Statement of Forecast Cash Flow

For the year ending 30 June

Cash Flows from Operating Activities

Cash received from customers

Cash paid to suppliers & employees Interest received

Net Cash Flow from Operating Activities

Cash Flows from Investing Activities

Acquisition of capital work in progress Acquisition of property, plant & equipment Acquisition of intangibles

Net Cash Flows from Investing Activities

Forecast 2021/22 $000

Budget 2022/23 $000

213 85 (62,565) (72,652) 708 2,323

(61,644) (70,244)

(789,239) (944,947) (276) (9,764) (241) (103)

(789,755) (954,814)

Cash Flows from Financing Activities

Proceeds from issue of share capital

Net Cash Flows from Financing Activities

856,000 1,028,000

856,000 1,028,000

Net Increase/(Decrease) in cash & cash equivalents 4,600 2,942 Cash & cash equivalent at beginning of period 18,374 22,974 Cash & cash equivalent at end of period 22,974 25,916

Reporting Entity

City Rail Link Limited (‘CRL Ltd’ or the ‘Company’) is a Crown Entity, registered under schedule 4A of the Public Finance Act, and is domiciled in New Zealand. The Company was incorporated on 13 April 2017. CRL Ltd is jointly owned by the Crown, and Auckland Council.

The Company’s purpose is to govern and manage the delivery of the Project.

CRL Ltd commenced operations with effect from 1 July 2017.

Basis of Preparation

These prospective financial statements have been prepared for the purpose of providing information on CRL Ltd’s future operating intentions and financial position, against which it must report and be formally audited at the end of the financial year.

These prospective financial statements have been prepared:

• In accordance with the Crown Entities Act 2004, which include the requirement to comply with New

Zealand generally accepted accounting practice (NZGAAP) and the Companies Act 1993 • In accordance with PBE FRS42 and NZGAAP as it relates to prospective financial statements • The Company reports under Tier 1 Public Benefit

Entity (PBE) standards and as such the prospective financial statements have been prepared on that basis • In New Zealand ‘000 Dollars ($), which is the

Company’s functional currency, unless separately identified • The information in these financial statements may not be suitable for another purpose.

Statement of Significant Underlying Assumptions

Funding from the Sponsors Funding from the Sponsors is based on the expenditure programme for the Project, assuming sufficient funding is available for the Project. Funding requirements are assessed monthly and the funding application to the Sponsors and approval by the Sponsors is completed before the beginning of every quarter. For successful funding applications, the majority of funds are received at the beginning of the new quarter. Personnel costs Forecast costs assume the current organisational structure will be in place throughout the period. A proportion of personnel cost which is directly attributable to the Project is capitalised and recognised as Capital Work in Progress in the Statement of Forecast Financial Position.

Capital CRL Ltd is undertaking a programme of capital spending aimed at delivering the CRL project. Projected costs and timing of expenditure are based on plans and quotations that were current when these forecasts were prepared.

Opening equity Estimated opening equity assumes 2021/22 net deficit of $394.5 million. This impacts on estimated amounts of cash in hand and net assets.

Significant Accounting Policies

The financial statements contained in this document are prospective and, by their nature, contain assumptions which may lead to material differences between the prospective financial statements and the actual financial results prepared in future reporting periods. CRL Ltd has undertaken a review of its financial models, and believes they remain fit for purpose in assisting CRL Ltd in preparing prospective financial statements. The prospective statements for CRL Ltd are subject to significant management judgement relating to the timing and quantum of the investments, and the prospective information reflects the best information available to management.

Project Funding

Project costs, which are capital in nature, create an asset for CRL Ltd as well as operating costs for its day-to-day running and management and are funded by a share issue to the Crown and Auckland Council. This funding is not recognised as revenue in the forecast financial statements.

Rental Revenue

Other revenue generated by CRL Ltd is from rental income from properties required to enable the build but not yet decommissioned and will be recorded as revenue.

Interest Income

Interest revenue is calculated on a proportion basis for the surplus cash balances throughout the forecast.

General Expenses

General expenses include costs such as operating leases, rates, directors’ fees, telecommunications, and other office operating costs.

Foreign Currency Transactions

Foreign currency transactions are translated into NZ$ (the functional currency) using the spot exchange rates at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currency are recognised in the surplus or deficit.

Goods and Service Tax

Items in the financial statements are presented exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

Income Tax

CRL Ltd is a Public Authority in accordance with the Income Tax Act 2007 and consequently is exempt from the payment of income tax. Accordingly, no provision has been made for income tax.

Property, Plant & Equipment

Property, plant, and equipment consists of land, building, subterranean land, furniture and fittings, computer hardware, software, and office equipment.

Recognition and measurement

Property, plant, and equipment is measured initially at cost. Cost includes expenditure that is directly attributable to the acquisition of the items. The cost of an item of property plant and equipment is recognised only when it is probable that future economic benefit or service potential associated with the item will flow to CRL Ltd, and if the item’s cost can be measured reliably.

The majority of capital expenditure will remain as ‘Capital Work in Progress’ for the duration of the Project.

Work in progress is recognised at cost less impairment and is not depreciated.

Depreciation

Land, Buildings and Subterranean Land are held for the development of rail tunnels and stations and are not depreciated. All other assets are depreciated on a straight- line basis over the useful life of the asset. Depreciation is charged at rates calculated to allocate the cost or valuation of the asset less any estimated residual value over its remaining useful life:

The estimated useful lives of property, plant and equipment are as follows: