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

Commercial Priority Portfolio PerformanceCommercial value (excluding KiwiRail) is consistent with 2010......and the recovery in profitability since 2009 has been sustained.Total shareholder return%$20.8bCommercial value(2010: $20.8b)■ Dividend Return ■ Value Gain ReturnWhile dividends have increased 9.5% from last year 1 ...…the portfolio needs to convert the strong trend in capital expenditureinto higher profitability and dividends moving forward...Net capex, dividends and net operating cash flows$b$3.1bEBITDAF(2010: $3b)4.5%TotalShareholderReturn(2010: 19.3%)■ Net Capex ■ Dividends paid — Net operating cash flows…our economic profit analysis, which suggests the portfolio has generallymet its cost of invested capital, supports the view that appropriate returnscan be achieved.Economic profit$m$889mDividends Paid 1(2010: $811m)$2.5bNet CapitalExpenditure(2010: $2.1b)— Portfolio (excl KiwiRail) — Portfolio (excl Revals, KiwiRail) — Portfolio with KiwiRail1 2010/11 dividends include a special dividend from Meridian of $521 million due to the saleof the Tekapo A and B Stations. Other special “one-off” dividends include $300 millionin 2009/10 (Meridian $150 million, Mighty River Power $150 million) and $81 million in2006/07 (Air New Zealand)page | 7