Vector Limited · NZX:VCT

Vector — Shareholder Meeting (2008)

19 slides from Vector's shareholder meeting presentation, 2008

  1. Slide 1: Special meeting to vote on sale of Wellington electricity network

    Special meeting to vote on sale of ” Wellington electricity network

  2. Slide 2: Michael Stiassny, Chairman

    Michael Stiassny ~ —~ / Chairman

  3. Slide 3: Directors and officers present

    » Bob Thomson » Hugh Fletcher =» Shale Chambers =» Karen Sherry » Alison Paterson » Simon Mackenzie = Kerry Nickels Vector Independent Director Independent Director AECT Trustee AECT Trustee Independent Director Group Chief Executive Officer Company Secretary

  4. Slide 4: + *,- . / . / # "

    + *,- . / 012 3 . / 402 3 562 3 402 # "

  5. Slide 5: Simon Mackenzie, Group Chief Executive Officer

    Simon Mackenzie” Group Chief Executive Officer

  6. Slide 6: Network sale

    Vector 7 Network sale » Unsolicited approaches in August last year » Board commissioned Goldman Sachs JBWere to commence review » Options considered « Full sale » Management contract « Partial sale » Retain asset

  7. Slide 7: Network sale criteria

    Vector 7 Network sale criteria Value drivers «» Network Age «» Maintenance and capital expenditure » Potential for growth » Regulation » Overlap with other assets

  8. Slide 8: Network comparison: average asset age and demand growth

    « Average asset age 32 years s 1.2% increase in demand over last five years « Mainly new commercial buildings » Regulated asset «» No overlap with other distribution networks « Fibre-optic network and options retained Vector ( » Average asset age 24 years » 4.1% increase in demand over last five yea

  9. Slide 9: Conclusion: asset sale is best outcome for shareholders

    Vector » Network age » Potential for growth » Regulation =» Lack of overlap Conclusion —- asset sale is best outcome for shareholders

  10. Slide 10: Network sale - summary

    Vector 7 Network sale - summary $785m valuation represents » Normalised EBITDA* multiple of 9.8 times » Approximately $195m profit on sale** *based on FY09 EBITDA projections **Post Wellington rebalancing

  11. Slide 11: Vector strategy

    Vector 7 Vector strategy » Not just an electricity lines company Electricity distribution Gas processing Transmission LPG Gas distribution Gas sales Fibre-optic communications Smart metering and renewables

  12. Slide 12: Vector key areas of focus

    Vector 7 Vector key areas of focus » Operational excellence » Regulatory and customer outcomes = Cost efficiency = Disciplined Growth

  13. Slide 13: Sale conditions and approvals

    Vector Conditional on CKI approval Conditional on Vector shareholder approval Conditional on Overseas investment office approval » Board advised that network is not a Strategic Asset « Not sited on sensitive land or subject to unusual claims Hutchison Infrastructure Holdings Ltd approval Deadline 1

  14. Slide 14: ?D11 < ?611 BD( "A

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  15. Slide 15: D:; GH E

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  16. Slide 16: Michael Stiassny, Chairman

    Michael Stiassny _ / Chairman

  17. Slide 17: !" # $ %& ' " ! %& ! ( %& ( ( &

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  19. Slide 19: Special meeting to vote on sale of Wellington electricity network

    Special meeting to vote on sale of ” Wellington electricity network

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