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Note 5: Segment Information

As at 31 March 2013, 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 2013 are as follows:
    Generation New Zealand Generation Australia Retail Other Total
    $000 $000 $000 $000 $000
    Total segment revenue 252,382 37,817 722,845 2,772 1,015,816
    Inter-segment revenue (208,179) - - (2,133) (210,312)
    Revenue from external customers 44,203 37,817 722,845 639 805,504
    Adjusted EBITDAF 222,387 23,188 51,852 (3,927) 293,500
    Amortisation of intangible assets - - 3,063 4,867 7,930
    Depreciation 40,651 15,182 - 2,224 58,057
    Capital expenditure 26,971 166,461 - 13,647 207,079
    Asset impairment - - - - -
    The segment results for the year ended 31 March 2012 are as follows:
    Total segment revenue 254,531 36,407 732,939 2,460 1,026,337
    Inter-segment revenue (217,116) - - (2,161) (219,277)
    Revenue from external customers 37,415 36,407 732,939 299 807,060
    Adjusted EBITDAF 212,594 22,886 68,730 (1,468) 302,742
    Amortisation of intangible assets - - 3,808 1,549 5,357
    Depreciation 37,463 13,756 - 1,661 52,880
    Capital expenditure 24,119 5,138 - 19,216 48,473
    Asset impairment 428 - - - 428
               
    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
            2013
    $000
    2012
    $000
    Adjusted EBITDAF 293,500 302,742
    Depreciation (58,057) (52,880)
    Amortisation (7,930) (5,357)
    Fair value gains/(losses) on financial instruments (5,593) (7,544)
    Foreign exchange gains/(losses) 1,152 (2,610)
    Loss on sale of property, plant and equipment 104 5
    Impairment of assets - (428)
    Interest received 1,472 904
    Interest paid (64,219) (63,889)
    Profit before income tax 160,429 170,943