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New Zealand Gazette – 2005 – No. 147

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✨ Financial Performance Measures

3632

NEW ZEALAND GAZETTE, No. 147

30 AUGUST 2005

Vector Limited

Electricity Lines Business

Form for the Derivation of Financial Performance Measures from Financial Statements

For the year ended 31 March 2005

SCHEDULE 1 - PART 7

Derivation Table	Input and Calculation	Symbol in formula	ROF	ROE	ROI
Operating surplus before interest and income tax from financial statements	215,764
Operating surplus before interest and income tax adjusted pursuant to requirement 18 (OSBIIT)	215,764
Interest on cash, bank balances, and short-term investments (ISTI)	1,254
OSBIIT minus ISTI	214,510	a	214,510		214,510
Net surplus after tax from financial statements	53,704			53,704
Net surplus after tax adjusted pursuant to requirement 18 (NSAT)	53,704	n	30,320	add	30,320
Amortisation of goodwill and amortisation of other intangibles	30,320	q	add	add	add
Subvention payment	58,011
Depreciation of SFA at BV (x)	69,438	d	add	(1,425)	add
Depreciation of SFA at ODV (v)	(1,425)				(1,425)
ODV depreciation adjustment
Subvention payment tax adjustment	37,009	g			27,009
Interest tax shield		r			deduct
Revaluations	50,230	p			50,230
Income tax					deduct
Numerator			243,405	82,599	156,188
			OSBIIT^ADJ = a + q + s + d	NSAT^ADJ = n + q + r + s + d - p + t	OSBIIT^ADJ = a + q + r + s + d - p + t^1
Fixed assets at end of previous financial year (FA₀)	1,875,837
Fixed assets at end of current financial year (FA₁)	2,000,913
Adjusted net working capital at end of previous financial year (ANWC₀)	115,418
Adjusted net working capital at end of current financial year (ANWC₁)	123,261
Average total funds employed (ATFE)	1,969,036	c	1,969,036		1,969,036
(or requirement 32 time-weighted average)
Total equity at end of previous financial year (TE₀)	780,903
Total equity at end of current financial year (TE₁)	781,882
Average total equity	781,443	k		781,443
(or requirement 32 time-weighted average)
WUC at end of previous financial year (WUC₀)	81,808	e	76,111	deduct	76,111
WUC at end of current financial year (WUC₁)	70,415
Average total works under construction	76,111
(or requirement 32 time-weighted average)
Revaluations		f
Half of Revaluations		f/2
Intangible assets at end of previous financial year (IA₀)	553,798
Intangible assets at end of current financial year (IA₁)	531,690
Average total intangible asset	542,844	m		542,844
(or requirement 32 time-weighted average)
Subvention payment at end of previous financial year (S₀)
Subvention payment at end of current financial year (S₁)
Subvention payment tax adjustment at end of previous financial year
Subvention payment tax adjustment at end of current financial year
Average subvention payment & related tax adjustment		v
System fixed assets at end of previous financial year at book value (SFA_book)	1,850,533
System fixed assets at end of current financial year at book value (SFA_book)	1,901,031
Average value of system fixed assets at book value	1,886,782	f	deduct	1,886,782	deduct
(or requirement 32 time-weighted average)
System fixed assets at year beginning at ODV value (SFA_ODV0)	1,855,388
System fixed assets at end of current financial year at ODV value (SFA_ODV1)	1,915,102
Average value of system fixed assets at ODV value	1,886,750	h	add	1,886,750	add
(or requirement 32 time-weighted average)
Denominator	1,898,893		169,455		1,898,893
			ATFE^ADJ = c - e - f + h	Ave TE^ADJ = k - e - m + v - f + h	ATFE^ADJ = c - e - f + h
Financial Performance Measure:			ROF = OSBIIT^ADJ/ATFE^ADJ x 100	ROE = NSAT^ADJ/Ave TE^ADJ x 100	ROI = OSBIIT^ADJ/ATFE^ADJ x 100
			12.8	49.0	8.21

1 = minimum statutory income tax rate applying to corporate entities
by = book value
ave = average
odv = estimated depreciable valuation
subscript “0” = end of the previous financial year
subscript “1” = end of the current financial year
ROF = return on funds
ROE = return on equity
ROI = return on investment

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