Slide 1: Half Year Results Ended 31 December 2021
Vi] vector ear Ended 31 December 2021 25 FEBRUARY 2022
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 FY22 Interim Final
Slide 4: H1 2022 Business Overview
H] 2022 Business Overview Electricity and Gas Distribution 8,334 new electricity and gas connections added, down 15.0% on prior six month comparative period Level of investment continues to be at historically higher levels with gross capital expenditure for HI at $163.1m SAIDI, our measure of reliab
Slide 5: H1 2022 Financial Performance ($M)
H1 2022 FINANCIAL PERFORMANCE ($M) 684.6 647.7 H1 2021 H1 2022 273.8 271.3 283.6 263.6 260.7 266.4 102.1 115.5 82.5 82.5 Revenue Adjusted EBITDA Capital Expenditure Net Profit Operating Cash Flow Half Year Dividend
Slide 6: H1 2022 Adjusted EBITDA Movement ($M)
H1 2022 ADJUSTED EBITDA MOVEMENT ($M) +2.9 -10.4 -2.4 -0.3 H1 2021 Regulated Networks Gas Trading Metering Corporate and Other* H1 2022
Slide 7: Movement in Net Profit After Tax ($M)
MOVEMENT IN NET PROFIT AFTER TAX ($M) +9.4 +15.2 +3.0 115.5 -6.8 102.1 -7.4 H1 2021 Earnings Capital Contributions Depreciation and Interest Other H1 2022 amortisation
Slide 8: Gross Capex by Segment
GROSS CAPEX BY SEGMENT H1 2022 $16.0m 6% $17.7m 7% Regulated Networks H1 2021 $84.5m Gas Trading 32% $81.8m Metering 31% $157.1m 60% $163.1m Corporate and Other 61% $4.1m 2% H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 $2.8m 1% Net capex Capital contributions • • •
Slide 9: Net Economic Debt & Gearing ($M)
NET ECONOMIC DEBT & GEARING ($M) 3,500 53.4% 56.1% 56.9% 60.0% 52.9% 53.3% 3,000 50.0% 47.3% 50.0% 43.9% 2,500 40.0% 2,000 30.0% 1,500 20.0% 1,000 500 10.0% 2,682 2,741 1,968 2,253 2,490 2,743 3,013 3,163 0 0.0% Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 FY22 FY23 FY24 FY25 FY26 FY27 FY
Slide 10: Regulated Networks: Adjusted EBITDA Movement and Gross New Connections
• ADJUSTED EBITDA MOVEMENT ($M) − − 195.9 − 8.9 • -0.8 185.5 -2.3 -0.7 − -15.5 • − H1 2021 Price increase Other electricity Gas Revenue Maintenance Other H1 2022 offset (prior revenue impacts year) (net of • passthrough) GROSS NEW CONNECTIONS • 2,027 1,863 1,731 1,656 1,669 1,907 − 1,538 1,550 1,499
Slide 11: DPP1 DPP2 DPP3 Gas WACC
• • • • • − − − DPP1 DPP2 DPP3 Gas WACC − − −
Slide 12: Gas Trading: Adjusted EBITDA Movement, Bottle Swap Volumes
ADJUSTED EBITDA MOVEMENT ($M) 14.6 • 0.8 12.2 3.4 ‾ -6.6 • • H1 2021 Ongas Natural gas Other H1 2022 volumes/margins • BOTTLE SWAP VOLUMES (‘000 9kg cylinders) − H1 H2 − 338 305 301 300 − 284 248 240 200 185 155 352 358 364 375 356 302 320 229 266 158 203 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 13: Metering: Adjusted EBITDA Movement and Advanced Meters
• • • • − − − ‾ ‾ ‾ - 8,000 4,000 10,000 12,000 2,000 6,000 14,000 83.1 H1 2021 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 3.4 Sep-17 Australia Nov-17 Jan-18 Advanced Meters in Mar-18 May-18 Jul-18 Sep-18 Nov-18 NZ Australia 0.6 Jan-19 Mar-19 May-19 Advanced Meters in Jul-19 NZ Sep-19 Nov-19 A
Slide 14: Outlook
Outlook * Auckland growth expected to continue - Targeting cl3,000 new electricity connections in FY22 - Connections & infrastructure activity remain elevated, necessitating significant capital expenditure « Advanced meter deployment on track to achieve 105-115k meters in Australia and 20-30k meters
Slide 15: Any Questions?
Q&A ANY QUESTIONS?
Slide 16: Appendices
Slide 17: Adjusted EBITDA by Segment
H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 Regulated Networks 192.7 198.7 189.2 195.9 185.5 Gas Trading 18.4 20.7 20.8 14.6 12.2 Metering 60.1 68.1 76.1 83.1 86.0 Corporate and Other* -21.2 -22.8 -21.6 -19.8 -20.1 Total Group 250.0 264.7 264.5 273.8 263.6
Slide 18: Regulated Networks, Metering, Gas Trading, Corporate and Other
REGULATED NETWORKS METERING GAS TRADING CORPORATE AND OTHER1
Slide 19: Group Profit Statement
Group Profit Statement Half Year ended 31 December ($m) INCOME STATEMENT ml arian ml “on Change Revenue (excluding capital contributions) 612.2 5963 +27 Operating expenditure (348.6) (322.5) -8.] Adjusted EBITDA 263.6 273.8 -3.7 Capital Contributions 724 514 +409 Depreciation and amortisation (142.6
Slide 20: Group Cash Flow
Group Cash Flow Half Year ended 31 December ($m) CASH FLOW 262 ar oa Operating cash flow 283.6 23 Replacement capex (109.3) (m3) Dividends paid (85.7) (82.5) Cash available for growth and debt repayment 88.6 775 Growth capex (161.0) (166.6) Other investment activities 18.5 26 Pre debt financing cash
Slide 21: Segment Adjusted EBITDA
Segment Adjusted EBITDA SEGMENT ADJUSTED EBITDA ($m) Tess th Tess third-party Reported contributions Segment Reported contributions Segment Half Year ended 31 December segment and other adjusted segment and other adjusted EBITDA movements EBITDA EBITDA movements EBITDA Metering 86.0 - 86.0 83.1 - 83
Slide 22: 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 23: End
Slide 24: Supplementary Interim Information: Regulated Networks Adjusted EBITDA
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 H1 FY2022 Electricity 190.8 174.5 169.9 172.6 172.2 170.1 177.9 168.3 174.9 166.3 Gas Distribution Auckland 24.5 23.1 21.4 23.8 23.5 22.6
Slide 25: Net New Gas ICPs and Total Gas ICPs
Net New ICPs # of ICPs (net) FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Q1 620 524 839 616 878 872 560 674 624 368 Q2 415 566 713 727 718 728 700 778 848 788 Q3 508 558 584 809 626 468 378 484 582 Q4 377 892 645 605 126 491 775 382 458 Total 1,920 2,540 2,781 2,757 2,348 2
Slide 26: Gas Distribution Adjusted EBITDA, Capital Contributions, Regulated Capex
Gas Distribution Adjusted EBITDA $m FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 H1 24.5 23.1 21.4 23.8 23.5 22.6 20.8 20.9 21.0 19.2 H2 20.2 15.2 18.5 19.5 20.0 17.4 16.3 16.9 17.4 Total 44.8 38.3 39.9 43.4 43.5 40.0 37.0 37.8 38.4 19.2 Gas Distribution Adjusted EBITDA $m 2