Vector Annual Report 2023

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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