For the Year Ended 31 March 2010
As at 31 March 2010, the Group is organised into two main business segments:
- development, ownership and operation of electricity generation facilities from renewable energy sources including the trading of energy with Retail and external parties (“Generation”)
- purchase of energy from Generation and retail sale of electricity to customers (“Retail”)
The remaining activities of the Group are included in Other. This primarily relates to property services and some unallocated head office functions.
The Board has further segregated Generation into New Zealand and Australian operations. Generation New Zealand includes the metering business which does not meet the criteria to be disclosed as a separate operating segment. Retail operates only in New Zealand and includes telecommunications operations which do not meet the criteria to be disclosed as a separate operating segment.
The segment results for the year ended 31 March 2010 are as follows:
Inter-segment transactions are entered into under normal commercial terms and conditions that would also be available to unrelated third parties. The Board does not distinguish between revenue from internal or external customers when measuring the performance of segments. All revenue is reported to the Board on a basis consistent with that used in the income statement.
The Board assesses the performance of segments based on a measure of adjusted EBITDAF. This measure excludes the effects of non-operational expenditure or gains such as loss/gain on disposal or impairments of property, plant and equipment, fair value changes in foreign currency financial assets/liabilities and costs of major business acquisitions.
Interest income and expenditure and taxation costs are not allocated to segments as these activities are managed at a Group level by a central treasury function.
The Board does not segregate assets and liabilities in assessing Group performance.
Capital expenditure comprises additions to property, plant and equipment and intangible assets.
A reconciliation of adjusted EBITDAF to profit before income tax is as follows: