28 NOVEMBER 2011 NEW ZEALAND GAZETTE, No. 184 5309

TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2011

CASH FLOW FROM OPERATIONS:
Cash was provided from:
Receipts from customers 602.5 636.7
Dividends received from subsidiaries - -
Interest received 0.3 1.5

Cash was applied to:
Payments to suppliers and employees (276.4) (229.3)
Tax payments (23.4) (35.6)
Interest paid (12.0) (104.3)

Net cash inflows (outflows) from operations 242.8 269.0

CASH FLOW FROM INVESTMENTS:
Cash was provided from:
Sale of property, plant and equipment 25.4 5.3
Short term investments 437.1 500.2

Cash was applied to:
Purchase of property, plant and equipment (690.3) (552.4)
Short term investments (435.4) (477.3)

Net cash inflows (outflows) from investments (663.2) (524.2)

CASH FLOW FROM FINANCING:
Cash was provided from:
Increase in loans 1,717.9 1,022.0

Cash was applied to:
Increase in long term investments - -
Dividends paid (810.8) (782.8)
Repayment of loans - -

Net cash inflows (outflows) from financing 361.1 239.2

Net increase (decrease) in cash held (20.3) (16.0)
Opening balance brought forward 20.4 36.4
Closing net cash carried forward 0.1 20.4
Closing net cash carried forward comprises:
Cash and bank 0.1 20.4

Reconciliation of net profit (loss) with net cash flow from operations

Net profit (loss) 48.7 29.7

Add (deduct) non-cash items:
Change in fair value of financial instruments 74.9 112.3
Unpaid insurance claim revenue - (3.2)
Depreciation and amortisation 164.9 133.6
Deferred tax (0.3) (4.4)
Impairment 19.7 30.0
Imputed interest 2.4 2.6

Movements in working capital items:
(Increase) decrease in trade and other receivables (13.2) 1.3
Decrease (increase) in prepayments (2.0) 1.6
(Increase) decrease in stocks of materials (1.0) (3.9)
(Decrease) increase in trade and other payables, interest payable and deferred income (26.6) 13.0
(Decrease) increase in taxation payable 7.3 (19.0)
(Decrease) increase in provisions 2.2 (0.4)

Add (deduct) items classified as investing activities:
Property, plant and equipment write-offs and loss on sale 12.5 5.4
Capitalised interest (37.7) (29.6)

Net cash flow from operations 242.8 269.0