Vector Limited · NZX:VCT

Vector — H1 FY2007 Earnings Presentation

20 slides from Vector's earnings presentation, Feb 9, 2007

  1. Slide 1: Half year financial result

    Half year financial result Michael Stiassny, Chairman Mark Franklin, Chief Executive Officer Peter Fredricson, Chief Financial Officer 9 February 2007

  2. Slide 2: Agenda

    Agenda ƒ Health chart ƒ Regulatory update and current issues ƒ Financial results ƒ Questions

  3. Slide 3: Health chart

    Health chart Six months ended 31 December Earnings ($m) SAIDI Regulatory Year - 9 months to 31 December 800 723.0 Normal Extreme 700 2005 100 *85.5 568.7 SAIDI Minutes 600 2006 80 23.3 500 21.5 400 332.2 60 303.1 300 40 57.9 68.4 200 45.7 20 100 38.4 0 0 Revenue EBITDA NPAT 2005 2006 * Full regulato

  4. Slide 4: Regulatory update

    Regulatory update ƒ Waiting final resolution with Commerce Commission on Administrative Settlement ƒ Commerce Act review discussion paper imminent ƒ Commerce Commission process on final authorisation for Auckland gas networks continues ƒ Engaging with Electricity Commission on a range of issues

  5. Slide 5: Current issues

    Current issues ƒ Working up Vector response to National Energy Strategy ƒ Working group set up to develop environmental policies and action plan ƒ Security of Supply – discussions with Transpower on Auckland electricity supply ƒ Gas transmission open access systems commissioned

  6. Slide 6: Financial Results

    Financial Results Peter Fredricson Chief Financial Officer

  7. Slide 7: Results summary

    Results summary Six months ended 31 December $m 2006 2005 % 2005/06 Change Full Year EBITDA 332.2 303.1 +9.6 578.6 EBIT 216.5 197.1 +9.8 362.7 NPATA 96.7 86.0 +12.5 143.7 NPAT 45.7 38.4 +18.9 45.1

  8. Slide 8: Financial results

    Financial results Six months ended 31 December 2005 2006 $ millions 800 723.0 700 600 568.7 500 390.8 400 332.2 303.1 300 265.6 216.5 197.1 200 96.7 100 45.7 86.0 38.4 0 Revenue Operating EBITDA EBIT NPAT NPATA Expenditure

  9. Slide 9: Financial highlights

    Financial highlights Six months ended 31 December 2005 2006 % 60 53.3 50 46.0 40 34.7 29.9 30 20 15.1 13.4 10 6.7 6.3 0 EBITDA/Operating EBIT/Operating NPATA/Operating NPAT/Operating Revenue Revenue Revenue Revenue

  10. Slide 10: Operating cash flow

    Operating cash flow Six months ended 31 December $ Millions 2006 2005 2005/06 Full year EBITDA 332.2 303.1 578.6 Net interest paid (106.8) (101.0) (215.5) Tax paid (10.9) 1.0 (19.4) Non cash items 5.9 6.1 13.5 Change in operating working 10.0 13.8 (4.1) capital Operating cash flow 230.4 223.0 353.1

  11. Slide 11: Dividend

    Dividend 14 12 10 CPS 8 (net) +8.3% 6 12.0 6.0 6.5 4 2 0 2005/06 Interim Interim Full year 2006/07 2005/06 ƒ All dividends fully imputed

  12. Slide 12: Divisional results

    Divisional results Six months ended 31 December 2006 Electricity Gas Technology Corporate Total /Other Operating Revenue 324.0 363.4 31.4 4.2 723.0 Operating Expenditure (122.2) (226.0) (8.9) (33.7) (390.8) EBITDA 201.8 137.4 22.5 (29.5) 332.2 % Revenue 62.3% 37.8% 71.6% N/A 46.0% EBIT 147.8 91.7 10

  13. Slide 13: Capital expenditure ($112.3 million)

    Capital expenditure ($112.3 million) Six months ended 31 December 2006 ƒ Electricity - $72.2 million, comprising $m Growth Maintenance/ Total Improvement Auckland 14.2 18.8 33.0 Northern 13.2 11.3 24.5 Wellington 4.5 10.2 14.7 Total 31.9 40.3 72.2 ƒ Gas – $15.9 million ƒ ($10.2m growth; $5.7m mainte

  14. Slide 14: Capital expenditure ($112.3 million)

    Capital expenditure ($112.3 million) Six months ended 31 December 2006 Capital expenditure – by business Other Technology 9% 12% Electricity 65% Gas 14% Capital expenditure – by type Technology 12% Maintenance & Other Improvement 9% 41% Growth 38%

  15. Slide 15: Assets employed - by business unit

    Assets employed- by business unit as at 31 December 2006 Technology Other 8% 2% Electricity 56% Gas as at 31 December 2005 34% Other Technology 2% 10% Electricity 52% Gas 36%

  16. Slide 16: Capital structure

    Capital structure as 31 December Asset Backing and Capital Structure 2006 2005 2005/06 Full Year Net Debt $m 3,042.3 3,036.5 3,081.1 Equity/Total assets % 33.7 29.1 33.7 Debt (1)/Debt (1)+Equity % 61.4 66.8 61.5 Interest (net) cover X times 1.9 1.7 1.6 (1) Net debt

  17. Slide 17: Looking ahead

    Looking ahead ƒ Good access to debt markets ƒ Successfully rolled over the Capital Bonds to 15 June 2012 at 8% ƒ $200 million MTNs due for repayment 4 April 2007 ƒ Vector to adopt New Zealand International Financial Reporting Standards (NZ IFRS) from 1 July 2007

  18. Slide 18: Debt Facilities Profile

    Debt Facilities Profile Consolidated Group Debt Maturity Profile 1,400.0 1,300.0 Credit Wrapped Floating Rate Notes 1,200.0 USPP 1,100.0 1,000.0 6.81% Fixed Rate 900.0 Notes Credit Wrapped AUD Debt ($m ) 800.0 Medium Term Notes 700.0 Consolidated Group Debt Maturity Profile Credit Wrapped NZD 600.0

  19. Slide 19: Outlook

    Outlook ƒ Vector set to meet full year expectations (as below) ƒ Analyst expectations to 30 June 2007 ƒ Revenue: $1.19b to $1.3b ƒ EBITDA: $568m to $606m ƒ NPAT: $42m to $65m ƒ NPATA: $142m to $159m

  20. Slide 20: Questions?

    Questions?

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