POWERCO

ELECTRICITY DIVISION

Statement of Cash Flows

For the year ended 30 June 2006

| | Notes | 30 June 2006
| $000 | 30 June 2005
| | $000 |
|---------------------------|-------|----------------|
| CASH FLOWS FROM | | |
| OPERATING ACTIVITIES | | |
| | | |
| Cash was provided from: | | |
| Receipts from customers | | 250,503 | 238,089 |
| Interest received | | 2,386 | 421 |
| Net movement in GST | | — | — |
| | | 252,890 | 238,635 |
| | | |
| Cash was applied to: | | |
| Payments to suppliers and | | |
| employees | | 126,722 | 132,721 |
| Interest paid | | 42,362 | 8,030 |
| Payments of income tax | | 16,382 | 28,113 |
| | | 185,465 | 168,864 |
| | | |
| NET CASH INFLOW/(OUTFLOW) FROM |
| OPERATING ACTIVITIES | 9 | 67,424 | 69,771 |
| | | |
| CASH FLOWS FROM | | |
| INVESTING ACTIVITIES | | |
| | | |
| Cash was applied to: | | |
| Purchase of property, | | |
| plant and equipment | | 63,102 | 55,869 |
| | | |
| NET CASH INFLOW/(OUTFLOW) |
| FROM INVESTING ACTIVITIES | | (63,102) | (55,869)|
| | | |
| CASH FLOWS FROM | | |
| FINANCING ACTIVITIES | | |
| | | |
| Cash was provided from: | | |
| Issue of bonds | | 131,600 | — |
| Issue of commercial paper | | 13,875 | 12,770 |
| Issue of US dollar | | |
| private placement | | 25,078 | 2,807 |
| Movement in current | | |
| account | | — | 15,265 |
| Issue of bank debt | | — | 79,188 |
| | | 170,553 | 110,031 |
| | | |
| Cash was applied to: | | |
| Repayment of bank debt | | 71,438 | — |
| Dividends paid | | 51,928 | 41,543 |
| Movement in current | | |
| account | | 62,517 | — |
| Repayment of bonds | | — | 70,756 |
| | | 185,883 | 112,299 |
| | | |
| NET CASH INFLOW/(OUTFLOW) FROM |
| FINANCING ACTIVITIES | | (15,330) | (2,267) |
| | | |
| NET INCREASE (DECREASE) |
| IN CASH HELD | | (11,008) | 11,635 |
| | | |
| Opening cash brought | | |
| forward | | (4,891) | (16,526)|
| | | |
| ENDING CASH CARRIED |
| FORWARD | | (15,899) | (4,891) |

The accompanying notes form part of these financial statements.