Vector Annual Report 2019

Vector AR’19 ― Non-GAAP financial information

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 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.

DEFINITIONS EBITDA:

Earnings before interest, taxation, depreciation and amortisation from continuing operations EBITDA from continuing operations adjusted for fair value changes, associates, impairments, capital contributions, and significant one-off gains, losses, revenues and/or expenses.

Adjusted EBITDA:

GAAP TO NON-GAAP RECONCILIATION

YEAR ENDED 30 JUNE ($ MILLION) Group EBITDA and adjusted EBITDA from continuing operations

2019

2018

Reported net profit for the period (GAAP)

84.0

149.8 130.7

133.3

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

52.5

36.8

246.8 516.6

Add back: depreciation and amortisation

225.9 543.2

EBITDA

Adjusted for: Associates (share of net (profit)/loss)

(0.6)

1.5

(79.3)

Capital contributions

(71.5)

2.5

Fair value change on financial instruments

(3.1)

46.6

Impairment

Adjusted EBITDA

485.8

470.1

2019

2018

YEAR ENDED 30 JUNE ($ MILLION)

REPORTED SEGMENT EBITDA

LESS CAPITAL CONTRIBUTIONS

SEGMENT ADJUSTED EBITDA

REPORTED SEGMENT EBITDA

LESS CAPITAL CONTRIBUTIONS

SEGMENT ADJUSTED EBITDA

Segment adjusted EBITDA

Technology Gas Trading

142.3

(0.3)

142.0

131.8

(1.3)

130.5

31.3

31.3

34.4

34.4

Unregulated segments

173.6

(0.3)

173.3

166.2

(1.3)

164.9

Regulated segment

446.0

(79.0)

367.0

428.8

(70.2)

358.6

Corporate

(54.5)

(54.5)

(53.4)

(53.4)

TOTAL

565.1

(79.3)

485.8

541.6

(71.5)

470.1

― 48

Made with FlippingBook HTML5