NEW ZEALAND GAZETTE, No. 140

23 NOVEMBER 2012

TRANSPOWER NEW ZEALAND LIMITED: LINES BUSINESS

SCHEDULE 1 - PART 7

FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS

| | Fixed assets at end of previous financial year (FA({p})) | 3,600.4 | | | |
| Fixed assets at end of current financial year (FA({c})) | 3,284.0 | | | |
| Adjusted net working capital at end of previous financial year (ANWC({p})) | 73.1 | | | |
| Adjusted net working capital at end of current financial year (ANWC({c})) | -63.0 | c | 3,864.1 | | 3,864.1 |
| Average total funds employed (ATFE) | | | |
| Total equity at end of previous financial year (T({p})) | 3,391.7 | | | |
| Total equity at end of current financial year (T({c})) | 3,339.3 | k | | 1,986.6 | |
| Average total equity | | | | |
| (or regulation 33 time-weighted average) | | | | |
| WUC at end of previous financial year (WUC({p})) | 785.7 | | | |
| WUC at end of current financial year (WUC({c})) | 1,247.2 | e | deduct | 1,011.2 | deduct | 1,011.2 |
| Average capital works under construction | | | | |
| (or regulation 33 time-weighted average) | 1,011.2 | | | | |
| Monetary assets | 0.0 | | | |
| Half of investments | 0.0 | ½f | | | |
| Intangible assets at end of previous financial year (IA({p})) | 269.2 | | | |
| Intangible assets at end of current financial year (IA({c})) | 203.0 | | | deduct | 231.6 | |
| Average total intangible asset | 271.6 | | | |
| (or regulation 33 time-weighted average) | | | | |
| Subvention payment at end of previous financial year (S({p})) | 0.0 | | | |
| Subvention payment at end of current financial year (S({c})) | 0.0 | | | |
| Subvention payment tax adjustment at end of previous financial year | 0.0 | | | |
| Subvention payment tax adjustment at end of current financial year | 0.0 | v | | | |
| Average subvention payment & related tax adjustment | 0.0 | | | | |
| System fixed assets at end of previous financial year at book value (SFA({bvp})) | | | | | |
| System fixed assets at end of current financial year at book value (SFA({bvc})) | | f | deduct | | deduct | |
| Average value of system fixed assets at book value | | | | | |
| System fixed assets at year beginning at ODV value (SFA({odvp})) | | | | | |
| System fixed assets at end of current financial year at ODV value (SFA({odvc})) | | | | add | | |
| Average value of system fixed assets at ODV value | | h | add | 2,852.0 | | 2,852.0 |
| (for regulation 33 time-weighted average) | | ATFE(^{ADJ}) = c - e + f + h | Ave TE(^{ADJ}) = k - m + f + r + f | ATFE(^{ADJ}) = c - e + f + h |
| Denominator | | | 3,864.1 | 10.1 | 7.8 | 7.6 |

Financial Performance Measure:

ROF = OSBIT(^{ADJ}) / ATFE(^{ADJ}) x 100

ROE = NSAT(^{ADJ}) / Ave TE(^{ADJ}) x 100

ROI = OSBIT(^{ADJ}) / ATFE(^{ADJ}) x 100

1. A maximum after-tax income tax rate applying to corporate entities, i.e. book value, ave = average, add = optimised derivational valuation (Transpower does not perform an ODV). Subscript “o” = end of financial year subscript “1” = end of the current financial year. ROF = return on funds.

Transpower has included intangible assets with fixed assets in the calculation of adjusted net working capital reflecting the nature of the intangible assets.