Vector : Investor Presentation

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-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.

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Dividend

• Interim dividend of 8.25 cents per share
• • Flat on prior year
  • Imputation at rate of 10.5%
• Dividend record date of 28 March 2023 and payment date of 6 April 2023
• Dividend policy to be reviewed following completion of Metering transaction

Dividend (cents per share)

									8.00	8.00	8.00	8.25	8.25	8.50	8.50
								8.00
							7.75
						7.75
					7.50
			7.50	7.50
		7.25
6.50	6.75

6.00

						7.00	7.25	7.50	7.50	7.75	8.00	8.25	8.25	8.25	8.25	8.25	8.25
	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 FY21 FY22 FY23

Interim		Final

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H1 2023 Business Overview

Electricity and Gas Distribution

Gas Trading

Metering

Review of Metering Business

• 9,203 new electricity and gas connections added, up 10.4% on prior six month comparative period
• Level of investment continues to be at historically higher levels with gross capital expenditure for H1 at $197.4m
• Electricity volumes overall up 1.4% at 4,374 GWh with higher business volume offset by lower residential volume
• IM review underway with final decision expected December 2023
• DPP3 reset for gas impacted prices from 1 October 2022

• LPG continues to be affected by	• In H1, deployed 38k advanced
higher input costs for LPG	meters in Australia and 12k in NZ
impacting margins	• Advanced meter fleet totals 2.03
• 13.0% decrease in 9kg LPG bottle	million across NZ and Australia
swaps to 309,855 due to loss of	• More than 528k meters now
large customer
• LPG volumes down 10.7% to 22,535	installed in Australia
• Invested capex of $91.7m or 13.3%
tonnes
	more than equivalent prior
• 4.4% increase in Liquigas tolling to	period
56,908 tonnes	• Rollout of 4G modem
• Natural gas sales down 3.4% to 2.8	replacement in New Zealand
PJ	progressing well with c390k
	completed to date
	• AEMC's draft report announced
	accelerated uptake of advanced
	meters in Australia to 2030

• Completed strategic review of metering business
• Partnership announced with QIC
• Deal is expected to conclude by Q2 2023
• Deal is still conditional

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Metering Strategic Review - update

• QIC selected as the preferred partner for sale of	• Proceeds will be used to reduce debt
50% of metering business	• As part of the interim results, the Metering
• Sale is conditional on regulatory approvals and	segment is now classified as held for sale and is
finalisation of funding	reported as discontinued operations
• Transaction is expected to be finalised before 30	• Post completion of the deal, the Metering result
June 2023	will be reported as an Associate
• Terms imply an enterprise value of $2.51b1 against	• Metering will operate as a standalone business.
a book value of $0.85b2	Work on separation has commenced

• Conclusion of the deal is expected to realise gross transaction proceeds of $1.74b to Vector

Disclosure	Associate
Balance Sheet and P&L	Equity accounted
Revenue/Costs	Below EBITDA
Dividends received	Included in operating cashflows

1 Subject to customary completion adjustments

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2 Updated to reflect corrected book value as at 31 December 2022