Investor Presentaiton
Financial summary
FY20 is the first year of the new five year regulatory period
(1)
•
Key highlights
SCS revenue fell by $284 million in FY20 due to a reduction in
Ausgrid's Maximum Allowable Revenue (MAR) following the
AER Determination. This was primarily due to the lower risk
free rate and market risk premium within the regulatory WACC
(refer page 43 for further details)
The reduction in unregulated revenue of $21 million was
primarily a result of the reclassification of activities from
unregulated to ACS. This was offset within ACS by lower
demand for ancillary network services due to COVID-19 and
lower prices for metering and public lighting services from FY20
following the AER Determination
Operating expenses remained stable in total. Higher SCS opex
was primarily due to abnormal storm activity experienced during
FY20, which is subject to a regulatory pass-through process,
and is forecast to be recovered in FY22
A goodwill impairment expense of $348 million was recognised
in FY19 in response to the AER Determination, which included
a reduction in the regulatory rate of return. No impairment has
been recognised in FY20
Reform costs in the profit or loss in FY20 were lower and
represent the exit payments that were not provided for in FY19
Statement of profit or loss
$million, nominal
Revenue
SCS
ACS
FY19
FY201 Variance
2,299
2,015
(284)
154
153
Unregulated
Total revenue
142
121
(21)
2,595
2,289
(306)
Expenses
SCS
(376)
(393)
(17)
ACS
(81)
(103)
(22)
Unregulated
(107)
(67)
40
Total SCS, ACS and unregulated
(564)
(563)
1
Pass-through costs
(355)
(397)
(42)
Loss on disposal of PPE
(21)
(10)
11
Total operating expenses
(940)
(970)
(30)
EBITDA
1,655
1,319
(336)
Depreciation and amortisation
(593)
(639)
(46)
Finance costs
(478)
(478)
Interest income
3
(1)
Impairment expense
(348)
348
Reform costs
(77)
(12)
65
Profit for the year
162
192
30
Ausgrid Together
Better
Notes: 1. FY20 numbers are unaudited and subject to revision. Audited accounts are expected to be available on 28 August 2020
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