Investor Presentaiton
Income statement
Comments
The reduction in SCS revenue of $284 million from FY19 was
due to a combination of factors, including a reduction in
Ausgrid's Maximum Allowable Revenue following the 2019-
24 AER Determination. This was primarily due to the lower
risk free rate and market risk premium within the regulatory
WACC (refer to page 43 for further details)
The reduction in unregulated revenue of $21 million from
FY19 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 over FY19 and
FY20. Higher SCS opex was primarily due to abnormal storm
activity experienced during FY20, which is subject to a pass-
through application 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 of $12 million in FY20 were
lower and represent the exit payments that were not provided
for in FY19
Income statement FY18-201
Variance
A$m, nominal
FY18
FY19
FY20
(FY19-20)
SCS revenue
2,327
2,299
2,015
(284)
ACS revenue
Unregulated revenue
Revenue
Pass-through costs
Gross margin
SCS opex
168
154
153
117
142
121
(1)
(21)
2,612
2,595
2,289
(306)
(436)
(355)
(397)
(42)
2,176
2,240
1,892
(348)
(434)
(376)
(393)
(17)
ACS opex
(72)
(81)
(103)
(22)
Unregulated opex
(87)
(107)
(67)
40
Operating expenses
(593)
(564)
(563)
1
Loss on disposal of property plant and equipment (PPE)
(10)
(21)
(10)
11
EBITDA
1,573
1,655
1,319
(336)
Depreciation and amortisation
(543)
(593)
(639)
(46)
Impairment
(348)
Reform costs
(35)
(77)
(12)
65
EBIT
995
637
668
31
Finance charges
Interest income
Profit before tax
Income tax expense
Profit after tax
KPIs
Gross margin
(482)
(478)
(478)
4
3
2
(1)
517
162
192
33
517
162
192
30
EBITDA margin
Operating expenses as % of revenue
83%
86%
83%
(3%)
60%
64%
58%
(6%)
23%
22%
25%
3%
Better
Ausgrid Together
Note: 1. FY20 numbers are unaudited and subject to revision
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