Investor Presentaiton
Non-GAAP Measures
Underlying Earnings is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Trustpower believes that this measure is an important additional financial measure to
disclose as it excludes movements in the fair value of financial instruments which can be volatile year to year depending on movement in long term interest rate and or electricity future
prices. Also excluded in this measure are items considered to be one off and not related to core business such as changes to the company tax rate or impairment of generation assets.
EBITDAF is a non-GAAP financial measure but is commonly used within the electricity industry as a measure of performance as it shows the level of earnings before impact of gearing levels
and non-cash charges such as depreciation and amortisation. Market analysts use the measure as an input into company valuation and valuation metrics used to assess relative value and
performance of companies across the sector. The EBITDAF shown in the financial statements excludes the Australian business which is a discontinued operation.
Reconciliation between statutory measures of profit and the two measures above, as well as EBITDAF per the financial statements and total EBITDAF, are given below:
Profit after tax
Fair value losses / (gains) on financial instruments
Changes in income tax expense in relation to adjustments
Underlying Earnings After Tax
Operating Profit Continuing Operations
Fair value losses / (gains) on financial instruments
Depreciation and amortisation
EBITDAF Continuing Operations
2022
2021
119,813
30,737
(43,442)
83,508
12,164
(23,382)
88,535
90,863
182,639
50,033
(43,442)
83,508
20,524
23,122
159,721
156,663
Operating Profit Discontinued Operations
17,535
21,284
Fair value losses / (gains) on financial instruments
Depreciation and amortisation
26,956
22,220
EBITDAF Discontinued Operations
44,491
43,504
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