DELOITTE TOP 200 INDEX

General criteria

To be included in the Deloitte Top 200 Index or the Deloitte Top 30 Financial Institutions Index, entities must operate for a commercially determined profit and must be a for profit entity as defined by the External Reporting Board (XRB). The following general points apply to all the Deloitte Top 200 indices.

● The audited financial statements must be prepared as a going concern.

● The entities will generally but not always be liable for tax on earnings.

● Entities that have operated for less than 12 months are not included.

● Entities fully owned by another NZ entity are excluded if they are reported as a consolidated group.

● In some instances, where inclusion of separate results is deemed to be more meaningful, because the entity in question competes with other similar NZ entities, and where separate figures are available, these have been used and the holding entity results excluded.

● N/A is used where figures were either not disclosed by the entity or could not be calculated from the disclosed information.

● An “-” indicates the entity was not ranked last year.

Deloitte Top 200 Index

The Deloitte Top 200 Index consists of New Zealand’s largest entities ranked by revenue. These entities include publicly-listed companies, large unlisted entities, NZ subsidiaries and branches of overseas companies and the commercial operations of Ma¯ori entities. It also includes producer boards, co-operatives, local authority trading enterprises and state-owned enterprises.

All figures are the latest available, verified and audited. We recognise that various entities evaluate their own performance using measures specific to their business. For comparability and simplicity we have adopted a relatively simple calculation methodology focusing on understood financial measures.

● Revenue: as disclosed in the entity's Statement of Comprehensive Income (excludes gross commission sales).

● EBITDA: earnings before net interest income/expense, tax, depreciation and amortisation and impairments of property, plant and equipment or intangible assets.

● EBIT: earnings before net interest income/expense and tax. Not shown for the financial institutions.

● Profit after tax: as disclosed in the Statement of Comprehensive Income.

● Profit after tax %: calculated as profit after tax divided by revenue.

● Total assets: as disclosed in the entity's Statement of Financial Position. Includes current and noncurrent assets, investments, tangible and intangible assets, deferred tax assets and goodwill.

● Return on assets (ROA): calculated as profit after tax divided by average total assets over the period. Average total assets are calculated by adding the total assets at the beginning of a period to the total assets at the period's end and dividing the result by two. For an entity that has operated for only one year, the first year total assets figure is used as an approximate.

● Total equity: as disclosed in the entity's Statement of Financial Position including non-controlling (minority) interests. For NZbranches of overseas companies, the amount shown as owing to head office is deemed equity.

● Return on equity (ROE): calculated as profit after tax divided by average shareholder’s equity over the period. Average shareholders' equity is calculated by adding the shareholders' equity at the beginning of a period to the shareholders' equity at the period's end and dividing the result by two. For an entity that has operated for only one year, the first year total equity figure is used as an approximate.

● Debt to equity ratio: calculated as total liabilities divided by shareholder’s equity as disclosed in the entity’s Statement of Financial Position.

Deloitte Top 30 Financial Institutions Index

The Deloitte Top 30 Financial Institutions Index consists of New Zealand’s largest banks, finance and insurance companies ranked by total assets. These results are based on these entity’s legal set of accounts and not those accounts which include funds under management (i.e. accounts which include assets that are not legally owned by that entity but administered by it).

Deloitte Top 10 Ma¯ori Business Index

The Deloitte Top 10 Ma¯ori Business Index consists of New Zealand’s largest Ma¯ori entities ranked by total assets. These results are for the ultimate holding entity, including both commercial and noncommercial operations and could be prepared under either ‘for profit’ or ‘public benefit entity (PBE)’ reporting regimes.

For an entity to qualify for the Deloitte Top 10 Ma¯ori Business Index, first the entity needs to identify themselves as Ma¯ori. Then we look more closely at four attributes; stakeholders, kaupapa, ownership and results – what we call the Ma¯ori business SKOR.

2020 data changes

In the current year, there was one new accounting standard that had a major impact on the current year and, for some entities, the prior year figures.

NZ IFRS 16 Leases is effective for reporting periods beginning on or after 1 January 2019. The standard requires entities to bring their operating lease assets and liabilities on to the balance sheet where they were previously reflected as off balance sheet commitments. The impact of NZ IFRS 16 is to increase assets, liabilities, EBITDA and EBIT.

Companies that have adopted this accounting standard have been indicated in the Top 200 indices based on the below key:

1. Entity adopted NZ IFRS 16 during the year and the comparative numbers have been restated;

2. Entity adopted NZ IFRS 16, however, the comparative numbers have not been restated.

Covid-19 considerations

The preparation of the 2020 Top 200 indices has been impacted by Covid19 as follows:

1. Results for companies with a balance sheet date of 31 March 2020 or after are likely to have been impacted by the Covid-19 related business disruption. This effect is likely to have impacted the ranking of these companies on the Top 200 Index. It also makes it difficult to compare their performance with companies with a balance sheet date earlier than 31 March 2020.

2. In some cases, Covid-19 has also delayed reporting of annual results. This may have contributed to the latest financial statements for certain entities not being available by the data collection cut-off date and therefore has resulted in some companies (e.g. Vodafone, Heinz, NZ Investment Holdings, Tasman Liquor, and others) not being included on the Top 200 Index for 2020.