SUSTAINABILITY REPORT - Landcom

CORPORATE
INDICATORS
IN 2003/2004 LANDCOM RETURNED $88 MILLION
TO THE NSW GOVERNMENT IN THE FORM OF
DIVIDENDS AND TAX-EQUIVALENT PAYMENTS.
GOOD PERFORMANCE WHERE
A TARGET IS NOT APPLICABLE
INDICATORS 16 TO 21 – PROFITABILITY
PURPOSE
Landcom’s objective is to operate as a successful corporate
entity with at least the same level of efficiency as any
comparable private sector company.
Indicators 16 to 21 provide a measure of Landcom’s
profitability.
TARGET
Landcom aims to operate as a successful business
and maximise the net worth of the State’s investment
in its operations.
RESULTS
Indicator 2003/2004 2002/2003
Sales revenue $333,253,723 $281,222,000
Sales margin 48.8% 51.2%
Return on sales 26.3% 29.5%
Earnings before interest
and tax (EBIT) $132,180,000 $127,130,000
Return on equity 24.6% 26.1%
Return on total operating
assets 15.1% 16.5%
INDICATOR 22 – FINANCING CAPACITY
PURPOSE
This indicator provides a comparison between Landcom’s
external financing arrangements and capital provided through
the State Government’s shareholder equity and profits
retained from previous years. Landcom’s maximum debt
levels are established through periodic capital structure
reviews undertaken by Landcom and the NSW Treasury.
TARGET
Landcom aims to provide a responsible balance between
its net debt and total equity.
RESULTS
Indicator 2003/2004 2002/2003
Debt to equity ratio 8.0% 9.5%
INDICATOR 23 – RETURNS TO GOVERNMENT
PURPOSE
This indicator measures Landcom’s annual return to the
State Government.
TARGET
Landcom’s objective is to provide an appropriate return to
the State Government. In 2003/2004 this represented 40%
of the Corporation’s net profit. In addition, Landcom pays
an income tax equivalent to the State. The tax rate
is currently set at 30% of net profit. Landcom also pays all
other NSW charges and taxes imposed on private-sector
organisations, including stamp duty and land tax. Landcom’s
returns to government assist NSW Government to fund
operations and capital works.
The balance of the Corporation’s net profit after payment of
dividends and income tax (currently 30% of earnings before
tax) is reinvested into Landcom’s activities.
RESULTS
Indicator 2003/2004 2002/2003
Returns to Government $87,978,000 $83,081,000
INDICATOR 24 – JOB CREATION
PURPOSE
This indicator measures the economic output and
employment generated from our activities.
TARGET
There is no specific target other than to demonstrate
tangible ways of how we contribute to the economy of NSW.
RESULTS
Indicator 2003/2004 2002/2003
Total number of jobs created
through Landcom’s activities 5,270 4,470
Total economic output
generated from
Landcom’s activities $413,026,700 $350,351,900
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