New Zealand Gazette – 2006 – No. 133

Page 3869

✨ Electricity Lines Business Financial Performance

FORM FOR THE DISCLOSURE OF FINANCIAL PERFORMANCE MEASUREMENT FOR YEAR ENDED 31 MARCH 2006

(In accordance with Part 4 of the Commerce Commission’s Electricity Lines Businesses Information Disclosure) Determinations 2004 (as amended))

Denotation Table

	Inputs and Calculations	Symbol
Opening carrying value of line business assets and normalised tax depreciation	Z(0,T) = $74,237.74
Interest on cash, bank balances, and short term investments (STI)	r(sti) = 5.37067 %
Net surplus after tax from financial instruments (IFRS)	1,356,288
Net expenditure on property, plant and equipment (PPE) and intangible assets (IA)	1,103,974
Tax adjustment for non-standard tax treatments	0
Tax effect of asset revaluations (AR)	0
Deprival value of SFA at 31/03/05 (RAB)	2,490,955
Accumulation of goodwill and amortisation of other intangibles	0
Depreciation of SFA at DV (γ)	696
OW/OG regulation adjustment	N/A
Support payment tax adjustment	0
Revaluations	177,506
Interest tax shield	897,697

ROE
ROF

Financial Performance Measures:

Final Position & Estimates of opening Residual Assets Year (T+1) | $24,172,348 |
Please provide details of current financial year (FY):
- Adjustments and notes accepted at end of previous financial year (WACC): | $16,521,040 |
- Adjustment for change in WACC (mid-year adjustment) | $0 |
- Total value at end of current financial year (TEL): | $147,062,264 |
- Average cost of debt (pre-tax financial cost) | 6.12% |
- WUC at end of current financial year (WUC(T)) | 0 |
Reconciliations:
- Average total works under construction | $1,342,859 |
- Intangible assets at end of previous financial year (IA) |
Taxation:
- Subvention payment tax adjustment | N/A |
- Effective interest tax adjustment at end of previous financial year (S) |
- Tax on EBITDA | $43,023,222 |
- Average taxation payment in advance | 45,072,111 |
Financial Performance Ratios:
- System Fixed: Property & Equipment at end of financial year at book value (SF) | $189,667,151 |
- System Total: Property & Equipment at end of financial year at book value (ST) | $210,768,991 |
Return Calculations:
- Average value of system fixed property & equipment at ODV value (SF) |
- Average value of system total property & equipment at ODV value (ST) |
- Denominator | $47,690,046 |

Summary Table

Financial Performance Metrics:

ROE (Return on Equity) % = 21.74%
ROI (Return on Investment) % = 10.20%
ROF (Return on Funds) % = 3.29%
ROE = (Net profit after tax adjusting for abnormal items) / (average ordinary shareholders funds)
ROI = EBIT / (Net assets excluding goodwill and abnormal items)
ROF = EBITDA / (return on total funds employed)

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