VECTOR ANNOUNCES FULL YEAR RESULTS

creating a new energy future




VECTOR ANNOUNCES FULL YEAR RESULTS
• Adjusted EBITDA of $510 million. This was down $3.5 million or 0.7% on last
year’s result.
1

• Group net profit after tax of $160.9m
• Results include a $40.2m non-cash goodwill impairment of Vector's LPG
business, which recognises the impact of higher Saudi Aramco contract price
of LPG, higher ETS and a weaker NZ dollar all contributing to a higher cost of
gas, along with the impact of the increase in discount rates as at 30 June 2022
• Final dividend of 8.5 cents per share imputed at 10.5%, taking the full-year
partially imputed dividend to 16.75 cents per share
• Total capital expenditure for the year was $545.9 million, an increase of $4.4
million or 0.8% on the prior year
• Strategic review of Metering business ongoing, with smart metering a critical
part of the transformation and digitalisation of the energy sector

Vector Group (NZX: VCT) today announces a steady result for the full 2022 financial year.
Vector Chair Jonathan Mason said, “The Group has delivered a steady result for the 2022
financial year, against a backdrop of sustained supply chain and inflationary pressure, and
constant evolution of the impacts from the Covid-19 pandemic.

“Group net profit after tax was $160.9m which was $33.7m lower than the prior year due to a
$40.2m non-cash goodwill impairment of Vector's LPG business, which recognises the
impact of higher Saudi Aramco contract price of LPG, higher ETS and a weaker NZ dollar all
contributing to a higher cost of gas along with the impact of the increase in discount rates as

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 56 of the annual report for further details or click on this link to see Vector’s policy
market release
26 August 2022

creating a new energy future


at 30 June 2022. This was offset by higher capital contributions, lower interest cost, and a
gain from the sale of Vector's 50% shareholding in Treescape.

“Total capital expenditure for the year was $545.9 million, an increase of $4.4 million or 0.8%
on the prior period. The increase reflected continued investment in infrastructure to support
Auckland’s continued growth, higher network replacement expenditure and continued rollout
of advanced meters in Australia and New Zealand and the rollout of 4G modem upgrades
across the New Zealand advanced meter base.

“We’ve seen a number of significant policy developments announced this year that reflect the
growing urgency around New Zealand’s response to climate change, with the release of New
Zealand’s first Emissions Reduction Plan set to be fundamental to the energy transition.
Given the challenges of climate change and decarbonisation, we are continuing to find
solutions that deliver to customer needs and accommodate the extra demands on the energy
system of a decarbonised future in the smartest possible way.

“The Board has determined that shareholders will receive a final dividend of 8.5 cents per
share imputed at 10.5%
2
. This will have a record date of 12 September 2022 and payment
date of 19 September 2022.

“We are pleased to announce that we are recommending to shareholders that Doug McKay
be elected as a new director from October 1. Doug has an impressive governance and
management experience and I am confident he will make a valuable contribution to Vector, if
elected.”

Group Chief Executive Simon Mackenzie said, “We’ve seen the clearest signals yet that the
new energy future Vector has been working towards for years, is becoming an imperative.
Climate change, together with a heightened focus on affordability from the rising cost of
living, point clearly to a future energy sector that must be very different from today’s. It is for
us to continue to develop the solutions required to tackle climate change and ensure an

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

creating a new energy future


affordable decarbonisation, particularly at a time when people are grappling with the rising
cost of living.
“The energy transition will increase the criticality of network businesses into the future as
more and more reliance is placed on clean energy for transport, and other industries, in order
to meet carbon reduction goals.
“While we’re meeting the challenges of today and working with Auckland stakeholders to
enable and support the region’s growth, we’re also taking steps to transform the electricity
network to support a future where consumers demand cleaner, more reliable, affordable
energy. We’re working closely with policy makers and regulatory bodies to advocate for
necessary changes, participating in sector forums, and driving the uptake of digitalisation
with global partners, such as AWS and X, the moonshot factory (formerly Google X).
“We’re proud of achieving compliance within our key regulatory SAIDI and SAIFI limits.
Achieving this has been the result of a significant, sustained effort and we are fully committed
to retaining our focus on these key measures of performance for our electricity network
customers. As always, and in particular through this pandemic, we thank our staff and our
Field Service Providers for their dedication to serving our customers.
“In the wider context of helping ensure decarbonisation is affordable, policy makers should
target the long-term interests of consumers at the level of an overall household “energy
wallet” rather than separately considering electricity, or gas, pricing. In many instances,
electrification may lead to overall savings for households, the largest being the potential for
EVs to reduce household spending on petrol costs by more than they increase spending on
electricity, including the network investment needed to meet new demand.
“The Commerce Commission is reviewing the Input Methodologies (IMs) or key regulatory
rules that underpin the way energy networks are regulated for the first time since 2016.
There are significant challenges to address in the regime given it was not designed for
decarbonisation nor the level of network investment and innovation now being asked of
networks in the face of electrification. Indexation continues to introduce the perennial
challenge of inflation forecasting and back-ended cashflows which risk the financeability of
needed and enabling infrastructure investment. Vector is advocating the review needs to
focus squarely on the implications of the Government’s decarbonisation goals for the energy

creating a new energy future


sector and be approached with a significantly higher level of engagement between the
Commerce Commission and industry. This is because such a review comes at a critical time
to ensure these settings are fit for purpose and properly support the transition to a net zero
economy – all the while being completed ahead of the Government’s 2024 Energy Strategy
and 2023 Gas Transition Plan.
“Also this year, The Commerce Commission has set the next Default Price Quality Path
(DPP) for gas pipeline businesses for the four years commencing 1 October 2022. The new
DPP allows for a moderate acceleration of asset depreciation. Our view is that this is a step
in the right direction and is aligned with clear and consistent direction from government about
the role of gas in New Zealand by 2050. We’ve been working constructively with the industry,
Commerce Commission, the Gas Industry Company, and the government, both individually
and as part of the Gas Infrastructure Group, to seek a transition plan that works for
consumers, government and infrastructure owners, as well as recognising the option for
renewable gas.
“We’re also laying the foundation for smart electric vehicle (EV) charging, as the numbers of
EVs continues to rise, and the electrification of the wider transport fleet begins. We’ve
concluded a two-year trial to find out how EV drivers impact electricity demand patterns and
how we can manage that while keeping the costs of new infrastructure to a minimum This
trial shows the benefits of looking at how to enable the energy transition from a number of
different points of views, including customer experience, pricing, and network management
and optimisation.”

Electricity and gas networks
Adjusted EBITDA for our Regulated Networks was $355.8 million, up $5.1 million against the
prior year. The increase in adjusted EBITDA was largely driven by higher electricity revenue
due to the growth in connections and higher recovery of pass-through and recoverable costs.
This is partially offset by lower gas distribution volumes and the prior year release of loss
rental rebates (LRRs), which had been utilised to mitigate the impact of volume reductions on
electricity 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.

creating a new energy future


Revenue increased 8.3% to $831.5 million, due to higher pass-through, recoveries and
connection growth, Loss Rental Rebates received and an increase in capital contributions,
up 24.1% to $150.3 million. The increase in capital contributions reflects continued
connection growth and a policy where we seek 100% contribution for electricity and gas
connections. In addition, during the period we introduced a development charge, where new
connections need to make a contribution towards the capital investment we make in
the electricity infrastructure that supports overall network growth.

We added 13,538 new electricity connections in the year, down from 14,995 in the prior
year. We also added 3,146 new gas connections, down from 3,844 a year earlier. Total
electricity connections stood at 600,112, up 1.6% from 590,799 a year earlier. While total gas
connections were 117,995, up 1.3% from 116,472 a year ago.

Both electricity and gas volumes have been impacted by Covid-19. Volumes transported
across the electricity network increased 0.4% to 8,361 GWh from 8,325 GWh a year earlier
with residential volumes higher partially offset by lower business volumes. Auckland gas
distribution volumes were down 7.1% at 13.1 PJ from 14.1 PJ a year earlier.

Gross regulated capex increased by 4.7% to $331.9 million compared to $316.9 million a
year earlier. Capex net of capital contributions was 7.3% lower than the prior year at $181.6
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. This amount of investment
equates to almost $1m per day, with a significant portion dedicated to building an
electricity network that is ready for the demands of the future, and ensures Auckland has
what it needs now to continue growing, and to support major changes to our transport and
energy systems driven by decarbonisation.


Gas Trading

creating a new energy future


Gas Trading adjusted EBITDA was $21.9 million, down $5.5 million against the prior year
total of $27.4 million. The result was mainly due to the impact of higher cost of LPG product,
which has only been partially recovered through higher consumer prices. The higher cost is
the result of higher Saudi Aramco contract price (CP) of LPG, higher ETS and a weaker NZ
dollar all contributing to a higher cost of gas. These increasing costs have reduced the
profitability of the LPG business and, along with the impact of the increase in discount rates
as at 30 June 2022, resulted in us recognising a non-cash goodwill impairment of $40.2
million. The was partially offset by an improved performance from the natural gas business
which where margins have benefitted from a tight gas market.

Bulk and cylinder sales were lower compared to the prior year. Total LPG sales were down
1.6% at 44,330 tonnes. Bottle Swap 9kg volumes were down 7.4% to 629,651 bottles from
680,099 a year earlier. This decline is partly attributable to the impact of Covid-19 as well as
the loss of a major customer from December 2021. Liquigas LPG tolling volumes were up
10.3% to 112,913 tonnes from 102,351 tonnes a year earlier. Natural gas sales volumes
were down 3.3 PJ to 5.3 PJ from 8.6 PJ in the prior period mainly due to the loss of a major
customer from July 2021.

Metering
Adjusted EBITDA for Vector’s metering segment grew $2.1 million (1.2%) to $173.7 million,
as a result of continued growth in advanced meter deployments in New Zealand and
Australia, offset by increased operating costs (shifted from capital expenditure) due to
changes in accounting policy and additional one-off income received in the prior period.

Metering revenue increased 3.8% to $235.6 million from $227.0 million a year earlier driven
by the increased deployment of advanced meters. We installed and billed 18,053 additional
advanced meters in New Zealand and 93,334 additional advanced meters in Australia. The
level of deployment in New Zealand and Australia has been disrupted by Covid-19 and some
extreme weather events in NSW and Queensland. Our advanced meter base grew 6.5% to
1.98 million from 1.86 million the year before. We have now deployed nearly 490,000
advanced meters in Australia.

creating a new energy future


Total metering capex invested was 3.9% lower at $156.7m due to the lower level of
advanced meter deployment in the period partially offset by increased expenditure for the 4G
modem replacement programme.

A strategic review of Vector Metering is ongoing, to assess options for the next phase of
growth for this successful business.

E-Co Products Group, Vector Powersmart and Vector Fibre
HRV and Powersmart have both had an interrupted year as a result of Covid-19. HRV
experienced a decline in profitability due to a reduction in sales and installation activity due to
Covid-19 restrictions. Staff shortages are a significant challenge for HRV.

Vector Powersmart has seen a change from projects in the Pacific to a large pipeline of
opportunities in New Zealand as organisations look to build solar farms and install solar on
their businesses.

Vector Fibre has delivered a solid performance over the year. High speed
telecommunications services are critical to customers, and we see Vector Fibre as key to
this opportunity as it leverages its fibre assets in the wholesale market.


ENDS
Vector’s full year financial statements, annual report, Taskforce for Climate-related Financial
Disclosures report, and Greenhouse Gas Emissions Inventory report, 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

creating a new energy future



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

---

ANNUAL REPORT 2022

Our world
is changing
fast.

The energy sector
is facing the
most significant
transformation in a
lifetime. The impacts
of climate change
are increasing the
urgency to address
decarbonisation
.

Changing customer needs
requires greater resilience,
flexibility, collaboration
and smarter solutions.
At Vector we’re leading
the way to accelerate the
transformational change
our sector needs, to deliver
the energy solutions that
meet the challenges of
today and tomorrow.
We must have solutions
to meet the
challenges
of today
Vector Annual Report 20222

and the future
3

As we continue to work
towards our vision of creating
a new
PHOTO: Doree and Sache Ltd. Cable jointing a 22,000 volt cable near Kings Wharf,
Auckland – Photograph taken ca 1939 for the Auckland Electric Power Board by Doree and
Sache. Making New Zealand :Negatives and prints from the Making New Zealand Centennial
collection. Ref: MNZ-0523-1/4-F. Alexander Turnbull Library, Wellington, New Zealand.
Vector Annual Report 20224

energy future,
In 1922 the Auckland Electric Power
Board was created to manage
Auckland’s power assets, supplying
power to 8000 customers.
Today, as the energy sector
undergoes its most significant
transformation in generations,
Vector’s Symphony strategy is
enabling the innovation and
customer focus needed to meet
the challenges of the future.
this year in particular we reflect on our
heritage, which began 100 years ago.
5

Vector Annual Report 20226

About this report
This report, dated 25 August 2022 is a review of Vector’s financial
and operational performance for the year ended 30 June 2022.
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 Listing 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.
Performance snapshot8
Strategic reports
Chair and Group Chief Executive
Chief Financial Officer
10
12
18
Environmental, Social & Governance (ESG)
Our people and safety
Energy affordability and decarbonisation
20
22
24
Business segment reports
Regulated networks
Gas trading
Metering
27
28
32
33
Governance report34
Who we are
Our Board
Our Management Team
Entrust
44
46
48
50
Other disclosures
Joint ventures and investments
Operating statistics
Five-year Financial Performance
Non-GAAP financial information
51
52
53
54
56
Financials
Financial statements
Notes to the financial statements
Independent auditor’s report
57
58
64
102
Statutory information
Statutory information
Directory and financial calendar
107
108
120
Contents
7

92.42
SAIDI minutes, within the
regulatory limit of 104.83
10,599
Advanced gas meters deployed,
providing gas consumers the
ƣƲǾƲ ̊Ʌ٪ȉnj٪njɍdzdz٪ɥǛȷǛƣǛdzǛɅɬ٪ȉnj٪ǍƇȷ٪ɍȷƲ٪
before their bill arrives
Customer
Financial and operational highlights
8
Performance
snapshot
$
545.9
M
Capex invested across
the group
$
510
M
ADJUSTED
EBITDA
1
$
160.9
M
GȯȉɍȬ٪ǾƲɅ٪Ȭȯȉ ̊Ʌ٪
after tax
16.75
CENTS
per share full
year dividend
1. EBITDA from continuing operations adjusted for fair value changes, associates, third-party contributions, and
significant one-off gains, losses, revenues and/or expenses. Refer to Non-GAAP reconciliation on page 56.
Financial
629,651
No. of 9kg bottle swaps
600,112
No. of electricity connections
1.98
M
Advanced meters across
vƲɦ٫íƲƇdzƇǾƫ٪ۂ٪
ɍȷɅȯƇdzǛƇ
117,995
No. of gas connections
Operational

Environment, social, and governance highlights
9
100
+
Managers accredited through
internal Leadership WOF level
1 programme
675
Number of individual
wellbeing assessments
provided to staff
Leadership and wellbeing
346,500
Number of residents, in 2021, in the
Entrust district of central, east and
south Auckland eligible to receive
their share of more than $98m in
dividend payments, thanks to
Entrust’s shareholding in Vector
1.3GW
¤ȉɅƲǾɅǛƇdz٪ƇɥȉǛƫƲƫ٪ȬƲƇǯ٪ƫƲǼƇǾƫ٫ǛǾ٪
2050 through Symphony solutions,
ȯƲȷɍdzɅǛǾǍ٪ǛǾ٪ǼȉȯƲ٪Ʋnj ̊ƤǛƲǾɅ٪ǾƲɅɦȉȯǯ٪
growth investment, according to
internal modelling
$
8,000+
Conservative estimate cost per
household of switching gas to
electricity, including appliances
and make good repairs,
underscoring Vector’s advocacy
for a managed transition to
mitigate additional consumer cost
Energy affordability
Climate change
3
Major weather events
experienced
16.5
%
tCO
2
e reduction across Scope 1,
2, and 3 emissions since FY20

Vector Annual Report 202210

Strategic
reports
Here we offer a strategic overview
of our operating environment,
strategy, performance over the
year, and a future outlook into how
Vector is creating a new energy
future which is more equitable,
clean, reliable and safe.
11

We’ve seen the clearest signals yet that the new
energy future Vector has been working towards for
years, is becoming an imperative. Climate change,
ɅǕƲ٪ȯƲdzƲƇȷƲ٪ȉnj٪vƲɦ٫íƲƇdzƇǾƫىȷ٪ ̊ȯȷɅ٪-ǼǛȷȷǛȉǾȷ٪
Reduction Plan and rapidly increasing customer
expectations, together with a heightened focus
on affordability from the rising cost of living, point
clearly to a future energy sector that must be very
different from today’s. We envisioned this future
a number of years ago.
Chair and Group Chief Executive report
SIMON MACKENZIE
GROUP CHIEF EXECUTIVE
JONATHAN MASON
CHAIR
Chair and Group
Chief Executive report
Vector Annual Report 202212

Within our regulated businesses,
regulatory mechanisms enable
increasing costs to be passed
through, within a time frame set out
by the regulatory framework.
Business performance
Dedicated overviews of key
business units are provided in the
Business Segment section (page
27), while notable highlights and
commentary on other businesses are
provided here.
HRV and Vector Powersmart have
both had an interrupted year as a
result of Covid-19. HRV experienced a
decline in profitability due to a
reduction in sales and installation
activity due to Covid-19 restrictions.
Staff shortages are a significant
challenge for HRV. Vector Powersmart
has seen a change from projects in the
Pacific to a large pipeline of
ȉȬȬȉȯɅɍǾǛɅǛƲȷ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫ٪Ƈȷ٪
organisations look to build solar farms
and install solar power within their
businesses.
Vector Fibre has delivered a solid
performance over the year. High-
speed telecommunications services
are critical to customers, and we see
Vector Fibre as key to this opportunity
as it leverages its fibre assets in the
wholesale market, including providing
fibre services to data centres.
We’ve been encouraged by several
new customers for security services
provided by Vector Technology
Solutions (VTS), which was formed to
take to market solutions developed
internally as part of Vector’s digital
transformation journey. VTS
continues to explore local and
global opportunities for key priority
solutions including those created
through our strategic alliance with
Amazon Web Services (AWS), and
local opportunities for cyber security
services. We’re also continuing our
strategic collaboration with X, the
moonshot factory (formerly Google
X), which is developing technology
and tools to accelerate clean and
renewable power onto the grid.
Strong electricity network
performance
We’re pleased to see a second year of
compliance within our key regulatory
SAIDI and SAIFI limits. Achieving this
has been the result of a significant,
sustained effort and we thank our
operational teams and Field Service
Providers for their support and
We announced earlier this year that
we would pass on an expected credit
of $30 to Auckland electricity account
holders, as payment of annual Loss
Rental Rebate surpluses for the year
to 30 June 2022. We’re aware that any
rebate such as this will be welcomed
by our customers. Earlier in the year,
the Electricity Authority consulted
on potential changes which could
see electricity distributors losing
the ability to issue these payments
direct to consumers. Vector’s position
is that consumers benefit from the
status quo, when distributors have
this ability, rather than the payment
going to others in the energy supply
chain who may or may not pass on
the rebate.
Dividend
This year, shareholders will receive
a final dividend of 8.50 cents per
share imputed at 10.5%, taking the
full-year partially imputed dividend
to 16.75 cents per share. The final
dividend will be paid to investors who
are on the register at 12 September
2022 and distributed to them on 19
September
2022.
LOOKING BACK
We’ve seen several key themes
having an impact on our operating
environment over the year, including
continued disruption from Covid-19
and an extended lockdown in
Auckland, inflation pressure, the
cost of living, and challenges with
shortages of staff in some key roles
such as drivers, installers, electricians,
and some corporate roles.
Inflation flow through
This last year has also seen high
and sustained inflationary pressure.
This, and the war in Ukraine, has
driven an increase in commodity and
import prices in general with our LPG
business in particular being subject
to oil price shocks.
High inflation increases our costs,
which has a flow-through effect on
our ability to undertake projects
across the group. In our non-
regulated businesses we can pass
on some of these higher costs to
customers, however our ability to
keep pace is somewhat constrained
by price volatility and a higher cost
of living.
Our approach, encompassed in our
Symphony strategy, is to design a
system that delivers to customer
needs, and accommodates the extra
demands on the energy system of a
decarbonised future in the smartest
possible way (see Symphony
Solutions for a New Energy Future,
page 14). This includes delivering
efficient, affordable, and reliable
energy to consumers and businesses,
supporting the electrification of
the transport sector, and other
industries, and enabling a fuel
transition to greener options. Our
strategy will enable a future where
customers have choices about how
they manage their energy, including
the ability to generate or sell energy
back to the network, or use it in other
ways, such as powering their own
house during an outage, enhancing
the resilience of the total system.
We’ve made steady progress against
our Symphony goals, recognising
that the energy system is facing
the biggest challenge in its history.
It is for us to find the solutions
required to tackle climate change
and decarbonisation, particularly at a
time when people are grappling with
the rising cost of living.
Earnings
Vector’s financial performance for
the year reflects a steady result with
adjusted EBITDA of $510 million. This
was down $3.5 million or 0.7% on last
year’s result. Group net profit after
tax was $160.9 million, which was
$33.7 million lower than the prior
year due to a $40.2 million non-cash
goodwill impairment of Vector’s LPG
business. The impairment recognises
the impact of the higher Saudi
Aramco contract price of LPG, higher
Emissions Trading Scheme and a
weaker NZ dollar all contributing to
a higher cost of gas, along with the
impact of the increase in discount
rates as at 30 June 2022. This was
partly offset by higher capital
contributions, lower interest cost, and
a gain from the sale of Vector’s 50%
shareholding in Treescape.
Total capital expenditure for the year
was $545.9 million, an increase of
٫ׂׂؘٳǼǛdzdzǛȉǾ٪ȉȯ٪ڤ׆ؘ־٪ȉǾ٪ɅǕƲ٪ȬȯǛȉȯ٪ȬƲȯǛȉƫؘ٪
The increase reflected continued
investment in infrastructure to
support Auckland’s continued growth,
higher network replacement
expenditure and the roll out of 4G
modem upgrades across the
vƲɦ٫íƲƇdzƇǾƫ٪ƇƫɥƇǾƤƲƫ٪ǼƲɅƲȯ٪ƣƇȷƲؘ
Strategic reports
13

hard work throughout the year.
We are fully committed to retaining
our focus on these key measures
of performance.
We’ve also seen a change in the way
we recover overall network growth
costs, with the introduction of a
development contribution to all new
connections on the electricity and
gas networks. This change ensures
that those who are driving the need
to invest in network growth will cover
the costs of doing so. The outcome of
this change is greater equity across all
our network customers as, without the
development contribution, we would
need to recover a greater proportion of
our growth-related capital investment
costs through our line charges, which
are paid by all customers irrespective
of whether they are contributing to
overall system growth.
Covid-19
Throughout the pandemic we’ve
taken numerous steps to keep our
people safe, and protect our ability
to continue serving our customers.
Some of these steps are set out in
Symphony solutions for a new energy future
Electrification of transport and industry, combined with renewable generation, will form a key approach
to decarbonising New Zealand’s economy. Electrification will also drive a significant increase in demand
for electricity. If the extra demand is unmanaged, for example where electric vehicle charging is clustered
around evening peak demand hours, this will result in substantial network investments to meet a much
higher peak demand that would increase costs for our customers and exacerbate existing inequalities.
However, if the growth in electricity demand occurs with all electric vehicles, batteries and other controllable
loads coming under demand-side management – where their overall demand can be spread more evenly
outside of the peak times – this allows for an increase in electrification with less impact on the peak, and
consequently less need for expensive infrastructure build. Building digital platforms and new solutions to
make physical infrastructure more efficient is key to designing an energy system that provides the right
outcomes for all stakeholders, and is core to our Symphony strategy.
the People and Safety section on
page 22. Our essential service people
have continued to work through
lockdowns with increased protocols
to keep them safe, such as operating
two fully separated electricity control
rooms. With the lifting of community
Covid-19 restrictions, our teams are
experiencing some absences due to
Covid-19 or isolation requirements,
however our controls have helped
us successfully maintain our service
delivery standards despite the
disruption. Our thanks go again to
Ƈdzdz٪ȉɍȯ٪ɅƲƇǼȷ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫ٪ƇǾƫ٪
Australia, and to our field service
providers, for their continued resilience
and commitment to our customers.
Supply chain
We’ve been actively managing our
supply chain through the disruptions
over recent years, with a particular
focus on areas where we import key
materials, such as electricity network
components, and electricity and
gas meters. Through this proactive
management we’ve successfully
retained higher levels of stock on hand,
which has been helpful in continuing
to meet our service delivery targets.
With events like extended lockdowns
in Shanghai and elsewhere in China,
our view is the potential for disruption
is likely to continue for some time,
however we are planning ahead to
ensure we can continue to mitigate
impacts as much as possible.
Workforce wellbeing
and pay equity
This year we have invested further
in our wellbeing programme. A
notable achievement has been the
development of a new wellbeing
strategy (see Staff Wellbeing,
page 22) following employee
wellbeing assessments and focus
groups to identify our strengths and
areas to improve. We undertake a
pay equity review annually which
encompasses gender, ethnicity,
and age while also considering role
equivalence as a critical factor in pay
equity analysis and remediation.
Chair and Group Chief Executive report
1,000
2,000
3,000
4,000
5,000
2052204720422037203220272022
This is the load growth to
enable decarbonisation, relying
purely on network build.
Disorderly Decarbonisation
Load growth with digital
technologies driving
low-cost decarbonisation.
Orderly Decarbonisation
Avoidable
network
build through
demand side
response.
Symphony
Tipping Point
Network Power Capacity (MVA)
Vector Annual Report 202214

LOOKING AHEAD
The future for Auckland
While we’re meeting the challenges
of today and working with Auckland
stakeholders to enable and support
the region’s growth, we’re also taking
steps to transform the electricity
network to facilitate a future where
consumers demand cleaner, more
reliable, affordable energy (see
Regulated Networks, page 28). The
energy transition will increase the
criticality of network businesses
into the future as more and more
reliance is placed on clean energy
for transport, and other industries,
in order to meet carbon reduction
goals. We’re working closely with
policy makers and regulatory
bodies to advocate for necessary
changes, participating in sector
forums, and collaborating with
global organisations.
Through our strategic alliance with
AWS we're building solutions that
enable the development of new
products, services and applications
to deliver more affordable, reliable,
and cleaner energy options to
consumers, accelerating the uptake
of renewables, EVs, and personalised
energy management.
The work we’re doing with X is
contributing to their Tapestry project,
which is all about accelerating the
decarbonisation of electric power
systems. Tapestry aims to create
highly accurate visualisations and
simulations of the grid that can
predict how it will behave from
nanoseconds to years into the future.
This is a ‘moonshot’ project, which
means there is uncertainty over final
outcomes, however the challenge
and potential solutions have huge
relevance all over the world. We are
excited to be part of the journey
to create a world class distribution
network that enables affordable
decarbonisation.
We’re also laying the foundation for
smart EV charging, as the numbers
of EVs continues to rise, and the
electrification of the wider transport
fleet begins (see Electrification of
Transport, page 31). We’ve concluded
a two-year trial to find out how EV
drivers impact electricity demand
patterns and how we can manage
that while keeping the costs of new
infrastructure to a minimum (see
Insights From EV Smart Charging
Trial on page 31). This trial shows
the benefits of looking at how
to enable the energy transition
Strengthening coordination across Government
Our decarbonisation journey is characterised by complex
interdependencies across industry and government, and
requires a strongly coordinated approach across all of
government with updated regulations to enable the system
change that is needed. For this reason, we advocate for the
establishment of a Ministry for Energy and Decarbonisation.
A clear example of where coordination is needed is in EV
charging infrastructure that provides for consumer needs and
preferences, and is efficiently integrated and optimised within
the electricity system. This is critical to enable an affordable
uptake of EVs and requires a new level of coordination where
decision-makers mobilise around outcomes, not process.
In the last year, both the Emissions Reduction Plan and the
Climate Change Commission’s advice have sent clear signals on
the need for stronger coordination to overcome the complex
and siloed machinery of government. A Ministry for Energy
and Decarbonisation would help achieve this, providing better
coordination and resourcing of government workstreams, and
supporting innovation within the private sector.
from a number of different points
of view, including customer
experience, pricing, and network
management and optimisation.
The next chapter for
Vector Metering
Earlier this year we announced a
strategic review of Vector’s metering
business, recognising that smart
metering has become a critical
part of the transformation and
digitalisation of the energy sector
around the world.
We’ve spent the past 13 years
growing Vector Metering into a
substantial and successful business,
with our work recognised by global
organisations, including AWS.
In light of these factors, we
considered it the right time to assess
options for the next phase of growth
for our metering business, and
have appointed advisors Citi and
Barrenjoey to assist with this process.
Strategic reports
“We are not in a phase of
incremental change. The
whole industry was set up in
a vastly different time and
the whole system, including
regulation, has to change
at pace. We cannot operate
in silos – either locally or
globally, we must look at
the energy system, and
what is needed to deliver to
customers, as a whole.”
ػ٪
ɍƫȯƲɬ٪íǛƣƲdzǼƇǾؙ٪
Vice President, X’s moonshot
for the electric grid
15

CLIMATE POLICY
We’ve seen a number of significant
policy developments announced this
year that reflect the growing urgency
ƇȯȉɍǾƫ٪vƲɦ٫íƲƇdzƇǾƫىȷ٪ȯƲȷȬȉǾȷƲ٪
to climate change. In this context,
to help ensure decarbonisation is
affordable, policy makers should
target the long-term interests
of consumers at the level of an
overall household “energy wallet”
rather than separately considering
electricity, or gas, pricing. In many
instances, electrification may lead to
overall savings for households, the
largest being the potential for EVs to
reduce household spending on petrol
costs by more than they increase
spending on electricity, including the
network investment needed to meet
new demand, which consumers pay
through electricity bills.
The Government intends to publish
a comprehensive Energy Strategy
for the country by the end of 2024.
Developing such a strategy requires
expansive and forward-looking policy
thinking and will be critical to the
future of the entire energy sector. We
are already engaging with Ministers
and officials on important elements
of the strategy including customer-
centricity, digitalisation, data insights,
whole-of-energy-systems-cost
thinking, financing of enabling
energy infrastructure and whether
existing siloed regulatory regimes
remain fit for purpose.
Gas DPP
The Commerce Commission has set
the next Default Price Quality Path
(DPP) for gas pipeline businesses
for the four years commencing 1
October 2022. The new DPP allows
for a moderate acceleration of asset
depreciation. This is a step in the
right direction and is aligned with
clear and consistent direction from
government about the role of gas in
vƲɦ٫íƲƇdzƇǾƫ٪ƣɬ٪ؘ־׃־׀٪ɍȯ٪ɥǛƲɦ٪Ǜȷ٪ɅǕƇɅ٪
the gas transition must be equitable
for all parties within credible emission
reduction pathways.
The next DPP will result in a moderate
front-loading of investment recovery
in the prices customers pay, however
they are cost-neutral over the lifetime
of the assets and will not increase
returns for gas pipeline businesses
over the life of their assets. This is
important in order to avoid higher
price rises for gas customers least able
to afford them further down the track.
We’ve been working constructively
with the industry, Commerce
Commission, the Gas Industry
Company, and the Government,
both individually and as part of
the Gas Infrastructure Group, to
seek a transition plan that works
for consumers, government and
infrastructure owners, as well as
recognising the option for renewable
gas. We support the commitment
to develop a Gas Transition Plan by
2023 in the Government’s Emissions
Reduction Plan. This includes a
focus on the impact of the transition
on households and communities,
including a cost of up to $5.3 billion
for gas appliance replacement and
building modifications,
1
as well
as planning ahead for the impact
on the electricity sector from the
switch from gas to electricity. We
are committed to maintaining
momentum on this work to offer a
clear pathway forward for residential
customers and businesses, and fair
outcomes for investors like Vector.
Input Methodology Review
The Commerce Commission is
reviewing the Input Methodologies
(IMs) or key regulatory rules that
underpin the way energy networks
are regulated for the first time
since 2016. There are significant
challenges to address in the regime
given it was not designed for
decarbonisation nor the level of
network investment and innovation
now being asked of networks in the
face of electrification. Indexation
continues to introduce the perennial
challenge of inflation forecasting
and back-ended cashflows which
risk the financeability of enabling
infrastructure investment. Vector
is advocating the review needs to
focus squarely on the implications of
the Government’s decarbonisation
goals for the energy sector and be
approached with a significantly
higher level of engagement between
the Commerce Commission and
industry. This is because such a
review comes at a critical time to
ensure these settings are fit for
purpose and properly support the
transition to a net-zero economy, all
the while being completed ahead
of the Government’s 2024 Energy
Strategy and 2023 Gas Transition Plan.
Emissions Reduction Plan
vƲɦ٫íƲƇdzƇǾƫىȷ٪njǛȯȷɅ٪-ǼǛȷȷǛȉǾȷ٪
Reduction Plan has been released,
and will be a fundamental document
for the energy transition. It includes
statements to “explore measures
to ensure EV charging is energy
efficient and creates a platform for a
flexible energy system” and “improve
energy product regulations”. These
are critical elements we must enable
now, as the UK has already done by
requiring EV chargers to be able to
be managed, so that we can smooth
out electricity demand peaks. This
is essential to ensure an affordable
transition. We will continue to
engage and innovate to facilitate
the convergence of our energy and
transport systems at least consumer
cost. This requires coordinated and
urgent action to drive our future EV
charging infrastructure.
The Emissions Reduction Plan
also includes work to ensure that
electricity market measures support
vƲɦ٫íƲƇdzƇǾƫىȷ٪ɅȯƇǾȷǛɅǛȉǾ٪Ʌȉ٪Ƈ٪ǕǛǍǕdzɬ٪
renewable system. To achieve this
objective, our electricity market
regulation must be aligned to
accelerate the integration of enabling
technologies and business models,
rather than holding them back.
We believe that climate change
and a 21st-century technological
environment demand a new
market approach, and that a highly
renewable and affordable system will
not be delivered by regulation from
the mid-1990s.
Chair and Group Chief Executive report
Vector Annual Report 202216
1. Under the Climate Change Commission’s
demonstration transition pathway, the cost
to households, consumers and commercial
buildings for appliance replacement and building
modifications to transition away from gas could
total $5.3 billion by 2050.

Deepening our climate change
knowledge and capability
This year saw several developments
in how we are deepening our
understanding of climate change
and our role in enabling affordable
decarbonisation.
We've published our second,
more comprehensive, Taskforce
for Climate-Related Financial
Disclosures (TCFD) report, we've
taken actions that have resulted
in reduced carbon emissions, and
we've developed a marginal carbon
cost abatement curve to identify
and prioritise areas we can focus on
to reach our science-aligned target,
and also to provide transparency over
where challenges are and the cost to
abate emissions. More detail on these
is set out in Energy Affordability and
Decarbonisation, page 24.
FINAL WORDS
Vector is well positioned to enable
decarbonisation, guided by our
vision, to create a new energy
future. Despite the challenges
of climate change today, our
Symphony strategy helps us
seize the opportunities of a
decarbonised future, by creating
a decentralised energy system
that opens possibilities, delivering
decarbonisation consistent with
safe, reliable and affordable energy
solutions for customers.
A major theme we are experiencing is
the electrification of the economy as
a key part of global decarbonisation
efforts. Vector is one of the leading
players in the transformation of the
energy sector to meet this aim, and
we welcome the opportunity to share
with you recent highlights of our
progress in this report.
Jonathan Mason
Chair
Simon Mackenzie
Group Chief Executive
17
Strategic reports

JASON HOLLINGWORTH
CHIEF FINANCIAL OFFICER
ÜƲƤɅȉȯىȷ٪ ̊ǾƇǾƤǛƇdz٪ȬƲȯnjȉȯǼƇǾƤƲ٪njȉȯ٪ɅǕƲ٪ɬƲƇȯ٪ȯƲ ̨ƲƤɅȷ٪
a steady result with adjusted EBITDA of $510 million.
This was down $3.5 million or 0.7% on last year’s result.
GȯȉɍȬ٪ǾƲɅ٪Ȭȯȉ ̊Ʌ٪ƇnjɅƲȯ٪ɅƇɫ٪ɦƇȷ٪ׇؘ־ֿׄٳ٪ǼǛdzdzǛȉǾ٪ɦǕǛƤǕ٪ɦƇȷ٪
$33.7 million lower than the prior year due to a $40.2
million non-cash goodwill impairment of Vector’s LPG
business. This recognises the impact of the higher Saudi
Aramco contract price of LPG, higher Emissions Trading
̄ƤǕƲǼƲ٪ƇǾƫ٪Ƈ٪ɦƲƇǯƲȯ٪ví٪ƫȉdzdzƇȯ٪Ƈdzdz٪ƤȉǾɅȯǛƣɍɅǛǾǍ٪Ʌȉ٪Ƈ٪
ǕǛǍǕƲȯ٪ƤȉȷɅ٪ȉnj٪ǍƇȷؙ٪ƇdzȉǾǍ٪ɦǛɅǕ٪ɅǕƲ٪ǛǼȬƇƤɅ٪ȉnj٫ɅǕƲ٪ǛǾƤȯƲƇȷƲ٪
ǛǾ٪ƫǛȷƤȉɍǾɅ٪ȯƇɅƲȷ٪Ƈȷ٪ƇɅ٪־ׁ٪eɍǾƲ٪ؘ׀׀־׀٪½ǕǛȷ٪ɦƇȷ٫ȉnjnjȷƲɅ٪ƣɬ٪
higher capital contributions, lower interest cost and a gain
njȯȉǼ٪ɅǕƲ٪ȷƇdzƲ٪ȉnj٫ÜƲƤɅȉȯىȷ٪ڤ־׃٪ȷǕƇȯƲǕȉdzƫǛǾǍ٪ǛǾ٫½ȯƲƲȷƤƇȬƲؘ٪
Chief Financial Officer report
Chief Financial
Officer report
Vector Annual Report 202218

10
12
1
4
16
18
20222021202020192018201720162015201420132012201120102009
DIVIDEND DECLARED
CENTS PER SHARE
GROUP CAPITAL EXPENDITURE
$ MILLION
0
50
100
150
200
250
300
350
400
450
500
55
0
FY22FY21FY20FY19FY18
381.2
42
5.1
488.7
541.5
545.
9
1. Refer to non-GAAP reconciliation on page 56.
Segment adjusted EBITDA
1
Adjusted EBITDA for our Regulated
Networks was $355.8 million, up
٫ֿؘ׃ٳǼǛdzdzǛȉǾ٪ƇǍƇǛǾȷɅ٪ɅǕƲ٪ȬȯǛȉȯ٪ɬƲƇȯؘ٪½ǕƲ٪
increase was largely driven by higher
electricity revenue due to the growth
in connections and higher recovery of
pass-through and recoverable costs.
This was partially offset by lower gas
distribution volumes and the prior
year’s release of loss rental rebates
(LRRs), which had been utilised
to mitigate the impact of volume
reductions on electricity 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.
Gas Trading’s adjusted EBITDA was
$21.9 million, down $5.5 million
against the prior year’s total of $27.4
million. This result was mainly due
to the impact of the higher cost of
LPG product, which has only been
partially recovered through higher
consumer prices. The higher cost is
the result of higher Saudi Aramco
contract price of LPG, higher ETS
and a weaker NZD. These increasing
costs have reduced the profitability
of the LPG business and, along
with the impact of the increase in
discount rates as at 30 June 2022,
resulted in us recognising a non-cash
impairment of $40.2 million. This
was partially offset by an improved
performance from the natural
gas business where margins have
benefited from a tight gas market.
Adjusted EBITDA for Vector’s
metering segment grew $2.1 million
(1.2%) to $173.7 million, as a result of
continued growth in advanced meter
ƫƲȬdzȉɬǼƲǾɅȷ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫ٪ƇǾƫ٪
Australia. This was offset by increased
operating costs (shifted from capital
expenditure) due to changes in
accounting policy and additional
one-off income received in the prior
period.
Capital contributions
Capital contributions grew by 24%
to $151.8 million during the year,
resulting from a change in policy
requiring 100% customer funding
for electricity and gas connections,
continued connection growth and
the introduction of a development
contribution. From 1 December 2021,
when you add a new connection to
the electricity network, or upgrade
an existing one, you are also required
to pay a contribution towards the
capital investment we make in the
infrastructure that supports overall
network growth.
Cash flow
Operating cash flow was 3.9% higher
at $518.8 million. This increase was
largely due to the higher capital
contributions received in the period.
Capital expenditure
Capital expenditure was $545.9
million, $4.4 million (0.8%) higher
than last year. This increase reflected
ongoing investment in infrastructure
to support Auckland’s continued
growth, higher network replacement
expenditure, and 2G to 4G meter
modem replacement programme in
vƲɦ٫íƲƇdzƇǾƫؘ٪vȉɅƲ٪ɅǕƇɅ٪ɅǕǛȷ٪ǛǾƤȯƲƇȷƲ٪
in capital expenditure was partly
funded by a $29.3 million rise in
capital contributions recognised as
income under International Financial
Reporting Standards (IFRS).
In FY22 we invested $331.9 million of
capital expenditure to improve the
safety, reliability and resilience of our
electricity and gas networks and to
facilitate Auckland’s growth. This
maintains the high level of network
capital expenditure invested over
recent years to meet quality targets
and improve reliability. Net of capital
contributions, the amount invested
ɦƇȷ٪ֿؘׄ׆ֿٳ٪ǼǛdzdzǛȉǾ٪ȉȯ٪٫׀ֿׂؘٳǼǛdzdzǛȉǾ٪dzƲȷȷ٪
than the prior year.
Refinancing and balance sheet
During the year Vector successfully
completed NZD $857 million of
ȯƲnjǛǾƇǾƤǛǾǍؙ٪ƤȉǾȷǛȷɅǛǾǍ٪ȉnj٪٫׃׀ׁٳǼǛdzdzǛȉǾ٪
ɅǕȯƲƲعɬƲƇȯ٪ƣƇǾǯ٪njƇƤǛdzǛɅǛƲȷؙ٪٫׃׀׀ٳǼǛdzdzǛȉǾ٪
six-year Senior Bonds, and the
rollover for a further five years of
$307 million Perpetual Capital bonds.
Vector continues to maintain a strong
balance sheet. Our 30 June 2022
gearing, as measured by economic
net debt to economic net debt plus
adjusted equity was 58.2%. 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 8.50 cents per share
imputed at 10.5%, taking the full-year
partially imputed dividend to 16.75
cents per share. The final dividend
will be paid to investors who are on
the register at 12 September 2022
and distributed to them on
19 September 2022.
Strategic reports
19

More detailed information relating to climate change
and Vector’s approach to decarbonisation is available
in Vector’s Greenhouse Gas Emissions Inventory
Report, and Taskforce for Climate-related Financial
Disclosure report, both available on vector.co.nz
Vector Annual Report 202220

Environmental,
Social and
Governance
Vector is committed to excellence in ESG policies
and processes, and sees these as fundamental to
ensuring an equitable transition to a low-carbon
society. This section, together with the ESG
ǕǛǍǕdzǛǍǕɅȷ٪ǛǾ٪ȉɍȯ٪¤ƲȯnjȉȯǼƇǾƤƲ٪ ̄ǾƇȬȷǕȉɅ٪حȬƇǍƲؙخ׆٫٪
sets out achievements from the past year in
relation to our commitments to environmental
and social themes. A detailed Governance section
is included on page 34.
Our actions are in alignment with the following
UN Sustainable Development Goals:
21

Antigen Testing protocols both on
and off site, our technology-based
contact tracing system, and work
from home requirements. We’ve
also maintained a flexible position
on work location, factoring in the
impact on individuals, team and
organisational performance. We’ve
engaged regularly with our teams for
feedback, and take into account the
strong desire from job candidates for
flexibility and how this impacts our
attractiveness as an employer in a
tight labour market. However some
of our roles, particularly essential
workers, continue to require on-site
presence, such as our electricity
controllers, and front-line staff.
Diversity and inclusion remains a
focus for us however the extent of
the impact of Covid-19 on our teams
has seen a significant focus on
mental health in a hybrid working
environment. We have initiated a
reset of our diversity and inclusion
programme for FY23.
We’ve continued to conduct regular
pay equity reviews and take action
to remediate any inequities across
gender, ethnicity, and age.
Staff wellbeing
The pandemic further highlighted
the role of the workplace in
our employees’ wellbeing with
mental health coming into even
Our people
and safety
¤ƇȯɅǾƲȯǛǾǍ٪ɦǛɅǕ٪vǍƜɅǛ٪ÝǕƜɅɍƇ٪™ȯƜǯƲǛ
ÝƲ٪ɦƲȯƲ٪Ȭȯȉɍƫ٪Ʌȉ٪ƣƲ٪ȬƇȯɅ٪ȉnj٪ɅǕƲ٪ƤȉȯȬȉȯƇɅƲ٪ɅƲƇǼ٪ɅǕƇɅ٪ȬƇȯɅǾƲȯƲƫ٪ɦǛɅǕ٪vǍƜɅǛ٪ÝǕƜɅɍƇ٪™ȯƜǯƲǛ٪ȉǾ٪ǛɅȷ٪UȯƇ٪%ȉɅ٪
campaign to help boost Auckland’s Covid-19 vaccination rates during the national vaccination roll-out. During
a weekend in November 2021, the campaign saw a fantastic turnout at Eden Park and the four kura across
south and west Auckland, with more than 2,000 dots being given as a result.
½ǕǛȷ٪ƤƇǼƲ٪ƇƣȉɍɅ٪Ƈȷ٪Ƈ٪ȯƲȷɍdzɅ٪ȉnj٪ȉɍȯ٪dzȉǾǍعɅƲȯǼ٪ȬƇȯɅǾƲȯȷǕǛȬ٪ɦǛɅǕ٪vǍƜɅǛ٪ÝǕƜɅɍƇ٪™ȯƜǯƲǛ٪ƇǾƫ٪ƇȷǯǛǾǍ٪ɅǕƲǼ٪Ǖȉɦ٪ɦƲ٪
could help their efforts at an early stage in their development.
Culturally, ‘ira/dot’ ascribes ‘whakapapa’ - the foundation for inherent connectedness and interdependence to
Ƈdzdz٪ɅǕǛǾǍȷ٪njȯȉǼ٪ȉɍȯ٪ɅɟȬɍǾƇ٪ƫȉɦǾ٪Ʌȉ٪ɍȷؘ٪½ǕƲ٪ƤȉǾƤƲȬɅ٪ȉnj٪UȯƇ٪%ȉɅ٪ƇdzǛǍǾȷ٪ɦǛɅǕ٪ɅǕƲ٪ǾƇɅǛȉǾƇdz٪ǯƇɍȬƇȬƇ٪ن¤ȯȉɅƲƤɅ٪ɬȉɍȯ٪
ÝǕƇǯƇȬƇȬƇؙه٪Ǖȉɦ٪ɦƲ٪ƤƇǾ٪ɍǾǛɅƲ٪Ʌȉ٪ȬȯȉɅƲƤɅ٪ȉɍȯȷƲdzɥƲȷؙ٪ȉɍȯ٪ɦǕƜǾƇɍؙ٪ƇǾƫ٪ȉɍȯ٪ƤȉǼǼɍǾǛɅǛƲȷ٪ƇǍƇǛǾȷɅ٪ȉɥǛƫׇֿؘع
ɥƲȯ٪ɅǕƲ٪ȷɍǼǼƲȯ٪ɦƲ٪ǕƇƫ٪Ƈ٪njɍȯɅǕƲȯ٪ȉȬȬȉȯɅɍǾǛɅɬ٪Ʌȉ٪ɦȉȯǯ٪ƤdzȉȷƲdzɬ٪ɦǛɅǕ٪vǍƜɅǛ٪ÝǕƜɅɍƇ٪™ȯƜǯƲǛؙ٪ǕȉȷɅǛǾǍ٪Ƈ٪ǍȯȉɍȬ٪ȉnj٪
interns in a range of roles at our head office in a programme designed to provide a positive learning experience
and opportunity to contribute thoughts and ideas to various projects.
Looking after our people
through Covid-19 and more
Our ongoing response to Covid-19
has continued to evolve, focused
on safeguarding our ability to
continue serving our customers,
and ensuring our people are safe
and supported appropriately both
at work and home if necessary.
We have continued our proactive
risk management approach, and
business continuity planning,
to reduce the direct impact of
Covid-19 infection on our workforce.
This has included promoting and
facilitating access to vaccinations,
splitting critical operational teams,
contingency planning, Rapid
Vector Annual Report 202222
Our people and safety

16.3%
20-29
31.1%
30-39
23.3%
40-49
20.4%
50-59
8.3%
60+
0.7%
UNDER 20
EMPLOYEES BY AGE
36.3%
FEMALE
63.7%
MALE
0.0%
DIVERSE
EMPLOYEES BY GENDER
ڤוؘדה
ڤכؘהה
ڤגؘטה
ڤךؘז
ڤוؘז
ڤדؘט
ڤךؘהד
ڤךؘד
ASIAN
NZ EUROPEAN
NZ
t§U
OTHER
PASIFIKA
UNKNOWN
ڤוؘג
PREFER
NOT TO SAY
EUROPEAN
MELAA*
EMPLOYEES BY ETHNICITY
* Middle East, Latin America and Africa
sharper focus because of the
pressures created by Covid-19 and
more recently the rising cost of
living. We’ve developed a new,
comprehensive wellbeing strategy
with the assistance of external
workplace wellness and resilience
consultants Umbrella Wellbeing.
We ran a company-wide individual
wellbeing assessment programme
and provided a personalised report
to each employee. The consolidated
results have formed the basis of our
strategy and work plan. Through
this work we’ve identified areas
where our people tell us we are
generally meeting their needs, for
example psychological safety, and
areas where staff would like more
information, such as education
on financial wellbeing, healthy
eating, and managing stress. To
begin with, we developed a series
of financial wellbeing seminars
tailored to the differing needs of
our diverse workforce. These are
proving popular, with a session on
the economic challenges facing
vƲɦ٫íƲƇdzƇǾƫؙ٪ǕȉȷɅƲƫ٪ƣɬ٪
víىȷ٪ƤǕǛƲnj٪
economist, Sharon Zollner having
had particularly strong attendance
and engagement.
Notable changes in diversity statistics included a 0.7% increase in female representation across the Vector
group, an increase in employees identifying in the 50-59 age bracket (2.6%), and a decrease in the 20–29
ƇǍƲ٪ƣȯƇƤǯƲɅ٪ؘخڤׂؘ׀عح٪ÝƲ٪Ƈdzȷȉ٪ǾȉɅƲƫ٪Ƈ٪ƫƲƤȯƲƇȷƲ٪ǛǾ٪¤ƇȷǛnjǛǯƇ٪ׂؘ־عح٪خڤֿׂؘعح٪ƇǾƫ٪-ɍȯȉȬƲƇǾ٪خڤ׀ؘ־عح٪ví٪tƜȉȯǛ٪ؙخڤ
representation, and an increase in those identifying as Asian, by 1.7%.
“For us pay equity is about
doing the right thing by our
people. Achieving equity is
not a project with an end date
but an ongoing commitment
to uncovering what is
sometimes uncomfortable,
and taking action to correct.”
– Sarah Williams, Chief People and
Communications Officer
Recruitment, retention, and
development
Like most businesses we face tight
labour market conditions, particularly
where roles are in high demand such
as drivers, electricians, digital roles,
and some other corporate roles.
We are taking a range of steps to
respond to this pressure, tailored to
the specifics of the role type we are
recruiting for. For example, in our Gas
Trading business we have expanded
our candidate pool through the use
of smaller trucks, where drivers are
not required to hold a class 2 licence
(see Service Standards, page 32).
We operate a majority in-house
recruitment process, and see
efficiency benefits from that
approach including our recruiters
developing strong relationships with
sourcing channels specific to their
part of the business.
We’ve upskilled our people managers
around lifting their capabilities to
lead, inspire and develop their teams,
with all people managers completing
a “Managers Warrant of Fitness”
course. We are now underway with
plans for WOF 2.0, which will include
further development for people
managers on their role in promoting
wellbeing, managing mental health
in the workplace, and creating an
inclusive culture.
Health, safety and environment
To track our progress against our
safety goals, Vector continues to
measure safety performance across
the Group, including Lost Time
Injury Frequency Rate (LTIFR), Total
Recordable Injury Frequency Rate
(TRIFR) and High Potential Frequency
Rate (HPFR). Beyond tracking
progress, these measures are critical
for indicating which areas require
ongoing improvement.
In the past year we experienced a
77% decrease in LTIFR and a 36%
improvement in TRIFR across the
Group. The severity rate, which
measures the number of lost days
per one million hours worked,
decreased by 3%.
We’ve seen a sustained lift in reports
of near misses from across our
workforce. We consider this to be
positive as it indicates our people
feel comfortable and empowered to
raise concerns, and we are given the
opportunity to make improvements.
We investigate and learn from
all near-miss incidents with high
potential outcomes.
We’ve completed a comprehensive
review of our Health, Safety and
Environment Management System
(HSEMS), in consultation with our
workforce. As a result of this review,
we’ve implemented a number of
changes to our HSEMS, focused
around simplifying how this system
is used and ensuring it meets the
needs of our teams.
We remain focused on our critical
health and safety risks, our controls,
and on assuring our confidence in
those controls, and have retained
certification in ISO45001, ISO14001,
and NZS7901, all of which are key
health, safety and environmental
standards relevant for our businesses.
We continue to work proactively
to minimise risk of harm to our
people, our extended workforce,
and the public. We are collaborating
with other organisations and
implementing a number of measures
to further support lone workers in the
field and those in customer-facing
roles.
23
Environmental, Social and Governance

Improving resilience
Vector acknowledges the climate
change science underpinning a need
to plan for physical impacts to our
business from a changing climate
and an increase in extreme weather
conditions. We prioritise climate
risk as a strategic risk with Board
oversight (page 42).
This year, to update our
understanding of the physical risks
presented to our energy networks in
the Auckland region, Vector engaged
with the National Institute of Water
and Atmospheric Research (NIWA)],
and the University of Auckland. We
also acquired geographic information
system (GIS) maps with projected
climate change impacts through to
2100 to build capability to analyse
climate risk exposure. Our strategy
in response to the impacts from
extreme weather is set out in our
TCFD report, available on our website.
Helping the transition to a
low-carbon society
We advocate for solutions that give
consumers choice and control over
their energy use, and result in an
equitable transition to a low-carbon
economy. This year, the conclusion
of our smart EV charging trial (see
Insights From EV Smart Charging
Trial page 31) demonstrated the
benefit of controlled EV charging,
and that it can be done without
impacting the way consumers use
their EVs.
We have also advocated for careful
planning and industry involvement
for a managed transition from fossil
gas, where gas infrastructure owners,
including our gas distribution
business, face either a wind-down or
repurposing future for their assets.
A balanced transition, rather than
one that fails to plan sufficiently, is
most likely to meet the objectives
of government, customers, and gas
asset owners. Further details can be
found in the NZ Gas Infrastructure
Future Findings Report, which Vector
was a key contributor to, and which is
available on our website.
Energy
affordability and
decarbonisation
Access to affordable,
clean energy
We believe it’s important
to decarbonise our energy
system in the most efficient,
resilient and cost-effective
manner, and in a way that is
equitable for consumers. That
is why energy affordability is
a core component of Vector’s
Symphony strategy.
For example, this drives our
investment in building an
electricity network that is ready
for a low-carbon future (see
Electrification of Transport,
page 31), leveraging technology
and digital solutions which can
better optimise the electricity
distribution network and the
energy resources that are
connected to it. Doing this
significantly reduces the need
for physical asset installation
to meet increased demand for
electricity, and so helps to avoid
large costs to our customers.
Vector Annual Report 202224
Energy affordability and decarbonisation

Maturing our emissions
reduction strategy
This year, we developed a carbon
abatement cost curve to help achieve our
emissions reduction targets (Scope 1 and
2 excluding electricity distribution losses).
This includes reaching net carbon zero by
2030, as well as meeting a science-aligned
reduction target of 53.5% by 2030.
This important work identifies the
financial impact of potential carbon
reduction activity across Scope 1 and 2
emissions, using a carbon cost of $140 per
tCO
2
e, which aligns with Climate Change
Commission 2021 recommendations*, as a
comparative ‘do nothing’ cost.
Through this work, we identified that
approximately 6% of our Scope 1 and
2 emissions could be reduced while
saving money for the group, another
approximately 45% were close to cost
neutral, with the balance assessed as
being more complex to abate given the
availability of current alternatives. We
expect this curve to change yearly as
new technologies reach the market, new
business innovations are trialled, and as
the costs of the abatement strategies
change. This work informed our decision
to survey our gas network for leaks
annually instead of two-yearly, allowing us
to identify and suppress gas leaks faster,
reducing our Scope 1 emissions.
Abatement
Cost
$/tCO2e/year
Abatement
Potential
tCO2e
Reducing unnecessary diesel
generation through process
optimisation (implemented 2021)
Using mobile transformers as
opposed to diesel generators for multi
day upgrades (2022 trial successful)
Transition remaining light
vehicle fleet to EV (2020 - 2025)
Transition vans and utes to
electric (when available)
Quarterly gas pipeline surveying
Vector Headquarters to ‘6 Green Star’ building
(2023)
Annual gas pipeline
surveying (2022)
6-month gas pipeline
surveying (2024)
Transition to electric
trucks (when available)
SF؂
monitoring
Renewable Electricity
Certificates
Electric vaporisers for OnGas
Switching venting regulators
of gas meters to OPSO
Further work is required to
cost the remaining emissions
$0
$-1,000
$-2,000
$1,000
$2,000
Flaring natural gas during
meter commissioning
$140/
tCO2e
53.5%
Science
Aligned
Target
Reducing fugitive
emissions on our
gas network
A cross-functional group
of specialists from our
Sustainability and Gas
Distribution teams identified
that a large cause of emissions on Vector’s gas
distribution network is leaks found on routine surveys.
While below the New Zealand industry average, these
are small leaks that go undetected in between regular
survey cycles, leading to accumulated gas volume
escape. Having quantified the scale of emissions
attributable to these leaks, the team then worked
together to find solutions to reduce them. As a result
we have reduced our leakage survey cycle from two-
yearly to annually. This means that any leak found can
be assumed to have been leaking for an average of
six months instead of twelve if surveying were done
biannually. Reducing the time between surveys in
this way has a significant impact on overall fugitive
gas, as the leaks are found sooner, and there are also
corresponding public health and safety benefits.
Between FY20 and FY22, this resulted in a drop in
emissions by over 6,200 tCO
2
e.
6,200
tCO
2
e
avoided
* climatecommission.govt.nz/our-work/advice-togovernment-topic/inaia-tonu-nei-a-low-emissions-future-for-aotearoa/
25
Environmental, Social and Governance
Vector’s marginal carbon cost abatement curve. The x-axis corresponds to Vector’s total annual
emissions. Each bar details a carbon abating initiative where the thickness of the bar details
the carbon abated. The y-axis represents the cost, with negative values indicating cost savings.
Initiatives are ordered left to right, from most cost-saving to most expensive.

Our carbon footprint
Vector reports on its greenhouse
gas (GHG) emissions on an annual
basis and has been calculating its
carbon footprint since 2017. Vector’s
GHG inventory has been calculated
in accordance with the GHG Protocol
Corporate Standard and with
guidance from the GHG Protocol
Value Chain Standard. Our base year
for emissions reporting is 1 July 2019
to 30 June 2020. This is recalculated if
the inventory is affected by changes
that add up to at least 5%. These
changes can be structural (e.g.
acquisitions or divestments), changes
in the way the inventory is calculated,
or discovery of errors. The threshold
can be reached through cumulative
changes across multiple years. As
at 30 June 2022, the threshold for
changes requiring a recalculation
of our base-year emissions has not
been reached, however we have
voluntarily restated our FY20 base-
year and FY21 emissions to account
for the divestiture of Treescape,
which occurred during FY22.
In the year to 30 June 2022, our GHG
emissions were 1,513,447 tCO
2
e. This
is a reduction of 5.5% from FY21, and
16.5% from our base year in FY20.
Further details on our emissions by
Scope and category can be found in
Vector’s GHG Emissions Inventory
report, available on our website.
EMISSIONS TREND BY SCOPE IN TCO
2
E
EMISSIONS CATEGORY גהFãדהFãההFã
Change from
Fãגה٪ƣƇȷƲdzǛǾƲ
Scope 1זכהؙגה ٪גווؙכד כטטؙוהڤזדع
Scope 2כטגؙגז ٪גהחؙזו כוזؙווڤגה
Scope 3*ڤחؘטדع זךגؙוחזؙד ٪וכיؙיזחؙד זיכؙזחיؙד
Total Scope 1, 2, 3ڤחؘטדع יזזؙודחؙד וזטؙדגטؙד הךגؙהדךؙד
* A recalculation of Scope 3 was undertaken for FY20 and FY21 to remove emissions from Vector’s
investment in Treescape
16.5
%
reduction
in tCO
2
e
Carbon handprint
Our innovations, such as those we’re building with AWS
around new data platforms, have a key role in enabling
electrification. We believe the tools we are helping X
to develop will have a key role in enabling much more
renewable energy to be integrated with existing network
infrastructure, while keeping network costs more affordable.
These are part of our projects to reduce emissions outside
of our operational boundaries. These are part of our external
decarbonisation support, or ‘carbon handprint’, and are a
key way we can enable an affordable decarbonisation.
They are explained in more detail in our TCFD report,
available on vector.co.nz.
Vector Annual Report 202226
Energy affordability and decarbonisation

Business
segment
reports
Guided by our Symphony strategy,
our businesses deliver for our
customers and shareholders
while advancing our ambitions
around decarbonisation and the
transformation of the energy sector.
27

Revenue
Revenue increased 8.3% to $831.5
million, due to higher pass-through,
recoveries and connection growth,
Loss Rental Rebates received and
an increase in capital contributions,
up 24.1% to $150.3 million. The
increase in capital contributions
reflects continued connection
growth and a policy where we seek
100% contribution for electricity
and gas connections. In addition,
we introduced a development
charge during the period, where
new connections need to make a
contribution towards the capital
investment we make in the electricity
infrastructure that supports overall
network growth.
Continued electricity
ƤȉǾǾƲƤɅǛȉǾ٫ǍȯȉɦɅǕ
We added 13,538 new electricity
connections in the year, down from
14,995 in the prior year. We also
added 3,146 new gas connections,
down from 3,844 a year earlier.
Total electricity connections stood
at 600,112, up 1.6% from 590,799 in
the prior year. Total gas connections
were 117,995, up 1.3% from 116,472 a
year ago.
Both electricity and gas volumes
have been impacted by Covid-19.
Volumes transported across the
electricity network increased 0.4%
to 8,361 GWh from 8,325 GWh in the
prior year, with higher residential
volumes partially offset by lower
business volumes. Auckland gas
distribution volumes were down 7.1%
at 13.1 PJ from 14.1 PJ a year earlier.
Regulated
networks
Total electricity
connections increased
to 600,112.
1.6
%
increase
Vector Annual Report 202228
Regulated networks

Gas transition
We’re continuing to engage with
government and other parties on
vƲɦ٫íƲƇdzƇǾƫىȷ٪ǍƇȷ٪ɅȯƇǾȷǛɅǛȉǾ٪حȷƲƲ٪
Climate Policy, page 16). It’s critical
that the transition away from fossil
gas is smooth, and equitable for
consumers, and asset owners,
while achieving government
objectives. There are significant
costs involved, which could reach
as high as $5.3 billion to consumers
and business under the Climate
Change Commission’s demonstration
transition pathway.
Maintaining customer focus
Network performance has remained
within key regulatory SAIDI and SAIFI
limits, and we have delivered steady
progress improving our customer
connection time frames. We’re proud
of these achievements, especially
as we, and our customers, were
impacted by a number of extreme
weather events during the year,
including a destructive tornado in
Papatoetoe, and Cyclone Dovi.
Throughout the prolonged Covid-
19-related Auckland lockdown we
adapted rapidly and repeatedly, as
the situation evolved. Our initial focus
was on minimising disruption for
Aucklanders working and schooling
from home. Then, as lockdown
restrictions began to ease, we
carefully introduced more proactive
maintenance work back into our
schedule in advance of an important
summer trading period for the retail
and hospitality sectors. During
this time we also began detailed
planning for an increase in workforce
absences due to Covid-19 infection
or isolation requirements. Like many
businesses, we continue to feel the
effects of Covid-19 on our workforce,
however we have successfully
maintained our work programmes
through careful planning.
As always, and in particular through
this pandemic, we thank our staff and
our Field Service Providers for their
dedication to serving our customers.
Input Methodology review
As mentioned in the Chair and CEO
report, the Commerce Commission
is reviewing the Input Methodologies
(IMs) that underpin the way the
energy sector is regulated. This
review comes at a critical time to
ensure these settings are fit for
purpose and properly support the
transition to a net-zero economy.
Vector is advocating the review needs
to focus squarely on the implications
of the Government’s decarbonisation
goals for the energy sector and be
approached with a significantly
higher level of engagement between
the Commerce Commission
and industry.
Investing for Auckland now and
in the future
Gross regulated capital expenditure
increased by 4.7% to $331.9 million
compared to $316.9 million a
year earlier. Capex net of capital
contributions was 7.3% lower than
the prior year at $181.6 million.
However, 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. This amount of investment
ƲȮɍƇɅƲȷ٪Ʌȉ٪ƇdzǼȉȷɅ٪٫ֿٳǼǛdzdzǛȉǾ٪ȬƲȯ٪ƫƇɬؙ٪
with a significant portion dedicated
to building an electricity network
that is ready for the demands of the
future, ensures Auckland has what
it needs now to continue growing,
and to support major changes to our
transport and energy systems driven
by decarbonisation.
Over the past year that investment
has included key projects to reinforce
and support growth and resilience,
such as switchboard extensions
and upgrades in our critical CBD
substations, future-proofing supply
to the wider Warkworth area by
laying ducting for a new cable, and
projects to reinforce supply in key
areas like Hauraki and Hobsonville.

We’re also working closely with
gƜǛǾǍƇ٪ȯƇ٪Ʌȉ٪ƣƲɅɅƲȯ٪ɍǾƫƲȯȷɅƇǾƫ٪ƇǾƫ٪
support future development plans for
the region.
Progress has also continued on
deployment of an Advanced
Distribution Management System,
which will enhance our ability to
monitor and control our electricity
distribution network, which is vitally
important as the network grows
and becomes more complex, and
the climate continues to change.
This system leverages the benefits
of cloud technology for security,
resilience and cost efficiencies, and
will support new demands placed on
the network in the future.
Cost and inflation challenges
The regulatory business has also seen
the impact of high and sustained
inflationary pressure partially driven
by supply chain challenges. Within
the regulatory framework, the higher
inflation drives an increase to our
costs, which has a flow-through
effect on our ability to undertake
projects across the group to remain
within the capital and operating cost
regulatory allowances. The regulatory
mechanisms also allow us to increase
our prices by CPI with the recent
increases in CPI to be reflected with a
rise in prices from 1 April 2024.
Trialling a cleaner way to keep the power on
Some of our maintenance projects require diesel generators
to be running to ensure power can stay on for customers
while we do the work. This can be disruptive for residents
and contributes to our Scope 1 carbon emissions.
This year we’ve begun trialling the use of mobile
transformers to supply power instead. This works by
temporarily routing the area’s power supply through the
mobile transformer, rather than isolating the section from
the distribution network and providing power by generation.
Our trials have shown positive results in achieving a
reduction in carbon emissions and costs, and less disruption
for our customers, and this technique is now set to enter
our standard planning processes. This demonstrates
Vector’s commitment to delivering for our customers, while
taking steps to reduce carbon emissions and contribute to
affordability. The first two trials have saved an estimated
154 tCO
2
e, calculated using load monitoring meters.
154
tCO
2
e saved
29
Business segment reports

Ensuring an affordable
electrification
We are working closely with
Auckland Transport and other key
stakeholders to enable this shift in a
way that’s affordable and equitable
for all our customers. This means
ensuring the right incentives are in
place for smart charging, enabled by
integrating our Distributed Energy
Resources Management System
with charging infrastructure, and
through close analysis of existing
network capacity to accommodate
new charging infrastructure in
optimal locations for efficient
capital investment.
Opening the doors on data
This year has seen the beginnings
of a step change in the availability
of valuable data that we can use
to accelerate the digitalisation of
the electricity network, which is
a foundation for advancements
and innovation in planning and
operational capabilities that will
enable us to better serve our
customers. We are leading the way
for the industry, working proactively
and constructively with the
Electricity Authority and metering
providers. We have developed a
template data request that ensures
appropriate data privacy protections
are in place. Using this template we
have successfully contracted with
retailers for regular provision of smart
data covering more than 90% of our
network. This data complements our
own network data and allows us to
plan and understand overall network
performance in greater detail.
Engaging with government and
industry for the future
Throughout the year we’ve engaged
proactively with government and
regulators on the challenges facing
our industry, from climate change,
to technology and digital innovation,
and cyber security. We do this
because we want to work through
these highly complex issues together,
to realise the best outcomes
for consumers, government,
and shareholders.
Underpinning new layers of critical
infrastructure
Data centres are fast becoming an essential layer of
modern infrastructure, providing high-speed data
connectivity, security, and sovereignty. Each new
data centre needs a significant electricity supply, at
a level roughly equivalent to a new distribution zone
substation, and Vector is involved in several projects to
deliver the secure, highly reliable power supply required.
We are working closely with CDC Data Centres on two
new hyperscale data centres located in Auckland, both
of which are now online.
½ǕƲȷƲ٪ȬȯȉǬƲƤɅȷ٪ƲǾƇƣdzƲ٪vƲɦ٫íƲƇdzƇǾƫ٪Ʌȉ٪ȷƲƤɍȯƲ٪ɅǕƲ٪
benefits that come with having local data centres
to boost business performance, and consumer
connectivity speeds, and demonstrate the criticality of
the infrastructure we provide in supporting important
growth and development across Auckland.
Vector Annual Report 202230
Regulated networks

“Networks must internalise the
complexity for customers while
still delivering stability, reliability,
at a fair price. Customers don’t buy
electricity; they buy light and heat.
So simplicity, making it easy, and
showing value are really important.”
ػ٪
ɍƫȯƲɬ٪íǛƣƲdzǼƇǾؙ٪ÜǛƤƲ٪¤ȯƲȷǛƫƲǾɅؙ
X’s moonshot for the electricity grid
The electrification of transport
has begun in earnest. Consumer
uptake of EVs is increasing,
alongside government incentives
and continued development in
public charging infrastructure.
Auckland Council has committed
that buses purchased from 2025
will be non-carbon emitting,
and multiple parties have made
announcements concerning
electric ferries for Auckland. All of
this will drive increasing demand
for electricity, and we are working
at a strategic level to ensure
the electrification of transport
is carried out in the smartest
possible way, to avoid pressure
on electricity demand peaks.
Insights from EV smart
charging trial
This year, we concluded a two-year
research project following nearly
200 EV drivers in the Auckland
region examining how they charged
their car, the impact this had on
the local electricity network, and
what technology could be used to
lessen that impact. The successful
trial showed the value of controlling
EV charging on overall electricity
network efficiency, as well as
demonstrating clearly that this can
be done without affecting the way
people use their EVs. In addition
triallists recognised the wider
benefits from this approach,
such as more affordable future
infrastructure cost for all consumers,
not just those with EVs.
This comprehensive project fills
some gaps in international research
and we have shared our findings
with key government stakeholders
ǛǾ٪vƲɦ٫íƲƇdzƇǾƫؙ٪Ƈȷ٪ɦƲdzdz٪Ƈȷ٪ɦǛɅǕ٪
countries around the globe, as we all
grapple with the same challenges
around transport electrification and
decarbonisation.
The success of this trial underscores
Vector’s support and advocacy
for smart, digital solutions like
this that benefit networks and
their customers, and which will
ultimately lead to a more affordable
electrification of transport.
Electrification of transport
31
Business segment reports

Service standards
With labour market conditions
remaining tight, in the second half
of 2021 we deployed staff from our
HRV business temporarily to help
with customer deliveries during
a challenging period. Since then,
we’ve made a number of changes
to better enable us to meet our
service standards, and have been
successful in doing so. One of the
ways we achieved this was through
redeveloping some of our delivery
schedules around the use of smaller
trucks, where drivers are not required
to hold a class 2 licence. This means
a wider pool of drivers is available,
while delivery efficiencies can be
maintained, particularly in densely
populated markets such as Auckland
and other metropolitan areas.
Volumes
Bulk and cylinder volumes were
lower compared to the prior year.
Total LPG sales were down 1.6% at
44,330 tonnes.
Bottle Swap 9kg volumes were
down 7.4% to 629,651 bottles from
680,099 a year earlier. This decline is
partly attributable to the impact of
Covid-19 as well as the loss of a major
customer from December 2021.
Liquigas LPG tolling volumes were up
10.3% to 112,913 tonnes from 102,351
tonnes in FY21.
Natural gas sales volumes were down
3.3 PJ to 5.3 PJ from 8.6 PJ in the prior
period mainly due to the loss of a
major customer from July 2021.
Challenging international
conditions
Challenges we reported on last year
around local supply constraints and
Covid-19 import delays have been
further compounded this year due
to several factors. This included a
significant rise in the price of LPG
(which is linked to the international
price of oil), costs associated with
our obligations under the ETS, and
foreign exchange pressures.
In the face of these headwinds we’ve
been proactive in managing our
internal costs while also evaluating
our pricing to customers. We’ve
mitigated some of the impact of price
increases to ensure we’re operating
as efficiently as possible while
maintaining high safety standards.
It has not been feasible to pass on all
costs to our customers.
The increases in the cost of LPG have
adversely impacted the profitability
of the business, and, along with the
impact of the increase in discount
rates as at 30 June 2022, these factors
have led to a $40.2 million non-cash
goodwill impairment in the carrying
value of investment.
Gas trading
Vector Annual Report 202232
Gas trading

Our programme to upgrade 1.1 million
meters with 4G modems continued
ɅǕǛȷ٪ɬƲƇȯ٪ƇƤȯȉȷȷ٪vƲɦ٫íƲƇdzƇǾƫؘ٪ÝƲ٪ƇȯƲ٪
meeting our programme targets with
almost 200,000 modems replaced
to date, ahead of the anticipated
shut down of the current 2G mobile
ǾƲɅɦȉȯǯ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫؘ٪½ǕǛȷ٪
programme enables us to continue
providing our customers with the
data services they need over a
modern network, and to further
develop our product and service
offerings with new and innovative
solutions, leveraging the faster
connectivity speeds and greater
capacity to work with large quantities
ȉnj٫ƫƇɅƇؘ٪
We’ve accelerated the roll-out of
advanced gas meters on behalf of
Genesis. This 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.
In the last year we deployed 10,599
advanced gas meters.
Capital investment
Total metering capex invested
was 3.9% lower than for FY21 at
$156.7m, due to the lower level of
advanced meter deployment in the
period partially offset by increased
expenditure for the 4G modem
replacement programme.
Innovation in data services
The energy sector is increasingly
looking to innovative smart meter
data services as a critical part of its
transformation and digitalisation
journeys. Vector Metering has been
actively involved in helping unlock
this data for key parts of the sector.
We’re providing key energy
consumption data to several
electricity distribution businesses in
vƲɦ٫íƲƇdzƇǾƫؙ٪ƇǾƫ٪ƇȯƲ٪ǛǾɥƲȷɅǛǍƇɅǛǾǍ٪
the provision of other relevant data
collected by smart meters, such
as power quality data. This type of
data has traditionally not been used
but can be extremely valuable to
distribution businesses seeking more
granular data for network planning
purposes, and who are looking to
enable innovation at the customer
level. We are actively investigating
the provision of this data in
vƲɦ٫íƲƇdzƇǾƫ٪ƇǾƫ٪
ɍȷɅȯƇdzǛƇؙ٪ɅƇǛdzȉȯǛǾǍ٪
our offering to the requirements of
each market.
Enabling customer innovation
Our metering technology can enable
smart hot water load control at a
household level, rather than at a
network level which has been the
ɅȯƇƫǛɅǛȉǾƇdz٪ƇȬȬȯȉƇƤǕ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫؘ٪
This provides our customers with a
solution that opens up consumer
access to the potential for multiple
service offerings, ranging from
traditional network control over hot
water load management, to Virtual
Power Plant aggregation.
Looking ahead
As we detailed earlier, we are
conducting a strategic review of
Vector Metering to assess options
for the next phase of growth for this
successful business (see The Next
Chapter for Vector Metering,
page 15).
Revenue
Metering revenue increased 3.8% to
$235.6 million from $227 million a
year earlier driven by the growth in
deployment of advanced meters.
Fleet
Our advanced metering business
continues to lead from the front,
helping retailers to better manage
their businesses and respond to
customers’ needs. We continue to
see the Australian market as offering
significant opportunity, particularly
in the context of regulatory changes
that support wide deployment of
advanced meters. In the year to
٫־ׁeɍǾƲ٪׀׀־׀٪ɦƲ٪ǕƇɥƲ٪ǛǾȷɅƇdzdzƲƫ٪ƇǾƫ٪
billed 18,053 additional advanced
ǼƲɅƲȯȷ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫ٪ƇǾƫ٪ׇׁׁׁׂؙ٪
additional advanced meters in
Australia. The level of deployment
in New Zealand and Australia has
been disrupted by Covid-19 and
some extreme weather events in
NSW and Queensland. Our advanced
electricity meter base grew 6.5%
to 1.98 million from 1.86 million the
year before. We have now deployed
nearly 490,000 advanced meters
in Australia. Throughout these
deployments our health and safety
record has continued to be strong, an
achievement we are very proud of.
Progress against multi-year
ɦȉȯǯ٫ȬdzƇǾȷ

Ƥȯȉȷȷ٪ȉɍȯ٪vƲɦ٫íƲƇdzƇǾƫ٪ƇǾƫ٪
Australian markets we’re continuing
to focus on providing innovative
smart meter data services from 2.3
million electricity and gas meters.
Metering
33
Business segment reports

This section of the annual report is an overview of Vector’s
corporate governance framework, approved by the Board,
njȉȯ٪ɅǕƲ٪ ̊ǾƇǾƤǛƇdz٪ɬƲƇȯ٪ƲǾƫƲƫ٪־ׁ٪eɍǾƲ٪ؘ׀׀־׀
Vector’s governance practices are
informed by the NZX Listing Rules
(NZX Rules), the NZX Corporate
Governance Code (2020) (NZX Code),
the Financial Markets Conduct Act
2013 and the Companies Act 1993.
Vector’s governance practices are
consistent with the principles in the
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.
Vector’s key corporate governance
documents, including board and
committee charters and policies,
can be found at www.vector.co.nz/
investors/governance.
Roles and responsibilities of the
Board and management
The primary objective of the Board is
to protect and enhance the value of
Vector in the interests of Vector and
its shareholders.
The Board has overall responsibility
for all decision making within Vector.
Vector’s governance practices are
designed to:
ؽenable the Board to provide
strategic guidance for Vector
and effective oversight of
management;
ؽclarify the roles and
responsibilities of Vector’s
directors and senior executives
in order to facilitate Board and
management accountability to
both Vector and our shareholders;
and
ؽensure a balance of authority
so that no single individual has
unfettered powers.
To ensure that Vector’s business
objectives and strategies are
achieved and to deliver value to
the company and its shareholders,
the Board strives to understand,
meet and appropriately balance the
expectations of all its stakeholders,
including its employees, customers
and the wider community.
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:
ؽBe a leading commercial
enterprise with a reputation for
delivering results through sound
strategy;
ؽHave entrepreneurial agility,
being the first to identify
opportunities and bring them to
market;
ؽBe a great employer which values
knowledge and talent;
ؽStrive to ensure that everyone
who does work for Vector, goes
home healthy and safe;
ؽDeal fairly and honestly with its
customers; and
ؽBe a good corporate citizen.
Governance
report
Vector Annual Report 202234

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.
Vector achieves board and
management accountability
principally through its Board charter,
which sets out (amongst other
things) matters reserved for the
Board and responsibilities delegated
to the Group Chief Executive, and
a formal delegation of authority
framework. The effect of this
framework is that, whilst the Board
has statutory responsibility for the
activities of the company, this is
exercised through the delegation
to the Group Chief Executive, who
is accountable for the day-to-day
leadership and management of
the company. The framework also
reserves certain matters for the
decision of the Board.
The Board charter sets out the
expectation that all directors
continuously educate themselves to
ensure that they may appropriately
and effectively perform their duties.
The main functions of the Board
include:
ؽReviewing and approving the
strategic, business and financial
plans prepared by management;
ؽMonitoring performance against
the strategic, business and
financial plans;
ؽAppointing, delegating to and
reviewing the performance of the
Group Chief Executive;
ؽApproving major investments and
divestments;
ؽEnsuring ethical behaviour by the
company, Board, management
and employees; and
ؽAssessing its own effectiveness in
carrying out its functions.
A committee or individual director
may engage separate independent
professional advice in certain
situations, at the expense of the
company, subject to first obtaining
the approval of the chair of the
board. The Board also has access to
Executives within the Vector Group
as a means of receiving assurance
information.
Each director has a duty to act in the
best interests of the company and the
directors are aware of their collective
and individual responsibilities to
stakeholders for the manner in
which Vector’s affairs are managed,
controlled and operated.
The Board ensures that there is
appropriate training available to all
directors to enable them to remain
current on how best to discharge
their responsibilities and keep up to
date on changes and trends in areas
relevant to their work.
The Board regularly assesses its
effectiveness in carrying out its
functions and responsibilities. The
Board Chair leads the review and
evaluation of the Board as a whole,
and of the Board Committees,
against their respective charters.
The Board Chair also engages with
individual directors to evaluate
and discuss performance and
professional development. An
externally facilitated review of the
Board’s performance was conducted
this year and the next review is
scheduled for FY24.
The Group Chief Executive is
supported by the Vector executive
team. Details of the members of the
executive team are set out on pages
48 and 49 of this annual report and
in the About Us section of Vector’s
website (www.vector.co.nz/about-us/
board-executive-team). Members
of the Vector executive team have
access to the Board from time
to time.
Board membership
Vector’s Board comprises
experienced directors from diverse
backgrounds and who govern
the company on behalf of its
shareholders and other stakeholders.
½ǕƲ٫ƫǛȯƲƤɅȉȯȷ٪ƇȯƲ٪ƤȉǼǼǛɅɅƲƫ٪Ʌȉ٪
maintaining high standards of
corporate governance, ensuring
transparency and fairness and
recognising the interests of our
stakeholders.
Vector’s Constitution and the NZX
Rules set certain requirements in
relation to the Board structure. The
Board must have a minimum of three
and a maximum of nine directors,
with at least two being ordinarily
ȯƲȷǛƫƲǾɅ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫؘ٪
The Board comprises seven
directors, all of whom are non-
executive. Biographies are set out
on pages 46 and 47 of this report
and include information on the year
of appointment, skills, experience
and background of each director.
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. The Board looks to
strengthen its oversight of issues
in all disciplines, as required,
ɥǛƇ٫ƲɫȬƲȯɅ٫ƇƫɥǛƤƲؘ
Board skills and experience
Energy sector
Next generation customer experience
Physical infrastructure
Beyond digital transformation
Senior commercial leadership
Health Safety and environment leadership
Stakeholder engagement / insight
Partnerships
Market insight NZ
Market insight Aus
Government and regulation
Financial expertise
People and culture
Governance (NZX)
0
1234567
High competencePractical experience
35
Governance report

The members and chairs of each committee are:
COMMITTEEMEMBERS
Audit CommitteeAnne Urlwin (Chair)
Paula Rebstock
Alastair Bell
Tony Carter
Jonathan Mason
Bruce Turner
Nominations CommitteeTony Carter (Chair)
Alastair Bell
Paul Hutchison
Jonathan Mason
Paula Rebstock
Anne Urlwin
Bruce Turner
People and Remuneration CommitteePaula Rebstock (Chair)
Tony Carter
Alastair Bell
Paul Hutchison
Jonathan Mason
Risk and Assurance CommitteeBruce Turner (Chair)
Paul Hutchison
Jonathan Mason
Paula Rebstock
Anne Urlwin
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
Jonathan Mason who is Vector’s
Chair, Dame Paula Rebstock who
is Deputy Chair, Tony Carter, Bruce
Turner and Anne Urlwin. Dr Paul
Hutchison and Alastair Bell represent
Vector’s majority shareholder Entrust,
and are therefore not independent
directors. Directors are required
to inform the Board of all relevant
information which may affect
their independence.
The Nominations Committee is
responsible for assessing director
independence on an ongoing basis.
Only independent directors are
eligible to be the Board Chair. The
roles of Board Chair, Audit Committee
Chair, Risk and Assurance Committee
Chair and Group Chief Executive are
each held by different people.
Ownership of Vector shares by
directors is encouraged but is not a
requirement. Directors’ ownership
interests are listed on page 119 of this
annual report.
The Board recognises that a regular
refreshment programme leads to the
introduction of new perspectives,
skills, attributes and experience.
Director period of appointment
וعג٪ɬƲƇȯȷ כعו٪ɬƲƇȯȷ כ٪ɬƲƇȯȷ٪ڋ
Number of
directorsדוו
Board committees
There are currently four Board
committees: an Audit Committee,
a Nominations Committee, a People
and Remuneration Committee and
a Risk and Assurance Committee.
Members of each committee are
appointed by the Board. Each
committee has a written charter
that is approved by the Board and
sets out its mandate. The charters
are reviewed at least every two
years, with any proposed changes
recommended to the Board for
approval. All charters are available on
Vector’s website.
The Company Secretary has
unfettered access to the Chairs of
the Board, the Audit Committee, and
Risk and Assurance Committee.
Vector Annual Report 202236
Governance report

Audit Committee
The purpose of the Audit Committee
is to assist the Board in its oversight
of the quality and integrity of Vector’s
external financial reporting, the
independence and performance
of the external auditors, and
effectiveness of internal control
system for financial reporting and
accounting records.
The Audit Committee provides a
formal forum for communication
between the Board and the external
auditors, ensures the independence
of the external auditors, has oversight
of audit planning, reviews and
recommends audit fees, considers
audit opinions and evaluates the
performance of the external auditors.
Oversight of the company’s external
audit arrangements to safeguard
the integrity of financial reporting
is the responsibility of the Audit
Committee. Included within the
Audit Committee’s responsibilities
set out in its charter is the
requirement to ensure that audit
independence is maintained, both in
fact and appearance.
The NZX Rules and the Audit
Committee’s charter require that the
Audit Committee must comprise
not less than three members, being
directors of Vector, at least one
of whom must have an adequate
accounting or financial background
and the majority of whom are
acknowledged as independent by
the Board pursuant to its charter.
The chair shall be an independent
Director and shall not be the Chair of
the Board.
All members of the Audit
Committee have specialist financial
skills and experience.
The Group Chief Executive and
the Chief Financial Officer have a
standing invitation to attend Audit
Committee meetings.
Risk and Assurance Committee
The purpose of the Risk and
Assurance Committee is to assist the
Board in fulfilling its responsibilities to
protect the interests of shareholders,
customers, employees and the
communities in which Vector
operates through overseeing Vector’s
risk management framework and
processes for internal control.
The Risk and Assurance Committee
Charter requires this committee
to comprise not less than three
members, being directors of Vector.
Only committee members attend
meetings unless an invitation is
extended to other directors, the Group
Chief Executive, management and/or
other guests.
People and Remuneration
Committee
The purpose of the People and
Remuneration Committee is to
assist the Board in overseeing
the appointment, performance
and remuneration of the Group
Chief Executive and members
of the executive team (including
succession planning) and reviewing
and monitoring the Remuneration
Policy. Evaluations are based on
criteria that include the performance
of Vector and the accomplishment
of strategic objectives. In addition,
this committee oversees Vector’s
people and culture strategy
including attraction, retention,
wellbeing, succession planning and
talent development.
The People and Remuneration
Committee’s charter requires this
committee to comprise not less than
three members, being directors of
Vector, a majority of whom shall be
independent directors.
The Group Chief Executive may
be invited to attend meetings by
the People and Remuneration
Committee Chair from time to time.
Attendance at meetings
Attendance records of Board and committee meetings are provided in the table below.
COMMITTEEFULL BOARD
AUDIT
COMMITTEE
RISK AND
ASSURANCE
COMMITTEE
PEOPLE AND
REMUNERATION
COMMITTEE
NOMINATIONS
COMMITTEEAGM
TOTAL MEETINGS1485311
A Bell 1481
†
311
M Buczkowski*111
A Carter1471
†
311
P Hutchison**93
†
22
J Mason (Chair)1485311
P Rebstock148531
B Turner14851
†
11
A Urlwin***13741
†
1
* Michael Buczkowski ceased to be a director on 29 September 2021.
† Director attending the committee meeting who is not a member of the committee.
** Appointed on 8 December 2021.
*** Appointed on 1 September 2021.
Nominations Committee
The Board is responsible for
appointing directors. The Board
seeks diversity in the skills, attributes,
perspectives and experience of its
members across a broad range of
criteria. The Board has a Nominations
Committee, the purpose of which
is to assist the Board in fulfilling its
responsibility to have an efficient
mechanism for examination of the
selection and appointment practices
of the company.
The Nominations Committee’s
responsibilities broadly include
management of the appointment
process for new directors and the
re-election of existing directors and
is also responsible for coordinating
director appointments with Entrust,
consistent with Entrust’s rights under
the Vector Constitution.
The Nominations Committee also
has responsibility for reviewing
the Board’s composition and
succession plans; recommending
procedures for the regular review of
the performance of the Board and
committees; making determinations
as to the independence status of
all directors; and ensuring there
is an appropriate induction and
education programme.
All new directors enter into a written
agreement with Vector, which sets
out the terms of their appointment.
The Nominations Committee’s
charter requires that the Nominations
Committee shall comprise not less
than three members, being directors
of Vector, a majority of whom shall be
independent directors.
An invitation may be extended to
non-committee member directors,
the Group Chief Executive and/or
management to attend meetings of
this committee.
37
Governance report

External auditor
The role of the external auditor is
to audit the financial statements
of the company in accordance
with applicable auditing standards
ǛǾ٪vƲɦ٫íƲƇdzƇǾƫ٪ƇǾƫ٪Ʌȉ٪ȯƲȬȉȯɅ٪
on its findings to the Board and
shareholders of the company.
The effectiveness, performance
and independence of the external
auditor is reviewed annually by the
Audit Committee. The Board, after
considering the recommendations of
the Audit Committee, considers and
reviews the appointment of external
auditors. The Board requires the
rotation of the audit partner for the
statutory audit after no more than
five years. 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.
All services provided by KPMG are
considered on a case-by-case basis
by the Audit Committee to ensure
there is no actual or perceived threat
to independence in accordance with
the policy. The Audit Partner and
Assurance Partner have provided
the Audit Committee with written
confirmation that, in their view, they
were able to operate independently
during the year.
KPMG has provided the Board
with the required independence
declaration for the financial year
ended 30 June 2022.
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. Fees paid
to KPMG are included in Note 7 of
the notes to the financial statements
contained on page 73 of this
annual report.
KPMG was paid $1.3m for services
in the financial year to 30 June 2022.
Of this sum, $1.1m was for audit-
related services and $0.2m was for
non-audit-related services. Non-
audit work did not exceed 25% of the
amount paid for audit work. Further
detail is provided on page 73 of this
annual report.
The auditor is regularly
invited to meet with the Audit
Committee including without
management present.
The auditor has been invited to
attend the Annual Shareholders’
Meeting and will be available to
answer questions about the audit
process and the independence of
the auditor.
Risk management
Vector recognises that rigorous risk
and opportunity management is
essential for corporate stability, high
performance and ultimately the
success of our strategic objectives
and vision. To drive sustainable
growth and ensure operational
resilience, it is important to
anticipate risks to our business 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 International Standard “AS/NZS
ISO 31000:2018 Risk Management
Guidelines”. Vector’s risk
management processes and tools
are embedded within its business
operations to drive consistent,
effective and accountable decision-
making.
Consistent with the “Three Lines
Model”, all Vector people are
responsible for applying Vector’s ERM
framework within their individual
roles to proactively identify, analyse,
evaluate and treat risks. This risk
mindset has been implemented
through:
ؽAwareness of risk management’s
value at operational, executive
team and Board level;
ؽEmbedding of risk assessments
and discussions within key
decision making processes;
ؽIntegration of specialised risk
partners throughout the business;
and
ؽContinuous development through
both internal and external reviews.
Vector continues to review and
mature its ERM framework to reflect
the evolving context within which we
work. We engage external advisors
to assist in incorporating the latest
developments in risk management
and to reflect the current
operating environment.
The Board is responsible for ensuring
that key strategic, operational, and
financial risks are identified, and that
appropriate controls and procedures
are in place to effectively manage
those risks. The Risk and Assurance
Committee has overall responsibility
for ensuring that the company’s
risk management framework
and processes are fit for purpose
and effective, such that risks are
appropriately identified, considered,
and managed against Vector’s
objectives and strategic vision.
Spanning across Vector’s portfolio
of businesses, Vector’s Group Risk
function is tasked with the ongoing
development and implementation
of the ERM framework and risk
processes. In addition to monitoring
the changing business landscape
and macro-economic trends, this
function integrates and works with
all Vector business units to facilitate
smart risk based decision making as
well as consistent risk analysis and
the evaluation of risk against Vector’s
risk appetite. These perspectives
inform the development of the Group
Key Risk Profile which provides both
the Board and executive team with a
consolidated view of:
1. the strategically focused risks
which could have a significant
impact on the long term value
and sustainability of Vector’s
business; and
2. the material operational risks
facing Vector as part of its
business as usual activities
which require significant
oversight and control.
Health and Safety
Vector is committed to conducting
its business activities in such a
way as to protect the health and
safety of all workers of Vector and
its related companies, the public
and visitors in its work environment.
Vector is committed to continual
and progressive improvement in its
health and safety performance. Page
23 of this annual report contains
Vector’s performance in these areas,
including its Total Recordable Injury
Frequency Rate (TRIFR) and Lost
Time Injury Frequency Rate (LTIFR).
The Board has delegated day-to-day
responsibility for the implementation
of health and safety standards and
practices to management.
The Board is committed to providing
effective resources and systems
at all levels of the organisation
to fulfil its commitment to
employees, customers, shareholders
and stakeholders.
Vector’s commitments and
requirements for health and safety
are set out in the Health and
Safety Policy.
Vector Annual Report 202238
Governance report

Internal audit
Vector’s internal audit function
is overseen by the Risk and
Assurance Committee, and the
Audit Committee, and provides
independent and objective
assurance on the effectiveness of
governance, risk management and
internal controls across 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
Directors and employees are
expected to act legally, ethically,
responsibly and with integrity in a
manner consistent with Vector’s
policies, procedures and values.
The Code of Conduct and Ethics
covers a wide range of areas and
provides guidance regarding
personal integrity, business integrity,
customers and society, people, and
assets and information and outlines
the responsibilities of Vector’s
people and explains the standards of
conduct and ethics.
The Group Chief Executive gives
these opening remarks in the Code:
The message in this Code of Conduct
& Ethics is a simple one – the highest
standards of ethics, integrity and
safety are fundamental to the way
we work with one another and
how we do business. Despite the
simplicity of this message, a lot of
effort has gone into formulating this
code. We publish it for a reason and
I can’t emphasise strongly enough
how important it is as a document
and expression of our values. It is
the touchstone for what we feel
most strongly about at Vector, and
what we expect of those who work
for and with us, for the benefit
of our customers, stakeholders,
and the communities in which we
do business.
Please take the time to read and
understand our code and, as you go
about your work for Vector, use it to
guide your actions and decisions.
If you are ever in doubt about how
the code might apply to a situation,
you should contact your manager,
HR or a member of the Legal team
for advice.
On behalf of the senior leadership
team, as a Vector employee you can
rely on our support should you ever
feel the need to speak up against
behaviour inconsistent with this
code or Vector’s values. This is what
we stand for.
The procedure for advising the
company of a suspected breach is
set out in the Whistleblower Policy.
People at Vector have a range of
options to speak up if they notice
something that’s not right, including
raising a concern with a relevant
manager. These options include
in person, by phone, email, post,
online form and all options can be
done anonymously.
A comprehensive set of policies has
been put in place to assist directors,
staff and contractors to act and
make decisions in an ethical and
responsible manner.
The Board has implemented formal
procedures to handle trading in
Vector’s securities by directors and
employees of Vector in the Securities
Trading Policy, with approval from
the Company Secretary (on behalf of
the company) being required before
trading can occur. The fundamental
rule in the policy is that trading with
insider information is prohibited at all
times. The requirements of the policy
are separate from, and in addition
to, the legal prohibitions on insider
ɅȯƇƫǛǾǍ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫؘ
The policy provides that shares
may not be traded at any time by
any individual holding “material
information” (as defined in the NZX
Rules). A blackout period is imposed
for all directors, senior officers and
certain other people between the
day before the end of the half year
and full year balance dates and the
day after the release to NZX of the
result for that period.
39
Governance report

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 and
Inclusion Council, made up of senior
management representatives,
provides governance over the
implementation of the Policy.
The Board is satisfied with the
initiatives being implemented by the
Vector Group and its performance
with respect to the Diversity and
Inclusion policy.
Vector is committed to:
ؽFinding, encouraging and
enabling people to bring their
whole and best selves to work, so
that Vector can benefit from their
thinking, skills and experience;
ؽRecruiting people based on merit
from a diverse pool of talented
candidates that represents the
diversity of Vector’s stakeholders,
communities and markets;
ؽSupporting under-represented
groups to find employment
opportunities with Vector (initially
focused on women, Maori,
Pasifika);
ؽNormalising flexible employment
models to remove barriers to
people entering or remaining in
our workforce;
ؽContinuing to provide support
and education to employees and
managers to promote mental
health awareness and wellbeing;
ؽEnsuring that people, culture and
management policies, processes
and systems are inclusive, and
accommodate the diversity and
inclusion needs of all Vector
people;
ؽProviding an accessible working
environment which supports
people with physical and
neurological disabilities;
ؽDeveloping inclusive behaviour
as a core responsibility and
capability for all, and especially
for our leaders;
ؽDemonstrating zero tolerance
for discriminating language or
behaviour and;
ؽDelivering equity for workers in
terms of career opportunities,
remuneration and reward.
“Diversity” refers to the
characteristics that make us
similar to, or different from, one
another. At Vector, diversity
encompasses gender, race,
ethnicity, national origin, disability,
age, sexual orientation, physical
capability, political opinion, family
responsibilities, marital status,
education, employment status,
cultural background and more.
Diversity also encompasses a
broad spread of experience,
culture perspective and lifestyle
ȉnj٪ɅǕȉȷƲ٪ɦǕȉ٪dzǛɥƲ٪ǛǾ٪vƲɦ٫íƲƇdzƇǾƫؙ٪
Australia and other countries
where Vector does business or has
strategic partners.
“Inclusion” at Vector is the deliberate
act of welcoming diversity and
creating an environment that is
encouraging of difference, free from
harassment and discrimination and
allows our people to be themselves,
to thrive and succeed. Inclusion
is closely linked to wellbeing and
without creating an inclusive
workplace, we cannot expect
diversity to thrive. We recognise that
diverse backgrounds, experiences
and perspectives lead to a better
experience of work for our people,
improve engagement, make teams
stronger, lead to greater innovation
and performance and contribute
to more meaningful relationships
with customers.
Responsibility for workplace diversity
and the setting of measurable
objectives for approval by the Board
is held by management on behalf of
the Board.
Gender statistics
Vector’s gender statistics are as follows:
ההגה٪-eÄv٪גו٪½
٪̄
דהגה٪-eÄv٪גו٪½
٪̄

PositionFemaleMaleDiverseFemaleMaleDiverse
Directors2 (28.6%) 5 (71.4%)1 (17%)5 (83%)
Executive team1 (12.5%)7 (87.5%)2 (25%)6 (75%)
Direct reports to the executive team15 (30.0%)35 (70.0%)19 (34%)37 (66%)
Across the Vector group466 (36.35%)816 (63.65%)451 (35.6%)816 (64.3%) 1 (0.1%)
Vector Annual Report 202240
Governance report

Remuneration framework
Vector’s remuneration framework is
designed to attract and retain high
performing individuals, to support the
delivery of the company’s strategy
and vision, and reward our people
appropriately and competitively. The
People and Remuneration Committee
assists the Board in overseeing
Vector’s Remuneration Policy.
Vector’s Remuneration Policy is that
of a total remuneration framework
which comprises fixed remuneration,
plus an at-risk component in the
form of a Short-Term Incentive
(STI). STI is a variable element of
remuneration and is only paid, at the
Board’s discretion, if financial and
health and safety gates are met, and
company performance goals have
been achieved. Commencing in FY22,
the STI only applies to Executives
and their direct reports and for FY21,
Vector cashed up the STI for all other
employees. The rationale for this
change was to focus the STI on those
who can influence company strategy
and performance.
Fixed remuneration
Fixed remuneration is reviewed
periodically based on data from
independent remuneration
specialists. Employees’ fixed
remuneration is based on a
matrix of their own performance
and their current position in their
salary band when compared to
Vector’s internal role bands and
the market.
Short-Term Incentive
Prior to any STI payment being
available to eligible employees the
conditional gateway goals (Health
and Safety – no fatalities; Financial
– achieving at least 95% of budget)
must be met.
Remuneration
Vector’s goal is to provide fair,
reasonable and competitive
remuneration for its directors to
ensure that it is able to attract and
retain high calibre directors who have
the skills, experience and knowledge
to increase entity value, to the benefit
of all shareholders.
Vector’s directors do not participate in
an incentive scheme or share scheme.
Directors do not receive any options,
bonus payments or incentive-based
remuneration. The company does not
have a scheme for retirement benefits
to be given to directors.
The People and Remuneration
Committee is responsible for
reviewing or the review of directors’
remuneration and, from time to time,
making recommendations in relation
to the level of fees in accordance with
the Remuneration Policy.
Directors fees were last approved
by shareholders at the 2013 annual
shareholders’ meeting. Directors
receive a single fee for membership
of the Board and committees. All
Directors are also entitled to be
reimbursed for costs associated
with carrying out their duties. Fees
payable to Vector’s directors for the
2022 financial year were as follows:
DIRECTORFEE ($)
J Masonגגוؙדגה
A Bellגחטؙגגד
M Buczkowskiהטדؙחה
A Carterגחטؙגגד
P Hutchisonךךדؙיח
P Rebstockגחטؙגגד
B Turnerגחטؙגגד
A Urlwinחיךؙוך
The STI Scheme for FY22
recognises Group and business
unit-level achievement of
financial, Symphony, customer,
health and safety and
decarbonisation performance
outcomes within
the at-risk component of
employees’ remuneration.
The STI Scheme does not reward
individual performance.
The at-risk percentage of fixed
remuneration for the FY22 STI
Scheme ranges from 20% to 50% of
base salary depending on the role.
Company performance goals are
set and reviewed annually by the
Board to align with business and
financial objectives.
Customer goals include measures
of customer satisfaction, as well as
operational performance such as
electricity network standards as
set by the Commerce Commission
(SAIDI/SAIFI), gas response to
emergency and the achievement of
customer service level agreements.
STI payments are determined
following a review of company
performance and paid out at
between 0% and 100% for all eligible
employees. Performance against the
at-risk STI element is capped at 100%.
As an example of how STI is
calculated, an employee with fixed
remuneration of $150,000 and an
STI element of 20% may receive
between $0 and $30,000 (0% to 100%
their STI) depending, at the Board’s
discretion, on the level of company
performance once the gateways have
been achieved.
STI Scheme payments relating to the
financial year ended 30 June 2022 are
delivered as a taxable cash payment
and are payable on completion of the
annual audited financial statements.
Payments relating to the 2022
financial year are therefore paid in
the 2023 financial year.
AREA OF FOCUS
CORPORATE
BUs
ELECTRICITY
& GAS
METERING &
GAS TRADINGFIBREHRVPOWERSMART
Financial45%15%45%45%65%65%
Symphony20%20%20%20%0%0%
Customer 20%50% 20% 20%20%20%
Health and Safety10%10%10%10%10%10%
Decarbonisation5%5% 5% 5% 5% 5%
TOTAL100%100%100%100%100%100%
Company performance goals
For this financial year, Vector’s goals were:
41
Governance report

Our key risks
Strategic Risks
1Adverse impacts, government responses, and unrealised opportunities from climate change
2Uncertain, adverse or underutilised legislative, policy or regulatory settings in all operating jurisdictions
3Reputational damage / loss of trust & confidence with key stakeholders
4Electricity network fails to adapt and transition to changing demand, affordability & regulatory policy causing
inefficient capital spend and reliability challenges
5Rapid digitalisation and technology change
6Funding, liquidity, cash flow and credit risk due to uncertain economic conditions and market risks
7Gas businesses adversely impacted by changing climate change policy and regulation
Operational Risks
8Serious harm or fatality event, including mental health and wellbeing
9Major/repeated disruption of critical services due to non-performance of internal processes
10Cyber security compromise
11External shock event, including natural disaster
12Breach of SAIDI and SAIFI
13Failure or poor performance of critical third parties (including service providers, suppliers and partnerships)
14Failure to collect, protect or create value from information
15Inability to develop, retain and recruit talent
16ȉɥǛƫ٪כד٪ȬƇǾƫƲǼǛƤ٪ƫǛȷȯɍȬɅȷ٪ƫƲdzǛɥƲȯɬ٪ȉnj٪ƤȯǛɅǛƤƇdz٪ƣɍȷǛǾƲȷȷ٪ȷƲȯɥǛƤƲȷ٪ƇǾƫ٪ǛǼȬƇƤɅȷ٪ɅǕƲ٪ǕƲƇdzɅǕ٪ƇǾƫ٪ɦƲdzdzƣƲǛǾǍ٪ȉnj٪ȷɅƇnjnj٪
and contractors
Group Chief Executive remuneration
The Board rewards the Group Chief Executive with fixed remuneration and an at-risk component in the form of a Short-
Term Incentive. There are no long-term incentive or share option schemes available at Vector.
The Group Chief Executive’s fixed remuneration is reviewed periodically by the Board, by external remuneration
specialists using relevant market peer benchmarks, as is the case with the executive leadership team and all senior
leadership roles.
The Group Chief Executive’s STI and fixed remuneration are set out below.
GROUP CHIEF EXECUTIVE REMUNERATION
FIXED REMUNERATIONAT-RISK REMUNERATION
TOTAL
REMUNERATION
SALARY BENEFITS SUBTOTALSTI SUBTOTAL
FY22גגؘגחחؙגוזؙדٳ–גגؘגחחؙגוזؙדٳ*גגؘגחחؙגוזؙדٳ
FY21גגؘגגחؙהגזؙדٳ–גגؘגךכؙדטטٳ גגؘגגחؙהגזؙדٳגגؘגךזؙזטגؙהٳ
* STI will be paid September 2022 for FY22.
DESCRIPTION OF THE GROUP CHIEF EXECUTIVE STI SCHEME
F§-¤٪§F§t
v§-¤٪-U-٪%v%UvG٪־ׁ٪eÄv-٪׀׀־׀
SchemeDescriptionPerformance MeasuresPercentage of Maximum Awarded
STI ̄ƲɅ٪Ʌȉ٪Ƈ٪ǼƇɫǛǼɍǼ٪ȉnj٪ڤגח٪ȉnj٪njǛɫƲƫ٪
ȯƲǼɍǾƲȯƇɅǛȉǾ٪njȉȯ٪Fãהה٪ȉǾعȬdzƇǾ٪
performance where the highest
levels of company performance
measures are achieved.
Company performance goals
ڤחז٪FǛǾƇǾƤǛƇdz
ڤגה٪ ̄ɬǼȬǕȉǾɬ
ڤגה٪ɍȷɅȉǼƲȯ
ڤגד٪OƲƇdzɅǕ٪ƇǾƫ٪ ̄ƇnjƲɅɬ
ڤח٪%ƲƤƇȯƣȉǾǛȷƇɅǛȉǾ
If met, will be paid in
ؘההגה̄ƲȬɅƲǼƣƲȯ٫
Vector Annual Report 202242
Governance report

Investor engagement
Vector recognises the rights of
shareholders as the owners of the
company and encourages their
ongoing active interest in the
ƤȉǼȬƇǾɬىȷ٪ƇnjnjƇǛȯȷ٫ƣɬؚ
ؽcommunicating with them
effectively;
ؽensuring they have full access to
information about the company,
including through the Vector
website;
ؽconducting shareholder meetings
in locations and at times
convenient to the majority of
shareholders, where possible; and
ؽproviding shareholders with
adequate opportunity to ask
questions about, and comment
upon, relevant matters, and to
question directly the external
auditors at shareholder meetings.
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 our website.
Each shareholder is entitled to
receive a hard copy of each annual
ƇǾƫ٪ǛǾɅƲȯǛǼ٫ȯƲȬȉȯɅؘ
We have a Shareholder Meetings
page in the Investors section on our
website where documents relating
to meetings are available.
Vector’s Constitution includes
provisions relating to Entrust,
Vector’s majority shareholder. In
addition, Vector and Entrust are
parties to a Deed Recording Essential
Operating Requirements, which
includes certain policy, consultation,
pricing reporting and the energy
solutions programme obligations.
The Board is committed to reporting
Vector’s financial and non-financial
information in an objective, balanced,
and clear manner. The Board takes an
active role in overseeing financial and
non-financial reporting. The annual
report is an important document for
communicating financial reporting
and also reports on strategic progress
and operational performance. It
contains the financial statements
that are prepared to comply with
generally accepted accounting
practice. The Board contributes to
ƇǾƫ٪ȯƲɥǛƲɦȷ٪ɅǕƲ٪ƇǾǾɍƇdz٫ȯƲȬȉȯɅؘ
A series of key performance
indicators is used to link results
to strategy. Vector is committed
to transparent reporting of
non-financial objectives, such
as environmental, social, and
ǍȉɥƲȯǾƇǾƤƲ٫njƇƤɅȉȯȷؘ
Shareholders may raise relevant
matters for discussion at the
Annual Shareholders’ Meeting
either in person or by emailing the
company with a question to be
asked. Shareholders can also contact
the company to ask questions,
or express views, about matters
ƇnjnjƲƤɅǛǾǍ٪ÜƲƤɅȉȯؘ٪
٫ƫƲƫǛƤƇɅƲƫ٪ƲǼƇǛdz٪
address is available for shareholder/
investor queries, which is: investor@
vector.co.nz. Contact details for
Vector’s head office are available on
the website and at page 120 of this
ƇǾǾɍƇdz٫ȯƲȬȉȯɅؘ٪
Vector is committed to complying
with its obligations under the NZX
Rules and the Companies Act 1993,
both of which contain specific
requirements to obtain shareholder
approval for certain significant
matters affecting Vector. Where
voting on a matter is required,
ɅǕƲ٫ȉƇȯƫ٪ƲǾƤȉɍȯƇǍƲȷ٪ǛǾɥƲȷɅȉȯȷ٪Ʌȉ٪
attend the meeting or to send in a
proxy vote. Notices of meeting are
usually available at least 20 working
days prior to the meeting on the
Shareholder Meetings page in the
UǾɥƲȷɅȉȯȷ٪ȷƲƤɅǛȉǾ٪ȉnj٫ȉɍȯ٪ɦƲƣȷǛɅƲؘ
Continuous disclosure
The Board is committed to the
provision of accurate, timely,
orderly, consistent and credible
disclosure and compliance with the
continuous disclosure requirements
of the Financial Markets Conduct
Act 2013 and the NZX Rules. The
Board supports the principle that
high standards of reporting and
disclosure are essential for proper
accountability between the company
and its investors, employees
and stakeholders.
Vector achieves these commitments,
and the promotion of investor
confidence, by ensuring that
trading in its shares takes place
in an efficient, competitive
and informed market. Vector’s
Continuous Disclosure Policy,
Shareholder Relations Policy and
Stakeholder Relations Policy set out
protocols to facilitate effective and
compliant disclosure.
The accountabilities of individual
directors and employees are
documented in the Continuous
Disclosure Policy. Vector has also
established procedures to follow
if potential material information
is raised by an employee or a
director and a management
disclosure committee which meets
regularly to discuss continuous
disclosure matters.
Significant market announcements,
including the preliminary
announcement of the half year
and full year results, the financial
statements for those periods, and
any advice of a change in earnings
forecast are approved by the Board.
The Chair will consult with directors
on any other matters for which the
issue or form of the disclosure is
determined by the Chair to be a
matter for the Board.
43
Governance report

Vector Annual Report 202244

Who
we
are
45

Jonathan Mason
MBA, MA, BA
Uv%-¤-v%-v½٪vv-فâ-ĽUÜ-٪%U§-½§٪
v%٪O
U§
ؾ
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, 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.
Tony Car ter
BE (Hons), ME, MPhil
Uv%-¤-v%-v½٪vv-فâ-ĽUÜ-٪%U§-½§٪
ؾ
Appointed on 1 May 2019
Tony Carter was Managing Director of Foodstuffs New Zealand Ltd for 10 years
until he retired in 2010. Tony is currently Chair of Datacom, My Food Bag Group, The
UǾɅƲȯǛȉȯȷ٪GȯȉɍȬؙ٪ ̄ǯǛǾ٪UǾȷɅǛɅɍɅƲ٪OȉdzƫǛǾǍ٪ȉǼȬƇǾɬ٪ƇǾƫ٪½§٪GȯȉɍȬؘ٪OƲ٫ɦƇȷ٪ȬȯƲɥǛȉɍȷdzɬ٪
Chair of Air New Zealand until 2019 and Chair of Fisher & Paykel Healthcare until
August 2020. He was made a Companion of the New Zealand Order of Merit in 2020.
Alastair Bell
BCom, CA, CMInstD, PMP, JP
NON-INDEPENDENT NON-EXECUTIVE DIRECTOR
ؾ
Appointed on 23 September 2019
Alastair Bell 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 Regulation and Policy Committee. Formerly, he was Deputy Chair of
Foundation North. Alastair is also Chair of the Orakei Community Association and a
trustee of the Motutapu Restoration Trust.
Our
Board
Vector Annual Report 202246

Bruce Turner
BE (Hons), ME, BCom
INDEPENDENT NON-EXECUTIVE DIRECTOR
ؾ
Appointed on 16 April 2019
Anne Urlwin
BCom, FCA, CFInstD
INDEPENDENT NON-EXECUTIVE DIRECTOR
ؾ
Appointed on 1 September 2021
Bruce Turner is a highly experienced senior executive with deep experience across
the dairy and energy sectors, both in New Zealand and internationally. Working in
the energy industry for more than 30 years, Bruce was extensively involved in the
development of the energy industries in New Zealand, Singapore and Europe as a
member of the dispatch rules working group, the NZEM Rules Committee, the MARIA
governance board and the development of industry common quality standards. He
was a member of the Electricity Authority’s Security and Reliability Council and heavily
involved in sector reforms. As well as the Vector board, Bruce’s governance experience
includes joint venture boards for both Mercury and Fonterra. Bruce is an advisory
board member at the University of Colorado’s JP Morgan Center for Commodities.
Anne is a professional director with experience in a diverse range of sectors
including construction, health, infrastructure, telecommunications, renewable
energy, regulation and financial services. Her current governance roles include
directorships of Precinct Properties New Zealand, Summerset Group Holdings,
Queenstown Airport Corporation, Ventia Services Group and City Rail Link. Anne is a
former director of Tilt Renewables, Chorus, and Meridian Energy, and a former Chair
of national commercial construction group Naylor Love Enterprises and the New
Zealand Blood Service. Anne is a Chartered Accountant with experience in senior
finance management roles. She was made an Officer of the New Zealand Order of
Merit in 2022.
Dr Paul Hutchison
MB, ChB, FRCOG, FACOG, Dip Com Health, Member of Institute of
Directors
vvفUv%-¤-v%-v½٪vv-فâ-ĽUÜ-٪%U§-½§٪
ؾ
Appointed on 8 December 2021
Paul was elected to the AECT (now Entrust) in 2015. He is a clinician at East Tamaki
Health Care, a former member of the New Zealand Medical Council as well as Director
of a number of companies and a member of the Institute of Directors. Paul was the
MP for Port Waikato, then Hunua from 1999 – 2014. He chaired the Health Select
Committee from 2008-2014 and was awarded the NZ Medical Association’s award for
outstanding contribution to health services in 2014. His other interests include science
and innovation, sport, music and fishing and he enjoys spending time with his family.
Dame Paula Rebstock
BSc (Econ), Dip & MSc (Econ)
INDEPENDENT NON-EXECUTIVE DIRECTOR
ؾ
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 NZ Healthcare Investments (Asia Pacific Healthcare Group), Kiwi
GȯȉɍȬ٪OȉdzƫǛǾǍȷؙ٪vƇɅǛȉǾƇdz٪OƇɍȉȯƇ٪ȉƇdzǛɅǛȉǾؙ٪vǍƜɅǛ٪ÝǕƜɅɍƇ٪™ȯƜǯƲǛ٪ÝǕƇǛ٪tƇǛƇ٪ƇǾƫ٪
the New Zealand Defence Force Board and a director of SeaLink Group, Auckland
One Rail and AIA. Dame Paula is the former Chair of the New Zealand Commerce
Commission.
47
Who we are

Shailesh Manga
BTech, Optoelectronics (Hons)
CHIEF DIGITAL OFFICER
ؾ
Shailesh Manga 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. Additionally, Shailesh
is responsible for leading Vector Technology
Solutions (VTS) to take digital solutions focused
on the energy sector to both local and global
markets. His experience is unique and vast,
having worked both locally and globally in the
fields of physics, telecommunications, user
experience and innovation. In his last role,
Shailesh worked with some of the world’s best
known brands including Google, Microsoft,
Samsung and LG, helping them deliver
innovative experiences. Shailesh has been an
owner/founder in a User Experience consulting
business as well as a SaaS Product company
(Optimal Workshop) that employs more than
60 people in Wellington and services around
half of the Fortune 500 companies. He remains
a Board member for Optimal Workshop and
also publicly listed company Geo.
Jason Hollingworth
MCom (Hons), FCA, CMInstD
CHIEF FINANCIAL OFFICER
ؾ
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
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Accountants ANZ and a member of the
Institute of Directors.
Simon Mackenzie
Grad DipBS (Dist), DipFin, NZCE
GROUP CHIEF EXECUTIVE
ؾ
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
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Our Management Team
Our
Management
team
Vector Annual Report 202248

Neil Williams
BA (Economics), PMD Harvard
Business School
CHIEF OPERATING OFFICER,
METERING AND ONGAS
ؾ
Neil Williams is Vector’s Chief Operating
Officer, Metering and OnGas, responsible for
leading Vector Metering in New Zealand and
Australia and OnGas (LPG and Natural Gas).
Over the last three decades Neil has had a
range of executive roles and experience in the
energy sector. This includes the development
of the New Zealand Electricity Market, trading
and risk management, advanced metering
development, energy retailing and market
regulation. Neil has also been involved in New
Zealand and international generation and
market development in Asia, USA, Chile and
Germany. Prior to joining the Group’s executive
team, Neil has most recently held the role
of General Manager OnGas LPG and Vector
Metering Commercial.
Mark Toner
LLB (Hons), BCom
CHIEF PUBLIC POLICY AND
REGULATORY OFFICER
ؾ
With over 25 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, decarbonisation 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. Mark is a past
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Business Scholarship and in 2018 completed
an Advanced Management Programme at MIT
in Boston.
Sarah Williams
BA, Cert. Journalism
CHIEF PEOPLE AND
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ؾ
Sarah leads Vector Group’s people, marketing
and communications business units. Along
with her teams, she is responsible for planning
and delivering strategies across these three
disciplines. She is a seasoned executive with
30 years’ experience in communication-related
roles at an executive and board level, with
broad experience in both corporate and agency
environments. Sarah joined 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
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significant contribution to the industry and high
levels of competence.
John Rodger
LLB, BA
CHIEF LEGAL AND ASSURANCE
OFFICER AND COMPANY SECRETARY
ؾ
John Rodger is Vector’s Chief Legal and
Assurance Officer and Company Secretary.
John is responsible for Vector’s legal,
corporate governance, health and safety,
business performance, internal audit, risk,
compliance, privacy, government relations,
and property functions. John joined Vector in
2006 and has extensive experience of Vector’s
businesses and operations. He has worked
across a range of sectors including energy,
telecommunications and financial services and
previously held legal roles in major corporates
and professional services firms in London, the
Cayman Islands and New Zealand.
Peter Ryan
BE
CHIEF OPERATING OFFICER
ELECTRICITY, GAS AND FIBRE
ؾ
Peter Ryan is responsible for the strategic
operations of the electricity, gas and
fibre network businesses. He has 20
years’ international experience within the
telecommunications industry, leading
engineering, field and operational teams in the
deployment, operations, and maintenance of
mobile and fixed networks. Most recently, Peter
was the Chief Network Engineering Officer
– Network & Service Operations at NBNCo
Australia, where he oversaw the highly successful
implementation and operation of the broadband
network. He brings a wealth of experience
in operations management, performance
transformation as well as a proven ability working
across technical, operational, and commercial
strategy to optimise business objectives.
Who we are
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