Telstra 2009 Annual Report Download - page 45

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Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2009
Statement of financial position
• Our financial position remains strong and this is recognised by the credit rating agencies
• We successfully executed $2,627 million of long term borrowing and refinancing initiatives over the year despite difficult
global capital markets
• To manage our position in the light of difficult market conditions we increased our holding of highly liquid assets and reduced
our reliance on short term funding
Given the current volatility of the economy, our balance sheet
remains in a healthy state with net assets of $12,681 million,
an increase of 3.6%. Despite the impacts of the global financial
crisis, we successfully executed a number of long term
borrowings across a diverse range of debt markets on very
competitive terms. The majority of promissory notes used for
short term funding were repaid during the year, funded by a
combination of positive cash flows from the underlying
business and refinancing from long term debt issuance.
The term borrowings have strengthened our refinancing
situation. Our net unsecured promissory notes are used
principally to support working capital and short term liquidity
as well as hedging certain offshore investments. We have no
further long term debt maturities to refinance until March 2010
and June 2010, and our short term unsecured promissory notes
will continue to be supported by our liquid assets and ongoing
credit standby lines.
Our working capital (current asset to current liability) ratio
improved as cash assets increased after holding higher levels of
liquid funds during the unstable times in the financial markets.
Other major balance sheet movements included:
• other current assets grew by 4.3% mainly due to a tax
receivable of $101 million and an $87 million increase in
our trade and other receivables resulting from higher
revenue and ageing debt levels.
• the net book value of property, plant and equipment
declined mainly due to the accelerated depreciation on
CSLNW's mobile network assets as we invested in new
network technologies, and the depreciation associated
with our transformation program asset build in recent
years.
• intangible assets increased by 16.2% due to two key
factors:
Statement of financial position
As at
30 Jun 09 30 Jun 08 Change Change
$m $m $m %
Current assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,381 899 482 53.6%
Other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,811 4,614 197 4.3%
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,192 5,513 679 12.3%
Non current assets
Property, plant and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,895 24,311 (416) (1.7%)
Intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,416 7,245 1,171 16.2%
Other non current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,459 852 607 71.2%
Total non current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,770 32,408 1,362 4.2%
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,962 37,921 2,041 5.4%
Current liabilities
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,979 2,055 (76) (3.7%)
Other current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,773 6,068 (295) (4.9%)
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,752 8,123 (371) (4.6%)
Non current liabilities
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,344 13,444 1,900 14.1%
Other non current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,185 4,109 76 1.8%
Total non current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,529 17,553 1,976 11.3%
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,281 25,676 1,605 6.3%
Net assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,681 12,245 436 3.6%
Equity
Equity available to Telstra Entity shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,418 12,017 401 3.3%
Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 228 35 15.4%
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,681 12,245 436 3.6%