Sustainability Report 2006/07Key performance indicators
|
2006/07
|
2007/08
|
||||
|
Target
|
Result
|
Target
|
Result
|
Target met
|
|
| Maintain financial viability | |||||
|---|---|---|---|---|---|
| BEVA (Business Economic Value Added) margin (%) |
-0.7
|
0.5
|
1.1
|
1.8*
|
X
|
| Meet regulated water plan operating expenditure ($M) |
186.8
|
178.6
|
221.1
|
228.0**
|
X
|
| Earnings before interest and taxes
interest cover – actual (times) |
2.9
|
3.0
|
2.3
|
1.9***
|
X
|
| Cash returns to Government (dividend + Tax + Financial Accommodation Levy + Local Govt Rate Equivalent) ($M) |
126.9
|
117.4*
|
145.0
|
114.6****
|
X
|
| Gearing (interest-bearing debt/interest-bearing
debt plus equity) – actual (%) |
43.1
|
41.3**
|
51.2
|
45.1
|
√
|
| Return on equity – actual (%) |
6.0
|
7.1
|
5.1
|
3.4*****
|
X
|
* Target was not achieved due to lower than expected operating profit as a result of lower operating revenue and higher operating expenses.
** Target was not achieved following an $18.3 million reduction in surplus relating to Melbourne Water’s defined benefit superannuation fund.
This expense was not included in the plan. If $18.3 million was excluded from the actual result, the KPI would have been achieved.
*** Target was not achieved due to lower than expected profit before interest and tax of $44.1 million as a result of lower operating revenue
($27.8 million) of which $19.7 million relates to lower water, sewerage and drainage revenue, and higher operating expenses ($10.1 million).
**** Target was not achieved due to the deferral of payment of the interim dividend of $43.6 million in accordance with advice
from the Department of Treasury and Finance. (The target would have been achieved if the interim dividend was paid in April 2008).
***** Target was not achieved due to lower than expected net profit after tax (of $26 million).
This was largely as a result of reduced water and sewerage income, and unplanned superannuation adjustment.