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New Zealand Gazette – 2005 – No. 27

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✨ Financial Performance Measures

666

NEW ZEALAND GAZETTE, No. 27

25 JANUARY 2005

Vector Limited

Electricity Lines Business

Form for the Derivation of Financial Performance Measures from Financial Statements

For the year ended 31 March 2004

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	201,808
Operating surplus before interest and income tax adjusted pursuant to requirement 18 (OSBIIT)	201,808
Interest on cash, bank balances, and short-term investments (ISTI)	411
OSBIIT minus ISTI	201,397	a	201,397		201,397
Net surplus after tax from financial statements	44,631	n		44,631
Amortisation of goodwill and emorission of other intangibles	29,975	g	add	29,975	add
Subvention payment		s	add		add
Depreciation of SFA at BV (v)	62,257
Depreciation of SFA at ODV (v)	58,143
ODV depreciation adjustment	2,114	d	add	2,114	add
Subvention payment tax adjustment		s*t		deduct
Interest tax shield	35,937	q
Income tax	49,143	p			deduct
Numerator			OSBIIT^ADJ = a - q - s - d	NSAT^ADJ = n + g + s - t + d	OSBIIT^ADJ = a + g - q - r + s + d - p - s*t
Fixed assets at end of previous financial year (FA)	1,944,985
Fixed assets at end of current financial year (FA)	1,975,837
Adjusted net working capital at end of previous financial year (ANWC₀)	(10,973)
Adjusted net working capital at end of current financial year (ANWC₁)	(15,418)
Average total funds employed (ATFE)	1,947,266	c	1,947,266		1,947,266
Total equity at end of previous financial year (TE₀)	935,472
Total equity at end of current financial year (TE₁)	858,198	k		858,198
Average total equity	896,833
WUC at end of previous financial year (WUC₀)	32,493
WUC at end of current financial year (WUC₁)	81,809
Average total works under construction	57,150	e	57,150	deduct	57,150
Revaluations		r
Half of Revaluations		r/2
Intangible assets at end of previous financial year (IA)	586,974
Intangible assets at end of current financial year (IA)	553,798
Average total intangible asset	570,386	m		deduct	570,386
Subvention payment at end of previous financial year (S)
Subvention payment at end of current financial year (S)
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	1,872,253	v		add
System fixed assets at end of previous financial year as book value (SFA_book)	1,868,533
System fixed assets at end of current financial year as book value (SFA_book)	1,868,393	f		deduct	1,868,393
Average value of system fixed assets at book value	1,868,463
System fixed assets at year beginning at ODV value (SFA_ODV)	1,609,940
System Fixed assets at end of current financial year at ODV value (SFA_ODV)	1,734,169	h		add	1,734,169
Average value of system fixed assets at ODV value	1,672,055
Denominator	1,757,892		ATFE^ADJ = c - e - f + h	Ave TE^ADJ = k - e - m - v - f + h	ATFE^ADJ = c - e - v - f + h
Financial Performance Measure:			ROF = OSBIIT^ADJ/ATFE^ADJ x 100	ROE = NSAT^ADJ/ATE^ADJ x 100	ROI = OSBIIT^ADJ/ATFE^ADJ x 100

1% maximum statutory income tax rate applying to corporate entities
bv = book value
ave = average
odv = optimised nominal valuation
subscript '1' = end of the current financial year
ROF = return on funds
ROE = return on equity
ROI = return on investment

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