Vector Annual Report 2021

Creating a new energy future – a bold vision

19. Fair values continued

Description of signif icant unobservable inputs

The table below summarises the signif icant level 3 unobservable inputs used by the group in measuring fair values and related sensitivity analyses.

SENSITIVITY OF VALUATION TO CHANGES IN INPUTS

SIGNIFICANT UNOBSERVABLE INPUTS RANGE AND ESTIMATES

VALUATION IMPACT $M

VALUATION IMPACT $M

2021

LOW

HIGH

Investment in private equity

Forecast cashflows

$-1.3 million to $11.7 million

-10.0%

-$1.1

10.0%

+$1.1

Discount rate

9.2%

-1.0% -1.0% -1.0%

+$2.2 -$1.0 +$4.6

1.0% 1.0% 1.0%

-$1.7 +$1.3 -$4.2

Terminal growth rate 1.5%

Contingent consideration

Discount rate

8.0%

Future raw gas volume 254 PJ

- 2PJ per annum

-$10.3 + 2PJ per annum - $8.6 + USD $50/ tonne - $4.0 + USD $7/ barrel

+$10.2

LPG pricing

USD $525/tonne long-term USD $70/barrel long-term

- USD $50/ tonne - USD $7/ barrel

+$8.6

Oil pricing

+$4.0

SENSITIVITY OF VALUATION TO CHANGES IN INPUTS

SIGNIFICANT UNOBSERVABLE INPUTS RANGE AND ESTIMATES

VALUATION IMPACT $M

VALUATION IMPACT $M

2020

LOW

HIGH

Investment in private equity

Forecast cashflows

$-3.6 million to $13.8 million

-10.0%

-$1.2

10.0%

+$1.2

Discount rate

9.8%

-1.0% -1.0% -1.0%

+$2.5

1.0% 1.0% 1.0%

-$1.9 +$1.4 -$4.0

Terminal growth rate 2.0%

-$1.1

Contingent consideration

Discount rate

8.0%

+$4.3

Future raw gas volume 210 PJ

- 2PJ per annum

-$10.3 + 2PJ per annum - $8.1 + USD $50/ tonne - $3.0 + USD $6/ barrel

+$10.3

LPG pricing

USD $520/tonne long-term USD $60/barrel long-term

- USD $50/ tonne - USD $6/ barrel

+$8.1

Oil pricing

+ $3.0

75

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