PERFORMANCE REPORT
FINANCIAL PERFORMANCE INDICATORS
Variance to
Variance
2014-15
2015-16
2015-16
Prior Year
to Target
Performance Indicator
Result
Result
Target
%
Notes
%
Notes
F1
Cash Interest Cover
2.40 times
2.19 times
2.16 times
-8.8
1.4
Cash flow from operations
before net interest and tax
payments / net interest
payments
F2
Gearing Ratio
46.14%
47.83%
48.36%
3.7
-1.1
Total debt (including finance
leases) / total assets * 100
F3
Internal Financing Ratio
65.01%
38.61%
25.96%
-40.6
1a
48.7
1b
(Net operating cash flow -
dividends) / Capital expenditure
* 100
F4
Current Ratio
0.51
0.57
0.35
11.8
2a
62.9
2b
Current assets / current
liabilities (excluding long-
term employee provisions
and revenue in advance)
F5
Return on Assets
4.48%
4.63%
3.80%
3.3
21.8
3b
Earnings before net interest
and tax / average total assets
* 100
F6
Return on Equity
3.33%
3.68%
1.96%
10.5
4a
87.8
4b
Net profit after tax / average
total equity * 100
F7
EBITDA Margin
30.96%
29.76%
28.76%
-3.9
3.5
Earnings before interest, tax,
depreciation and amortisation /
total revenue * 100
VARIANCE EXPLANATIONS
1a
Unfavourable due primarily to lower net operating cash flows largely caused by timing differences between payments for bulk water purchases and billing
of customers and higher capital payments from major infrastructure projects undertaken during the year.
1b
Favourable due primarily to the re-profiling of the 5-year capital program.
2a & 2b
Favourable due to the conversion of short-term borrowings to fixed rate debt.
3b
Favourable due to higher earnings before interest and tax from additional net water sales and developer revenue.
4a & 4b
Favourable due to higher profit after tax from additional net water sales, developer revenue and lower finance charges, partially offset by the impairment
of land and buildings and higher taxation expense.
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WATER & SEWERAGE SERVICE
PERFORMANCE INDICATORS
Variance to
Variance
2014-15
2015-16
2015-16
Prior Year
to Target
Performance Indicator
Result
Result
Target
%
Notes
%
Notes
WS1
Unplanned water supply
0.007%
0.012%
0.044%
71.4
5a
-72.7
5b
interruptions
Number of customers receiving
> 5 unplanned interruptions in
the year / total number of water
(domestic and non-domestic)
customers * 100
WS2
Interruption time
103.2
122.5
104.4
18.7
6a
17.3
6b
Average duration of unplanned
minutes
minutes
minutes
water supply interruptions
WS3
Restoration of unplanned
96.5%
94.2%
96.3%
-2.4
-2.2
water supply
Unplanned water supply
interruptions restored within 5
hours / total unplanned water
supply interruptions * 100
SS1
Containment of sewer spills
98.83%
92.17%
97.70%
-6.7
6a
-5.7
6b
Sewer spills from reticulation
and branch sewers (priority
1 and 2) contained within 5
hours / total sewer spills from
reticulation and branch sewers
SS2
Sewer spills interruptions
79.0%
63.0%
96.8%
-20.3
6a
-34.9
6b
Number of residential sewage
customers affected by
sewerage interruptions
restored within 4 hours
VARIANCE EXPLANATIONS
5a & 5b
Whilst we had a good result compared with the performance target, it was higher than last financial year due to a longer and drier than usual summer period.
This resulted in greater pressure fluctuations in our pipe network, causing a 12% increase in fault volumes, including water main and water service line failures.
6a & 6b
Performance on water supply interruptions, water supply restoration times and sewer spill interruptions were impacted by the higher fault volumes
(Notes 5a & 5b). Additional resources were sourced to respond to the higher volumes, however these resources took time to onboard.
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PERFORMANCE REPORT
CUSTOMER RESPONSIVENESS
Variance to
Variance
2014-15
2015-16
2015-16
Prior Year
to Target
Performance Indicator
Result
Result Target
% Notes
% Notes
CR1
Water Quality Complaints
0.259
0.285
0.430
10.0
7a
-33.7
7b
Number of complaints per 100 customers
CR1.1
Colour
0.216
0.234
0.359
8.3
-34.8
CR1.2
Turbidity
0.000
0.000
0.000
0.0
0.0
CR1.3
Taste & Odour
0.029
0.033
0.048
13.8
-31.3
CR1.4
Other
0.014
0.018
0.023
28.6
-21.7
CR2
Sewerage service quality
0.001
0.019
0.010
1800.0
8a
90.0
8b
complaints
Number of complaints per 100 customers
CR3
Sewerage odour complaints
0.028
0.027
0.030
-3.6
-10.0
9b
Number of complaints per 100 customers
CR4
Billing complaints
0.0354
0.0348
0.1200
-1.7
-71.0
10b
Number of complaints per 100 customers
ENVIRONMENTAL
Variance to
Variance
2013-14
2014-15
2015-16
2015-16
Prior Year
to Target
Performance Indicator
Result Result
Result
Target
% Notes
% Notes
E1
Effluent re-use volume (end use)
28.5%
31.9%
30.3%
28.8%
-5.0
5.2
11b
E1.1
Urban & Industrial
4.2%
4.5%
6.1%
4.1%
35.6
12a
50.1
12b
E1.2
Agricultural
5.6%
6.9%
5.8%
6.2%
-15.9
13a
-6.9
13b
E1.3
Environmental Flows
0.0%
0.0%
0.0%
0.0%
0.0
0.0
E1.4
Other uses
18.8%
20.5%
18.4%
18.5%
-10.2
14a
-0.6
E2
Total net CO2 emissions
0.0
0.0
0.0
0.0
0.0
0.0
Net tonnes CO2 equivalent
VARIANCE EXPLANATIONS
7a & 7b
Water quality complaints increased compared with last financial year but were still well below the performance target. Water demand was well above
average (by as much as 50ML/day) which increased the disturbance of the fine sediments in our pipe network resulting in a higher level of complaints.
8a & 8b
In 2015-16, based on audit feedback, we revised our definition of a complaint and have amended our reporting accordingly. As a result, comparisons
with the previous financial year and the target are no longer valid.
9b
During 2015-16, we implemented a number of initiatives to reduce odour complaints in known problem areas which have been very successful.
These have included alterations to our chemical dosing system and the use of new filters on ventilation points.
10b
We have improved our internal escalation process which has led to lower complaints overall.
11b, 12a,
Effluent re-use increased in 2015-16 by 241ML largely due to the Aurora Recycled Water Treatment Plant coming back online after being offline for
12b & 14a
much of 2014-15. However, the proportion of effluent re-use decreased because the total effluent production increased by 1,379ML due to growth in
customer numbers.
13a & 13b
In 2015-16 we had a lengthy blue green algae outbreak in the recycled water storage dams at our Aurora and Whittlesea Treatment Plants.
This, combined with adverse weather conditions, prevented irrigation opportunities from being maximised.
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YARRA VALLEY WATER ANNUAL REPORT 2015-16

 

PERFORMANCE REPORT
CERTIFICATION OF PERFORMANCE
REPORT FOR 2015-16
We certify that the accompanying Performance Report
of Yarra Valley Water Corporation in respect of the
2015-16 financial year is presented fairly in accordance
with the Financial Management Act 1994.
The Performance Report outlines the relevant performance
indicators for the financial year as determined by the Minister
for Water and as set out in the 2015-16 Corporate Plan, the
actual and comparative results achieved for the financial
year against predetermined performance targets and these
indicators, and an explanation of any significant variance
between the actual results and performance targets and/
or between the actual results in the current year and the
previous year.
As at the 26th day of August 2016, we are not aware of
any circumstances that would render any particulars in
the Performance Report to be misleading or inaccurate.
Sue T O’Connor
Chair
Patrick J McCafferty
Managing Director
Kevin W Jones
Chief Financial Officer
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