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 ( 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 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 YEAR ENDED 30 JUNE ($ MILLION)
Group EBITDA and adjusted EBITDA from continuing operations
2018
2017
Reported net profit for the period (GAAP)
149.8 130.7
168.9 137.3
Add back: net interest costs 1 Add back: tax (benefit)/expense 1
36.8
34.1
Add back: depreciation and amortisation 1
225.9 543.2
199.6 539.9
EBITDA
Adjusted for: Associates (share of net (profit)/loss) 1
1.5
(1.6)
Capital contributions 1
(71.5)
(62.3)
Fair value change on financial instruments 1
(3.1)
(1.6)
Impairment 1
–
–
Adjusted EBITDA
470.1
474.4
1. Extracted from audited financial statements
2018
2017
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
131.8
(1.3)
130.5
123.6
(1.1)
122.5
34.4
–
34.4
36.9
–
36.9
Unregulated segments
166.2
(1.3)
164.9
160.5
(1.1)
159.4
Regulated segment
428.8
(70.2)
358.6
422.4
(61.2)
361.2
Corporate
(53.4)
–
(53.4)
(46.2)
–
(46.2)
TOTAL
541.6
(71.5)
470.1
536.7
(62.3)
474.4
59
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