Vector delivers strong 2026 result

Market Release
18 August 2026

Vector delivers strong 2026 result and record
investment in Auckland’s electricity network

 Group net profit after tax $240 million
 Adjusted EBITDA
1
$482 million
 Gross capital expenditure $544 million
 Final dividend 13.5 cents per share
2

 10kw dynamic solar exports announced
 Record investment into Auckland’s electricity network
3


Vector Group (NZX: VCT) today released its financial results for the 2026 financial year.

Vector group chief executive Chris Blenkiron said the business is performing well and this is
shown in the latest results.

"This year we've focused on disciplined execution across our key deliverables of customer
outcomes, safety, and operational and financial performance. That’s resulted in a set of strong
financial results and leaves us well positioned to continue delivering the services and
infrastructure our customers rely on”, Mr Blenkiron said.

Adjusted EBITDA, which excludes capital contributions, was $482 million, up 20%, and driven
by a 12% increase in revenue. This reflects the first full year of the Commerce Commission's
electricity distribution pricing reset which took effect nationally on 1 April 2025. Group net profit
after tax was $240 million. Gross capital expenditure was $544 million, with $191 million of
capital contributions recognised in the year.

During the year, record investment into Auckland’s electricity exceeded half a billion dollars, a
dynamic 10kw solar export limit was announced to help more solar owners maximise their
investment, and 13,017 new homes and businesses were connected to the electricity network.

Mr Blenkiron said, “We invested a record $512 million in Auckland’s growing electricity network
this year. Demand continues to evolve as the city expands, while EVs, solar and other

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 will be paid to shareholders who are on the register at 9 September
2026, with payment made on 21 September 2026.
3
Gross capital expenditure for the Electricity segment was $512 million. Reported
segments are Electricity, Gas Distribution, and Other.

technologies reshape how existing customers use energy. We will build on this momentum by
investing at record levels again next year to expand capacity, strengthen resilience and help
customers benefit from an increasingly electrified future.”

“As we continue investing, we will also keep our focus on ensuring customer prices are as low
as possible. We are carefully prioritising investment, improving how we plan and operate the
network, and using new technologies to get more from existing infrastructure.”

"We enter the new financial year with a strong business and clear priorities. We will continue
listening to our customers and delivering the reliable, resilient and future-ready network
Auckland’s communities need.”

The Board has determined an unimputed final dividend of 13.5 cents per share, taking the full
year dividend to 26 cents per share.


Business segment FY25 FY26 % change
Electricity
- Revenue excluding capital contributions
- Capital contributions
- Adjusted EBITDA
- Total connections

$764m
$196m
$352m
632,106

$905m
$183m
$440m
642,134

+18%
-7%
+25%
+1.6%
Gas distribution
- Revenue excluding capital contributions
- Capital contributions
- Adjusted EBITDA
- Total connections

$67m
$13m
$47m
120,621

$69m
$8m
$47m
119,991

+2%
-43%
+0%
+0.5%

Guidance

For financial year to 30 June 2027 Vector’s guidance range is shown below, demonstrating
continued high levels of investment into Auckland’s electricity network:

Adjusted EBITDA: $540 million – $560 million
Gross Capex: $605 million – $635 million
Capital Contributions: $160 million – $190 million

ENDS


Investor contact
Jason Hollingworth, chief financial officer
Jason.hollingworth@vector.co.nz 021 312 928

Media contact
Matt Britton, communications Manager

Mattthew.britton@vector.co.nz 021 224 2966


About Vector
Vector is an innovative New Zealand energy company, delivering energy and communication
services to more than 640,000 residential and commercial customers across New Zealand.
Vector is listed on the New Zealand Stock Exchange with ticker symbol VCT. Our majority
shareholder, with voting rights of 75.1%, is Entrust. For further information, visit
www.vector.co.nz.

---

ANNUAL REPORT 2026
Powering up

Electrification
is happening
Our Auckland community is growing, electrifying
and demanding more from its energy system than
ever before. More homes, more businesses, more
renewable energy and more electric vehicles are
reshaping the city.

We’re stepping up to meet that challenge –
providing the infrastructure, technology and
expertise needed to help Auckland move forward
with confidence.

Vector Annual Report 2026

ELECTRICITY CONNECTIONS
642,
134
13,017 ADDED IN THE LAST YEAR
1

$5.4
billion

2Vector Annual Report 2026

Accelerating
momentum
Meeting future energy needs requires long-term
thinking and investment. Over the next 10 years,
we’ll invest $5.4 billion in the electricity network,
technology and capability needed for a more
electrified future. From expanding network capacity
and strengthening climate resilience to enabling
greater uptake of electric vehicles, solar energy
and emerging technologies, we’re building the
foundations for a brighter energy future.
billion
OF CAPITAL INVESTMENT
OVER THE NEXT 10 YEARS
3

As we invest for tomorrow, we’re also focused
on delivering what customers need today.
Through smarter planning, better use of
technology and disciplined investment, we’re
helping keep energy reliable and resilient.
And we’re focused on delivering real value,
efficiently, for our customers.

Because progress only matters
if our customers benefit from it.
Delivering more
half a
billion
dollars
4

Vector Annual Report 2026

half a
billion
dollars
MORE THAN
WAS INVESTED INTO AUCKLAND’S
ELECTRICITY NETWORK
5

The benefits of a stronger energy network extend far beyond
our lines. With at least 75% of our dividends returned to
Auckland consumers, the value we create for Auckland stays
within our communities, supporting local people, businesses
and communities to thrive.

Because when Auckland powers up, New Zealand does too.
$255 million
IN DIVIDENDS RETURNED
TO SHAREHOLDERS IN FY2026
Enabling Auckland
6

Vector Annual Report 2026

This annual report
is published as part
of a reporting suite,
which also includes
our climate statement.
Both reports are
available at
vector.co.nz.
2026 REPORTING SUITE
About this report
This report, dated 17 August 2026, is a review of Vector’s financial
and operational performance for the year ended 30 June 2026.
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
19
20
Business segment reports
Electricity
Gas distribution
21
22
24
Governance and remuneration
Governance report
Remuneration report
26
28
37
Who we are
Our board
Our management team
Entrust, majority shareholder of Vector
46
48
50
52
Other disclosures
Operating statistics
Five-year financial performance
Non-GAAP financial information
53
54
55
57
Financials
Financial statements
Notes to the financial statements
Independent auditor’s report
58
59
65
101
Statutory information
Directory and financial calendar
106
115
Contents
7

Performance snapshot
Financial and operational
26
cents per share
full-year dividend
$544m
$240m
SHAREHOLDER
DIVIDENDCAPITAL EXPENDITURE
NET PROFIT AFTER TAX
$482m
ADJUSTED EBITDA
Achieved
ELECTRICITY RELIABILITY MEASURES
Community meetings held with customers in
north, west, south, east and central Auckland
CUSTOMER
642,134
ELECTRICITY CONNECTIONS
119,991
GAS CONNECTIONS
10kW
dynamic solar exports
announced
8
Performance snapshot
Vector Annual Report 2026

company-wide staff
engagement
82%
PEOPLE AND CULTURE
65,326
71.8
%
ENVIRONMENT
electric vehicles in Auckland, up more
than 10,000 in a year, requiring a safe
and reliable network to charge from
new absolute scope 1 and 2 emissions
reduction target by FY2040 from a
FY2020 baseline
1

1. Excluding electricity distribution losses.
Environmental, social and governance (ESG)
1,462
HEALTH AND SAFETY
critical risk control
verification site visits
We disclose comprehensive governance
information on page 28
GOVERNANCE
9
Performance snapshot

POWERING UP
New Zealand’s energy opportunity is to
power more of the economy with affordable,
reliable electricity. While our electricity
system is already highly renewable, much
of the energy used in transport, industry
and homes still comes from higher-cost and
higher-emission fuels. The opportunity now
is to accelerate electrification so customers
can benefit from cleaner, more efficient and
more affordable energy.
This matters because energy affordability,
reliability and availability are central concerns
for homes, businesses and the wider economy.
Electrification can reduce overall energy costs,
improve resilience and support economic
growth, while also lowering emissions.
Vector’s network is essential to making
that future possible. We connect customers
to the capacity, technologies and choices
electrification requires. As demand
grows and the way customers use energy
changes, electricity distribution needs
sustained investment in growth, reliability
and resilience.
Throughout the year, we’ve maintained a
strong focus on disciplined execution across
our key priorities of customer outcomes, safety,
and operational and financial performance.
We’ve continued to invest significantly in the
services and infrastructure our customers rely
on, while preparing the network for increasing
electrification and the future energy needs of
our customers and communities.
A BUSINESS PERFORMING WELL
Vector is performing strongly. We’ve seen increases in
revenue, and our balance sheet is healthy. In the second
half of the year an uplift in the pace of our capital delivery
programme, as previously signalled, has seen more than
half a billion dollars of capital investment delivered in a
year. This matters because disciplined investment in our
networks underpins the service we provide to customers
and performance our shareholders expect. Vector is well
positioned for the future, with our regulated networks
providing resilient earnings, and our prudent debt
management giving us options for delivering value to
our customers and shareholders.
1. Continuing operations excludes the results f rom Ongas and Liquigas, which are classed as discontinued operations and were sold on 31 January 2025.
2. Capital contributions is an umbrella term that covers the up f ront fees we charge customers for certain types of capital expenditure. It includes connection
fees and development contributions for new connections, and fees to cover the costs of relocating our assets when required to by third parties.
$240m
$482m
NET PROFIT AFTER TAX
ADJUSTED EBITDA
Chair and group
chief executive report
PROFIT
This year, a higher earning allowance for electricity
distribution businesses applied for the full year, compared
with only one quarter of the prior financial year. This higher
allowance was set by the Commerce Commission f rom
1 April 2025, and reflects higher interest rates, high historic
inflation, and recovery of higher pass-through costs such
as transmission lines charges. This led to revenue for
continuing operations
1
excluding capital contributions
2

of $1,004 million, up $111 million or 12%.
The higher revenue flowed through to higher
adjusted EBITDA for continuing operations of
$482 million, up $81 million or 20%. We do not include
capital contributions in our adjusted EBITDA figure.
The higher adjusted EBITDA result was partially offset
by lower capital contributions, which decreased by
$20 million or 9%, leading to group net profit after tax
f rom continuing operations of $240 million, up $86 million
or 55%. This result also benefited f rom an absence of the
$37 million impairment on the gas distribution business
in the previous year.
10
Chair and group chief executive report
Vector Annual Report 2026

CAPITAL EXPENDITURE
Gross capital expenditure for continuing operations
across our three reported segments of Electricity, Gas
Distribution and Other was $544 million, up $74 million
or 16%. This result includes a record level of investment
into the electricity network (Electricity segment capital
expenditure was $512 million, as detailed on page 69).
Our accounts show gross capital expenditure before
capital contributions. During the year, we recognised
$191 million in capital contributions, down $20 million or
9%. Those contributions are recognised as income rather
than offset against capital expenditure. But we know
customers paying them want to understand what they
are paying for, and why.
As Auckland continues to grow and electrify we’re
seeing the drivers of growth change. New developments
continue to add demand to the network and often
require new or upgraded inf rastructure. The fair
approach is for the developments that create those costs
to contribute to them. That is why we charge connection
fees for the assets needed to connect a development,
and development contributions for the wider network
investment driven by that growth. For a typical new
home, these costs are around $8,000 on average.
Looking ahead, network growth is likely to take a
different shape. As electric vehicle (EV) uptake increases
and electrification accelerates, demand will grow not
only through new connections and investment, but
also through more dynamic use of the network itself.
Customers will increasingly use technologies such as
EVs, solar, batteries and smart devices in ways that create
new demand, new flexibility and new opportunities to
make better use of existing capacity. As electrification
accelerates we’re considering where the costs of network
growth should sit.
WELCOMING A NEW
GROUP CHIEF EXECUTIVE
This year marked an important leadership
transition for Vector, as we welcomed
Chris Blenkiron as Vector’s new group chief
executive. Chris joins Vector with deep expertise
in the New Zealand energy sector, a sharp
commercial background and a track record of
delivering exceptional outcomes in previous
leadership roles. Since his appointment, he’s
focused on understanding our customers, our
people and our opportunities, while bringing
a clear emphasis on simplicity, execution and
performance. Chris’ leadership will help Vector
build on its strong foundations and talented
people to continue creating value for customers,
communities and shareholders.
DOUG MCKAY
CHAIR
CHRIS BLENKIRON
GROUP CHIEF EXECUTIVE
DOUG MCK AY
CHAIR
$544m
26
cents per share
full-year dividend
CAPITAL EXPENDITURE
DIVIDEND
11
Chair and group chief executive report

3. Our electricity regulatory performance year runs to 31 March and includes measures that track the reliability of service we provide to our customers. In the most recent
regulatory period, the 12 months to 31 March 2026, our network performance was within the regulatory limits for reliability, for both planned service interruptions (for
example, where we shut power off temporarily to undertake work on the network safely) and unplanned service interruptions (for example, where a car hits a power
pole and disables power until we can repair it).
Over the past decade,
Vector has steadily
increased investment
in Auckland’s electricity
network to support
growth, improve
reliability and enable
changing customer
needs. The average
monthly bill has barely
moved, in real terms, in
that period, reflecting our
commitment to ensuring
customers receive value
from our investments.

Capex $m in real terms (2026)

Average monthly residential bill (Vector component only) in real terms (2026)
NOTE: Years run 1 April to 31 March. All $ shown in real terms (2026). Data sourced f rom Electricity Information Disclosures
on Vector’s website, where available. Capex values are gross capex, before capital contributions.
DIVIDEND
The board has determined an unimputed final dividend
of 13.5 cents per share, taking the full-year dividend to
26 cents per share.
DISCIPLINED EXECUTION
Across our electricity, gas and fibre networks, reliability
remains strong. While these networks will always be
subject to the shocks of weather events, the underlying
drivers of reliability, including network design, asset
management and maintenance, remain our key areas
of focus. Our execution of these factors continues to
be a strength as evidenced by the achievement of our
regulatory quality measures.
3
Network growth is closely linked to Auckland’s
development pipeline. As new homes, businesses and
communities are built, the connections and enabling
inf rastructure we provide need to move in step with
private development to support growth, electrification
and customer demand. This year, 13,017 new homes
and businesses have been connected to the electricity
network. Through disciplined investment and forward
planning, we continue to ensure the network enables
growth across the region. However, we’re committed
to doing more, delivering connections with greater
efficiency and pace, deepening our customer
relationships, and improving our customer experience.
Public and worker safety, including our own crews or
others working near our networks, will always come
first and we’ve continued to embed a safety culture
throughout all our teams and partners.
We’ve deliberately deployed artificial intelligence (AI)
where it enables productivity, better asset management
and planning, and improved customer experience.
The workforce impact has been tangible. In addition to
general productivity enhancements f rom the enterprise
adoption of Microsoft Copilot, our digital development and
architecture teams are using AI tools to deliver technical
designs significantly faster, and complete tasks in a more
streamlined and efficient way. Across the electricity
network, AI is helping us predict vegetation growth
patterns, and enhancing voice-to-text and sentiment
analysis of customer interactions.
STRENGTHENING CAPABILITY ACROSS
THE SECTOR
Collaboration and boosting capability within the sector
is increasingly important as Auckland and New Zealand
prepare for greater electrification and energy demand.
We’ve worked with Tapestry, a group within Google
applying AI to the electric grid, to deploy their platform
GridAware. GridAware unifies geospatial data, high-
resolution imagery, and advanced AI to deliver
comprehensive visibility across our network inf rastructure.
Moving beyond isolated asset inspections, GridAware has
revolutionised our asset management, driving greater
operational efficiency, safety, and energy resilience. No
longer used exclusively by Vector, the platform’s adoption
is now scaling to other electricity distributors around
New Zealand, demonstrating how shared innovation
and collaboration can improve outcomes well beyond
our own network.
Alongside this, we support sector-wide data and flexibility
initiatives, contribute to common standards and forums,
and our data scientists work with peers across the sector
to advance the use of analytics and AI in network planning
and operations. Together, these efforts are helping create
a stronger, more resilient and more efficient electricity
system for all New Zealanders.
MORE THAN A DECADE OF SIGNIFICANT INVESTMENT AND LARGELY STABLE MONTHLY BILLS
$0
$250
$300
$350
$400
$450
$500
$550
$600
$650
25-2624-2523-2422-2321-2220-2119-2018-1917-1816-1715-1614-1513-1412-13
ANNUAL CAPEX $m
YEARS
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
AVERAGE MONTHLY RESIDENTIAL BILL
VECTOR COMPONENT ONLY
12
Chair and group chief executive report
Vector Annual Report 2026

IMPROVING CONNECTIONS
During the year, we’ve made significant
changes to support more transparency and
easier access to our network. This includes our
own review into the connection experience, and
then by engaging with the Electricity Authority
as work continues on several national projects
dedicated to network connections across
New Zealand. We’ve brought forward a lower
price for new residential connections, so our
customers can benefit earlier f rom regulatory
changes that would otherwise take effect in 2027.
At the same time, we’ve also introduced new
approaches to connection cost allocation, and
reconciliation, ensuring connection charges are
clearer and more transparent for our customers.
We’ve strengthened engagement with key
developers, inf rastructure providers and other
connection customers through the establishment
of our Connections Council. This forum provides
a direct channel for key customers to help shape
improvements to our service delivery.
DOUG MCKAY
CHAIR
CHRIS BLENKIRON
GROUP CHIEF EXECUTIVE
BUSINESS PERFORMANCE
Electricity performance is detailed on page 22, and gas
distribution on page 24. Our investment in Bluecurrent
continues to perform in line with expectations, with
distributions received f rom the investment recognised in
our financial statements as cash flows. Our strategic review
into the Vector Fibre business has concluded, with the
outcome that Vector will retain ownership with a renewed
focus on pursuing opportunities for growth. Vector
Technology Solutions (VTS) continues to concentrate on
delivering to its key client Bluecurrent.
LOOKING AHEAD
Vector enters the new financial year f rom a position of
strength. We have a core business that is performing well,
and a clear understanding of the opportunities ahead.
Today more people than ever are wanting to do more with
the country’s electricity system, to electrify their businesses,
their homes and even how they move. As this energy
transition accelerates, we’re looking deeply at how our
role should evolve to ensure we continue delivering value
to our customers and shareholders.
We thank our employees, contractors, partners,
shareholders and stakeholders for their ongoing
support as we focus on what matters most.
13
Chair and group chief executive report

Environmental,
social and
governance
(ESG)
14
Environmental, social and governance (ESG)
Vector Annual Report 2026

15
Environmental, social and governance (ESG)

People
BUILDING THE CAPABILITIES NEEDED
FOR THE FUTURE
We’ve continued to invest in the programmes, tools and
leadership practices that support our long-term success.
During the year, we focused on developing the capabilities
that are critical to delivering our strategy and responding
to a rapidly changing energy sector.
This included strengthening our customer focus, helping
employees use data to make better decisions, building
digital skills, encouraging innovation, and creating
greater collaboration across our teams. To support this,
we launched our Leadership Essentials programme
to strengthen leadership capability throughout the
organisation, implemented a new people platform to
improve access to workforce insights and data-informed
decision-making, and continued to embed development
conversations and career planning practices to support
employee growth and internal mobility.
We also increased our focus on cross-functional
collaboration, bringing leaders and teams together to
solve complex business challenges and deliver strategic
initiatives. These capabilities are being embedded through
recruitment, leadership development, performance
conversations and learning programmes, helping ensure
our people have the skills needed to deliver for customers
today and into the future.
CAPABILITY-BUILDING HIGHLIGHTS:
Leadership development
• 60% of leaders completed Leadership Essentials (first stage)
• 49% of leaders completed Leadership Reflection (second stage)
• 54% of leaders completed mental health and wellbeing courses
Enterprise capability building
• Know Yourself, Grow Yourself launched to embed the behaviours and
capabilities that support our strategy
• Enterprise-wide learning sessions on Microsoft Copilot
16
People
Vector Annual Report 2026

EMPLOYEE ENGAGEMENT
Employee engagement remains a strength for Vector.
Our February employee engagement survey recorded
strong levels of engagement, consistent with the previous
year and above external benchmark results. Employees
continued to report positive experiences of belonging,
inclusion, meaningful work and work-life balance, with
all diversity and inclusion measures performing above
benchmark levels.
The survey also helps us identify opportunities for
improvement. Insights f rom employee feedback are used
to develop targeted action plans across the organisation,
with a particular focus on communication, recognition,
leadership effectiveness and improving the overall
employee experience.
SUPPORTING WELLBEING
AND INCLUSION
Supporting employee wellbeing remains an important
part of our approach to creating a safe, healthy and high-
performing workforce. We provide a range of initiatives
and support services designed to help our people stay well,
manage challenges early and perform at their best.
* Middle East, Latin America and Af rica.
EMPLOYEES BY ETHNICITYEMPLOYEES BY AGEEMPLOYEES BY GENDER
.%

.%

.%

.%

.%
+
.%
FEMALE
.%
MALE
.%
.%
.%
.%
.%
.%
.%
.%
ASIAN
NZ EUROPEAN
NZ
MĀORI
OTHER
PASIFIKA
UNKNOWN
EUROPEAN
MELAA*
82%
COMPANY-WIDE ENGAGEMENT
(91% response rate)
Our wellbeing results continue to compare favourably
with New Zealand benchmarks, with employees reporting
higher levels of resilience, organisational support and
overall wellbeing than the national average. These
outcomes reflect our ongoing focus on creating an
environment where people feel supported, connected
and able to thrive.
We continued to foster an inclusive workplace through
our employee-led networks, which create opportunities
for connections, learning, advocacy and cultural
celebration across Vector. Five employee-led groups
operated under agreed charters during the year,
supporting Asian, Pasifika, Muslim, LGBTQ+/Rainbow
and disability inclusion communities.
EMPLOYEE ENGAGEMENT AND WELLBEINGFY2026 RESULTNZ BENCHMARK (where available)
Employee engagement score82%75%
Survey participation rate91%
Diversity and inclusion score83%78%
Belonging score82%76%
Wellbeing score46%43%
Individual resilience score72%65%
Organisational support67%58%
Rolling voluntary 12-month turnover12%16.5%
17
People

TALENT AND DEVELOPMENT
We’ve continued to invest in leadership development
through programmes that support leaders at
different stages of their careers. This has included
our Leadership Essentials programme, providing
foundational development for emerging people
leaders, alongside executive development
programmes and leadership assessment that
strengthen succession planning and build future
organisational leadership capability.
SUPPORTING WOMEN IN ENGINEERING
Building future capability remains a priority as demand
grows for skills in engineering, digital, data and customer-
focused innovation.
This year, Vector partnered with the University of
Auckland’s Women in Engineering Academy to help
secondary school students, particularly young women,
explore engineering and technology pathways.
CASE STUDY
“I LOVED HOW THE BOARD GAME
APPEARED TO BE ABOUT POWER IN
AUCKLAND BUT INSTEAD TAUGHT HOW
TO EFFICIENTLY MANAGE RESOURCES
AND HOW TO LOGICALLY CHOOSE WHAT
TO PRIORITISE AND HOW TO SOLVE
ISSUES WITH LIMITED RESOURCES.”
To mark International Women in Engineering Day, Vector
supported an event with an interactive board game that
helped students explore the real-world roles and choices
involved in building and maintaining a reliable, resilient
and future-ready energy network.
EVENT PARTICIPANT
18
People
Vector Annual Report 2026

WORKER AND PUBLIC SAFETY
Health and safety is a key priority for us, and our
board, executive and senior leaders have continued
to demonstrate a strong commitment to safety
leadership. Leadership engagements in the field have
increased understanding of challenges faced within
our working environment and promoted a culture
of open conversation about safety matters. Proactive
risk management has included over 1,400 critical
risk control verification site visits, ref reshed critical
risk training and an alignment review of critical risk
controls with our key service providers. Our on-site
Health and safety
VECTOR LTIFR AND TRIFR

June 2025

June 2026
0
1
2
3
4
5
6
TOTAL RECORDABLE
INJURY FREQUENCY RATE
LOSTTIME INJURY
FREQUENCY RATE
nurse remains a popular support to Vector employees
seeking health advice, annual health assessments and
flu vaccinations.
We’re pleased to have finished the year with overall
improvements in both the Lost-Time Injury Frequency
Rate (LTIFR) and Total Recordable Injury Frequency Rate
(TRIFR) with an LTIFR of 1.4 and TRIFR of 4.1.
In the public domain, we have targeted specific safety
campaigns to ensure our community is informed and
safe around our assets and the work we do.
19
Health and safety

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).
Our climate statement considers our climate-related
risks and opportunities, and is combined with our
greenhouse gas emissions inventory report. A summary
of key information is included here, with full details
available in our climate statement, available at
vector.co.nz/investors/reports.
CARBON EMISSIONS
REDUCTION TARGETS
After balance date for these results we adopted a new
target to reduce absolute scope 1 and 2 emissions
(excluding electricity distribution line losses) by 71.8% by
FY2040 f rom a FY2020 baseline. This target replaces our
previous 2030 net-zero commitment and reflects evolving
best practice, with a target to reduce emissions within our
operations rather than relying on carbon offsets. We will
disclose performance against the FY2040 target in FY2027.
Our target to reduce absolute scope 1 and 2 emissions
(excluding electricity distribution line losses) by 53.5%
by FY2030 f rom a FY2020 baseline was achieved last
year. This year the reduction was below the target level.
We expect some fluctuations in results year-on-year
as a large part of our scope 1 emissions are volatile by
nature (such as gas pipeline leaks). The main driver of the
result this year was an increased number of identified
gas pipeline leaks, due to a change in the leak detection
method. We will continue to track and report progress
against this target through to FY2030.
EMISSIONS INVENTORY
Vector’s total emissions are wider than what we account
for in our targets as they include scope 3 and electricity
distribution losses. Since our FY2020 base year, total
emissions have decreased by 54%. This reduction reflects
the wind-down of Vector’s natural gas trading contracts
in prior years, together with a continued decline in natural
gas consumption across the Auckland region.
EMISSIONS
REDUCTIONS
TABLE
FY2020
BASE YEAR
1
FY2026
%
CHANGE
Scope 122,35813,870(38%)
Scope 2
2
33,06130,776(7%)
Scope 31,648,517735,205(55%)
EMISSIONS ABATEMENT
We use 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 (tCO2e) as a comparative ‘do nothing’
cost. This cost curve is updated regularly as new initiatives
are identified, and this was carried out again this year,
keeping the benchmark of $140 per tonne of tCO2e cost,
to reflect the progress we’ve made.
Sustainability
1. Due to the sale of HRV our historic emissions inventory has been recalculated
to exclude the emissions associated with this business. For more information on
the methodology, results and emissions recalculations over time, please see our
greenhouse gas emissions inventory report, in appendix 1 of our climate statement.
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, in appendix 1 of our climate statement.
20
Sustainability
Vector Annual Report 2026

Business
segment
reports
21
Business segment reports

CHANGING DEMAND PATTERNS
Smart meter data is revealing how quickly
customers respond to price signals. As more
households shift electricity use into cheaper
off-peak periods, we are seeing a new demand
spike emerge at around 9pm. This is a good
example of the future arriving in real-time: pricing
is changing behaviour, and we must be ready for
what happens when many more customers act
at once. It shows why better data, smarter pricing
and flexible network tools will be critical to helping
customers access lower-cost energy while keeping
the network secure and efficient.
INCREASED SOLAR EXPORTS
We’ve increased the amount of solar power
Auckland households can send back to the grid,
helping customers get more value from their solar
panels by selling more of their excess electricity.
As more households adopt solar, there could be
times when too much electricity is sent back to the
grid at once. This can put pressure on the network
and limit our ability to connect new solar customers
without expensive upgrades. To avoid this, we’ve
introduced a dynamic export limit of up to 10kW.
Customers can export up to this amount when the
network has capacity. On the rare occasions when
the network is under pressure, we can temporarily
reduce how much each household exports. This
helps keep the network reliable while allowing more
households to connect solar, export their excess
electricity and get more value from their investment.
Electricity
$512m
ELECTRICITY CAPITAL EXPENDITURE
$440m
ADJUSTED EBITDA

2022

2025
LOAD kW
NORMALISED TO DAILY
ENERGY kWh
AM PMPM
OFF-PEAK POWER PLANS LEAD TO NEW,
LOCALISED 9PM SPIKES IN PARTS OF THE NETWORK.
22
Electricity
Vector Annual Report 2026

ELECTRICITY USE
IS CHANGING
Auckland is using more
electricity, in different ways and at
different times. Housing growth,
commercial development, transport
electrification, and changing
household habits are all reshaping
demand on the network.
In response, we’re focused on
future-proofing the network, not
simply maintaining it and growing
it as it is today. A key part of this
approach is about transforming the
network into one that is more flexible.
We achieve this by making the best
use of the network before building
more inf rastructure, unlocking
the opportunity for customers to
benefit f rom new technology, and
layering digital capability over a
traditional network.
ADJUSTED EBITDA
Electricity adjusted EBITDA was up
$88 million or 25% to $440 million
this year. This result was driven by
higher revenue, which followed the
Commerce Commission’s reset of
electricity distribution line charges
on 1 April 2025, as well as higher
pass-through and recoverable
costs. Revenue was up $141 million
and operating expenses were
up $53 million, driven primarily
by higher pass-through charges
such as transmission costs, which
have been reset by the Commerce
Commission as well, higher levels
of maintenance, and higher digital-
related expenses.
CONNECTION GROWTH
Connecting new homes, businesses
and inf rastructure safely to the
network supports housing delivery,
economic development and major
public inf rastructure across Auckland.
We’re coordinating new connections
with wider network growth
investment so the right capacity is
available where it is needed, and to
ensure growth is not constrained by
the electricity network.
We’re also working to improve
the connection experience for
developers, inf rastructure partners
and large-usage customers. This
includes earlier engagement on
customer growth plans, clearer
information about capacity, costs
and timef rames, and more consistent
processes for resolving issues.
The Vector Connections Council
is providing a practical forum for
customers and stakeholders to
discuss these issues directly with
us and help shape improvements.
This year we added 13,017 new
connections, up 3.7% on the prior
year. The total number of electricity
connections is now 642,134.
VOLUMES
Electricity distributed volume was
up 1.9% compared with the year
ended 30 June 2025, with residential
volumes up 1.6% and business
volumes up 2.0%.
Overall electricity volume remains
strongly influenced by weather and
economic conditions, but these do
not tell the full story. Electrification,
new technologies, data centres
and major developments are
changing how and where electricity
is used across Auckland. As
demand becomes more dynamic
and location-specific, understanding
where and when peak demand
occurs is becoming increasingly
important for network planning.
CAPITAL INVESTMENT
Electricity capital expenditure was
$512 million, up $80 million or 19% on
the prior year, and significantly higher
in the second half of FY2026 than the
first, which is something we forecast
when releasing our half-year results.
This is a record level of investment
into the electricity network in a
financial year, and was driven by
an increase in both replacement
and growth capital expenditure.
Replacement capital expenditure
was up $62 million, driven by a
significant increase in spend for both
asset replacement programmes and
specific asset replacement activities
including cables, switchboards,
ring main units, and distribution
transformers.
DELIVERING FOR
CUSTOMERS
This year we’ve continued to embed
and refine our use of data, digital
tools and condition-based risk
assessments to target maintenance,
renewal and replacement work before
assets fail.
We’re strengthening the way we
support our customers at the
moments that matter most, especially
during planned and unplanned
outages. We’ve been out meeting
our customers all across Auckland
this year, and have continued
to focus on making it easier for
customers to interact with us through
improvements to communications
and other initiatives. As an example,
we made a small but meaningful
change to how we provide outage
restoration times to customers.
Rather than waiting until the full
extent of the work has been scoped,
field crews now assess the type and
complexity of the network damage
and, based on their experience,
provide an initial power restoration
time range. This is then updated with
a confirmed restoration time once
more detail is known about work
required. This gives customers useful
information sooner, helping them
plan and ensuring more timely and
consistent information is available
through our Outage Centre.
23
Electricity

ADJUSTED EBITDA
Adjusted EBITDA was flat year-on-year at $47 million.
Revenue was up $2 million or 2% but this was partially
offset by an increase in operating expenses related to
higher maintenance and other operating expenses.
CAPITAL INVESTMENT
Gas capital expenditure was $14 million, down $5 million
or 26% on the prior year of $19 million. Growth capital
expenditure was down $4 million and replacement capital
expenditure was down $1 million.
CONNECTIONS
There were more disconnections than new connections
over the year, with total connections on Auckland’s gas
distribution network reducing by 0.5% to 119,991.
VOLUMES
Gas distribution volume was down 1.7% compared with
the prior year, due to lower demand f rom the residential,
industrial and commercial sectors.
MANAGING INVESTMENT RISK
In the context of declining overall connections and
volume on the gas network, we’ve replaced some capital
expenditure (such as end-of-life pipe replacement) with
operational expenditure (like active pipe monitoring)
while maintaining operational performance and safety.
This reduces the risk of asset stranding through smarter
network management.
UPDATED REGULATORY SETTINGS FOR
GAS NETWORKS
During the year, the Commerce Commission confirmed
the regulatory settings for gas networks under the next
Default Price-Quality Path, which will run through a five-
year period beginning 1 October 2026. Recognising the
wider context of uncertainty around the long-term future
of gas, and the impact on customer bills f rom this reset,
the Commission has retained accelerated depreciation
for network assets, smoothed starting price impacts over
three years, and introduced a new mechanism designed
to share financial risk among network owners and their
customers f rom unexpected and significant changes in
gas demand. Overall, the new settings support a more
managed transition in a changing gas market.
Gas distribution
$47m
ADJUSTED EBITDA
24
Gas distribution
Vector Annual Report 2026

25
Gas distribution

Governance
and
remuneration
26
Governance and remuneration
Vector Annual Report 2026

27
Governance and remuneration

Governance
report
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 2026.
Vector’s board is committed to maintaining high standards
of corporate governance, ensuring transparency and
fairness, and recognising the interests of our shareholders
and other stakeholders.
The board has an established set of guiding principles that
state that the company will:
• be a leading commercial enterprise in New Zealand
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 (31 March 2026) (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 ‘control transactions’ takeovers
(NZX Code Recommendation 3.6). Vector has not adopted
a formal protocol because Entrust holds 75.1% of Vector’s
shares, meaning:
• any takeover offer would need to involve Entrust;
• any scheme of arrangement would require Entrust’s
approval.
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 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, where
possible, and appropriately balance the expectations of all
its stakeholders, including its employees, customers and
the wider community.
In carrying out its responsibilities and exercising its 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 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 f ramework. The effect of this
f ramework is that, while the board has statutory
responsibility for the activities of the company, this is
exercised through the delegation to the group chief
executive, who is accountable for the day-to-day
leadership and management of the company.
28
Governance report
Vector Annual Report 2026

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;
• overseeing risk management, internal controls, codes of
conduct and legal compliance;
• overseeing Vector’s health, safety and environment
strategy;
• overseeing climate-related risks and opportunities, long-
term sustainability and Vector’s environmental impact;
• approving and monitoring financial and other reporting;
• approving major investments and divestments;
• approving and monitoring major capital expenditure
and capital management;
• overseeing Vector’s corporate governance f ramework;
• ensuring ethical behaviour by the company, board,
management and employees; and
• assessing its own effectiveness in carrying out its
functions.
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 charter sets out the expectation that all
directors continuously educate themselves to ensure
that they may perform their duties appropriately and
effectively.
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 expert and
assurance information.
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 f rom time to
time. The board last participated in an externally facilitated
review in 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 50 and 51 of this annual report and in the About us
section of Vector’s website (vector.co.nz/about-us/our-
leadership). Members of the Vector executive team have
regular access to the board.
BOARD MEMBERSHIP
Vector’s board comprises experienced directors f rom
diverse backgrounds who govern the company on behalf
of its shareholders and other 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
(as explained in section 3.1.6 of the NZX’s Governance
Guidance Note (September 2025)) and at least two being
‘Independent Directors’ (as defined in the NZX Rules). The
board currently comprises seven directors, all of whom are
non-executive. Six of Vector’s directors ordinarily reside in
New Zealand and one director ordinarily resides in Australia.
Biographies are set out on pages 48 and 49 of this report
and include information on the year of appointment,
independence, 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 page 30. The board recognises that a regular
ref reshment programme leads to the introduction of new
perspectives, skills, attributes and experience and the board
also has regular regard for succession planning for its roles.
As required, the board strengthens its oversight of issues in
all disciplines by seeking expert advice.
29
Governance report

BOARD SKILLS AND EXPERIENCE
STRATEGIC FOCUSDESCRIPTIONNUMBER OF DIRECTORS
LeadershipSenior leadership experience, board director
and executive
Leadership
Strategy Strategy and commercial acumen
Strategy
CustomerCustomers and community
Customer
EnergyEnergy industry experience
Energy
ESGEnvironmental, social and governance (ESG),
climate change, sustainability
ESG
PeoplePeople and culture, workforce, remuneration
and talent
People
GovernanceGovernance, risk and compliance
Governance
RegulatoryRegulatory and government policy
Regulatory
FinanceFinancial acumen
Finance
TechnologyTechnology, cyber security, AI, data
Technology
Digital innovationDigital evolution, transformation and
innovation
Digital innovation
EXPERT ADVANCED CAPABLE
30
Governance report
Vector Annual Report 2026

DIRECTOR INDEPENDENCE
The nominations committee has responsibility on
behalf of the board for making determinations as to the
independence status of all directors on an ongoing basis.
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 directors as
at 30 June 2026 for the purposes of the NZX Rules and
NZX Code. Those directors are Doug McKay (who is
Vector’s chair), Vaughan Busby, 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
because of that association. Directors are required to
inform the board of all relevant information which may
affect their independence.
Only independent, non-executive directors are eligible
to be the board chair. The roles of board chair, audit
committee chair, risk and assurance committee chair,
people and remuneration 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 109 and 110 of this annual report.
BOARD COMMITTEES
There are four standing 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 regularly (usually
biennially), with any proposed changes recommended
to the board for approval. All charters are available on
Vector’s website. The board may also form additional
ad hoc committees as needed. The company secretary
has unfettered access to the chairs of the board and
the committees.
DIRECTOR PERIOD OF APPOINTMENT
0–3 YEARS3–9 YEARS9 YEARS +
Number of
directors
160
The members and chairs of each committee as at 30 June 2026:
COMMITTEEMEMBERS
Audit committee
Anne Urlwin (chair)
Alastair Bell
Dame Paula Rebstock
Nominations committee
Doug McKay (chair)
Dame Paula Rebstock
Dr Paul Hutchison
People and remuneration committee
Dame Paula Rebstock (chair)
Alastair Bell
Bruce Turner
Risk and assurance committee
Bruce Turner (chair)
Vaughan Busby
Dr Paul Hutchison
Anne Urlwin
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. Management can only attend people and remuneration committee meetings by invitation,
and Vector employees can only attend audit committee meetings by invitation.
31
Governance report

ATTENDANCE AT MEETINGS
Attendance records of board and committee meetings are provided in the table below.
COMMITTEE FULL BOARD
AUDIT
COMMITTEE
RISK AND
ASSURANCE
COMMITTEE
PEOPLE AND
REMUNERATION
COMMITTEE
NOMINATIONS
COMMITTEE AGM
TOTAL MEETINGS 158 4321
A Bell 1583*31*1
V Busby156*4
‡
1*1
P Hutchison 143*421
D McKay (chair) 158*3*3*21
P Rebstock 1481*321
B Turner 153*421*1
A Urlwin 15841*1
* Director attending the committee meeting who is not a member of the committee.
‡ Director was appointed a committee member, 22 August 2025.
Note that full board meetings include 11 board meetings and 4 “deep dive” meetings.
AUDIT COMMITTEE
The purpose of the audit committee is to assist the
board in fulfilling its responsibilities for the quality and
integrity of Vector’s external financial and climate-related
reporting, the independence and performance of the
external auditors, and effectiveness of the internal control
system for financial and climate-related reporting and
accounting records.
The audit committee supports effective 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 is the requirement to ensure that
audit independence is maintained, both in fact and
appearance.
The NZX Rules, NZX Code and the audit committee’s
charter require that the audit committee must comprise
at least three members, all being non-executive
directors of Vector, at least one of whom should be
both independent and have an adequate accounting or
financial background, and the majority of whom must
be independent directors (as defined in the NZX Rules).
The chair must be an independent director and cannot
be the chair of the board.
Two members of Vector’s audit committee have
specialist accounting 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 ensure
Vector manages its risks and compliance appropriately,
including through overseeing Vector’s risk management
f ramework and policies. The risk and assurance committee
charter requires this committee to comprise at least three
members, being directors of Vector, at least two of whom
must be independent.
PEOPLE AND REMUNERATION
COMMITTEE
Vector has a people and remuneration committee as
discussed in the remuneration report on page 38.
NOMINATIONS COMMITTEE
The purpose of the nominations committee is to
assist the board in fulfilling its responsibility to
have an efficient mechanism for director selection,
appointment and retention practices of the company
(including coordinating director appointments with
Entrust, consistent with Entrust’s rights under Vector’s
constitution) and for the appointment and succession of
the group chief executive. All new directors enter into a
written agreement with Vector, which sets out the terms
of their appointment.
The NZX Code and the nominations committee’s charter
require that the nominations committee must comprise
at least three members, being directors of Vector, the
majority of whom should be independent directors.
32
Governance report
Vector Annual Report 2026

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 external auditor also audits the company’s regulatory
reporting (electricity and gas) and provides assurance
on climate related disclosures. While a policy of periodic
rotation of external audit firm is not mandated at Vector,
the effectiveness, performance and independence of
the external auditor are reviewed at least 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 key audit partner for the financial
statements statutory audit after no more than five years.
The company’s external auditor is KPMG, which has been
Vector’s auditor since FY2003. Matt Diprose has been the
audit partner since FY2025 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 2026. 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
and subsequently monitored by the audit committee. The
audit committee considered and gave its approval for the
auditor to undertake certain non-audit-related matters.
Fees paid to KPMG are included in Note 7 of the notes
to the financial statements contained on page 72 of this
annual report. KPMG was paid $1.5 million for services in
the financial year to 30 June 2026. Of this sum, $1.4 million
was for audit-related services and $0.1 million was for
non-audit-related services. Non-audit-related work did not
exceed 25% of the amount paid for audit work. 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.
PwC has been appointed as the company’s external
auditor for the 2027 financial year beginning 1 July 2026.
The decision to recommend a change of auditor was made
as a matter of good governance in light of KPMG’s tenure.
Vector would like to thank KPMG for their service.
RISK MANAGEMENT
Vector recognises that effective 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) f ramework is
consistent with the international risk management standard
ISO 31000. 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
1
, all Vector people
are responsible for applying Vector’s ERM f ramework 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 levels;
• 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 f ramework
so it remains fit for purpose in a changing operating
environment. The company engages external advisers
to assist in incorporating the latest developments in
risk management and to reflect the evolving work
environment.
At the top level, the board sets the risk appetite and
strategic direction for the business. The risk and assurance
committee assists the board in fulfilling its responsibilities
to protect the interests of shareholders, customers,
employees and the communities in which Vector operates.
The risk and assurance committee provides oversight of
Vector’s risk and assurance policies and practices, monitors
risk performance concerning Vector’s risk appetite and
business objectives, provides guidance regarding the
development of the ERM f ramework, and ensures rigorous
processes for internal control and legal compliance.
Vector’s group risk function (reporting to the chief
legal and assurance officer) is tasked with the ongoing
development and implementation of the ERM f ramework
and risk processes. In addition to monitoring the changing
business landscape and macro-economic trends, this
function works with Vector business units to facilitate
smart risk-based decision-making as well as risk analysis
and the evaluation of risk against Vector’s risk appetite.
These perspectives inform the development of the
group key risk profile which provides both the board and
executive team with a consolidated view of:
1) the strategically focused risks which could have
a significant impact on the long-term value and
sustainability of Vector’s business; and
2) the material operational risks facing Vector as part of
its business-as-usual activities which require significant
oversight and control.
To inform the Vector group key risk profile, business unit
and operational risk profiles are developed based on the
objectives and operating context specific to each business
unit. Key risk indicators are applied to monitor risks
against Vector’s risk appetite, ensuring risk visibility and
supporting appropriate mitigation measures as necessary.
Vector’s group material risks are shown on page 34. Risks
1, 4, 5 and 6 include Vector’s risks in relation to the impacts
of climate change. Refer to Vector’s climate statement
for information on Vector’s climate-related risks and
opportunities.
1. The Three Lines Model, developed by the Institute of Internal Auditors, provides
a principles-based approach to identifying the structures and processes that
support strong governance and management of risk.
33
Governance report

VECTOR GROUP’S MATERIAL RISKS
1
Failure of the electricity network to adapt and
transition to changing demand in a way that
achieves affordability and efficient capital spend
2
Adverse or unanticipated government responses to
energy market failure and/or increased prices
3
Cyber security compromise
4
Adverse or unanticipated change to government
policy affecting the electricity or gas business,
or legislative/regulatory settings related to the
Commerce Act 1986 (Part IV), Electricity Act 1992,
Gas Act 1992, or Electricity Industry Act 2010
5
External shock event, including natural disaster,
major weather events, pandemic and other external
impacts
6
Adverse impacts, government responses and
unrealised opportunities f rom climate change
7
Breach of SAIDI and SAIFI
8
Serious harm or fatality event due to non-
performance of internal processes
9
Major/repeated disruption of Electricity, Gas and
Fibre critical services due to non-performance of
internal processes
10
Adverse mental health impacts that arise f rom
workplace factors
11
The rapid change and opportunity created f rom
utilising data and AI
12
Inability to develop, retain and recruit specialised
talent
13
Failure to collect, protect or create value f rom
information and intellectual property
14
Reputational damage/adverse impacts on
stakeholder and customer confidence
15
Failure, poor performance and/or availability 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

direct link to
Gas transition
Inability to efficiently manage load to avoid
network congestion
Energy platforms
Increase in extreme weather events
Refer to Vector’s climate statement
Distributed energy resources
Climate-related risks
Climate-related opportunities
34
Governance report
Vector Annual Report 2026

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 19 of this
annual report contains Vector’s approach to performance
in these areas, including its proactive lead indicators
and traditional lag indicators of 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 which is
available on Vector’s website.
INTERNAL AUDIT
Vector’s business performance and assurance function
is overseen by the risk and assurance committee, and
the audit committee, providing independent and
objective assurance on the effectiveness of governance,
risk management and internal controls across business
operations. The business performance and assurance
function has unrestricted access to Vector’s businesses
and staff. The function liaises closely with KPMG, as
Vector’s external auditor, to share the outcomes of the
business performance and assurance 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. It 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 within the company. 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. Reporting can be 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
f rom 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 f rom, 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 prohibiting trading is imposed
for all directors, senior officers and certain other people
between the day before the half year and full year balance
dates and the first trading day after the release to NZX of
the financial results 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 and direction to advance Vector’s
diversity and inclusion strategy and the activities of the
diversity committee.
Vector has dedicated resources as well as empowering
employee representative groups 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.
Its overall diversity and inclusion programme is focused
on creating an inclusive culture that attracts and retains
talented people f rom all parts of our communities. Vector
has a continued focus on performance and merit-based
recruitment and promotion.
GENDER STATISTICS
Vector’s gender statistics are as follows:
AS AT 30 JUNE 2026 AS AT 30 JUNE 2025
POSITIONFEMALEMALE
GENDER
DIVERSE
NOT
DISCLOSEDFEMALEMALE
GENDER
DIVERSE
Directors2 (28.6%)5 (71.4%)––2 (28.6%)5 (71.4%)–
Executive team1 (14.3%)6 (85.7%)––1 (14.3%)6 (85.7%)–
Direct reports to the
executive team
9 (25.0%)27 (75.0%)––8 (20.0%)32 (80.0%)–
Across the Vector group220 (37.7%)364 (62.3%)–283 (35.4%)513 (64.1%)4 (0.5%)
35
Governance report

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 an 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. Recordings of the briefings
are available on the annual reports page of the Investor
section of Vector’s website. Annual and interim reports
and other investor information are made available
on Vector’s website, with hard copies provided where
required by law or requested in accordance with
shareholder communication preferences. The company
has a shareholder meetings page in the Investors section
of 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. A copy of this deed is available
on Entrust’s website.
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. Vector
is committed to transparent reporting of non-financial
objectives, such as ESG factors.
The 2025 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 115 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 and information page in the
Investors section of Vector’s website. For the 2025 annual
meeting, the notice of meeting was made available and
published on the Vector website at least 20 working days
before the meeting.
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 a
management disclosure committee which meets regularly
to discuss continuous disclosure matters.
36
Governance report
Vector Annual Report 2026

Remuneration
report
Dear Shareholders
As chair of Vector’s people and remuneration committee,
I am pleased to present our Remuneration Report for the
year ended 30 June 2026.
During the year, we have reconfirmed the importance of
attracting, retaining and developing talented people with
the expertise needed to support Vector’s future growth
and long-term success.
Our remuneration f ramework remains focused
on supporting these objectives while maintaining
a clear link between performance and reward.
We believe remuneration outcomes should reflect
both the achievement of strategic priorities and the
delivery of sustainable outcomes for our customers,
shareholders and communities. A detailed overview
of our remuneration f ramework is set out in the
Remuneration approach section on page 38.
We have enhanced our remuneration disclosures
this year. The report provides greater transparency
regarding the operation of our short-term incentive
(STI) f ramework for senior leaders, including
gateway conditions, performance measures and
targets, and outcomes achieved during the year.
We have sought to provide our shareholders with clearer
insight into how remuneration decisions are made
and how incentive outcomes are linked to company
performance and priorities.
Beyond remuneration, we have continued to focus on
building a high-performing and engaged workforce.
Our ongoing workforce planning activities have
strengthened our understanding of the critical
capabilities required across the organisation, both
now and into the future. This work supports targeted
recruitment, leadership development, succession planning
and capability-building initiatives, ensuring Vector remains
well positioned to execute its strategy in an increasingly
dynamic environment.
Looking ahead, the committee will continue to review
the effectiveness of Vector’s remuneration f ramework
to ensure it remains aligned with company strategy,
market practice and stakeholder expectations. We remain
committed to maintaining a remuneration approach that
is transparent, equitable, aligned with building a workforce
that reflects the diverse communities we serve across
Auckland (Tāmaki Makaurau) and is strongly linked to
sustainable performance that creates long-term value for
our shareholders.
PEOPLE AND REMUNERATION
COMMITTEE CHAIR LETTER
DAME PAULA REBSTOCK
CHAIR, PEOPLE AND REMUNERATION
COMMITTEE
August 2026
37
Remuneration report

REMUNERATION GOVERNANCE
The people and remuneration committee assists the
board in overseeing the performance and remuneration
of the group chief executive and executive team. It also
provides oversight of Vector’s broader people strategy,
culture, and related policies.
The committee operates under a written charter, which 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 FY2026
period is shown on page 32.
NAMEDATE JOINED THE COMMITTEELENGTH OF MEMBERSHIP
TO 30 JUNE 2026
DATE LEFT THE COMMITTEE
Dame Paula Rebstock (chair)2 Dec 20196 years, 7 monthsN/A, current member
Alastair Bell2 Dec 20196 years, 7 monthsN/A, current member
Bruce Turner1 Nov 20232 years, 8 monthsN/A, current member
EXTERNAL AND INDEPENDENT
ADVICE
During the year, Vector engaged Ernst and Young (EY NZ)
to conduct market benchmarking for the group chief
executive and executive team remuneration. The review
benchmarked remuneration against a comparator
group of organisations of comparable size, complexity
and market characteristics to support the board in
maintaining market-competitive remuneration. EY NZ
did not provide any other material services that would
impact their independence in relation to this advice.
REMUNERATION APPROACH
Our remuneration f ramework is designed to attract and
retain high-performing individuals, support the delivery
of the company’s strategy and reward employees
appropriately. The f ramework is designed around four
guiding principles:
• ensure Vector is competitively positioned in the
New Zealand employment market;
• reward high performance through pay, based on
results achieved and demonstrated behaviours and
competencies;
• reward achievement of strategic objectives and
increasing shareholder returns; and
• ensure fairness and equity is applied across
remuneration decisions.
Our remuneration policy sets out our approach to
remuneration for all employees (including the group chief
executive and his direct reports). The remuneration policy
is available to view at vector.co.nz/investors/governance.
There were no material changes to Vector’s remuneration
strategy or policy in FY2026.
The group chief executive’s base salary is reviewed annually
by the board and by external remuneration advisers using
relevant market peer benchmarks, as is the case with the
executive team and certain senior leadership roles.
EXECUTIVE TEAM REMUNERATION
STRUCTURE
The executive team’s remuneration consists of a base
salary, standard employee benefits and a short-term
incentive (STI). No long-term incentive (LTI) is currently
offered.
Fixed remuneration
Fixed remuneration (not at risk) consists of base salary
and other benefits including KiwiSaver. Base salary is
reviewed each year in line with data f rom independent
remuneration specialists. Employees’ base salary is based
on a matrix of their own performance including behaviours
and their current position in their internal remuneration
band when compared to the market.
38
Remuneration report
Vector Annual Report 2026

Short-term incentives (STI)
Thirty-six senior leaders in group chief executive,
executive, general manager, or equivalent senior
leadership roles were invited to participate in the FY2026
STI scheme. The FY2026 STI is an at-risk cash incentive,
calculated as a percentage of base salary, with target
opportunities ranging f rom 20% to 75% depending on
the complexity, scope and seniority of the role.
The purpose of the STI f ramework is to reward
behaviours and outcomes that deliver organisational
priorities, create value for Vector’s shareholders, and drive
positive customer experiences. Performance is assessed
across four categories:
• financial
• customer
• health and safety
• people.
Performance measures and targets are reviewed
annually by the people and remuneration committee,
followed by the board, to ensure alignment with Vector’s
business strategy and financial priorities. Performance
measures are consistent across the organisation, with
variations applied only where required to reflect the
specific objectives of a particular business area.
For the FY2026 period, Vector simplified the STI structure
by combining the former Corporate and Electricity and
Gas schemes into a single enterprise STI, while retaining
a separate VTS STI for Vector Technology Solutions (VTS).
The separate HRV STI scheme ceased following the sale
of the business on 1 August 2025.
The group chief executive and all executives are
measured against the enterprise STI.
Both STI schemes are subject to gateway conditions
comprising:
• achievement of minimum financial performance
(90% budgeted adjusted EBITDA)
• no fatalities arising f rom Vector’s policies or processes
• satisfactory individual performance.
Failure to satisfy any gateway condition results in zero
STI pay-out regardless of performance against other
measures.
For FY2026, Vector adopted a continuous improvement
approach to target setting for measures used on a year-on-
year basis. For these measures, the performance required
to achieve a 90% pay-out was generally set at the prior
year’s actual performance outcomes, with higher levels
of performance required for at-target and maximum
outcomes. For financial measures, the level required to
achieve a 90% pay-out was set at the approved budget.
STI outcomes are determined following an assessment of
company performance against the approved enterprise
scorecard. Each performance measure has an assigned
weighting and is assessed against predefined minimum,
target and maximum performance levels. A minimum
threshold must be achieved before any payment is made
for the relevant measure. Performance between minimum
and maximum is assessed on a sliding scale, with each
measure capable of paying between 0% and 110% of
its weighting. The exception is the Health and Safety
measure, which is capped at 100% of target opportunity.
The board retains full discretion to adjust STI outcomes
upward (capped at 110%) or downward where considered
appropriate, to reflect circumstances or events not
captured in the metrics.
STI payments relating to the financial year ended 30 June
2026 are delivered as a taxable cash payment and are
payable on completion of the annual audited financial
statements. Payments relating to the 2026 financial year
are therefore paid in the 2027 financial year. The outcome
of the enterprise STI scheme is outlined on the next page.
39
Remuneration report

Enterprise: FY2026 STI goals and results
GOAL / MEASURESWEIGHTINGTARGETS AND OUTCOMES
PERFORMANCE
AGAINST TARGET
Financial30%30.6%
Adjusted EBITDA
Target (100%): $492m
30.0%Outcome: $496.4m
1
Minimum (80%): $470m
Maximum (110%): $510m
30.6%
Achievement: 102%
Customer40%37.5%
Customer Satisfaction – for outages weighted
60% electricity unplanned, 30% electricity
planned and 10% gas outages
Target (100%): 8.2
25.0%Outcome: 7.89
Minimum (80%): 7.8
Maximum (110%): 8.4
21.25%
Achievement: 85%
Unplanned electricity SAIDI – interruption
duration – average in minutes
Target (100%): ≤ 110.07
7.5%Outcome: 99.97
Minimum = Target
2

Maximum (110%): ≤ 98.11
8.18%
Achievement: 109%
Unplanned electricity SAIFI – interruption
f requency – average number
Target (100%): ≤ 1.40
7.5%Outcome: 1.107
Minimum = Target
3
Maximum (110%): ≤ 1.139
8.25%
Achievement: 110%
Health and Safety
4
15%11.3%
Lost-Time Injury Frequency Rate (LTIFR)
Target (100%): ≤ 1.5
Outcome: 1.5
Minimum (50%): ≤ 2.1 - ≤ 2.8
Maximum = Target
11.3%
Aggregate of
5
• LTIFR: 100%
• TRIFR: 75%
• SR: 50%
• CRC: 100%
Total Recordable Injury Frequency Rate (TRIFR)
Target (100%): ≤ 3.9
Outcome: 4.5
Minimum (50%): ≤ 5.3 - ≤ 7.8
Maximum = Target
5
Severity Rate
Target (100%): ≤ 32
Outcome: 34.7
Minimum (50%): ≤ 34.0 - ≤ 35.5
Maximum = Target
Critical Risk Control (CRC) – critical risk safety
leadership observations
Target (100%): ≤ 95%
Outcome: 105%
Minimum: (50%) = 82% - ≤ 88%
Maximum = Target
People15%16.5%
Employee engagement
Target (100%): 83%
15%Outcome: 84%
Minimum (80%): 80%
Maximum (110%): 84%
16.5%
Achievement: 110%
Total100%95.9%
1. Outcome reflects board-approved adjustments arising f rom M&A activity.
2. No payment released unless the stretch target is achieved.
3. No payment released unless the stretch target is achieved.
4. Health and safety targets are segmented into ranges, where the maximum is achieving the stretch target at 100%.
5. No additional upside is applied. The aggregate of the four areas determines the percentage achievement – 0%, 50%, 75%, 100%.
The overall STI outcome was 95.9% in FY2026, compared to 91.2% in FY2025.
Other remuneration
Vector has not provided a joining bonus to executives in the last financial year.
40
Remuneration report
Vector Annual Report 2026

GROUP CHIEF EXECUTIVE
REMUNERATION ARRANGEMENTS
Vector’s group chief executive is covered by the
remuneration policy that is available at vector.co.nz/
investors/governance.
Simon Mackenzie finished as group chief executive
on 31 December 2025. Chris Blenkiron started on
1 December 2025.
The current group chief executive’s total remuneration
includes fixed remuneration and an annual at-risk STI.
The STI is based on the achievement of the enterprise
STI performance measures and up to two individual
performance objectives, with a target opportunity of
75% of base salary, which is split 50% based on the
enterprise STI and 25% against individual goals. A
maximum opportunity of 80% of base salary can be
achieved. No long-term incentive (LTI) plan was in
place for either group chief executive during FY2026.
Group chief executive remuneration
outcomes
The STI outcome for Chris Blenkiron for FY2026 reflects
the arrangements agreed with the board as part of his
total remuneration package. As he commenced during
the financial year, his STI target opportunity of 75% was
pro-rated to reflect his period of service. His resulting STI
outcome has been calculated based on this pro-rated
opportunity, assuming 100% achievement of performance
measures for his period of service. As a result, this STI
outcome is not directly comparable to a full-year FY2026
performance outcome. His FY2027 STI outcome will be
determined based on performance over the full 2027
financial year and reported on in next year’s annual report.
The STI outcome for Simon Mackenzie reflects his service
during FY2026.
No sign-on payment was made to Chris Blenkiron and
no exit payment was made to Simon Mackenzie.
The table below shows the amounts assessed as earned in relation to a financial year:
FIXED REMUNERATION
AT-RISK
REMUNERATION
TOTAL
REMUNERATION
EARNED IN RELATIONNAMESALARYBENEFITS
1
SUBTOTALSTI
FY2026Chris Blenkiron$592,308
2
$19,038$611,346$480,460
3
$1,091,806
FY2026Simon Mackenzie$2,140,764–$2,140,764$1,236,315$3,377,079
FY2025Simon Mackenzie$1,609,137–$1,609,137$1,163,083$2,772,221
1. Benefits include KiwiSaver, life and income protection insurance, carpark provision, and home phone rental, tolls and internet expenses. The reported remuneration
amount includes KiwiSaver, while other benefits are not separately quantified.
2. Pro-rated f rom start date of 1 December 2025.
3. FY2026 STI earned in FY2026 (1 December 2025 to 30 June 2026) but due to be paid in FY2027.
FY2027 group chief executive STI structure
For FY2027, Chris Blenkiron’s maximum STI opportunity is 110% for the enterprise performance component only.
This increases the maximum payout for the enterprise component f rom 50% to 55% of target STI. Effective f rom 1 October
2026, the individual performance component will increase f rom 25% to 35% for FY2027, taking Chris’s total target STI
opportunity to 85% of base salary. The individual performance component remains capped at its standard weighting.
41
Remuneration report

FY2027 STI goals and targets
GOAL / MEASURES WEIGHTINGTARGETS
PERCENTAGE
OF TARGET STI
Financial30%
Adjusted EBITDA
4
30%Minimum (80%): ≥ 96.5% of
board-approved adjusted EBITDA
Target (100%): 100% of board-
approved adjusted EBITDA
Maximum (110%): ≥ 103.5% of
board-approved adjusted EBITDA
Customer40%
Customer Satisfaction – for outages weighted
50% electricity unplanned, 20% electricity
planned, 20% electricity small connections
and 10% gas outages
20%Minimum (80%): 7.5
Target (100%): 7.9
Maximum (110%): 8.1
Unplanned electricity SAIDI – interruption
duration – average in minutes
10%Minimum = Target
1
Target (100%): ≤ 110.07
Maximum (110%): ≤ 98.11
Unplanned electricity SAIFI – interruption
f requency – average number
10%Minimum = Target
2
Target (100%): ≤ 1.40
Maximum (110%): ≤ 1.139
Health and Safety
3
15%
Lost-Time Injury Frequency Rate (LTIFR) Minimum (50%): ≥ 2.0 - ≤ 2.6
Target (100%): ≤ 1.4
Maximum = Target
Total Recordable Injury Frequency Rate (TRIFR)Minimum (50%): ≥ 5.5 - ≤ 6.9
Target (100%): ≤ 3.9
Maximum = Target
4

Severity Rate (SR)Minimum (50%): ≥ 34.0 - ≤ 35.5
Target (100%): ≤ 32.0
Maximum = Target
Critical Risk Control (CRC)Minimum (50%): ≥ 86% - ≤ 94%
Target (100%): ≥ 100%
Maximum = Target
People15%
Improve favourability score of:
The leaders at Vector have communicated a
vision that motivates me.
Minimum (80%): 64%
Target (100%): 70%
Maximum (110%): 73%
There is open and honest communication at
Vector.
Minimum (80%): 66%
Target (100%): 72%
Maximum (110%): 75%
Total100%50%
GOAL / MEASURES WEIGHTINGTARGETS
PERCENTAGE
OF TARGET STI
Individual Goals100%To be conf irmed
Total100%35%
5
1. No payment released unless the stretch target is achieved.
2. No payment released unless the stretch target is achieved.
3. Health and safety targets are segmented into ranges, where the maximum is achieving the stretch target at 100% – no additional upside is applied. The aggregate of
the four areas determines the percentage achievement – 0%, 50%, 75% and 100%.
4. Adjusted EBITDA targets are expressed as a percentage of the board-approved target, which is commercially sensitive.
5. The individual performance component will increase f rom 25% to 35%, effective 1 October 2026.
Consideration was given to including a climate-related measure within the FY2027 enterprise STI scheme. A stand-alone
climate measure was removed f rom the FY2026 STI f ramework following the early achievement of Vector’s 2030 target.
The board has determined not to include a stand-alone climate-related measure in the FY2027 STI. Instead, climate-related
priorities will be embedded within broader key business initiatives to support delivery of these commitments, with an
emphasis on achieving outcomes in a way that also supports strong customer experience and broader business performance.
The board will continue to review the appropriateness of including a specific climate-related performance measure within
future STI f rameworks.
42
Remuneration report
Vector Annual Report 2026

GROUP EMPLOYEES WHO EARN
OVER $100,000
The table below shows the number of employees and
former employees who received remuneration and other
benefits during FY2026 of at least $100,000 for the year
ended 30 June 2026. This includes 36 employees who are
no longer employed.
The value of remuneration benefits analysed includes:
• fixed remuneration including allowance/overtime
payments
• employer KiwiSaver/superannuation contributions
Table of employees who earn over $100,000
• short-term cash incentives relating to FY2025
• relocation and other payments made at the start of
employment
• redundancy and other payments made on termination
of employment.
The figures do not include amounts paid after 30 June
2026 that relate to the year ended 30 June 2026.
No employee of the group appointed as a director of a subsidiary or associate company receives or retains any
remuneration or benefits as a director.
REMUNERATION BANDGROUPCOMPANY
$100,001 - $110,0004747
$110,001 - $120,0003936
$120,001 - $130,0003534
$130,001 - $140,0003632
$140,001 - $150,0003531
$150,001 - $160,0004140
$160,001 - $170,0003630
$170,001 - $180,0003431
$180,001 - $190,0003331
$190,001 - $200,0002624
$200,001 - $210,0002623
$210,001 - $220,0001211
$220,001 - $230,0001212
$230,001 - $240,0001111
$240,001 - $250,00098
$250,001 - $260,00077
$260,001 - $270,00055
$270,001 - $280,00088
$280,001 - $290,00021
$290,001 - $300,00021
$300,001 - $310,00055
$310,001 - $320,00011
$330,001 - $340,00033
REMUNERATION BANDGROUPCOMPANY
$340,001 - $350,00044
$350,001 - $360,00022
$360,001 - $370,00022
$370,001 - $380,00022
$380,001 - $390,00011
$390,001 - $400,00011
$410,001 - $420,00011
$420,001 - $430,00010
$450,001 - $460,00011
$460,001 - $470,00011
$470,001 - $480,00011
$480,001 - $490,00011
$520,001 - $530,00010
$570,001 - $580,00011
$600,001 - $610,00011
$610,001 - $620,00022
$720,001 - $730,00022
$850,001 - $860,00011
$860,001 - $870,00011
$980,001 - $990,00011
$1,090,001 - $1,110,00011
$3,350,001 - $3,360,00011
495460
43
Remuneration report

GENDER PAY REPORTING
We are committed to fair and equitable pay practices
across genders.
Understanding pay reporting
Pay reporting is broadly defined as:
• Gender pay gap – identifies any difference in the
median (or average) hourly wages of men and women.
This is calculated using the following formula: (male
hourly rate – female hourly rate)/(male hourly rate)
• Gender pay equity – equal pay for equal work –
identifies any difference in the median (or average)
pay men and women receive for the same or similar
roles. This is calculated using the following formula:
(male PIR – female PIR)/(male PIR), where PIR is base
salary divided by the midpoint of the relevant internal
salary range.
Vector’s pay reporting
For this reporting, we have calculated our gender pay
equity and pay gap only as the difference between those
who identify as women and men.
As at May 2026, the median gender pay gap is 13.42%,
a year-on-year decrease f rom 15.86%. 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 and
utilities sectors.
As at May 2026, our median gender pay equity gap is
below 1.0%, a year-on-year decrease f rom 1.04%. We assess
all roles at Vector based on the skills and competencies
required for the role and then use market data to apply
an appropriate remuneration range for each role. Roles
are grouped into salary bands, which cluster similar-sized
roles together.
Each year, as part of our annual remuneration review, we
assess all our data to ensure that we are maintaining our
commitment to gender pay equity and adjust if required.
WORKFORCE DEMOGRAPHIC
AS AT 30 JUNE 2026AS AT 30 JUNE 2025
POSITION
FEMALE
POPULATION
MALE
POPULATION
GENDER
DIVERSE
NOT
DISCLOSED
FEMALE
POPULATION
MALE
POPULATION
GENDER
DIVERSE
NOT
DISCLOSED
Directors2 (28.6%)5 (71.4%)––2 (28.6%)5 (71.4%)––
Executive team1 (14.3%)6 (85.7%)––1 (14.3%)6 (85.7%)––
Direct reports to
the executive team
9 (25.0%)27 (75.0%)––8 (20.0%)32 (80.0%)––
Overall220 (37.7%)364 (62.3%)––283 (35.4%)513 (64.1%)4 (0.5%)–
GENDER PAY REPORTING
CAREER LEVELMEDIAN PAY GAPMEDIAN PAY EQUITY
Executive team
1
24.40%–
Direct reports to
the executive team
15.86%-1.29%
Overall13.42%0.48%
1. No internal remuneration bands have been established for the executive team.
Accordingly, no internal pay equity analysis has been undertaken for this population.
44
Remuneration report
Vector Annual Report 2026

DIRECTORS’ 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 levels 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.
Director remuneration is reviewed by the board f rom time
to time and normally biennially.
Fee structure
The total non-executive director remuneration pool
available to directors (in their capacity as such) in the
year ended 30 June 2026 was fixed at our 2025 annual
shareholders’ meeting at $1,104,000.
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). 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.
Non-executive directors do not participate in any incentive
or performance-based remuneration schemes.
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 BODYCHAIR PER ANNUMMEMBER PER ANNUM
Board$225,750
1
$112,875
Audit committee$30,500$15,250
Risk and assurance committee$30,500$15,250
People and remuneration committee$22,000$11,000
Pool for additional attendances$35,000
1. 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.
Actual payments
Fees payable to Vector’s directors for the 2026 financial year were as follows:
DIRECTORSFEES
Doug McKay$225,750
Alastair Bell$139,125
Vaughan Busby$131,247
Dr Paul Hutchison$130,625
Dame Paula Rebstock$152,625
Bruce Turner$154,375
Anne Urlwin$158,625
Fee structure f rom 1 July 2026
The fee structure for FY2027 was also fixed at our 2025 annual shareholders’ meeting at $1,165,000.
45
Remuneration report

Who we are
46Vector Annual Report 2026
Who we are

47
Who we are

Our board
DR PAUL HUTCHISON
MB, ChB, FRCOG, FACOG, Dip Com Health
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. 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.
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 investment projects. He is
an elected Trustee of Entrust and a director of New Zealand Post Limited and KiwiRail
Holdings Limited. Alastair also chairs the newly established Manukau Institute of
Technology and Unitec Council. Formerly, he was deputy chair of Foundation North
and a trustee of the Motutapu Restoration Trust.
VAUGHAN BUSBY
MBA, BPharm
INDEPENDENT NON-EXECUTIVE DIRECTOR
―
Appointed on 13 June 2025
Vaughan Busby is an experienced energy and infrastructure leader, bringing over 20 years
of expertise to the board. He currently serves as the chair of Netlogix Australia and the
Australian entity SFV (an energy infrastructure financing company). Previously, Vaughan
was the chair of ASX-listed SciDev and has held directorships at Energy Queensland (he
retired October 2025), EnergyCo NSW, ASX-listed Energy One, Ergon Energy, Morrison and
Infratil Energy Australia.
DOUG MCK AY
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 Procter & Gamble. He was the inaugural chief executive of the
amalgamated Auckland Council from May 2010 to December 2013 and a former director of
Bank of New Zealand (chair), Trustee (chair) of the Eden Park Trust Board, Fletcher Building
Limited, Genesis Energy Limited, National Australia Bank Limited and Ryman Healthcare
Limited. 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 Delegat Group,
IAG New Zealand and Oxbury New Zealand (chair).
48
Our board
Vector Annual Report 2026

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
chair of Precinct Properties New Zealand, and director 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)
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 AIA New Zealand, NZ Healthcare Investments (Awanui), National Hauora Coalition
1
,
New Zealand Post Limited, deputy chair of the NZX, and a director of Bluecurrent Group
and Auckland One Rail. Dame Paula is the former chair of the New Zealand Commerce
Commission.
1. Dame Paula Rebstock retired f rom the board of National Hauora Coalition in August 2026.
49
Our board

Our management team
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.
CHRIS BLENKIRON
BCom
GROUP CHIEF EXECUTIVE
―
Chris Blenkiron is the group chief executive of Vector. Prior to this, he was chief executive
of New Zealand Aluminium Smelters, Tiwai. Before Tiwai, Chris was the President of NS
BlueScope Indonesia, a joint venture between BlueScope and Nippon Steel, and has over
15 years’ experience in various leadership roles in manufacturing and building products
businesses across New Zealand, Australia and the wider Asia-Pacific region. He has
a strong commercial background and people-focused approach to leading business
outcomes and holds a BCom from the University of Otago. Chris is passionate about
the community, having previously served on the board of Youthtown, an organisation
empowering young people throughout New Zealand.
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 joined
Vector in 2006 and has extensive experience of Vector’s businesses and operations. John
is responsible for Vector’s legal, corporate governance, health and safety, risk, business
performance, assurance, enterprise programme management, privacy, and property
functions. He has worked across a range of sectors including energy, telecommunications
and financial services and previously held legal roles in major corporates and professional
services firms in London, the Cayman Islands and New Zealand.
PETER RYAN
BE
CHIEF OPERATING OFFICER – ELECTRICITY, GAS AND FIBRE
―
Peter Ryan leads the strategic operations of Vector’s electricity, gas and fibre network
businesses, with responsibility for delivering safe, reliable and efficient outcomes across
these critical infrastructure networks. He brings more than 20 years’ international
experience of the telecommunications and energy sectors. Peter has led engineering,
field, operational and customer teams responsible for the deployment, operation and
maintenance of telecommunications, electricity and gas networks. Most recently, he was
Chief Network Officer at NBN Co Australia, where he oversaw the successful deployment
and operation of the national broadband network. Peter brings deep expertise in
operations management and performance transformation, together with a proven ability
to align technical, operational and commercial strategy to optimise business objectives
and deliver strong customer outcomes.
50
Our management team
Vector Annual Report 2026

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 commercial and pricing changes across industries in disruption. He
is responsible for leading the group’s regulatory, industry, public policy, pricing, and
decarbonisation teams, combining strong stakeholder engagement and reputation
management expertise to drive Vector’s vision of electrifying Auckland. Mark is a past
recipient of the New Zealand Prime Minister’s Business Scholarship and has completed an
Advanced Management Programme at MIT in Boston.
RICHARD TIMS
BCom, CA, CPP
CHIEF DIGITAL AND DATA OFFICER
―
Richard Tims leads Vector’s digital and data functions, supporting the broader business
strategy and is responsible for driving digital innovation, enhancing customer experience,
and delivering meaningful business outcomes. Richard is past recipient of the CIO of the
Year award and combines strong leadership, commercial insight, and business focused
technical expertise leveraging 25 years’ experience spanning cybersecurity and digital
transformation, including senior roles at Lotto NZ, Paymark, PwC, and KPMG. His track
record includes leading national cyber strategy initiatives, launching digital customer
platforms, and delivering large-scale digital transformation programmes.
SARAH WILLIAMS
1
BA, Cert. Journalism
CHIEF PEOPLE, CUSTOMER AND COMMUNICATIONS OFFICER
―
Sarah Williams leads Vector Group’s people, customer 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.
1. Sarah Williams left Vector on 30 June 2026.
51
Our management team

Entrust, majority
shareholder of Vector
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
372,000 families and businesses in central, east and south Auckland. Entrust protects the $3.8 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.
HERE FOR THE COMMUNITY
Entrust is proud of the work it has undertaken for its
beneficiaries and all Aucklanders.
ENTRUST DIVIDENDS
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 $12.5 million (annually adjusted for inflation) to
be invested in projects in the Entrust district of central,
east and south Auckland every year.
In the year to 30 June 2026, key undergrounding projects
have been undertaken in Maraetai and Beachlands
improving network resilience, with further resident-
initiated projects undertaken in Peacock Street
(Glendowie), Hauraki Road (Waiheke), Rota Place (Parnell)
and Melford Street (St Mary’s Bay).
Entrust Trustees are (left to right): Alastair Bell, Rachel Adams Langton, Denise Lee (Chair), Angus Ogilvie
and Dr Paul Hutchison.
In September 2025, each of Entrust’s more
than 368,000 beneficiaries was eligible to
receive a $364 dividend – that’s $134 million
for the Auckland economy.
More than 330 undergrounding projects have
been completed since the programme began,
in central, east and south Auckland.
52
Entrust, majority shareholder of Vector
Vector Annual Report 2026

Other
disclosures
53
Other disclosures

Operating statistics
YEAR ENDED 30 JUNE20262025
ELECTRICITY
Customers
1, 4
642,134632,106
New connections13,01712,548
Net movement in customers
2
10,0287,776
Volume distributed (GWh)8,7948,634
SAIDI (minutes)
3
Normal operations – unplanned99.976.6
Normal operations – planned63.749.2
Major network events24.116.3
Total187.7142.1
GAS DISTRIBUTION
Customers
1,4
119,991120,621
New connections7101,296
Net movement in customers
2
(630)267
Volume distributed (PJ)11.711.9
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.
54
Operating statistics
Vector Annual Report 2026

Five-year financial performance
YEAR ENDED 30 JUNE ($ MILLION)20262025202420232022
PROFIT OR LOSS
Total revenue – continuing operations
1
1,195.31,104.01,013.0963.9902.9
Adjusted EBITDA – continuing operations
1
482.2401.1345.3311.0316.8
Depreciation and amortisation – continuing
operations
1
(233.0)(231.4)(218.3)(193.7)(182.8)
Adjusted EBIT – continuing operations
1
249.2169.7127.0117.3134.0
Net profit – continuing operations
1
240.2154.775.6101.5137.3
Total revenue – discontinued operations–79.2228.6487.2436.1
Adjusted EBITDA – discontinued operations–12.936.5212.3193.2
Depreciation and amortisation – discontinued
operations–(1.6)(12.5)(64.4)(107.0)
Adjusted EBIT – discontinued operations–11.323.9147.986.2
Net profit – including discontinued
operations
2
240.2167.791.01,715.8160.9
BALANCE SHEET
Total equity3,629.03,600.93,776.73,958.02,430.1
Total assets7,157.16,922.37,125.67,527.66,812.2
Economic net debt
3
2,282.02,148.32,128.61,933.13,296.8
CASH FLOW
Operating cash flow632.5515.2445.1517.1518.8
Capital expenditure(531.3)(474.9)(488.7)(639.0)(558.8)
Dividends paid(255.0)(268.7)(234.9)(169.9)(169.1)
KEY FINANCIAL MEASURES
Adjusted EBITDA/total revenue
1
40.3%36.3%34.1%32.3%35.1%
Adjusted EBIT/total revenue
1
20.8%15.4%12.5%12.2%14.8%
Equity/total assets50.7%52.0%53.0%52.6%35.7%
Return on assets (adjusted EBITDA/assets)
1
6.7%5.8%4.8%4.1%4.6%
Gearing
4
38.5%37.3%36.2%33.1%58.2%
Net interest cover (adjusted EBIT/net interest
costs) (times)3.12.52.91.82.1
Earnings (NPAT) per share (cents)24.016.78.9171.515.9
Dividends declared, cents per share26.0025.0024.0022.2516.75
1. Excludes contribution f rom gas trading businesses (sold in year ended 30 June 2025) and the metering business (sold on 30 June 2023) for all periods presented.
2. One-off items included in total net profit: FY2025 includes a $37.0 million non-cash impairment, FY2024 includes a $60.6 million non-cash impairment. FY2023
includes a $1,509.9 million gain on the 50% sale of the metering operations. FY2022 includes a $40.2 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.
55
Five-year financial performance

ADJUSTED EBITDA
$ MILLION

Electricity distribution

Gas distribution

Other

Discontinued operations –
Gas trading

Discontinued operations –
Natural gas

Discontinued operations –
Metering

Total group

Total continuing operations
0
100
200
300
400
500
600
FY2026FY2025FY2024FY2023FY2022
509.9 523.3
381.8
414.0
482.2
316.8
311.0
345.3
401.1
482.2

Electricity distribution

Gas distribution

Other
1


Discontinued operations – Gas trading

Discontinued operations – Natural gas

Discontinued operations – Metering

Total group

Total continuing operations
REVENUE
$ MILLION
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
600
650
FY2026FY2025FY2024FY2023FY2022
518.8
517.1
445.1
515.2
632.5
3.3%
2.6%
94.1%
3.3%
2.6%
94.1%
F
Y
2
0
2
6
F
Y
2
0
2
5
0.6%
91.4%
4.0%
4.0%
CAPITAL EXPENDITURE

Electricity distribution

Gas distribution

Other

Discontinued operations – Gas trading
61.5%
38.5%
F
Y
2
0
2
6
F
Y
2
0
2
5
37.3%62.7%

Economic net debt

Adjusted equity
SOURCE OF FUNDING – GEARING
AS AT 30 JUNE
0
300
600
900
1,200
1,500
FY2026FY2025FY2024FY2023FY2022
.
1,339.0
963.9
1,451.1
1,013.0
1,241.6
1,195.3
1,183.2
1,195.3
1,104.0
56
Other disclosures
Vector Annual Report 2026

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-
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 f rom or considered as a
substitute for measures reported by Vector in accordance with NZ IFRS.
Definitions:
EBITDA
Earnings before interest, taxation,
depreciation, amortisation,
impairment, associates and fair
value changes.
Adjusted EBITDA
EBITDA adjusted for customer
contributions, and significant one-
off gains, losses, revenues and/or
expenses.
GAAP to Non-GAAP reconciliation
YEAR ENDED 30 JUNE ($ MILLION)
GROUP EBITDA AND ADJUSTED EBITDA20262025
Reported net profit for the period (GAAP) – continuing operations240.2 154.7
Add back: net interest costs81.4 72.4
Add back: tax (benef it)/expense101.2 86.5
Add back: depreciation and amortisation233.0 231.4
Add back: impairment– 37.0
Add back: associates (share of net (prof it)/loss)21.6 21.1
Add back: fair value changes on f inancial instruments(4.3)8.5
EBITDA673.1 611.6
Adjusted for:
Capital contributions(190.9)(210.5)
Adjusted EBITDA – continuing operations482.2401.1
Adjusted EBITDA – discontinued operations– 12.9
Total group adjusted EBITDA482.2414.0
20262025
YEAR ENDED 30 JUNE ($ MILLION)
Segment adjusted EBITDA
SEGMENT
EBITDA
LESS CAPITAL
CONTRIBUTIONS
SEGMENT
ADJUSTED
EBITDA
SEGMENT
EBITDA
LESS CAPITAL
CONTRIBUTIONS
AND OTHER
MOVEMENTS
SEGMENT
ADJUSTED
EBITDA
Electricity distribution622.9 (182.6)440.3 547.8 (195.9)351.9
Gas distribution54.5 (7.6)46.9 60.0 (13.3)46.7
Total reported segments677.4 (190.2)487.2 607.8 (209.2)398.6
Other(4.3)(0.7)(5.0)3.8 (1.3)2.5
Total – continuing operations673.1 (190.9)482.2 611.6 (210.5)401.1
Discontinued operations –
gas trading–––12.9 – 12.9
Total discontinued operations–––12.9 – 12.9
Total group673.1 (190.9)482.2 624.5 (210.5)414.0
57
Non-GAAP financial information

Financials
Financials
Vector Annual Report 202658

CONTENTS
Financial Statements
Profit or Loss 60
Other Comprehensive Income 61
Balance Sheet 62
Cash Flows 63
Changes in Equity 64
Notes to the Financial Statements 65
Independent Auditor’s Report 101
Financial Statements
2026 FINANCIAL STATEMENTS
These financial statements for the year ended 30 June 2026 are dated
17 August 2026, and signed for and on behalf of Vector Limited by:
And management of Vector Limited by:
CHAIR
17 August 2026
GROUP CHIEF EXECUTIVE
17 August 2026
CHIEF FINANCIAL OFFICER
17 August 2026
CHAIR, AUDIT COMMITTEE
17 August 2026
59
Financial statements

Profit or Loss
for the year ended 30 June
NOTE
2026
$M
2025
$M
Continuing operations:
Revenue61,195.31,104.0
Operating expenses7(512.7)(492.4)
Non-operating losses3(9.5)–
Depreciation and amortisation(233.0)(231.4)
Interest income817.625.6
Interest costs 9(99.0)(98.0)
Impairment of goodwill13–(37.0)
Fair value change on financial instruments22.24.3(8.5)
Share of net profit/(loss) in joint ventures16.1(21.6)(21.1)
Profit/(loss) before income tax341.4241.2
Income tax benefit/(expense)17(101.2)(86.5)
Net profit/(loss) for the period from continuing operations240.2154.7
Net profit/(loss) for the period from discontinued operations5–13.0
Net profit/(loss) for the period 240.2167.7
Net profit/(loss) for the period attributable to
Owners of the parent – continuing operations240.2154.7
Owners of the parent – discontinued operations–11.8
Non-controlling interests – discontinued operations–1.2
Basic and diluted earnings per share (cents)
Continuing operations25.324.015.5
Discontinued operations25.3–1.2
Total24.016.7
60Vector Annual Report 2026
Financial statements

Other Comprehensive Income
for the year ended 30 June
NOTE
2026
$M
2025
$M
Net profit/(loss) for the period240.2167.7
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 reserves22.32.1(37.4)
Translation of foreign operations20.0(2.3)
Share of other comprehensive income of joint ventures16.120.7(19.9)
Other comprehensive income for the period net of tax – continuing operations42.8(59.6)
Total comprehensive income for the period net of tax283.0108.1
Total comprehensive income for the period attributable to
Owners of the parent – continuing operations283.095.1
Owners of the parent – discontinued operations–11.8
Non-controlling interests – discontinued operations–1.2
61
Financial statements

Balance Sheet
as at 30 June
NOTE
2026
$M
2025
$M
CURRENT ASSETS
Cash and cash equivalents105.423.3
Trade and other receivables1283.6100.9
Contract assets116.492.5
Derivatives222.82.5
Inventories–11.5
Contingent consideration115.08.1
Income tax1735.319.6
Total current assets248.5258.4
NON-CURRENT ASSETS
Receivables123.44.4
Derivatives2297.063.8
Contingent consideration1121.620.0
Investment in joint venture16.1580.4605.5
Intangible assets131,046.71,051.9
Property, plant and equipment (PPE)145,118.54,807.9
Right of use assets (ROU)15.140.941.3
Income tax17–69.0
Deferred tax180.10.1
Total non-current assets6,908.66,663.9
Total asset s7,157.16,922.3
CURRENT LIABILITIES
Trade and other payables19213.5206.4
Provisions0.50.9
Borrowings21170.0–
Derivatives22–0.3
Contract liabilities 57.052.6
Lease liabilities15.24.86.0
Total current liabilities445.8266.2
NON-CURRENT LIABILITIES
Borrowings212,084.62,049.1
Derivatives2288.4143.6
Contract liabilities2.02.9
Lease liabilities15.247.545.5
Deferred tax 18859.8814.1
Total non-current liabilities3,082.33,055.2
Total liabilities3,528.13,321.4
EQUITY
Equity attributable to owners of the parent3,629.03,600.9
Total equity3,629.03,600.9
Total equity and liabilities7,157.16,922.3
Net tangible assets per share (cents)25.3258.2254.9
Gearing ratio (%)25.338.537.3
62Vector Annual Report 2026
Financial statements

Cash Flows
for the year ended 30 June
NOTE
2026
$M
2025
$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers997.9973.1
Customer contributions received191.5190.0
Dividend received from joint venture32.6–
Interest received 14.724.4
Payments to suppliers and employees(500.3)(566.5)
Interest paid(102.5)(103.1)
Income tax paid (1.4)(2.7)
Net cash flows from/(used in) operating activities24.1632.5515.2
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of PPE and software intangibles0.80.4
Purchase and construction of PPE (503.9)(443.7)
Purchase and development of software intangibles(27.4)(31.2)
Proceeds from contingent consideration1111.710.8
Proceeds from sale of discontinued operations1.7158.0
Cash balance disposed in sale of discontinued operations–(5.6)
Repayments of loans advanced12.136.2
Other investing cash flows0.10.7
Net cash flows from/(used in) investing activities(504.9)(274.4)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings3410.0260.0
Repayments of borrowings3(295.0)(305.0)
Dividends paid 3(255.0)(268.7)
Lease liabilities payments(5.5)(8.4)
Net cash flows from/(used in) financing activities(145.5)(322.1)
Net increase/(decrease) in cash and cash equivalents(17.9)(81.3)
Cash and cash equivalents at beginning of the period23.3104.6
Cash and cash equivalents at end of the period5.423.3
Cash and cash equivalents comprise:
Bank balances and on-call deposits5.423.3
5.423.3
Discontinued operations
The cash flows above reflect the entire Vector group cash flows for the year ended 30 June 2026. Comparative information also
includes cash flows from discontinued operations from Vector’s gas trading business, refer to note 5 for more information.
63
Financial statements

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 2024880.0(0.1)26.2(12.9)2,868.315.23,776.7
Net profit/(loss) for the period––––166.51.2167.7
Other comprehensive income––(37.4)(8.8)(13.4)–(59.6)
Total comprehensive income––(37.4)(8.8)153.11.2108.1
Dividends ––––(267.5)(1.2)(268.7)
Sale of discontinued
operations–––––(15.2)(15.2)
Total transactions with owners––––(267.5)(16.4)(283.9)
Balance at 30 June 2025880.0(0.1)(11.2)(21.7)2,753.9–3,600.9
Net profit/(loss) for the period––––240.2–240.2
Other comprehensive income––2.140.7––42.8
Total comprehensive income––2.140.7240.2–283.0
Dividends 3––––(255.0)–(255.0)
Sale of treasury shares–0.1––––0.1
Total transactions with owners–0.1––(255.0)–(254.9)
Balance at 30 June 2026880.0–(9.1)19.02,739.1–3,629.0
64Vector Annual Report 2026
Financial statements

Notes to the Financial Statements
Note 1Company information66
Note 2Summary of material accounting policies66
Note 3Material transactions and events67
Note 4Segment information68
Note 5Discontinued operations71
Note 6Revenue71
Note 7Operating expenses72
Note 8Interest income73
Note 9Interest costs73
Note 10Cash and cash equivalents73
Note 11Contingent consideration74
Note 12Trade and other receivables74
Note 13Intangible assets76
Note 14Property, plant and equipment (PPE)78
Note 15Leases79
Note 16Investments80
Note 17Income tax expense/(benefit)83
Note 18Deferred tax84
Note 19Trade and other payables84
Note 20Fair values85
Note 21Borrowings87
Note 22Derivatives and hedge accounting89
Note 23Financial risk management94
Note 24Cash flows97
Note 25Equity98
Note 26Related party transactions100
Note 27Contingent liabilities100
Note 28Events after balance date100
65
Notes to the financial statements

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 2026. 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, 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 (“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, 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 AREAS
JUDGEMENTS /
ESTIMATESNOTE
Valuation of contingent consideration receivableEstimates11, 20
Intangible assets: valuation of goodwill, risk of impairmentEstimates13
Property, plant and equipment: classification of costsJudgements14
Leases: assessment of lease term for perpetual leases and
leases with renewal optionsJudgements15
Valuation of derivative financial instrumentsEstimates20, 22
66Vector Annual Report 2026
Notes to the financial statements

New standards and
interpretations adopted
A number of new standards and interpretations are effective from 1 July 2025, but they do not
have a material effect on the group’s financial statements.
A number of new standards and interpretations are effective for annual periods beginning
on or after 1 July 2026 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.
The group is currently assessing the impact of NZ IFRS 18 Presentation and Disclosure in
Financial Statements, which is mandatory from the year ended 30 June 2028. The standard
introduces new requirements for the structure and content of the profit or loss, including:
—classifying results into operating, investing and financing categories;
—defined subtotals; and
—disclosures reconciling management defined performance measures to the nearest
defined subtotal.
Based on the preliminary assessment, the new presentation and disclosure requirements
are expected to change the layout of the profit or loss but will not impact the group’s results.
NZ IFRS 18 Presentation and Disclosure in Financial Statements is required to be applied
retrospectively, and comparative information will be restated upon adoption.
3. Material transactions
and events
Material transactions and events that have impacted the financial year ended 30 June 2026:
Sale of E-Co Products
Group Limited
On 1 August 2025, Vector entered and completed an agreement with HRV NZ Limited for the
sale of its entire shareholding in Eco- Products Group Limited for $2.5 million. A non-operating
loss of $9.5 million has been recognised on this transaction.
Commerce commission
decisions
On 27 May 2026, the Commerce Commission (“the Commission”) released its final default price
path determination for gas distribution businesses applying from 1 October 2026 through to
30 September 2031 (“DPP4”).
While New Zealand’s gas production has halved since 2016 and gas demand is expected
to decline over time, the Commission considers gas will remain an important part of
New Zealand’s energy mix for at least the next two decades. Given this expectation, gas
pipelines must be maintained and operated to provide reliable services to consumers who
continue to use gas.
The DPP4 decision reflects the Commission’s long-term approach to setting prices and
revenues in a way that can be sustained over time. This includes balancing the right incentives
for maintaining gas distribution networks while recognising a potentially shorter economic life
for the assets. The Commission have addressed this in their final DPP4 decision by retaining
accelerated depreciation, which enables us to recover the residual value of the residual
regulatory asset base faster. This decision impacts the future cash flows we can expect to earn
from the gas distribution business.
Regulatory quality thresholdsFor both the regulatory years to 31 March 2025 and 31 March 2026, Vector was within the
unplanned SAIDI and SAIFI quality limits.
2. Summary of material
accounting policies continued
67
Notes to the financial statements

Regulatory consultationsIn November 2025, the Electricity Authority (the “Authority”) released a round of consultation
on its network connection pricing reform.
This consultation (“Reducing barriers for new connections: upfront charges and distributor
obligations”) proposed to introduce targeted intervention of connection pricing where upfront
connection costs are too high, along with distributor obligations for connecting customers.
The Authority’s decision paper was released in July 2026, along with two further consultations.
It has introduced an interim measure (the ”targeted intervention” framework) that enables the
Authority to examine distributors’ pricing methodologies and requires them to be adjusted
to comply with the new “balance point” principle. The targeted intervention came into effect
on 1 August 2026 and is set to expire in 2030, although directions under the framework
may continue.
The Authority has not introduced an obligation for distributors to connect customers, but
this remains its preferred direction. Instead, it will monitor supply issues and work towards
its preferred direction.
The first consultation was on the Authority’s proposed guidance on the balance point
principles. Vector has submitted its response on this consultation.
The second consultation is an issues paper for further reform of connection pricing. This
paper sets out the Authority’s initial thinking on possible reforms and seeks feedback
on the scope of the next stage of work. This includes how connection costs and one-off
charges are determined, pricing for areas not currently covered by the rules, and related
issues such as contestability in connection service. Vector will submit on this consultation
by 24th August 2026.
These determinations will influence how Vector manages its customer connections.
Debt programmeDuring the year ended 30 June 2026, the group drew down $410.0 million and repaid
$295.0 million of bank facilities for a net drawdown of $115.0 million from the bank facilities
(year ended 30 June 2025: net $205.0 million movement). Refer to note 21 for more details
on borrowings.
DividendsVector Limited’s final dividend for the year ended 30 June 2025 of 13.0 cents per share
(unimputed) was paid on 17 September 2025. The total dividend paid was $130.0 million.
Vector Limited’s interim dividend for the year ended 30 June 2026 of 12.5 cents per share
(unimputed) was paid on 31 March 2026. The total dividend paid was $125.0 million.
4. Segment information
SegmentsVector reports 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:
Electricity distributionAuckland electricity distribution services.
Gas distributionAuckland gas distribution services.
Other includes telecommunications, digital services, energy solution services and corporate
operations. The reportable segments also include a portion of shared corporate costs, in line
with allocations used for the most recent regulatory reporting period. There have been no
changes to the reportable segments and policies during the year.
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.
3. Material transactions
and events continued
68Vector Annual Report 2026
Notes to the financial statements

Activities not reported
in segments
Other activities engaged by the group comprise shared services and other business activities.
Revenues generated by these activities are incidental to Vector’s operations and/or do not
meet the definition of an operating segment under NZ IFRS 8. The results for these activities
are reported in the reconciliations of segment information to the group’s financial statements.
Interest income, interest costs, fair value change on financial instruments, and share of net
profit/(loss) in joint venture 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 2026, the customers contributed $254.2 million (2025: $222.8 million), $181.3 million
(2025: $131.6 million), $159.5 million (2025: $131.5 million) and $151.4 million (2025: $123.4 million)
respectively, which is reported across all segments.
30 JUN 2026
12 MONTHS
ELECTRICITY
DISTRIBUTION
$M
GAS
DISTRIBUTION
$M
OTHER
$M
INTER-
SEGMENT
ELIMINATIONS
$M
TOTAL
$M
External revenue:
Sales903.268.732.5–1,004.4
Customer contributions182.67.60.7–190.9
Inter-segment revenue2.1–12.9(15.0)–
Segment revenue1,087.976.346.1(15.0)1,195.3
External expenses:
Electricity transmission expenses(231.3)–––(231.3)
Network and asset maintenance(84.7)(8.7)(2.2)–(95.6)
Employee benefit expenses(50.7)(4.5)(13.9)–(69.1)
Other expenses(87.5)(8.5)(20.7)–(116.7)
Inter-segment expenses(10.8)(0.1)(4.1)15.0–
Segment operating expenses(465.0)(21.8)(40.9)15.0(512.7)
Non-operating losses––(9.5)–(9.5)
Segment EBITDA622.954.5(4.3)–673.1
Depreciation and amortisation(188.0)(26.1)(18.9)–(233.0)
Segment EBIT434.928.4(23.2)–440.1
Segment capital expenditure512.114.117.8–544.0
Reconciliation of segment reporting to profit or loss:
30 JUN 2026
12 MONTHS
$M
Segment EBIT reported in the segment information440.1
Interest income17.6
Interest costs(99.0)
Fair value change on financial instruments4.3
Share of net profit/(loss) in joint venture(21.6)
Profit before tax from continuing operations341.4
4. Segment information continued
69
Notes to the financial statements

4. Segment information continued
30 JUN 2025
12 MONTHS
ELECTRICITY
DISTRIBUTION
$M
GAS
DISTRIBUTION
$M
OTHER
$M
INTER-
SEGMENT
ELIMINATIONS
$M
TOTAL
$M
External revenue:
Sales762.267.264.1–893.5
Customer contributions195.913.31.3–210.5
Inter-segment revenue2.0–16.7(18.7)–
Segment revenue960.180.582.1(18.7)1,104.0
External expenses:
Electricity transmission expenses(200.7)–––(200.7)
Network and asset maintenance(76.5)(8.3)(2.8)–(87.6)
Employee benefit expenses(45.9)(4.5)(29.4)–(79.8)
Other expenses(76.4)(7.6)(40.3)–(124.3)
Inter-segment expenses(12.8)(0.1)(5.8)18.7–
Segment operating expenses(412.3)(20.5)(78.3)18.7(492.4)
Segment EBITDA547.860.03.8–611.6
Depreciation and amortisation(181.1)(29.2)(21.1)–(231.4)
Impairment –(37.0)––(37.0)
Segment EBIT366.7(6.2)(17.3)–343.2
Segment capital expenditure432.019.019.1–470.1
Reconciliation of segment reporting to profit or loss:
30 JUN 2025
12 MONTHS
$M
Segment EBIT reported in the segment information343.2
Interest income25.6
Interest costs(98.0)
Fair value change on financial instruments(8.5)
Share of net profit/(loss) in joint venture(21.1)
Profit before tax from continuing operations241.2
70Vector Annual Report 2026
Notes to the financial statements

5. Discontinued operations
On 31 January 2025, Vector completed the sale of the Ongas LPG business, and shares in Liquigas Limited (the gas trading
business”).
The disposal group was presented as discontinued operations in the 2025 Annual Report. Comparatives show the discontinued
operations separately from the continuing operations.
6. Revenue
6.1 Revenue from contracts with customers
2026
$M
2025
$M
Regulated networks – sale of distribution services971.9829.4
Regulated networks – third party contributions190.2209.2
Other33.265.4
Total 1,195.31,104.0
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.
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.
71
Notes to the financial statements

6. Revenue continued
6.2 Revenue in relation to contract liabilities
The following table sets out the expected timing of future recognition of revenue relating to performance obligations not
satisfied (or partially satisfied) at balance date:
2026
1 – 2 YEARS
$M
3 – 4 YEARS
$M
TOTAL
$M
Electricity distribution services0.3–0.3
Telecommunication services0.30.91.2
Total0.60.91.5
2025
1 – 2 YEARS
$M
3 – 4 YEARS
$M
TOTAL
$M
Electricity distribution services0.4–0.4
Telecommunication services0.20.81.0
Total0.60.81.4
PoliciesNo information is provided in relation to the remaining performance obligations at 30 June
2026 or 30 June 2025 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, $41.2 million was included in the contract liability balance
at the beginning of the reporting period. (2025: $61.2 million).
7. Operating expenses
NOTE
2026
$M
2025
$M
Electricity transmission 4231.3200.7
Energy solutions cost of sales1.818.3
Network and asset maintenance 495.687.6
Other direct expenses46.548.6
Employee benefit expenses469.179.8
Administration expenses11.913.2
Professional fees14.47.6
IT expenses40.032.0
Other indirect expenses 2.14.6
Total 512.7492.4
Fees paid to auditors
Fees were paid to KPMG as follows:
2026
$
2026
$
2025
$
2025
$
Audit or review of financial statements670,200671,200
Audit related services:Regulatory assurance420,000378,000
Regulatory agreed upon procedures68,185121,300
ESG assurance195,000176,500
Other assurance25,70025,700
Other agreed upon procedures10,30010,300
Total audit related services721,185711,800
Tax services:R&D tax credits100,00074,000
Other services:Risk management–60,000
Total1,491,3851,517,000
72Vector Annual Report 2026
Notes to the financial statements

7. Operating expenses continued
Fees paid to auditors
continued
The audit fee includes fees for both the annual audit of the financial statements and the review
of the interim financial statements. Regulatory assurance consists of the audit of regulatory
disclosures. Regulatory agreed upon procedures includes compliance and one-off regulatory
assurance reviews. ESG assurance includes climate related disclosures and greenhouse gas
calculations. Other assurance includes the audit of guaranteeing group financial statements
and bond registers. Other agreed upon procedures includes trustee reporting and annual
general meeting vote scrutineering
8. Interest income
NOTE
2026
$M
2025
$M
Interest income14.921.2
Unwinding of discount of contingent consideration112.74.4
Total 17.625.6
PoliciesInterest income includes income from funds invested and shareholder loans, recognised using
the effective interest rate method.
9. Interest costs`
NOTE
2026
$M
2025
$M
Interest on borrowings98.195.9
Amortisation of borrowing costs3.64.4
Capitalised interest(5.9)(5.6)
Interest on leases15.33.23.3
Total 99.098.0
PoliciesInterest costs include interest expense on borrowings, recognised using the effective interest
rate method.
Capitalised interestVector has capitalised interest to PPE and software intangibles while under construction at an
average rate of 4.5% per annum (2025: 4.4%).
10. Cash and cash
equivalents
2026
$M
2025
$M
Cash and cash equivalents 5.423.3
PoliciesCash and cash equivalents are carried at amortised cost, and includes deposits that are on call.
73
Notes to the financial statements

11. Contingent
consideration
NOTE
2026
$M
2025
$M
Carrying value of contingent consideration
Opening balance 28.142.3
Unwinding of discount82.74.4
Payments received(11.7)(10.8)
Fair value movement22.27.5(7.8)
Closing balance at 30 June26.628.1
Comprising:
Current5.08.1
Non-current21.620.0
Key accounting estimateThe fair value of the contingent consideration was estimated by calculating the present value
of the future expected cash flows payable by Todd Petroleum Mining Company Limited to
Vector. The future period of payment is not fixed by the contract but is dependent on the
remaining useful life of the Kapuni gas treatment plant, which is directly correlated to the
volume of gas available at the Kapuni gas field and the rate at which the gas is extracted.
The values of future cash flows are highly dependent on the future sale prices of gas products
(LPG and oil) in the market. Underpinning this all is the assumption that there is an active
market for processed gas products in the future and government policy relating to the
transition of New Zealand to a low carbon economy.
Management have re-estimated the same unobservable inputs when calculating the fair value
of the contingent consideration at balance date. Refer to note 20 for details and sensitivity
analysis around material unobservable inputs used in measuring fair values.
12. Trade and other
receivables
2026
$M
2025
$M
Current
Trade receivables 62.575.4
Interest receivable11.111.7
Prepayments7.78.7
Other receivables2.35.1
Balance at 30 June83.6100.9
Non-current
Other contract receivables–0.9
Other receivables3.43.5
Balance at 30 June 3.44.4
74Vector Annual Report 2026
Notes to the financial statements

12. Trade and other
receivables continued
At 30 June, the exposure to credit risk for trade and other contract receivables by type of
counterparty was as follows.
2026
$M
2025
$M
Not credit
impaired
Credit
impaired
Not credit
impaired
Credit
impaired
Business customers35.4–54.21.1
Mass market customers (includes
customer contributions)22.4–15.2–
Third party asset damages–11.6–10.0
Residential and other––2.00.1
Total gross amount57.811.671.411.2
Loss allowance–(6.9)–(6.3)
Total carrying amount57.84.771.44.9
The following table provides information about the exposure to credit risk and expected credit
losses for trade and other contract receivables as at 30 June.
2026
$M
2025
$M
Gross
amount
Loss
allowance
Gross
amount
Loss
allowance
Not past due53.5(0.1)37.4(0.3)
Past due 1-30 days3.7(0.2)30.6(0.1)
Past due 31-120 days3.6(0.1)5.1(0.3)
Past due more than 120 days8.6(6.5)9.5(5.6)
Balance at 30 June69.4(6.9)82.6(6.3)
PoliciesTrade receivables are predominantly billed receivables. Sales to business customers are billed
monthly. Trade receivables from mass market, residential and other customers are recognised
as they are originated.
Other receivables represent the amount of contractual cash flows that the group expects
to collect from third parties but that did not arise from contracts with customers. Where
contractual cash flows are expected or contracted to be received after 12 months, the balance
is presented as non-current.
Expected credit lossesIn assessing credit losses for trade receivables, the group applies the simplified approach and
records lifetime expected credit losses (“ECLs”) on trade receivables. The group considers both
quantitative and qualitative inputs. Quantitative data includes past collection rates, industry
statistics, ageing of receivables, and trading outlook. Qualitative inputs include past trading
history with the group.
Lifetime ECLs result from all possible default events over the expected life of a trade
receivable. The group considers the probability of default upon initial recognition of the trade
receivable, based on reasonable and available information on the group’s customers and
groups of customers. The group’s trade receivables are monitored in two groups: business
customers, and mass market residential customers.
The group’s customer acceptance process includes a check on credit history, profitability, and
the customer’s external credit rating if available. Different levels of sale limits are also imposed
on customer accounts by nature.
75
Notes to the financial statements