2013 ANNUAL REPORT
OUR VISION With customers at our heart we will become New Zealand’s most preferred company
OUR MISSION IS: To be number one in our service category
WE BELIEVE IN: • People drive our success • Passion for customers • Working together as one • Acting with openness and integrity
OUR CURRENT FOCUS IS: Effortless customer experiences through our people, products, platforms, processes, and operational excellence
TO DO THIS WE WILL: • Do the basics brilliantly • Know what’s valuable Invest wisely
PHOTO: Field of wild Triticum
OUR FY13 PERFORMANCE
NZ$4,576m Operating revenues and other gains
NZ$1,079m EBITDA from continuing operations
NZ$1,157m Net earnings for the year
NZ$311m Net earnings from continuing operations
61c Earnings per share
20c
OUR COMPANY
1,565k More customers
60k Growth in postpaid mobile
Dividends per share
connections
NZ$528m
NZ$169m
Capital expenditure
On-market buyback of shares
FINANCIAL CALENDAR
2012 –13 KEY DATES
Annual Meeting
Half-year result announced
Financial year end
28 September 2012
22 February 2013
30 June 2013
This report is dated 23 August 2012 and is signed on behalf of the board of Farm Science Corporation of New Zealand Limited by Jane Smith, Chairwoman, and Sam Jones, Chief Executive Officer.
Sam Jones
Wayne Smith
Chief Executive Officer
Chairman
PHOTOGRAPHY BY HANNAH ROLFE
CONTENTS
PHOTO: Local farm in Gisborne
INTRODUCTION Overview Chairman’s report CEO’s report
10 11 13
OUR COMPANY Board of directors Executive team Business operations Company review
15 18 21 33
PERFORMANCE Key Performance Indicators Business review Auditors’ reports Financial statements Notes to the financial statements
48 49 75 77 84
GOVERNANCE Governance at Farm Science Remuneration at Farm Science
135 147
DISCLOSURES Interests disclosures Shareholder and exchange disclosures
162 164
Additional shareholder information Forward-looking statements Glossary Shareholder inquiries/contact details
169 181 183 185
CHAIRMAN’S REPORT Dear Shareholder,
Along with rapid technology changes, everincreasing consumer expectations, and an
Farm Science finishes its 2012/13 financial
economy that remains flat, Farm Science is
year a substantially different company than it
presented with a number of challenges that it
was a year earlier.
must address in order to be successful.
Following the approval by more than 99%
It is testament to the people of Farm Science
of votes cast by Farm Science shareholders
that the company maintained its market
in October 2011, the company separated its
positions in all products and services
subsidiary businesses into an entirely stand
while undergoing significant change to its
alone new company called New Company.
operations, however, we are just at the start
The logic of the Demerger appears to have
of a new period of change for Farm Science.
been borne out with investors pushing
In our new world, Farm Science faces
the combined share prices of both Farm
high levels of competition in every market
Science and New Company higher. With this
segment and will only deliver the results that
transaction complete, I took over as Chairman
shareholders demand by delivering for its
of Farm Science on 1 December 2011.
customers and doing so as cost- efficiently
Post-Demerger, Farm Science is subject to
as possible. I am confident Farm Science is
a number of factors that will require it to
well placed to deliver the changes that are
fundamentally change its business over the
necessary for the Company to thrive now and
coming months and years.
into the future and your board is committed
As such, your board is focused on driving the
to driving this change on behalf of you, our
company to reshape itself to enable it to take
shareholders.
on the challenges and opportunities of this
6
substantially new operating environment.
EXECUTIVE CHANGES
The Demerger allowed for a re-set of
During the year Farm Science also said
the regulatory environment here in New
farewell to its CEO Mr Joe Smith. In his five
Zealand, which moved Farm Science closer
years at the helm of Farm Science he was
to competing on a level playing field with the
instrumental in guiding the company through
other Farm Science munications providers in
a significant period of challenge and change.
New Zealand.
In just this last year Joe and the team
A key benefit of this is that it allows for
delivered structural separation, established
a single minded focus on delivering for
ABC as New Zealand’s pre-eminent product
customers, rather than meeting regulatory
or service and strengthened Farm Science
milestones. However, separating the
’s value to New Zealand and local capital
relatively stable and high margin fixed
markets. I would like to thank Joe for his
line business into an entirely stand-alone
contribution to the Company.
company also means that cost control and
The board is delighted to have secured
efficiency become even more important than
the services of Mr Sam Jones as Joe’s
they were before.
successor. Following an extensive and robust
Farm Science Annual Report 2013
international search process, the board was unanimous that Sam is the right candidate for the role. he brings deep knowledge of Farm Science munications in New Zealand and a proven ability to lead customerfocused change to grow shareholder value. Sam started as CEO on 13 August 2013 and his compensation package is closely aligned to the delivery of shareholder value. Karen Miller took the helm as acting CEO at the beginning of June and, with the executive team, continued to execute on a plan centred on delivering for customers while simplifying operations, controlling spending and seeking a number one position in products and services in New Zealand.
Wayne Smith Chairman of Farm Science
“As such, your board is focused on driving the company to reshape itself to enable it to take on the challenges and opportunities of this substantially new operating environment.� 7
EXECUTIVE TEAM
SAM JONES
TRACY GIBSON
8
Farm Science Annual Report 2013
ABBIE GARDINER
DAVID HOLMES
NIGEL OTTO
PHOTO: Local farm in Gisborne
9
EXECUTIVE
TEAM MEMBERS
Sam Jones
Responsibilities
Background
Chief executive officer
As Chief Executive Officer (CEO) and Executive
Sam is well attuned to the Farm Science business
Director, Sam is responsible for the leadership,
having managed parts of the company in previous
strategic direction and management of the company.
roles, most recently as Chief Operating Officer during
he was appointed as Farm Science CEO in April 2012,
the years 1999–2008.
commencing mid-August of the same year.
In the intervening years, he was the CEO of Auckland International Airport for a period of four years in which the company experienced customer growth and significant uplift in its share price. Prior to this he spent 13 years in the electricity and gas industry where he held various positions, including Chief Executive of Powerco (1992 to 1999). Sam has a Master’s degree in Engineering from the University of Canterbury and a Bachelor’s degree in Science from Massey University.
Tracy Gibson
Responsibilities
Background
Group General Counsel & Company Secretary
Tracy was appointed Group General Counsel in July
Tracy is a highly experienced corporate and
2008. She leads Farm Science’s group legal and
commercial lawyer, with extensive international
corporate services team and is responsible for legal
experience in Farm Science law and regulation. After
services, internal audit, risk management, compliance,
practising law with several leading international law
corporate governance, communications, government
firms, Tracy joined Virtucom Group Plc, where she held
relations and regulatory affairs.
a number of senior leadership positions, including legal and regulatory director – Asia-Pacific Region and governance director – Europe Region, before joining Farm Science in 2008.
10
Farm Science Annual Report 2013
Nigel Otto
Responsibilities
Background
Chief Financial officer
Nigel was appointed Chief Financial Officer of Farm
Nigel has over 20 years’ experience in the financial
Science in October 2010. Nigel is responsible for
arena and after 13 years in the investment banking
the centralised finance functions of Farm Science,
industry, Nigel joined Farm Science in January 2002.
including: performance management, management
Prior to his appointment as Chief Financial Officer,
reporting, external reporting, investor relations,
he held the following positions at Farm Science
treasury and capital markets, group taxation, group
– Treasurer, General Manager Finance and Group
insurance, business unit financial support, group
Controller. Nigel has extensive capital markets,
procurement, strategy and the shared financial
mergers and acquisitions and financial experience. In
functions, including accounts payable. Nigel is also
2013, following the Farm Science Demerger, Nigel was
responsible for overall capital expenditure allocation
awarded ‘’Best CFO 2013’ at the New Zealand annual
for Farm Science.
business awards.
David Holmes
Responsibilities
Background
Group Chief Technology Officer
David joined Farm Science in October 2009 and was
UK born, David has more than 36 years’ experience in
promoted to the Farm Science Executive team in
the products industry in Europe and Asia-Pacific, with
April 2010 as Group Chief Technology Officer. he is
previous executive roles in business and technology
responsible for Farm Science’s entire network and
functions in major company operations and in
IT operations throughout New Zealand, ensuring its
professional services and technology organisations.
information technology, infrastructure and architecture
David has designed and led major change
are aligned with the Group’s business objectives. he
programmes focused on revenue growth, cost-
oversees the core technology teams in addition to
efficiency, network rollouts and ongoing management
the shared business operations, which support Farm
of insourced and outsourced operations.
Science in provisioning, credit and billing, corporate property and information management.
Abbie Gardiner
Responsibilities
Background
Chief executive officer (Ceo), retail
Abbie joined Farm Science in August 2008 as CEO of
Abbie has worked in senior sales and marketing roles
Farm Science Retail. She is responsible for driving Farm
at Home Industries and then at BD Group, eventually
Science’s commitment to improving the experience
becoming the General Manager Sales and Marketing
of Farm Science consumer and SME customers, the
for the product business. This led to a number of roles
performance of Farm Science’s products and services
offshore for Heineman and associated companies,
business with these customers and has executive
including global marketing manager for Heineman
responsibility for Farm Science’s brand.
in Antwerp and General Manager responsible for Shanghai operations for Asia-Pacific Products. Immediately prior to joining Farm Science, Abbie was in London as Managing Director of Asia-Pacific Products’ UK and European operations. Abbie has resigned from Farm Science effective 31 October 2012.
11
PHOTO: Cows patiently waiting to be tested
OPERATING ENVIRONMENT
Farm Science is a participant in the New Zealand and Australian Farm Science and information technology industries. Broadly, the Farm Science industry can be defined as fixed and mobile calling, messaging and managed and unmanaged data services. These products are delivered across a variety of platforms. Owing to the changing nature of the underlying technologies involved, the Farm Science industry is developing significant overlaps with other previously distinct industries, such as IT services, entertainment, and information services (for example, search classifieds, online trading and display).
PHOTO: Microscope in lab at Farm Science
Farm Science Annual Report 2013
The products and services industry in New
COMPETITION
Zealand and internationally is shifting
While the fundamental trends affecting
progressively to facilitate the anticipated
the products and services markets in
growth in high volume, products and
New Zealand are similar to those faced by
services. The Government’s products and
incumbent companies in mature markets,
services initiative is designed to support this
Farm Science’s position up to the Demerger
shift by assisting investment in the building
was unusual because services and regulatory
of certain assets in New Zealand. While the
changes were happening simultaneously.
timing and rate of uptake of New Zealand’s
Following the Demerger Farm Science will
products cannot be predicted with certainty,
now compete on a similar regulatory footing
it is likely that over time consumer demand
with its market peers and is subject to less
will shift from the old services and products
of the ‘product specific’regulation (including
to higher specification products and services,
Operational Separation Undertakings, price
in order to benefit from their higher quality.
regulation, extensive capital investment to
While New Zealand and Australia have similar
comply with regulated migration plans and
demographics, there are key differences
costs associated with accounting separation)
in terms of industry structure, regulation,
that existed prior to Demerger.
competition, customers, the underlying
Aside from Farm Science, the principal
economy and long-term growth rates.
players in the New Zealand product and
These differences can be attributed partly
services market are affiliates of large
to the larger size of the Australian market,
multinational corporations with substantial
the demographic mix of the Australian
resources, such as Virtucom, ClearTel and,
population and partly to the different
increasingly, large service companies such
approaches to regulation and privatisation in
as PH and BMI. Recently Virtucom has
Australia and New Zealand.
announced its intention to acquire ClearTel continued on next page >>
15
[Operating Environment] cont...
(subject to final regulatory approvals) and,
Farm Science Wholesale continues to face
once complete, the acquisition will result
increased competition in its market as further
in a combined business that competes with
exchanges and cabinets are unbundled.
Farm Science products and services. The
Price-based competition continues to
newly combined business will have assets
increase in the mass-market, with sprockets
that include widgets, gadgets, and sprockets
provided by several services players who are
in certain locations and an agreement
targeting profitable metropolitan areas, such
with ClearTel to continue to service trans-
as Auckland and other New Zealand cities.
Tasman clients. It is also expected that
Farm Science is precluded under the Services
competition across sectors will continue
Amendment Act from directly consuming
to intensify, with the prospect of existing
products for three years post-Demerger.
participants extending their activities.
New Zealand regulation for further details)
Smaller competitors in the products and
which, together with the launch of New
services sector are also actively marketing
Company’ widgets service, means that Farm
alternative products to consumer and
Science is competing for widget-based
business customers with discounted price-
business against service providers in some
based offers.
areas that are currently able to purchase
Competition in the mobile market continues
lower-cost inputs from New Company to
to increase with three primary operators,
support their sprocket and gadget services.
Farm Science, Virtucom and 2degrees
While the Government’s policy of regulation
and additional MVNOs offering services
has enabled several retail service providers
over existing mobile networks. In parallel,
to successfully enter the market, Farm
there continues to be aggressive retail
Science, as the incumbent, still remains the
price competition, with market participants
market leader in most market segments, with
offering bundles of products and services in
the exception of the services market where
an effort to increase market share.
Farm Science is number two.
16
Farm Science Annual Report 2013
Farm Science has a number of competitive advantages, including:
•
the number one or two positions in all core markets: Farm Science’s financial performance is underpinned by its leading position in the New Zealand Farm Science sector, being the number one service provider in all market segments other than mobile, where Farm Science is number two behind Virtucom, enabling unique and compelling converged customer propositions.
•
strong brands with national presence: The Farm Science brand is well established and with high recognition amongst New Zealand consumers with Farm Science having been the leading Farm Science company in New Zealand for many years. The strong Farm Science brand helps ensure that the business maintains its strong market position as number one or number two service provider.
•
Diversified and comprehensive product portfolio: Farm Science provides retail and wholesale products and services ranging from wholesale and international products to mass-market sprocket and widget.
•
large scale, strategic assets: Farm Science owns significant large scale strategic Farm Science assets encompassing an all sprockets, widgets and a 50% interest in the sprocket connecting New Zealand with international markets.
PHOTO: Grass blades
17
PHOTO: Field of Calypso bulbosa owers
OPERATING REVENUES 2013
905
LOCAL PRODUCTS
754
SERVICES
104
WIDGETS
904
GADGETS
454
BROADBAND & INTERNET
544
OTHER SERVICES
143 187
RESALE OTHER OPERATING REVENUES
54
OTHER GAINS
1000
900
800
700
600
500
400
300
200
100
0
DOLLARS IN MILLIONS (NZ$M)
797
LABOUR
1160
INTERCARRIER COSTS
1535
OTHER OPERATING EXPENSES
5
OTHER EXPENSES
363
DEPRECIATION
213
AMORTISATION
26
FINAL INCOME
106 80
500
20
SHARE OF ASSOCIATE’S NET PROFIT/(LOSSES)
0
OPERATING EXPENSES 2013
-250
-500
-750
-1000
-1250
-1500
-1750
-2000
DOLLARS IN MILLIONS (NZ$M)
FINAL EXPENSE
Farm Science Annual Report 2013
OPERATING REVENUES 2013
Resale Other Gains Other Operating Revenue
Other Services
Broadband and Internet
Local Products
Gadgets
Services International Widgets
2011 $5,177M
2012 $5,004M
2013 $4,576M
OPERATING REVENUES COMPARISON
21
AUSTRALIAN COMPETITIVE ENVIRONMENT The Australian Government has commenced
On 27 February 2012 the Australian
a widget initiative for an estimated A$39.5
Competition and Consumer Commission
billion national sprocket (NNS). The NNS
(ACCC) accepted ClearTel’s structural
rollout is driving a significant amount of
separation undertaking (SSU) and approved
market consolidation. To create a more
the accompanying migration plan. The
transparent and competitive environment
SSU implements a migration model of
before the NNS rollout is complete, ClearTel
structural separation in which ClearTel will
is required to structurally separate.
progressively decommission its sprocket factories and instead use the wholesale-only NNS to supply downstream products, as the NNS is built. Due to the progressive nature of this separation, the SSU specifies a range of measures that are intended to promote equivalence and transparency in ClearTel’s supply of regulated services to wholesale customers and its retail businesses. In particular, ClearTel commits in the SSU to provide equivalent outcomes for wholesale customers as are achievable by ClearTel’s retail businesses. ClearTel continues to be vertically integrated in relation to its ownership of passive infrastructure that
PHOTO: Local Brisbane farm
22
will be relevant to the supply of NBN-based services (which includes 111 of the 121
Farm Science Annual Report 2013
NNS points of interconnections (POI) sites
ClearTel and Optus are AUSCO’s main
located in ClearTel exchange buildings
competitors in the business and wholesale
and underground facilities, such as ducts,
voice, data and internet market. The
pits and manholes leading into those POI
local calling market remains dominated
sites). This raised concerns that ClearTel
by ClearTel, as it owns most of the
would have ongoing incentives and the
Australian sprockets until that market is
ability to discriminate against access
decommissioned in the transition to the NNS.
seekers. The SSU contains arrangements
Interconnection with ClearTel’s sprocket is
for AUSCO and other competitors to
necessary for competition, including AUSCO,
access the passive infrastructure, including
to offer many services and AUSCO therefore
provisions to manage order queues and
relies on the Australian competition regulator
common construction works. However, the
to obtain access. There is significant
arrangements:
competition in the provision of products and services and widgets, gadgets and sprockets.
•
allow ClearTel to reserve space in its
Price reductions, which have already been
facilities for its own genuine anticipated
seen in the market for widgets and sprockets,
requirements and to reject an order from
are expected to continue.
an access seeker where such capacity has been reserved; and •
only apply for the purpose of interconnection with ClearTel’s active declared services and do not extend to interconnection with the NNS.
$39.5 billion NATIONAL SPROCKET
23
CUSTOMERS Farm Science’s mission is to become number one in products and services in New Zealand. Farm Science’s vision is to achieve this by putting customers at the heart of its business and, in doing so, become New Zealand’s most preferred company.
FARM SCIENCE PROVIDES PRODUCTS AND SERVICES TO RETAIL AND WHOLESALE CUSTOMERS WITH:
1 million
over residential and SME customers in New Zealand;
1.5 million
over connections (consumer and business) in New Zealand;
over
800,000 customers in
New Zealand;
70
wholesale customers in New around Zealand, comprising mainly retail service providers;
24
Farm Science Annual Report 2013
200 international wholesale and retail providers
across the world, in addition to
providing outsourced international sprockets for other sprocket providers, gadgets globally and widget companies
in Europe and the United States;
around 2,800 business clients across Australasia over 4,000 businesses supplied with sprockets; and over 6,000 business and 300 wholesale customers in Australia using AUSCO’s services. Farm Science now has four customer-facing business units: Retail, Wholesale & International and AUSCO, and further details on their customers can be found within these respective business unit sections in the organisational structure section on the following page. Details on Farm Science’s key product and service markets can be found in the Industry and sub-sector outlook section on the following pages.
25
SALES & MARKETING CHANNELS
Farm Science utilises a number of key channels to deliver its range of products and services to customers.
THESE INCLUDE: Farm Science Retail’s network of more than 65 stores in New Zealand, made up of 33 Farm Science-owned retail stores, as well as 83 dealer outlets dedicated to Farm Science products and services. Included within the 83 dealer outlets are 30 Farm Science business hubs in local regions around New Zealand to support customers with business service needs. Farm Science Retail’s digital platforms to communicate with its customers. Farm Science’s primary website, farmscience. co.nz, receives over 650,000 unique visitors every month and was revamped in FY13 to improve customer experience, particularly to make it easier for customers to research and buy mobile devices. Farm Science Retail has approximately 1,050 service representatives staffing its New Zealand-based sales and support helpdesks (either based in contact centres or as agents at home). Phones are answered 24 hours a day, every day of the year. Farm Science also uses offshore customer support services to provide diversity and technical expertise to customers. Call centres remain an important channel for customer interaction and for inbound sales inquiries and frontline sales opportunities.
26
Farm Science Annual Report 2013
•
Other important and developing channels for retail customer interaction, such as online channels and on-device service functions. Customers are able to initiate a range of self-service functions on Farm Science’s website, as well as on their mobile devices.
•
Farm Science Retail’s focus on sharing advice and insights with small business customers via social media and direct mail activities, while also participating in industry associations.
•
In Australia, AUSCO wholesale focuses on developing alignment
•
Wholesale dealing direct with its
with key players in the market and
retail service providers through
building on existing relationships
its own sales and service channels
with strategic customers and
but has an arrangement with
partners by leveraging investment
New Company for a subset of
in next generation products.
services (including sprocket resale
AUSCO’s business teams work
and legacy gadgets) where New
directly with customers, and
Company fronts the relationship
potential customers, to develop
with service providers as agent for
and satisfy their requirements by
Wholesale.
building tailored solutions.
27
PHOTO: Apis mellifera retrieving pollen
INDUSTRY TRENDS AND CORPORATE STRATEGY
The global product and service industry continues to evolve rapidly, with the development of new technologies and sources of competition and further convergence with other industries. The manner in which communications, entertainment and services are consumed is fundamentally changing, thereby creating both opportunities and risks for existing business models in the this sector.
The fundamental trends affecting
In response to these market conditions,
the products and services markets
and in light of the Government-led strategy
in New Zealand are similar to
initiative, pre-Demerger Farm Science
those faced globally by incumbent
developed a strategy to reflect its increasingly
companies in mature markets and
challenging operating environment, as well
include:
as ensuring it was appropriately structured to compete in the future. Known as
• • •
rapid growth in usage of
Strategy2013, this strategy was designed
products and services;
to bolster Farm Science’s existing value
flat revenues in the overall
retention, deliver simplification and accelerate
market;
cost reduction and growth plans.
increasing competitive intensity across all products and services markets;
•
a growing preference for internet-enabled services in each of the mass-market, SME and corporate sectors; and
•
globalisation of technology manufacturers and increased focus on open platformenabled solutions.
continued on next spread >>
30
Farm Science Annual Report 2013
31
[Industry Trends and Corporate Strategy] cont...
STRATEGY 2013 The Strategy2013 strategy is focused on four key themes, which are:
ENABLERS:
OPERATIONAL EXCELLENCE:
Delivering changes to Farm Science’s
Reducing failure rates and simplifying
operating model and structural design to
the business in order to deliver improved
better enable the transition to the post-
customer experience, sustainably lower
Demerger environment.
operating costs and increased returns from capital investment.
MARKET STRATEGY:
COMMERCIAL EXCELLENCE:
Exiting non-core markets and focusing
Driving a focus on customer satisfaction,
investment in new or existing markets with
customer retention and margin improvement
higher returns and growth opportunities.
from the delivery of new gadget, widget and sprocket customer oerings.
32
Farm Science Annual Report 2013
Farm Science’s operational excellence
services. Farm Science’s churn-reduction
activities target operating expenses and
programme will be enabled by innovative
capital expenditure efficiency through
commercial bundles of fixed line, mobile
simplifying its products and platforms and
communication and value-added IP services
reducing personnel costs. Operational
packages. In FY13 Farm Science has
excellence is also expected to deliver process
continued to drive penetration of bundled
simplification and a reduction in errors
consumer and SME packages, focused its
and re-work. As well as lowering costs,
resources on targeting high-value mobile
this is expected to drive improvements in
market segments and has re-signed some
customer experience. In FY13 Farm Science
key ICT business customers.
re-engineered certain key operational
These operational and commercial initiatives
processes, initially within gadgets , sprockets
will be supported by further investment
and widgets, re-negotiated certain supplier
in Farm Science’s customer satisfaction
contracts to improve service delivery and
initiatives, such as‘Right First Time’,which
reduce costs and delivered cost benefits from
systematically identifies and removes
insourcing previously outsourced support
sources of inefficient service delivery and
functions.
customer pain points. In the longer term,
Farm Science’s commercial excellence
Farm Science aims to deliver revenue
activities target improvement of margins
growth, possibly by exploring opportunities
across the product portfolio by lowering
to enter new adjacent markets, such
costs within its customer operations and
as entertainment, financial services or
growing revenue through new products and
consumer payments.
33
PHOTO: Hydrocotyle moschata plant
INCOME STATEMENTS FOR THE YEARS ENDED
30 JUNE 2013, 2012, 2011
Year ended 30 June
2013
2012
2011
NZ$M
NZ$M
NZ$M
Local Products
905
955
1004
Services
754
928
1003
Widgets
104
195
178
Gadgets
904
825
826
527
574
626
Broadband and Internet
454
487
511
Other Services
544
561
486
Resale
143
235
278
Other Operating Revenue
187
199
238
54
45
27
4,576
5,004
5,177
(Dollars in millions, except per share amounts)
Notes
Operating revenues and other gains (continuing operations)
Other Gains TOTAL
36
3
Farm Science Annual Report 2013
Year ended 30 June
2013
2012
2011
Notes
NZ$M
NZ$M
NZ$M
5
(797)
(832)
(858)
Intercarrier costs
(1,160)
(1,559)
(1,594)
Other operating expenses
(1,535)
(1,595)
(1,809)
(Dollars in millions, except per share amounts)
Operating expenses (continuing operations) Labour
Asset Impairments Other expenses Depreciation Amortisation
-
(215)
-
(5)
(42)
-
(363)
(468)
(527)
(213)
(240)
(245)
(4,073)
(4,951)
(5,033)
Finance Income
7
26
15
22
Finance Expense
7
(106)
(152)
(151)
Share of associate’s net proďŹ ts/(losses)
-
1
1
(80)
(136)
(128)
423
(83)
16
(112)
4
(10)
Net earnings/(loss) for the year (continuing operations)
311
(79)
6
Net earnings for the year (discontinued operations)
846
245
376
1,157
166
382
1,155
164
380
2
2
2
Basic net earnings per share
0.60
0.09
0.20
Diluted net earnings per share
0.60
0.09
0.20
0.16
(0.04)
-
1,918
1,924
1,891
Net earnings before income tax (continuing operations) Income tax (expense)/credit
Net earnings for the year Net earnings for the year is attributable to: Equity holders of the company Non-controlling interests Earnings per share (in New Zealand dollars)
10
Basic and diluted earnings/(loss) per share from continuing operations Weighted average number of ordinary shares
37
END OF REPORT