Non-GAAP financial information
Non-GAAP financial information
Definitions: EBITDA
Vector’s standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (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 are used internally to evaluate the performance of business units, to establish operational goals and to allocate resources. For a more comprehensive discussion on the use of non-GAAP profit measures, please
refer to the policy ‘Reporting non- GAAP profit measures’ available on our website (vector.co.nz). Non-GAAP profit measures are not prepared in accordance with New Zealand International Reporting Standards (NZ IFRS) and are not uniformly defined; therefore, the non-GAAP profit measures reported in this document may not be comparable with those that other companies report and should not be viewed in isolation from or considered as a substitute for measures reported by Vector in accordance with NZ IFRS.
Earnings before interest, taxation, depreciation, amortisation and impairments from continuing operations Adjusted EBITDA EBITDA adjusted for fair value changes, associates, third-party contributions, and significant one-off gains, losses, revenues and/or expenses.
GAAP to Non-GAAP Reconciliation
YEAR ENDED 30 JUNE ($ MILLION) Group EBITDA and adjusted EBITDA
2023
2022
Reported net profit for the period (GAAP) – continuing operations
112.6 145.7
102.5 104.7
Add back: net interest costs Add back: tax (benefit)/expense
47.1
57.2
204.8
Add back: depreciation and amortisation
194.2
–
Add back: impairment
40.2
EBITDA – continuing operations
510.2
498.8
Adjusted for: Capital contributions
(188.3)
(151.8)
13.2
Fair value change on financial instruments Gain on sale of investment in associate Adjusted EBITDA – continuing operations Adjusted EBITDA – discontinued operations
(3.6) (7.1)
–
335.1 188.2 523.3
336.3 173.7 510.0
Total group adjusted EBITDA
2023
2022
YEAR ENDED 30 JUNE ($ MILLION)
LESS CAPITAL CONTRIBUTIONS
LESS CAPITAL CONTRIBUTIONS
SEGMENT ADJUSTED EBITDA
SEGMENT ADJUSTED EBITDA
SEGMENT EBITDA
AND OTHER MOVEMENTS
SEGMENT EBITDA
AND OTHER MOVEMENTS
Segment adjusted EBITDA
Regulated segment
558.9
(187.3)
371.6
506.1
(150.3)
355.8
Gas trading
26.9
–
26.9
21.9
–
21.9
Total reported segments
585.8
(187.3)
398.5
528.0
(150.3)
377.7
Corporate and other
(75.6)
12.2
(63.4)
(29.2)
(12.2)
(41.4)
Total – continuing operations
510.2
(175.1)
335.1
498.8
(162.5)
336.3
Metering – discontinued operations
188.2 698.4
–
188.2 523.3
173.7 672.5
–
173.7 510.0
Total group
(175.1)
(162.5)
54
Vector Annual Report 2023
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