Slide 1: Financial and Operational Results
Vi) vector HALF YEAR ENDED 31 DECEMBER 2020 Financial and Operational Results 23 February 2021
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: Dividend (cents per share)
• Dividend (cents per share) − − • FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Interim Final
Slide 4: H1 2021 Business Overview
H] 2021 Business Overview Electricity and Gas Metering Gas Trading Distribution * 9,804 new electricity and gas connections + In Hl, deployed 52k advanced meters in + Sale of Kapuni assets completed added, up 15.5% on prior six month Australia and 18k in NZ 31 March 2020 comparative period + Advance
Slide 5: H1 2021 Financial Performance ($M)
H1 2021 FINANCIAL PERFORMANCE ($M) 699.6 647.7 H1 2020 H1 2021 264.5 273.8 260.7 271.3 240.0 254.0 102.1 80.5 82.5 82.5 Revenue Adjusted EBITDA Capital Expenditure Net Profit Operating Cash Flow Half Year Dividend
Slide 6: H1 2021 Adjusted EBITDA Movement ($M)
H1 2021 ADJUSTED EBITDA MOVEMENT ($M) +7.0 +1.8 +6.7 -6.2 H1 2020 Regulated Networks Gas Trading Metering Corporate and Other* H1 2021
Slide 7: Movement in Net Profit After Tax ($M)
MOVEMENT IN NET PROFIT AFTER TAX ($M) +7.8 +3.8 102.1 +4.5 +6.7 -1.2 80.5 H1 2020 Earnings Capital Contributions Depreciation and Interest Other H1 2021 amortisation
Slide 8: Gross Capex by Segment
GROSS CAPEX BY SEGMENT H1 2021 $17.7m 7% $16.0m 7% Regulated Networks H1 2020 $81.8m Gas Trading 31% $65.0m 27% Metering $3.0m $156.0m $157.1m 1% 65% 60% Corporate and Other H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 $4.1m 2% Net capex Capital contributions • • •
Slide 9: Net Economic Debt & Gearing ($M)
NET ECONOMIC DEBT & GEARING ($M) 52.9% 53.4% 55.7% 52.9% 47.3% 49.6% 43.9% 2,682 2,741 1,968 2,253 2,449 2,704 2,974 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 Net economic debt ($m) Gearing Bank Facilities USPP Wholesa
Slide 10: New Connections
• ADJUSTED EBITDA MOVEMENT ($M) 2.9 195.9 • 15.5 189.2 • 7.1 • -18.8 • H1 2020 Impact of Other electricity Price increase Other H1 2021 • electricity reset revenue impacts offset (net of passthrough) • NEW CONNECTIONS 2,027 • 1,863 1,656 1,669 1,907 1,550 1,538 1,499 7,777 6,090 6,625 • 3,780 3,916
Slide 11: Bottle Swap Volumes ('000 cylinders)
• ADJUSTED EBITDA MOVEMENT ($M) 20.8 ‾ • 1.0 14.6 -6.0 -0.8 -0.4 • H1 2020 Sale of KGTP Natural gas LPG Other H1 2021 volumes/margins − − BOTTLE SWAP VOLUMES (‘000 cylinders) • H1 H2 338 301 300 284 248 240 200 185 155 352 358 364 375 302 320 • 158 203 229 266 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Slide 12: Metering Adjusted EBITDA Movement ($M)
ADJUSTED EBITDA MOVEMENT ($M) 1.5 83.1 5.9 • -0.4 76.1 • − H1 2020 Advanced Meters in Advanced Meters in Other H1 2021 − Australia NZ − 14,000 − 12,000 10,000 • 8,000 6,000 ‾ 4,000 2,000 ‾ - May-18 May-17 Jul-17 May-19 Jul-16 Jul-18 Jul-19 Mar-20 Nov-20 Mar-17 Nov-17 Nov-16 Mar-18 Sep-16 Jan-19 Mar-
Slide 13: Outlook
Outlook Auckland growth continues - Targeting cl5,000 new electricity connections in FY21 - Connections & infrastructure activity remain elevated, necessitating significant capital expenditure Advanced meter deployment on track - Targeting 30-40k advanced meters in NZ and 120-130k advanced meters in
Slide 14: Any Questions?
Q&A ANY QUESTIONS?
Slide 15: Appendices
Slide 16: Adjusted EBITDA by Segment
H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 Regulated Networks 196.4 195.7 192.7 198.7 189.2 195.9 Gas Trading 25.2 23.7 18.4 20.7 20.8 14.6 Metering 50.8 55.7 60.1 68.1 76.1 83.1 Corporate and Other* -18.9 -18.1 -21.2 -22.8 -21.6 -19.8 Total Group 253.5 257.0 250.0 264.7 264.5 273.8
Slide 17: Regulated Networks, Metering, Gas Trading
REGULATED NETWORKS METERING GAS TRADING CORPORATE AND OTHER1
Slide 18: Group Profit Statement
Group Profit Statement Half Year ended 31 December ($m) INCOME STATEMENT Hl “en Hl on Change Revenue (excluding capital contributions) 596.3 654.5 89 Operating expenditure (322.5) (390.0) 4173 Adjusted EBITDA 273.8 264.5 +35 Capital Contributions S14 451 +14.0 Depreciation and amortisation (133.1) (
Slide 19: Group Cash Flow
Group Cash Flow Half Year ended 31 December ($m) CASH FLOW ea meee Operating cash flow 2713 254.0 Replacement capex (13) (97.2) Dividends paid (82.5) (83.3) Cash available for growth and debt repayment 775 735 Growth capex (166.6) (145.7) Other investment activities 2.6 (0.4) Pre debt financing cash
Slide 20: Segment Adjusted EBITDA
Segment Adjusted EBITDA SEGMENT ADJUSTED EBITDA ($m) ss third-party} less third-party| Reported contributions Reported contributions Half Year ended 31 December segment and other s segment and other EBITDA movements EBITDA movements Metering Gas Trading 14.6 14.6 20.8 20.8 Unregulated Segments. 97.7
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Vector's standard profit measure prepared under New Zealand 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
Slide 22: End
Slide 23: Supplementary Interim Information
Supplementary Interim Information Regulated Networks Adjusted EBITDA $m H1 FY2013 H1 FY2014 H1 FY2015 H1 FY2016 H1 FY2017 H1 FY2018 H1 FY2019 H1 FY2020 H1 FY2021 Electricity 190.8 174.5 169.9 172.6 172.2 170.1 177.9 168.3 174.9 Gas Distribution Auckland 24.5 23.1 21.4 23.8 23.5 22.6 20.8 20.9 21.0 T
Slide 24: Net New Gas ICPs
Net New ICPs # of ICPs (net) FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Q1 620 524 839 616 878 872 560 674 624 Q2 415 566 713 727 718 728 700 778 848 Q3 508 558 584 809 626 468 378 484 Q4 377 892 645 605 126 491 775 382 Total 1,920 2,540 2,781 2,757 2,348 2,559 2,413 2,318 1,472
Slide 25: Gas Distribution Lines Revenue and Adjusted EBITDA
Gas Distribution Lines Revenue $m FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 H1 28.3 27.5 26.1 28.5 28.9 27.5 25.5 25.7 25.9 H2 24.4 19.5 23.4 23.6 25.0 21.7 21.6 22.0 Lines Revenue 52.7 47.0 49.5 52.2 53.9 49.2 47.1 47.7 25.9 Gas Distribution Lines Revenue $m as at half year 28.
Slide 26: Capital Contributions and Regulated Capex
Capital Contributions $m H1 FY2013 H1 FY2014 H1 FY2015 H1 FY2016 H1 FY2017 H1 FY2018 H1 FY2019 H1 FY2020 H1 FY2021 Electricity 11.1 15.9 17.5 19.2 29.6 31.0 38.3 41.7 45.4 Gas 0.9 1.5 1.3 2.4 1.2 2.8 2.9 3.3 5.2 TOTAL 12.0 17.5 18.8 21.6 30.8 33.8 41.2 45.0 50.6 Capital Contributions $m 5.2 3.3 2.9