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

More documents

Recommendations

Info

Public TrustCHAIR » Trevor JanesBOARD » Robin Hill,Rodger Finlay, Dinu Harry,Sue McCormack, FionaOliver, Hinerangi Raumati,Sarah RobertsCHIEF EXECUTIVE »Grenville GaskellActivitiesPublic Trust is New Zealand’s mostenduring trustee organisation,providing independent and reliabletrustee services since 1873. As aCrown entity its independence isguaranteed under the Public TrustAct 2001.Public Trust is New Zealand’slargest provider of wills and estateadministration services. It alsoprovides a wide range of productsand services to help all NewZealanders at different stagesof their lives. These include:provision of wills, estate planningand administration services;managing family, education andfuneral trusts; managing charitabletrusts; providing corporatetrustee services; administering ormanaging assets and investmentfunds; providing home loans andconveyancing; providing studentfee protection; administration,audit and advice for incapacitatedpersons pursuant to the Protectionof Personal and Property Rights(PPR) Act 1988; providing financialand retirement planning; providinglife and general insurance;providing tax planning and advice;and establishing enduring powersof attorney.Financial performance measures2007 2008 2009 2010 2011ReturnsTotal shareholder return N/A N/A N/A N/A 4.3%Dividend yield N/A N/A N/A N/A N/ADividend payout 0.0% 0.0% 0.0% 0.0% 0.0%Adjusted ROE 6.4% (33.2%) N/A N/A N/AEfficiencyROCE 0.7% (1.2%) (1.8%) (0.6%) (0.7%)Operating margin 9.1% (13.7%) (25.0%) (5.0%) (5.5%)Generator efficiency N/A N/A N/A N/A N/ALeverageNet gearing N/A N/A N/A N/A N/AInterest cover N/A N/A N/A N/A N/ACurrent ratio 0.29 0.30 0.28 0.29 0.51OtherFive-year averageDividend growthN/ARevenue growth 0.6%Income statement$m 2007 2008 2009 2010 2011Revenue 60 65 64 63 61EBITDAF 5 (9) (16) (3) (3)NPAT 4 (32) (47) 5 1Balance sheet$m 2007 2008 2009 2010 2011Total assets 846 1,007 1,093 921 908Total liabilities 796 991 1,110 901 886Commercial value* - - 36 35 36Cash flow statement$m 2007 2008 2009 2010 2011Operating activities (net) 13 18 (1) (3) (1)Purchase of fixed assets 1 1 3 1 4Dividends paid - - - - -Net cash flow 13 (6) (4) 15 (1)Notes:* Commercial valuation from the SCIFigures restated from 2010 APR: Income Statement – revenue is reported on the net interest income basis andEBITDAF excludes unrealised investment gains/losses but includes mortgage losses. Balance Sheet – overdraftis netted against cash and cash equivalentspage | 92
OperationsSince 2007, Public Trust has been implementing a five-year changeprogramme to increase fee revenue and improve productivity to transforminto a commercially viable organisation. The risk profile of Common Fundinvestments has also been reduced. In line with current strategies, Public Trustis undertaking initiatives to grow fee revenue, manage costs and optimise itsbalance sheet structure. While these initiatives have been delivering growthin fee revenue to offset the planned decrease in Common Fund net interestincome, stronger evidence of the effectiveness of the change programmeshould be demonstrated in 2011/12, being the fifth year of the programme.Public Trust was in a negative equity position at the end of the 2008/09financial year after incurring losses on its Common Fund investment portfolioduring 2007/08 and 2008/09. The Crown has injected $50 million of capital torestore Public Trust’s balance sheet, pending improvement in the markets.Public Trust’s financial position remains highly dependent on the reversal ofunrealised investment losses which are determined by economic and financialmarkets conditions. We consider that there is a risk Public Trust, at its currentrate of progress, may not be able to accumulate sufficient capital to meetcapital adequacy requirements under the Non-Bank Deposit Taker Schemewhen the current exemption expires on 1 December 2013.The regulatory environment for Public Trust continues to change with theSecurities Trustees and Statutory Supervisors Act 2011 introducing newlicensing and disclosure requirements in the next few years.Financial performancePublic Trust’s profitability showed signs of tracking in the right direction in2009/10, mainly owing to improved operating performance and the reversalof unrealised impairment losses on financial instruments. However, 2010/11financial performance was negatively affected by the Canterbury earthquakeswhich caused extensive damage to Public Trust’s three Christchurch sites andhas had a significant impact on its 85 employees in the region.Performance against planIn 2010/11, Public Trust reported NPAT of $600,000 (budget $400,000),compared to $4.8 million NPAT in 2009/10. This is mainly owing to the reversalof unrealised mark-to-market Common Fund investment gains which were$5.6 million in 2010/11 compared to $10.7 million in 2009/10 reflecting thereversal of the losses on the investment portfolio incurred in 2007/08 and2008/09. Public Trust’s underlying profitability (before transformation costs,mortgage losses, investment revaluations and insurance recovery relatedto the earthquakes) was $1.8 million in 2010/11, compared to $3.4 million in2009/10.Major investmentsPublic Trust has invested anaverage of approximately $5 millionpa over the past three years in itschange programme. We expectto see the results of the changestranslate into improved financialperformance in the 2011/12financial year.Non-financial performancePublic Trust’s market share forwills was 14% compared to the15% target and 15% in 2009/10,and its market share for estates(probates) was 14.2% againsta target of 14.5% and 13.9% in2009/10. Customer satisfactionand advocacy, as measured bynet promoter score, continue toimprove.Corporate social responsibilityPublic Trust has a corporate socialresponsibility strategy to operatethe business in a responsibleand sustainable manner. Currentinitiatives include its leased vehiclecontract, which seeks to minimiseenergy requirements throughsmaller engine sizes, and ascheme to offset carbon emissions.Public Trust also exhibits energyconsciousness in the operationof its premises and informationtechnology resources.DividendsPublic Trust is not expected to make any distributions to the Crown until itsfinancial position improves.page | 93
Page 1 and 2:
2011AnnualPortfolioReport
Page 3 and 4:
2011AnnualPortfolioReport
Page 5 and 6:
51 Crown Financial Institutions52 A
Page 7 and 8:
topic on CFI risk tolerance (page 4
Page 9 and 10:
Commercial Priority Portfolio Perfo
Page 11 and 12:
page | 9
Page 13 and 14:
Crown Financial InstitutionPerforma
Page 15 and 16:
EQC has been excluded from the anal
Page 17 and 18:
Longer-term performance has been be
Page 19 and 20:
Figure 6 - Annualised return and ri
Page 21 and 22:
page | 19
Page 23 and 24:
Company financial performanceRevenu
Page 25 and 26:
Figure 9 - Dividends for the last f
Page 27 and 28:
Figure 12 - TSR - return compositio
Page 29 and 30:
Book value and commercial valueOne
Page 31 and 32:
There have been offsetting movement
Page 33 and 34:
Special Topic: Commercial PriorityP
Page 35 and 36:
F igure 14 - Net operating profit d
Page 37 and 38:
jurisdictions is fraught. There are
Page 39 and 40:
Key assumptions and features of the
Page 41 and 42:
ROIC 2002 2003 2004 2005 2006 2007
Page 43 and 44: By 2011 the landscape for SOE discl
Page 45 and 46: There have been considerable improv
Page 47 and 48: ...and invest in different levels o
Page 49 and 50: It is not clear whether the level o
Page 51: Board demographicsThe breakdown of
Page 54 and 55: Accident Compensation CorporationCH
Page 56 and 57: Earthquake CommissionCHAIR » Micha
Page 58 and 59: Government Superannuation FundCHAIR
Page 60 and 61: National Provident FundCHAIR » Cat
Page 62 and 63: New Zealand Superannuation FundCHAI
Page 65 and 66: CommercialPriority Companies
Page 67 and 68: Major investmentsThe total investme
Page 70 and 71: Animal Control Products LimitedCHAI
Page 72 and 73: AsureQuality LimitedCHAIR » Janine
Page 74 and 75: Crown Fibre Holdings LimitedCHAIR
Page 76 and 77: Genesis Power LimitedCHAIR » Rt Ho
Page 78 and 79: Kordia Group LimitedCHAIR » David
Page 80 and 81: Landcorp Farming LimitedCHAIR » Ho
Page 82 and 83: Learning Media LimitedCHAIR » Sand
Page 84 and 85: Meridian Energy LimitedCHAIR » Chr
Page 86 and 87: Meteorological Service of New Zeala
Page 88 and 89: Mighty River Power LimitedCHAIR »
Page 90 and 91: New Zealand Post LimitedCHAIR » Ho
Page 92 and 93: New Zealand Railways Corporation (t
Page 96 and 97: Quotable Value LimitedCHAIR » Phil
Page 98 and 99: Solid Energy New Zealand LimitedCHA
Page 100 and 101: Television New Zealand LimitedCHAIR
Page 102 and 103: Transpower New Zealand LimitedCHAIR
Page 105 and 106: Multiple ObjectiveCompanies
Page 107 and 108: Crown Research Institute TaskforceD
Page 109 and 110: OperationsNZVIF has been operating
Page 111 and 112: Entity AbbreviationsACC - Accident
Page 113 and 114: Measure Description CalculationShar
Page 115 and 116: Financial Position Financial Perfor
Page 117 and 118: The financial data in the 2011 APR
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?