apr-11.pdf (2.07 MB) - Crown Ownership Monitoring Unit

Airways Corporation of New Zealand LimitedCHAIR » Susan PatersonBOARD » Dave Park,Anthony Briscoe, Susan Huria,Terry Murdoch, Susan Putt,Graeme ReevesCHIEF EXECUTIVE » Ed SimsActivitiesAirways is a commercial providerof air navigation services andassociated aviation infrastructureservices in New Zealand andinternationally. Airways’ corebusiness comprises:Air traffic control – This is primarilythe separation of aircraft in flight,to standards determined by theappropriate regulatory authority.Air traffic management – This is themanagement of aircraft flight pathsfor greatest efficiency, within theconstraints of safety.Navigation services – Theseare the navigation infrastructureand supporting services usedby aircraft. Navigation servicesare currently provided within the30 million square kilometres ofthe New Zealand Oceanic FlightInformation Regions. Withinthese regions, Airways controlsapproximately one million aircraftmovements per annum.Financial performance measures2007 2008 2009 2010 2011ReturnsTotal shareholder return 6.9% 24.1% 14.6% 14.5% 5.3%Dividend yield 7.1% 6.6% 5.8% 4.5% 5.1%Dividend payout N/A N/A N/A N/A N/AAdjusted ROE 22.3% 22.2% 8.6% (1.9%) 10.4%EfficiencyROCE 20.6% 21.1% 9.1% 9.4% 11.4%Operating margin 22.6% 23.7% 16.6% 15.4% 15.1%Generator efficiency N/A N/A N/A N/A N/ALeverageNet gearing 49.9% 28.6% 38.2% 37.5% 29.8%Interest cover 10.76 11.22 9.99 13.39 13.90Current ratio 1.02 1.05 1.05 0.51 0.98OtherFive-year averageDividend growth 0.0%Revenue growth 3.8%Income statement$m 2007 2008 2009 2010 2011Revenue 132 139 140 145 152EBITDAF 30 33 23 22 23NPAT 9 11 5 (1) 5Balance sheet$m 2007 2008 2009 2010 2011Total assets 142 133 139 143 137Total liabilities 100 80 87 98 93Commercial value* 84 99 107 117 118Cash flow statement$m 2007 2008 2009 2010 2011Operating activities (net) 17 24 17 18 25Purchase of fixed assets 34 20 24 12 13Dividends paid 6 6 6 5 6Net cash flow (1) 3 (2) 4 2Note:* Commercial valuation from the SCIpage | 66