Slide 1: Financial and Operational Results
Financial and Operational Results FULL YEAR ENDING 30 June 2024 27 AUGUST 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. Forward-looking statements often include words such as “anticipates”, “estimates”, “expects”, “intends”, “plans”, “believes” and similar words in connection with discussions of future operating or financial performance. The forward-lo
Slide 3: Agenda
Agenda • Overview of Financial Performance • Financial Performance • Segment Performance • Outlook & Market Commentary • Q&A 3
Slide 4: Overview of Financial Performance
OVERVIEW OF FINANCIAL PERFORMANCE 4
Slide 5: Overview of financial performance
Overview of financial performance Full Year FY24 vs Full Year FY23 1,716 Figures shown in $NZD Millions 1,451 Discontinued Operations 259 1,242 Metering 100 110 Discontinued Operations One off Natural Gas gain on 1,510 sale 700 523 188 510 517 1,083 1,141 382 445 188 191 12 17 15 12 513 510 434 320
Slide 6: Financial Performance
FINANCIAL PERFORMANCE 6
Slide 7: Earnings from continuing operations are up $45m or 14%
Earnings from continuing operations are up $45m or 14% FY24 Year on Year Adjusted EBITDA Movement ($M) +36 +11 -1 365 320 FY23 Regulated Gas Corporate FY24 Networks Trading and Other* *Corporate and Other includes Corporate, VTS, HRV, PowerSmart and Vector Fibre. Corporate and Other is not a reporta
Slide 8: NPAT from continuing operations is $80m
NPAT from continuing operations is $80m FY24 Year on Year NPAT from Continuing Operations Movement ($M) +93 -60 +7 -26 -25 +45 -56 102 80 FY23 Adj. EBITDA Capital Depreciation Net Interest Impairment Share of Tax & FY24 Contributions and Associates Other Amortisation “Tax & Other” includes fair valu
Slide 9: Gross capex of $510m
Gross capex of $510m Gross Capital Expenditure ($M) FY24 Year on Year Capex Movement ($M) Net capex 513 +8 +15 -26 510 513 510 Capital contributions 378 389 188 Other Gross 355 195 Capex 304 86 123 152 79 Networks 423 446 324 315 Gross Capex 225 269 256 237 FY19 FY20 FY21 FY22 FY23 FY24 FY23 Network
Slide 10: Group debt
Group debt Vector’s Standard and Poor’s credit rating remains at BBB+ with a positive outlook Net Economic Debt and Gearing ($B) Debt Maturity Profile ($M) 57% 58% 4,000 56% 60% 53% 3,500 47% 49% 50% 3,000 3.30 250 3.11 36% 2.92 33% 40% 2,500 2.67 307 225 2,000 2.42 30% 2.22 2.13 1.93 574 1,500 20%
Slide 11: Segment & Bluecurrent Performance
SEGMENT & BLUECURRENT PERFORMANCE 11
Slide 12: Network earnings higher
Network earnings higher Adjusted EBITDA Movement ($M) • Electricity revenue is higher due to price +32 +6 -2 407 372 adjustments reflecting the impact of high historic inflation. We are now recovering this through higher prices as per the regulatory model (2 year lag) • Gas revenue up due to increas
Slide 13: Gas Trading earnings benefitted from higher Ongas LPG margins
Gas Trading earnings benefitted from higher Ongas LPG margins Adjusted EBITDA Movement ($M) • Improved performance from the LPG business. +1 23 +10 Reduction in LPG input costs due to lower international Saudi Aramco prices, plus higher prices and volumes. This is partially offset by higher 12 cost
Slide 14: Bluecurrent
Bluecurrent • Vector Metering has been renamed Bluecurrent (BC) • Vector’s 50% equity accounted share of BC’s FY24 net loss was $24.9m (includes amortisation of intangible assets) • Vector received $30.6m in cash distributions from BC in FY24, plus $19.9m received post balance date, to total $50.5m
Slide 15: Outlook & Market Commentary
OUTLOOK & MARKET COMMENTARY 15
Slide 16: Outlook
Outlook • Auckland electricity connection growth is expected to decline in FY25 to c12,000 reflecting a reduction in connection requests over the last 6 months. Gas connection growth is less certain, partly due to a shortage of natural gas. • The Commerce Commission issued its draft DPP4 reset decis
Slide 17: Final FY24 Dividend
Final FY24 Dividend • Final unimputed dividend of 13.00 Dividend (cents per share) cents per share plus a special dividend of 1.75 cents per share 24.00 22.25 1.75 • Dividend record date of 6 September and payment date of 16 September 5.50 2024 16.50 16.50 16.75 16.75 15.75 16.00 16.25 15.00 15.25 1
Slide 18: Q&A Any Questions?
Q&A ANY QUESTIONS? 18
Slide 19: Appendices
APPENDICES 19
Slide 20: Segment Results – Continuing Operations
Segment Results – Continuing Operations Inter-Segment Networks Gas Trading Corporate & Other1 Total Group Elimination FY23 FY24 Δ FY23 FY24 Δ FY23 FY24 Δ FY23 FY24 FY23 FY24 Δ EBITDA Revenue excl. Capital 716 753 +5% 119 128 +8% 77 80 +4% (17) (15) 894 946 +6% Contributions Operating Expenses (344)
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Vector’s standard profit measure prepared under New Zealand GAAP GAAP to Non-GAAP reconciliation FY23 FY24 is net profit. Vector has used non-GAAP profit measures when discussing financial performance in this document. The directors and Group EBITDA and Adjusted EBITD
Slide 22: End
END 22
Slide 23: Supplementary Interim Information: Adjusted EBITDA, Gas Distribution Volumes
Supplementary Interim Information Regulated Networks Adjusted EBITDA $m FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Electricity 347.1 312.8 309.9 325.2 317.7 318.7 329.9 299.9 312.2 319.5 326.2 355.5 Gas Distribution Auckland 44.8 38.3 39.9 43.4 43.5 40.0 37.0
Slide 24: Net Gas ICPs, Total Gas ICPs, Gas Distribution Lines Revenue
Net New ICPs # of ICPs (net) FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Q1 620 524 839 616 878 872 560 674 624 368 397 228 Q2 415 566 713 727 718 728 700 778 848 788 382 443 Q3 508 558 584 809 626 468 378 484 582 30 617 - 29 Q4 377 892 645 605 126 491 775 382
Slide 25: Gas Distribution Adjusted EBITDA, Capital Contributions, Regulated Capex
Gas Distribution Adjusted EBITDA $m FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 H1 24.5 23.1 21.4 23.8 23.5 22.6 20.8 20.9 21.0 19.2 23.3 26.3 H2 20.2 15.2 18.5 19.5 20.0 17.4 16.3 16.9 17.4 17.1 22.1 25.3 Total 44.8 38.3 39.9 43.4 43.5 40.0 37.0 37.8 38.4 36.