annual shareholder meeting - blob-static.vector.co.nz · annual shareholder meeting 12 november2018...

ANNUAL SHAREHOLDER MEETING

12 November2018

EDEN PARK

2018

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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-looking statements are based on management's and directors’ current expectations and assumptions

regarding Vector’s businesses and performance, the economy and other future conditions, circumstances and results.

As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes

in circumstances. Vector’s actual results may vary materially from those expressed or implied in its forward-looking

statements.

DISCLAIMER

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MICHAEL STIASSNY

CHAIRMAN

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• Ordinary business• Group Chief Executive’s Address

• Resolutions and Voting

• General Business

• Meeting Close

AGENDA

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SIMON MACKENZIE

GROUP CHIEF EXECUTIVE

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CREATING A NEW ENERGY FUTURE

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8

1,226.7

474.4

367.4

168.9

335.7

159.3

1,328.4

470.1

381.2

149.8

389.9

162.1

Revenue Adjusted EBITDA Capital Expenditure Net Profit Operating Cash Flow Full Year Dividend

FY17 FY18

3, 4

OVERVIEW OF FINANCIAL PERFORMANCE

Adjusted EBITDA is not a GAAP measure of profit. For a reconciliation of adjusted EBITDA to EBITDA and net profit refer to page 33 of this presentation.

+8.3% -0.9% -11.3% +16.1%+3.8% +1.8%

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FY2018 OPERATIONAL SNAPSHOT

Vector Lights launched January 2018

Continuing to support Auckland growth• New electricity & gas connections

up 13% to 14,300

• Regulated capex up 17% to $245.8m

Metering growth continues• Deployed 85k advanced meters

in NZ to effectively complete NZ mass market deployment

• Deployed 40k meters in Australia for five leading retailers

Solid performance from Gas Trading• Volumes up across all business

lines

• New LPG bottling plant commissioned in South Auckland

Creating a new energy future• PowerSmart solar and battery

projects in South Pacific and New Zealand

• HRV launched residential solar offering

April storm saw 200 kmphwinds cut power to over 150,000 homes

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IMPACT OF APRIL 10 STORM

0

25

50

75

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125

150

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225

250

1:0

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10/04/2018 11/04/2018 12/04/2018 13/04/2018 14/04/2018 15/04/2018 16/04/2018

0

25000

50000

75000

100000

125000

150000

175000

200000

225000

250000

Num

ber of

HV

Feeders

Aff

ecte

d /

Win

d S

peed (km

/ h

r)

Num

ber of

Cust

om

ers

Im

pacte

d

HV_Customers_Affected HV_Feeders_Affected Wind Gust

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ESTIMATED COST TO UNDERGROUND THE VECTOR NETWORK

Cost for urban Auckland

$3.6Bor

Additional $870 lines charges pa (i.e. more than doubles) for the average customer

compared to 700$/year today.Assuming the regulator will allow the

expenditure.

Cost for rural Auckland

$1.9Bor

Additional $460 lines charges pa for the average customer compared to 700$/year

today.Assuming the regulator will allow the

expenditure.

+

These estimates excludes the significant additional costs other infrastructure

providers suchas Auckland Council, Auckland

Transport and Chorus will incur to relocate, reconnect and reinstatement

their services.

All costs based on figures from Vector database

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MICHAEL STIASSNYCHAIRMAN

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ORDINARY BUSINESS

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Re-election of

DAME ALISON

PATERSON

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Proxy voting Votes

For 807,288,190

Against 668,592

Discretionary 2,139,265

Abstain 62,449

Re-election of

DAME ALISON PATERSON

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Appointment and Remuneration of Auditor

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Proxy voting Votes

For 807,714,494

Against 181,753

Discretionary 2,172,781

Abstain 89,468

Appointment and Remuneration of Auditor

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RESOLUTIONS PROPOSED BY ENTRUST

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Election of

MICHAELBUCZKOWSKI

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Proxy voting Votes

For 801,242,382

Against 878,519

Discretionary 2,724,163

Abstain 5,313,432

Election of

MICHAEL BUCZKOWSKI

‹#›

VOTING

‹#›

GENERALBUSINESS

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Q&AANY QUESTIONS?

THANK YOU