Full Year 2026 Vector Ltd Earnings Call

August 17, 2026

Speaker #1: Good morning, everybody. Welcome to Vector Limited’s conference call and webcast to discuss the company’s financial and operational results for the full year ended 30 June 2026.

Operator: Good morning, everybody. Welcome to Vector Limited's conference call and webcast to discuss the company's financial and operational results for the full year ended 30 June 2026. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I must advise you that this conference call is being recorded today. I would now like to hand you over to Vector's Chair, Doug McKay, who will take you through the call. Please go ahead, Doug.

Operator: Good morning, everybody. Welcome to Vector Limited's Conference Call and Webcast to discuss the company's financial and operational results for the full year ended 30 June 2026. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I must advise you that this conference call is being recorded today. I would now like to hand you over to Vector's Chair, Doug McKay, who will take you through the call. Please go ahead, Doug.

Speaker #1: All participants are in listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad.

Speaker #1: I must advise you that this conference call is being recorded today. I would now like to hand you over to Vector's Chair, Doug McKay, who will take you through the call.

Speaker #1: Please go ahead, Doug.

Speaker #2: Tina Cotto, Cotto. Good morning, everyone. I'm Doug McKay, Vector's Chair. Today, we'll be going through Vector's financial and operational results for the full year ending 30 June 2026.

Doug McKay: Tēnā koutou katoa. Good morning, everyone. I'm Doug McKay, Vector's Chair. Today, we'll be going through Vector's financial and operational results for the full year ending 30 June 2026. Joining me on the call are Group Chief Executive, Chris Blenkiron, and Chief Financial Officer, Jason Hollingworth. We'll begin with an overview of the year, then cover the detailed financial and reportable segment results, our investment in Bluecurrent, the outlook for FY27, and then the final dividend. After that, we'll open up the call for questions. For now, I'll hand over to Chris to start the presentation.

Doug McKay: Tēnā koutou katoa. Good morning, everyone. I'm Doug McKay, Vector's Chair. Today, we'll be going through Vector's financial and operational results for the full year ending 30 June 2026. Joining me on the call are Group Chief Executive, Chris Blenkiron, and Chief Financial Officer, Jason Hollingworth. We'll begin with an overview of the year, then cover the detailed financial and reportable segment results, our investment in Bluecurrent, the outlook for FY2027, and then the final dividend. After that, we'll open up the call for questions. For now, I'll hand over to Chris to start the presentation.

Speaker #2: Joining me on the call are Group Chief Executive Chris Blinkiron and Chief Financial Officer Jason Hollingsworth. We'll begin with an overview of the year, then cover the detailed financial and reportable segment results, our investment in Blue Current, the outlook for fiscal '27, and then the final dividend.

Speaker #2: After that, we'll open up the call for questions. But for now, I'll hand over to Chris to start the presentation.

Speaker #3: Thank you, Doug, and good morning, everyone. FY26 has been a year of strong financial performance. We've maintained a disciplined approach to capital allocation, with a sharp focus on delivering the services and experiences our customers expect and deserve, and we're delivering for our shareholders.

Chris Blenkiron: Thank you, Doug, and good morning, everyone. FY26 has been a year of strong financial performance. We've maintained a disciplined approach to capital allocation. We're sharply focused on delivering the services and experiences our customers expect and deserve, and we're delivering for our shareholders. We've had a record year of capital investment in the electricity network. We've done this while continuing to be very deliberate about when and where we invest so that we can build a safe, reliable, and future-ready network while minimizing the cost impact to our customers. Overall, the picture ahead is that Auckland has an opportunity to power more of its economy with affordable, reliable electricity, and Vector's network is essential to making that future possible. I'll now move on to an overview of our group-level financial results for the year.

Chris Blenkiron: Thank you, Doug, and good morning, everyone. FY2026 has been a year of strong financial performance. We've maintained a disciplined approach to capital allocation. We're sharply focused on delivering the services and experiences our customers expect and deserve, and we're delivering for our shareholders. We've had a record year of capital investment in the electricity network. We've done this while continuing to be very deliberate about when and where we invest so that we can build a safe, reliable, and future-ready network while minimizing the cost impact to our customers.

Speaker #3: We've had a record year of capital investment in the electricity network. We've done this while continuing to be very deliberate about when and where we invest.

Speaker #3: So that we can build a safe, reliable, and future-ready network while minimizing the cost impact to our customers. Overall, the picture ahead is that Auckland has an opportunity to power more of its economy with affordable, reliable electricity, and Vector's network is essential to making that future possible.

Chris Blenkiron: Overall, the picture ahead is that Auckland has an opportunity to power more of its economy with affordable, reliable electricity, and Vector's network is essential to making that future possible. I'll now move on to an overview of our group-level financial results for the year. To set the scene for these results, a higher revenue allowance for electricity distribution businesses applied for the full 12 months of these results, compared with only three months in the previous financial year.

Speaker #3: I'll now move on to an overview of our group-level financial results for the year. To set the scene for these results, a higher revenue allowance for electricity distribution businesses applied for the full 12 months of these results, compared with only three months in the previous financial year.

Chris Blenkiron: To set the scene for these results, a higher revenue allowance for electricity distribution businesses applied for the full 12 months of these results, compared with only three months in the previous financial year. This higher revenue was set by the Commerce Commission from 1 April 2025 as part of the DPP4 reset. This led to revenue from continuing operations increasing by NZD 111 million or 12% to just over NZD 1 billion. The higher revenue flowed through to adjusted EBITDA of NZD 482 million, up NZD 81 million or 20%. Net profit after tax increased by NZD 86 million or 55% to NZD 240 million. During the year, our investment into Auckland's electricity network was our highest ever reported in a financial year and exceeded NZD 500 million.

Speaker #3: This higher revenue was set by the Commerce Commission from the 1st of April 2025 as part of the DPP-4 reset. This led to revenue from continuing operations increasing by $111 million, or 12%, to just over $1 billion.

Chris Blenkiron: This higher revenue was set by the Commerce Commission from 1 April 2025 as part of the DPP4 reset. This led to revenue from continuing operations increasing by NZD 111 million or 12% to just over NZD 1 billion. The higher revenue flowed through to adjusted EBITDA of NZD 482 million, up NZD 81 million or 20%. Net profit after tax increased by NZD 86 million or 55% to NZD 240 million.

Speaker #3: The higher revenue flowed through to adjusted EBITDA of $482 million, up $81 million, or 20%. Net profit after tax increased by $86 million, or 55%, to $240 million.

Speaker #3: During the year, our investment into Auckland's electricity network was our highest ever reported in a financial year and exceeded half a billion dollars. Gross capital expenditure for the group increased by $74 million, or 16%, to $544 million.

Chris Blenkiron: During the year, our investment into Auckland's electricity network was our highest ever reported in a financial year and exceeded NZD 500 million. Gross capital expenditure for the group increased by NZD 74 million or 16% to NZD 544 million. Our operating cash flow increased by NZD 117 million or 23% to NZD 633 million, and this was driven by the higher adjusted EBITDA. I will now hand you over to Jason.

Chris Blenkiron: Gross capital expenditure for the group increased by NZD 74 million or 16% to NZD 544 million. Our operating cash flow increased by NZD 117 million or 23% to NZD 633 million, and this was driven by the higher adjusted EBITDA. I will now hand you over to Jason.

Speaker #3: And finally, our operating cash flow increased by $117 million, or 23%, to $633 million, and this was driven by the higher adjusted EBITDA. I'll now hand you over to Jason.

Speaker #4: Thanks, Chris. I'll begin with the drivers of adjusted EBITDA, net profit, capital investment, and the balance sheet. I'll then take you through the performance of our electricity and gas distribution segments, followed by our investment in Blue Current.

Jason Hollingworth: Thanks, Chris. I will begin with the drivers of adjusted EBITDA, net profit, capital investment, and the balance sheet. I will then take you through the performance of our electricity and gas distribution segments, followed by our investment in Bluecurrent. This slide shows adjusted EBITDA for continuing operations increased by NZD 81 million to NZD 482 million in FY26. The increase was driven by the electricity segment, which contributed an NZD 88 million uplift. Gas distribution was flat year on year, and the other adjusted EBITDA was NZD 8 million lower due to a NZD 9.3 million loss on the sale of HRV. The main driver of earnings growth, as Chris has said, was the higher DPP4 revenue allowance for the electricity distribution business, applying for the full period of these results. The higher allowance was in place for only a quarter in the prior year.

Speaker #4: This slide shows adjusted EBITDA for continuing operations, which increased by $81 million to $482 million in FY26. The increase was driven by the electricity segment, which contributed an $88 million uplift.

Speaker #4: Gas distribution was flat year on year, and the other adjusted EBITDA was $8 million lower, due to a $9.3 million loss on the sale of HRV.

Jason Hollingworth: Gas distribution was flat year on year, and the other adjusted EBITDA was NZD 8 million lower due to a NZD 9.3 million loss on the sale of HRV. The main driver of earnings growth, as Chris has said, was the higher DPP4 revenue allowance for the electricity distribution business, applying for the full period of these results. The higher allowance was in place for only a quarter in the prior year. Other remains a non-reportable segment and that includes VTS, HRV, Vector Fibre, Ecalise, and also some group eliminations. We will now move to net profit after tax.

Speaker #4: The main driver of earnings growth, as Chris has said, was the higher DPP-4 revenue allowance for the electricity distribution business, applying for the full period of these results.

Speaker #4: Whereas the higher allowance was in place for only a quarter in the prior year. The other remainder non-reportable segment includes VTS, HRV, Vector Fiber, Equalize, and also some group eliminations.

Jason Hollingworth: Other remains a non-reportable segment and that includes VTS, HRV, Vector Fibre, Ecalise, and also some group eliminations. We will now move to net profit after tax. NPAT from continuing operations increased to NZD 240 million, up NZD 82 million on the prior year. The largest positive driver was the increase in adjusted EBITDA, and this was partially offset by lower capital contributions and higher net interest. A key difference year on year is that FY25 included a NZD 37 million impairment of the gas distribution business, and there was no impairment in FY26. Overall, the increase in NPAT reflects the stronger earnings performance together with the absence of a gas impairment recognized in the prior year. I will now move to capital investment. Our gross capital investment increased by NZD 74 million or 16% from NZD 475 million in FY25 to NZD 544 million in FY26.

Speaker #4: I'll now move to net profit after tax. Impact from continuing operations increased to $240 million, up $82 million on the prior year. The largest positive driver was the increase in adjusted EBITDA, and this was partially offset by lower capital contributions and higher net interest.

Jason Hollingworth: NPAT from continuing operations increased to NZD 240 million, up NZD 82 million on the prior year. The largest positive driver was the increase in adjusted EBITDA, and this was partially offset by lower capital contributions and higher net interest. A key difference year on year is that FY25 included a NZD 37 million impairment of the gas distribution business, and there was no impairment in FY26. Overall, the increase in NPAT reflects the stronger earnings performance together with the absence of a gas impairment recognized in the prior year. I will now move to capital investment.

Speaker #4: A key difference year on year is that FY25 included a $37 million impairment of the gas distribution business, and there was no impairment in FY26.

Speaker #4: Overall, the increase in impact reflects the stronger earnings performance, together with the absence of the gas impairment recognized in the prior year. I'll now move to capital investment.

Speaker #4: A gross capital investment increased by 74 million or 16% to $470 million in FY from $475 million in FY25 to $544 million in FY26.

Jason Hollingworth: Our gross capital investment increased by NZD 74 million or 16% from NZD 475 million in FY25 to NZD 544 million in FY26. Electricity CapEx accounted for the majority of the movement, increasing from NZD 432 million to NZD 512 million, which is a record amount of capital invested into the electricity network in a single year. Within that, the electricity growth CapEx increased by NZD 16 million, while electricity replacement CapEx increased by NZD 62 million. Gas distribution CapEx was down NZD 5 million and other CapEx was down NZD 1 million.

Speaker #4: Electricity capex accounted for the majority of the movement, increasing from $432 million to $512 million, which is a record amount of capital invested into the electricity network in a single year.

Jason Hollingworth: Electricity CapEx accounted for the majority of the movement, increasing from NZD 432 million to NZD 512 million, which is a record amount of capital invested into the electricity network in a single year. Within that, the electricity growth CapEx increased by NZD 16 million, while electricity replacement CapEx increased by NZD 62 million. Gas distribution CapEx was down NZD 5 million and other CapEx was down NZD 1 million. Net CapEx increased from NZD 260 million in FY25 to NZD 353 million in FY26, due to the higher gross CapEx and also lower capital contributions at NZD 191 million in FY26, down from NZD 211 million in FY25. We will now move to the balance sheet. Vector continues to maintain a strong balance sheet. Our Standard & Poor's credit rating remains at triple B plus with a positive outlook. Our economic net debt at 26 June was up NZD 120 million to NZD 2.28 billion, with gearing at 39%.

Speaker #4: Within that, the electricity growth capex increased by $16 million, while electricity replacement capex increased by $62 million. Gas distribution capex was down $5 million, and other capex was down $1 million.

Speaker #4: Net capex increased from $260 million in FY25 to $353 million in FY26, due to higher gross capex and also lower capital contributions at $191 million in FY26, down from $211 million in FY25.

Jason Hollingworth: Net CapEx increased from NZD 260 million in FY25 to NZD 353 million in FY26, due to the higher gross CapEx and also lower capital contributions at NZD 191 million in FY26, down from NZD 211 million in FY25. We will now move to the balance sheet. Vector continues to maintain a strong balance sheet. Our Standard & Poor's credit rating remains at triple B plus with a positive outlook. Our economic net debt at 26 June was up NZD 120 million to NZD 2.28 billion, with gearing at 39%.

Speaker #4: I'll now move to the balance sheet. Vector continues to maintain a strong balance sheet. Our Standard & Poor’s credit rating remains at BBB+ with a positive outlook. Our economic net debt at June 26 was up $122 million to $2.28 billion, with gearing at 39%.

Speaker #4: I'll now move to the segment performance. Let me start with electricity. Electricity adjusted EBITDA increased by $88 million, or 25%, from $352 million in FY25 to $440 million in FY26.

Jason Hollingworth: I now move to the segment performance. Let me start with electricity. Electricity adjusted EBITDA increased by NZD 88 million or 25% from NZD 352 million in FY25 to NZD 440 million in FY26. Revenue increased by NZD 141 million, driven by the impact of the DPP4 reset, which included NZD 38 million from a net impact of the DPP3 inflation wash-ups and IRIS penalties. Pass-through costs increased by NZD 31 million, with the increase linked to the new reset period for Transpower. These costs are recovered through revenue. Other OpEx increased by NZD 22 million, linked to the increased maintenance activity and also higher digital costs. Total electricity connections continue to grow, increasing 1.6% to 642,134. Then to gas distribution. Gas distribution adjusted EBITDA was flat at NZD 47 million. Revenue was slightly higher, but this was partially offset by higher costs.

Speaker #4: Revenue increased by $141 million, driven by the impact of the DPP-4 reset, which included $38 million from the net impact of the DPP-3 inflation wash-ups and IRIS penalties.

Speaker #4: Pass-through costs increased by $31 million, with the increase linked to the new reset period for Transpower. These costs are recovered through revenue. Other opex increased by $22 million, linked to increased maintenance activity and also higher digital costs.

Jason Hollingworth: Other OpEx increased by NZD 22 million, linked to the increased maintenance activity and also higher digital costs. Total electricity connections continue to grow, increasing 1.6% to 642,134. Then to gas distribution. Gas distribution adjusted EBITDA was flat at NZD 47 million. Revenue was slightly higher, but this was partially offset by higher costs. Gas volumes were down 1.7% on the prior year, with lower demand across all sectors.

Speaker #4: Total electricity connections continued to grow, increasing 1.6% to 642,134. And into gas distribution, gas distribution adjusted EBITDA was flat at $47 million; revenue was slightly higher, but this was partially offset by higher costs.

Speaker #4: Gas volumes were down 1.7% on the prior year, with lower demand across all sectors. Total gas connections decreased by half a percent on the prior year to 119,991.

Jason Hollingworth: Gas volumes were down 1.7% on the prior year, with lower demand across all sectors. Total gas connections decreased by half a percent on the prior year to 119,991. The gas market remains an area of ongoing uncertainty, and we continue to manage the business prudently, having moved from investing CapEx to spending more on maintenance where we can to maintain safety, reliability, and long-term customer outcomes. I will now move to Bluecurrent. Our investment in Bluecurrent continues to perform well. Our revenue, EBITDA, and cash available for distribution were all up on FY25. Vector Equity Accounts is 50% investment in Bluecurrent. So while Bluecurrent earned NZD 222 million of EBITDA in FY26, the company reported an accounting loss of NZD 43 million due to depreciation costs, interest costs, and also the amortization of intangible assets.

Jason Hollingworth: Total gas connections decreased by half a percent on the prior year to 119,991. The gas market remains an area of ongoing uncertainty, and we continue to manage the business prudently, having moved from investing CapEx to spending more on maintenance where we can to maintain safety, reliability, and long-term customer outcomes. I will now move to Bluecurrent. Our investment in Bluecurrent continues to perform well. Our revenue, EBITDA, and cash available for distribution were all up on FY25.

Speaker #4: The gas market remains an area of ongoing uncertainty, and we continue to manage the business prudently, having moved from investing capex to spending more on maintenance where we can to maintain safety, reliability, and long-term customer outcomes.

Speaker #4: I'll now move to Blue Current. Our investment in Blue Current continues to perform well. Our revenue, EBITDA, and cash available for distribution were all up on FY25.

Speaker #4: Vector equity accounts its 50% investment in Blue Current. So, while Blue Current earned $222 million of EBITDA in FY26, the company reported an accounting loss of $43 million due to depreciation costs, interest costs, and also the amortization of intangible assets.

Jason Hollingworth: Vector Equity Accounts is 50% investment in Bluecurrent. So while Bluecurrent earned NZD 222 million of EBITDA in FY26, the company reported an accounting loss of NZD 43 million due to depreciation costs, interest costs, and also the amortization of intangible assets. Vector recognizes 50% of this loss in its P&L. Bluecurrent is currently debt funding the rollout of its new meters, which means surplus operating cash flow is available to be distributed to shareholders each year.

Speaker #4: Vector recognizes 50% of this loss in its P&L. Blue Current is currently debt-funding the rollout of its new meters, which means surplus operating cash flow is available to be distributed to shareholders each year.

Jason Hollingworth: Vector recognizes 50% of this loss in its P&L. Bluecurrent is currently debt funding the rollout of its new meters, which means surplus operating cash flow is available to be distributed to shareholders each year. Bluecurrent's net debt increased from NZD 1.391 billion to NZD 1.59 billion over the year, and that was due to the rollout of new meters, mainly in Australia. In FY26, Vector received NZD 55 million in distributions from Bluecurrent, and that was up by NZD 3 million on FY25. These distributions comprise NZD 10.2 million on interest on a shareholder loan provided to Bluecurrent Australia, NZD 12.1 million of principal that was repaid on this loan, and we received NZD 32.6 million of dividends. The net book value of our Bluecurrent investment was NZD 580 million at year-end.

Speaker #4: Blue Current's net debt increased from $1.391 billion to $1.59 billion over the year, and that was due to the rollout of new meters, mainly in Australia.

Jason Hollingworth: Bluecurrent's net debt increased from NZD 1.391 billion to NZD 1.59 billion over the year, and that was due to the rollout of new meters, mainly in Australia. In FY26, Vector received NZD 55 million in distributions from Bluecurrent, and that was up by NZD 3 million on FY25. These distributions comprise NZD 10.2 million on interest on a shareholder loan provided to Bluecurrent Australia, NZD 12.1 million of principal that was repaid on this loan, and we received NZD 32.6 million of dividends.

Speaker #4: In FY26, Vector received $55 million in distributions from Blue Current, which was up by $3 million on FY25. These distributions comprise $10.2 million of interest on a shareholder loan provided to Blue Current Australia, $12.1 million of principal that was repaid on this loan, and we received $32.6 million of dividends.

Speaker #4: The net book value of our Blue Current investment was $580 million at year-end. This net book value was reduced over the year due to the recognition of our share of the joint venture's loss, the dividends we received, and an increase from the net movement in the shareholder loan balance due to an FX gain.

Jason Hollingworth: The net book value of our Bluecurrent investment was NZD 580 million at year-end. This net book value was reduced over the year due to the recognition of our share of the joint venture's loss, the dividends we received, and an increase from the net movement in the shareholder loan balance due to an FX gain. I am going to hand back to Chris to cover the outlook.

Jason Hollingworth: This net book value was reduced over the year due to the recognition of our share of the joint venture's loss, the dividends we received, and an increase from the net movement in the shareholder loan balance due to an FX gain. I am going to hand back to Chris to cover the outlook.

Speaker #4: I'll now hand back to Chris to cover the outlook.

Speaker #5: Thank you, Jason. As with FY26, we are providing guidance on adjusted EBITDA, gross capex, and capital contributions for FY27. Adjusted EBITDA is forecast to increase on FY26.

Chris Blenkiron: Thank you, Jason. As with FY26, we are providing guidance on adjusted EBITDA, gross CapEx, and capital contributions for FY27. Adjusted EBITDA is forecast to increase on FY26. The DPP4 decision set out a path of increasing revenue in each year of the five-year period. Our forecast for FY27 is consistent with this and includes recovery of an additional net NZD 54 million of revenue wash-up and IRIS adjustments. We are also forecasting an increase in gross capital expenditure, and we will likely see another record year of investment into the electricity network. The primary driver of the increase is higher levels of replacement CapEx. This is important because it reflects how we are investing more to ensure the network remains reliable and resilient as Auckland continues to grow and electrify. Importantly, we are focused on balancing these investments with affordability.

Speaker #5: The DPP-4 decision set out a path of increasing revenue in each year of the five-year period. Our forecast for FY27 is consistent with this and includes recovery of an additional net $54 million of revenue wash-up and IRIS adjustments.

Speaker #5: We're also forecasting an increase in gross capital expenditure, and will likely see another record year of investment into the electricity network. The primary driver of the increase is higher levels of replacement capex. This is important because it reflects how we're investing more to ensure the network remains reliable and resilient as Auckland continues to grow and electrify.

Chris Blenkiron: We are also forecasting an increase in gross capital expenditure, and we will likely see another record year of investment into the electricity network. The primary driver of the increase is higher levels of replacement CapEx. This is important because it reflects how we are investing more to ensure the network remains reliable and resilient as Auckland continues to grow and electrify. Importantly, we are focused on balancing these investments with affordability.

Speaker #5: Importantly, we're focused on balancing these investments with affordability. We're very disciplined about when and where we invest, to deliver the network our customers need while minimizing the cost impact.

Chris Blenkiron: We are very disciplined on when and where we invest to deliver the network our customers need while minimizing the cost impact. Customer-driven activity is expected to be broadly in line with FY26. Although the guidance range for capital contributions is lower, noting contributions can vary substantially depending on the timing of major customer project connections. For FY27, the guidance range is adjusted EBITDA of NZD 540 million to NZD 560 million, gross CapEx of NZD 605 to NZD 635 million, capital contributions of NZD 160 million to NZD 190 million. Before I hand back to Doug, I would like to thank all our people, including our field service providers and call center teams, for their enormous work throughout the year. I would also like to acknowledge our customers, our partners, and stakeholders as we continue to invest in the network and support Auckland's growth and electrification. I will now hand back to Doug.

Speaker #5: Customer-driven activity is expected to be broadly in line with FY26, although the guidance range for capital contributions is lower, noting that contributions can vary substantially depending on the timing of major customer project connections.

Speaker #5: For FY27, the guidance range is adjusted EBITDA of $540 million to $560 million, gross capex of $605 million to $635 million, and capital contributions of $160 million to $190 million.

Speaker #5: Before I hand back to Doug, I'd like to thank all our people, including our field service providers and call center teams, for their enormous work throughout the year.

Chris Blenkiron: Before I hand back to Doug, I would like to thank all our people, including our field service providers and call center teams, for their enormous work throughout the year. I would also like to acknowledge our customers, our partners, and stakeholders as we continue to invest in the network and support Auckland's growth and electrification. I will now hand back to Doug.

Speaker #5: I would also like to acknowledge our customers, our partners, and stakeholders as we continue to invest in the network and support Auckland's growth and electrification.

Speaker #5: I'll now hand back to Doug.

Speaker #4: Thank you, Chris. I'll now cover the dividend. The board has determined a final dividend of 13.5 cents per share, with no imputation. This brings the full-year dividend to 26 cents per share.

Doug McKay: Thank you, Chris. I will now cover the dividend. The board has determined a final dividend of NZD 0.135 per share with no imputation. This brings the full year dividend to NZD 0.26 per share. The dividend record date is 9 September 2026, and the payment date is 21 September 2026. Chris, Jason, and I are now happy to take any of your questions.

Speaker #4: The dividend record date is 9 September 2026, and the payment date is 21 September 2026. Chris, Jason, and I are now happy to take any of your questions.

Speaker #2: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Joshua Dale and Craigs Investment Partners. Please go ahead.

Speaker #2: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Joshua Dale at Craigs Investment Partners.

Speaker #2: Please go ahead.

Speaker #6: Good morning, Doug, Chris, and Jason. Can you hear me okay?

Joshua Dale: Good morning, Doug, Chris, and Jason. Can you hear me okay?

Speaker #4: We can. Yes, thank you.

Jason Hollingworth: We can. Yes. Thank you.

Speaker #6: Brilliant. Thank you for the presentation, and well done on a solid result. I have a handful of questions. It was helpful to see this split-out of Blue Current distributions.

Joshua Dale: Brilliant. Thank you for the presentation, and well done on a solid result. I have a handful of questions. It was helpful to see the split out of Bluecurrent distributions. One thing I noticed was the weighting to dividends was quite high in FY26 and the loan repayments were much lower. Two questions on that. What does the pace of that shareholder loan pay down look like in the future? Is this now a permanent shift into dividend receipts for you from Bluecurrent?

Speaker #6: One thing I noticed was that the weighting to dividends was quite high in FY26, and loan repayments were much lower. So, two questions on that.

Speaker #6: What does the pace of that shareholder loan paydown look like in the future? And is this now a permanent shift into dividend receipts for you from Blue Current?

Speaker #6: Joshua, there were originally two loans for Blue Current—one into New Zealand and one into Australia. The New Zealand loan has been repaid, so we will now be receiving dividends out of New Zealand.

Jason Hollingworth: Joshua, there were originally two loans for Bluecurrent, one into New Zealand and one into Australia. The New Zealand loan has been repaid, so we will now be receiving dividends out of New Zealand. The loan that is in Australia is probably going to take over 5 years to repay based on current forecasts. So we will continue to receive interest in principal repayments out of the Australian business.

Speaker #6: The loan that's in Australia is probably going to take over five years to repay based on current forecasts, so we'll continue to receive interest and principal repayments out of the Australian business.

Speaker #6: Thanks, that's helpful. And distributions for Blue Current obviously increased by $3 million to $255 million for FY26. Is that about the right increase to assume into FY27?

Joshua Dale: That is helpful. Distributions from Bluecurrent obviously increased by NZD 3 million to NZD 55 million for FY26. Is that about the right increase to assume in FY27?

Speaker #6: It reflects the deployment of meters, so I think if they continue to deploy meters at the current rates, you would expect that to broadly follow that trend.

Jason Hollingworth: It reflects the deployment of meters. I think if they continue to deploy meters at the current rates, you would expect that to broadly follow that trend.

Speaker #6: Thanks. And it might be a bit of a hard question to answer, but the metering market in Australia and New Zealand is obviously somewhat finite, and there's probably an upper limit as to what Blue Current's revenue and EBITDA could be at some point in the future.

Joshua Dale: Thanks. It might be a bit of a hard question to answer, but the metering market in Australia and New Zealand is obviously somewhat finite, and there is probably an upper limit as to what Bluecurrent's revenue and EBITDA could be at some point in the future. Is there any sense as to when you might start to approach that limit of full market penetration and the timeframe over which that might play out? Appreciate your competitors are obviously in the mix as well.

Speaker #6: Is there any sense, I guess, as to when you might start to approach that limit of full market penetration? And the timeframe over which that might play out? I appreciate your competitors are obviously in the mix as well.

Speaker #6: So, the Australian market is moving to a 100% rollout of smart meters by 2030, so that's the sort of timeframe there. The New Zealand market, though, which has been highly penetrated for quite a while now, is still growing because people are still connecting to the electricity network, so there's always that underlying growth of new connections that will continue.

Jason Hollingworth: The Australian market is moving to a 100% rollout of smart meters by 2030. So that is the sort of timeframe there. The New Zealand market, though, that has been highly penetrated for quite a while now, is still growing because people are still connecting to the electricity network. So there is always that underlying growth of new connections that will continue. Not at the rate that you see when you are rolling out smart meters, but it will continue to have growth. We have also deployed smart gas meters into the New Zealand market successfully, and Bluecurrent are looking at trying to push smart gas meters into the Australian market. So there is an opportunity there. There are also opportunities in smart water metering, which is another whole segment that is available potentially to Bluecurrent.

Speaker #6: So, not at the rate that you see when you're rolling out smart meters, but it will continue to have growth. We've also deployed smart gas meters into the New Zealand market successfully, and Blue Current are looking at trying to push smart gas meters into the Australian market, so there's an opportunity there.

Jason Hollingworth: We have also deployed smart gas meters into the New Zealand market successfully, and Bluecurrent are looking at trying to push smart gas meters into the Australian market. So there is an opportunity there. There are also opportunities in smart water metering, which is another whole segment that is available potentially to Bluecurrent. So there are still growth opportunities for that business going forward outside the current sort of smart electricity metering rollout in Australia.

Speaker #6: And there's also opportunities in smart water metering, which is another whole segment that is potentially available to Blue Current. So there are still growth opportunities for that business going forward, outside the current sort of smart electricity metering rollout in Australia.

Jason Hollingworth: So there are still growth opportunities for that business going forward outside the current sort of smart electricity metering rollout in Australia.

Speaker #6: Okay, thanks. And just last two questions—hopefully easy ones. First, imputation. Obviously, there’s none at the moment. I think you signaled we might expect to see some from FY28 onward.

Joshua Dale: Okay, thanks. Just the last two questions, hopefully easy ones. First, imputation. Obviously, there is none at the moment. I think you signaled we might expect to see some from FY28 onward. Is that still the case? I guess any sense of level would be helpful and perhaps timing around when you may get to full imputation.

Speaker #6: Is that still the case? And I guess any sense of level would be helpful, and perhaps timing around when you may get to full imputation?

Speaker #6: You'll see in our balance sheet that our tax asset is now our current tax asset, so that tells you we're going to use it up in the next 12 months.

Jason Hollingworth: You will see that in our balance sheet that our tax asset is now a current tax asset. So that tells you that we are going to use it up in the next 12 months. So that will be the end of that, and then we will start paying cash tax towards the end of FY27. Not a huge amount, I do not think. So we will really be starting to become a taxpayer in FY28. Based on our forecast, we will never be fully imputing our dividends, but we will be imputing a portion of them as we pay tax. So not a lot happening this financial year, but we should expect to start seeing a level of imputation in FY28.

Speaker #6: So that'll be the end of that, and then we'll start paying cash tax towards the end of FY27—not a huge amount, I don't think.

Speaker #6: So we'll really be starting to become a taxpayer in FY28. Based on our forecast, we'll never be fully imputing our dividends, but we'll be imputing a portion of them as we pay tax.

Speaker #6: So not a lot happening this financial year, but we should expect to start seeing a level of imputation in FY28. Okay, thank you. Last one.

Joshua Dale: Okay, thank you. Last one. You have obviously tested the market with your fiber business. What happens to it now? Are you just sitting on that for now?

Speaker #6: You've obviously tested the market with your fibre business. What happens to it now? Are you just sitting on that for now?

Speaker #5: Yeah, Josh, it's Chris. Yeah, we've decided we're the best owner for the fibre business. Obviously, it's got an exciting growth curve ahead of it.

Chris Blenkiron: Yeah, Josh, it's Chris. We've decided we're the best owner for the Fibre business. It's got an exciting growth curve ahead of it, actually, if you look at data centers, if you look at 5G. We weren't short of people interested in that business, but we decided that we're the best owner. Going forward, they've got a lot of opportunity in front of them in the market, which I know the team's pretty pumped about actually, and they're getting after it.

Speaker #5: Actually, if you look at data centres, if you look at 5G, we weren't short of people interested in that business, but we decided that we're the best owner.

Speaker #5: And so now, going forward, they've got a lot of opportunity in front of them in the market, which I know the team's pretty pumped about, actually, and they're getting after it.

Speaker #6: Okay, that's very helpful. Thanks very much, Chris.

Joshua Dale: That's very helpful. Thanks very much, Chris.

Speaker #5: Thanks.

Chris Blenkiron: Thanks.

Speaker #2: Your next question comes from Andrew Harvey-Green at Forsyth Barr. Please go ahead.

Operator: Your next question comes from Andrew Harvey-Green and Forsyth Barr. Please go ahead.

Speaker #7: Hi. Morning, guys. I have a couple of questions for you. First of all, I think you've been running a bit of a strategic review over the last few months.

Andrew Harvey-Green: Morning, guys. Couple of questions from me. First of all, I think you've been running a bit of a strategic review over the last few months, Chris and Doug. Just a question, I guess, in terms of progress on that and timing and what we might expect to see from that in due course.

Speaker #7: Chris and Doug, just a question, I guess, in terms of progress on that and timing, and sort of what we might expect to see from that in due course.

Speaker #5: Yeah, Andrew, that's something we're just in the sort of final throes of working through. I think, to give a flavour, I mean, the focus is very much on the efficiency and sort of the disciplined execution.

Chris Blenkiron: Yeah, Andrew, that is something we are just in the final throes of working through. I think to give a flavor, the focus is very much on the efficiency and the disciplined execution. I guess you saw a bit of that through the capital program that we talked about through the results just now. So there is a big focus on making sure that that part is transformed and operating as well as it can be into the future. There is a large program of work ahead. We are also having a look at the energy transition, what role that we should be playing in that. Auckland needs to electrify, the country needs to electrify. So we are looking at that, but we will probably have a little bit more to say at that probably towards the shareholder meeting in September. So we are just working through the final parts of it now.

Speaker #5: And I guess you saw a bit of that through the capital program that we talked about during the results just now. So there's a big focus on making sure that part is transformed and operating as well as it can be into the future.

Speaker #5: There's a large programme of work ahead. But we're also having a look at the energy transition, what role we should be playing in that. Auckland needs to electrify; the country needs to electrify.

Chris Blenkiron: There is a large program of work ahead. We are also having a look at the energy transition, what role that we should be playing in that. Auckland needs to electrify, the country needs to electrify. So we are looking at that, but we will probably have a little bit more to say at that probably towards the shareholder meeting in September. So we are just working through the final parts of it now.

Speaker #5: So we're looking at that, but we'll probably have a little bit more to say on that, probably towards the shareholder meeting in September. So we're just working through the final parts of it now.

Speaker #7: Yeah. Okay.

Andrew Harvey-Green: Yeah.

Chris Blenkiron: Okay.

Jason Hollingworth: Doug here, Andrew. I will just add to that. We have got a lot of growth opportunity in front of us. So it is all very positive in terms of what our future strategy will be. I would also say it is going to be much closer to our core business operations than the previous step outs into other activities, which we have been cleaning up from for the last three years. So we have now bottomed the cleanup, pretty much. Made the strategic decision to keep going for growth in Fibre as part of that review. But now we are clean slate. We have got a complete strategy that we have been working our way through, testing various hypotheses, and we are almost there. We will speak more to that around the AGM. But there is no shortage of growth opportunities in our part of the sector or the industry.

Doug McKay: Doug here, Andrew. I will just add to that. We have got a lot of growth opportunity in front of us. So it is all very positive in terms of what our future strategy will be. I would also say it is going to be much closer to our core business operations than the previous step outs into other activities, which we have been cleaning up from for the last three years. So we have now bottomed the cleanup, pretty much.

Speaker #6: It's Doug here, Andrew. I'll just add to that: we've got a lot of growth opportunity in front of us, so it's all very positive in terms of what our future strategy will be.

Speaker #6: I'd also say it's going to be much closer to our core business operations than the previous step-outs into other activities, which we've been cleaning up from for the last three years.

Speaker #6: So we've now bottomed the cleanup, pretty much. Made the strategic decision to keep going for growth in fibre as part of that review. But now we're at a clean slate, where we've got a complete strategy that we've been working our way through, testing various hypotheses, and we're almost there—almost there.

Doug McKay: Made the strategic decision to keep going for growth in Fibre as part of that review. But now we are clean slate. We have got a complete strategy that we have been working our way through, testing various hypotheses, and we are almost there. We will speak more to that around the AGM. But there is no shortage of growth opportunities in our part of the sector or the industry.

Speaker #6: And we will speak more to that around the AGM. But there is no shortage of growth opportunities in our part of the sector or the industry.

Speaker #7: Yeah, mate, correct. Thanks for that colour. And the only other question I really had, I guess, is probably more for Jason, just around the S&P rating and noting you're on that positive watch.

Andrew Harvey-Green: Yeah, no, great. Thanks for that color. The only other question I really had, I guess, is probably more for Jason, just around the S&P rating and noting you are on that positive watch. Is that something that you are wanting to pursue as a credit rating upgrade, or is it more a case of if it happens, it happens?

Speaker #7: I mean, is that something that you're wanting to pursue as a credit rating upgrade, or is it more a case of, if it happens, it happens?

Speaker #6: Well, I think it would be good, Andrew, because obviously it would make our debt costs lower. We do have some refinancing to happen over the next 12 to 18 months.

Jason Hollingworth: I think it would be good, Andrew, because obviously it would make our debt cost lower. We do have some refinancing to happen over the next 12 to 18 months. So again, it is really an S&P call, I think. So we have an annual cycle with them where we are presenting them with some updated information in the next month, and really it is up to them, will they maintain that positive outlook or move on that?

Speaker #6: So again, it's really an S&P call, I think. We have an annual cycle with them, where we're presenting them with some updated information next month.

Speaker #6: And you're really just up to them when they maintain that positive outlook or move on that.

Speaker #7: Yeah, okay. That's all from me. Thank you.

Andrew Harvey-Green: Yeah. Okay. That's all for me. Thank you.

Speaker #2: Your next question comes from Phil Campbell at UBS. Please go ahead.

Operator: Your next question comes from Phil Campbell and UBS. Please go ahead.

Speaker #6: Yeah. Morning, guys. I have a couple for me as well. I suppose just the first one was, I think, recently there was a ComCom letter under Section 36 of the Commerce Act on connections.

Phil Campbell: Yeah. Morning, guys. It's a couple from me as well. The first one was, I think recently there was a ComCom letter under Section 36 of the Commerce Act on connections. Just wondering if you had any views on potential impact of that.

Speaker #6: Yeah, just wondering if you had any kind of views on the potential impact of that.

Speaker #5: You know, we're engaging with ComCom actively on many fronts. As you know, the EA is currently also speaking about connections and balance points, and the like.

Chris Blenkiron: We're engaging with ComCom actively on many fronts, as you know. The EA is currently also speaking about connections and balance points and the like. There's various angles that ComCom are looking at at the moment and the EA that we're actively engaging with, and I think it's a positive thing. One of those angles is around distributed generation. It's another thing that we're actively looking to work with our customers on and open up to. So nothing really in terms of material impact for us. We'll keep working through them, and if we need to, we can update later on.

Speaker #5: There are various angles that ComCom are looking at at the moment, and the EA that we're actively engaging with. And I think it's a positive thing.

Speaker #5: One of those angles is around distributed generation. It's another area that we're actively looking to work with our customers on, and open up to.

Speaker #5: So, nothing really in terms of material impact for us. We'll keep working through them, and if we need to, we can update later on.

Speaker #6: Awesome. The second one was just on the CAPEX guidance. Obviously, it looks as though it's a bit higher than what was in the AMP. Is that mainly due to replacement?

Phil Campbell: Awesome. Second one was just on the CapEx guidance. Obviously, it looks as though it is a bit higher than what was in the AMP. Is that mainly due to replacement? I would just be interested in kind of reconciling that guidance with the AMP.

Speaker #6: Yeah, just be interested in kind of reconciling that guidance with the AMP. Yeah, it is slightly higher than the AMP for this year, Phil. And it is a lot of replacement CAPEX, as I think we mentioned in that slide.

Jason Hollingworth: Yeah, it is slightly higher than the AMP for this year, Phil. It is a lot of replacement CapEx, as I think we mentioned in that slide. Again, there are some larger projects, some of it just the timing and things. We will try and deliver the AMP over the five-year period, but this year is slightly higher.

Speaker #6: So again, there are some larger projects—some of it is just the timing of things. So, yeah, we will try and deliver the AMP over the five-year period.

Speaker #6: But, yeah, this year is slightly higher.

Speaker #7: Right. And then I haven't had time to calculate. I just wondered what the dividend payout ratio was, under your formula, on the 26 cents?

Phil Campbell: Right. I have not had time to calculate. I just wondered what the dividend payout ratio was under your formula on the NZD 0.26.

Speaker #6: It's at the bottom of that payout range. Phil, I've got 70%, which I think we signalled at our last year.

Jason Hollingworth: It is at the bottom of that payout range, Phil, of 70%, which I think we signaled at our last year.

Speaker #7: Yeah, that's right. I suppose we'll get a bit more colour in terms of what potential kind of guidance on the payout ratio when you've done your strategic review at the AGM, or will that be included within that? Or is it just going to be more about the growth opportunities?

Phil Campbell: Yeah. That is right. I suppose it is, will we get a bit more of a color in terms of what potential kind of guidance on the payout ratio when you have done your strategic review at the AGM, or will that be included within that, or is it just going to be more about the growth opportunities?

Speaker #6: Yeah, we haven't turned our mind to the payout ratio at this stage. Phil, for next year we've been focused on what this year should be.

Doug McKay: Yeah. We have not turned our mind to the payout ratio at this stage, Phil, for next year. We have been focused on what this year should be. As you can see from the tenor of our conversation this morning and some of our written commentary, we have a lot of growth opportunities and we need a lot of CapEx. So we are being very conservative at the moment in the way we are thinking about where we fall in that range. It could well be that we continue to be very conservative. I certainly would not be encouraging anyone to push up into the upper half of that range. Nothing like that, because we need a lot of access. We need access to the capital for our growth and replacement.

Speaker #6: But as you can see from the tenor of our conversation this morning, and some of our written commentary, we have a lot of growth opportunities and we need a lot of capex.

Speaker #6: So, we're being very conservative at the moment in the way we're thinking about where we fall in that range. And it could well be that we continue to be very conservative.

Speaker #6: I certainly wouldn't be encouraging anyone to push up into the upper half of that range—nothing like that—because we need a lot of access.

Speaker #6: We need access to capital for our growth and replacement.

Speaker #7: Okay, now that's clear. Thanks for that.

Phil Campbell: Okay. No, that is clear. Thanks for that.

Speaker #2: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Stephen Hudson at Macquarie Securities.

Operator: Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. Your next question comes from Stephen Hudson and Macquarie Group. Please go ahead.

Speaker #2: Please go ahead.

Speaker #7: Oh, morning, Jason, Chris, and Doug. Just a couple from me. Firstly, on capital contributions, I just wondered if you can give us a bit of flavour for what you're seeing out there.

Stephen Hudson: Morning, Jason, Chris, and Doug. Just a couple from me. Just firstly on capital contributions, I just wondered if you can give us a bit of flavor for what you are seeing out there. You are obviously forecasting a reasonable dip this year.

Speaker #7: You're obviously forecasting a reasonable dip this year.

Speaker #5: Yeah, it's pretty steady. Obviously, we won't go into the specific projects and the commercial nature of them, but we're seeing a pretty steady flow.

Chris Blenkiron: Yeah, it is pretty steady. Obviously, we will not go into the specific projects and the commercial nature of them, but we are seeing a pretty steady flow. But as you can imagine, some of the big projects can really swing that around, as I sort of signaled in terms of the guidance. But in terms of activity, it is pretty steady.

Speaker #5: But, as you can imagine, some of the big projects can really swing that around, as I sort of signaled in terms of the guidance.

Speaker #5: But in terms of activity, it's pretty steady.

Speaker #7: Okay. And just coming back to the payout ratio, you’ve got quite a specific definition of cash flow available for distribution, and it’s different, I think, to what you used to use as a free cash flow payout definition.

Stephen Hudson: Okay. Just coming back to the payout ratio, you have sort of got quite a specific definition of cash flow available for distribution. It is different, I think, to what you used to use as a free cash flow payout definition. If we were to assume sort of the dividend climbed by NZD 0.01 to share in line with the dividend trend slide that you have got on slide 17 there, what would the traditional free cash flow payout ratio look like at the end of DPP4, Jason? So, leaving aside your company-specific definitions and just using the old traditional standard business CapEx.

Speaker #7: If we were to assume that the dividends climb by a cent per share, in line with the dividend trend slide that you've got on slide 17, what would the traditional free cash flow payout ratio look like at the end of DPT, for Jason?

Speaker #7: So, leaving aside your company-specific definitions and just using the old, traditional, standard business CAPEX.

Speaker #6: Look, I don't know off the top of my head. I don't know, Stephen, off the top of my head. I'm happy to look at it, but yeah, I can't do that sitting here.

Jason Hollingworth: I do not know off the top of my head.

Stephen Hudson: roughly what would your-

Jason Hollingworth: I do not know, Steven, off the top of my head. I am happy to look at it, but yeah, I cannot do that calc sitting here, I am afraid.

Speaker #6: I'm afraid.

Stephen Hudson: I suppose it is sort of quite an important calc because you have on the traditional definition, your free cash flow payouts. You are actually paying out more than your traditional free cash flow. It is over 100%, but we understand that you are growing into that through the DPP4 smoothing, senior smoothing. Do you think it would be under 100%, I suppose is the question?

Speaker #7: I suppose it's quite an important count, because on the traditional definition, with your free cash flow payouts, you're actually paying out more than your traditional free cash flow.

Speaker #7: It's over 100%. And so, it's—but we understand that you're growing into that through the DPP for smoothing. So, you know, with smoothing, do you think it would be under 100%?

Speaker #7: I suppose that's the question. But by the time 2030 rolls around...

Jason Hollingworth: Look, I guess-

Stephen Hudson: By the time 2030 rolls around.

Speaker #6: Yeah, look, I just don't know. But I guess we've got a policy that we've been, that we forecast against, and it takes account of the reset, and it takes account of our current balance sheet.

Jason Hollingworth: Yeah, look, I just don't know. But I guess we've got a policy that we forecast against, and it takes account of the reset and takes account of our current balance sheet. So I guess I'm used to thinking of it in that terms rather than going back to how we used to measure things. And I think our old policy was more the progressive policy, right, where the dividends went up at a certain rate each year rather than a specific payout percentage or anything. So it's quite different.

Speaker #6: So I guess I'm used to thinking of it in those terms, rather than going back to how we used to measure things.

Speaker #6: And I think our old policy was more of a progressive policy, right? Where the dividends went up at a certain rate each year, rather than a specific sort of payout percentage or anything.

Speaker #6: So it was quite different.

Speaker #7: The two components—Doug McKay here, Stephen. The two components are: a percentage of cash flow, 70% to 100% of cash flow, and 90–75% of CAPEX is debt funded.

Doug McKay: The two components, Doug McKay here, Steven. The two components of a percentage of cash flow, 70% to 100% of cash flow and 90-

Stephen Hudson: 75

Chris Blenkiron: 75

Doug McKay: 75% of CapEx is debt funded. They are the guideposts at the moment. I'm not saying they'll be the guidepost forever. In fact, there could well be a need to revise our dividend policy at some point in the next few years, particularly as we land our strategy and we start to understand the CapEx implications of that. But we'll be more transparent about that when we've finished that work by the time we get around to our AGM.

Speaker #7: Those are the guideposts at the moment. I'm not saying they'll be the guideposts forever. In fact, there could well be a need to revise our dividend policy at some point in the next few years, particularly as we land our strategy and start to understand the capital and CapEx implications of that.

Speaker #7: But we'll be more transparent about that when we've finished that work, by the time we get around to our AGM. Yep. Okay, so that's useful.

Stephen Hudson: Yep. Okay. That is useful. Thanks, Doug. Hey, just one final one. Doug, you talked about you have got a lot of prospective growth and projects in front of you. Can you give us a bit of a flavor for where and what they are?

Speaker #7: Thanks, Doug. Hey, just one final one. Doug, you talked about you've got a lot of prospective growth and projects in front of you. Can you give us a bit of a flavour for where and what they are?

Doug McKay: I can broadly do that. I will not go into too much detail because it is part of our strategy work, and we need to land it. But the whole electrification. The stats I like to use, Steven, on this one is people bandy around that we are 92% or 97% renewable on our electricity generation, whatever that number is, but you know what I am saying. But we are only 34% renewable in total energy in New Zealand. When you look at the impact of lifting, say, from 34%, which broadens the definition to vehicles and transport and a whole lot of other things. But when you lift that number from 34% to, say, 60% to 65%, the opportunities for savings for our consumers and our customers are very significant. Plus, we have got the ongoing uncertainty around gas supply in New Zealand.

Speaker #6: I can broadly do that, but I won't go into too much detail because it is part of our strategy work, and we need to land it.

Speaker #6: But the whole electrification—the quote, the stats I like to use, Stephen, on this one is people bandy around that we're 92% or 97% renewable on our electricity generation, whatever that number is.

Speaker #6: But you know what I'm saying. We're only 34% renewable in total energy in New Zealand. When you look at the impact of lifting, say, from 34%—which broadens the definition to include vehicles, transport, and a whole lot of other things—

Doug McKay: When you look at the impact of lifting, say, from 34%, which broadens the definition to vehicles and transport and a whole lot of other things. But when you lift that number from 34% to, say, 60% to 65%, the opportunities for savings for our consumers and our customers are very significant. Plus, we have got the ongoing uncertainty around gas supply in New Zealand.

Speaker #6: But when you lift that number from 34 to, say, 60, the savings for our consumers and our customers are very significant. Plus, we've got the ongoing uncertainty around gas supply in New Zealand.

Speaker #6: So there's a dramatic uptick in inbounds for us on electrification and how we can help our customers with that. Both retail and industrial customers are finding that quite a complex process to navigate.

Doug McKay: There is a dramatic uptick in inbounds for us on electrification and how can we help our customers with that. Both retail and industrial customers are finding that quite a complex process to navigate. You have got to have a lot of technical knowledge. So you think about the implications for electrification, that in itself is a major growth opportunity for a business like ours.

Speaker #6: You've got to have a lot of technical knowledge. So, yeah, you think about the implications for electrification—that, in itself, is a major growth opportunity for a business like ours.

Speaker #7: That makes sense. Thanks for the colors.

Stephen Hudson: It makes sense. Thanks for the color.

Operator: There are no further questions at this time. I will now hand back to Mr. McKay for closing remarks.

Speaker #2: There are no further questions at this time. I'll now hand back to Mr. McKay for closing remarks.

Speaker #6: Thank you. So if there are no further questions, we'll end the teleconference and the webcast. If analysts and investors have further questions, please contact Jason.

Doug McKay: Thank you. If there are no further questions, we will end the teleconference and the webcast. If analysts and investors have further questions, then please contact Jason. If media have any follow-ups, please contact Matt Britton or call our usual media phone number. Thank you, everybody, for your interest and for joining us.

Speaker #6: If media have any follow-ups, please contact Matt Britton or call our usual media phone number. Thank you, everybody, for your interest and for joining us.

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