Slide 1: Financial and Operational Results
Financial and Operational Results HALF YEAR ENDING 31 DECEMBER 2024 Presentation Date: 26 February 2025
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 Figures shown in $NZD Millions Half Year FY25 vs Half Year FY24 Blue bars represent the ongoing continuing operations of Vector. 626 630 Grey bars represent the discontinued operations of Gas Trading FY24 includes 69 which included Ongas, Liquigas and in prior years
Slide 6: Financial Performance
FINANCIAL PERFORMANCE 6
Slide 7: Earnings from continuing operations are up $28m / 16%
Earnings from continuing operations are up $28m / 16% FY25 H1 adjusted EBITDA movement vs prior year ($M) +25 +1 +2 202 174 FY24 Electricity Gas Other FY25 Distribution • With the sale of our gas trading segment, we now have a new segment reporting structure of electricity, gas distribution and othe
Slide 8: NPAT from continuing operations is $118m
NPAT from continuing operations is $118m FY25 H1 NPAT from continuing operations movement vs prior year ($M) +60 -5 118 +30 -15 +28 19 FY24 Adj. EBITDA Capital Net Interest FY24 Other FY25 Contributions Impairment “Other” includes, depreciation and amortisation, share of associates, fair value chang
Slide 9: Gross capex of $261m
Gross capex of $261m Gross Capital Expenditure ($M) FY25 H1 Gross Capex movement vs prior year ($M) 261 +30 -4 -2 +3 261 234 234 18 213 Gas D’ and 17 Other Capex 172 180 182 123 93 51 97 45 72 Electricity 243 Network 218 Capex 127 129 142 138 109 116 H1 20 H1 21 H1 22 H1 23 H1 24 H1 25 FY24 Electric
Slide 10: Group debt
Group debt Vector’s Standard and Poor’s credit rating remains at BBB+ with a stable outlook Net Economic Debt and Gearing ($B) Debt Maturity Profile ($M) 57% 57% 58% 59% 4,000 56% 56% 60% 3,500 225 50% 3,000 3.30 3.41 307 3.11 3.16 36% 36% 38% 2.92 3.01 33% 40% 2,500 2,000 2.23 30% 574 2.14 2.13 277
Slide 11: Segment Performance
SEGMENT PERFORMANCE 11
Slide 12: Electricity earnings up $25m / 17%
Electricity earnings up $25m / 17% Adjusted EBITDA Movement ($M) • Electricity revenue is higher due to +28 -3 172 price adjustments reflecting the 147 impact of high historic inflation. We are now recovering this through higher prices as per the regulatory model which has a 2 year lag on recovery.
Slide 13: Gas Distribution earnings up $1m / 3%
Gas Distribution earnings up $1m / 3% Adjusted EBITDA Movement ($M) • Our Gas Distribution business builds and +1 -0 23 24 maintains the gas network within the wider Auckland region. • Gas revenue is higher due to price increases and prior period wash up partially offset by lower volumes. Volumes we
Slide 14: Bluecurrent
Bluecurrent • Vector’s 50% equity accounted share of Bluecurrent’s FY25 H1 net loss was $10.8m (includes amortisation of intangible assets and depreciation). • While this business is making a net loss, it is still cash generative and performing in line with expectations. • We are forecasting to rece
Slide 15: Outlook & Market Commentary
OUTLOOK & MARKET COMMENTARY 15
Slide 16: Outlook – FY25
Outlook – FY25 • With the dividend policy linked to cashflow, going forward we will be providing guidance on adjusted EBITDA, gross capex and capital contributions. • For FY25 the range is as follows. Note that this includes discontinued operations. • Adjusted EBITDA: $400m - $415m • Gross Capex: $4
Slide 17: Interim FY25 Dividend
Interim FY25 Dividend • Interim dividend of 12.00 cents per Dividend (cents per share) 24.00 share with no imputation 22.25 1.75 • Dividend record date of 21 March 2025 and payment date of 31 March 5.50 2025 16.50 16.50 16.75 16.75 16.00 16.25 15.00 15.25 15.50 15.75 • The new dividend policy aims t
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 Electricity Gas Distribution Other 1 Total H1 H1 H1 H1 H1 H1 H1 H1 Δ Δ Δ Δ FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 Adjusted EBITDA Revenue excl. Capital 344 372 28 +8% 33 34 1 +3% 33 31 (2) -5% 410 437 28 +7% Contributions Operating Expenses (197) (200) (3) -2
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 FY24 FY25 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
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