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Retrieving Data

Note 5

For the Year Ended 31 March 2011

SEGMENT INFORMATION

As at 31 March 2011, 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 2011 are as follows:

GENERATION NEW ZEALAND GENERATION AUSTRALIA RETAIL OTHER TOTAL
$000 $000 $000 $000 $000
Total segment revenue 213,208 30,937 701,096 2,261 947,502
Inter-segment revenue (179,474) - - (1,985) (181,459)
Revenue from external customers 33,734 30,937 701,096 276 766,043
Adjusted EBITDAF 183,778 22,244 70,672 (1,935) 274,759
Amortisation of intangible assets - - 3,808 1,739 5,547
Depreciation 33,855 13,676 - 1,793 49,324
Capital expenditure 101,992 602 - 5,881 108,475
Asset impairment - - - - -
The segment results for the year ended 31 March 2010 are as follows:
Total segment revenue 192,016 35,970 686,394 2,261 916,641
Inter-segment revenue (155,177) - - (2,177) (157,354)
Revenue from external customers 36,839 35,970 686,394 84 759,287
Adjusted EBITDAF 174,031 27,624 74,913 (2,051) 274,517
Amortisation of intangible assets - - 3,808 1,849 5,657
Depreciation 34,168 14,329 - 861 49,358
Capital expenditure 19,012 82 - 10,175 29,269
Asset impairment - (42) - 6,162 6,120
           

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:

GROUP
2011 2010
$000 $000
     
Adjusted EBITDAF 274,759 274,517
Depreciation (49,324) (49,358)
Amortisation (5,547) (5,657)
Fair value gains/(losses) on financial instruments 62 12,509
Foreign exchange gains/(losses) (248) (87)
Loss on sale of property, plant and equipment (98) (549)
Impairment of assets - (6,120)
Interest received 917 385
Interest paid (62,746) (59,100)
Profit before income tax 157,775 166,540