Financial Statements Infratil Annual Report 43 Statement of Financial Performance For the Year Ended 31 March 2008 Consolidated Parent 2008 2007 2008 2007 Notes $Millions $Millions $Millions $Millions Operating revenue 1,346.7 655.1 89.7 62.5 Dividends 9.1 3.8 41.7 40.0 Equity accounted earnings of associates - 31.0 - - Total revenue 5 1,355.8 689.9 131.4 102.5 Depreciation 67.3 43.7 - - Amortisation of intangibles 12.0 4.5 - - Employee benefits 192.5 154.0 - - Other operating expenses 6 847.4 378.8 23.2 30.3 Total operating expenditure 1,119.2 581.0 23.2 30.3 Operating surplus before derivatives, realisations and impairments 236.6 108.9 108.2 72.2 Net (loss)/gain on financial derivatives - ineffective energy derivatives (9.4) 22.7 - - Net gain/(loss) on financial derivatives - investments 12.3 - - - Net investment realisations and (impairments) 5 (15.4) 43.7 - (0.9) Results from operating activities 224.1 175.3 108.2 71.3 Financial income 8 13.5 6.0 0.2 0.9 Financial expenses 8 162.3 82.5 65.2 47.5 Net financing expense 8 148.8 76.5 65.0 46.6 Surplus before taxation 75.3 98.8 43.2 24.7 Taxation expense 15 22.6 17.4 - - Net surplus for the year 52.7 81.4 43.2 24.7 Net surplus attributable to the parent entity (1.7) 68.2 43.2 24.7 Net surplus attributable to the minority interest 54.4 13.2 - - Earnings before interest, tax, depreciation, amortisation, fair value movements of financial instruments, realisations and impairments (EBITDAF) 315.9 157.1 108.2 72.2 Earnings per share cps cps Basic (cents per share) (2007 adjusted for share split) 34 (0.4) 15.8 Diluted (cents per share) (2007 adjusted for share split) 34 (0.3) 14.9 The accompanying notes form part of these financial statements. 44 Picking the trends... Statement of Changes in Equity For the Year Ended 31 March 2008 Consolidated Parent 2008 2007 2008 2007 Notes $Millions $Millions $Millions $Millions Net surplus attributable to: - Parent entity shareholders (1.7) 68.2 43.2 24.7 - Minority shareholders in subsidiary companies 54.4 13.2 - - Currency translation reserve movements attributable to: - Parent entity shareholders (10.9) (14.8) - - - Minority shareholders in subsidiary companies (0.1) (0.1) - - Movement in revaluation reserve: - Parent entity shareholders 9.8 180.5 - - - Minority shareholders in subsidiary companies 8.0 (0.8) - - Movement in fair value reserves: - Parent entity shareholders (144.3) (0.3) - - - Minority shareholders in subsidiary companies - - - - Movement in cash flow/other reserves: - Parent entity shareholders 4.6 (11.8) - - - Minority shareholders in subsidiary companies 8.9 0.1 - - Total recognised directly in equity (124.0) 152.8 - - Total recognised directly in statement of financial performance 52.7 81.4 43.2 24.7 Total recognised revenues net of expenses for the year (71.3) 234.2 43.2 24.7 Shares issued 7.0 13.3 7.0 13.3 Rights issue proceeds from partly paid shares 88.0 - 88.0 - Net proceeds from sale of shares acquired through acquisition of subsidiary - 7.2 - - Total contributions from owners 95.0 20.5 95.0 13.3 Share buyback - (8.2) - (8.2) Minority interest dividends (50.9) (25.9) - - Parent company dividends paid in cash on ordinary shares (28.6) (27.4) (28.6) (27.4) Total distributions to owners (79.5) (61.5) (28.6) (35.6) Outside equity interest arising on establishment and stepped acquisition of subsidiaries (0.2) 620.6 - - Movements in equity for the year (56.0) 813.8 109.6 2.4 Equity at the beginning of the year Parent entity interest 809.4 602.7 259.6 257.2 Minority interest in subsidiary companies 717.0 109.9 - - 1,526.4 712.6 259.6 257.2 Equity at the end of the year Parent entity interest 733.3 809.4 369.2 259.6 Minority interest in subsidiary companies 737.1 717.0 - - 12 1,470.4 1,526.4 369.2 259.6 The accompanying notes form part of these financial statements. Infratil Annual Report 45 Statement of Financial Position As at 31 March 2008 Consolidated Parent 2008 2007 2008 2007 Notes $Millions $Millions $Millions $Millions Cash and cash equivalents 11 255.2 128.5 5.8 2.6 Trade and accounts receivable 220.6 148.8 7.4 6.6 Derivative financial instruments 22 15.8 24.4 - - Inventories 10 9.9 4.9 - - Income tax receivable 22.7 7.0 1.6 - Current assets 524.2 313.6 14.8 9.2 Property, plant and equipment 20 3,194.2 2,982.8 - - Investment properties 21 67.5 62.3 - - Derivative financial instruments 22 74.1 18.2 - - Intangible assets 16 63.8 58.1 - - Goodwill 16 246.0 181.5 - - Investments 18 212.3 262.5 - - Deferred tax 15 17.3 8.6 - - Investment in subsidiaries - - 99.7 99.7 Advances to subsidiaries - - 1,013.2 905.1 Non current assets 3,875.2 3,574.0 1,112.9 1,004.8 Total assets 4,399.4 3,887.6 1,127.7 1,014.0 Trade payables 351.5 237.5 9.7 24.4 Derivative financial instruments 22 19.5 3.2 - - Bank debt 9 184.0 60.3 - - Income tax payable 13.1 1.5 - - Unsecured subordinated TrustPower bonds 24 50.5 86.2 - - Total current liabilities 618.6 388.7 9.7 24.4 Bank debt 9 862.9 616.3 - - Other liabilities 13 43.4 38.1 - - Deferred tax 15 341.9 368.2 - - Derivative financial instruments 22 1.9 8.5 - - Infrastructure bonds 23 508.8 508.8 508.8 508.8 Perpetual Infratil infrastructure bonds 23 240.0 221.2 240.0 221.2 Wellington International Airport bonds 24 150.0 - - - Unsecured subordinated TrustPower bonds 24 161.5 211.4 - - Non current liabilities 2,310.4 1,972.5 748.8 730.0 Attributable to shareholders of the Company 12 733.3 809.4 369.2 259.6 Minority interest in subsidiaries 12 737.1 717.0 - - Total equity 1,470.4 1,526.4 369.2 259.6 Total equity and liabilities 4,399.4 3,887.6 1,127.7 1,014.0 Net tangible assets per share before minority interest (2007 adjusted for share split) 2.6 2.9 Net tangible assets per share after minority interest (2007 adjusted for share split) 1.0 1.3 For and on behalf of the Board Director Director 19 May 2008 The accompanying notes form part of these financial statements. 46 Picking the trends... Statement of Cash Flows For the Year Ended 31 March 2008 Consolidated Parent 2008 2007 2008 2007 Notes $Millions $Millions $Millions $Millions Cash flows from operating activities Cash was provided from: Dividends 9.1 17.2 41.7 40.0 Interest received 13.5 3.2 0.3 0.8 Taxation received - - - 2.5 Receipts from customers 1,232.5 639.7 - - 1,255.1 660.1 42.0 43.3 Cash was disbursed to: Payments to suppliers (892.1) (507.0) (37.3) (20.3) Interest paid (154.6) (71.2) (66.7) (40.6) Taxation paid (40.7) (16.5) (1.6) - (1,087.4) (594.7) (105.6) (60.9) Net cash inflow (outflow) from operating activities 29 167.7 65.4 (63.6) (17.6) Cash flows from investing activities Cash was provided from: Proceeds from sale of investments 36.2 261.3 - - Proceeds from sale of property, plant and equipment 3.0 - - - 39.2 261.3 - - Cash was disbursed to: Cash outflow for investments (151.8) (108.4) (18.4) (238.3) Cash outflow for investment derivatives (30.6) - - - Purchase of intangible assets (17.7) (2.6) - - Interest capitalised on construction of fixed assets (8.9) - Capitalisation of customer acquistion costs (9.2) (2.7) - - Acquisition of shares in subsidiaries (56.4) (472.6) - - Purchase of property, plant and equipment (274.6) (153.4) - - (549.2) (739.7) (18.4) (238.3) Net cash (outflow) from investing activities (510.0) (478.4) (18.4) (238.3) Cash flows from financing activities Cash was provided from: Proceeds from issue of shares 95.0 1.0 95.0 1.0 Net proceeds from sale of shares acquired through acquisition of subsidiary - 7.2 - - Net proceeds from re-issue of treasury stock - 12.3 - 12.3 Grants received - 8.2 - - Bank borrowings 587.5 285.8 - - Issue of bonds 169.4 248.4 18.8 248.4 851.9 562.9 113.8 261.7 Cash was disbursed to: Repay bank debt/subordinated (217.2) (13.8) - - Repay TrustPower bonds (86.2) - - - Infrastructure bonds issue expenses - (5.8) - (5.8) Share buyback - (8.2) - (8.2) Dividends paid to minority shareholders in subsidiary companies (50.9) (25.9) - - Dividends paid to parent company shareholders (28.6) (27.4) (28.6) (27.4) (382.9) (81.1) (28.6) (41.4) Net cash inflow from financing activities 469.0 481.8 85.1 220.3 Net increase/(decrease) in cash 126.7 68.8 3.2 (35.6) Cash balances at beginning of year 128.5 59.7 2.6 38.2 Cash at end of year 255.2 128.5 5.8 2.6 The accompanying notes form part of these financial statements. Infratil Annual Report 47 Notes to the Financial Statements For the Year Ended 31 March 2008 (1) ACCOUNTING POLICIES In respect to assets held at cost, judgements must be made about whether costs incurred relate to bringing an asset to (A) Basis of preparation working condition for its intended use, and therefore are These are the Company’s first annual NZIFRS financial appropriate for capitalisation as part of the cost of the asset.