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H4 Deed of cross guarantee

NBN Co Limited and NBN Tasmania Limited (NBN Tasmania) are parties to a deed of cross guarantee under which each company guarantees the debts for the other. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a Financial Report and Directors’ report under the ASIC Corporations (Wholly-owned Companies) Instrument 2016/785.

Statement of profit or loss and other comprehensive income, Statement of financial position and Summary of movements in accumulated losses
NBN Co Limited and NBN Tasmania Limited represent a ‘closed group’ for the purpose of the Class Order and as there are no other parties to the deed of cross guarantee, they also represent the ‘extended closed group’.

Set out on the following pages are a Statement of profit or loss and other comprehensive income, Statement of financial position and a Summary of movements in accumulated losses for the year ended 30 June 2019 of the closed group.

Statement of profit or loss and other comprehensive income

NBN Co & NBN Tasmania

30 June 2019

30 June 2018

For the year ended

$m

$m

Revenue

2,824

1,977

Direct network costs

(746)

(691)

Employee benefits expenses

(867)

(787)

Other operating expenses

(609)

(603)

Subscriber costs

(1,903)

(1,948)

Depreciation and amortisation expense

(2,611)

(2,165)

Other income

23

19

Net finance costs

(991)

(578)

Loss before income tax

(4,880)

(4,776)

Income tax benefit/(expense)

1

(1)

Loss for the year

(4,879)

(4,777)

Loss attributable to the shareholder

(4,879)

(4,777)

Other comprehensive gain/(loss)

Items that may be reclassified to profit or loss

Changes in the fair value of cash flow hedges, net of tax

3

(2)

Total other comprehensive gain/(loss) for the year, net of tax

3

(2)

Total comprehensive loss for the year

(4,876)

(4,779)

Total comprehensive loss attributable to the shareholder

(4,876)

(4,779)

Statement of financial position

NBN Co & NBN Tasmania

30 June 2019

30 June 2018

As at

$m

$m

Current assets

Cash and cash equivalents

520

593

Trade and other receivables

444

338

Inventories

39

36

Derivative financial assets

6

2

Other current assets

116

108

Total current assets

1,125

1,077

Non-current assets

Derivative financial assets

2

1

Property, plant and equipment

29,443

25,043

Intangible assets

2,114

1,996

Other non-current assets

43

57

Total non-current assets

31,602

27,097

Total assets

32,727

28,174

Current liabilities

Trade and other payables

2,751

2,361

Other liabilities

24

20

Other financial liabilities

276

161

Provisions

160

121

Total current liabilities

3,211

2,663

Non-current liabilities

Trade and other payables

5

3

Other liabilities

811

693

Other financial liabilities

8,277

7,037

Provisions

63

64

Borrowings

13,053

5,531

Total non-current liabilities

22,209

13,328

Total liabilities

25,420

15,991

Net assets

7,307

12,183

Equity

Contributed equity

29,500

29,500

Other reserves

7

4

Accumulated losses

(22,200)

(17,321)

Total equity

7,307

12,183

Summary of movements in accumulated losses

NBN Co & NBN Tasmania

30 June 2019

30 June 2018

For the year ended

$m

$m

Opening balance at 1 July

(17,321)

(12,544)

Loss for the period

(4,879)

(4,777)

Closing balance at 30 June

(22,200)

(17,321)