2008 annual meetingMichael Stiassny, Chairman

Simon Mackenzie, Group Chief Executive Officer

23 October 2008

Michael Stiassny

Chairman

Vector 2008 result

Dividend

13.25cps (fully imputed)

Uncharted territory

•Vector in solid position, but;

•Infrastructure is capital intensive

•Debt is sourced internationally

•Market instability is likely to affect customer demand

The year ahead - vigilance

Continue to build on progress in 2008

Prudent and careful governance even more important

Continuous improvement maintained

Group SummarySimon Mackenzie

Group Chief Executive Officer

Our achievements

NPAT $164.4 million

NPBT $231.5 million1.3%

Our achievements

Refinanced $300 million of debt

Cut costs by $20 million, annualised

Booked $200 million profit on Wellington sale

Improved customer response

Achieved Commerce Act changes

Finalised metering agreements

Continued fibre optic network extension

0

200

400

600

800

1,000

1,200

1,400

Revenue EBITDA NPBT NPAT

2007

2008

Group results SummaryYear ended 30 June 2008

1,329.3

640.0

164.4

1,307.1

605.3

5.7%1.7%

233.3

($m)

1.3%

231.5228.5

Contributors to Group EBITDA growth

Core businesses in Electricity and Gas remain key underlying drivers of EBITDA growth

640.0

-3.827.0

3.18.4

605.3

500

520

540

560

580

600

620

640

Electricity Technology FY08EBITDA

NZ$

mill

ion

FY07 EBITDA

Gas Corporate

Electricity

0

100

200

300

400

500

600

700

Revenue EBITDA

2007

2008

0

2,000

4,000

6,000

8,000

10,000

12,000

2007 2008

Electricity distributed

10,595 10,708

2,435

8,160

2,441

8,267

Wellington

Greater Auckland

Revenue and EBITDA increases

Strong volume growth in Auckland

Wellington network divestment completed in July 20081.1%

0.2%

1.3%

611.5 637.5

376403

7.2%4.3%

($M)

(GWh)

15.5%

020406080

100120140

2007 2008

Gas

0

200

400

600

Revenue EBITDA

2007

2008

94.6

22.0

109.3

21.6

Contract position in Commercial and Industrial market remains strong

Competition increased due to gas supply

1.8%

626.8 619.5

PJ’s

Distribution

Transmission

244 252

3.4%1.2%

Gas distributed

($M)

12.2%

Technology

0

20

40

60

Revenue EBITDA

2007

200863.266.3 Vodafone contract

announced

300 km network extension underway

Wholesale telecommunications channel growth

46.843.0

4.9% 8.1%

($M)

Debt Facilities Maturity Profile (30 June 2008)

54.35%5+ years

16.76%2-5 years

28.89%1-2 years

Consolidated Group Debt Maturity Profile

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1,000.0

1,100.0

08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21

1 2 3 4 5 6 7 8 9 10 11 12 13

Financial Year Ended

Deb

t ($m

)

Sterling 7.625%Bonds

Credit WrappedFloating Rate Notes

USPP

6.81% Fixed RateNotes

Credit Wrapped AUDMedium Term Notes

Credit WrappedFloating Rate Notes

8.00% Capital Bonds

Senior Credit Facility

Working CapitalFacility

Debt Facilities Maturity Profile – After Sale Wellington Network

65.18%5+ years

24.42%2-5 years

10.40%1-2 years

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1,000.0

1,100.0

08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21

1 2 3 4 5 6 7 8 9 10 11 12 13

Financial Year Ended

Deb

t ($m

)

Sterling 7.625%Bonds

Credit WrappedFloating Rate Notes

USPP

6.81% Fixed RateNotes

Credit Wrapped AUDMedium Term Notes

Credit WrappedFloating Rate Notes

8.00% Capital Bonds

Senior Credit Facility

Working CapitalFacility

Preparing for the years ahead

Demand will be affected

Field operations to be streamlined

Capital and operational expenditure reviewed

Disciplined growth still a focus

Regulation

Commerce Amendment Bill passed – electricity reset 2010

Economic conditions change assumptions around fair returns

Engagement continues on Auckland gas network

Capital is now expensive and scarce

Climate change•Consumer preferences changing

•Climate change drives strategy

•Balance between environmental and economic drivers

•Continuing to research renewable generation to understand effects on supply and demand

Line charge increases

Domestic Electricity Price Breakdown: Real (March 2008) dollars

0.00

5.00

10.00

15.00

20.00

25.00

Feb-02

Feb-03

Feb-04

Feb-05

Feb-06

Feb-07

Feb-08

Energy

Transmission & TransmissionLoss Rentals

Lines

Source: Electricity Networks Association

Summary

Improved Capital, Operational Efficiency

Improved Operational Excellence

Improved Customer outcomes

New options for disciplined growth

Regulation, work in progress

Economic environment challenging

Drive increased performance from core assets

Progress growth options

Michael Stiassny

Chairman

Agenda Item 1

Annual Report, Financial Statements and Auditor’s Report

Agenda Item 2

Election of directors

Agenda Item 2 – Election of directors

2. to re-elect Karen Sherry as a director

382,696Abstain

1,495,929Against

163Additional discretionary held by the Chairman

2,921,733Discretionary

802,102,394For

Proxy Voting

Agenda Item 2 – Election of directors

3. to elect James Carmichael as a director

415,491Abstain

1,062,609Against

163Additional discretionary held by the Chairman

2,999,701Discretionary

802,424,951For

Proxy Voting

Agenda Item 2 – Election of directors

375,185Abstain

2,186,452Against

163Additional discretionary held by the Chairman

2,827,150Discretionary

801,513,965For

Proxy Voting

1. to re-elect Michael Stiassny as a director

Agenda Item 3

Auditor’s Appointment and Remuneration

Agenda Item 3 – Appointment and Remuneration of the Auditor

295,215Abstain

499,226Against

163Additional discretionary held by the Chairman

3,137,213Discretionary

802,971,098For

Proxy Voting

Voting on resolutions

General Business

Michael Stiassny

Chairman

2008 annual meetingMichael Stiassny, Chairman

Simon Mackenzie, Group Chief Executive Officer

23 October 2008