Vector Annual Report 2020

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23. Equity 23.1 Share Capital Shares

The total number of authorised and issued shares is 1,000,000,000 (2019: 1,000,000,000). All ordinary issued shares are fully paid, have no par value and carry equal voting rights and equal rights to a surplus on winding up of the parent. At balance date 116,948 shares (2019: 132,035) are allocated to the employee share purchase scheme.

23.2 Capital Management Policies

Vector’s objectives in managing capital are: — To safeguard the ability of entities within the group to continue as a going concern; — To provide an adequate return to shareholders by pricing products and services commensurate with the level of risk; and — Maintain an investment grade credit rating. Vector manages and may adjust its capital structure in light of changes in economic conditions and for the risk characteristics of the underlying assets. To achieve this Vector may: — Adjust its dividend policy; — Return capital to shareholders; or — Sell assets to reduce debt.

23.3 Financial ratios

2019 $M 12 MONTHS

2020 $M 12 MONTHS

Basic and diluted earnings per share

95.4

Net prof it attributable to owners of the parent

82.9

Weighted average ordinary shares outstanding during the period (number of shares)

999,876,571

999,889,595

9.5 cents

Total earnings per share

8.3 cents

2020 $M

2019 $M

Net tangible assets per share

2,242.8 (1,285.8)

Net assets attributable to owners of the parent

2,332.4 (1,375.1)

Less total intangible assets Total net tangible assets

957.0

957.3

999,883,052

Ordinary shares outstanding (number of shares)

999,867,965

95.7 cents

95.7 cents

Economic net debt to economic net debt plus adjusted equity ratio (“gearing ratio”)

2020 $M

2019 $M

2,910.6

Face value of borrowings

2,655.1

(28.3)

Less cash and cash equivalents

(27.6)

Economic net debt

2,882.3 2,259.7

2,627.5 2,349.4

Total equity

81.7

Adjusted for hedge reserves

61.1

Adjusted equity

2,341.4 5,223.7

2,410.5 5,038.0

Economic net debt plus adjusted equity

55.2%

52.2%

Notes to the Financial Statements

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