2015-16 SaskEnergy Annual Report

CREATING VALUE

Financial Strength

Debt/Equity Ratio

This measure is calculated by dividing total net debt by the sum of total net debt plus total Province’s equity. The consolidated rate of return on equity is measured by dividing the income before unrealized market value adjustments by the average Province’s equity over the year. The average is determined as the simple average of the opening Province’s equity and the closing Province’s equity. This measure removes unrealized market value adjustments from consolidated net income. Market value adjustments include fair value adjustments on financial and derivative instruments and the revaluation of natural gas in storage to net realizable value.

Consolidated Return on Equity

Income before Unrealized Market Value Adjustments

Environmental

This measure represents the intensity of greenhouse gas emissions produced per unit of natural gas compression, measured in tonnes CO 2 e per million running horsepower hours.

Greenhouse Gas Emissions – Tonnes of CO 2 e/million Running Horsepower Hours

Community Relationship

Community Sponsorships as a Percentage of Net Income

This measure is based on the forecast five-year rolling average of net income of $70 million per year. The long-term target for this measure would see SaskEnergy achieve an annual community sponsorship level consistent with one per cent of net income. This measure tracks the percentage of Aboriginal labour content in the Corporation’s labour service contracts managed by the Purchasing Department.

Total Contracts – Percentage of Aboriginal Labour Content

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2015-16 ANNUAL REPORT SASKENERGY

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