VECTOR ANNOUNCES HALF YEAR GROWTH

creating a new energy future




VECTOR ANNOUNCES HALF YEAR GROWTH
• Group net profit after tax of $115.5 million which was $13.4 million or 13.1%
higher than the prior year.
• Adjusted EBITDA of $263.6 million. This was down $10.2 million or 3.7% on last
year’s result.
1

• Interim dividend 8.25 cents per share
• Total capex in the first 6 months has been $266.4 million, an increase of $5.7
million or 2.2% on the prior period.
• Continued investment in infrastructure to support Auckland’s growth
• Stock levels increased to counteract risks associated with global production
shortages linked to Covid-19
• Progress with AWS strategic alliance and X strategic collaboration
• Two-year EV smart charging trial complete, demonstrating high levels of
customer satisfaction and successful reduction in peak electricity demand

Vector Group (NZX: VCT) today announces a steady result for the first half of the 2022
financial year.
Vector Chair Jonathan Mason said, “Despite the ongoing uncertainties and challenges that
have arisen because of Covid-19, the Group has delivered a steady start to the 2022
financial year. Group net profit after tax was $115.5 million, which was $13.4 million or 13.1%
higher than the prior year. The result was largely due to higher capital contributions, gain on
sale of the 50% share of Treescape and lower interest cost, being partially offset by lower
network and gas earnings and higher depreciation and amortisation.


1
EBITDA and Adjusted EBITDA are non-GAAP measures which the directors and management believe provide useful
information as they are used internally to evaluate performance of business units, to establish operational goals and to allocate
resources. See page 22 of the interim financial statements for further details or click on this link
to see Vector’s policy
market release
25 February 2022

creating a new energy future


“Total capital expenditure in the period has been $266.4 million, an increase of $5.7 million or
2.2% on the prior period. The increase reflected continued investment in infrastructure to
support Auckland’s growth, rollout of 4G modem upgrades across the New Zealand
advanced meter base, deployment of additional advanced meters in Australia and increasing
stock levels to counteract risks associated with global production shortages linked to Covid-
19.

“We are continuing our strategy of investing in infrastructure, and complementary innovative
technologies, to deliver for our customers across the Group and unlock opportunities to help
decarbonise our energy systems in ways that are equitable for consumers. I’m pleased with
the progress we’ve made in this period.

“The Board has determined that shareholders will receive an interim dividend of 8.25 cents
per share imputed at 10.5%
2
.”

Group Chief Executive Simon Mackenzie said, “We’ve continued delivering against our
objectives during the first half of our financial year, while also responding to evolving
challenges from Covid-19. Throughout the changing Alert Levels and now the traffic light
framework, we have maintained our focus on delivering essential services for our customers,
and making progress against our Symphony strategy.
“We’ve completed our largest ever study of customer behaviour, with a two-year research
project on smart electric vehicle charging that will help us plan for the electrification of
transport. With high levels of customer satisfaction throughout the trial, the results are
extremely pleasing, as they illustrate the benefit to customers and networks of smart
technology that makes the most of existing infrastructure to help deliver affordable
decarbonisation.
“Another highlight from the past six months has been our announcement of our strategic
collaboration with X on network virtualisation and simulation technology, including the
virtualisation of the electricity network in Auckland. These tools will help us, and other

2
Further information on imputation credits is available on our website under Industry Updates.

creating a new energy future


transmission and distribution operators, simulate the likely impact of increasing solar and
electric vehicles, and proactively invest and manage their networks to maintain a reliable and
affordable energy supply.
“The strategic collaboration with X is part of our shared vision to reimagine the design,
management, and operation of electricity networks; get ahead of increasing demands for
clean energy; and transform the network in order to support decarbonisation. Together with
continued progress in our strategic alliance with Amazon Web Services to build the New
Energy Platform, these initiatives reflect strongly our strategy of looking for the best partners
to work with from around the world to transform our energy systems.
“Regarding the recently released gas distribution draft DPP by the Commerce Commission
(available to read here),
we’re pleased the Commission has acknowledged the transition to a
low carbon economy, and the need to balance the objectives of Government, customers, and
gas asset owners around the use of natural gas within credible emission reduction pathways.
This is especially critical in this next four-year DPP period for our ability to recover our
investment, in order to lessen the risk of bigger price changes for gas customers further
down the track.

“The Climate Change Commission’s final advice to government recognised the complexities
of a transition away from the use of fossil gas, and we await decisions from the Government,
now due in May, that will hopefully shed some light on the gas transition.

“We will continue to engage with the Commerce Commission, New Zealanders and the
Government, as decisions are worked through on the best possible transition plan.”

Electricity and gas networks
Regulated adjusted EBITDA for the six months to 31 December 2021 was down $10.4 million
(5.3%) to $185.5 million against the prior six month period. The decrease in adjusted
EBITDA was largely driven by the prior year release of loss rental rebates (LRRs), which had
been utilised to mitigate the impact of volume reductions on distribution revenue as a result
of Covid-19, as well as to offset against what would otherwise have been a larger price
increase from 1 April 2021. The prior year impact of retaining the LRRs and lower gas

creating a new energy future


volumes this year were partially offset by higher electricity revenue due to higher recovery of
pass-through costs and connection growth.

Revenue increased 10.0% to $422.7 million, driven by the higher recovery of pass-through
costs and an increase in capital contributions, up 42.1% to $71.9 million, reflecting continued
connection growth and significant infrastructure development taking place across Auckland.
We added 6,603 new electricity connections and 1,731 new gas connections. These were
more modest increases than last year, which saw 7,777 new electricity connections and
2,027 for gas. Total electricity connections stood at 596,396, up 1.7% from 586,480 a year
earlier, and total gas connections were 117,628, up 1.9% from 115,432 a year ago.

Both electricity and gas volumes have been impacted by Covid-19. Volumes transported
across the electricity network fell 0.3% to 4,313 GWh from 4,324 GWh a year earlier, with
lower business volumes being partially offset by higher residential volumes. Auckland gas
distribution volumes were down 7.9% at 7.0 PJ from 7.6 PJ a year earlier.

In the first half of FY22, gross regulated capex increased by 3.8% to $163.1 million
compared to $157.1 million a year earlier. Capex net of capital contributions was 14.4%
lower than the prior year at $91.2 million. Capex continues to be at historically high levels
due to investment to improve the reliability and resilience of our network as well as higher
growth capex reflecting the continued growth in connections and infrastructure projects.

Gas Trading
Adjusted EBITDA for the gas trading business was down 16.4% at $12.2 million from $14.6
million a year earlier. The result was mainly due to the impact of higher cost of LPG product,
which has only been partially recovered through higher customer prices. The higher cost is
the result of higher Saudi Aramco price of LPG, higher ETS prices and a stronger US dollar
all contributing to a higher cost of gas. This has been partially offset by improved
performance from the natural gas business.

The Ongas LPG business was also impacted by Covid-19 during the period, with Bottle
Swap 9kg volumes down 5.1% to 356,098 bottles from 375,271 a year earlier. LPG sales

creating a new energy future


were mixed, with bulk volumes higher and cylinder volumes lower. Overall LPG sales were
up 6.2% at 25,240 tonnes. Liquigas LPG tolling volumes were down 1.4% to 54,489 tonnes
from 55,239 tonnes a year earlier.

Natural gas sales volumes were down 2.1 PJ to 2.9 PJ from 5.0 PJ in the prior period mainly
due to the loss of a major customer from June 2021.

Metering
Adjusted EBITDA for the Metering segment was $86.0 million, up $2.9 million or 3.5% from a
year earlier with gains coming from the continued rollout of advanced meters, particularly in
Australia.

Metering revenue increased 6.1% to $116.5 million from $109.8 million a year earlier driven
by the increased deployment of advanced meters.

In the six months to 31 December 2021 we have installed 10,273 additional advanced
meters in New Zealand and 50,481 additional advanced meters in Australia. Our advanced
meter base grew 7.9% to 1.93 million from 1.78 million the year before. We have now
deployed over 447,000 advanced meters in Australia.

In the first half, metering capex increased by 3.3% to $84.5 million with the high level of
spend reflecting the continued deployment of new advanced meters in Australia, 4G modem
replacement program, roll out of advanced gas meters and an increase in stock levels to help
mitigate supply concerns.

Progress continues on building the New Energy Platform, a next-generation metering
information platform, through our strategic alliance with AWS.

E-Co Products Group, Vector Powersmart and Vector Fibre
HRV has had an interrupted start to the year as a result of Covid-19 but, since the lifting of
Alert Level restrictions and transition to a traffic light framework, HRV has seen an increase
in activity and is now well positioned for the remainder of the year

creating a new energy future



Vector Powersmart continues to be impacted by Covid-19 and has been unable to access
some key projects in the Pacific islands. The focus for this business has been on improving
the pipeline of activities within New Zealand.

Vector Fibre has had a steady start to the year.

FY22 Guidance
Based on this half year result, we expect FY22 adjusted EBITDA to be in the range of $505-
515 million provided there is no further significant impact of Covid-19 on economic activity,
such as extended or frequent lockdowns, and supply chain disruptions, and that impacts on
our workforce from isolation requirements are managed.

ENDS
Vector’s interim financial statements are available here:
vector.co.nz/reports


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

Media contact
Matthew Britton, Senior Communications Partner, Vector
Matthew.britton@vector.co.nz
, 021 224 2966



About Vector
Vector is an innovative New Zealand energy company which runs a portfolio of businesses
delivering energy and communication services to more than one million homes and
commercial customers across Australasia and the Pacific. Vector is leading the country in
creating a new energy future through its Symphony strategy which puts customers at the heart
of the energy system. 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

---

FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22
Dividend (cents per share)
InterimFinal
•
−
−
•

•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

647.7
273.8
260.7
102.1
271.3
82.5
684.6
263.6
266.4
115.5
283.6
82.5
RevenueAdjusted EBITDACapital ExpenditureNet ProfitOperating Cash FlowHalf Year Dividend
H1 2022 FINANCIAL PERFORMANCE ($M)
H1 2021
H1 2022

-10.4
-2.4
+2.9
-0.3
H1 2021Regulated NetworksGas TradingMeteringCorporate and Other*H1 2022
H1 2022 ADJUSTED EBITDA MOVEMENT ($M)

102.1
115.5
-7.4
+15.2
-6.8
+3.0
+9.4
H1 2021EarningsCapital ContributionsDepreciation and
amortisation
InterestOtherH1 2022
MOVEMENT IN NET PROFIT AFTER TAX ($M)

$157.1m
60%
$4.1m
2%
$81.8m
31%
$17.7m
7%
$163.1m
61%
$2.8m 1%
$84.5m
32%
$16.0m
6%
GROSS CAPEX BY SEGMENT
Regulated Networks
Gas Trading
Metering
Corporate and Other
H1 2021
H1 2022
H1 2018H1 2019H1 2020H1 2021H1 2022
Net capexCapital contributions
•
•
•

2,6822,7411,9682,2532,4902,7433,0133,163
52.9%
53.4%
43.9%
47.3%
50.0%
53.3%
56.1%
56.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Dec 14Dec 15Dec 16Dec 17Dec 18Dec 19Dec 20Dec 21
NET ECONOMIC DEBT & GEARING ($M)
Net economic debt ($m)Gearing
FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
Bank FacilitiesUSPP
Wholesale BondsPerpetual Capital Bonds
Retail Bonds
•
•
•
•

195.9
185.5
-15.5
8.9
-0.8
-2.3
-0.7
H1 2021Price increase
offset (prior
year)
Other electricity
revenue impacts
(net of
passthrough)
Gas RevenueMaintenanceOtherH1 2022
ADJUSTED EBITDA MOVEMENT ($M)
•
−
−
−
•
−
•
−
•
•
−
•
3,003
3,780
3,916
4,583
6,090
5,160
6,625
7,777
6,603
1,499
1,550
1,538
1,907
1,656
1,669
1,863
2,027
1,731
H1 2014H1 2015H1 2016H1 2017H1 2018H1 2019H1 2020H1 2021H1 2022
GROSS NEW CONNECTIONS
ElectricityGas

DPP1DPP2DPP3
Gas WACC
•
•
•
•
•
−
−
−
−
−
−

14.6
12.2
-6.6
3.4
0.8
H1 2021OngasNatural gas
volumes/margins
OtherH1 2022
ADJUSTED EBITDA MOVEMENT ($M)
356
375
364
358
352
320
302
266
229
203
158
305
338
300
301
284
248
240
200
185
155
FY22FY21FY20FY19FY18FY17FY16FY15FY14FY13FY12
BOTTLE SWAP VOLUMES (‘000 9kg cylinders)
H1H2
•
̅
•
•
•
−
−
−

83.1
86.0
3.4
0.6
-1.1
H1 2021Advanced Meters in
Australia
Advanced Meters in
NZ
OtherH1 2022
ADJUSTED EBITDA MOVEMENT ($M)
•
•
−
−
−
•
̅
̅
̅
•
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
AustraliaNZ

•
−
−
•
•
−

H1 2018H1 2019H1 2020H1 2021H1 2022
Regulated Networks
192.7198.7189.2195.9185.5
Gas Trading
18.420.720.814.612.2
Metering
60.168.176.183.186.0
Corporate and Other*
-21.2-22.8-21.6-19.8-20.1
Total Group
250.0264.7264.5273.8263.6

REGULATED NETWORKSMETERINGGAS TRADINGCORPORATE AND OTHER
1

Supplementary Interim Information
Regulated Networks Adjusted EBITDA
$mH1 FY2013H1 FY2014H1 FY2015H1 FY2016H1 FY2017H1 FY2018H1 FY2019H1 FY2020H1 FY2021H1 FY2022
Electricity190.8174.5169.9172.6172.2170.1177.9168.3174.9166.3
Gas Distribution Auckland24.523.121.423.823.522.620.820.921.019.2
Total215.4197.7191.3196.4195.7192.7198.7189.2195.9185.5
H1 FY2013H1 FY2014H1 FY2015H1 FY2016H1 FY2017H1 FY2018H1 FY2019H1 FY2020H1 FY2021H1 FY2022
Gas Distribution Auckland Volumes (PJ)
PJsFY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Q13.8 3.9 4.0 4.3 4.3 4.4 4.4 4.4 4.3 3.9
Q23.1 3.0 3.3 3.3 3.3 3.3 3.4 3.4 3.2 3.1
Q32.4 2.7 2.7 2.7 2.9 2.9 2.9 2.9 2.9
Q43.5 3.4 3.4 3.6 3.8 3.9 3.8 3.5 3.6
Total12.9 13.0 13.4 13.9 14.3 14.5 14.4 14.3 14.1 7.0
Gross New ICPs
# of ICPs (gross)FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Q1- - 807 831 982 875 800 832 959 644
Q2- - 743 707 925 781 869 1,031 1,068 1,087
Q3- - 605 948 842 481 705 784 905
Q4- - 666 837 766 1,028 948 554 912
Total2,464 3,107 2,821 3,323 3,515 3,165 3,322 3,201 3,844 1,731
Data not available prior to FY15
190.8
174.5
169.9
172.6
172.2
170.1
177.9
168.3
174.9
166.3
24.5
23.1
21.4
23.8
23.5
22.6
20.8
20.921.0
19.2
H1 FY2013H1 FY2014H1 FY2015H1 FY2016H1 FY2017H1 FY2018H1 FY2019H1 FY2020H1 FY2021H1 FY2022
Adjusted EBITDA
ElectricityGas Distribution Auckland
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Gas Distribution Volumes (PJ)
Q1Q2Q3Q4

Net New ICPs
# of ICPs (net)FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Q1620 524 839 616 878 872 560 674 624 368
Q2415 566 713 727 718 728 700 778 848 788
Q3508 558 584 809 626 468 378 484 582
Q4377 892 645 605 126 491 775 382 458
Total1,920 2,540 2,781 2,757 2,348 2,559 2,413 2,318 2,512 1,156
Total ICPs
# Total ICPsFY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Q194,944 96,768 99,623 102,181 105,200 107,542 109,789 112,316 114,584 116,840
Q295,359 97,334 100,336 102,908 105,918 108,270 110,489 113,094 115,432 117,628
Q395,867 97,892 100,920 103,717 106,544 108,738 110,867 113,578 116,014
Q496,244 98,784 101,565 104,322 106,670 109,229 111,642 113,960 116,472
Gas Distribution Lines Revenue
$mFY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
H128.327.526.128.528.927.525.525.725.925.1
H224.419.523.423.625.021.721.622.022.8
Lines Revenue52.747.049.552.253.949.247.147.748.725.1
-
100
200
300
400
500
600
700
800
900
1,000
FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Net Gas ICPs
Q1Q2Q3Q4
95,359
97,334
100,336
102,908
105,918
108,270
110,489
113,094
115,432
117,628
FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Total Gas ICPs as at half year
28.3
27.5
26.1
28.5
28.9
27.5
25.5
25.7
25.9
25.1
FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Gas Distribution Lines Revenue $m as at half year

Gas Distribution Adjusted EBITDA
$mFY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
H124.523.121.423.823.522.620.820.921.019.2
H220.215.218.519.520.017.416.316.917.4
Total44.838.339.943.443.540.037.037.838.419.2
Capital Contributions
$mH1 FY2013H1 FY2014H1 FY2015H1 FY2016H1 FY2017H1 FY2018H1 FY2019H1 FY2020H1 FY2021H1 FY2022
Electricity11.115.917.519.229.631.038.341.745.465.6
Gas0.91.51.32.41.22.82.93.35.26.3
TOTAL12.017.518.821.630.833.841.245.050.671.9
Capex
$mH1 FY2013H1 FY2014H1 FY2015H1 FY2016H1 FY2017H1 FY2018H1 FY2019H1 FY2020H1 FY2021H1 FY2022
Electricity61.467.769.868.591.0106.2114.9144.9145.6150.0
Gas5.811.612.911.011.213.410.111.111.613.1
TOTAL67.279.382.879.5102.2119.6125.0156.0157.2163.1
24.5
23.1
21.4
23.8
23.5
22.6
20.8
20.9
21.0
19.2
20.2
15.2
18.5
19.5
20.0
17.4
16.3
16.9
17.4
FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022
Gas Distribution Adjusted EBITDA $m
H1H2
11.1
15.9
17.5
19.2
29.6
31.0
38.3
41.7
45.4
65.6
0.9
1.5
1.3
2.4
1.2
2.8
2.9
3.3
5.2
6.3
H1 FY2013H1 FY2014H1 FY2015H1 FY2016H1 FY2017H1 FY2018H1 FY2019H1 FY2020H1 FY2021H1 FY2022
Capital Contributions $m
ElectricityGas
61.4
67.7
69.8
68.5
91.0
106.2
114.9
144.9
145.6
150.0
5.8
11.6
12.9
11.0
11.2
13.4
10.1
11.1
11.6
13.1
H1 FY2013H1 FY2014H1 FY2015H1 FY2016H1 FY2017H1 FY2018H1 FY2019H1 FY2020H1 FY2021H1 FY2022
Regulated Capex $m
ElectricityGas

---

FINANCIAL PERFORMANCE
$MILLION
31-DEC-21
6 MONTHS
31-DEC-20
6 MONTHSCHANGE
30-JUN-21
12 MONTHS
Total revenue684.6647.75.7%1,279.3
Adjusted EBITDA263.6273.8(3.7%)513.5
Adjusted EBIT121.0140.7(14.0%)243.4
Net prof it115.5102.113.1%194.6
Operating cash flow283.6271.34.5%499.1
FINANCIAL POSTION
$MILLION31-DEC-2131-DEC-20CHANGE30-JUN-21
Total equity2,411.62,285.95.5%2,335.4
Total assets6,617.26,362.74.0%6,519.5
Economic net debt (borrowings and lease
liabilities net of cash and deposits)3,162.83,013.05.0%3,110.6
KEY FINANCIAL MEASURES
31-DEC-21
6 MONTHS
31-DEC-20
6 MONTHSCHANGE
30-JUN-21
12 MONTHS
Adjusted EBITDA/ total revenue38.5%42.3%(9.0%)40.1%
Adjusted EBIT/ total revenue17.7%21.7%(18.4%)19.0%
Equity/total assets36.4%35.9%1.4%35.8%
Return on assets (adjusted EBITDA/assets)4.0%4.3%(7.0%)7.9%
Gearing
1
56.9%56.1%1.4%56.8%
Net interest cover – (adjusted EBIT/net interest
costs) (times)2.22.4(8.3%)2.2
Earnings (NPAT) per share (cents)11.510.113.9%19.3
Dividends declared, cents per share8.258.250.0%16.75
1. Gearing is defined as economic net debt to economic net debt plus adjusted equity. Adjusted equity means total equity adjusted for hedge reserves.
Total revenue
$684.6 MILLION
Operating cash flow
$283.6 MILLION
Financial overview
VECTOR INTERIM FINANCIALS 2022
1









.
.
.
.
.
NET PROFIT
for the six months ended 31 December
$ MILLION
TOTAL REVENUE
for the six months ended 31 December
$ MILLION
.
.
.
.
.












REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER

INTER-SEGMENT
250.0
264.7
264.5
273.8
263.6
20172018201920202021
0
-100
50
100
150
200
250
300
ADJUSTED EBITDA
for the six months ended 31 December
$ MILLION

REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER

TOTAL GROUP
Financial performance trends
VECTOR INTERIM FINANCIALS 2022
2

CAPITAL EXPENDITURE
for the six months ended 31 December
$ MILLION
OPERATING CASH FLOWS
for the six months ended 31 December
$ MILLION








.
.
.
.
.
16.0
84.5
2.8
163.1
2
0
2
1
2
0
2
0
17.7
157.1
4.1
81.8

REGULATED NETWORKS

GAS TRADING

METERING

CORPORATE AND OTHER
2,397.1
3,162.8
2
0
2
1
2
0
2
0
3,013.02,361.4
SOURCE OF FUNDING – GEARING
as at 31 December
$ MILLION

ECONOMIC NET DEBT

ADJUSTED EQUITY
Financial performance trends (continued)
VECTOR INTERIM FINANCIALS 2022
3

---

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
Interim
Financial
Statements

CONTENTS
Independent Review Report3
Group Condensed Interim Financial Statements
Profit or Loss5
Other Comprehensive Income6
Balance Sheet7
Cash Flows9
Changes in Equity 10
Notes to the Group Condensed Interim Financial Statements11
GROUP CONDENSED INTERIM FINANCIAL STATEMENTS
These group condensed interim financial statements for the six months ended 31 December 2021 are dated
24 February 2022, and signed for and on behalf of Vector Limited by:
Director
Director
And management of Vector Limited by:
Group Chief Executive
Chief Financial Officer
Group Condensed Interim Financial Statements
for the six months ended 31 December 2021 (unaudited)
VECTOR INTERIM FINANCIALS 2022
2

Independent Review Report
for the six months ended 31 December 2021



© 2022 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.

Independent Review Report
To the shareholders of Vector Limited
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 5 to 21
do not:
i. present fairly in all material respects the
Group’s financial position as at 31
December 2021 and its financial
performance and cash flows for the 6
month period ended on that date; and
ii. comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
— the consolidated balance sheet as at 31
December 2021;
— the consolidated statements of profit or loss,
other comprehensive income, changes in
equity and cash flows for the 6 month period
then ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of interim consolidated financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of Vector Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to
the audit of the annual financial statements.
Our firm has also provided other services to the group in relation to annual audit, regulatory assurance services,
other assurance services, compliance services in relation to R&D tax credits and review of enterprise
management and internal audit processes. Subject to certain restrictions, partners and employees of our firm
may also deal with the group on normal terms within the ordinary course of trading activities of the business of
the group. These matters have not impaired our independence as reviewer of the group. The firm has no other
relationship with, or interest in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we
might state to the shareholders those matters we are required to state to them in the Independent Review
Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the shareholders as a body for our review work, this report, or any of the
opinions we have formed.
VECTOR INTERIM FINANCIALS 2022
3

Responsibilities of the Directors for the interim consolidated financial
statements
The Directors, on behalf of the company and group, are responsible for:
— the preparation and fair presentation of the interim consolidated financial statements in accordance with NZ
IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of the interim consolidated financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim company and
group financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit
opinion on these interim company and group financial statements.
This description forms part of our Independent Review Report.


Auckland
24 February 2022






VECTOR INTERIM FINANCIALS 2022
4

NOTE
31 DEC 2021
6 MONTHS
(UNAUDITED)
$M
31 DEC 2020
6 MONTHS
(UNAUDITED)
$M
30 JUN 2021
12 MONTHS
(AUDITED)
$M
Revenue4 684.6647.71,279.3
Operating expenses4(348.6)(322.5)(643.3)
Depreciation and amortisation(142.6)(133.1)(270.1)
Interest costs (net)(54.5)(58.7)(108.6)
Fair value change on f inancial instruments7.6(2.2)(3.5)
Gain on sale of investment in associate37.1––
Associates (share of net prof it/(loss)) –1.61.8
Profit/(loss) before income tax153.6132.8255.6
Income tax benef it/(expense)(38.1)(30.7)(61.0)
Net profit/(loss) for the period115.5102.1194.6
Net profit/(loss) for the period attributable to
Non-controlling interests 1.01.01.4
Owners of the parent 114.5101.1193.2
Basic and diluted earnings per share (cents)711.510.119.3
Prof it or Loss







Responsibilities of the Directors for the interim consolidated financial
statements
The Directors, on behalf of the company and group, are responsible for:
— the preparation and fair presentation of the interim consolidated financial statements in accordance with NZ
IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of the interim consolidated financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim company and
group financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit
opinion on these interim company and group financial statements.
This description forms part of our Independent Review Report.


Auckland
24 February 2022






VECTOR INTERIM FINANCIALS 2022
5

31 DEC 2021
6 MONTHS
(UNAUDITED)
$M
31 DEC 2020
6 MONTHS
(UNAUDITED)
$M
30 JUN 2021
12 MONTHS
(AUDITED)
$M
Net profit/(loss) for the period115.5102.1194.6
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 reserves49.36.246.9
Translation of foreign operations (2.9)(0.1)0.8
Share of other comprehensive income of associate––0.1
Items that will not be re-classif ied subsequently to prof it or
loss:
Fair value change on f inancial asset–0.5(0.5)
Other comprehensive income/(loss) for the period net of tax46.46.647.3
Total comprehensive income/(loss) for the period net of tax161.9108.7241.9
Total comprehensive income for the period attributable to
Non-controlling interests 1.01.01.4
Owners of the parent 160.9107.7240.5
Other Comprehensive Income
VECTOR INTERIM FINANCIALS 2022
6

Balance Sheet
 NOTE
31 DEC 2021
(UNAUDITED)
$M
31 DEC 2020
(UNAUDITED)
$M
30 JUN 2021
(AUDITED)
$M
CURRENT ASSETS
Cash and cash equivalents24.731.817.4
Trade and other receivables 74.883.883.2
Contract assets89.985.6105.5
Derivatives621.533.738.0
Inventories15.18.712.4
Contingent consideration10.66.58.2
Intangible assets11.87.82.0
Income tax20.529.528.7
Investment classif ied as held for sale3––12.2
Total current assets268.9287.4307.6
NON-CURRENT ASSETS
Receivables1.51.71.7
Derivatives675.154.365.3
Contingent consideration80.875.073.5
Investment in associates–10.6–
Investment in private equity12.313.312.3
Intangible assets51,296.41,286.61,292.3
Property, plant and equipment (PPE)4,745.54,497.04,625.8
Right of use assets (ROU)28.937.336.1
Income tax105.899.2102.8
Deferred tax2.00.32.1
Total non-current assets6,348.36,075.36,211.9
Total assets6,617.26,362.76,519.5
CURRENT LIABILITIES
Trade and other payables208.5199.5221.7
Provisions16.217.421.3
Borrowings3,6366.4458.9232.3
Derivatives63.63.00.9
Contract liabilities77.660.265.0
Lease liabilities9.28.78.4
Income tax0.30.11.8
Total current liabilities681.8747.8551.4
VECTOR INTERIM FINANCIALS 2022
7

Balance Sheet (CONTINUED)
 NOTE
31 DEC 2021
(UNAUDITED)
$M
31 DEC 2020
(UNAUDITED)
$M
30 JUN 2021
(AUDITED)
$M
NON-CURRENT LIABILITIES
Provisions7.98.48.7
Borrowings3,62,750.02,537.72,838.3
Derivatives6107.8192.2164.7
Contract liabilities24.529.730.2
Lease liabilities20.730.529.0
Deferred tax 612.9530.5561.8
Total non-current liabilities 3,523.83,329.03,632.7
Total liabilities 4,205.64,076.84,184.1
EQUITY
Equity attributable to owners of the parent2,395.62,268.02,319.7
Non-controlling interests in subsidiaries16.017.915.7
Total equity 2,411.62,285.92,335.4
Total equity and liabilities 6,617.26,362.76,519.5
Net tangible assets per share (cents)7108.797.4102.5
Gearing ratio (%)756.956.156.8
VECTOR INTERIM FINANCIALS 2022
8

NOTE
31 DEC 2021
6 MONTHS
(UNAUDITED)
$M
31 DEC 2020
6 MONTHS
(UNAUDITED)
$M
30 JUN 2021
12 MONTHS
(AUDITED)
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts f rom customers703.2647.51,268.9
Interest received 0.30.32.9
Payments to suppliers and employees(358.6)(307.1)(626.3)
Interest paid(59.9)(67.5)(125.3)
Income tax paid(1.4)(1.9)(21.1)
Net cash flows from/(used in) operating activities 8283.6271.3499.1
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds f rom sale of PPE0.40.10.2
Purchase and construction of PPE(246.5)(247.6)(474.9)
Purchase and construction of software intangibles(23.8)(30.3)(41.3)
Proceeds f rom contingent consideration1.62.54.4
Proceeds f rom sale of investment in associate316.4––
Other investing cash flows0.1–0.2
Net cash flows from/(used in) investing activities (251.8)(275.3)(511.4)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds f rom borrowings3,6225.0445.0530.0
Repayment of borrowings3,6(158.0)(350.0)(350.0)
Dividends paid 3(85.7)(82.5)(165.8)
Lease liabilities payments(5.8)(5.0)(11.0)
Redemption of preference shares f rom non-
controlling interest––(1.8)
Net cash flows from/(used in) financing activities (24.5)7.51.4
Net increase/(decrease) in cash and cash equivalents 7.33.5(10.9)
Cash and cash equivalents at beginning of the period17.428.328.3
Cash and cash equivalents at end of the period 24.731.817.4
Cash and cash equivalents comprise:
Bank balances and on-call deposits21.727.712.8
Short term deposits 3.04.14.6
24.731.817.4
Cash Flows
VECTOR INTERIM FINANCIALS 2022
9

Changes in Equity
(unaudited)
NOTEISSUED SHARE CAPITAL$MTREASURY SHARES$MHEDGE RESERVES$MOTHER RESERVES$MRETAINED EARNINGS$MNON– CONTROLLING INTERESTS$MTOTAL EQUITY$M
Balance at 1 July 2020  880.0(0.3)(81.7)(1.0)1,445.816.92,259.7
Net prof it/(loss) for the period––––101.11.0102.1
Other comprehensive income––6.20.4––6.6
Total comprehensive income––6.20.4101.11.0108.7
Dividends––––(82.5)–(82.5)
Employee share purchase
scheme transactions–0.1–(0.1)–––
Total transactions with owners–0.1–(0.1)(82.5)–(82.5)
Balance at 31 December 2020880.0(0.2)(75.5)(0.7)1,464.417.92,285.9
Net prof it/(loss) for the period––––92.10.492.5
Other comprehensive income––40.7–––40.7
Total comprehensive income––40.7–92.10.4133.2
Dividends––––(82.5)(0.8)(83.3)
Reclassif ication to
investment held for sale –––1.4––1.4
Redemption of preference shares–––––(1.8)(1.8)
Total transactions with owners –––1.4(82.5)(2.6)(83.7)
Balance at 30 June 2021880.0(0.2)(34.8)0.71,474.015.72,335.4
Net prof it/(loss) for the period––––114.51.0115.5
Other comprehensive income––49.3(2.9)––46.4
Total comprehensive income ––49.3(2.9)114.51.0161.9
Dividends3––––(85.0)(0.7)(85.7)
Employee share purchase
scheme transactions–0.1–(0.1)–––
Total transactions with owners–0.1–(0.1)(85.0)(0.7)(85.7)
Balance at 31 December 2021880.0(0.1)14.5(2.3)1,503.516.02,411.6

VECTOR INTERIM FINANCIALS 2022
10

Notes to the Interim Financial Statements
1. Company information
Reporting entity Vector Limited is a company incorporated and domiciled in New Zealand,
registered under the Companies Act 1993 and listed on the NZX Main
Board (NZX). The company is an FMC entity for the purposes of Part 7 of
the Financial Markets Conduct Act 2013. Vector’s condensed interim
financial statements (the interim financial statements) comply with this
Act.
The interim financial statements presented are for Vector Limited Group
(“Vector” or “the group”) as at, and for the six months ended 31 December
2021. The group comprises Vector Limited (“the parent”) and its
subsidiaries.
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
Basis of preparation The interim financial statements have been prepared in accordance with
New Zealand Generally Accepted Accounting Practice (NZ GAAP) as
applicable to interim financial statements, and as appropriate to profit
oriented entities. They comply with NZ IAS 34 Interim Financial Reporting.
These interim financial statements do not include all of the information
required for full annual financial statements and should be read in
conjunction with the group financial statements and related notes
included in Vector’s 2021 Annual Report. The interim financial statements
for the six months ended 31 December 2021 and 31 December 2020 are
unaudited.
All financial information is presented in New Zealand dollars ($) and has
been rounded to the nearest 100,000, unless otherwise stated.
Seasonality Vector’s electricity and gas businesses are affected by the seasonal
demand for energy, which generally increases during periods of colder
weather. Accordingly, financial results for the first half of the financial year
reported in the interim financial statements are generally more profitable
than those of the second half of the year.
VECTOR INTERIM FINANCIALS 2022
11

Notes to the Interim Financial Statements
3. Significant transactions and events
Significant transactions and events that have occurred during the six months to 31 December 2021:
Loss rental rebates Vector distributed loss rental rebates (“LRRs”) of $11.7 million to customers
on the Vector electricity network in September 2021 at $20 per customer,
representing excess LRRs not required to partially mitigate electricity
distribution price increases applying f rom 1 April 2021. A provision for
distribution to customers of $8.0 million is recognised at 31 December 2021
(31 December 2020: $5.6 million, 30 June 2021: $11.9 million) in anticipation
for distribution to customers at a later date and at discretion of the Board.
This approach is consistent with the Board’s view that LRRs should
ultimately benefit electricity customers.
In the current half year ended 31 December 2021, Vector received $12.7
million of LRRs f rom Transpower, $4.8 million of which is retained and
recognised in the profit or loss (31 December 2020 (6 months): $15.5 million,
30 June 2021 (12 months): $22.8 million). LRRs retained will partially
mitigate electricity distribution price increases applying f rom 1 April 2022.
Sale of investment in associate On 31 August 2021, Vector and other shareholders of Tree Scape Limited,
each owning 50% of the company and its subsidiaries, sold all the shares to
Blair Mill NZ Holdings Limited for a cash consideration of $58.0 million
excluding debt. The consideration was finalised in November 2021 at a total
of $38.6 million net of debt. Vector was entitled to $19.3 million, reflecting
Vector’s 50% shareholding. The investment in Tree Scape Limited – an
associate prior to the sale - was classified as an investment held for sale
f rom 1 June 2021 at $12.2 million. A gain on sale of $7.1 million has been
recognised in the half year ended 31 December 2021. In accordance with
the sale and purchase agreement, $2.9 million of the consideration due to
Vector will be held on escrow for 24 months f rom sale completion until
August 2023.
Debt programme $150.0 million of US Private Placements were repaid on 14 October 2021.
These were refinanced as part of our ongoing debt management activities.
On 26 November 2021, Vector issued $225.0 million of retail bonds at a fixed
rate of 3.69% maturing on 26 November 2027.
During the six months ended 31 December 2021, the group repaid a net of
$8.0 million (six months ended 31 December 2020: $275 million) f rom bank
facilities.
Dividends Vector Limited’s final dividend for the year ended 30 June 2021 of 8.50
cents per share was paid on 16 September 2021, with a supplementary
dividend of 0.45 cents per non-resident share. The total dividend paid was
$85.0 million.
Liquigas Limited, a subsidiary of the group, paid a dividend in December
2021 of $0.7 million to the company’s non-controlling interests.
VECTOR INTERIM FINANCIALS 2022
12

Notes to the Interim Financial Statements
4. Segment information
Segments Vector reports on three reportable segments in accordance with NZ IFRS 8
Operating Segments. The segments and related policies remain
unchanged f rom those reported in Vector’s 2021 Annual Report.
The reportable segments are:
Regulated Networks Auckland electricity and gas distribution services.
Gas Trading Natural gas and LPG sales, storage, and
transportation.
Metering Metering services.
VECTOR INTERIM FINANCIALS 2022
13

Notes to the Interim Financial Statements
4. Segment information (continued)
31 DEC 2021
6 MONTHS (UNAUDITED)
REGULATED
NETWORKS
$M
GAS
TRADING
$M
METERING
$M
INTER-
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 337.1110.7115.8–563.6
Third party contributions71.9–––71.9
Other12.6–––12.6
Intersegment revenue1.1–0.7(1.8)–
Segment revenue422.7110.7116.5(1.8)648.1
External expenses:
Electricity transmission expenses(90.4)–––(90.4)
Gas purchases and production
expenses–(64.4)––(64.4)
Metering services cost of sales––(14.3)–(14.3)
Network and asset maintenance (35.3)(3.0)(5.5)–(43.8)
Employee benef it expenses(8.6)(6.2)(6.3)–(21.1)
Other expenses(31.0)(23.1)(4.4)–(58.5)
Intersegment expenses–(1.8)–1.8–
Segment operating expenses(165.3)(98.5)(30.5)1.8(292.5)
Segment EBITDA257.412.286.0–355.6
Depreciation and amortisation(72.7)(5.7)(46.9)–(125.3)
Segment profit/(loss)184.76.539.1–230.3
Segment capital expenditure163.12.884.5–250.4
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
31 DEC 2021
REVENUE
$M
PROFIT/
(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information648.1230.3250.4
Amounts not allocated to segments:
Revenue 36.036.0–
Third party contributions0.50.5–
Employee benef it expenses–(30.4)–
Other operating expenses–(32.6)–
Elimination of transactions with segments–6.9–
Depreciation and amortisation –(17.3)–
Interest costs (net)–(54.5)–
Fair value change on f inancial instruments–7.6–
Gain on sale of investment in associate–7.1–
Capital expenditure––16.0
Reported in the financial statements684.6153.6266.4
VECTOR INTERIM FINANCIALS 2022
14

Notes to the Interim Financial Statements
4. Segment information (continued)
31 DEC 2020
6 MONTHS (UNAUDITED)
REGULATED
NETWORKS
$M
GAS TRADING
$M
METERING
$M
INTER-
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 321.4113.7109.1–544.2
Third party contributions50.6–––50.6
Other11.1–––11.1
Intersegment revenue1.3–0.7(2.0)–
Segment revenue384.4113.7109.8(2.0)605.9
External expenses:
Electricity transmission expenses(89.7)–––(89.7)
Gas purchases and production
expenses–(68.7)––(68.7)
Metering services cost of sales––(12.5)–(12.5)
Network and asset maintenance (33.0)(3.3)(4.7)–(41.0)
Employee benefit expenses(8.4)(6.1)(5.5)–(20.0)
Other expenses(6.8)(19.0)(4.0)–(29.8)
Intersegment expenses–(2.0)–2.0–
Segment operating expenses(137.9)(99.1)(26.7)2.0(261.7)
Segment EBITDA246.514.683.1–344.2
Depreciation and amortisation(65.8)(6.1)(44.4)–(116.3)
Segment profit/(loss)180.78.538.7–227.9
Segment capital expenditure157.14.181.8–243.0
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
31 DEC 2020
REVENUE
$M
PROFIT/
(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information605.9227.9243.0
Amounts not allocated to segments:
Revenue 41.041.0–
Third party contributions0.80.8–
Employee benef it expenses–(29.1)–
Other operating expenses–(37.0)–
Elimination of transactions with segments–5.3–
Depreciation and amortisation –(16.8)–
Interest costs (net)–(58.7)–
Fair value change on f inancial instruments–(2.2)–
Associates (share of net prof it/(loss))–1.6–
Capital expenditure––17.7
Reported in the financial statements647.7132.8260.7
VECTOR INTERIM FINANCIALS 2022
15

Notes to the Interim Financial Statements
4. Segment information (continued)
30 JUN 2021
12 MONTHS (AUDITED)
REGULATED
NETWORKS
$M
GAS TRADING
$M
METERING
$M
INTER-
SEGMENT
$M
TOTAL
$M
External revenue:
Sales 625.2209.0225.7–1,059.9
Third party contributions121.1–––121.1
Other18.8–––18.8
Intersegment revenue2.4–1.3(3.7)–
Segment revenue767.5209.0227.0(3.7)1,199.8
External expenses:
Electricity transmission expenses(179.7)–––(179.7)
Gas purchases and production
expenses–(128.9)––(128.9)
Metering services cost of sales––(26.4)–(26.4)
Network and asset maintenance (68.7)(6.3)(9.2)–(84.2)
Employee benef it expenses(16.0)(11.4)(10.9)–(38.3)
Other expenses(31.3)(31.3)(8.9)–(71.5)
Intersegment expenses–(3.7)–3.7–
Segment operating expenses(295.7)(181.6)(55.4)3.7(529.0)
Segment EBITDA471.827.4171.6–670.8
Depreciation and amortisation(134.5)(12.0)(89.9)–(236.4)
Segment profit/(loss)337.315.481.7–434.4
Segment capital expenditure314.711.2165.3–491.2
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
30 JUN 2021
REVENUE
$M
PROFIT/
(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information1,199.8434.4491.2
Amounts not allocated to segments:
Revenue 78.178.1–
Third party contributions1.41.4
Employee benefit expenses–(56.5)–
Other operating expenses–(70.8)–
Elimination of transactions with segments–13.0–
Depreciation and amortisation –(33.7)–
Interest costs (net)–(108.6)–
Fair value change on financial instruments–(3.5)–
Associates (share of net profit/(loss))–1.8–
Capital expenditure––38.3
Reported in the financial statements1,279.3255.6529.5
VECTOR INTERIM FINANCIALS 2022
16

Notes to the Interim Financial Statements
5. Intangible assets
Goodwill impairment
assessments
Goodwill is tested at least annually for impairment against the recoverable
amount of the cash generating units (“CGU”) to which it has been allocated.
As at 31 December 2021, CGUs within the group are: electricity, gas
distribution, metering, natural gas, LPG, Liquigas, communications and
E-Co Products. Management performed impairment assessments on all
CGUs except for communications and E-Co Products at 31 December 2021.
No impairment was found.
Risk of Impairment of Assets
On 15 September 2021, the New Zealand Government advised that it will
release its final Emissions Reduction Plan (ERP) by the end of May 2022 in
line with the 2022 Budget. The ERP will detail the policies the Government
will use to achieve the emissions budgets to meet New Zealand’s agreed
decarbonisation targets. As previously indicated, the ERP will likely have
significant implications for Vector’s businesses and in particular, the value
of our gas distribution network.
On 10 February 2022, the Commerce Commission released its draft
determination of the default price-quality path for the group’s gas
distribution business for the period 1 October 2022 to 30 September 2026.
The key message of the draft determination decision is that gas pipeline
businesses should continue to invest to deliver a safe and reliable supply
over the short-term until the long-term future of natural gas use in New
Zealand becomes clearer. Importantly, in releasing the draft determination,
the Commerce Commission notes that it will soon start consulting with
the energy sector on the review of the rules and processes that underpin
the regulatory settings. Overall, the draft determination has a positive
valuation impact for Vector with an increase in forecast revenue over the
next four years f rom 1 October 2022 to 30 September 2026.
The impact of any ERP policy changes on the Commerce Commission’s
regulatory model for the gas distribution network will be fundamental to
any revision in assumptions for the valuation of the gas distribution CGU.
The timing or extent of this is not yet known. The regulatory model
determines the cash flows we can earn f rom the gas distribution business
and hence its value. We will be monitoring any policy developments
closely. Similarly, any ERP policy changes could impact valuation
assumptions for the natural gas, LPG and Liquigas CGUs. Vector currently
has $260.2m of goodwill allocated to its gas businesses.
While at 31 December 2021, the Board and management have concluded that
there is no impairment recognised, we acknowledge that the ERP policies
could change the outlook for these businesses and will present significant risk
to the future cashflows and expected lives of the group’s gas assets. As the
ERP policies are formalised and the Commerce Commission considers the
impact on the regulatory model for gas networks, their impact on the
assumptions used in impairment valuation models will need to be carefully
assessed. Accordingly, the gas distribution CGU along with the natural gas,
LPG and Liquigas CGUs will be reassessed for impairment at 30 June 2022.
VECTOR INTERIM FINANCIALS 2022
17

Notes to the Interim Financial Statements
6. Borrowings and derivatives

NET
DERIVATIVES
$M
BORROWINGS
$M
Balance at 30 June 2021 (audited)(62.3)(3,070.6)
Fair value movements:
Foreign exchange rates(5.2)5.2
Interest rates and other fair value changes52.715.2
Repayment–158.0
Drawdown–(225.0)
Amortised costs –0.8
Balance at 31 December 2021 (unaudited)(14.8)(3,116.4)
Fair value at 31 December 2021 (unaudited)(14.8)(3,185.5)
VECTOR INTERIM FINANCIALS 2022
18

Notes to the Interim Financial Statements
7. Financial ratios
Basic and diluted earnings per share
31 DEC 2021
6 MONTHS
(UNAUDITED)
$M
31 DEC 2020
6 MONTHS
(UNAUDITED)
$M
30 JUN 2021
12 MONTHS
(AUDITED)
$M
Net prof it attributable to owners of the parent 114.5101.1193.2
Weighted average ordinary shares outstanding during the
period (number of shares)999,920,613999,895,179999,906,097
Total earnings per share11.5 cents10.1 cents19.3 cents
Net tangible assets per share
31 DEC 2021
(UNAUDITED)
$M
31 DEC 2020
(UNAUDITED)
$M
30 JUN 2021
(AUDITED)
$M
Net assets attributable to owners of the parent 2,395.62,268.02,319.7
Less total intangible assets (1,308.2)(1,294.4)(1,294.3)
Total net tangible assets1,087.4973.61,025.4
Ordinary shares outstanding (number of shares)999,972,110999,916,418999,917,965
108.7 cents97.4 cents102.5 cents
Economic net debt to economic net debt plus adjusted
equity ratio (“gearing ratio”)
31 DEC 2021
(UNAUDITED)
$M
31 DEC 2020
(UNAUDITED)
$M
30 JUN 2021
(AUDITED)
$M
Face value of borrowings 3,157.63,005.63,090.6
Lease liabilities29.939.237.4
Less cash and cash equivalents(24.7)(31.8)(17.4)
Economic net debt3,162.83,013.03,110.6
Total equity2,411.62,285.92,335.4
Adjusted for hedge reserves(14.5)75.534.8
Adjusted equity2,397.12,361.42,370.2
Economic net debt plus adjusted equity5,559.95,374.45,480.8
56.9%56.1%56.8%
Economic net debt The definition of economic net debt has changed f rom (face value of
borrowings less cash and cash equivalents) at 30 June 2021 and prior
to (face value of borrowings and lease liabilities less cash and cash
equivalents) at 31 December 2021. Comparatives at 31 December 2020
and 30 June 2021 have been restated accordingly.
Without the change in definition the gearing ratios are: 56.7%, 55.7%,
and 56.5% as at 31 December 2021, 31 December 2020 and 30 June 2021
respectively.
VECTOR INTERIM FINANCIALS 2022
19

Notes to the Interim Financial Statements
8. Cash flows
31 DEC 2021
6 MONTHS
(UNAUDITED)
$M
31 DEC 2020
6 MONTHS
(UNAUDITED)
$M
30 JUN 2021
12 MONTHS
(AUDITED)
$M
Reconciliation of net profit/(loss) to net cash flows from/
(used in) operating activities
Net prof it/(loss) for the period115.5102.1194.6
Items associated with investing activities
Gain on sale of investment in associate(7.1)––
Items associated with investing activities15.111.7(8.1)
Items classified as financing activities
Items associated with lease liabilities0.3–0.4
Non-cash items
Depreciation and amortisation142.6133.1270.1
Non-cash portion of interest costs (net)(2.9)(1.9)(3.7)
Fair value change on f inancial instruments(7.6)2.23.5
Associates (share of net (prof it)/loss)–(1.6)(1.8)
Increase/(decrease) in deferred tax 32.114.027.4
Increase/(decrease) in provisions(6.3)(9.4)(5.4)
Other non-cash items(2.8)(0.4)0.8
155.1136.0290.9
Changes in assets and liabilities
Trade and other payables(21.7)(1.9)14.1
Contract liabilities6.9(2.1)3.3
Contract assets15.66.9(12.9)
Inventories(2.7)0.7(3.0)
Trade and other receivables 2.93.15.9
Income tax 3.714.813.9
4.721.521.3
Net cash flows from/(used in) operating activities283.6271.3499.1
VECTOR INTERIM FINANCIALS 2022
20

9. Capital commitments
31 DEC 2021
(UNAUDITED)
$M
31 DEC 2020
(UNAUDITED)
$M
30 JUN 2021
(AUDITED)
$M
Capital expenditure committed to but not provided for at
balance date234.8132.1206.1
10. Related party transactions
Majority shareholder dividend Vector Limited has paid its majority shareholder, Entrust, dividends of
$63.8 million during the period (six months ended December 2020: $62.0
million, 12 months ended 30 June 2021: $123.9 million).
Outstanding balances At 31 December 2021, the group has no material outstanding balances due
to or f rom related parties of the group (31 December 2020 and 30 June
2021: not material).
11. Contingent liabilities
Disclosures The directors are aware of claims that have been made against entities of
the group and, where appropriate, have recognised provisions for these
within the financial statements.
No material contingent liabilities have been identified.
12. Events after the end of the period
Interim dividend On 24 February 2022, the board declared an interim dividend for the year
ended 30 June 2022 of 8.25 cents per share.
No adjustment is required to these interim financial statements in respect
of this event.
Financial statements approval The interim financial statements were approved by the board of directors
on 24 February 2022.
VECTOR INTERIM FINANCIALS 2022
21

Vector’s standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (GAAP)
is net profit. Vector has used non-GAAP profit measures when discussing financial performance in this
document. The directors and management believe that these measures provide useful information as they are
used internally to evaluate performance of business units, to establish operational goals and to allocate
resources. For a more comprehensive discussion on the use of non-GAAP profit measures, please refer to the
policy ‘Reporting non-GAAP profit measures’ available on our website (www.vector.co.nz).
Non-GAAP profit measures are not prepared in accordance with New Zealand International Financial Reporting
Standards (NZ IFRS) and are not uniformly defined, therefore the non-GAAP profit measures reported in this
document may not be comparable with those that other companies report and should not be viewed in
isolation f rom or considered as a substitute for measures reported by Vector in accordance with NZ IFRS.
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.
GAAP TO NON-GAAP RECONCILIATION
Group EBITDA and adjusted EBITDA
31-DEC-2021
6 MONTHS
$M
31-DEC-2020
6 MONTHS
$M
Reported net profit for the period (GAAP)115.5 102.1
Add back: net interest costs54.5 58.7
Add back: tax (benef it)/expense38.1 30.7
Add back: depreciation and amortisation142.6 133.1
EBITDA350.7 324.6
Adjusted for:
Associates (share of net (prof it)/loss) – (1.6)
Capital contributions(72.4)(51.4)
Fair value change on f inancial instruments(7.6)2.2
Gain on sale of investment in associate(7.1) –
Adjusted EBITDA263.6 273.8
Segment adjusted EBITDA20212020
SIX MONTHS ENDED
31 DECEMBER
REPORTED
SEGMENT
EBITDA
LESS CAPITAL
CONTRIBUTIONS
AND OTHER
MOVEMENTS
SEGMENT
ADJUSTED
EBITDA
REPORTED
SEGMENT
EBITDA
LESS CAPITAL
CONTRIBUTIONS
AND OTHER
MOVEMENTS
SEGMENT
ADJUSTED
EBITDA
Metering86.0 – 86.0 83.1 – 83.1
Gas Trading12.2 – 12.2 14.6 – 14.6
Unregulated segments98.2 – 98.2 97.7 – 97.7
Regulated segment257.4 (71.9)185.5 246.5 (50.6)195.9
TOTAL REPORTED
SEGMENTS355.6 (71.9)283.7 344.2 (50.6)293.6
Corporate and other(4.9)(15.2)(20.1)(19.0)(0.8)(19.8)
TOTAL350.7 (87.1)263.6 325.2 (51.4)273.8
VECTOR INTERIM FINANCIALS 2022
22

Calendar and Directory
FINANCIAL CALENDAR
2022
Record date for interim dividend30 March
Interim dividend paid 8 April
Third quarter operating statistics April
Fourth quarter operating statistics July
Full year result and annual report August
Final dividend* September
Annual meetingSeptember
* Dividends are subject to Board determination.
INVESTOR INFORMATION
Ordinary shares in Vector Limited are listed and quoted on the New Zealand Stock Market (NZSX) under the
company code VCT. Vector also has capital bonds and unsubordinated f ixed rate bonds listed and quoted on
the New Zealand Debt Market (NZDX). Current information about Vector’s trading performance for its shares
and bonds can be obtained on the NZX website at www.nzx.com. Further information about Vector is
available on our website www.vector.co.nz.
DIRECTORY
Registered office
Vector Limited
101 Carlton Gore Road
Newmarket
Auckland 1023
New Zealand
Telephone 64-9-978 7788
Facsimile 64-9-978 7799
www.vector.co.nz
Postal address
PO Box 99882
Newmarket
Auckland 1149
New Zealand
Investor enquiries
Telephone 64-9-213 5179
Email: investor@vector.co.nz
insight
creative.co.nz

VEC235
VECTOR INTERIM FINANCIALS 2022
23

VECTOR INTERIM FINANCIALS 2022
24
vector.co.nz

---

VECTOR LIMITED
Results announcement



Results for announcement to the market
Name of issuer VECTOR LIMITED
Reporting Period 6 MONTHS TO 31 DECEMBER 2021
Previous Reporting Period 6 MONTHS TO 31 DECEMBER 2020
Currency NEW ZEALAND DOLLAR
Amount (000s) Percentage change
Revenue from continuing
operations
$684,641 +5.7%
Total Revenue $684,641 +5.7%
Net profit/(loss) from
continuing operations
$114,521 +13.3%
Total net profit/(loss) $114,521 +13.3%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.08250000
Imputed amount per Quoted
Equity Security
$0.00967877
Record Date 30 March 2022
Dividend Payment Date 8 April 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.087 $0.974
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to accompanying unaudited financial statements
Authority for this announcement
Name of person

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

25/02/2022

Unaudited financial statements accompany this announcement.

---

Vector Limited
Distribution Notice



Section 1: Issuer information
Name of issuer VECTOR LIMITED
Financial product name/description ORDINARY SHARES
NZX ticker code VCT
ISIN (If unknown, check on NZX
website)
NZVCTE0001S7
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 30/03/2022
Ex-Date (one business day before the
Record Date)
29/03/2022
Payment date (and allotment date for
DRP)
08/04/2022
Total monies associated with the
distribution
$82,500,000
Source of distribution (for example,
retained earnings)
RETAINED EARNINGS
Currency NEW ZEALAND DOLLARS
Section 2: Distribution amounts per financial product
Gross distribution $0.09217877
Gross taxable amount $0.09217877
Total cash distribution $0.08250000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.00439204
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Partial imputation
If fully or partially imputed, please
state imputation rate as % applied
10.5%
Imputation tax credits per financial
product
$0.00967877
Resident Withholding Tax per
financial product
$0.02074022
Section 4: Distribution re-investment plan (if applicable)
NOT APPLICABLE

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
JOHN RODGER
Contact person for this
announcement
JOHN RODGER
Contact phone number
021 573 640

Contact email address John.rodger@vector.co.nz
Date of release through MAP

25/02/2022