PERFORMANCE REPORT
FINANCIAL PERFORMANCE INDICATORS
2015-16
2016-17
2016-17
Variance to
Variance
Performance Indicator
Result
Result
Target
Prior Year
Notes
to Target
Notes
F1
Cash Interest Cover
2.19 times
2.50 times
2.17 times
14.2%
1a
15.2%
1b
Cash flow from operations
before net interest and tax
payments / net interest
payments
F2
Gearing Ratio
47.83%
47.84%
48.13%
0.0%
-0.6%
Total debt (including finance
leases) / total assets * 100
F3
Internal Financing Ratio
38.61%
59.37%
31.40%
53.8%
2a
89.1%
2b
(Net operating cash flow -
dividends) / Capital expenditure
* 100
F4
Current Ratio
0.57
0.48
0.42
-15.8%
3a
14.3%
3b
Current assets / current
liabilities (excluding long-
term employee provisions
and revenue in advance)
F5
Return on Assets
4.63%
4.57%
4.08%
-1.3%
12.0%
4b
Earnings before net interest and
tax / average total assets * 100
F6
Return on Equity
3.68%
3.67%
2.70%
-0.3%
35.9%
5b
Net profit after tax / average
total equity * 100
F7
EBITDA Margin
29.76%
31.32%
31.34%
5.2%
-0.1%
Earnings before interest, tax,
depreciation and amortisation /
total revenue * 100
VARIANCE EXPLANATIONS
1a
Favourable primarily due to lower operating payments made to suppliers including wholesale charges payments to Melbourne Water
1b
Favourable due to higher than budgeted operating cash flows from additional receipts from customers, lower operating payments made to suppliers
and savings in interest payments due to lower than budgeted borrowings due largely to savings in the delivery of the capital program
2a & 2b
Favourable compared to prior year and target due to higher net operating cash flows from lower payments, lower dividend payments as no interim dividend was

 

paid in 2016-17 and savings achieved in the delivery of the capital program.
3a
Unfavourable due to higher short term debt levels as at 30 June 2017 compared with 30 June 2016 due to timing of the maturity of borrowings.
No action is proposed to be taken as the variation between the year on year result is an outcome of the timing of the maturity dates of the debt portfolio.
3b
Favourable due primarily to lower than budgeted short term borrowings held for working capital.
4b
Favourable due to higher earnings before interest and tax from additional service charges and net water sales when comparing to target. Average assets below
budget due to impact of the 2015 -16 infrastructure valuation and lower capital expenditure in 2016-17 when comparing to target.
5b
Favourable due to higher profit after tax from additional service charges, net water sales and lower finance charges when comparing to target. Average equity
below budget due to the impact of the 2015-16 infrastructure valuation.
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YARRA VALLEY WATER ANNUAL REPORT 2016-17

 

WATER & SEWERAGE SERVICE
PERFORMANCE INDICATORS
2015-16
2016-17
2016-17
Variance to
Variance
Performance Indicator
Result
Result
Target
Prior Year
Notes
to Target
Notes
WS1
Unplanned water supply
0.012%
0.007%
0.043%
-41.7%
6a
-83.7%
6b
interruptions
Number of customers receiving
> 5 unplanned interruptions in
the year / total number of water
(domestic and non-domestic)
customers * 100
WS2
Interruption time
122.5
118.2
104.4
-3.5%
13.2%
7b
Average duration of unplanned
minutes
minutes
minutes
water supply interruptions
WS3
Restoration of unplanned
94.2%
96.1%
96.3%
2.0%
-0.2%
water supply
Unplanned water supply
interruptions restored within 5
hours / total unplanned water
supply interruptions * 100
SS1
Containment of sewer spills
92.17%
95.25%
97.70%
3.3%
-2.5%
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
63.0%
76.1%
96.8%
20.8%
8a
-21.4%
8b
Number of residential sewage
customers affected by sewerage
interruptions restored within
4 hours
VARIANCE EXPLANATIONS
6a & 8a
Favourable due to improved performance of our maintenance contractor in a number of areas including the efficient dispatching of work, reliability of field
computing system, field crew management and field crew skills and competencies through more effective training. The improvement in performance of the
maintenance contractor was achieved whilst we experienced a 12% increase in water fault volumes.
6b
Our continued proactive approach in the management of customers receiving multiple interruptions has ensured we have delivered outcomes significantly
below the target.
7b & 8b
Although the performance of the maintenance contractor improved over the 2016-17 financial year, we did not meet the target due to a combination of
performance and volume issues. In the 2016-17 financial year, we have experienced a 12% increase in fault volumes. 2015-16 was one of the hottest/driest
years on record and was followed by a wet start to 2016-17. This resulted in an expansion of the clay soils present in the majority of our service area,
placing stress on our pipes, in particular water service lines. The increased fault volumes impacted response and restoration times for both water and sewer
faults. Additional resources were sourced to respond to the higher volumes. We are working closely with the maintenance contractor to continue to improve
performance in 2017-18.
YARRA VALLEY WATER ANNUAL REPORT 2016-17
89

 

PERFORMANCE REPORT
CUSTOMER RESPONSIVENESS
2015-16
2016-17
2016-17
Variance to
Variance
Performance Indicator
Result
Result
Target
Prior Year
Notes
to Target
Notes
CR1
Water Quality Complaints
0.285
0.302
0.430
6.0%
9a
-29.8%
9b
Number of complaints per 100 customers
CR2
Sewerage service quality
0.019
0.065
0.010
242.1%
10a
550.0%
10b
complaints
Number of complaints per 100 customers
CR3
Sewerage odour complaints
0.027
0.017
0.030
-37.0%
11a
-43.3%
11b
Number of complaints per 100 customers
CR4
Billing complaints
0.0348
0.3461
0.1200
894.5%
12a
188.4%
12b
Number of complaints per 100 customers
VARIANCE EXPLANATIONS
9a
Water quality complaints have increased compared with 2015-16 year due primarily to the increase in water asset fault volumes. We are continuing to focus
on asset operational strategies to reduce the volume of water quality complaints.
9b
To assist in managing down the volume of complaints we cleaned approximately 220 km of water mains in 2016-17 using ice pigging and increased
the focus on operational planning and changes.
10a & 10b
In 2015-16 we changed our definition of a complaint following the Essential Services Commission audit feedback which has increased the number of reported
complaints. We have also implemented a new faults related complaints recording and management system which has improved the accuracy of our reporting
of complaints. As a result, comparisons with the previous financial year and the target are no longer valid. Due to the nature of the change we are unable to
restate the 2015-16 result under the new complaint definition.
11a & 11b
The continuation of our odour management strategy to address the known problem areas has been very successful resulting in a reduced level of customer
complaints when compared with the prior year and target.
12a & 12b
In 2016-17, based on the Essential Services Commission audit feedback, we revised our definition of a complaint and have amended our reporting accordingly,
which has increased the number of reported complaints. As a result, comparisons with the previous financial year and the target are no longer valid. Due to
the nature of the change information is unavailable to restate the 2015-16 result under the new complaint definition.
ENVIRONMENTAL
Variance
2015-16
2016-17
2016-17
to Prior
Variance
Performance Indicator
Result
Result
Target
Year
Notes
to Target
Notes
E1
Effluent re-use volume (end use)
30.3%
27.4%
28.8%
-9.6%
13a
-4.9%
13b
E2
Total net CO2 emissions
0.0
0.0
0.0
0.0%
0.0%
Net tonnes CO2 equivalent
VARIANCE EXPLANATIONS
13a, 13ba
Effluent re-use decreased in 2016-17 by 354ML largely due to the Aurora Recycled Water Treatment Plant being off-line in 2016-17 and the Brushy Creek
Recycled Water Treatment Plant being taken out of service in April 2017. These treatment plants will be operational in 2017-18 as well as the new Wallan
Treatment Plant which will ensure that the performance targets are achieved.
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YARRA VALLEY WATER ANNUAL REPORT 2016-17

 

PERFORMANCE REPORT
CERTIFICATION OF PERFORMANCE
REPORT FOR 2016-17
We certify that the accompanying Performance Report
of Yarra Valley Water Corporation in respect of the
2016-17 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 2016-17 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 25th day of August 2017, 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
Natalie Foeng
Chief Financial Officer
YARRA VALLEY WATER ANNUAL REPORT 2016-17
91