Purpose 5: Generate shareholder value
Deliver value-for-money services to Defence and seek to generate sufficient revenue to enable us to continue achieving our role on a commercially sustainable basis. We do this while continuing to maintain an operational service delivery model, sound governance practices, a skilled and productive workforce and a safe workplace that delivers high quality and professional outcomes.
Table 3.13: Purpose 5, KPI 12 result
KPI 12: Total shareholder return | ||
Corporate Plan target ≥6.7% | Achievement 7.2% | Result
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Total shareholder return is, in essence, the internal rate of return of all cash flows paid to shareholders during the year. We achieved shareholder return 0.5 per cent above the Corporate Plan target. This demonstrates that we continued to add to shareholder value. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.14: Purpose 5, KPI 13 result
KPI 13: Dividend yield | ||
Corporate Plan target ≥1.5% | Achievement 2.3% | Result
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In accordance with the GBE Guidelines, we pay an annual dividend to the Australian Government. We achieved a dividend yield of 2.3 per cent or 0.8 per cent above the Corporate Plan target. This demonstrates that we continued to deliver solid returns to the Australian Government relative to our commercial value. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.15: Purpose 5, KPI 14 result
KPI 14: Dividend payout ratio | ||
Corporate Plan target 60.0% | Achievement 60.0% | Result
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We achieved a dividend payout ratio of 60 per cent of net profit after tax (NPAT) in line with the Corporate Plan target, demonstrating that we fulfilled our shareholder return obligations. This equates to an annual dividend of $39.6 million which we will pay to the Australian Government in quarterly instalments throughout 2017–18. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.16: Purpose 5, KPI 15 result
KPI 15: Earnings before interest and tax (EBIT) | ||
Corporate Plan target $108.9 million | Achievement $103.6 million | Result
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Our EBIT was $5.3 million lower than the Corporate Plan target. This result was not unexpected. The primary reason for the variance is that we had significantly higher levels of property impairment than budgeted. This means that the market value of properties in our portfolio was lower than the value listed on our balance sheet. Lower than anticipated revenue from housing services was also a contributing factor. Refer to the overarching analysis on performance for more information about external factors affecting our financial performance. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.17: Purpose 5, KPI 16 result
KPI 16: Earnings before interest, tax and depreciation | ||
Corporate Plan target $133.8 million | Achievement $135.8 million | Result
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Our earnings before interest, tax and depreciation was $2 million above the Corporate Plan target. This outcome demonstrates that our operating performance was sound and that we were profitable. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.18: Purpose 5, KPI 17 result
KPI 17: Return on equity | ||
Corporate Plan target ≥4.3% | Achievement 4.3% | Result
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We achieved return on equity of 4.3 per cent in line with the Corporate Plan target. This confirms our net income as a percentage of shareholder equity was strong. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.19: Purpose 5, KPI 18 result
KPI 18: Net profit after tax (NPAT) | ||
Corporate Plan target $64.8 million | Achievement $65.7 million | Result
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We achieved NPAT of $0.9 million above the Corporate Plan target. This positive outcome was due to:
Refer to the overarching analysis on performance for more information about external factors affecting our financial performance. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.20: Purpose 5, KPI 19 result
KPI 19: Operating margin | ||
Corporate Plan target ≥10.6% | Achievement 11.6% | Result
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Operating margin is a measurement of our operating profitability as a percentage of our total revenue. The higher the operating margin, the smaller our operating expenses are in relation to total revenue, increasing the bottom line and indicating a more profitable operation. Our result in 2016–17 was 1 per cent above the Corporate Plan target. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.21: Purpose 5, KPI 20 result
KPI 20: Return on capital employed | ||
Corporate Plan target ≥6.1% | Achievement 5.9% | Result
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Our return on capital employed result was in line with the Corporate Plan target. This demonstrates that we were profitable and that our capital was employed efficiently. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.22: Purpose 5, KPI 21 result
KPI 21: Gearing ratio | ||
Corporate Plan target ≥24.9% | Achievement 24.9% | Result
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Our gearing ratio result was in line with the Corporate Plan target. This demonstrates that our activities were well funded by equity compared to borrowings. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.23: Purpose 5, KPI 22 result
KPI 22: Interest cover | ||
Corporate Plan target ≥5.2% | Achievement 5.2% | Result
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Our interest cover ratio result was in line with the Corporate Plan target. This demonstrates that we were well placed to pay interest on outstanding debt. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.24: Purpose 5, KPI 23 result
KPI 23: Current ratio | ||
Corporate Plan target ≥6.3% | Achievement 6.2% | Result
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Our current ratio result was in line with the Corporate Plan target. This outcome demonstrates that we were well positioned to pay short term debt obligations. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.25: Purpose 5, KPI 24 result
KPI 24: Liquidity ratio | ||
Corporate Plan target ≥6.3% | Achievement 6.2% | Result
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Our liquidity ratio was in line with the Corporate Plan target. This outcome demonstrates that we were well placed to pay off our short term debt obligations. Refer to detailed report on performance for more information about our financial performance. | ||
Table 3.26: Purpose 5, KPI 25 result
KPI 25: Staff retention and turnover rate | ||
Corporate Plan target ≤15% | Achievement 13.8% | Result
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Our staff retention and turnover rate was less than the Corporate Plan target by 1.2 per cent. This outcome demonstrates that staff turnover was within appropriate levels and did not negatively impact our operations. Refer to workforce management for more information. | ||
Table 3.27: Purpose 5, KPI 26 result
KPI 26: Staff engagement | ||
Corporate Plan target ≥75% | Achievement 85% | Result
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Ninety one per cent of our staff participated in the 2017 Australian Public Service (APS) Census. This was a significant increase compared with our participation rate in the 2016 APS Census (80 per cent) and was the third highest participation rate of medium sized agencies in 2017. We achieved a staff engagement score of 85 per cent which demonstrates that our staff were satisfied, committed, motivated and enabled to improve business results. There is no comparable data as the index was a new section in the 2017 Census. There was a positive variance in our engagement score compared with the APS overall (+11 percentage points), smaller operational agencies (+5 percentage points) and medium sized agencies (+5 percentage points). Refer to workforce management for more information. | ||
Table 3.28: Purpose 5, KPI 27 result
KPI 27: Total recordable injury frequency rate (TRIFR) | ||
Corporate Plan target ≤11 | Achievement 5.9 | Result
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TRIFR is the number of recordable injuries per million work hours. We achieved a record low rate, far exceeding the benchmark and stretch target we set ourselves in the Corporate Plan. We also continued to see a steady incline in the number of incidents reported. This is testament to our efforts in affecting positive work, health and safety outcomes. Refer to workforce management for more information. | ||
Table 3.29: Purpose 5, KPI 28 result
KPI 28: Wages expense ratio | ||
Corporate Plan target ≤6.2% | Achievement 6.1% | Result
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Our wages expense ratio was in line with the Corporate Plan target. This demonstrates that our salary and related payroll expenses were well managed to budget. Refer to workforce management for more information. | ||
