Slide 1: Financial and Operational Results, Full Year Ended 30 June 2020
Vi) vector FULL YEAR ENDED 30 JUNE 2020 Financial and Operational Results 2/7 August 2020
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 « Dividend « FY2020 Business Insights and Highlights ¢ Financial Performance °« Segment Performance * Outlook * Q&A
Slide 4: Dividend
Slide 5: Dividend (cents per share)
• Dividend (cents per share) • 8.00 8.25 8.25 − 7.75 8.00 8.00 8.00 7.75 7.50 7.50 7.25 7.50 − 6.50 6.75 6.00 • 7.75 8.00 8.25 8.25 8.25 7.00 7.25 7.50 7.50 6.50 6.50 6.50 6.50 6.75 6.00 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Interim Final
Slide 6: FY2020 Business Insights and Highlights
FY2020 BUSINESS INSIGHTS AND HIGHLIGHTS
Slide 7: FY20 Business Insights
FY20 Business Insights Regulatory DPP3 reset from 1 April 2020 15,432 new electricity and gas connections added in FY20 compared with 14,322 in the prior period Level of investment at all time high of $317mM, 21.5% higher than prior year Volumes overall 1.1% lower at 8,315 GWh with lower business vo
Slide 8: Strategic alliance, Powersmart sale and awards
VECTOR STRATEGIC 17% POWERSMART ALLIANCE 110,000 SALE ESSENTIAL SERVICE WAIHEKE ISLAND MORE THAN $1B 12.6% BATTERY INDUSTRY SUPREME GENDER DIVERSITY GROUP (B.I.G.) AWARD 35%
Slide 9: Financial Performance
FINANCIAL PERFORMANCE
Slide 10: FY20 Financial Performance ($M)
FY20 FINANCIAL PERFORMANCE ($M) 1318.6 1294.0 FY19 FY20 485.8 490.0 488.7 425.1 397.3 348.1 165.0 165.0 84.0 97.3 Revenue Adjusted EBITDA Capital Expenditure Net Profit Operating Cash Flow Full Year Dividend
Slide 11: FY20 Adjusted EBITDA Movement ($M)
FY20 ADJUSTED EBITDA MOVEMENT ($M) +14.9 +16.1 +2.6 485.8 490.0 -29.4 FY2019 Regulated Networks Gas Trading Metering Corporate and Other* FY2020
Slide 12: Movement in Net Profit After Tax ($M)
MOVEMENT IN NET PROFIT AFTER TAX ($M) +5.1 +3.0 +4.9 +14.6 -11.5 -2.8 97.3 84.0 FY2019 Impairment Earnings Capital Depreciation and Interest Other FY2020 Contributions amortisation
Slide 13: Gross Capex by Segment
GROSS CAPEX BY SEGMENT FY20 $30.1m 6% $31.2m 86.4 7% 79.3 Regulated Networks $133.3m FY19 62.3 71.5 27% 49.8 Gas Trading $121.2m 29% 402.3 Metering 345.8 $260.9m 305.1 309.7 61% 272.8 $317.1m Corporate and Other $11.8m 3% 65% $8.2m 2% FY16 FY17 FY18 FY19 FY20 Net capex Capital contributions • • •
Slide 14: Net Economic Debt & Gearing, Debt Maturity Profile
NET ECONOMIC DEBT & GEARING ($M) Debt Maturity Profile $m 52.5% 53.6% 55.2% 52.2% 47.1% 48.8% 43.7% 2,625 2,745 1,933 2,220 2,378 2,628 2,882 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 Bank Facilities USPP Net economic
Slide 15: Segment Performance
SEGMENT PERFORMANCE
Slide 16: Regulated Networks: Adjusted EBITDA Movement and New Connections
• ADJUSTED EBITDA MOVEMENT ($M) − 367.0 -12.3 337.6 − -7.8 -2.6 -6.7 − • FY2019 Electricity Revenue Higher Higher Personnel Other FY2020 (net of pass- Maintenance Costs through) • NEW CONNECTIONS 3,201 3,165 3,322 • 3,515 3,323 2,821 3,107 11,135 12,231 11,000 8,526 9,138 7,813 • 6,202 FY14 FY15 FY1
Slide 17: Regulated Networks Capex: Replacement and Growth
• • 317.1 • 245.8 260.9 201.0 210.6 183.7 • 164.4 170.4 • FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Replacement Growth •
Slide 18: Gas Trading: Adjusted EBITDA and Bottle Swap Volumes
• ADJUSTED EBITDA MOVEMENT ($M) 2.2 2.4 33.9 31.3 -0.2 ‾ -1.8 ‾ ‾ • FY2019 Improved Natural Sale of Kapuni and Higher Liquigas Other FY2020 Gas Margins Co-gen Plants throughput − − BOTTLE SWAP VOLUMES (‘000 cylinders) • H1 H2 338 301 300 284 • 240 248 200 185 • 155 320 352 358 364 266 302 203 229 15
Slide 19: Metering: Adjusted EBITDA and Advanced Meter Deployment
ADJUSTED EBITDA MOVEMENT ($M) 11.2 2.3 154.8 138.7 2.6 • − − − FY2019 Additional meters in Additional meters in Cost savings FY2020 NZ Australia − MONTHLY ADVANCED METER DEPLOYMENT • 14,000 12,000 • 10,000 8,000 ‾ 6,000 ‾ 4,000 2,000 - Nov-18 Jan-20 Mar-18 Sep-16 Mar-20 May-20 Sep-18 Jan-19 Sep-19 J
Slide 20: Outlook
Slide 21: Outlook
Outlook * Adjusted EBITDA guidance of $480m to $500m ° Auckland growth expected to continue * Advanced meter deployments expected to continue at current levels - Commencement of advanced gas meter deployment - Rollout of modem replacement in NZ
Slide 22: Q&A: Any Questions?
Q&A ANY QUESTIONS?
Slide 23: Appendices
Slide 24: Adjusted EBITDA (Continuing Operations Only)
Adjusted EBITDA (Continuing Operations Only) FY2016 FY2017 FY2018 FY2019 FY2020 Regulated Networks 368.5 361.2 358.6 367.0 337.6 Gas Trading 40.6 36.9 34.4 31.3 33.9 Metering 102.8 113.3 124.7 138.7 154.8 Corporate and Other (38.9) (37.0) (47.6) (51.2) (36.3) Total Group 473.0 474.4 470.1 485.8 490.
Slide 25: Total capex
Total capex 317.1 260.9 +21.5 133.3 121.2 +10.0 8.2 11.8 -30.5 30.1 31.2 -3.5
Slide 26: Income Statement
2020 2019 Change INCOME STATEMENT $m $m % Adjusted EBITDA 490.0 485.8 +0.9 Net profit for the period 97.3 84.0 +15.8
Slide 27: Cash Flow
2020 2019 CASH FLOW $m $m Cash available for growth and debt repayment 35.8 13.9 Pre debt financing cash (outflow)/inflow (245.9) (243.4) Increase/(decrease) in cash 0.7 (0.3)
Slide 28: Segment EBITDA, year ended 30 June
less third-party less third-party Year ended 30 June contributions contributions Reported and other Segment Reported and other Segment segment EBITDA movements adjusted EBITDA segment EBITDA movements adjusted EBITDA Unregulated Segments 189.2 (0.5) 188.7 170.0 - 170.0 Regulated Networks 423.3 (85.7
Slide 29: GAAP to Non-GAAP reconciliation
GAAP to Non-GAAP reconciliation EBITDA and Adjusted EBITDA 2020 2019 EBITDA 573.8 563.2 Definitions EBITDA Adjusted EBITDA Adjusted EBITDA 490.0 485.8
Slide 30: End