptake. The new chargers will connect to Vector’s intelligent
utility networking system of systems, known as DERMS (Distributed
Energy Resource Management System), which the company has
co-developed to help manage and optimise the growth in solar,
battery, EVs and other distributed energy sources and network
connected devices.
Evolution and innovation of work practices
Over the last 12 months, we have invested in new equipment
including bypass cables that enable work to be performed on
de-energised assets while the power remains on for customers.
To integrate bypass cable technology into our approach to
managing the network, we spent time in South Korea learning
the skills and capabilities to bring back to New Zealand and up-
skill our workforce. The first deployment of this new technology
on Auckland’s electricity network occurred in December 2019 in
Tapora. Many in the community would not have been aware of the
maintenance work underway because the bypass cable technology
keeps the power on while the work is being done.
$
6.1
M
PER WEEK INVESTED TO IMPROVE THE
SAFETY, RELIABILITY AND RESILIENCE
OF OUR GAS AND ELECTRICITY
NETWORKS AND TO FACILITATE
AUCKLAND’S CONTINUED GROWTH
3,201
NEW GAS CONNECTIONS
throughout lockdown to keep the lights
on and energy flowing for our customers.
The future of gas
In recent years, industries and
governments both in New Zealand and
globally have taken a growing interest
in the role hydrogen technologies could
play in the decarbonisation of our
energy systems.
However, our focus remains on investing
in the gas distribution business to
ensure the network can grow in line with
Auckland while surpassing expectations
around safety and network quality.
Vegetation management
Trees falling into powerlines during high
winds continues to be one of the leading
causes of power outages that disrupt
our customers. Improving vegetation
management is key to strengthening
network resilience and reliability – and
is an area where partnership with our
customers and community stakeholders
is critical. Increasingly volatile weather
systems, together with Auckland’s
sub-tropical climate, mean regulations
concerning vegetation management
need to change. We are working urgently
with Auckland Council to address this
challenge. Key to this is advocating for
improved risk management measures -
including greater clarity around cutting
and trimming responsibilities - to reduce
the network events that cause disruption
to customers.
17 ―
REGULATED NETWORKS

Gas trading
In December 2019, Vector announced
the sale of the Kapuni Gas Treatment
Plant and associated assets to
Todd Energy. This transaction was
completed on 31 March 2020. The deal
aligns our shared interests in seeing
the Kapuni field developed further.
New natural gas and LPG supply
agreements have been secured as part
of this deal to ensure Vector has long-
term access to gas products on behalf
of our customers. The sale has had no
material impact on adjusted EBITDA
earnings for the FY20 result.
Looking ahead to FY21, the decline
in adjusted EBITDA is largely offset
by interest income on the sale
consideration. Interest income is
reported below the line as part of
net interest costs.
Gas volumes
Natural gas volumes were down, due
to field outages and constraints on the
supply side. However, the team managed
these challenges well, which led to
improved margins over the period.
Group collaboration for customer benefit
LPG and natural gas sales and distribution continued during
lockdown and experienced unprecedented demand for the
time of year as customers sought to stock up on supplies. In
a strong display of collaboration, members of the Gas Trading
and HRV office-based teams rolled up their sleeves to support
the efficient distribution of Gas products to our customers.
HRV staff made outbound calls to commercial customers
to understand their gas requirements given the lockdown
restrictions, LPG was then diverted to meet spiking residential
demand. Our Bottle Swap delivery partner, Carr & Haslam,
also assisted with the massive task of distributing 9kg
orders by providing additional vehicles and drivers to deliver
product across the country. The collective determination and
outstanding teamwork of our partners and operational teams
meant we could deliver product to our customers, while largely
maintaining our residential five-day delivery service level.
SALE
OF KAPUNI GAS TREATMENT
PLANT AND ASSOCIATED ASSETS
TO TODD ENERGY
701,923
9KG BOTTLE SWAPS, A 6.6% LIFT
FROM FY19
116,024
LIQUIGAS LPG TOLLING (TONNES),
UP 5.0% FROM A YEAR EARLIER
$
33.9
M
ADJUSTED EBITDA
1
, UP $2.6M
FROM A YEAR EARLIER
Total natural gas supply in the period was
12.4 PJ, down 23.0% on last year, largely
due to the loss of a major customer part
way through the year.
Growth in LPG
The LPG side of the Gas Trading business
continues to strengthen, solidifying its
reputation as a versatile and convenient
energy choice for homes and businesses
across New Zealand.
Bottle Swap 9kg cylinder volumes were
up by 6.6% to 701,923 swaps and sales
from 658,159 a year earlier. Liquigas
tolling volumes were up 5.0% to 116,024
tonnes, mainly due to the signing of a
new enterprise customer in the second
half of the year.
Commercial cylinder and bulk LPG
supplies were down, driven by a decline
in demand during COVID-19 Alert Levels
4 and 3. Gas liquid sales were down 2.2%
to 43,338 tonnes.
1. Refer to Non-GAAP reconciliation on page 34.
― 18
THE INTERPLAY OF TODAY AND TOMORROW

Metering
Introducing the New Energy Platform
The rise in renewable energy, growth in
electric vehicles, and higher consumer
expectations to make energy choices,
require the energy industry to transform
and harness the power of data to make
smarter customer-centric decisions.
Vector and Amazon Web Services
(AWS) recently announced a global
multi-year strategic alliance to jointly
develop the New Energy Platform (NEP)
– an Internet of Things (IoT) and analytics
solution to enable the delivery of more
affordable, reliable, and cleaner energy
options to consumers.
The initial focus of the NEP is to rapidly
collect and analyse data from more
than 1.6 million Vector advanced meters
that securely gather information on
energy consumption across Australia
and New Zealand. The insights collected
by the NEP will help Vector Metering to
enable energy and utility companies to
develop tailored products and energy
management for their customers based
on their energy consumption needs.
The NEP will leverage AWS IoT Analytics,
a fully-managed service that makes
it easy to run and operationalise
sophisticated analytics on large volumes
of data to enable Vector Metering
and its customers to develop insights
on network performance to help
plan energy networks, drive smarter
investment decisions, and increase
reliability for consumers.
By increasing the capacity and rate of
data collection, the NEP will also help
Vector Metering deliver meter reporting
from the current 30 minute to five
minute intervals in Australia by 2021, as
required by the Australian market rules.
In the future, insights from the NEP will
enable the market to develop innovative
solutions and other new market models
that accelerate the uptake of renewables
and electric vehicles.
Through the strategic alliance, Vector
and AWS plan to assemble a highly
skilled technology and engineering team
in Auckland to co-develop the platform
with our customers.
This strategic alliance to jointly develop
the NEP is the first of its kind for AWS in
New Zealand, and for AWS in the global
energy sector. The NEP is another step
in our long-stated ambition to benefit
our energy and utility customers, and
ultimately consumers. As regulators in
New Zealand and Australia request that
data becomes more accessible, and with
the exponential increase in the volume
of data available, we will continue to lead
with these types of partnerships.
can further optimise our metering
solutions and enable us to deliver even
more value to our customers at scale.
We have started multiple upgrade
programmes across key service
platforms to ensure we continue to meet
the evolving needs of our customers. In
the past year we announced a significant
upgrade programme to replace all
existing 2G modems with future proofed
technology, which will support 4G and
5G technology as it becomes available.
Once complete, this investment will clear
the way for continued meter connectivity
and enable ongoing product innovation
opportunities decades into the future.
Innovating for our customers
In October 2019, Vector Metering
announced a partnership with Genesis
Energy to roll out advanced gas meters,
making Genesis the first energy retailer
in New Zealand to offer its customers a
digital gas metering solution.
This innovation will provide Genesis’
customers with the benefit of full
visibility across their gas use at home,
giving them more freedom to make
decisions about their energy usage long
before their bill arrives. It will also avoid
the need to have a meter reader visit the
consumer’s property.
Today Genesis has 110,000 natural gas
customers across New Zealand who
could benefit from the solution. We
are excited to be working with Genesis
on this large deployment that will help
them better manage their business and
respond to their customers’ needs.
Advancing operational excellence
Over the past year we have continued
to invest in the service delivery software
and meter data processing capability
which has enabled us to consistently
outperform our service levels. These
investments are driving efficiencies
throughout our operations and enabling
us to scale quickly while maintaining
customer excellence and a strong health
and safety focus.
Advanced meters enable our energy
retail customers to provide accurate
billing information to their energy
consumers. Increasingly, meter data is
playing an important role in enabling
benefits to the way people use and
consume energy.
Operationally, our metering business
has continued to thrive as a market
leader in Australasia over the past year.
This is an achievement underpinned
by an unwavering commitment to
operational and customer service
excellence supported by a strong
health and safety focus.
Expanding our metering fleet
In the 12 months to 30 June 2020, we
installed 36,350 advanced meters in
New Zealand and 119,033 in Australia.
Our advanced meter fleet across the two
countries grew 10% to 1.71 million, from
1.56 million the year before.
We have now deployed almost 280,000
advanced meters in Australia, having
met the 250,000 milestone in April
during the initial COVID-19 pandemic
lockdown. In Australia, we are now
averaging approximately 10,000
installations per month.
Preparing for future growth
Vector has continued to explore how
next generation connectivity platforms
19 ―
METERING

Sustainability
Our approach to sustainability is to
deliver innovative, long-term solutions
for our shareholders, customers,
partners and suppliers to build shared
resilience, reduce our carbon footprint
and help regenerate our environment.
Our Symphony strategy enables us to
drive better environmental, social and
economic business outcomes such as
energy affordability, decarbonisation and
the circular economy, aligned to the UN
YEAR ENDED 30 JUNEFY17FY18FY19FY20
% Change
from FY17
baseline
Scope 1*341,964371,084402,575300,315-12.18%
Scope 2*31,59929,07023,76822,863-27.65%
Scope 3*–5,86911,00911,180
* 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 except for Leaseplan fleet fuel emissions in FY20.
FY20: Seven SDGs
Underpinned by:
Sustainable Development Goals (SDGs)
which remain our ultimate focus.
In FY20, we focused on seven SDGs, all
supported by Goal 17: Partnerships for
the Goals.
Greenhouse gas emissions
In the past year, our carbon footprint
(Scope 1, 2 and 3) reduced by 23.6%,
which is a reduction of approximately
103,000 tonnes CO
2
e.
Historically, our primary source of
greenhouse gas emissions has stemmed
from our gas processing operation at
Kapuni, representing around 83% of total
emissions in past years. Due to the sale of
our Kapuni Gas Treatment Plant to Todd
Energy in early 2020, the Group’s Scope
1 emissions for FY20 have substantially
decreased by 25.4% as compared with FY19.
Our Scope 2 emissions, which relate to
our purchased electricity (all sites) and
the electricity distribution losses from our
Auckland electricity network, decreased
by 3.8%.
Scope 3 emissions increased by 1.6%.
Scope 3 emissions primarily consist of
fuel consumption by the service delivery
vehicles used by our key field service
providers for network maintenance.
MEMBER OF:
CARBON DISCLOSURE
PROJECT (CDP) SCORE
‒CLIMATE LEADERS COALITION
‒SUSTAINABLE BUSINESS COUNCIL
‒AOTEAROA CIRCLE
‒SUSTAINABLE FINANCE FORUM
B
TARGET: CORPORATE
CARBON INTENSITY
RATE – ANNUAL
REDUCTION OF 5%
POSITIVE CARBON
HANDPRINT
VECTOR HRV AND SMART METERING
PRODUCTS HELP CREATE HEALTHY AND
ENERGY-EFFICIENT HOMES AND
BUSINESSES. VECTOR POWERSMART
OFFERS SOLAR AND BATTERY SOLUTIONS
TO HELP LOWER OUR CUSTOMERS’
CARBON FOOTPRINTS. WE ARE ENABLING
THE DECARBONISATION OF AUCKLAND’S
TRANSPORT SYSTEM THROUGH OUR
NETWORK AND CHARGING
INFRASTRUCTURE
12.6
%
FY20 REDUCTION
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 39.6% (A
REDUCTION OF ABSOLUTE EMISSIONS
BY 37.6% FOR THESE SOURCES)
23.6
%
REDUCTION OF CARBON FOOTPRINT
26,735
NATIVE TREES AND SHRUBS PLANTED
IN PARTNERSHIP WITH SUSTAINABLE
COASTLINES AND AUCKLAND COUNCIL
AS PART OF VECTOR’S URBAN FOREST
INITIATIVE
BAT TERY
INDUSTRY
GROUP (B.I.G.)
B.I.G.’S ROLE IS TO DESIGN A PRODUCT
STEWARDSHIP SCHEME FOR LARGE
BATTERIES WHICH SUPPORTS A
CIRCULAR ECONOMY. B.I.G. NOW HAS
MORE THAN 140 ORGANISATIONS AND
INDIVIDUALS AS MEMBERS ACROSS
ENERGY, WASTE, TRANSPORT AND
BATTERY INDUSTRIES, AND WAS
CONVENED AND IS CHAIRED BY VECTOR
― 20
THE INTERPLAY OF TODAY AND TOMORROW

Floating solar delivers clean energy solutions
Vector PowerSmart has been working alongside Watercare to
deliver New Zealand’s first floating solar array. Situated on the
Rosedale wastewater treatment pond near Auckland’s Northern
Motorway, the array features more than 2,700 solar panels and
3,000 floating pontoons. Once fully commissioned, it will generate
an estimated 1,480 megawatt hours of electricity each year – the
equivalent of 200 average New Zealand homes - with zero emissions.
The project is New Zealand’s first foray into floating solar. With land
at a premium in Auckland, the innovative floating array will cover
only three percent of the pond’s surface area, despite its significant
generation capacity.
The array will be used to supplement electricity from the grid as well
as co-generation from biogas, which is already generated on-site
from wastewater treatment. The electricity is used for pumping and
aeration for natural bacteria that help break down the waste as part
of the treatment process.
Watercare has an ambitious programme to reduce its energy use by
8GWh by 2022 and to achieve energy self-sufficiency at its Mangere
and Rosedale wastewater treatment plants by 2025.
Vector PowerSmart is responsible for delivering landmark utility-
scale solar and battery projects in the Pacific Islands, utility battery
projects on the Vector network and commercial solar and battery
installations throughout New Zealand.
Looking ahead
We recognise the community’s focus on the
challenges of decarbonisation and climate change,
so will continually evolve our approach in order to
ensure we invest in these areas.
16
VECTOR LIGHTS EVENTS
FOR AUCKLANDERS IN FY20
SCHOOLS
PROGRAMME
IN FY20, MORE THAN 8,000 CHILDREN
IN AUCKLAND SCHOOLS ATTENDED
AROUND 100 SESSIONS OF VECTOR’S
FULLY-FUNDED ‘STAY SAFE’ AND ‘BE
SUSTAINABLE’ EDUCATIONAL
PROGRAMMES
ELECTRIC
VEHICLES
AS AT JUNE 2020, VECTOR HAS:
‒18 X RAPID CHARGERS
‒12 X STANDARD CHARGERS
‒ENABLED MORE THAN 100,000
FREE CHARGING SESSIONS AT
RAPID CHARGERS
‒PROVIDED MORE THAN 900MWH OF
ELECTRICITY OUTPUT TO EV USERS
‒OUR PUBLIC EV CHARGERS ENABLED
EMISSIONS OF APPROXIMATELY 1,500
TONNES OF C0
2
e TO BE AVOIDED
DIVERSITY AND
ACCESSIBILITY
ACHIEVED EMPOWERMENT, DIVERSABILITY
AND OVERALL SUPREME AWARD AT THE
DIVERSITY WORKS AWARDS FOR OUR
COMMITMENT TO BUILDING AN INCLUSIVE
AND SUPPORTIVE WORKPLACE CULTURE
ONE OF THE FIRST LARGE CORPORATE
BUSINESSES TO BE GRANTED THE
ACCESSIBILITY TICK, ALONGSIDE OUR RAINBOW
TICK AND LIVING WAGE ACCREDITATION
PAYMENT
DEFERRALS
DURING
COVID-19
LED THE IMPLEMENTATION OF A
PAYMENT DEFERRAL SCHEME FOR
RETAILERS WITH FOUR OTHER ENERGY
BUSINESSES
TASK FORCE ON CLIMATE-
RELATED FINANCIAL
DISCLOSURES (TCFD)
VECTOR SUPPORTS THE TCFD, IS CLOSELY
FOLLOWING THE PASSAGE OF LEGISLATION
AND IS CURRENTLY WORKING TOWARDS
MAKING THE APPROPRIATE DISCLOSURES
EITHER IN COMPLIANCE WITH, OR IN ADVANCE
OF, LEGISLATION
21 ―
SUSTAINABILITY

JONATHAN MASON
MBA, MA, BA
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 10 May 2013
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 his current directorships
include Air New Zealand Limited, Westpac New Zealand Limited and Zespri
Group Limited. He is also an Adjunct Professor of Management at the
University of Auckland, focusing on finance.
DAME ALISON PATERSON
DNZM, QSO, DCom(hc), FCA, ADistFInstD

INDEPENDENT NON-EXECUTIVE
DIRECTOR AND CHAIR
―
Appointed on 7 March 2007
Dame Alison Paterson is Chair of the Forestry Industry Safety Council,
Te Aupouri Commercial Development Limited and Te Aupouri Fisheries
Management Limited. She is the former Chair of Kiwi Wealth Group
and was also a member of the Health Quality & Safety Commission
New Zealand.
ALASTAIR BELL
BCom; CA, PMP
NON-INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 23 September 2019
Alastair is a chartered accountant, chartered director and qualified
member of the Project Management Institute. He has more than
30 years’ experience in the corporate, public and not-for-profit sectors.
Alastair balances his professional life between board roles and leading a
consultancy specialising in business and infrastructure projects. He is an
elected Trustee of Entrust, chairing the Entrust board’s Communications
and Dividend committee. Formerly, he was deputy chair of Foundation
North and chair of its Audit, Finance and Risk Committee. Alastair is also
chair of the Orakei Community Association and a trustee of the Motutapu
Restoration Trust.
Our Board
― 22
THE INTERPLAY OF TODAY AND TOMORROW

MICHAEL BUCZKOWSKI
BE (Electrical), MBA (With Dist)
NON-INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 14 November 2018
TONY CARTER
BE (Hons), ME, MPhil
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 1 May 2019
BRUCE TURNER
BE (Hons), ME, BCom
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 16 April 2019
Bruce Turner is Director of Central Portfolio Management at Fonterra and
a director of New Zealand Butter Canners Ltd. He is a highly experienced
senior executive who has held leadership roles in the energy industry,
both in New Zealand and overseas. Bruce is an advisory board member
at the University of Colorado’s JP Morgan Center for Commodities. He
was previously a member of the Electricity Authority’s Security and
Reliability Council and 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.
Tony Carter was Managing Director of Foodstuffs New Zealand Ltd for
10 years until he retired in 2010. Tony is currently Chair of Datacom Ltd
and TR Group Ltd, and a director of ANZ Bank New Zealand Ltd. He was
previously Chair of Air New Zealand Ltd until 2019 and Chair of Fisher &
Paykel Healthcare Limited until August 2020. He was made a Companion
of the New Zealand Order of Merit in 2020.
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 PAULA REBSTOCK
BSc (Econ), Dip & MSc (Econ)
INDEPENDENT NON-EXECUTIVE
DIRECTOR
―
Appointed on 16 April 2019
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, Ngāti Whātua
Ōrākei Whai Maia and the New Zealand Defence Force Board and
a director of Auckland Transport, Kiwi Group Holdings Limited,
and SeaLink. Dame Paula is the former Chair of the New Zealand
Commerce Commission.
23 ―
OUR BOARD

FIONA MICHEL
MBA
CHIEF PEOPLE AND CULTURE OFFICER
―
Fiona Michel is responsible for people,
capability and culture at Vector. 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
and is an alumnus of Harvard Business School.
Professionally, Fiona is a graduate of the
Australian Institute of Company Directors, a
Chartered Fellow of the Chartered Institute
of Personnel and Development in the United
Kingdom and a Fellow Certified Practitioner
and Non-Executive Director of the Australian
Human Resources Institute.
JASON HOLLINGWORTH
MCom (Hons), FCA, CMInstD
CHIEF FINANCIAL OFFICER
―
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.
SIMON MACKENZIE
Grad DipBS (Dist), DipFin, NZCE
GROUP CHIEF EXECUTIVE
―
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.
Our
management
team
― 24
THE INTERPLAY OF TODAY AND TOMORROW

BRENDA TALACEK
LLB, MComLaw (Hons)
CHIEF OPERATING OFFICER, METERING
AND ONGAS
―
Brenda Talacek is Vector’s Chief Operating
Officer, Metering and OnGas, responsible
for managing OnGas (LPG and Natural Gas),
Metering NZ/AU and the Kapuni Gas Treatment
Plant transition. Prior to joining Vector, Brenda
held commercial and legal leadership positions
at Genesis Energy, and was Senior Associate at
New Zealand law firm Kensington Swan. Before
joining the Group’s executive team, Brenda
led Vector’s Gas Trading business and has held
senior positions in our Electricity Networks
division. Her leadership and commercial
focus has helped to deliver strong growth,
an excellent record in safety and customer
satisfaction.
MARK TONER
LLB (Hons), BCom
CHIEF PUBLIC POLICY AND
REGULATORY OFFICER
―
With over 20 years’ experience across a range of
sectors including energy, telecommunications,
aviation and technology, Mark Toner has
consistently navigated market, regulatory
and policy changes across industries in
disruption. Responsible for leading the Group’s
regulatory, public policy, sustainability and
data insights functions, he combines strong
stakeholder engagement and reputation
management expertise with his commercial
and legal background to drive Vector’s vision
of Creating a New Energy Future. In 2017, Mark
was awarded the New Zealand Prime Minister’s
Business Scholarship and in 2018 completed
an Advanced Management Programme at
MIT in Boston.
SARAH WILLIAMS
BA, Cert. Journalism
CHIEF MARKETING AND
COMMUNICATIONS OFFICER
―
Sarah Williams is responsible for developing
and delivering Vector Group’s Marketing and
Communications strategy. She is a seasoned
executive with 30 years’ experience in
communication related roles at an executive
and board level with broad experience in both
the corporate and agency environments.
Sarah joins Vector from Porter Novelli, a public
relations and marketing agency where she
held the position of Managing Director. Her
experience ranges from crisis management,
stakeholder engagement, reputation
management, to consumer PR, internal
communications, brand management, digital
and social. In 2019, Sarah was inducted into
the College of Fellows of the Public Relations
Institute of New Zealand in recognition of her
significant contribution to the industry and
high levels of competence.
NIKHIL RAVISHANKAR
BSc, BCom (Hons)
CHIEF DIGITAL OFFICER
―
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.
ANDREA ROBERTSON
ACTING CHIEF OPERATING OFFICER,
ELECTRICITY, GAS AND FIBRE
―
Andrea Robertson is responsible for Vector’s
electricity, gas and fibre networks businesses.
She is a seasoned leader with 30 years’
experience in the energy sector, including
more than 20 years at Vector, where she has
held a mix of customer care, service delivery
and operational leadership roles across our
electricity and fibre businesses. Her proven
ability in change management as well as her
strong relationship, people management and
communication skills are proving invaluable
as Vector completes our recruitment and
selection process for Chief Operating Officer,
Electricity Gas and Fibre. Andrea is a graduate
of the University of Auckland Business
School’s Leadership Programme and the New
Zealand Institute of Management’s Strategic
Business Planning and Strategic Leadership
programmes.
JOHN RODGER
LLB, BA
CHIEF LEGAL AND ASSURANCE OFFICER
AND COMPANY SECRETARY
―
John Rodger is Vector’s Chief Legal and
Assurance Officer and Company Secretary,
responsible for legal, corporate governance,
business performance, internal audit, risk,
compliance, privacy and government relations.
He brings a deep experience managing
business performance and resilience in the
context of fast-moving and rapidly changing
environments. John has significant legal and
commercial expertise gained from working
across a range of sectors including energy,
telecommunications and financial services.
John joined Vector in 2006 from O2 in the UK
and has held legal roles in major corporates and
in professional services firms in London, the
Cayman Islands and New Zealand.
25 ―
OUR MANAGEMENT TEAM

Governance
report
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 24 and 25
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.
The Board comprises seven directors, all
of whom are non-executive. Biographies
are set out on pages 22 and 23 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 five 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 and
Bruce Turner. Michael Buczkowski and
Alastair Bell 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.
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)
Alastair Bell
Tony Car ter
Alison Paterson
Bruce Turner
Nominations
Committee
Tony Carter (Chair*)
Alastair Bell
Mike Buczkowski
Jonathan Mason
Alison Paterson
Paula Rebstock
Bruce Turner
Remuneration
Committee
Tony Carter (Chair*)
Alastair Bell
Alison Paterson
Paula Rebstock
Risk and
Assurance
Committee
Bruce Turner (Chair*)
Michael Buczkowski
Jonathan Mason
Alison Paterson
Paula Rebstock
* effective 2 December 2019.
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 2020 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
(2020) (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
― 26
THE INTERPLAY OF TODAY AND TOMORROW

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.
Graeme Edwards has been the Audit
Partner since 2019 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 2020.
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 $1.3m for services in the
financial year to 30 June 2020. Of this
sum, $1.2m was for audit-related services
and $0.1m was for non-audit related
services. Further detail is provided on
page 54 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 our
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 31000:2018 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 to
proactively identify, analyse, escalate and
treat risks. This risk mindset has been
implemented through:
‒Awareness of risk management’s
value at operational, Executive and
Board level;
‒Relatable and easily applied risk
management policies, processes and
tools;
‒Integration of specialised risk
partners 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.
Vector is undertaking an external
review of its ERM including its key and
emerging risks to incorporate latest
developments in risk management in
the current environment.
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 FY20 and the company’s
progress towards achieving these
objectives are set out on page 15 of this
annual report.
Gender statistics for Board and Executive team:
AS AT 30 JUNE 2020AS AT 30 JUNE 2019
PositionFemaleMaleDiverseFemaleMaleDiverse
Directors
2(29%)5(71%)3 (38%)5 (62%)
Executive team
4(44%)5(56%)2 (29%)5 (71%)
27 ―
GOVERNANCE 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.
Our key and emerging risks
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 managementDelivery 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 securityVector’s IT/OT environment being compromised,
leading to disruption to critical services or confidential
information being released, modified or deleted
Significant HSE incidentSafety 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 or the impacts of
a pandemic on the Vector Group
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 damageThe 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
― 28
THE INTERPLAY OF TODAY AND TOMORROW

ENTRUST, MAJORITY SHAREHOLDER OF VECTOR
29 ―
Entrust, majority
shareholder of Vector
Consumer 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 336,000 families and businesses in
Auckland, Manukau, northern Papakura
and eastern Franklin. Entrust protects
the $3 billion 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.
Passing on a share of Vector’s
profits to beneficiaries
Vector’s growth and operating
performance enables Entrust to
distribute an annual dividend to
beneficiaries through its 75.1% stake
in Vector.
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 2020, key
undergrounding projects have been
undertaken in Mt Albert, Coronation
Road (Mangere Bridge), Selwyn Street
(Onehunga), Powell Street (Avondale),
Ngahue Drive (Stonefields), Campbell
Crescent (Epsom), Norwich Street
(Newton), Ruskin Street (Parnell), and
Bella Vista Road (Herne Bay).
In September 2019, each of
Entrust’s 336,000 beneficiaries
received a $360 dividend –
that’s more than $120 million
going straight into the
Auckland economy.
More than 228 undergrounding
projects have been completed
since the programme began,
in Auckland, Manukau and
northern Papakura.
KAREN SHERRY PAUL HUTCHISON
MICHAEL BUCZKOWSKI (DEPUTY CHAIR)WILLIAM CAIRNS (CHAIR)
ALASTAIR BELL

― 30
THE INTERPLAY OF TODAY AND TOMORROW
Joint ventures
and investments
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.

31 ―
OPERATING STATISTICS
Operating statistics
YEAR ENDED 30 JUNE20202019
ELECTRICITY
Customers
1, 6
580,060571,125
New connections12,23111,000
Net movement in customers
2
8,9358,049
Volume distributed (GWh)8,3158,410
Network length (km)
1
18,99918,884
SAIDI (minutes)
3
Normal operations
4
167.5198.2
Major network events
5
3.4377.2
Total170.9575.4
GAS DISTRIBUTION
Customers
1, 6
113,960111,642
New connections3,2013,322
Net movement in customers
2
2,3182,413
Volume distributed (PJ)14.314.4
GAS TRADING
Natural gas sales (PJ)
7
12.416.1
Gas liquid sales (tonnes)
8
43,33844,309
9kg LPG bottles swapped
9
701,923658,159
Liquigas LPG tolling (tonnes)
10
116,024110,457
METERING
Electricity: smart meters
1, 11
1,713,6741,558,291
Electricity: legacy meters
1
69,52776,367
Electricity: prepay meters
1
2839
Electricity: time-of-use meters
1
12,55612,473
Gas meters
1
230,862228,027
Data management and service connections
1
8,4728,824
1. As at 30 June.
2. Net number of customers added during the period, includes disconnected, reconnected and decommissioned ICPs.
3. SAIDI minutes for the regulatory year – 12 months to 31 March (audited).
4. Normal Operations (SAIDI) includes the impact of 1 Major Event Day (MED) at the cap of 3.37 SAIDI minutes for each
event.
5. This is the amount over and above the MED cap.
6. Billable ICPs.
7. Excludes gas sold as gas liquids.
8. The group completed the sale of its interests in the Kapuni Gas Treatment Plant (KGTP) and co-generation facility on
31 March 2020. As a result, we have changed the methodology of calculating liquids volumes to reflect continuing
activities only. LPG volumes include LPG sold by the OnGas business. LPG and Natural Gasoline sold by KGTP is now
excluded. Comparatives have been restated to reflect this.
9. Number of 9kg LPG bottles swapped and sold during the year.
10. The group has revised the methodology for Liquigas LPG tolling to reflect new contractual terms and calculates
product tolling domestic and exports. Product further tolled in South Island has been removed.
11. The number of advanced meters as at 30 June 2020 includes 168,793 meters managed but not owned by Vector
(30 June 2019: 156,713).

― 32
THE INTERPLAY OF TODAY AND TOMORROW
YEAR ENDED 30 JUNE ($ MILLION)20202019201820172016
PROFIT OR LOSS – CONTINUING OPERATIONS
1
Total income1,294.01,318.61,328.41,226.71,144.6
Adjusted EBITDA
2
490.0485.8470.1474.4473.0
Depreciation and amortisation(262.8)(246.8)(225.9)(199.6)(194.6)
Adjusted EBIT227.2239.0244.2274.8278.4
Net prof it – continuing operations97.384.0149.8168.958.9
PROFIT OR LOSS – DISCONTINUED OPERATIONS
Total income––––110.7
Adjusted EBITDA––––75.3
Depreciation and amortisation––––(5.8)
Adjusted EBIT––––69.5
Net profit – including discontinued operations97.384.0149.8168.9274.4
BALANCE SHEET
Total equity2,259.72,349.42,457.92,448.32,398.3
Total assets6,380.96,061.05,808.05,574.65,603.0
Economic net debt (borrowings net of cash and
short-term deposits)2,882.32,627.52,377.82,220.11,932.9
CASH FLOW
Operating cash flow397.3348.1389.9335.7352.1
Capital expenditure(476.4)(418.4)(386.8)(354.3)(340.1)
Dividends paid(167.0)(164.1)(163.9)(161.0)(159.2)
KEY FINANCIAL MEASURES
Adjusted EBITDA/total income37.9%36.8%35.4%38.7%41.3%
Adjusted EBIT/total income 17.6%18.1%18.4%22.4%24.3%
Equity/total assets35.4%38.8%42.3%43.9%42.8%
Return on assets (adjusted EBITDA/total assets)7.7%8.0%8.1%8.5%8.4%
Gearing
3
55.2%52.2%48.8%47.1%43.7%
Net interest cover – continuing ops (adjusted EBIT/
net f inance costs) (times)1.81.81.82.01.6
Earnings (NPAT) per share (cents) including
discontinued activities9.58.314.816.727.2
Dividends declared, cents per share (fully imputed)16.5016.5016.2516.0015.75
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. Refer to Non-GAAP reconciliation on page 34.
3. 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
474.4470.1485.8
490.0
0
100
-100
200
300
400
500
600
700
473.0
FY20FY19FY18FY17FY16

REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER

TOTAL GROUP

33 ―
FIVE YEAR FINANCIAL PERFORMANCE
6.1%
27.3%
1.7%
64.9%
F
Y
2
0
F
Y
1
9
7.3%
61.4%
2.8%
28.5%
CAPITAL EXPENDITURE

REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER
44.8%
55.2%
F
Y
2
0
F
Y
1
9
52.2%47.8%

ECONOMIC NET DEBT

ADJUSTED EQUITY
SOURCE OF FUNDING – GEARING
AS AT 30 JUNE

REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER

INTER-SEGMENT
TOTAL INCOME
(continuing operations)
$ MILLION
,.
,.
,.
,.
,.
FY16FY17FY18FY19FY20







OPERATING CASH FLOWS
(including discontinued operations)
$ MILLION










FYFYFYFYFY
.
.
.
.
.
NET PROFIT
(including discontinued operations)
$ MILLION







FYFYFYFYFY
.

.

.

.

.

1. FY16 includes a $164.1 million gain on sale of Vector
Gas Limited, partly offset by a $64.0 million non-
cash impairment.
2. FY17 includes a $15.0 million gain from a tax dispute
settlement.
3. FY18 includes a $16.7 million one-off tax gain.
4. FY19 includes a $46.6 million non-cash impairment.
5. FY20 includes a $32.0 million non-cash impairment.

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, amortisation
and impairments from continuing operations
Adjusted EBITDA: EBITDA from continuing operations adjusted for fair value
changes, associates, third-party contributions, and significant
one-off gains, losses, revenues and/or expenses.
20202019
YEAR ENDED 30 JUNE ($ MILLION)
Segment adjusted EBITDA
REPORTED
SEGMENT
EBITDA
LESS THIRD-PARTY
CONTRIBUTIONS
AND OTHER
MOVEMENTS
SEGMENT
ADJUSTED
EBITDA
REPORTED
SEGMENT
EBITDA
LESS THIRD-PARTY
CONTRIBUTIONS
AND OTHER
MOVEMENTS
SEGMENT
ADJUSTED
EBITDA
Metering154.8 – 154.8 138.7 – 138.7
Gas Trading33.9 –33.9 31.3 – 31.3
Unregulated segments188.7 –188.7 170.0 – 170.0
Regulated segment423.3 (85.7)337.6 446.0 (79.0)367.0
TOTAL REPORTED SEGMENTS612.0(85.7)526.3616.0(79.0)537.0
Corporate and other(38.2)1.9 (36.3)(52.8)1.6 (51.2)
TOTAL573.8 (83.8)490.0 563.2 (77.4)485.8
GAAP TO NON-GAAP RECONCILIATION
YEAR ENDED 30 JUNE ($ MILLION)
Group EBITDA and adjusted EBITDA from continuing operations20202019
Reported net profit for the period (GAAP)97.3 84.0
Add back: net interest costs126.5 133.3
Add back: tax (benef it)/expense55.2 52.5
Add back: depreciation and amortisation262.8 246.8
Add back: impairment32.046.6
EBITDA573.8 563.2
Adjusted for:
Associates (share of net (prof it)/loss)(0.3)(0.6)
Third-party contributions(86.4)(79.3)
Fair value change on f inancial instruments3.4 2.5
Gain on sale of Kapuni gas interests(0.5) –
Adjusted EBITDA490.0 485.8
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.
― 34
THE INTERPLAY OF TODAY AND TOMORROW

Financials
35 ―

CONTENTS
Prof it or Loss
37
Other Comprehensive Income
38
Balance Sheet
39
Cash Flows
40
Changes in Equity
41
Notes to the Financial Statements
42
Independent Auditor’s Report
84
2020 FINANCIAL STATEMENTS
These f inancial statements for the year ended 30 June 2020 are dated 26 August 2020,
and signed for and on behalf of Vector Limited by:
Director 26 August 2020
Director 26 August 2020
And management of Vector Limited by:
Group Chief Executive 26 August 2020
Chief Financial Officer 26 August 2020
Financial Statements
― 36
THE INTERPLAY OF TODAY AND TOMORROW

PROFIT OR LOSS
for the year ended 30 June
NOTE
2020
$M
2019
$M
Revenue61,294.01,318.6
Operating expenses7(717.6)(753.5)
Depreciation and amortisation(262.8)(246.8)
Interest costs (net) 8(126.5)(133.3)
Impairment10(32.0)(46.6)
Associates (share of net prof it/(loss))13.10.30.6
Fair value change on f inancial instruments20.2(3.4)(2.5)
Gain on sale of Kapuni gas interests50.5–
Profit/(loss) before income tax152.5136.5
Income tax benef it/(expense)14(55.2)(52.5)
Net profit/(loss) for the period97.384.0
Net profit/(loss) for the period attributable to
Non-controlling interests 1.91.1
Owners of the parent 95.482.9
Basic and diluted earnings per share (cents) 23.39.58.3
37 ―
FINANCIAL STATEMENTS

NOTE
2020
$M
2019
$M
Net profit/(loss) for the period97.384.0
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 reserves20(20.6)(21.0)
Translation of foreign operations3.5(2.1)
Share of other comprehensive income of associate13.1(0.1)–
Items that will not be re-classif ied to prof it or loss:
Fair value change on investment13.2(2.8)0.6
Other comprehensive income for the period net of tax(20.0)(22.5)
Total comprehensive income for the period net of tax77.361.5
Total comprehensive income for the period attributable to
Non-controlling interests 1.91.1
Owners of the parent 75.460.4
OTHER COMPREHENSIVE INCOME
for the year ended 30 June
― 38
THE INTERPLAY OF TODAY AND TOMORROW

NOTE
2020
$M
2019
$M
CURRENT ASSETS
Cash and cash equivalents28.327.6
Trade and other receivables988.6100.1
Contract assets92.7105.2
Inventories9.48.4
Contingent consideration55.2–
Intangible assets2.41.9
Income tax1433.752.4
Total current assets260.3295.6
NON-CURRENT ASSETS
Receivables91.71.7
Derivatives20220.4109.3
Contingent consideration579.5–
Investments1321.724.3
Intangible assets101,283.41,373.2
Property, plant and equipment (PPE)114,367.74,166.3
Right of use assets (ROU)12.135.838.1
Income tax14110.052.3
Deferred tax150.40.2
Total non-current assets6,120.65,765.4
Total assets6,380.96,061.0
CURRENT LIABILITIES
Trade and other payables16201.6200.1
Provisions1727.017.4
Borrowings19374.7481.3
Derivatives209.54.9
Contract liabilities6.253.448.4
Lease liabilities12.28.27.2
Income tax140.10.8
Total current liabilities674.5760.1
NON-CURRENT LIABILITIES
Payables16–1.8
Provisions177.827.4
Borrowings192,760.92,279.7
Derivatives2095.478.2
Contract liabilities6.238.643.9
Lease liabilities12.229.632.7
Deferred tax 15514.4487.8
Total non-current liabilities3,446.72,951.5
Total liabilities4,121.23,711.6
EQUITY
Equity attributable to owners of the parent2,242.82,332.4
Non-controlling interests in subsidiaries16.917.0
Total equity2,259.72,349.4
Total equity and liabilities6,380.96,061.0
Net tangible assets per share (cents)23.395.795.7
Gearing ratio (%)23.355.252.2
BALANCE SHEET
as at 30 June
39 ―
FINANCIAL STATEMENTS

NOTE
2020
$M
2019
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts f rom customers1,312.91,316.5
Interest received 2.01.1
Payments to suppliers and employees(717.2)(765.3)
Interest paid(134.0)(142.6)
Income tax paid (66.4)(61.6)
Net cash flows from/(used in) operating activities22.1397.3348.1
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds f rom sale of PPE and software intangibles0.50.6
Purchase and construction of PPE (436.7)(383.2)
Purchase and development of software intangibles(39.7)(35.2)
Acquisition of businesses–(8.0)
Other investments(0.3)(1.6)
Net cash flows from/(used in) investing activities(476.2)(427.4)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds f rom borrowings797.1535.0
Repayment of borrowings(541.6)(285.6)
Dividends paid (167.0)(164.1)
Lease liabilities payments(8.9)(6.2)
Other f inancing cash flows–(0.1)
Net cash flows from/(used in) financing activities22.279.679.0
Net increase/(decrease) in cash and cash equivalents0.7(0.3)
Cash and cash equivalents at beginning of the period27.627.9
Cash and cash equivalents at end of the period28.327.6
Cash and cash equivalents comprise:
Bank balances and on-call deposits23.222.0
Short-term deposits 5.15.6
22.228.327.6
CASH FLOWS
for the year ended 30 June
― 40
THE INTERPLAY OF TODAY AND TOMORROW

CHANGES IN EQUITY
for the year ended 30 June
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 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
Net prof it/(loss) for the period––––95.41.997.3
Other comprehensive income––(20.6)0.6––(20.0)
Total comprehensive income––(20.6)0.695.41.977.3
Dividends 3––––(165.0)(2.0)(167.0)
Employee share purchase
scheme transactions–0.1–(0.1)–––
Total transactions with
owners–0.1–(0.1)(165.0)(2.0)(167.0)
Balance at 30 June 2020880.0(0.3)(81.7)(1.0)1,445.816.92,259.7
41 ―
FINANCIAL STATEMENTS

Notes to the Financial Statements
― 42
THE INTERPLAY OF TODAY AND TOMORROW
Note 1Company information43
Note 2Summary of significant accounting policies43
Note 3Significant transactions and events45
Note 4Segment information46
Note 5Sale of Kapuni gas interests49
Note 6Revenue51
Note 7Operating expenses54
Note 8Interest costs (net)54
Note 9Trade and other receivables55
Note 10Intangible assets56
Note 11Property, plant and equipment (PPE)59
Note 12Leases61
Note 13Investments62
Note 14Income tax65
Note 15Deferred tax65
Note 16Trade and other payables66
Note 17Provisions67
Note 18Fair values68
Note 19Borrowings70
Note 20Derivatives and hedge accounting72
Note 21Financial risk management 76
Note 22Cash flows80
Note 23Equity81
Note 24Related party transactions82
Note 25Contingent liabilities 83
Note 26Events after balance date83

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 2020. The group comprises Vector Limited (“the parent”) and its
subsidiaries (together referred to as “the group”).
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,
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. The table below lists the key areas of
judgements and estimates in preparing these f inancial statements:
KEY AREAS JUDGEMENTS / ESTIMATESNOTE
Valuation of contingent consideration receivable Estimates5,18
Intangible assets: valuation of goodwillEstimates10
Property, plant and equipment: classif ication of costsJudgements11
Leases: assessment of lease term for perpetual leases
and leases with renewal optionsJudgements12
Valuation of derivative f inancial instrumentsEstimates18,20
New standards effectiveA number of new standards and interpretations are effective f rom 1 July 2019, but they do not have
a material effect on the group's f inancial statements.
A number of new standards and interpretations are effective for annual periods beginning on or
after 1 July 2020 and earlier application is permitted, however the group has not early adopted the
new or amended standards in preparing these consolidated f inancial statements. None of the
amended standards and interpretations are expected to have a signif icant impact on the group's
consolidated f inancial statements.
43 ―
NOTES TO THE FINANCIAL STATEMENTS

2. Summary of significant
accounting policies continued
COVID–19 global pandemicThe New Zealand Government (“the Government”) announced a State of National Emergency on
25 March 2020 in response to the World Health Organisation (“WHO”) declaring COVID–19 as a
global pandemic on 11 March 2020, signalling the beginning of a countrywide lockdown period
(Alert Level 4) f rom midnight 25 March, which lasted until 28 April 2020. All non–essential services
were suspended during this period, while a limited number of essential services were allowed to
continue trading under guidelines f rom the Government.
While the pandemic has impacted parts of the group’s businesses operationally, the f inancial
impact in the current f inancial year has been limited.
Vector’s electricity and gas distribution, supply and distribution of natural gas and LPG, metering
services and telecommunication services were considered essential businesses and continued to
trade through Alert Level 4. The energy solutions business and meters deployment work in New
Zealand were suspended in line with the Government’s guidelines. As New Zealand moved out
f rom Alert Level 4 and the subsequent Alert Level 3 periods in mid May, all of Vector’s New Zealand
businesses have resumed by 30 June 2020.
Vector’s Australia metering business, while also curtailed to some degree by differing pandemic
response rules imposed by state governments in Australia, was able to operate under essential
services capacity during the last quarter of the current f inancial year. The impact to the business
was not material.
In respect of the balance sheet, the table below provides a summary of assessment by the Board
on key areas impacted by COVID–19, based on information available at the time the f inancial
statements are approved.
NOTE
Contingent consideration5,18Contingent consideration f rom the sale of Vector’s Kapuni
interests is recorded at fair value. Commodity prices used to
calculate the initial fair value recorded at 31 March 2020
have reflected the impact of COVID–19, which was declared a
global pandemic by the WHO on 11 March 2020.
Trade and other receivables9The group has not seen a signif icant increase in doubtful
debts throughout and after Alert Level 4 in New Zealand and
similar restrictive period in Australia.
Specif ic circumstances pertaining to individual customers are
assessed and considered in the provision for doubtful debts,
but the pandemic has not had a material impact on the
group’s assessment of expected credit losses at balance date.
Intangible assets10In respect of impairment testing COVID–19 restrictions
imposed by the Government have had an impact on the
business performance of the E–Co Products CGU and have
contributed, in part, to impairment recognised in the CGU in
the current year.
Investment in private equity13,18Investment in private equity is recorded at fair value. The
carrying amount reflects future cash flow forecasts of the
investee at balance date, which have been impacted by
COVID–19.
Deferred tax15The group recognised a reduction in deferred tax liability of
$3.5 million as a result of the COVID-19 Response (Taxation
and Social Assistance Urgent Measures) Act 2020 having
reinstated Vector’s ability to deduct non-residential building
depreciation for tax purposes.
― 44
THE INTERPLAY OF TODAY AND TOMORROW

3. Significant transactions
and events
Signif icant transactions and events that have impacted the f inancial year ended 30 June 2020:
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 was effected through a $15.2 million (including accumulated interest of
$3.8 million) price adjustment for the regulatory years ending 31 March 2019 ($5.3 million) and
31 March 2020 ($9.9 million), impacting the group’s reported revenues and interest costs for the
f inancial years ended 30 June 2018 (3 months), 30 June 2019 (12 months) and 2020 (9 months).
The impact in the current year ended 30 June 2020 is a $5.6 million (2019: $4.8 million) decrease in
revenue and a $1.8 million (2019: $1.7 million) increase in interest costs.
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.
The Kapuni gas interests were a part of Vector’s Gas Trading segment. Assets and liabilities
associated with the Kapuni gas interests were $103.8 million and $21.5 million respectively at
completion date.
The sale transaction was completed on 31 March 2020 for a contingent consideration of
$84.3 million, resulting in a gain on sale of $0.5 million after deducting total costs to sell of
$1.5 million. Refer to note 5 for details on the sale.
Debt programmeOn 16 September 2019, the group repaid $296.6 million (USD $195.0 million) of USD senior notes.
On 12 March 2020, a total of $797.0 million (USD $500.0 million) of USD senior notes were issued.
$573.9 million (USD $360.0 million) matures in March 2032 and $223.1 million (USD $140.0 million)
matures in March 2035.
During the year ended 30 June 2020, the group repaid a net $245.0 million (2019: $285.0 million
draw down) f rom the bank facilities. Refer to note 19.
DividendsVector Limited’s f inal 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.
Vector Limited’s interim dividend for the year ended 30 June 2020 of 8.25 cents per share was paid
on 8 April 2020, with a supplementary dividend of 0.44 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 2019 of $0.8
million and a f inal dividend in June 2020 of $1.2 million to the company’s non–controlling interests.
45 ―
NOTES TO THE FINANCIAL STATEMENTS

4. Segment information
SegmentsVector report on three reportable segments in accordance with NZ IFRS 8 Operating Segments.
These segments are reported internally to the group chief executive. This reporting is used to
assess performance and make decisions about the allocation of resources.
A review of the reportable segments in the current year resulted in the following changes f rom
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 f rom the Technology segment to form a new
and single reportable segment, Metering;
—The telecommunications and new energy solutions businesses have been removed f rom
segment reporting. These businesses do not satisfy the criteria to report as reportable
segments.
The key change was the presentation of the Metering services business as an individual reportable
segment as a result of growth in metering services revenue in recent years.
The current reportable segments, including their key business activities at 30 June 2020 are
therefore:
Regulated Networks Auckland electricity and gas distribution services.
Gas Trading Natural gas and LPG sales, storage, and transportation.
Metering Metering services.
The processing and cogeneration businesses in Gas Trading ceased at completion of the sale of
Vector’s Kapuni gas interests. Refer to note 5.
Prior periods segment information has been restated to reflect the changes in the segments.
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 arm’s length basis.
Segment prof itThe measures of segment prof it reported to the group chief executive are earnings before interest
and tax and earnings before interest, tax, depreciation, amortisation and impairments (EBITDA).
Activities not reported
in segments
Other activities engaged by the group comprise shared services and other business activities.
Revenues generated by these activities are incidental to Vector’s operations and/or do not meet
the def inition of an operating segment under NZ IFRS 8. The results for these 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 not allocated to the segments.
Geographical informationThe group derives a majority of the revenue f rom external customers in New Zealand.
Major customersVector engage 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 2020,
the customers contributed $216.5 million (2019: $220.4 million), $159.1 million (2019: $172.3 million)
and $158.5 million (2019: $164.6 million) respectively, which is reported across all segments.
― 46
THE INTERPLAY OF TODAY AND TOMORROW

4. Segment information continued
2020
REGULATED
NETWORKS
$M
GAS
TRADING
$M
METERING
$M
INTER–
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 656.9256.4203.9–1,117.2
Third party contributions85.7–––85.7
Other15.6–––15.6
Intersegment revenue2.7–1.3(4.0)–
Segment revenue760.9256.4205.2(4.0)1,218.5
External expenses:
Electricity transmission expenses(200.8)–––(200.8)
Gas purchases and production expenses–(153.2)––(153.2)
Metering services cost of sales––(25.2)–(25.2)
Network and asset maintenance(68.4)(13.8)(9.1)–(91.3)
Employee benef it expenses(18.9)(13.8)(7.4)–(40.1)
Other expenses(49.5)(37.7)(8.7)–(95.9)
Intersegment expenses–(4.0)–4.0–
Segment operating expenses(337.6)(222.5)(50.4)4.0(606.5)
Segment EBITDA423.333.9154.8–612.0
Gain f rom sale of Kapuni gas interests–0.5––0.5
Depreciation and amortisation(131.2)(14.9)(81.3)–(227.4)
Segment profit/(loss)292.119.573.5–385.1
Segment capital expenditure317.18.2133.3–458.6
Reconciliation to revenue, profit/(loss) before income tax and capital expenditure
reported in the financial statements:
2020
REVENUE
$M
PROFIT/(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information1,218.5385.1458.6
Amounts not allocated to segments:
Revenue 74.874.8–
Third party contributions0.70.7
Impairment (refer to note 10.1)–(32.0)–
Employee benef it expenses–(54.2)–
Other operating expenses–(66.9)–
Elimination of transactions with segments–10.0–
Depreciation and amortisation –(35.4)–
Interest costs (net)–(126.5)–
Fair value change on f inancial instruments–(3.4)–
Associates (share of net prof it/(loss))–0.3–
Capital expenditure––30.1
Reported in the financial statements1,294.0152.5488.7
47 ―
NOTES TO THE FINANCIAL STATEMENTS

4. Segment information continued
2019 (RESTATED)
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, profit/(loss) before income tax and capital expenditure
reported in the financial statements:
2019 (RESTATED)
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 82.782.7–
Third party contributions0.30.3
Impairment (refer to note 10.1)–(46.6)–
Employee benef it expenses– (59.6)–
Other operating expenses– (78.1)–
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
― 48
THE INTERPLAY OF TODAY AND TOMORROW

5. Sale of Kapuni Gas interests
The sale of Vector’s Kapuni gas interests to Todd Petroleum Mining Company Limited was completed on 31 March 2020.
The Kapuni gas interests were classif ied as a disposal group held for sale f rom December 2019 and its assets and liabilities were
presented as a disposal group held for sale at this date. Depreciation and amortisation on the property, plant and equipment ceased
f rom December 2019 due to the held for sale classif ication.
2020
$M
Carrying value of disposal group as at 31 March 2020:
Trade and other receivables 0.4
Intangible assets (including goodwill)65.8
Property, plant and equipment30.6
Trade and other payables(0.4)
Provisions(21.1)
Deferred tax7.0
Net assets sold82.3
Contingent consideration84.3
Costs to sell(1.5)
Gain on sale0.5
GoodwillWhere an operation within a group of cash generating units (CGUs) to which goodwill has been
allocated is disposed of, goodwill attributable to the operation disposed of is included in the
disposed assets.
Prior to the sale the disposal group consisted a part of the gas trading CGU, which had ceased to
exist following completion of the sale (refer to note 10). The goodwill was apportioned by
measuring it on the basis of relative values of the operation disposed of and the portion of the
CGU retained. Management has determined that a relative valuation method based on each
operation’s valuation compared to its carrying value to be the most appropriate method for
goodwill allocation purposes.
In the group interim f inancial statements for the six-months ended 31 December 2019 the disposal
group included goodwill of $36.0 million. Information made available to management subsequent
to 31 December 2019 but pertaining to 31 March 2020 changed the valuations of the disposal
group and continuing businesses, thus also causing changes in the allocation of goodwill.
Key accounting estimateThe fair value of the contingent consideration was estimated by calculating the present value of
the future expected cash flows payable by Todd to Vector. The future period of payment is not
f ixed by the contract but is dependent on the remaining useful life of the Kapuni gas treatment
plant, which is directly correlated to the volume of gas available at the Kapuni gas f ield and the
rate at which the gas is extracted. The values of future cash flows are highly dependent on the
future sale prices of gas products (LPG and oil) in the market. Underpinning this all is the
assumption that there is an active market for processed gas products in the future and
government policy relating to the transition of New Zealand to a low carbon economy.
Management made the following estimates in calculating the fair value of the contingent
consideration at 31 March 2020 completion:
—Future available raw gas volume at the Kapuni gas f ield to be approximately 210 PJ based on
volume forecasts, as at 1 January 2020;
—Future LPG prices in the range of USD $280 per tonne to USD $520 per tonne;
—Future oil prices in the range of USD $25 per barrel to US $60 per barrel;
—Future FX rate of approximately 1.50 NZD/USD in the long–term;
—Discount rate of 8%.
Management have re–estimated the same unobservable inputs when calculating the fair value of
the contingent consideration at balance date. Refer to note 18 for details and sensitivity analysis
around signif icant unobservable inputs used in measuring fair values.
49 ―
NOTES TO THE FINANCIAL STATEMENTS

5. Sale of Kapuni Gas interests continued
ConsiderationAt completion of the sale on 31 March 2020, the group recognised total consideration of
$84.3 million represented entirely by the fair value of a contingent consideration at completion
date. The contingent consideration was classif ied as a f inancial asset measured at fair value
through prof it or loss.
Net gains and losses recognised in the prof it or loss and arising f rom the contingent consideration
subsequent to completion comprises:
—Fair value movement, which represents changes in management estimates and assumptions
used to determine fair value at each reporting date; and
—Interest income, which represents the unwinding of the discounting applied in calculating the
fair value at each reporting.
At reporting date, the consideration was remeasured to $84.7 million. The gain this year reflects
interest income recognised in the three months between completion date and balance date only.
Refer to the table below for a reconciliation between fair value calculated at completion and at
balance date.
NOTE
2020
$M
Carrying value of contingent consideration
At completion of sale at 31 March 202084.3
Unwinding of interest81.7
Consideration due reclassif ied to receivables 9(1.0)
Payments received(0.3)
Balance at 30 June 202084.7
Comprising:
Current5.2
Non–current79.5
― 50
THE INTERPLAY OF TODAY AND TOMORROW

6. Revenue
6.1 Revenue from contracts with customers
2020
$M
2019
$M
Regulated networks – sale of distribution services672.5685.6
Regulated networks – third party contributions85.779.0
Gas trading sales256.4284.1
Metering services203.9186.9
Other75.583.0
Total 1,294.01,318.6
Revenue streamsSatisfaction of performance obligation
Regulated networks – sale of
distribution services
The group receives revenue f rom business
customers and energy retailers who sell energy
to end customers for electricity and gas
distribution services in Auckland.
Revenue f rom electricity and gas distribution
services is measured at the value of
consideration received, or receivable, to the
extent that pricing is measured by the regulator
within a def ined revenue path.
Revenue is recognised over time on a basis that
corresponds with end consumers’ pattern of
electricity and gas consumption. Customers are
billed monthly in arrears for distribution services,
measured in units of electricity and gas
distributed. Revenue f rom distribution services
therefore includes an accrual for services
provided but not billed at the end of the month.
The accrual is determined based on the group’s
estimate of volume distributed in the month
using the most recent data available. A large
portion of the contract assets at balance date
consists of this accrual.
Regulated networks – third
party contributions
The group receives contributions f rom
residential and commercial customers towards
the construction of distribution system assets
in the Auckland electricity or gas distribution
networks.
Third party contributions are recognised as
revenue over time, reflecting the percentage
completion of the underlying construction
activity. The group recognises a contract liability
to account for consideration received f rom the
customer but where the agreed construction
activity is not completed; and conversely a
contract asset is recognised to account for
activities completed not billed.
The transaction price for third party contributions
is netted against estimated rebates payable to
commercial customers. A contract liability is
recognised to account for payments received
f rom customers for construction activities
completed but who are eligible for rebates in the
future based on completion of developments.
In the event that a contract combines a
contribution towards an agreed construction
activity with sale of electricity or gas distribution
services, the group unbundles the contract into
two performance obligations and recognises
revenue in accordance with each obligation’s
accounting policy.
51 ―
NOTES TO THE FINANCIAL STATEMENTS

6. Revenue continued
6.1 Revenue from contracts
with customers continued
Gas trading salesGas trading sales comprises predominantly three revenue streams: sale of natural gas, and
distribution and sale of LPG.
Revenue streamsSatisfaction of performance obligation
Sale of natural gasThe group receives revenue f rom business
customers for providing a supply of natural gas
over a contracted time period.
Revenue is recognised over time that
corresponds with the 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. Customers are
billed monthly. A contract asset is recognised to
account for natural gas supplied but not billed to
the customer at balance date.
Sale of LPGSale of LPG comprises bulk LPG sales to
commercial customers and bottled LPG sales
to both commercial and residential customers.
Revenue is recognised at a point in time when
LPG is delivered to a customer’s site.
Billing to a customer occurs after completion of
deliveries and at the end of each month with
payment terms ranging f rom 60 days to 90 days.
Distribution of LPGThe group provides services in the areas of bulk
LPG storage, distribution and management.
Revenue is recognised over time in line with a
customer’s consumption of monthly tolling and
storage volumes and measured at the
transaction price of the contract. The transaction
price for a monthly tolling and storage contract
includes variable considerations in the form of
volume pricing and take or pay arrangements.
The group estimates the amount of variable
consideration present in each contract using the
expected value method.
― 52
THE INTERPLAY OF TODAY AND TOMORROW

6. Revenue continued
6.1 Revenue from contracts
with customers continued
Revenue streamsSatisfaction of performance obligation
Metering servicesThe group receives revenue f rom business
customers for providing electricity and gas
metering and data services.
Customer is predominantly an energy retailer
who has multiple customers (end users)
consuming electricity and gas. Metering and
metering data services comprise collection and
provision of half–hourly data, utilising the group’s
electricity and gas meter assets that are f itted at
the premises of end users. Metering services are
billed to the customer monthly, based on actual
and validated metering and data services
provided. Customers are billed monthly a
number of days after the end of the month to
allow for data validation to take place. A contract
asset is recognised at the end of each month for
services provided but unbilled.
Other revenue streamsOther revenue includes telecommunications revenue and revenue f rom providing energy solution
services.
Telecommunications revenue f rom commercial customers comprise the sale of f ibre services.
Revenue is recognised at the point in time of supply and customer consumption.
Energy solutions services comprise predominantly the sale of home and commercial ventilation
and solar services. Revenue is recognised as revenue over time, reflecting the percentage
completion of each ventilation and solar system install.
6.2 Revenue in relation to contract liabilities
The following table sets out the expected timing of future recognition of revenue relating to performance obligations not satisf ied
(or partially satisf ied) at balance date:
2020
1 – 2 YEARS
$M
2 – 4 YEARS
$M
TOTAL
$M
Electricity distribution services2.61.94.5
Telecommunication services3.42.25.6
Total6.04.110.1
PoliciesNo information is provided in relation to the remaining performance obligations at 30 June 2020
or 30 June 2019 that have an original duration of one year or less as permitted by NZ IFRS 15.
Revenue recognisedOf the revenue recognised this year, $30.2 million was included in the contract liability balance at
the beginning of the reporting period. (2019: $29.2 million).
53 ―
NOTES TO THE FINANCIAL STATEMENTS