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

Landcorp Farming LimitedCHAIR » Hon Jim SuttonBOARD » Warren Larsen,Bill Baylis, John Brakenridge,Traci Houpapa, Marise James,Jane Mitchell, Basil MorrisonCHIEF EXECUTIVE » Chris KellyActivitiesLandcorp was created out of theDepartment of Lands and Surveyin 1987. Landcorp’s core businessis pastoral farming including dairy,sheep, beef and deer. Landcorpoperates 122 farming units totalling376,156 hectares and it has threesubsidiary companies: LandcorpHoldings Limited, which holdsLandcorp property protected fromsale under an agreement with theCrown; Landcorp Estates Limitedwhich develops and sells premiumland that is deemed to have ahigher value in non-agriculturaluse; and Landcorp PastoralLimited, which is Landcorp’sinvestment vehicle in the FocusGenetics Limited Partnership.Financial performance measures2007 2008 2009 2010 2011ReturnsTotal shareholder return 34.4% 10.9% 5.7% (12.4%) 10.3%Dividend yield 0.3% 0.9% 0.9% 0.7% 1.3%Dividend payout 18.4% 59.4% 0% 160.7% 45.0%Adjusted ROE 10.7% 21.0% 8.3% 3.9% 26.3%EfficiencyROCE 8.6% 12.3% 5.6% 7.5% 15.9%Operating margin 22.7% 29.1% 13.3% 20.8% 33.2%Generator efficiency N/A N/A N/A N/A N/ALeverageNet gearing 14.8% 11.4% 12.2% 11.4% 10.4%Interest cover 2.07 3.67 1.71 3.33 7.54Current ratio 0.58 4.05 3.76 4.23 4.99OtherFive-year averageDividend growth 56.5%Revenue growth 13.7%Income statement$m 2007 2008 2009 2010 2011Revenue 137 180 164 172 230EBITDAF 31 52 22 36 76NPAT 20 59 10 (6) 115Balance sheet$m 2007 2008 2009 2010 2011Total assets 1,436 1,729 1,669 1,522 1,663Total liabilities 256 280 309 285 311Commercial value* 1,179 1,360 1,450 1,270 1,400Cash flow statement$m 2007 2008 2009 2010 2011Operating activities (net) 26 31 9 18 52Purchase of fixed assets 46 93 53 28 58Dividends** 3 12 13 10 18Net cash flow (1) 1 (1) 1 (0)Notes:* Commercial valuation from the SCI** Under an arrangement entered into with the Crown at the time of the Protected Land Agreement in 2007,Landcorp’s dividends were diverted back to Landcorp in the form of redeemable preference shares. Thefinal dividend diversion was completed in 2010/11page | 78