Vector Interim Report 2020

Vector Interim Report 2020 ― non-GAAP financial information

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 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 (www.vector.co.nz). Non-GAAP profit measures are not prepared in accordance with New Zealand International Financial 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. DEFINITIONS EBITDA: Earnings before interest, taxation, depreciation and amortisation from continuing operations. Adjusted EBITDA: EBITDA from continuing operations adjusted for fair value changes, associates, impairments, capital contributions, and significant one-off gains, losses, revenues and/or expenses.

GAAP TO NON-GAAP RECONCILIATION

31-DEC-2019 6 MONTHS $M

31-DEC-2018 6 MONTHS $M

Group EBITDA and adjusted EBITDA

Reported net profit for the period (GAAP) 1

80.5 64.0 33.3

83.3 71.7 31.3

Add back: net interest costs 1 Add back: tax (benefit)/expense 1

131.4 309.2

Add back: depreciation and amortisation 1

119.9 306.2

EBITDA

Adjusted for: Associates (share of net (profit)/loss) 1 Fair value change on financial instruments 1

(0.1)

(0.5)

0.5

0.2

(45.1)

Capital contributions 1

(41.2)

Impairment 1

Adjusted EBITDA

264.5

264.7

1. Extracted from audited financial statements

Segment adjusted EBITDA

2019

2018

REPORTED SEGMENT EBITDA

SEGMENT ADJUSTED EBITDA

REPORTED SEGMENT EBITDA

SEGMENT ADJUSTED EBITDA

SIX MONTHS ENDED 31 DECEMBER

LESS CAPITAL CONTRIBUTIONS

LESS CAPITAL CONTRIBUTIONS

76.1 20.8 96.9

– – –

76.1 20.8 96.9

Metering

68.1 20.7 88.8

– – –

68.1 20.7 88.8

Gas Trading

Unregulated segments Regulated segment Corporate and other

234.2

(45.0)

189.2

239.9

(41.2)

198.7

(21.5)

(0.1)

(21.6)

(22.8)

(22.8)

TOTAL

309.6

(45.1)

264.5

305.9

(41.2)

264.7

― 12

Made with FlippingBook Publishing Software