Vector announces strong full year result

creating a new energy future





Vector announces strong full year result
• Adjusted EBITDA
1
for continuing operations $365.2 million
• Total capital expenditure $510.1 million, including $195.2 million funded by the
capital contributions customers pay for new connections on the network
• Group net profit after tax for continuing operations $79.9 million, inclusive of a
$60 million impairment of the gas distribution business which was announced
at the half year
• Final dividend 13 cents per share, plus a special dividend of 1.75 cents.
2

• Investment in Bluecurrent (formerly Vector Metering) has performed in line with
expectations
• Progress on carbon emissions reduction plan, climate change resilience, smart
meter data programme, renewed partnerships with Amazon Web Services
(AWS) and X (Google X), as part of our Symphony strategy
Vector Group (NZX: VCT) today announces a strong full year result underlined by solid
business performance, and progress against a number of strategic initiatives.
Vector Group Chief Executive Simon Mackenzie said, “ The year’s financial result sees
adjusted earnings for the group before interest, tax depreciation and amortisation (adjusted
EBITDA
1
), for continuing operations, up 14% to $365.2 million, with the group net profit after
tax at $ 79.9 million. This recognises the $60.0 million impairment on our gas network
announced at half year. Underlying profit (excluding impairment) was $ 139.9 million.


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. Adjusted EBITDA excludes the capital contributions customers pay for new connections on the network. See the
financial statements for further details or click on this link
to see Vector’s policy.
2
The dividend is unimputed and will be paid to shareholders who are on the register at 6 September 2024, with payment made
on 16 September 2024.

market release
27 August 2024

creating a new energy future


“Total capital expenditure for continuing operations was $510.1 million. Of this, $195.2 million
was funded by the capital contributions customers pay for new connections on the network.

The board has announced an unimputed final dividend of 13 cents per share, plus a special
dividend of 1.75 cents per share. This takes the full year dividend to 24 cents per share. As
previously advised, we will finalise our dividend policy once the Commerce Commission’s
final determination on the next regulatory period is released later this year.

“We’ve now announced the sale of the remaining businesses which comprise our gas trading
segment. The sale of the remaining contracts of our natural gas business is now complete,
and the conditional sale of Vector Ongas and our 60.25% shareholding in Liquigas is
expected to complete in four to six months, assuming the conditions for sale are met. This
will enable us to concentrate on playing a leading role in the energy transition, through our
networks and technology solutions.

“We’ve made good progress against our Symphony strategy this year.

“Our investment in Bluecurrent has performed in line with expectations, and we’re benefiting
from the complimentary skills, common objectives and strong alignment of purpose we
identified when selecting QIC as a joint venture partner.

“Vector Technology Solutions (VTS) has a long-term contract with Bluecurrent to provide
data services and is actively pursuing offshore opportunities for the data-processing Diverge
platform.

“Vector Fibre has performed to expectations while market conditions have impacted HRV’s
financial performance.

“We’ve extended our strategic alliance with Amazon Web Services, and contribution to X’s,
formerly Google X’s, Tapestry project, as one of a select group of global partners
collaborating on next generation platforms for network management.

creating a new energy future


“We value the engagement we’ve had with the Commerce Commission as it works through
its decision, due later this year, on the 2025 reset of the electricity five-year default price-
quality path. Our approach has been to avoid committing to high levels of capital investment
around areas where there is significant uncertainty, because our capital investment ultimately
flows through to customer pricing, and we consider it’s not in their best interest to lock in high
levels of investment where the scale and timing of need is not yet certain. We acknowledge
that price increases on lines charges will occur in the new regulatory period, and that the
Commission has proposed that these increases will be ‘smoothed’ over the five-year period,
avoiding the potential of one-off price shocks.

“There has been a lot of commentary over recent weeks on high energy prices and lack of
generation to supply the energy market. Our long-held view is that the energy system is
going through a significant transition with the need for more capacity, changing customer
needs, and climate change. We’ve long called for an energy strategy taking a whole of
system approach, rather than piecemeal approach. This is because no part of the system
can operate in isolation anymore, to deliver secure, reliable, affordable energy to meet
consumer needs now and into the future. The industry changes made in the late 1990s,
known as the 'Bradford reforms', might have been right for their time, but we believe this is
no longer the case in a rapidly changing world. New Zealand urgently needs an energy
strategy to inform policy and regulatory settings and enable the industry to effectively
manage the energy transition.”

Key financial and operational information
Business segment FY23 FY24 % change
Regulated Networks
- Adjusted EBITDA
- New electricity connections
- New gas connections
- Gross Capex

$372m
15865
2691
$423m

$407m
15959
1934
$446m

+10%
+1%
-28%
+6%

creating a new energy future


Gas Trading
3

- Adjusted EBITDA
- LPG sales (tonnes)

$12m
22535

$23m
24415

+88%
+8%


ENDS
Further details of initiatives can be read in Vector’s annual report. This along with our
climate-related 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, Communications Manager, Vector
Matthew.britton@vector.co.nz
, 021 224 2966



About Vector
Vector is an innovative New Zealand energy and digital solutions company, which runs a
portfolio of businesses delivering energy, technology and communication services to more
than 620,000 residential and commercial customers across New Zealand. Vector has a leading
role 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

3
The sale of the remaining contracts of the natural gas trading business is now complete as at 1 July 2024. On 26 July 2024,
we announced the conditional sale of the two remaining businesses that comprise our Gas Trading segment, being Vector
Ongas and our 60.25% shareholding in Liquigas.

---

POWERING
AHEAD
ANNUAL REPORT 2024

Kiwis love doing things their way. When it
comes to energy, we want our customers to
have choices about how and when they use
it, and for digital technology to make those
choices easy, and efficient across the network.
POWER TO
THE CREATORS

1

POWER TO THE
INNOVATORS
We’re not only advocating for an affordable system for
Kiwis, we’re also working smarter, using technology to
enable the necessary changes to deliver it.
Vector Annual Report 20242

3

POWER TO THE
ENERGISERS
We’re following our plan around reducing carbon
emissions and preparing for a transition to e-transport,
and more renewable energy sources.
Vector Annual Report 20244

5

POWER TO
THE FAMILIES
And through embracing smart innovation,
digital platforms, and global technology
partnerships, our strategy is about
delivering a more efficient network that’s
reliable, safe and ready for the future,
recognising the challenge of affordability.
Vector Annual Report 20246

About this report
This report, dated 26 August 2024, is a review of Vector’s financial
and operational performance for the year ended 30 June 2024.
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
Chair and group chief executive report10
Environmental, social and governance (ESG)
People, health and safety
Sustainability
14
16
18
Business segment reports
Regulated networks
Gas trading
20
22
25
Vector Technology Solutions25
Governance report26
Remuneration report36
Who we are
Our board
Our management team
Entrust
43
44
46
48
Other disclosures
Joint ventures and investments
Operating statistics
Five-year financial performance
Non-GAAP financial information
49
50
51
52
54
Financials
Financial statements
Notes to the financial statements
Independent auditor’s report
55
56
62
102
Statutory information
Directory and financial calendar
108
119
Contents
This annual report is published as part of a reporting
suite, which also includes our climate-related disclosures
report, and greenhouse gas emissions inventory report.
All three reports are available at vector.co.nz.
2024 REPORTING SUITE

Performance snapshot
Financial and customer highlights
$
365.2
M
Adjusted EBITDA
1
from
continuing operations
$
79.9
M
Group net profit after tax
for continuing operations,
inclusive of a $60 million
impairment of the gas
distribution business which
was announced at the half
year. Underlying profit,
excluding the impairment,
of $139.9 million
$
510.1
M
Gross capital expenditure
across the group
24
CENTS
per share full year dividend, including a
special dividend of 1.75 cents per share
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 54.
Adjusted EBITDA excludes the capital contributions customers pay for new connections on the network.
Financial
120,354
Gas connections
$
750,000
Innovation funding awarded for
our smart meter data programme
to lower costs and improve service
to customers
3
MW
Demand reduction
achieved in Warkworth
through use of our battery
fleet, when supply was
constrained due to a
transmission tower failure
6
We’re providing managed
cyber security services
to six other electricity
distribution businesses,
with the sixth customer
added after balance date
624,330
Electricity connections
23
Regional customer zones
on our Outage Centre,
developed to provide
more detailed and
specific communications
to customers during
large-scale events like
tropical cyclones
Customer
Vector Annual Report 20248

Environment, social and governance highlights
6
New behaviours launched to drive
performance and culture, in order
to deliver our strategy and vision
395
KM
We worked with Fire and Emergency
New Zealand and the National
Institute of Water and Atmospheric
Research (NIWA) to prepare for
wildfire risk, identifying 395 km of
power lines in areas classed as either
Very High or High risk zones.
$
334
In September 2023,
each of Entrust’s 358,500
beneficiaries was eligible
to receive a $334 dividend,
plus an additional $30 Loss
Rental Rebate payment on
behalf of Vector
334
Learning and development
opportunities offered, and taken
up, by Vector staff (excluding
operational and health and
safety training)
People and communities
48,434
Number of EVs registered in Auckland, underscoring the criticality
of regulated standards for smart EV charging to enable Vector to
orchestrate charging and manage overall load
The essence of our Symphony strategy is to deliver safe, reliable and affordable energy to our customers.
Our approach is to invest as efficiently as possible, using digital solutions, to manage demand, growth,
and electrification, at the least cost to consumers. We consider it’s not in our customers’ best interests to
lock in high levels of investment, where the scale and timing of need is not yet certain. Our approach to the
next five-year regulatory period, was to avoid capital expenditure that is highly uncertain such as the rate
of electric vehicle growth and resilience investment as ultimately this flows through to customer pricing.
Once there is greater certainty, we will work with the Commerce Commission to agree appropriate funding.
Energy affordability
Climate change
19
%
Reduction in carbon
emissions across scopes 1,
2 and 3 relative to FY20
base year
121
Electric buses operating
from depots where our
Dynamic Operating Envelope
solution is used to smooth
demand from bus charging

9

We are at a critical moment, with the
energy sector grappling with a multitude
of challenges. Our Symphony strategy
was designed to enable us to navigate the
uncertainties of the energy transition in
the decades ahead.
We’re committed to creating energy infrastructure
equipped to manage the complex demands of the future,
and that provides choices for customers. Together with
our innovative mindset and active challenging of the
status quo, this sets us apart.
Our result for the past financial year is pleasing and
reflects strong business performance, as well as the hard
work of many people. We recognise the cost of living
pressures our customers are experiencing and this further
reinforces our Symphony strategy.
Demand is forecast to grow strongly as electrification
takes hold, although there is significant uncertainty
around the pace of changes to customer behaviour.
Alongside this, the challenges of climate change,
particularly on infrastructure resilience, become clearer
every day. All of this places new pressures on established
energy systems at a time when reliance on electricity
is increasing.
Faced with these uncertainties, we choose a clear path,
informed by our Symphony strategy, to actively shape the
energy future. By thinking outside traditional solutions,
leveraging innovative technology solutions and global
partnerships, we’re developing not just the understanding,
but also the tools we’ll need to navigate the future. Vector
has shown numerous examples of innovation over many
years, with the success of Bluecurrent being the latest
example. We believe this culture of innovation is critical
from an organisational perspective to enable us to
deliver on customer, network and stakeholder objectives,
including affordability and reliability.
One clear example is seen on our electricity network,
where our insights from smart analytics show that if we
don’t have the ability to coordinate and schedule electricity
demand under certain conditions, then it is possible that
the cost of investing in a bigger network, based only on
traditional solutions to meet future customer demand,
will triple. But by using technology to schedule demand
where possible for more efficient network use, the cost
may be reduced significantly. This direction is ultimately
more affordable for customers than investing only in
physical infrastructure.
Chair and group chief executive report
Chair and group
chief executive report
DOUG MCKAY
CHAIR
Vector Annual Report 202410Vector Annual Report 202410

Business performance
A detailed overview of the performance of our regulated
electricity and gas distribution businesses is provided
on page 22. Given our investment in the gas distribution
network, we continue to advocate for regulatory and
policy settings to support a sustainable gas transition,
recognising the impact on customers and owners of
the network.
An overview of businesses within our gas trading
segment is provided on page 25. Within this segment,
Vector Ongas has delivered a strong result in a
challenging market, noting the volatility of global
LPG prices.
Our investment in Bluecurrent has performed in line
with expectations, with distributions received from
the investment recognised in our financial statements
in cash flows. A leader in the digitisation of advanced
metering, Bluecurrent, which is provided data services by
Vector Technology Solutions under a long-term contract,
is meeting its business plan targets in highly competitive
markets in Australia and New Zealand. Our relationship
with QIC is developing well, and we’re satisfied we’re
benefitting from the complementary skills, common
objectives and strong alignment of purpose we identified
when selecting QIC as a joint-venture partner.
We’ve extended our strategic alliance with Amazon Web
Services (AWS). Through this alliance, we’re building
solutions using bespoke services, co-developed between
Vector Technology Solutions and AWS.
We are pleased to be continuing our partnership with X
(formerly Google X), contributing to their Tapestry
project, as one of a select group of global partners
collaborating on next generation of platforms for network
management. These tools are described on page 25.
These two arrangements support key components
of our Symphony strategy, using digital solutions and
innovation to enable a more efficient use of the network,
and improve our planning capabilities.
Vector Fibre has performed to expectations while market
conditions have impacted HRV’s financial performance.
We’re providing cyber security services to a number of
electricity distribution businesses across the country,
which represents positive collaboration for the good of
the industry as a whole.
SIMON MACKENZIE
GROUP CHIEF EXECUTIVE
Chair and Group Chief Executive report
Earnings
Vector’s financial performance reflects a strong result
with adjusted earnings before interest, tax, depreciation
and amortisation (adjusted EBITDA
1
) for continuing
operations up $45.0 million or 14% to $365.2 million.
Capital contributions, which customers pay for new
connections on the network, are not included in our
adjusted EBITDA figure.
As announced earlier this year, we entered into
a conditional agreement to sell the remaining
contracts of Vector’s Natural Gas Trading business.
This transaction has now been successfully completed,
and Vector’s Natural Gas Trading business is classified as
a discontinued operation in these full-year results.
It’s time for energy regulation reform
At the time of publication, there has been a lot of commentary on high energy prices and the state of the energy
market. Our long-held view is that the energy system is going through a significant transition with the need for
more capacity, changing customer needs, and climate change. We’ve long called for an energy strategy taking a
whole of system approach, rather than piecemeal approach. This is because no part of the system can operate in
isolation anymore, to deliver secure, reliable, affordable energy to meet consumer needs now and into the future.
The industry changes made in the late 1990s, known as the ‘Bradford reforms’, might have been right for their time,
but we believe this is no longer the case in a rapidly changing world. New Zealand urgently needs an energy strategy
to inform policy and regulatory settings and enable the industry to effectively manage the energy transition.
11

11

On 26 July 2024 (after the balance date for these full-
year results), we also announced the conditional sale
of the two remaining businesses that comprise our
gas trading segment, being Vector Ongas and our
60.25% shareholding in Liquigas. We expect it could
take four to six months to satisfy the conditions in the
agreement, and this includes obtaining the necessary
regulatory approvals. This will enable us to concentrate on
playing a leading role in the energy transition, through our
networks and technology solutions.
Profit
Group net profit after tax for continuing operations was
$79.9 million, inclusive of a $60 million impairment of the
gas distribution business. Underlying profit, excluding
the impairment, was $139.9 million. The $60 million
impairment was announced in our half-year results, and
was driven by a regulatory decision to lower returns on
these assets and higher interest rates impacting the
valuation. Finance costs have reduced by $93.1 million as
a result of significantly lower debt following the sale of
the metering business.
NPAT is also reduced by our 50% share of Bluecurrent’s
(formerly Vector Metering) NPAT, which was -$24.9
million. While our investment in Bluecurrent has
performed in line with expectations, and the business
is cash-flow positive, it has reported a net loss driven
by debt to fund growth, depreciation of meters and
amortisation of customer contracts.
Capital expenditure
Total capital expenditure for continuing operations was
$510.1 million, down $2.6 million. This level of investment
reflects Auckland growth, the electrification of transport
and industry, and new types of connections such as data
centres, and includes $195.2 million funded by capital
contributions from customers, which is up $6.9 million
on the prior year. While our level of capital investment
will continue to increase as demand grows, we seek
to invest in smarter solutions to manage the level of
increase. For example, our Symphony strategy will meet
customer demand while lowering and managing peak
load using digital solutions. This results in a lower capital
expenditure path than would otherwise be the case. This
means network efficiency is increased, helping making
consumer costs more affordable.
Dividend
Shareholders will receive an unimputed final dividend
of 13 cents per share, plus a special dividend of 1.75 cents
per share. This takes the full year dividend to 24 cents per
share. This will be paid to investors on 16 September 2024
based on a record date of 6 September 2024. The final
outcome of the Commerce Commission’s reset of the
electricity default price/quality path is not due until 30
November 2024. As this is a key regulatory decision that
impacts our future cash flow, the board will review the
dividend policy once the Commission’s final decisions
are known.
$
365.2
M
Adjusted EBITDA
1
for
continuing operations
$
510.1
M
Gross capital expenditure
across the group
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 the Non-GAAP reconciliation on page 54.
Future network investment under the next
five-year regulatory period
In recent years we’ve been consistent in signalling our
intent to increase our network investment and we’ve
demonstrated capability to successfully deliver these
increased activity levels and meet the electrification
needs of a strongly growing Auckland. Given the
external environment of inflation and high costs to
consumers, it’s now even more important to ensure
our investments are delivering value for money for
our customers and are being made at the right time.
Our approach has been to avoid committing to high
levels of capital investment around areas where there
is significant uncertainty, such as the rate of EV growth,
and what level of resilience investment is appropriate.
Instead, we take a prudent approach and will re-engage
with the Commerce Commission as these uncertainties
are resolved. We take this approach because our capital
investment ultimately flows through to customer
pricing, and we consider it’s not in their best interests
to lock in high levels of investment where the scale and
timing of need is not yet certain.
We acknowledge that price increases on lines charges
will occur in the new regulatory period, and that the
Commission has proposed that these increases will be
‘smoothed’ over the five-year period, helping avoid the
potential of one-off price shocks.
We value the engagement we’ve had with the
Commerce Commission as it works through its
decision on the 2025 reset of the electricity default
price/quality path.
Vector Annual Report 202412
Chair and group chief executive report

Electricity network regulatory performance
Electricity network performance for the regulatory
year to 31 March 2024 was within the regulatory quality
standard limits for the duration and frequency of
outages (SAIDI and SAIFI). While we were compliant
with these limits, in June 2023 (the regulatory year
runs from 1 April 2023 to 31 March 2024), outages in the
Warkworth area exceeded a separate quality standard
for minutes incurred as a result of an extreme event.
We will work with the Commerce Commission to share
our data relating to the factors contributing to this.
External environment
We continue to pursue regulatory changes to improve
customer outcomes and affordability. Vector has long
advocated for reform of the regulations that require
trees to be kept clear of power lines, as we set out on
page 23. We await decisions from government we hope
will address the fundamental issues causing outages for
customers and challenges for resilience.
Another example of our advocacy is for regulated
standards for EV charging, which enables network
upgrades to be deferred. There is some urgency for
this. If smart EV charging standards and settings
aren’t regulated and implemented soon, it may be too
late. If too many non-smart EV chargers are installed,
we will have no choice but to reinforce the network
infrastructure to cope with increased energy demand
which is costly and inefficient.
As we detail on page 17, we’re concerned about reports
that indicate our field crews may be experiencing an
apparent increase in negative sentiment and frustration.
Our crews work every day to deliver for our customers,
and our concern is not just for the immediate impact
at work sites, but also the effect this can have on the
wellbeing of crew members.
2024 REPORTING SUITE
This annual report is published as part of a reporting suite,
which also includes our climate-related disclosures report,
and greenhouse gas emissions inventory report. All three
reports are available at vector.co.nz.
“We’ve invested significantly to build, maintain and grow the electricity
network, in step with a growing and increasingly electrifying Auckland.”
Looking ahead
We’ve invested significantly to build, maintain and grow
the electricity network, in step with a growing and
increasingly electrifying Auckland. While we do this we’re
also developing the tools and capabilities that will be
required to integrate the many new types of connections
on a modern network, such as data centres or distributed
energy resources like solar and batteries, as well as to
orchestrate demand where there is opportunity to do
so - for example smart EV chargers. Enabling these
technologies at scale into electricity networks represents
the next big evolution for networks around the world.
As we work on this, it’s crucial that we have a deep
understanding of our networks, our customers and how
we operate commercially. We’ve recently implemented
a new data and analytics operating structure, to help us
to deliver our Symphony strategy. Our focus for the year
ahead remains on delivering reliable, safe, innovative
energy services leading to positive outcomes for
customers and shareholders.
We thank you for your support.
Doug McKay
Chair
Simon Mackenzie
Group Chief Executive
13

Chair and Group Chief Executive report

Environmental, social and governance (ESG)
Vector Annual Report 202414

ENVIRONMENTAL,
SOCIAL AND
GOVERNANCE
(ESG)
Environmental, social and governance (ESG)
15

Introducing our new behaviours
This year we introduced new behaviours and leadership
competencies, in recognition that the way we work to
achieve our vision of a new energy future must continue
to evolve. Vector has long recognised that what has made
us successful in the past will not be enough to lead the
energy transition. The performance of our people, and
culture we collectively create, will be pivotal to our ability
to manage the complexities of the challenges we face.
Our new behaviours signal how we expect our people
to think, interact and collaborate with each other and
externally. They sharpen our individual and collective
focus on the outcomes that are critical for our business in
delivering our strategy, for the benefit of our customers
and shareholders. All staff are measured on both their role
performance and how they exhibit our behaviours, which
contributes to annual remuneration review outcomes.
We’ve established a range of professional development
programmes to help leaders create the kind of working
environment that will foster high performance, and make
us an appealing place to work. These programmes are
tailored to each level of leadership, from team leader
through to executive.
Deepening our understanding of diversity,
equity and inclusion
A focus this year has been on gathering data and insights
to help guide our diversity and inclusion programme.
Vector promotes and recruits based on merit and we
want to access the best talent from every community
knowing that a diverse workforce leads to better
outcomes for our people and performance. Our long-
standing commitment to equitable pay is set out on
page 39, and we’ve continued to embed it with hiring
managers, within our performance review process, and
when considering promotions.
To support performance in line with our diversity and
inclusion policy, we undertook detailed analysis of our
workforce alongside other companies, and external
talent pools, to benchmark where we sit and identify
barriers to progress. Within electrical engineers, our
single largest professional group, we found that there is
low availability of qualified candidates among women,
Māori and Pasifika, and that this is a significant factor
influencing Vector’s workforce representation, as well
as potentially a long-term industry issue not just for us,
but for the entire sector too. We have shared our findings
with the wider industry and are working collaboratively
on targeted initiatives.
This analysis has reinforced our focus, which is on
attracting top talent from diverse backgrounds into our
recruitment process, and promoting inclusive behaviours
to retain staff and create a positive and inclusive culture
for all our people.
Led by our employees, we have groups representing
our diverse workforce which are responsible for
implementing targeted initiatives aimed at creating an
inclusive culture and enhancing attraction and retention
within these communities.
People, health
and safety
Vector Annual Report 202416
People, health and safety

Wellbeing
We’re now in the third year of our wellbeing strategy,
which we developed with external wellbeing agency
Umbrella. This strategy includes annual pulse checks to
monitor progress and inform our activities. Highlights
from this year’s survey results include that Vector people
appear to be more resilient, and experiencing higher
levels of support from Vector, than at other comparison
organisations. Survey results also inform specific
activities, which this year have included programmes to
inform and help staff in areas such as personal finances,
women at work, sleep habits, nutrition and healthy
eating, and many more topics.
In addition, we’ve continued upskilling our leaders with
mental health and wellbeing training, to better enable
them to support their teams.
Health, safety and environment
We maintain confidence in our health and safety
practices through ongoing assurance of safety work and
critical controls. This assurance extends beyond front-
line field assessments and contractor management, to
executive and board oversight of major investigation
findings, safety maturity assessments, and external
assurance of safety practices through our business
performance and internal audit programme.
Our health and safety approach is focused on how
we effectively control Vector’s critical risks effectively
and promoting a culture of openness, curiosity and
continuous learning to drive a safer and healthier
workplace for our people. This culture encourages our
people, both in the office and in the field, to actively
participate in our risk management system, as opposed
to taking a view of ‘arbitrary compliance’, which does not
encourage engagement and continuous improvement.
We also track high potential ‘near miss’ events and,
with oversight from the relevant executives, ensure
each of these is fully investigated to uncover and
adopt learnings.
To measure our safety performance, we monitor key
safety metrics including traditional lagging indicators
(Total Recordable Injury Frequency Rate, Lost Time Injury
Frequency Rate, and severity rate) as well as leading
indicators such as contractor safety pre-qualifications,
critical risk reviews and safety maturity indices. We are
transitioning our safety performance monitoring to focus
more on leading indicators which provide greater insight
than traditional lagging metrics.
Over the last year we have seen an increase in our
recordable injury rate, predominantly due to the
occurrence of manual handling or sprain and strain
injuries reported by our field workforce. Injury reduction
through training and hazard assessment remains a
focus. We are concerned about negative sentiment and
increased aggression towards field crews by members
of the public, while crews are working on the network
to ensure it delivers for customers. Our concern is not
only for the immediate impact at work sites, but also the
effect this can have on the wellbeing of crew members.
We engage closely with our key contractors to reinforce a
strong commitment to safety processes and behaviours
which support safe work outcomes.
We remain highly focused on our critical health, safety
and environment (HSE) risks, our controls, and on
assuring our confidence in those controls. We’ve retained
certification in ISO45001, ISO14001 and NZS7901, being
the key HSE standards for our businesses.
13.2%
20-29
30.3%
30-39
26.9%
40-49
18.5%
50-59
9.0%
60+
0.7%
UNDER 20
1.2%
UNKNOWN
32.6%
FEMALE
67.4%
MALE
EMPLOYEES BY ETHNICITYEMPLOYEES BY AGEEMPLOYEES BY GENDER
27%
18%
26%
4%
3%
7%
12%
3%
ASIAN
NZ EUROPEAN
NZ
MĀORI
OTHER
PASIFIKA
UNKNOWN
EUROPEAN
MELAA*
Notable changes in the diversity statistics included a 2.3% decrease in female representation, from 34.9% to 32.6%,
across the Vector group. This decrease, of 22 women, is driven predominantly by merit-based recruitment in one of
our businesses, where we’ve seen more new male employees entering the business than females who have left. We’ve
noted a decrease in employees in the 20 to 29 age bracket (-3.5%); an increase in those identifying as Asian by 3.3%;
an increase in MELAA* by 1.4%; and an increase in the 40 to 49 age bracket by 3.3%. A further breakdown of Vector’s
gender mix can be found in the governance report on page 34.
*Middle East, Latin America and Africa.
17
Environmental, social and governance (ESG)

Sustainability
18Vector Annual Report 2024
Sustainability

Under the Financial Markets Conduct Act 2013, Vector is required to produce climate
statements that comply with the Aotearoa New Zealand Climate Standards (NZCS) 1, 2 and
3 issued by the External Reporting Board (XRB).
We have complied with that requirement through
the publication of our first climate-related financial
disclosures report. That report considers our climate-
related risks and opportunities, and, together with
this annual report and our greenhouse gas emissions
inventory report, comprises our annual reporting suite,
available at vector.co.nz/investors/reports.
Emissions reduction target
In FY2021 we set an absolute emissions reduction target,
aligned with a methodology published by the Science
Based Target initiative (SBTi), though not validated by the
SBTi. That target is for Vector to reduce its scope 1 and
2 emissions (excluding electricity distribution losses) by
53.5% by FY2030 from an FY2020 baseline. The emissions
reduction target does not rely on any offsets.
We have achieved a greenhouse gas (GHG) emissions
reduction of 38.0% in FY2024 against the FY2020
baseline. This is largely due to a reduction in natural gas
fugitive emissions.
Vector’s total emissions across all scopes has decreased
by 19% since FY2020. This is largely due to a reduction
in natural gas consumption in the Auckland region,
combined with a wind-down of Vector’s Natural Gas
Trading contracts. A summary breakdown of emissions
by scope and a comparison of emissions per scope since
Vector’s base year in FY2020
1
can be found in the table
alongside. Full details can be seen in our 2024 greenhouse
gas emissions inventory report which is available at
vector.co.nz/investors/reports.
Emissions abatement
In FY2022 Vector developed a carbon abatement cost
curve to help measure and understand our emissions
reduction targets (scope 1 and 2 excluding electricity
distribution losses) and actions available to Vector to
contribute to reaching those targets.
This work identifies the financial impact of potential
carbon reduction activity across scope 1 and 2 emissions,
using an internal carbon cost of $140 per tonne of carbon
dioxide equivalent (tCO
2
e) as a comparative “do nothing”
cost. The cost curve was updated in FY2024 to include a
newly identified initiative, reflect project cost changes,
and highlight completed projects.
Emissions summary
EMISSIONS
CATEGORY
FY20
(BASE YEAR)
FY24% CHANGE
Scope 124,43115,545-36%
Scope 2
2
33,14826,900-19%
Scope 31,843,2621,488,277-19%
Total1,900,8411,530,722-19%
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 (2023)
Hybrid generator (trial pending)
Transition remaining light
vehicle fleet to EV
Transition vans and utes to
electric (when available)
4-month gas pipeline surveying
3-month 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
(based on 2024 costs of
pre-market trucks)
SF
6
monitoring
Renewable-only
electricity (2023)
Electric LPG vaporisers
Uncosted emissions
Third-party
gas pipeline
damage
Public engagement on dial
before you dig (2023)
Additional diesel generation
emissions since FY2020
Completed
In Progress
Planned
Issues Exist/
Not Planned
Other
fugitive
methane
Other
diesel
generation
$0
$-1,000
$-2,000
$1,000
$2,000
$140/
tCO₂e
53.5%
Emissions
reduction
target
1. Vector recalculates its historic base year emissions if the inventory is affected by changes that in aggregate total 5% of Vector's carbon footprint. Recalculations were
required this year. Details are provided in our greenhouse gas emissions inventory report.
2. Market-based method for electricity consumption. For further information on where market-based and location-based electricity emissions are included, see our
greenhouse gas emissions inventory report, available at vector.co.nz/reports.
19
Environmental, social and governance (ESG)

Vector Annual Report 2024Vector Annual Report 202420

Business segment reports
BUSINESS
SEGMENT
REPORTS
Business segment reports
21

Regulated networks
Adjusted EBITDA
Networks’ adjusted EBITDA for the year to 30 June is up
$35.6 million to $407.2 million. This result was driven by
strong revenue growth, up $37.4 million, due to higher
volumes from a colder winter and warmer summer,
pricing adjustments, and pass-through and recoverable
costs. Direct costs were marginally lower, with no
remedial cyclone costs after their impact in the prior
year. However, this was largely offset by an increase in
maintenance expense and vegetation management,
in part, to mitigate the risk of extreme weather events,
including extreme-heat days and cyclones.
Connection growth
Auckland’s growth has continued, with network
connection numbers growing across Vector’s electricity
and gas networks. In the year to 30 June, total electricity
connection numbers grew by 1.9% to 624,330, with
new electricity connections for the year up 0.6% on the
previous year. However, the number of new connections
in the second half of the year, January to June 2024, has
been lower than the same period a year prior, reflecting
the broader economic slowdown.
There has been a 0.6% increase in the total number of
connections on Auckland’s gas distribution network to
120,354. The number of new gas connections was down
28.1% on the prior year, with 1,934 added during the year.
Volumes
Electricity distribution volume for the year was up 2.4%
compared with the prior year, largely driven by a colder
winter and warmer summer, as well as an increased level
of connections. Residential volumes were up 5.3% while
business volumes were up 0.2%. Gas distribution volume
for the year to 30 June 2024 was down 4.4% compared
with the previous year, due to lower demand from both the
residential, and industrial and commercial sectors.
Increased investment levels
Gross capital expenditure increased by $23.4 million
to $446.0 million, driven by growth in the Auckland
network and life-cycle asset replacement work. This
capital expenditure was partly funded by $193.8 million
of capital contributions, which is paid by customers for
new connections on the electricity or gas network, up
$6.6 million on the prior year.
Electricity network resilience
In the last year, we’ve continued to engage with experts
from New Zealand and around the world to further our
understanding and develop strategies around resilience
challenges, using data and advanced climate modelling.
This has included working closely with NIWA and Fire and
Emergency New Zealand in preparation for the 2023/24
summer to model extreme dry year risk and map the
associated fire risk against asset proximity and potential
customer impact.
Regulated networks
Vector Annual Report 202422

To complement this analysis, we’ve also engaged with
US-based electricity network businesses to learn from
their experiences in managing wildfire risk and help us
prepare the network, and communicate effectively with
customers in the lead up to extreme heat days, should
the need arise.
We have collaborated with external specialists to develop
detailed flood modelling at our zone substations,
forecasting not only inundation zones but also depth
of inundation. We’ve integrated this analysis into our
resilience planning to manage this climate-change-
related risk to our strategic assets.
Following the lessons learnt from Cyclone Gabrielle, some
of our more recent resilience analysis has used landslip
data to model this risk across our entire network of more
than 125,000 power poles. We’ve then assessed poles in
locations susceptible to landslips against the potential
customer impact and network impact to inform our
mitigation strategy.
Our wider tree risk management strategy has continued,
in collaboration with Auckland Council, to enable more
effective tree management of council-owned vegetation
encroaching on the electricity network. This responds
not just to the risk of trees being blown onto lines and
causing power outages, but more recently also the
mitigation of fire risk associated with vegetation in the
proximity of electricity assets. This programme involves
working within resource consent conditions, and
restrictions associated with work in significant ecological
areas, such as developing specific works plans for
mitigating impact on wildlife.
Regulatory change to enable more to be done to reduce
risk to the network from trees, especially during storms,
is needed. We note that the Ministry of Business,
Innovation and Employment (MBIE) is consulting on the
current regulations on vegetation management, and
we are participating fully in this process as we have long
advocated for meaningful changes to enable a risk-based
approach.
Resilience modelling following the extreme weather
events in 2023 has informed us of the potential cost
to harden the network against the impact of climate-
change-related risks, including the cost of mitigating
the impact of wind and vegetation on the overhead
network. We have not included the full cost in our most
recent asset management plan, because we believe it
is not prudent that customers should fund this extra
expenditure when movement in government policy has a
potential to change the landscape for these investments
materially by adopting the changes being proposed by us
and others. The key change Vector and the industry have
long promoted is to strengthen a lines business’ ability to
assess and remove ‘at risk’ trees in a wider ‘fall zone’, as
distinct from the current, highly narrow, ‘trim zone’.
We commenced a significant project in Ngataringa Bay
in Devonport. This initiative is notable for addressing
a number of challenges typical of what we see at a
wider scale, being sustained growth from residential
development, the electrification of public transport
requiring capacity upgrades, and climate change
modelling that shows a risk from sea-level rise. The
project will see the network reconfigured to also enable
the disestablishment of the Ngataringa Bay zone
substation to mitigate the risk of inundation.
NEW ENERGY DATA CAPABILITIES
We’re receiving energy use data from smart meters
for half-hour intervals, for every day of the year, for the
vast majority of connections on our network. We’re also
receiving voltage and other power quality data from
around a third of our connections, and we’re working to
extend this to include the rest of the network.
With the data now flowing, we’ve been busy
developing new capabilities to benefit our customers.
–Better connection conversations – we can now
remotely analyse available capacity for new
commercial connections on any transformer on
our network, and bring this information more
quickly into discussions with customers wanting
to connect. This has the potential to improve
the current practice, which involves deploying a
physical instrument to measure the data over time,
and then conducting an analysis.
–EV monitoring – we’ve developed an ‘EV tracker’ to
monitor where EVs are appearing, at a suburb level.
This helps us analyse network impact of EV growth.
–Verifying phase connections – we have begun
analysing power quality data to determine
which phase of the transformer each individual
connection is supplied by. This has the potential
to help us in a number of ways, most notably
in improving the accuracy of our targeted
communications to customers ahead of
planned work.
23
Business segment reports

Reducing emissions and improving safety on the
gas network
As reported in previous years, we conduct routine
surveying of the entire gas network to proactively detect
and fix small leaks. This year, we increased the frequency
of surveys from 12 monthly to six monthly. This improves
safety and also leads to carbon emissions from these
leaks reducing, as they are found and fixed faster. This
year we’ve seen a similar twin-benefit of improved safety
and reduced emissions, from a lower number of third-
party damage to our gas network. Third-party damage
is typically when a contractor or DIYer strikes a gas
pipe, causing a leak. These types of incidents have been
lower this year, which has corresponded with us running
an enhanced public awareness campaign to increase
understanding of the steps that can be taken to prevent
this occurring.
Transport electrification
Through our collaboration with Auckland Transport
we’re aligning the timing of investments for the
electrification of ferries, to make sure capacity is
accessible when needed.
We’re also working together on a road map of future bus
depot electrification projects, helping both Vector and
Auckland Transport to plan ahead effectively, by utilising
our distributed energy resources management system. At
the two depots which have already been electrified, we’re
communicating “Dynamic Operating Envelopes” that set a
maximum amount of electricity available to charge buses,
based on network conditions, and updating this every 15
minutes to ensure the depots – and all other commercial
and residential customers – have the electricity they need.
We’re using a digital platform called Diverge, developed by
Vector Technology Solutions, to do this.
For the adoption of private EVs, we’ve developed an EV
forecast model based on observed take-up rates and
analysis of customer EV charging behaviour. Given there
is significant uncertainty over the rate of EV adoption
since the removal of incentives like the clean car discount,
we’ve used a moderated EV growth forecast to ensure
prudent investment outcomes. Policy development
around smart home EV charging (as already adopted in
the UK) could provide greater confidence in the potential
for smart and scheduled management of EV load to
reduce the impact of EV charging during network peak
times, and optimise network reinforcement investment.
Digital and cloud-first infrastructure
We’ve continued our migration to cloud-first
infrastructure, with significant progress on a new data
centre that’s vastly more resilient, with a mix of on-
premises and cloud-based services which provides
improved reliability, stability and cyber security for our
critical applications.
Affordability
Our environment is one where infrastructure costs
across the board are high, and investment is needed
in many sectors. We believe the way to achieve this,
and for more long-term affordability for customers, is
through more efficient use of the infrastructure we’ve
already built. For an electricity distribution network,
this means considering the use of lower-cost, non-wire
alternatives where economic to do so, and effective
orchestration of manageable load.
We’re doing this by maintaining investment on
digital enablement, including systems, platforms and
capabilities, while also working at specific customer
sites to implement flexible and responsive connections
designed to smooth network utilisation at peak times.
We’re engaging with government and regulators to
advocate for regulatory and governmental legislative
support to fully realise the potential customer benefits
of lower-cost electrification.
Regulated networks
Vector Annual Report 202424

Business segment reports
25
Adjusted EBITDA
Adjusted EBITDA for the gas trading
segment (consisting of Vector
Ongas and Liquigas, with natural gas
classified as discontinued operations)
is up $10.6 million on the prior year
to $22.6 million. This year-on-year
increase was driven by favourable
conditions for Vector Ongas, with
lower LPG input costs due to lower
international Saudi Aramco prices,
plus higher prices and volumes.
Volumes
Bottle Swap has seen a 0.2%
decrease in the number of 9kg
bottles swapped in the year to
30 June, compared with the prior
year. LPG volumes for the year are
up 5.4% compared to the prior year,
due to higher bulk swap sales.
Diverge
One of the key elements of Vector’s Symphony strategy
is to use digital platforms and data to deliver customer
and network benefits. Diverge, an energy data platform
co-developed by Vector Technology Solutions (VTS) and
AWS through our strategic alliance, was developed to
help Vector deliver its strategy, and to be commercially
available for other utilities locally and globally.
Diverge currently supports Bluecurrent, delivering a
mix of consumption data to the market for billing, and
power quality data to distribution networks. Bluecurrent
has more than 2.5 million meters owned and managed
across Australia and New Zealand. Diverge is also used
by Vector to better leverage energy data in its electricity
network, for example in providing a range of services
through greater visibility of the low-voltage network, and
enabling the provision of dynamic operating envelopes
for smart electric bus charging. Both of these examples
are described in more detail on page 23.
Equalise cyber security
We’ve continued to maintain and improve our cyber
security posture, recognising the global nature of
threats to critical infrastructure. We’ve been deliberate
about bringing to market the investments we’ve made,
by building service offerings with the aim of uplifting
capability across New Zealand’s electricity distribution
businesses and bringing together key organisations
to better protect themselves and promote security
awareness. We do this by providing access to hard-to-find
talent, partnerships, and thought-leadership to help drive
a step-change in maturing a cyber security capability
whilst avoiding large upfront costs.
Tapestry
Tapestry is another collaboration we have with X,
formerly Google X, on two digital platforms for the energy
sector, concerning the physical assets on an electricity
network. These tools include ‘GridAware’, which uses
new technology including drones and applies machine
learning and modern AI processes to survey and guide
maintenance of the network. This enhances the job of
traditional network inspection, which is much more
labour intensive, through greater efficiency and new
inspection techniques. Another, the ‘Grid Planning Tool’,
creates robust network simulations that incorporate
optimised solutions for new technology and the growth
of customer-owned devices like batteries and EV
chargers, to ensure an efficient network.
We’ve extended our agreement to continue with this
project, with our chief engineer leading the work
within Vector, and intend to deploy Grid Aware into our
operations in the coming year.
As announced earlier this year, we entered into a conditional
agreement to sell the remaining contracts of Vector Natural
Gas Trading business. This transaction was completed on 1
July 2024. On 26 July 2024 (after the balance date for these
full-year results), we also announced the conditional sale, for
$150 million, of the two remaining businesses that comprise
our Gas Trading segment, being Vector Ongas and our 60.25%
shareholding in Liquigas. We’re currently working to seek
satisfaction of the sale conditions.
Gas trading
Vector Technology
Solutions
25
Business segment reports

Governance report
Governance report
Vector’s board is committed to maintaining high
standards of corporate governance, ensuring
transparency and fairness, and recognising the interests
of our shareholders and other stakeholders.
The board has an established set of guiding principles
that state that the company will:
–be a leading commercial enterprise with a reputation
for delivering results through sound strategy;
–have entrepreneurial agility, being the first to identify
opportunities and bring them to market;
–be a great employer which values knowledge
and talent;
–strive to ensure that everyone who does work for
Vector goes home healthy and safe;
–deal fairly and honestly with its customers; and
–be a good corporate citizen.
Vector’s governance practices are informed by the
NZX Listing Rules (NZX Rules), the NZX Corporate
Governance Code (2023) (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, any takeover offer would need to
involve Entrust.
Vector’s key corporate governance documents, including
board and committee charters and policies, can be found
at 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:
–enable the board to provide strategic guidance for
Vector and effective oversight of management;
–clarify the roles and responsibilities of Vector’s
directors and senior executives in order to facilitate
board and management accountability to both Vector
and its shareholders; and
–ensure 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.
In carrying out its responsibilities and powers, the
board recognises its overriding responsibility to always
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 its employees
and representatives.
Vector achieves board and management accountability
principally through its board charter, which sets out
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, while the board has statutory
responsibility for the activities of the company, this is
This section of the annual report is an overview of Vector’s corporate governance
framework, approved by the board, for the financial year ended 30 June 2024.
Vector Annual Report 202426
Governance report

exercised through the delegation to the group chief
executive, who is accountable for the day-to-day
leadership and management of the company.
The main functions of the board include:
–reviewing and approving the strategic, business and
financial plans prepared by management;
–monitoring performance against the strategic,
business and financial plans;
–appointing, delegating to and reviewing the
performance of the group chief executive;
–approving major investments and divestments;
–ensuring ethical behaviour by the company, board,
management and employees; and
–assessing its own effectiveness in carrying out
its functions.
The board charter sets out the expectation that all
directors continuously educate themselves to ensure that
they may perform their duties.
A committee or individual director may engage separate
independent professional advice in certain situations,
at the expense of the company, with the prior approval
of the chair of the board. The board also has access
to executives within the Vector group as a means of
receiving expertise and 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 way
Vector’s affairs are managed, controlled and operated.
The board regularly assesses its effectiveness in carrying
out its functions and responsibilities. The board chair and
the committee chairs review and evaluate the board and
committees against their respective charters. The board
chair also engages with individual directors to evaluate
and discuss performance and professional development.
Externally facilitated reviews of the board’s performance,
including its committees, are carried out from time
to time. The board last participated in an externally
facilitated review in 2022 and another review is currently
underway for 2024.
The group chief executive is supported by the Vector
executive team. Details of the members of the executive
team are set out in the management team section on
pages 46 and 47 of this annual report and in the About Us
section of Vector’s website (vector.co.nz/about-us/board-
executive-team). Members of the Vector executive team
have regular access to the board.
Board membership
Vector’s board comprises experienced directors from
diverse backgrounds and who govern the company on
behalf of its shareholders and other stakeholders. The
directors are committed to maintaining high standards
of corporate governance, ensuring transparency and
fairness and recognising the interests of 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 resident
in New Zealand. The board currently comprises seven
directors, all of whom are non-executive and ordinarily
reside in New Zealand. Biographies are set out on pages
44 and 45 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, as illustrated in the skills
and experience matrix on the following page. The board
recognises that a regular refreshment programme leads
to the introduction of new perspectives, skills, attributes
and experience. As required, the board strengthens
its oversight of issues in all disciplines by seeking
expert advice.
27
Governance report

Strategic focusNumber of directorsDescription
Leadership
Senior executive or director leadership experience in comparable organisations,
including through a period of significant change or disruption, hiring and
terminating a CEO and providing constructive feedback to the CEO to support
their performance and development. Understanding of the boundaries and
interfaces between the board and management.
Strategy and
commercial
acumen
Executive or director experience assessing and testing strategic objectives and
plans for complex businesses, translating strategic objectives into concrete
plans and capital allocation decisions, bringing a ‘bigger picture’ view, holding
management to account in implementing strategy and communicating
strategy and commercial performance to investors and shareholders.
Understanding of the organisation’s commercial and economic drivers.
Customers and
community
Understanding of the organisation’s value proposition to current and
prospective customers, the drivers of customer experience and changing
customer expectations, the market position and brand proposition of Vector
within the energy sector. Experience living and working in communities
outside of major metropolitan New Zealand.
Industry
experience
Senior executive or director experience in the energy industry. Understanding
of regulated networks and the end to end energy sector. This includes
knowledge of the current challenges and potential future scenarios that may
impact on energy distribution networks.
Social and
environmental
Understanding of shifting community expectations, including community
perspectives on environmental and social impact. Developments in climate
change risk, climate change impacts and policy responses, evolving
disclosure and reporting requirements on climate change and ESG, business
opportunities arising from sustainability. Experience as a director or senior
executive integrating sustainability or ESG principles into all facets of company
decision-making or chairing a board sustainability or ESG-focused committee.
People and
culture
Understanding of tools to shape and assess workplace culture and
engagement. Workforce risks, including health and wellbeing, harassment
and wage negotiation issues. Experience as a director or executive monitoring
culture and performance, setting objectives and KPIs for executives and
holding executives to account, designing remuneration structures, overseeing
talent management, retention and executive succession plans or chairing a
board remuneration or people committee.
Governance, risk
and compliance
Experience as a non-executive director of comparable organisations including
overseeing compliance requirements and frameworks, setting risk appetite
and monitoring conformance, overseeing risk management and internal
auditors, or chairing a board risk, compliance or governance committee.
Understanding the governance requirements and expectations of a listed
company, and how to meet them in practice and the importance to the
organisation’s reputation in governance.
Regulatory and
government
policy
Director or executive experience identifying and resolving regulatory issues,
engaging with government Ministers, departments or advisers and engaging
with regulators. Understanding of the regulatory and policy landscape as it
relates to the energy distribution industry and stakeholder expectations.
Financial
acumen
Director or executive experience analysing, interpreting and challenging
financial statements, engaging with or overseeing external auditors, overseeing
forecasts, analysing and challenging business cases or chairing a board audit
committee. Deep knowledge of auditing and accounting issues relevant to the
preparation of financial statements.
Technology
Senior management or director experience with knowledge of information
technology, data management and security. Overseeing a material cyber
security incident. Understanding of the organisation’s required information
technology architecture, systems and risks. Understanding of innovation,
developments and trends in digital technology, such as cloud computing, AI
and data analytics.
Digital and
innovation
Senior management or director experience overseeing a digital transformation
program including the development of customer centric digital service and
product delivery. Understanding of relevant innovation, developments and
trends shaping digital evolution and disruption and the impacts, risks and
opportunities from digital innovation.
Board skills and experience
Key
Expert Advanced Capable Limited
Vector Annual Report 202428
Governance report

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 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 for the
purposes of the NZX Rules and Code: Doug McKay who
is Vector’s chair, Bruce Hassall, Dame Paula Rebstock,
Bruce Turner and Anne Urlwin. Dr Paul Hutchison and
Alastair Bell represent Vector’s majority shareholder
Entrust and are therefore not independent directors
due to that association. Directors are required to inform
the board of all relevant information which may affect
their independence.
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 securities by directors is not a
requirement. Directors’ ownership interests are listed on
pages 112, 113 and 117 of this annual report.
Director period of appointment
0-3 years3-9 years9 years +
Number of
directors430
Board committees
There are four board committees: an audit committee,
a nominations committee, a people and remuneration
committee and a risk and assurance committee.
Members of each committee may be recommended
by the nominations committee and 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 board may also form additional committees as
needed and committees relating to the electricity and
gas asset management plans met during the reporting
period. The company secretary has unfettered access to
the chairs of the board and the committees.
The members and chairs of each committee are:
COMMITTEEMEMBERS
Audit committeeAnne Urlwin (chair)
Alastair Bell
Bruce Hassall
Nominations committeeDoug McKay (chair)
Paula Rebstock
Paul Hutchison
People and remuneration committee Paula Rebstock (chair)
Alastair Bell
Bruce Turner
Anne Urlwin
Risk and assurance committeeBruce Turner (chair)
Paul Hutchison
Bruce Hassall
In addition to the committee members, the other directors have standing invitations to attend committee meetings.
The group chief executive, management and other guests are regularly invited by the relevant chair to attend board
and committee meetings also. Employees of Vector can only attend audit committee meetings by invitation.
29
Governance report

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 MEETINGS1464431
A Bell 1362
†
43
‡
1
A Carter*32111
B Hassall**63
§
3
§
1
†
P Hutchison 132
†
41
‡
31
J Mason (chair)*421111
D McKay (chair)*** 146
†
4
‡†
331
P Rebstock 134
‡†
431
B Turner 144
‡†
43
§
3
‡
1
A Urlwin 1461
‡
3
§
3
‡
1
* Retired 28 September 2023.
** Appointed 31 October 2023.
*** Appointed as chair of the board, 28 September 2023.
† Director attending the committee meeting who is not a member of the committee.
‡ Director retired as a committee member, 1 November 2023.
§ Director was appointed a committee member, 1 November 2023.
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 and climate reporting, the
independence and performance of the external auditors,
and effectiveness of the internal control system for
financial and climate 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 at least 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 must be an independent director and cannot be the
chair of the board.
All members of the audit committee have specialist
financial skills and experience.
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
at least three members, being directors of Vector.
People and Remuneration Committee
Vector has a people and remuneration committee as
discussed in the remuneration report on page 37.
Nominations Committee
The board has a nominations committee to assist
with the selection, appointment and re-election of
directors and coordinating director appointments with
Entrust, consistent with Entrust’s rights under Vector’s
constitution. 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 must comprise at least three
members, being directors of Vector, the majority of whom
are independent directors.
Vector Annual Report 202430
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 in New Zealand and to report 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 external auditor independence 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 2024. The audit committee has determined that
there are no matters that have affected the auditor’s
independence. The external auditor independence policy
also contains guidelines for what services (other than the
statutory audit role) the external auditor can provide. 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 8 of the notes to the financial
statements contained on page 70 of this annual report.
KPMG was paid $1.4 million for services in the financial
year to 30 June 2024. Of this sum, $1.1 million was for
audit-related services and $0.3 million was for non-audit-
related services. Non-audit-related work did not exceed
25% of the amount paid for audit work. Further detail is
provided on page 70 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 management is
essential for corporate stability, high performance and
the success of its strategic objectives and vision. To drive
sustainable growth and ensure operational resilience,
it is important to anticipate risks to its 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 risk management
standard ISO31000. 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 is
promoted through:
–the group risk function partnering with business
units to continue to enhance risk management at
operational, executive team and board level;
–embedding of risk assessments and discussions
within key decision making processes; and
–continuous development through both internal and
external reviews.
Vector continues to review and mature its ERM
framework to reflect the evolving context within which
it works. The company engages 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
manage those risks effectively. 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 operational and financial risks which are
assessed and managed as part of meeting key
business objectives and maintaining operational
resilience.
Vector’s group material risks are shown on the following
page. Risks 2, 3, 4 and 5 include Vector’s risks in relation to
the impacts of climate change. Refer to Vector’s climate-
related disclosures report for information on Vector’s
climate-related risks and opportunities.
31
Governance report

Vector group’s material risks
1
Cyber security compromise.
2
Adverse or unanticipated change to government policy
affecting the electricity or gas business, or legislative/
regulatory settings related to the Commerce Act (Part
IV), Electricity or Gas Act, or Electricity Industry Act.
3
Government policy and regulatory settings fail to
enable the electricity network to adapt and transition to
changing demand and affordability causing inefficient
capital spend and reliability challenges.
4
External shock event, including natural disaster,
major weather events and other physical
climate-related impacts.
5
Adverse or unanticipated government responses or
unrealised opportunities from climate change.
6
Adverse or unanticipated impacts or unrealised
opportunities from emerging technologies.
7
Adverse or unanticipated government responses to
generation shortfalls and increased prices.
8
Breach of regulatory quality standards, SAIDI or SAIFI.
9
Inability to develop, retain and recruit specialised talent.
10
Serious harm or fatality event.
11
Major/repeated disruption of critical services due
to non-performance of internal processes.
12
Societal challenges, financial pressures or workplace
factors negatively impacting on Vector staff’s mental
health and wellbeing.
13
Failure to collect, protect or create value from
information and intellectual property.
14
Reputational damage/adverse impacts on
stakeholder confidence.
15
Failure or poor performance of critical third parties
(including service providers, suppliers and
partnerships).
16
Funding, liquidity, cash flow and credit risk due to
uncertain economic conditions and market risks.
Gas transition
Inability to efficiently manage
peak electricity load
Energy platforms
Increase in extreme weather events
Refer to Vector’s climate-related disclosures report
Distributed energy resources
direct link to
Climate-related risks
Climate-related opportunities
Vector Annual Report 202432
Governance report

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 17 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.
Internal audit
Vector’s business performance and 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 has unrestricted access to all
Vector’s businesses, staff and records. The team liaises
closely with KPMG, as Vector’s external auditor, to share
the outcomes of the internal audit programme.
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 code of conduct and ethics is highlighted
to new staff being inducted at Vector, and is promoted
regularly through the company’s internal communication
channels. The code of conduct and ethics is generally
reviewed every two years.
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 is not right, including raising a concern
with a relevant manager. These options include in person,
by phone, email, post and 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 trading in New Zealand. 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.
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 copy is available on Vector’s website
at vector.co.nz/investors/governance. A diversity,
inclusion and wellbeing council, made up of senior
management representatives, provides governance over
the implementation of the policy. Vector has dedicated
resources to drive the diversity, inclusion and wellbeing
programme of work.
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 equitable pay and this does not
start and finish with gender; it also includes age and
ethnicity in the scope of annual pay equity reviews.
Remuneration at Vector is based on performance and
within this framework. Vector makes adjustments when
appropriate to ensure equity across like-for-like roles. This
has become part of business as usual at Vector and the
company regularly monitors and adjusts salaries across
all three categories (gender, age, ethnicity) if any gaps are
identified. This year, Vector is reporting its gender pay gap
in the remuneration report on page 39. Its overall diversity
and inclusion programme is focused on improving the
gender balance across all tiers of Vector with a continued
focus on performance and merit-based recruitment
and promotion.
33
Governance report

Gender statistics
Vector’s gender statistics are as follows:
AS AT 30 JUNE 2024AS AT 30 JUNE 2023
POSITIONFEMALEMALE
GENDER
DIVERSEFEMALEMALE
GENDER
DIVERSE
Directors2 (28.6%)5 (71.4%)–2 (25.0%)6 (75.0%)–
Executive team1 (14.3%)6 (85.7%)–1 (12.5%)7 (87.5%)–
Direct reports to the executive team9 (22.5%)*31 (77.5%)–15 (32.6%)31 (67.4%)–
Across the Vector group318 (32.6%)658 (67.4%)–475 (34.9%)886 (65.1%)–
* 4 of the female direct reports that departed since 30 June 2023 were part of the Vector Metering transaction.
Investor engagement
Vector recognises the rights of shareholders as the
owners of the company and encourages their ongoing
active interest in the company’s affairs by:
–communicating with them effectively;
–ensuring they have full access to information about
the company, including through the Vector website;
–conducting shareholder meetings in locations and
at times convenient to the majority of shareholders,
where possible; and
–providing 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 market
briefings in conjunction with the release of the annual
and interim financial results. Transcripts of the briefings
are available on the annual reports page of the Investor
section of Vector’s website. Each shareholder is entitled
to receive a hard copy of each annual and interim report.
The company has a shareholder meetings page in the
Investors section on its 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 and reviews the annual
report. 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 governance factors.
The 2023 annual meeting was held as a hybrid
meeting. All shareholders had the opportunity to
attend, participate and vote either in person or online.
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 affecting
Vector. A dedicated email 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 118 of this annual report.
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,
the board encourages investors to 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 Investors section
of Vector’s website. For the 2023 annual meeting, the
notice of meeting was made available and published
on the Vector website at least 20 working days before
the meeting.
Vector Annual Report 202434
Governance report

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 securities takes
place in an efficient, competitive
and informed market. Vector’s
continuous disclosure policy sets
out protocols to facilitate effective
and compliant disclosure. Vector
has also established a management
disclosure committee which meets
regularly to discuss continuous
disclosure matters.
35
Governance report

On behalf of the people and remuneration committee and the board, I am pleased to introduce Vector’s
remuneration disclosures, noting the following:
–Vector operates a market-competitive remuneration policy which aims to attract and retain high-
performing senior executives by recognising and rewarding individual and company performance.
–Senior executive remuneration is composed of total fixed annual remuneration and an annual short-
term incentive (STI) programme with invitation-only participation. The STI programme recognises and
rewards annual company performance across key business performance stretch objectives, which vary
across the regulated and non-regulated businesses in the group. Actual incentive payments are typically
less than the potential and in the last year ranged between 0% and 109%.
–Board oversight is applied to all senior executive remuneration decisions, and discretion is able to be
exercised for the payment of the STI.
–The company does not currently operate any long-term incentive programme for any employee.
–The STI potential for the group chief executive was updated this year to 65% of base salary per annum
(at target) with an upside opportunity capped at 120% of target i.e. 78% of base salary. The reason
for this change is the absence of a long-term incentive (which Vector does not currently offer) and
benchmarking identified an imbalance with the market for the group chief executive role.

Dame Paula Rebstock
Chair, People and Remuneration Committee
26 August 2024
Letter from the people and
remuneration committee chair
Remuneration report
Remuneration report
Vector Annual Report 202436
Remuneration report

Remuneration governance
Vector Limited has a people and remuneration
committee (committee) comprising Paula Rebstock
(chair), Alastair Bell, Bruce Turner and Anne Urlwin. The
table below details the committee members’ tenure and
changes during the period.
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 policies of Vector. Evaluations are based on
criteria that include the performance of Vector and the
accomplishment of strategic objectives. In addition, the
committee oversees Vector’s people strategy including
attraction, retention, wellbeing, succession planning and
talent development.
The committee operates under a written charter. The
charter is available to view at vector.co.nz/investors/
governance. The majority of members are independent
directors. Other directors have a standing invitation to
attend committee meetings and management attends
committee meetings by invitation.
Attendance at committee meetings during the period is
shown on page 30.
Executive remuneration policy
Vector’s executive remuneration policy is available to
view at vector.co.nz/investors/governance. The number of
executives to whom this policy applies is seven (including
the group chief executive).
Executive remuneration at Vector is made up of base
salary, standard employee benefits and a short-term
incentive (STI). No long-term incentive (LTI) is currently
offered to Vector’s employees or its executives. The
percentage of target STI each executive member
(excluding the group chief executive) is eligible for varies
by employee but ranges from 35% to 40% of base salary.
Base salary is reviewed periodically based on data from
independent remuneration specialists. Employees’ base
salary 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.
The purpose of the STI scheme is to reward behaviour
and outcomes that are considered important for Vector’s
shareholders and customers, and is measured against
four overarching areas: financial, customer, HSE/people
and decarbonisation. Targets and measures may vary
by business area; however, these are aligned where
appropriate. The STI scheme is subject to a financial
(adjusted EBITDA) and health and safety gate, as well as
an individual performance gate.
Vector has not provided any joining bonus to executives
in the last financial year. Vector does not provide
“termination payments” to outgoing executives, nor
does it provide retirement payments at greater rates for
executives than other staff (if any at all).
External and independent advice
During the year, Vector Limited sought external and
independent advice from PricewaterhouseCoopers
International Limited (PwC) to provide advice on potential
incentive scheme designs and their implications.
This remuneration report contains disclosure of the
employees (other than employees who are directors)
who received remuneration and any other benefits in
their capacity as employees, the value of which was or
exceeded $100,000 per annum, in brackets of $10,000,
as required by the Companies Act 1993.
People and remuneration committee membership
NAMEDATE JOINED THE COMMITTEE
LENGTH OF MEMBERSHIP
TO 30 JUNE 2024DATE LEFT THE COMMITTEE
Paula Rebstock (chair)2 Dec 20194 years, 7 monthsn/a, current member
Alastair Bell2 Dec 20194 years, 7 monthsn/a, current member
Bruce Turner 1 Nov 20238 monthsn/a, current member
Anne Urlwin 1 Nov 20238 monthsn/a, current member
Tony Carter2 Dec 20193 years, 10 months28 Sept 2023
Jonathan Mason25 Sept 20203 years28 Sept 2023
Paul Hutchison24 Feb 20221 year, 8 months1 Nov 2023
Key:
Current committee member Committee member in the period
37
Remuneration report

Key performance summary
Vector’s remuneration policy for executives and direct
reports to the executives (by invitation) 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). The STI is a variable element of
remuneration and is only paid, at the board’s discretion,
if an individual is delivering expected performance,
company financial and health and safety gates (achieving
at least 90% of group budgeted adjusted EBITDA and
no workplace fatalities during the incentive period as a
result of Vector’s policies and/or practices) are met, and
company performance goals have been achieved.
The STI scheme for FY24 recognises group and business
unit-level achievement of financial, customer, people
and health and safety, and decarbonisation performance
outcomes within the at-risk component of eligible
employees’ remuneration. The STI scheme does not
reward individual performance but acceptable individual
performance is a gate for payment.
The at-risk percentage of total remuneration for the
FY24 STI scheme ranges from 20% to 40% of base
salary depending on the role (excluding the group
chief executive).
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 115% for all eligible employees. As an example of
how STI is calculated, an employee with a base salary of
$150,000 and an STI element of 20% may receive between
$0 and $34,500 (0% to 115% of their STI) depending,
at the board’s discretion, on the level of business unit
and company performance once the gateways have
been achieved.
STI scheme payments relating to the financial year ended
30 June 2024 are delivered as a taxable cash payment and
are payable on completion of the annual audited financial
statements. Payments relating to the 2024 financial year
are therefore paid in the 2025 financial year.
FY24 Vector’s performance goals summary
PAYOUT % OF
GOALS
CORPORATE
BUS
ELECTRICITY
AND GAS
GAS
TRADINGFIBREHRVVTS
Financial
106%
(of 40%)
104%
(of 30%) BU
120%
(of 50%) BU
96%
(of 50%) BU
0%
(of 50%) BU
86%
(of 35%) BU
Customer
110%
(of 25%)
110%
(of 40%) BU
110%
(of 20%) BU
102%
(of 20%) BU
90%
(of 20%) BU
100%
(of 35%) BU
HSE
50%
(of 10%)
50%
(of 10%)
50%
(of 10%)
50%
(of 10%)
0%
(of 10%) BU
50%
(of 5%)
People
110%
(of 10%)
110%
(of 10%)
110%
(of 10%)
110%
(of 10%)
110%
(of 10%) BU
110%
(of 15%)
Decarbonisation
110%
(of 15%)
110%
(of 10%)
110%
(of 10%)
110%
(of 10%)
110%
(of 10%)
110%
(of 10%)
TOTAL102%102%109%95%0%
1
95%
Group chief executive remuneration
arrangements
Vector’s group chief executive is covered by the
executive remuneration policy that is available to view at
vector.co.nz/investors/governance. Group chief executive
remuneration at Vector is made up of base salary, standard
employee benefits, an STI and an upside opportunity.
Currently, there is no long-term incentive (LTI) or share
option scheme available at Vector, for the group chief
executive or any employees or executives. The group chief
executive has a target STI equating to 65% of base salary
with an upside opportunity capped at 120% of target i.e.
78% of base salary. The upside opportunity is based on
specific objectives which sit outside of the STI targets. The
STI performance measures are consistent across the group
chief executive and executive team and are outlined in the
key performance summary above.
The group chief executive’s base salary 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 certain
senior leadership roles.
1. FY24 STI gate not achieved.
Vector Annual Report 202438
Remuneration report

Group chief executive remuneration outcomes
FIXED
REMUNERATION
AT-RISK
REMUNERATION
TOTAL
REMUNERATION
EARNED
IN RELATIONSALARY BENEFITS SUBTOTALSTI OTHERSUBTOTAL
FY24$1,554,7220 $1,554,722$1,035,834$151,585
1
$1,187,419$2,742,141
FY23$1,487,7220 $1,487,722$673,216$424,000
2
$1,097,216$2,584,938
1. Upside opportunity
2. Transaction incentive
This table shows the amounts assessed as earned in relation to a financial year but not paid in that same financial year
(as the assessment of the STI performance hurdle is made after the balance date). For instance, the one-off discretionary
transaction incentive earned in relation to FY23 was paid in FY24 (July 2023) and the STI earned for FY23 was also paid in
FY24 (September 2023). The STI earned in relation to FY24 is expected to be paid in FY25 (September 2024).
A description of the group chief executive’s STI scheme for the performance period ending 30 June 2024 is set out below.
SCHEMEDESCRIPTIONPERFORMANCE MEASURES
PERCENTAGE OF
TARGET AWARDED
STISet to a target of 65% of base salary for FY24 on-plan
performance where the highest levels of company
performance measures are achieved. As set out on
page 38, the STI scheme is not based on an
individual’s performance, subject to gates.
Corporate performance goals
40% Financial
25% Customer
20% HSE and people
15% Decarbonisation
102.5% (see detail
below)
Upside
opportunity
Separate to the STI scheme, the potential to earn
additional upside of up to 120% of the target 65% STI
i.e. 78% of base salary.
Specific individual targets agreed
between the board and the
group chief executive
75%
The group chief executive’s STI outcomes are shown below:
PAYOUT % OF GOALSCORPORATE (INCLUDING GROUP CHIEF EXECUTIVE)
Financial106% (of 40%)
Customer110% (of 25%)
HSE50% (of 10%)
People110% (of 10%)
Decarbonisation110% (of 15%)
Like all corporate employees that are eligible for the STI, the group chief executive is awarded a percentage of the
STI available based on the group’s performance of the corporate weighted goals, and subject to the gates detailed
on page 38. Four other executives are measured on the corporate goals: the chief financial officer, the chief legal and
assurance officer, the chief public policy and regulatory officer and the chief people and communications officer.
The chief operating officer (COO) of electricity, gas and fibre is measured in accordance with the electricity and gas
business unit and the COO of Vector Technology Solutions (VTS) in accordance with the VTS business unit.
ESG disclosures
Gender pay gap
The gender pay gap measures the median pay (base pay only) between men and women regardless of the nature of work.
As at May 2024, the median gender pay gap is 13.0%. That is, women earn $0.87 for every $1.00 that men earn. As at May
2024, our median gender equity gap is less than 1.0%. The gender pay equity gap identifies any difference in the pay
men and women received for the same or similar jobs.
At Vector, the context behind our gender pay gap figure is that more senior technical roles and managerial roles
are currently held by men, which is common across the energy sector. In addition, higher salaries are sometimes
commanded for a specific skillset or talent shortages in some areas that are dominated by men. Our reported pay
gap is a result of these factors. More information on diversity and inclusion at Vector is included page 16 and in the
governance report on page 33.
39
Remuneration report

Remuneration bands
The number of current employees of the group and company receiving remuneration and benefits above $100,000 in
the year ended 30 June 2024 is set out in the tables below:
CURRENT EMPLOYEES (NZ$)GROUPCOMPANY
$100,000 - $110,00038
30
$110,001 - $120,0004027
$120,001 - $130,0003832
$130,001 - $140,0004844
$140,001 - $150,0003935
$150,001 - $160,0004732
$160,001 - $170,000 4734
$170,001 - $180,0003225
$180,001 - $190,0002317
$190,001 - $200,0002116
$200,001 - $210,000108
$210,001 - $220,000109
$220,001 - $230,000 109
$230,001 - $240,000 77
$240,001 - $250,000 55
$250,001 - $260,00055
$260,001 - $270,00076
$280,001 - $290,000 3 3
$290,001 - $300,0001 –
$300,001 - $310,0001 1
$310,001 - $320,0002 2
$320,001 - $330,0001 1
CURRENT EMPLOYEES (NZ$)GROUPCOMPANY
$330,001 - $340,00044
$340,001 - $350,00011
$350,001 - $360,00021
$360,001 - $370,00022
$370,001 - $380,00021
$380,001 - $390,00011
$400,001 - $410,00022
$410,001 - $420,00011
$420,001 - $430,00011
$430,001 - $440,00022
$440,001 - $450,00033
$500,001 - $510,00011
$510,001 - $520,00011
$620,001 - $630,00011
$650,001 - $660,00011
$660,001 - $670,00011
$830,001 - $840,00011
$970,001 - $980,00011
$1,080,001 - $1,090,00011
$1,110,001 - $1,110,00011
$2,650,001 - $2,660,00011
466377
Vector Annual Report 202440
Remuneration report

Remuneration bands (continued)
The number of former employees of the group and company receiving remuneration and benefits above $100,000 in
the year ended 30 June 2024 is set out in the tables below:
FORMER EMPLOYEES (INCLUDING ANY
TERMINATION PAYMENTS) CURRENT
EMPLOYEES (NZ$)
GROUPCOMPANY
$100,001 - $110,0008
4
$110,001 - $120,00096
$120,001 - $130,00096
$130,001 - $140,00033
$140,001 - $150,00042
$150,001 - $160,00044
$160,001 - $170,0001-
$170,001 - $180,00021
$180,001 - $190,00032
$220,001 - $230,0002-
$230,001 - $240,00022
$240,001 - $250,00011
$280,001 - $290,00011
$300,001 - $310,00011
$310,001 - $320,00011
$460,001 - $470,00011
$1,150,001 - $1,160,00011
5336
41
Remuneration report

Director remuneration
When determining the fees for non-executive directors,
the board considers the market, Vector’s remuneration
practices compared to similar companies, the
competitiveness of the prevailing level of remuneration
and its ability to meet the primary remuneration policy
objective of attracting and retaining high-quality
directors; and any changes in directors’ workloads.
A copy of Vector’s director remuneration policy is
available at vector.co.nz/investors/governance.
In 2022, a total non-executive director remuneration
pool of $1,087,020 was approved by shareholders for
FY24 onwards. This has not changed but note that this
fee pool was approved with a board of seven directors.
From 1 July 2023 to 28 September 2023, the number
of directors on the board was eight and in accordance
with Listing Rule 2.11.3, the amount of the fee pool was
increased as a consequence of the additional director (by
an amount necessary to enable the additional director
to be paid the average amount then being paid to each
non-executive director (excluding the chair)). Between
28 September 2023 and 31 October 2023 there were six
directors on the board until Bruce Hassall’s appointment
brought the board back to seven people.
Director remuneration is reviewed by the board from
time to time and normally biennially.
Directors receive different fees for membership of the
board, membership of committees and chair roles.
Directors are entitled to be reimbursed for reasonable
incidental costs associated with carrying out their duties
and professional development costs may also be paid by
Vector on a case-by-case basis.
The current fees by role are summarised in the following
table. The board allocates the total annual fee pool on
a consistent basis among the directors via a base fee
plus specified fees for each of the committee chair and
member roles held (excluding the board chair). The board
reserves the discretion to reallocate the total annual fee
pool, by resolution of the board, should the board need
to reconstitute the number of committees or number
of members on each committee.
GOVERNANCE BODYPOSITIONFEE FOR FY24
BoardChair$214,000*
Non-executive director**$107,000
Audit committeeChair$27,000
Member$15,000
Risk and assurance committeeChair$27,000
Member$15,000
People and remuneration committeeChair $20,000
Member$10,000
Pool for additional attendances$17,020
* The board chair is not paid additional fees as chair or member of the audit committee, risk and assurance committee or people and remuneration committee.
** During the period (from 1 July 2023 to 31 October 2023), there was a deputy board chair role that has been disestablished. The deputy board chair role was allocated
an additional $5,000 a year to reflect the workload of the role.
Fees payable to Vector’s directors for the 2024 financial year were as follows:
DIRECTORFEE ($)
D McKay219,587
A Bell132,000
A Carter* 33,000
B Hassall**91,702
P Hutchison127,000
J Mason***58,347
P Rebstock144,500
B Turner 146,500
A Urlwin 146,500
Total1,099,136
* Retired on 28 September 2023.
** Appointed on 31 October 2023.
*** J Mason’s fees include $6,010 paid in August 2023 recognising additional attendances in relation to the Vector Metering transaction. Retired on 28 September 2023.
Remuneration report
Vector Annual Report 202442

WHO
WE ARE
43
Who we are

Bruce Hassall
BCom, FCA (CAANZ), CMInstD
INDEPENDENT NON-EXECUTIVE DIRECTOR
―
Appointed on 31 October 2023
Bruce Hassall is an experienced director with extensive industry and sector knowledge
across the New Zealand economy in both listed and private companies. He is a chartered
accountant who has specialist expertise in financial reporting, information system
processes, risk management, business acquisitions and capital raising. Bruce is currently
the chair of The Farmers’ Trading Company Limited and Prolife Group Holdings Limited
and is a director of Fonterra Co-operative Group Limited. He was formerly the chair of
Fletcher Building Limited and the Senior Partner and CEO of PwC New Zealand.
Dr Paul Hutchison
MB, ChB, FRCOG, FACOG, Dip Com Health, Member of Institute of Directors
NON-INDEPENDENT NON-EXECUTIVE DIRECTOR
―
Appointed on 8 December 2021
Dr Paul Hutchison was elected to the AECT (now Entrust) in 2015. He is a clinician at Local
Doctors (formerly East Tamaki Healthcare,) 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 Hūnua from 1999 to 2014. He chaired the
Health Select Committee from 2008 to 2014 and was awarded the NZ Medical Association’s
award for outstanding contribution to health services in 2014. Paul was appointed as
Honorary Consul Papua New Guinea in 2022. His other interests include science and
innovation, sport, music and fishing and he enjoys spending time with his family.
Our board
Alastair Bell
BCom, CA, CMInstD, PMP, JP
NON-INDEPENDENT NON-EXECUTIVE DIRECTOR
―
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. Alastair chairs the Ōrākei Community Association. Formerly, he was deputy
chair of Foundation North and a trustee of the Motutapu Restoration Trust.
Who we are
Doug McKay
ONZM, BA, AMP (Harvard), CFInstD
INDEPENDENT NON-EXECUTIVE DIRECTOR AND CHAIR
―
Appointed on 29 September 2022
Doug McKay has over 35 years’ commercial and operational experience and a deep
understanding of New Zealand and Australian markets having held managing director
and chief executive positions with Lion Nathan, Carter Holt Harvey, Goodman Fielder,
Sealord, Independent Liquor and Proctor & Gamble. He was the inaugural chief executive
of the amalgamated Auckland Council from May 2010 to December 2013 and a former
director of Fletcher Building Limited, Genesis Energy Limited and Ryman Healthcare
Limited. He retired as chair of Bank of New Zealand on 31 May 2024 and as Trustee (chair)
of the Eden Park Trust Board on 30 June 2023. In 2015, Doug was made an Officer of the
New Zealand Order of Merit for services to business and local government. He currently
holds directorships with IAG New Zealand and National Australia Bank Limited.
Vector Annual Report 202444
Our board

Bruce Turner
BE (Hons), ME, BCom
INDEPENDENT NON-EXECUTIVE DIRECTOR
―
Appointed on 16 April 2019
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, he was extensively involved in the development of the
energy industries in New Zealand, Singapore and Europe. Bruce was a member of the
New Zealand Electricity Market (NZEM) despatch rules working group, the NZEM Rules
Committee, the MARIA governance board and the Electricity Authority’s Security and
Reliability Council. This deep understanding of the sector is invaluable as Vector, and the
energy industry, navigates the challenges of climate change and increasing demand for
clean electricity supply. As well as the Vector board, his governance experience includes
joint venture boards for both Mercury and Fonterra. Bruce is a director of GlobalDairyTrade
Holdings Limited and an advisory board member at the University of Colorado’s JP Morgan
Center for Commodities.
Anne Urlwin
BCom, FCA, CFInstD, MAICD, ACIS, FNZIM, ONZM
INDEPENDENT NON-EXECUTIVE DIRECTOR
―
Appointed on 1 September 2021
Anne Urlwin is a professional director with experience in a diverse range of
sectors including construction, property development, health, infrastructure,
telecommunications, renewable energy, regulation and financial services. Her current
governance roles include chairmanship of Precinct Properties New Zealand, and
directorships of Infratil, Ventia Services Group and City Rail Link. Anne is a former director
of Summerset Group Holding, Queenstown Airport Corporation, Tilt Renewables,
Chorus, and Meridian Energy, and a former chair of national commercial construction
group Naylor Love Enterprises and the New Zealand Blood Service. She is a chartered
accountant with experience in senior finance management roles. Anne was made an
Officer of the New Zealand Order of Merit in 2022 for services to business.
Dame Paula Rebstock
BSc (Econ), Dip & MSc (Econ), DCNZ
INDEPENDENT NON-EXECUTIVE DIRECTOR
―
Appointed on 16 April 2019
Dame Paula Rebstock is a leading Auckland-based economist and company director,
who was made a Dame Companion of the New Zealand Order of Merit in 2015. She is
chair of NZ Healthcare Investments (Awanui), National Hauora Coalition, and Ngāti
Whātua Ōrākei Whai Maia, and Deputy Chair of AIA and the NZX, and a director of
Bluecurrent Group, SeaLink Group and Auckland One Rail. Dame Paula is the former chair
of the New Zealand Commerce Commission.
45
Who we are

Shailesh Manga
BTech, Optoelectronics (Hons)
CHIEF OPERATING OFFICER, VECTOR TECHNOLOGY SOLUTIONS
―
Shailesh Manga leads Vector Technology Solutions (VTS) and is responsible for driving its
growth. Specifically, he is charged with building relationships with key global partners to
co-develop digital platforms critical to a new energy future. Shailesh has a strong focus
on local and global customer opportunities to increase revenue and deliver key aspects of
our business strategy. 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 delivered innovative experiences for some of the world’s largest brands
including Google, Microsoft, Samsung, and LG. He has been an owner/founder in a user
experience consulting business as well as an SaaS Product company (Optimal Workshop)
that services around half of the Fortune 500 companies.
Jason Hollingworth
MCom (Hons), FCA, CMInstD
CHIEF FINANCIAL OFFICER
―
Jason Hollingworth joined Vector as chief financial officer in May 2019. He has over 30
years’ experience in a range of senior corporate finance roles including being CFO of public
listed pay television company Sky TV, CFO of telecommunications company TelstraClear,
investment manager for the diversified investment company Ngāi Tahu Holdings,
executive director at Asian private power development company AsiaPower and a director
of corporate advisory firm Southpac Corporation. Jason has a Master of Commerce degree,
is a Fellow of the Institute of Chartered Accountants ANZ and a member of the Institute
of Directors.
Simon Mackenzie
Grad DipBS (Dist), DipFin, NZCE
GROUP CHIEF EXECUTIVE
―
Simon Mackenzie is passionate about the power of technology to transform the energy
industry and consumers’ lives. As group chief executive, he has expanded and driven
Vector’s portfolio of businesses to embrace innovative technologies and strategies to
deliver efficient, sustainable energy solutions to consumers. Simon was appointed Vector’s
group chief executive in 2008. His tertiary qualifications include engineering, finance and
business studies, and the Advanced Management Programme at the Wharton School,
University of Pennsylvania.
John Rodger
LLB, BA
CHIEF LEGAL AND ASSURANCE OFFICER AND COMPANY SECRETARY
―
John Rodger is Vector’s chief legal and assurance officer and company secretary. He
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.
Our management team
Vector Annual Report 202446
Our management team

Mark Toner
LLB (Hons), BCom
CHIEF PUBLIC POLICY AND REGULATORY OFFICER
―
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 and
analytics 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 recipient of the New Zealand Prime
Minister’s Business Scholarship and in 2018 completed an Advanced Management
Programme at MIT in Boston.
Peter Ryan
BE
CHIEF OPERATING OFFICER ELECTRICITY, GAS AND FIBRE
―
Peter Ryan is responsible for the strategic operations of Vector’s electricity, gas and fibre
network businesses and the digital operations. He has 20 years’ international experience
within the telecommunications and energy industries, leading engineering, field and
operational teams, and customer operations in the deployment, operations and maintenance
of telecommunications, electricity and gas networks. Most recently, Peter was the chief
network officer 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.
Sarah Williams
BA, Cert. Journalism
CHIEF PEOPLE AND COMMUNICATIONS OFFICER
―
Sarah Williams 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. Sarah is a senior leader with 30 years’ experience, and has had a range
of leadership roles at an executive and board level spanning public relations and human
resources remits. She joined Vector from Porter Novelli, a public relations and marketing
agency, where she held the position of Managing Director. Her experience encompasses
crisis management, reputation and stakeholder engagement, workforce planning, wellbeing
and people development. In 2019, Sarah was inducted into the College of Fellows of the
Public Relations Institute of New Zealand in recognition of her significant contribution to the
industry and high levels of competence.
47
Who we are

Entrust, majority
shareholder of Vector
Entrust, majority shareholder of Vector
Here for the community
Entrust is proud of the work it has undertaken for its
beneficiaries and all Aucklanders.
Passing on a share of Vector’s profits
to beneficiaries
Vector’s growth and operating performance enables
Entrust to distribute an annual dividend to beneficiaries
through its 75.1% stake in Vector.
Advocacy on behalf of energy consumers
Entrust regularly advocates on behalf of energy
consumers on important matters. Submissions are
available on Entrust’s website, entrustnz.co.nz.
Enabling projects with direct benefit
Entrust has an agreement with Vector that requires an
average of $10.5 million
1
to be invested in projects in
the Entrust district of central, east and south Auckland
every year.
In the year to 30 June 2024, key undergrounding projects
have been undertaken in St Heliers and Parau Street
(Mt Roskill), with further resident-initiated projects
undertaken in Glenfell Place (Epsom), Lawrence Street
(Herne Bay) and Campbell Road (Maraetai).
In September 2023, each of
Entrust’s 358,500 beneficiaries
was eligible to receive a $334
dividend, plus an additional $30
Loss Rental Rebate payment on
behalf of Vector – that’s more than
$130 million going straight into the
Auckland economy.
More than 300 undergrounding projects have been
completed since the programme began, in central,
east and south Auckland.
Energy consumer trust Entrust was formed over 30 years ago to ensure that stewardship
across Auckland’s electricity network remains in the hands of Aucklanders. Entrust acts
in the interests of its 365,000 (as at 2024 roll date) families and businesses in central, east
and south Auckland. Entrust protects the $2.8 billion investment in Vector through its
role in the appointment of directors to Vector’s board and requiring regular audit of the
state of the network.
1. Effective from 1 July 2024, this amount has increased to $12.5 million, subject to adjustment.
2. Chair until 13 August 2024, deputy chair from 13 August 2024.
3. Deputy chair from 11 June 2024, chair from 13 August 2024.
4. Appointed 26 July 2024.
RACHEL ADAMS LANGTON
4
DENISE LEE
3
DR PAUL HUTCHISON
WILLIAM CAIRNS (CHAIR
2
)ALASTAIR BELL
Vector Annual Report 202448

OTHER
DISCLOSURES
Other disclosures
Other disclosures
49

Joint ventures
and investments
Joint ventures and investments
60.25
%
LIQUIGAS
Vector Investment Holdings Limited (a wholly owned subsidiary of
Vector) holds a 60.25% shareholding in Liquigas Limited, New Zealand’s
leading company for tolling, storage and distribution of bulk LPG.
Liquigas has staff and depots in Auckland, New Plymouth, Christchurch
and Dunedin.
liquigas.co.nz
On 26 July 2024 (after balance date for these full-year results), we announced the conditional sale of
our 60.25% shareholding in Liquigas.
50
%
Bluecurrent
JOINT VENTURE
Bluecurrent (formerly Vector Metering) is a leading provider of innovative
smart metering services and solutions in New Zealand and Australia, with
a track record of more than 15 years. Bluecurrent is jointly owned by QIC
and Vector.
bluecurrent.com.au
8.1
%
mPREST
Our shareholding in mPrest has been sold after balance date.
mprest.com
Vector Annual Report 202450

Operating statistics
YEAR ENDED 30 JUNE20242023
ELECTRICITY
Customers
1, 5
624,330612,909
New connections15,95915,865
Net movement in customers
2
11,42112,797
Volume distributed (GWh)8,7548,552
SAIDI (minutes)
3
Normal operations – unplanned98.4118.7
Normal operations – planned55.843.9
Major network events14.1292.3
Total168.3454.9
GAS DISTRIBUTION
Customers
1,4
120,354119,631
New connections1,9342,691
Net movement in customers27231,636
Volume distributed (PJ)13.013.6
GAS TRADING
Natural gas sales (PJ)54.25.4
Gas liquid sales (tonnes)44,16541,896
9kg LPG bottles swapped6587,814589,207
Liquigas LPG tolling (tonnes)106,750106,496
1. As at 30 June.
2. Net number of customers added during the period, includes disconnected,
reconnected and decommissioned installation control points (ICPs).
3. SAIDI minutes for the regulatory year ended 31 March (audited).
4. Billable ICPs.
5. Excludes gas sold as gas liquids. On 1 July 2024, Vector Gas Trading Limited
completed the sale of the remaining contracts in its natural gas business
to Nova Energy Limited. Accordingly, we will not be reporting natural gas
operating performance beyond 30 June 2024.
6. Number of 9kg LPG bottles swapped and sold during the year.
51
Other disclosures

Five-year financial
performance
Five-year financial performance
YEAR ENDED 30 JUNE ($ MILLION)20242023202220212020
PROFIT OR LOSS
Total revenue – continuing operations
1
1,141.21,082.71,009.7941.9951.0
Adjusted EBITDA – continuing operations
1
365.2320.2325.4335.3329.3
Depreciation and amortisation – continuing
operations
1
(230.8)(204.7)(174.2)(172.6)(165.3)
Adjusted EBIT – continuing operations
1
134.4115.5151.2162.7164.0
Net profit – continuing operations
1
79.9102.294.9125.636.5
Total revenue – discontinued operations100.3368.4329.3337.4343.0
Adjusted EBITDA – discontinued operations16.6203.1184.6178.2160.7
Depreciation and amortisation – discontinued
operations–(53.4)(95.9)(90.2)(81.5)
Adjusted EBIT – discontinued operations16.0149.788.788.079.2
Net profit – including discontinued
operations
2
91.01,715.8160.9194.697.3
BALANCE SHEET
Total equity3,776.73,958.02,430.12,335.42,259.7
Total assets7,125.67,527.66,812.26,519.56,380.9
Economic net debt
3
2,128.61,933.13,296.83,110.62,918.1
CASH FLOW
Operating cash flow445.1517.1518.8499.1397.3
Capital expenditure(488.7)(639.0)(558.8)(516.2)(476.4)
Dividends paid(234.9)(169.9)(169.1)(165.8)(167.0)
KEY FINANCIAL MEASURES
Adjusted EBITDA/total revenue
1
32.0%29.6%32.2%35.6%34.6%
Adjusted EBIT/total revenue
1
11.8%10.7%15.0%17.3%17.2%
Equity/total assets53.0%52.6%35.7%35.8%35.4%
Return on assets (adjusted EBITDA/assets)
1
5.1%4.3%4.8%5.1%5.2%
Gearing
4
36.2%33.1%58.2%56.8%55.5%
Net interest cover (adjusted EBIT/net interest
costs) (times)2.91.82.12.21.8
Earnings (NPAT) per share (cents)8.9171.515.919.39.5
Dividends declared, cents per share24.0022.2516.7516.7516.50
1. Excludes contribution from natural gas business (sold on 1 July 2024) and metering segment (sold on 30 June 2023) for all periods present.
2. One-off items included in total net profit: FY24 includes a $60.6 million non-cash impairment (includes $0.6 million related to discontinued operations). FY23
includes a $1,509.9 million gain on the 50% sale of the metering operations. FY22 includes a $40.2 million non-cash impairment. FY20 includes a $32.0 million non-
cash impairment.
3. Economic net debt is borrowings and lease liabilities net of cash and cash equivalents and deposits.
4. Gearing is defined as economic net debt to economic net debt plus adjusted equity. Adjusted equity means total equity adjusted for hedge reserves.
Vector Annual Report 202452

FY24FY23FY22FY21FY20
490.0
329.3
513.5
335.3
510.0
325.4
523.3
320.2
381.8
365.2
0
100
-100
200
300
400
500
600
700
ADJUSTED EBITDA
$ MILLION

REGULATED NETWORKS

GAS TRADING

CORPORATE AND OTHER

DISCONTINUED
OPERATIONS – METERING

DISCONTINUED
OPERATIONS – NATURAL GAS

TOTAL GROUP

TOTAL CONTINUING
OPERATIONS

REGULATED NETWORKS

GAS TRADING

CORPORATE AND OTHER
1


DISCONTINUED OPERATIONS – METERING

DISCONTINUED OPERATIONS – NATURAL GAS

TOTAL GROUP

TOTAL CONTINUING OPERATIONS
REVENUE
$ MILLION
0
300
600
900
1200
1500
FY24FY23FY22FY21FY20
914.5
1,279.3
965.6
1,339.0
1,082.7
1,451.1
1,141.2
1,241.5
951.0
1,294.0
-100
1. Includes eliminations of transactions between
segments, and with discontinued operations.
OPERATING CASH FLOWS
$ MILLION
0
50
100
150
200
250
300
350
400
450
500
550
FY24FY23FY22FY21FY20
397.3
499.1
518.8
517.1
445.1
10.7%
1.9%
87.4%
F
Y
2
4
F
Y
2
3
11.5%
60.3%
1.4%
26.8%
CAPITAL EXPENDITURE

REGULATED NETWORKS

GAS TRADING

DISCONTINUED OPERATIONS – METERING

CORPORATE AND OTHER
63.8%
36.2%
F
Y
2
4
F
Y
2
3
33.1%66.9%

ECONOMIC NET DEBT

ADJUSTED EQUITY
SOURCE OF FUNDING – GEARING
AS AT 30 JUNE
53
Other disclosures

Non-GAAP
financial information
Vector’s standard profit measure
prepared under New Zealand
Generally Accepted Accounting
Practice (GAAP) is net profit.
Vector has used non-GAAP profit
measures when discussing financial
performance in this document.
The directors and management
believe that these measures
provide useful information as they
are used internally to evaluate the
performance of business units, to
establish operational goals and
to allocate resources. For a more
comprehensive discussion on the use
of non-GAAP profit measures, please
refer to the policy ‘Reporting non-
20242023
YEAR ENDED 30 JUNE ($ MILLION)
Segment adjusted EBITDA
SEGMENT
EBITDA
LESS CAPITAL
CONTRIBUTIONS
AND OTHER
MOVEMENTS
SEGMENT
ADJUSTED
EBITDA
SEGMENT
EBITDA
LESS CAPITAL
CONTRIBUTIONS
AND OTHER
MOVEMENTS
SEGMENT
ADJUSTED
EBITDA
Regulated segment601.0 (193.8)407.2 558.9 (187.3)371.6
Gas trading22.6 – 22.6 12.0 – 12.0
Total reported segments623.6 (193.8)429.8 570.9 (187.3)383.6
Corporate and other(100.1)35.5 (64.6)(75.6)12.2 (63.4)
Total – continuing operations523.5(158.3)365.2 495.3 (175.1)320.2
Discontinued operations -
natural gas16.6 –16.6 14.9 –14.9
Discontinued operations -
metering–––188.2 –188.2
Total group540.1 (158.3)381.8 698.4 (175.1)523.3
GAAP to Non-GAAP Reconciliation
YEAR ENDED 30 JUNE ($ MILLION)
Group EBITDA and adjusted EBITDA20242023
Reported net profit for the period (GAAP) – continuing operations79.9 102.2
Less: interest income(52.0)(11.8)
Add back: interest costs104.6157.5
Add back: depreciation and amortisation230.8204.7
Add back: impairment60.0 –
EBITDA – continuing operations523.5 495.3
Adjusted for:
Associates (share of net (profit)/loss)24.9 –
Capital contributions(195.2)(188.3)
Fair value change on financial instruments12.0 13.2
Adjusted EBITDA – continuing operations365.2 320.2
Adjusted EBITDA – discontinued operations16.6 203.1
Total group adjusted EBITDA381.8 523.3
GAAP profit measures’ available on
our website (vector.co.nz).
Non-GAAP profit measures are
not prepared in accordance with
New Zealand International Reporting
Standards (NZ IFRS) and are not
uniformly defined; therefore,
the non-GAAP profit measures
reported in this document may
not be comparable with those
that other companies report and
should not be viewed in isolation
from or considered as a substitute
for measures reported by Vector in
accordance with NZ IFRS.
Definitions:
EBITDA
Earnings before interest, taxation,
depreciation, amortisation
and impairments from
continuing operations
Adjusted EBITDA
EBITDA adjusted for fair value
changes, associates, third-party
contributions, and significant
one-off gains, losses, revenues
and/or expenses.
Non-GAAP financial information
Vector Annual Report 202454

FINANCIALS

CONTENTS
Financial Statements
Profit or Loss 57
Other Comprehensive Income 58
Balance Sheet 59
Cash Flows 60
Changes in Equity 61
Notes to the Financial Statements 62
Independent Auditor’s Report 102
Financial Statements
2024 FINANCIAL STATEMENTS
These financial statements for the year ended 30 June 2024 are dated 26 August
2024, and signed for and on behalf of Vector Limited by:
Chair 26 August 2024
Chair, audit committee 26 August 2024
And management of Vector Limited by:
Group Chief Executive 26 August 2024
Chief Financial Officer 26 August 2024
Vector Annual Report 202456

Profit or Loss
for the year ended 30 June
NOTE
2024
$M
2023
$M
Continuing operations
1
:
Revenue71,141.21,082.7
Operating expenses8(580.8)(574.2)
Depreciation and amortisation(230.8)(204.7)
Interest income952.011.8
Interest costs 10(104.6)(157.5)
Impairment of goodwill14(60.0)–
Fair value change on financial instruments24.2(12.0)(13.2)
Share of net profit/(loss) in joint ventures17.1(24.9)–
Profit/(loss) before income tax180.1144.9
Income tax benefit/(expense)18(100.2)(42.7)
Net profit/(loss) for the period from continuing operations79.9102.2
Net profit/(loss) for the period from discontinued operations5,611.11,613.6
Net profit/(loss) for the period 91.01,715.8
Net profit/(loss) for the period attributable to
Non-controlling interests 2.41.5
Owners of the parent – continuing operations77.5100.7
Owners of the parent – discontinued operations11.11,613.6
Basic and diluted earnings per share (cents)
Continuing operations27.37.810.1
Discontinued operations27.31.1161.4
Total8.9171.5
1 The comparative information is restated due to a discontinued operation. Refer to note 6.
57
Financial statements

Other Comprehensive Income
for the year ended 30 June
NOTE
2024
$M
2023
$M
Net profit/(loss) for the period91.01,715.8
Other comprehensive income net of tax – continuing operations
Items that may be re-classified subsequently to profit or loss:
Net change in fair value of hedge reserves24.3(29.5)(3.0)
Translation of foreign operations(1.5)(8.2)
Items that will not be re-classified subsequently to profit or loss:
Share of other comprehensive income of joint ventures17.11.9–
Fair value change on financial asset17.2(8.3)(3.4)
Other comprehensive income for the period net of tax – continuing operations(37.4)(14.6)
Translation of foreign operations – discontinued operations–(3.4)
Total comprehensive income for the period net of tax53.61,697.8
Total comprehensive income for the period attributable to
Non-controlling interests 2.41.5
Owners of the parent – continuing operations40.186.1
Owners of the parent – discontinued operations11.11,610.2
Vector Annual Report 202458

Balance Sheet
as at 30 June
NOTE
2024
$M
2023
$M
CURRENT ASSETS
Cash and cash equivalents1177.489.9
Short-term deposits1127.2447.1
Trade and other receivables13100.0124.3
Contract assets97.785.2
Derivatives243.24.3
Inventories26.421.1
Contingent consideration1212.411.5
Intangible assets7.68.7
Income tax1820.233.6
Disposal group held for sale69.7–
Total current assets381.8825.7
NON-CURRENT ASSETS
Receivables131.067.4
Derivatives2483.2107.8
Contingent consideration1229.949.4
Investment in joint venture17.1684.2727.4
Investment in private equity17.20.58.8
Intangible assets141,132.11,208.1
Property, plant and equipment (PPE)154,667.24,385.3
Right of use assets (ROU)16.158.355.5
Income tax1885.389.3
Deferred tax192.12.9
Total non-current assets6,743.86,701.9
Total asset s7,125.67,527.6
CURRENT LIABILITIES
Trade and other payables20223.1271.2
Provisions212.320.6
Borrowings23249.5240.6
Derivatives240.50.5
Contract liabilities 73.972.7
Lease liabilities16.27.18.2
Income tax180.71.5
Total current liabilities557.1615.3
NON-CURRENT LIABILITIES
Provisions217.15.9
Borrowings231,789.02,028.2
Derivatives24165.7160.3
Contract liabilities6.811.0
Lease liabilities16.261.056.8
Deferred tax 19762.2692.1
Total non-current liabilities2,791.82,954.3
Total liabilities3,348.93,569.6
EQUITY
Equity attributable to owners of the parent3,761.53,942.8
Non-controlling interests in subsidiaries15.215.2
Total equity3,776.73,958.0
Total equity and liabilities7,125.67,527.6
Net tangible assets per share (cents)27.3262.2272.6
Gearing ratio (%)27.336.233.1
59
Financial statements

Cash Flows
for the year ended 30 June
NOTE
2024
$M
2023
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers1,232.41,409.8
Interest received 33.55.8
Payments to suppliers and employees(704.6)(713.6)
Interest paid(111.4)(164.9)
Income tax paid (4.8)(20.0)
Net cash flows from/(used in) operating activities26.1445.1517.1
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of PPE and software intangibles2.70.9
Purchase and construction of PPE (464.7)(601.5)
Purchase and development of software intangibles(24.0)(37.5)
Proceeds from contingent consideration1211.414.2
Proceeds from sale of discontinued operations5–1,690.7
Cash balance disposed in sale of discontinued operations5–(3.0)
Repayments of loans advanced95.6–
Proceeds from sale of investment in associate1.41.7
Other investing cash flows(15.4)0.3
Net cash flows from/(used in) investing activities(393.0)1,065.8
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings15.0539.0
Repayments of borrowings3(255.0)(1,425.5)
Dividends paid 3(234.9)(169.9)
Lease liabilities payments(9.6)(12.0)
Net cash flows from/(used in) financing activities(484.5)(1,068.4)
Net increase/(decrease) in cash and cash equivalents(432.4)514.5
Cash and cash equivalents at beginning of the period537.022.5
Cash and cash equivalents at end of the period104.6537.0
Cash and cash equivalents comprise:
Bank balances and on-call deposits77.489.9
Short-term deposits 27.2447.1
104.6537.0
Discontinued operations
The cash flows above reflect the entire Vector group cash flows for the year ended 30 June 2024. Refer to note 6 for separately
disclosed cash flows from discontinued operations. Comparative information also includes cash flows from discontinued
operations from Vector’s metering business, refer to note 5 for more information.
Vector Annual Report 202460

Changes in Equity
for the year ended 30 June
NOTE
ISSUED
SHARE
CAPITAL
$M
TREASURY
SHARES
$M
HEDGE
RESERVES
$M
OTHER
RESERVES
$M
RETAINED
EARNINGS
$M
NON-
CONTROLLING
INTERESTS
$M
TOTAL
EQUITY
$M
Balance at 30 June 2022880.0(0.1)58.710.01,465.416.12,430.1
Net profit/(loss) for the period––––1,714.31.5 1,715.8
Other comprehensive income––(3.0)(15.0)––(18.0)
Total comprehensive income––(3.0)(15.0)1,714.31.5 1,697.8
Dividends ––––(167.5)(2.4)(169.9)
Total transactions with owners––––(167.5)(2.4)(169.9)
Balance at 30 June 2023880.0(0.1)55.7(5.0)3,012.215.23,958.0
Net profit/(loss) for the period––––88.62.491.0
Other comprehensive income––(29.5)(7.9)--(37.4)
Total comprehensive income––(29.5)(7.9)88.62.453.6
Dividends 3–––– (232.5)(2.4)(234.9)
Total transactions with owners–––– (232.5)(2.4)(234.9)
Balance at 30 June 2024880.0(0.1)26.2(12.9)2,868.315.23,776.7
61
Financial statements

Notes to the Financial Statements
Note 1Company information63
Note 2Summary of material accounting policies63
Note 3Material transactions and events64
Note 4Segment information65
Note 5Discontinued operations – metering67
Note 6Discontinued operations – natural gas68
Note 7Revenue69
Note 8Operating expenses70
Note 9Interest income71
Note 10Interest costs71
Note 11Cash and cash equivalents and short-term deposits71
Note 12Contingent consideration72
Note 13Trade and other receivables72
Note 14Intangible assets74
Note 15Property, plant and equipment (PPE)76
Note 16Leases77
Note 17Investments79
Note 18Income tax expense/(benefit)82
Note 19Deferred tax83
Note 20Trade and other payables83
Note 21Provisions84
Note 22Fair values85
Note 23Borrowings87
Note 24Derivatives and hedge accounting89
Note 25Financial risk management 95
Note 26Cash flows98
Note 27Equity99
Note 28Related party transactions101
Note 29Contingent liabilities 101
Note 30Events after balance date101
Vector Annual Report 202462

1. Company information
Reporting entityVector Limited is a company incorporated and domiciled in New Zealand, registered under
the Companies Act 1993 and listed on the NZX Main Board (NZSX). The company is an FMC
reporting entity for the purposes of Part 7 of the Financial Markets Conduct Act 2013. The
financial statements comply with this Act.
The financial statements presented are for Vector Limited Group (“Vector” or “the group”) as
at, and for the year ended 30 June 2024. The group comprises Vector Limited (“the parent”)
and its subsidiaries (together referred to as “the group”).
In accordance with the Financial Markets Conduct Act 2013, where a reporting entity prepares
consolidated financial statements, parent company disclosures are not required.
Vector Limited is a 75.1% owned subsidiary of Entrust which is the ultimate parent entity for
the group.
The primary operations of the group are electricity and gas distribution, natural gas and LPG
sales, telecommunications and new energy solutions.
2. Summary of material
accounting policies
Statement of complianceThe financial statements comply with New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS), and other applicable Financial Reporting Standards,
as appropriate for Tier 1 for-profit entities. They also comply with International Financial
Reporting Standards.
Basis of preparationThe financial statements have been prepared in accordance with New Zealand Generally
Accepted Accounting Practice (NZ GAAP) as appropriate to Tier 1 for-profit entities.
They are prepared on the historical cost basis except for the following items, which are
measured at fair value:
—the identifiable assets and liabilities acquired in a business combination;
—certain financial instruments; and
—contingent consideration receivable and investment in private equity, as disclosed in the
notes to the financial statements.
The presentation currency is New Zealand dollars ($). All financial information has been
rounded to the nearest 100,000, unless otherwise stated.
The statements of profit or loss, other comprehensive income, cash flows and changes in
equity are stated exclusive of GST. All items in the balance sheet are stated exclusive of GST
except for trade receivables and trade payables, which include GST.
Material accounting estimates
and judgements
Vector’s management is required to make judgements, estimates, and apply assumptions that
affect the amounts reported in the financial statements. They have based these on historical
experience and other factors they believe to be reasonable. The table below lists the key areas
of judgements and estimates in preparing these financial statements:
Key areasJudgements / EstimatesNote
Valuation of contingent consideration receivableEstimates12, 22
Intangible assets: valuation of goodwillEstimates14
Property, plant and equipment: classification of costsJudgements15
Leases: assessment of lease term for perpetual leases and
leases with renewal optionsJudgements16
Valuation of derivative financial instrumentsEstimates22, 24
New standards and
interpretations adopted
A number of new standards and interpretations are effective from 1 July 2023, but they do not
have a material effect on the group’s financial statements. The financial statements for the
year ended 30 June 2024 have applied the amendment to NZ IAS 1 Presentation of financial
statements, specifically replacing the previous description of ‘significant’ with ‘material’ in
relation to accounting policies, estimates and judgements. The financial statements for the
year ended 30 June 2024 have applied the amendment to NZ IAS 12 Income taxes, relating to
deferred tax and the Pillar Two Model Rules, refer to notes 18 and 19 for details.
A number of new standards and interpretations are effective for annual periods beginning
on or after 1 July 2024 and earlier application is permitted, however the group has not early
adopted the new or amended standards in preparing these consolidated financial statements.
Vector has considered the impact of standards and interpretations not yet effective and do not
expect any of these to have a material impact.
63
Notes to the financial statements

3. Material transactions
and events
Material transactions and events that have impacted the financial year ended 30 June 2024:
Discontinued operationsIn December 2023, Vector Gas Trading Limited signed a conditional agreement with Nova
Energy Limited for the sale of the remaining contracts in the natural gas business. The sale
was completed on 1 July 2024. Refer to note 6 for further details and required disclosures
relating to the sale.
Loss rental rebatesVector distributed loss rental rebates (“LRRs”) of $17.9 million to customers on the Vector
electricity network in September and October 2023 at $30 per customer.
The new transmission pricing methodology (“TCM”) came into force on 1 April 2023. Under
the new TCM, distributors are required to pass through settlement residue to their customers,
being retailers or directly billed customers on a monthly basis. Therefore, Vector is no longer
able to apply LRRs to offset volume shortfalls or distribute LRRs to end users.
Commerce commission
decisions
On 13 December 2023, the Commerce Commission (the “Commission”) released its final
decision on the Input Methodologies Review (the “IM Review”) which is relevant to Vector’s
electricity and gas distribution businesses. The final decision confirmed a reduction in the
weighted average cost of capital (“WACC”) percentile for gas distribution businesses from 67%
to 50%.
On 29 May 2024, the Commission released the draft decision for Default Price-quality Path
4 (“DPP4”), which relates to the 5 years beginning 1 April 2025 for electricity distribution
businesses. The draft decision provides an expenditure allowance that aligns with Vector’s
submitted 2024 Asset Management Plan. These decisions impact the future cash flows we can
expect to earn from the regulated electricity and gas distribution businesses and are reflected
in the impairment testing of these cash generating units.
The Commission will release the final decision at the end of November 2024.
Debt programmeIn March 2024, Vector repaid $240.0 million of wholesale bonds.
During the year ended 30 June 2024, the group drew down $15.0 million and repaid $15.0
million of bank facilities for a net nil movement in facilities (year ended 30 June 2023: net
repayment of $636.0 million). Refer to note 23 for more details on borrowings.
Regulatory quality thresholdsFor the regulatory year to 31 March 2023, Vector was in breach of SAIDI due to the network
outages relating to cyclone Gabrielle and the Auckland floods of March 2023.
Vector and other electricity distribution businesses are in discussions with the Commission
regarding treatment of these exceptional events from a regulatory perspective. We were
tracking well below the regulatory SAIDI limits up to the 27 January 2023 floods. Our view
is that given the exceptional nature of the flood and cyclone events there is sufficient
uncertainty as to whether the Commission will take any action in relation to the 2023 technical
breach of SAIDI, that the criteria for raising a provision has not been met.
For the regulatory year to 31 March 2024, Vector was not in breach of SAIDI.
The Default Price-quality Path (“DPP”) for 2020-2025 requires electricity distribution
businesses to comply with the Extreme Event Standard. This is specified as a SAIDI value
exceeding 120 minutes in a 24 hour period or exceeding six million customer interruption
minutes in a 24 hour period.
In June 2023, Vector exceeded this threshold with an interruption of around 6.6 million
customer minutes following faults on the Wellsford-Warkworth sub-transmission circuit.
Vector will report this as a contravention of the Extreme Event quality standard in its 2024
compliance statement which will be published in August 2024. As required by the DPP
Determination, Vector will publish an additional Extreme Event Standard report along with its
compliance statement. This report will set out reasons for exceeding the standard and analysis
into the Extreme Event.
We have not recognised a provision in respect of this incident at 30 June 2024.
DividendsVector Limited’s final dividend for the year ended 30 June 2023 of 14.00 cents per share was
paid on 14 September 2023, comprising an ordinary unimputed dividend of 8.50 cents per
share and a special unimputed dividend of 5.50 cents per share. The total dividend paid was
$140.0 million.
Vector Limited’s interim dividend for the year ended 30 June 2024 of 9.25 cents per share
(unimputed) was paid on 9 April 2024. The total dividend paid was $92.5 million.
Liquigas Limited, a subsidiary of the group, paid dividends of $2.4 million to the company’s
non-controlling interests during the year ended 30 June 2024.
Vector Annual Report 202464

4. Segment information
SegmentsVector report on two reportable segments in accordance with NZ IFRS 8 Operating Segments.
These segments are reported internally to the group chief executive. This reporting is used to
assess performance and make decisions about the allocation of resources.
The segments are:
Regulated NetworksAuckland electricity and gas distribution services.
Gas TradingNatural gas and LPG sales, storage, and transportation.
Since Vector’s Annual Report for the year ended 30 June 2023, the natural gas business
has been reclassified as held for sale and is no longer included in the Gas Trading segment.
Details of the natural gas business can be found in note 6. Comparative information has
been updated to reflect this change. There have been no other changes to the two segments
and policies. Segment information is prepared and reported in accordance with Vector’s
accounting policies.
Intersegment transactions included in the revenues and operating expenses for each
segment are on an arm’s length basis.
Segment profitThe measures of segment profit reported are earnings before interest and tax (EBIT) and
earnings before interest, tax, depreciation, amortisation and impairments (EBITDA). Both are
non-GAAP measures that do not have a standardised meaning under NZ IFRS.
Activities not reported
in segments
Other activities engaged by the group comprise discontinued operations, shared services and
other business activities. Revenues generated by these activities are incidental to Vector’s
operations and/or do not meet the definition of an operating segment under NZ IFRS 8.
The results for these activities are reported in the discontinued operations note, and the
reconciliations of segment information to the group’s financial statements.
Interest income, interest costs, fair value change on financial instruments, gain on sale of
investment in associate, and associates (share of net profit/(loss)) are not allocated to the
segments.
Geographical informationThe group derives the majority of its revenue from external customers in New Zealand.
Major customersVector engages with four major customers, each of which contribute greater than ten percent
of the group’s revenue. These customers are large energy retailers. For the year ended 30 June
2024, the customers contributed $221.1 million (2023: $208.9 million), $118.3 million (2023: $112.5
million), $117.2 million (2023: $109.8 million) and $117.0 million (2023: $120.7 million) respectively,
which is reported across all segments.
65
Notes to the financial statements

4. Segment information continued
30 JUN 2024
12 MONTHS (audited)
REGULATED
NETWORKS
$M
GAS TRADING
$M
TOTAL
$M
External revenue:
Sales 753.0128.2881.2
Third party contributions193.8–193.8
Segment revenue946.8128.21,075.0
External expenses:
Electricity transmission expenses(188.9)–(188.9)
Gas purchases and production expenses–(63.5)(63.5)
Network and asset maintenance (82.7)(7.0)(89.7)
Employee benefit expenses(20.0)(10.9)(30.9)
Other expenses(54.2)(24.2)(78.4)
Segment operating expenses(345.8)(105.6)(451.4)
Segment EBITDA601.022.6623.6
Depreciation and amortisation(171.3)(11.4)(182.7)
Impairment(60.0)–(60.0)
Segment profit/(loss)369.711.2380.9
Segment capital expenditure446.09.7455.7
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
2024
REVENUE
$M
PROFIT/(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information1,075.0380.9455.7
Elimination of transactions with discontinued operations(3.9)––
Amounts not allocated to segments (corporate activities):
Revenue 68.768.7–
Third party contributions1.41.4–
Employee benefit expenses–(62.5)–
Other operating expenses–(82.0)–
Elimination of transactions with segments–11.2–
Depreciation and amortisation –(48.1)–
Interest income–52.0–
Interest costs–(104.6)–
Fair value change on financial instruments–(12.0)–
Share of net profit/(loss) in joint ventures–(24.9)–
Capital expenditure––54.4
Reported in the financial statements1,141.2180.1510.1
Vector Annual Report 202466

4. Segment information continued
30 JUN 2023
12 MONTHS (audited)
REGULATED
NETWORKS
$M
GAS TRADING
$M
TOTAL
$M
External revenue:
Sales 690.4118.8809.2
Third party contributions187.3–187.3
Other27.7–27.7
Segment revenue905.4118.81,024.2
External expenses:
Electricity transmission expenses(184.2)–(184.2)
Gas purchases and production expenses–(67.1)(67.1)
Network and asset maintenance (75.2)(6.5)(81.7)
Employee benefit expenses(18.4)(10.3)(28.7)
Other expenses(68.7)(22.9)(91.6)
Segment operating expenses(346.5)(106.8)(453.3)
Segment EBITDA558.912.0570.9
Depreciation and amortisation(157.7)(11.0)(168.7)
Segment profit/(loss)401.21.0402.2
Segment capital expenditure422.69.5432.1
Reconciliation to revenue, profit/(loss) before income tax and
capital expenditure reported in the financial statements:
2023
REVENUE
$M
PROFIT/(LOSS)
BEFORE
INCOME TAX
$M
CAPITAL
EXPENDITURE
$M
Reported in segment information1,024.2402.2432.1
Elimination of transactions with discontinued operations(7.6)––
Amounts not allocated to segments (corporate activities):
Revenue 65.165.1–
Third party contributions1.01.0–
Employee benefit expenses–(62.5)–
Other operating expenses–(78.1)–
Elimination of transactions with segments–12.1–
Depreciation and amortisation –(36.0)–
Interest income–11.8–
Interest costs(157.5)
Fair value change on financial instruments–(13.2)–
Capital expenditure––80.6
Reported in the financial statements1,082.7144.9512.7
5. Discontinued operations – metering
On 30 June 2023, Vector completed the sale of a 50% interest in its New Zealand and Australian metering business to
investment vehicles managed and advised by QIC Private Capital Pty Limited (QIC).
The disposal group was presented as discontinued operations in the 2023 Annual Report.
67
Notes to the financial statements

6. Discontinued operations – natural gas
In December 2023, Vector Gas Trading Limited signed a conditional agreement with Nova Energy Limited for the sale of the
remaining contracts in the natural gas business. Total consideration is $9.7 million, with $3.0 million paid on completion, and
the remaining consideration due in four instalments on a quarterly basis from 31 October 2024 to 31 July 2025. The sale was
completed on 1 July 2024.
At 30 June 2024, the natural gas business continued to meet the criteria to be classified as non-current assets held for sale,
in line with classification made in December 2023. The assets of the natural gas business relating to the contracts sold are
presented in the balance sheet of the financial statements as a disposal group held for sale.
The natural gas business was previously included in the group’s gas trading segment. The result of the disposal group for the
year to 30 June 2024 is presented in the profit or loss from discontinued operations in the financial statements. Comparatives
have been restated to show the discontinued operations separately from continuing operations.
Profit and loss of discontinued operations – natural gas
2024
$M
2023
$M
Revenue100.3109.6
Operating expenses(83.7)(94.7)
Depreciation and amortisation–(0.1)
Impairment of goodwill(0.6)–
Profit/(loss) before income tax16.014.8
Income tax benefit/(expense)(4.9)(4.4)
Net profit/(loss) for the period attributable to owners of the parent11.110.4
The natural gas business did not have any capital expenditure in the year ended 30 June 2024 (year ended 30 June 2023: nil)
Cash flows from discontinued operations – natural gas
2024
$M
2023
$M
Net cash flows from/(used) in operating activities11.612.2
Net cash inflow/(outflow)11.612.2
Revenue-natural gasThe group receives revenue from business customers for providing a supply of natural
gas over a contracted time period. Revenue is recognised over time that corresponds
with the customer’s consumption of natural gas and measured at the transaction price
of the contract.
The transaction price for a gas supply contract includes variable consideration in the form
of indexed pricing, volume pricing, and take or pay arrangements. The group estimates
the amount of variable consideration present in each contract using the expected value
method. Customers are billed monthly. A contract asset is recognised to account for
natural gas supplied but not billed to the customer at balance date.
Disposal group held for sale
30 JUN 2024
$M
Assets
Intangible assets 9.7
Total disposal group assets held for sale9.7
PoliciesVector classifies a disposal group as held for sale if its carrying amount will be recovered
principally through a sale transaction rather than through continuing use. The disposal
group is measured at the lower of carrying amount and fair value less cost to sell.
The two criteria that must be met to classify a disposal group as held for sale are:
—The disposal group is available for immediate sale in its present condition; and
—The sale transaction is highly probable.
A disposal group that is sold or held for sale is also reported as discontinued operations if it
meets the below criteria:
—It is a component of the group’s business, the operations and cash flows of which can be
clearly distinguished from the rest of the group; and
—It represents a separate major line of business or geographical area of operations.
Impairment on reclassification
to held for sale
The goodwill allocated to the natural gas business has been reclassified as held for sale at
30 June 2024, resulting in an impairment of $0.6 million.
Vector Annual Report 202468

7. Revenue
7.1 Revenue from contracts with customers
2024
$M
2023
$M
Regulated networks – sale of distribution services753.0718.1
Regulated networks – third party contributions193.8187.3
Gas trading sales128.2118.8
Other66.258.5
Total 1,141.21,082.7
Revenue streamsSatisfaction of performance obligation
Regulated networks –
sale of distribution services
The group receives revenue from
business customers and energy
retailers who sell energy to end
customers for electricity and gas
distribution services in Auckland.

Revenue from electricity and gas distribution services is measured at the value of
consideration received, or receivable, to the extent that pricing is determined by the
regulator within a defined revenue path.
Revenue is recognised over time on a basis that corresponds with end consumers’
pattern of electricity and gas consumption. Customers are billed monthly in arrears for
distribution services, including both a fixed portion, and variable pricing measured in
units of electricity and gas distributed. Revenue from distribution services therefore
includes an accrual for services provided but not billed at the end of the month.
The accrual is determined based on the group’s estimate of volume distributed in the
month using the most recent data available. A large portion of the contract assets at
balance date consists of this accrual.
Regulated networks – third party
contributions
The group receives contributions
from residential and commercial
customers towards the construction
of distribution system assets in
the Auckland electricity or gas
distribution networks.

Third party contributions are recognised as revenue over time, reflecting the
percentage completion of the underlying construction activity. The group recognises
a contract liability to account for consideration received from the customer but where
the agreed construction activity is not completed; and conversely a contract asset is
recognised to account for activities completed not billed.
The transaction price for third party contributions is netted against estimated rebates
payable to commercial customers. A contract liability is recognised to account for
payments received from customers for construction activities completed which are
eligible for rebates in the future based on completion of developments.
In the event that a contract combines a contribution towards an agreed construction
activity with sale of electricity or gas distribution services, the group unbundles the
contract into two performance obligations and recognises revenue in accordance
with each obligation’s accounting policy.
Gas trading sales
Sale of LPG – comprises bulk LPG
sales to commercial customers
and bottled LPG sales to both
commercial and residential
customers.
Revenue is recognised at a point in time when LPG is delivered to a customer’s site.
Billing to a customer occurs after completion of deliveries and at the end of each
month with payment terms ranging from 60 days to 90 days.
Distribution of LPG – The group
provides services in the areas of
bulk LPG storage, distribution and
management.
Revenue is recognised over time in line with a customer’s consumption of monthly
tolling and storage volumes and measured at the transaction price of the contract.
The transaction price for a monthly tolling and storage contract includes variable
consideration in the form of volume pricing and take or pay arrangements. The group
estimates the amount of variable consideration present in each contract using the
expected value method.
Other revenue streamsOther revenue includes telecommunications revenue and revenue from providing
energy solution services.
Telecommunications revenue from commercial customers comprise the sale of
fibre services. Revenue is recognised at the point in time of supply and customer
consumption.
Energy solutions services comprise predominantly the sale of home and commercial
ventilation and solar services. Revenue is recognised over time, reflecting the
percentage completion of each ventilation and solar system install.
69
Notes to the financial statements

7. Revenue continued
7.2 Revenue in relation to contract liabilities
The following table sets out the expected timing of future recognition of revenue relating to performance obligations not
satisfied (or partially satisfied) at balance date:
2024
1 - 2 YEARS
$M
2 - 4 YEARS
$M
TOTAL
$M
Electricity distribution services2.0–2.0
Telecommunication services1.7–1.7
Total3.7–3.7
2023
1 - 2 YEARS
$M
2 - 4 YEARS
$M
TOTAL
$M
Electricity distribution services1.71.22.9
Telecommunication services3.4–3.4
Total5.11.26.3
PoliciesNo information is provided in relation to the remaining performance obligations at 30 June
2024 or 30 June 2023 that have an original duration of one year or less as permitted by
NZ IFRS 15 Revenue from Contracts with Customers.
Revenue recognisedOf the revenue recognised this year, $54.6 million was included in the contract liability balance
at the beginning of the reporting period. (2023: $51.7 million).
8. Operating expenses
NOTE
2024
$M
2023
$M
Electricity transmission 4188.9184.2
Gas purchases and production 463.567.1
Energy solutions cost of sales15.117.9
Network and asset maintenance 489.781.7
Other direct expenses65.676.7
Employee benefit expenses493.491.2
Administration expenses15.516.6
Professional fees8.88.1
IT expenses32.023.7
Other indirect expenses 8.37.0
Total 580.8574.2
Fees paid to auditorsFees were paid to KPMG as follows:
—audit or review of financial statements: $664,000 (2023: $643,250);
—regulatory assurance: $401,000 (2023: $385,000);
—other assurance fees: $80,500 (2023: $89,000);
—non-audit fees: $284,200 (2023: 143,738).
Other assurance fees include fees for the audit of guaranteeing group financial statements,
bond registers, and assurance over greenhouse gas calculations. Non-audit fees related to
advisory services for R&D tax credits and climate-related disclosures.
Vector Annual Report 202470