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YVW AR Cover Section (Page 1) Yarra Valley Water ABN 93 066 902 501 Lucknow Street Mitcham Victoria 3132 Private Bag 1 Mitcham Victoria 3132 DX 13204 The Sustainability Journey Telephone: (03) 9874 2122 Facsimile: (03) 9872 1353 For Further Information Call us on 131 721 visit our web site www.yvw.com.au or email us at [email protected] For language assistance call TIS 131 450. Y arra Valley Water arra Valley The Sustainability Journey Annual Report 2002–03 Annual Report 2002–03 Contents 2 Our Journey 54 Culture 3Chairman’s Report 55 High Performing Business Culture 9 Highlights for 2002–03 56 Employees 10 Managing Director’s Statement 61 Occupational Health and Safety 13 Our Business at a Glance 62 Service Providers and Contractors 15 Summary of Long-term Targets and Our Strategic Intent 64 Stakeholders 16 Environment 67 Community 18 Water Conservation 70 Financial Performance 24 Drought 71 Overview of Financial Performance 26 Sewage Management 76 Operating Expenditure 34 Recycling 78 Ongoing Investment 38 Aurora — Sustainable Urban Development 80 Risk Management 39 Greenhouse Gas Emissions and Energy Use 81 Auditing and Verification 41 Environment Improvement Plan (EIP) 82 Annual Financial Report 42 Customer Service 110 Environment Improvement Plan 44 Water Quality 124 Corporate Governance 46 Service Responsiveness 130 Licensed Area Map 51 Pricing 131 Feedback Form 52 Programs for Customers Experiencing Financial Difficulty 1 2 Our Journey Environment This includes our Chairman’s This section contains the key Report, highlights for the year, environmental challenges we Managing Director’s face, how we are performing Statement and a look at our and our commitments to business including a summary further improvement. of our new Statement of Strategic Intent. Where to find Key Issues Statement of Strategic Intent 12 Environmental Policy 17 Long-term Targets 15 Water Consumption by Customers 19 Non-Revenue Water 22 Impact of Drought on Our Business 25 Sewage Treatment Plants 26 Biosolids 29 Sewer Spills 30 Trade Waste 32 Unsewered Areas 33 Recycling Projects 36 Car Usage 40 This report is printed on 50% recycled paper. 3 4 5 6 Customer Service Culture Financial Performance Appendices We discuss the key issues for This section looks at our This section details our Environment Improvement Plan customers and our response organisational culture, our financial summary, including Corporate Governance to these needs. We also detail people and partners in the our efficiency framework, Licensed Area Map our community involvement community. ongoing investments, and risk and support. management. It also explains Feedback Form how our performance is verified. Water Quality Treatment Our People 56 Financial Summary 73 and Testing 44 Industrial Relations 61 Revenue 74 Water Quality Complaints 45 Occupational Health and Expenses 74 Response to Customer Safety Policy 61 Profit 75 Enquiries 47 Consultative Committees 64 Shareholder Returns 75 System Reliability 49 Stakeholder Consultation 64 Debt 75 Rebates to Customers 50 Yarra Valley Water and the Credit Rating 75 Customer Complaints 50 Plumbing Industry 66 Community Service Sponsorship and Community Obligations 75 Support 67 Management of Debtors 76 Education Program 68 Efficiency Framework 76 Young Achievement Australia 68 Efficiency Targets 77 Work Experience and E Teams 69 Emergency Response 80 Infoxchange, Green PC 69 IT Risk Mitigation 80 Triennial Audit 81 GST Review 81 Annual Financial Report 82 1 Our Journey Yarra Valley Water has to one that aims to do these embarked on a journey things in a way that fully towards a sustainable addresses economic, social business. This is our second and environmental combined Annual Report requirements. Defining what incorporating environment, this transition will mean to social and financial the company is a major reporting. It is a critical time challenge for us, as we for the business, as we embark on a journey make the transition from through the development of a company with a primary our Sustainability Strategy. focus on service There is a lot to be learnt improvement and efficiency along the way… 1 Our Journey Chairman’s Report This is Yarra Valley Water’s second We welcome comments on our Annual Report with a sustainability performance and Annual Report. focus. It is a critical time for the business A feedback form is provided with this as we make the transition from a Report and is also available on our web company with a primary focus on site at www.yvw.com.au. We invite service improvement and efficiency to you to email us at any time with one that aims to do these things in a comments ([email protected]) or call way that fully addresses economic, our general enquiries line on 131 721 social and environmental requirements. with any questions relating to our Defining what this transition will mean to business. the company is a major challenge for us, The past year has been an important as we embark on a journey through the one in Yarra Valley Water’s history. Peter development of our Sustainability Harford, our Managing Director did not Strategy. There is a lot to be learnt Alan Cornell, Chairman seek renewal of his contract after eight along the way. years leading the company. Peter was This report reflects our transitional state Managing Director since the company’s and presents a snapshot of Yarra Valley inception in 1995 and his legacy is a Water’s progress towards integrating very strong and enduring customer environmental, social and financial service ethos. We extend our sincere elements of our business, to produce thanks to Peter for his efforts. better outcomes and a better future for The Board appointed Tony Kelly to the our customers and for the environment role of Managing Director in January we all share. It looks forward as well as 2003. Under Tony, the company has reflecting on the past year, reporting on developed its Statement of Strategic our significant challenges, dilemmas, 3 Intent, which replaces the Mission and successes and short-comings, as well Vision. We have chosen to organise as providing a road map for the next our Annual Report 2002–03 around the 12 months and beyond. four elements of our Statement of Feedback on our Annual Report Strategic Intent. Our Journey 2001–02 was sourced through forms I would like to take this opportunity included in the Report. We also engaged to thank my fellow Board Directors an independent consultant to review our for their significant contribution over report. Feedback suggested a need for the last year and extend my thanks to further details regarding our future plans. Yarra Valley Water staff for their Annual Report 2002–03 In this year’s report we have provided continued dedication. clarification of our long-term targets and Statement of Strategic Intent. Both of our external stakeholder groups, … This report reflects our transitional state and arra Valley Water arra Valley the Environmental Consultative should be viewed as a snapshot of Yarra Valley Y Committee and our Customer Consultative Committee assisted Water’s progress towards integrating environmental, with the preparation of this Annual Report, providing comments and input. social and financial elements of our business … Figure 1: Return on Average Assets % Financial Performance The Water Resources Strategy for Our financial results for 2002–03 include Melbourne recommended that the 12 a profit after tax of $64.43 million community reduce their water 10.7% (2001–02: $58.9 million) and dividends consumption by 15% by 2010. Yarra 10 9.6% 9.6% 9.1% 8.7% paid or recommended totalling $58.19 Valley Water already has processes in 8 million (2001–02: $49.2 million). Water place to ensure this target will be met. usage and sewage disposal charges Our actions include reducing demand, 6 were $1.3 million less than our budgeted reducing water lost from our system and 4 figures due to the introduction of Stage recycling treated water where One Water Restrictions. However, appropriate. 2 revenue from developers was stronger The current drought had a big impact than budgeted by $14.8 million and 0 on our business during the year. 1998–99 1999–00 2000–01 2001–02 2002–03 represented a 40.8% increase on the Water conservation became an issue previous year. of increasing importance as Victoria’s I am very satisfied with our governance drought entered its sixth year. Figure 2: Net Profit After Tax $M systems. Yarra Valley Water has an Stage One Water Restrictions were introduced in November 2002 and since 99.9 accredited Quality Management System 100 (ISO9001), Environmental Management then the community in Yarra Valley System (ISO14001) and Hazard Analysis Water’s licensed area has managed to 80 * 68.9 and Critical Control Points (HACCP) save 13,400 Megalitres (ML) of water 64.4 58.9 System. In April 2003, we were subject compared to the expected consumption. 60 57.1 to our triennial systems audit and We wish to thank our customers for their ongoing contribution to water 40 retained our certification. conservation. 4 Environment 20 Of the projects identified under our Yarra Valley Water is committed to 2002–03 Environment Improvement Plan 0 creating water and sewerage services 1998–99 1999–00 2000–01 2001–02 2002–03 (a total of 67 actions) 34 were completed that meet the needs of our customers or achieved, 15 are ongoing, eight were Our Journey and operate within the carrying capacity on target and 10 are behind schedule. of nature. We are working towards The latter results were largely due to Figure 3: Dividends Paid, Payable having the least impact possible on the design and construction delays, and are or Estimated $M environment and we are striving to listed for completion in this year’s become a sustainable water company.
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