Airways Corporation of New Zealand Limited Statement of Corporate Intent 2020-2022
INTRODUCTION AND NATURE & SCOPE OF ACTIVITIES
Following a comprehensive consultation process with customers and other stakeholders, Airways has recently set core business ATM prices for the FY20-FY22 period. These prices and related revenue estimates are reflected in the financial budgets for the three years from FY2019/20, set out below.
STRATEGIC CONTEXT
AIRWAYS’ BUSINESS UNITS
Forecast FY19
Plan FY20
Plan FY21
Plan FY22
Revenue (Includes internal revenue) X X Core business
FY20 KEY STRATEGIC WORKSTREAM
196.0
224.1
235.6
245.2
Commercial businesses X X Digital
4.1
4.7
5.2
5.7
MEASURE OF SUCCESS
X X Aeropath/Aviation Services
28.4
29.1
30.2
32.4
X X Training course delivery
8.3
10.1
11.1
12.2
40.8
43.9
46.5 282.1
50.3
FINANCIAL FORECAST BY UNIT ($NZM)
Group revenue
236.8
268.0
295.5
NOPAT X X Core business
15.8
17.9
20.3
19.1
DIVIDENDS
Commercial businesses X X Digital
0.4
0.3
0.7
1.1
REPORTING TO SHAREHOLDING MINISTERS
X X Aeropath/Aviation Services
5.2
5.1
6.0 2.6 9.3
6.4
X X Training course delivery
2.0 7.6
2.4 7.8
2.9
10.4 29.5
POLICY FOR SHARE ACQUISITION
Group NOPAT
23.4
25.7
29.6
Key financial metrics X X Capital investment
44.0
75.6
72.8
47.4
COMPENSATION FROM THE CROWN
X X Group FTEs
783
818
823
816
X X Group return on capital (GAAP)
17.4%
17.1% 16.5% 16.5%
THE CROWN’S INVESTMENT IN AIRWAYS
ACCOUNTING POLICIES Airways prepares financial statements in accordance with GAAP, with a complete list of accounting policies available in the latest annual report available on Airways’ website. In addition to these accounting policies, Airways will adopt the new IFRS 16 lease accounting standard from 1 July 2019. The impact of this standard is set out in the financial budgets above and in the latest annual report. The financial forecasts and budgets set out in this SCI comply with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and other
applicable Financial Reporting Standards (as appropriate for profit-oriented entities) except for revenue, which is determined at the individual business unit level. As a result, the Group revenue number above includes internal revenue earned by Airways’ commercial businesses from the statutory business. This internal revenue is eliminated in the annual financial statements, which are prepared at a Group level only. This has no impact on Group NOPAT. Airways also uses Economic Value Added (EVA) principles to guide pricing decisions. Further detail is provided in Appendix B.
APPENDICES
DIRECTORY
11
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