Contact Energy Limited · NZX:CEN
Contact Energy — Investor Presentation (August 2005)
14 slides from Contact Energy's investor presentation, Aug 17, 2005
Slide 1: Adoption of International Accounting Standards
Adoption of International Accounting Standards 17 August 2005
Slide 2: Important Notice
Important Notice • The figures contained in this presentation are Contacts’ current best estimate of the consequences for Contact adopting New Zealand Equivalents to International Financial Reporting Standards • These may be further refined prior to the release of the interim results for the year en
Slide 3: Introduction
Introduction • Contact will adopt International Financial Reporting Standards from 1 July 2005 • 2005 financial year comparatives will be restated • Financial Instruments standards (NZ IAS 32 and 39) will be applied from 1 July 2005 with no restatement of comparatives • Explanation of the major impa
Slide 4: IFRS changes financial reporting but not the underlying value drivers of our business
IFRS changes financial reporting but not the underlying value drivers of our business • Change in rules by which certain assets and liabilities are recognised on the balance sheet • Consequential change in the timing of profit recognition • There has been no change to our business strategy • Cash fl
Slide 5: Estimated Balance Sheet - 30 June 2005
Estimated Balance Sheet - 30 June 2005 30 June 2005 Previous NZ GAAP NZ IFRS Change $000 $000 $000 Current Assets 294,395 294,395 - Non Current Assets Property, Plant & Equipment 3,891,603 3,891,603 - Goodwill 169,635 178,778 9,143 Other 18,620 18,620 - Total Non Current Assets 4,079,858 4,089,001 9
Slide 6: Estimated Balance Sheet - 30 June 2005
Estimated Balance Sheet - 30 June 2005
Slide 7: Estimated Balance Sheet - 30 June 2005
Estimated Balance Sheet - 30 June 2005
Slide 8: Estimated Income Statement - 30 June 2005
Estimated Income Statement - 30 June 2005
Slide 9: Estimated Statement of Movements in Equity - 30 June 2005
Estimated Statement of Movements in Equity - 30 June 2005
Slide 10: Generation Plant and Equipment
Generation Plant and Equipment • Continue to measure at fair value – as determined by an independent valuer at least every three years • Fair Value continues to be determined on a discounted cash flow basis • Past individual asset devaluations below cost transferred from revaluation reserve to retai
Slide 11: Key Changes
Key Changes • Deferred Taxation – New method of calculation – Recognition of deferred tax liability on the balance sheet – Revaluation of assets now incorporated in the deferred tax liability recognised • Goodwill – Goodwill will no longer be amortised – Tested annually for impairment, or whenever t
Slide 12: Other Changes
Other Changes • Long Service Leave – Will be recorded through the income statement as it is earned by the employee using actuarial measure – Previously only record when leave vested with the employee
Slide 13: Financial Instruments
Financial Instruments • Transition exemption not to restate comparatives – NZIAS 32 and NZIAS 39 applicable from 1 July 2005 • All derivative instruments will be recognised on the balance sheet at fair value – rules based standard allows some derivatives to qualify for hedge accounting whereby movem
Slide 14: Interest Rate Derivatives
Interest Rate Derivatives • Current hedging activity is considered economically prudent • Acknowledgement world wide that the standards are imperfect • Our situation exaggerated by proportion of foreign denominated debt • To the extent hedge accounting is unable to be achieved in relation to the int