pwc

The Cost of Capital Report

As at 31 March 2010
Welcome to our Cost of Capital Report for the March 2010 quarter. This document supplements our full analysis of the cost of capital in New Zealand, which can be found on our website. www.pwc.com/nz

The Cost of Capital Report

As at 31 March 2010
Input Assumptions: Market Risk Premium Risk Free Rate Of Return 7.5% 5.5%

pwc

Marginal Tax Rate On Debt Investor Tax Rate On Equity

30.0% 30.0%

Company

NZSE Code

EBIT Multiple

NPAT Multiple

Equity Beta

D / (D + E) Ratio

WACC

Agriculture Affco Holdings Ltd PGG Wrightson Ltd Sanford Ltd Turners and Growers Building Materials & Construction Fletcher Building Ltd Nuplex Industries Ltd Steel & Tube Holdings Ltd Consumer Briscoe Group Ltd The Colonial Motor Co Ltd Delegats Group Goodman Fielder Ltd Hallenstein Glasson Holdings Ltd Kirkcaldie & Stains Ltd Michael Hill International Ltd Restaurant Brands New Zealand Ltd Turners Auctions Ltd Wakefield Health Ltd The Warehouse Group Ltd Postie Plus Group Ltd Pumpkin Patch Ltd Smiths City Group Ltd Seeka Kiwifruit Industries Ltd Energy Contact Energy Limited Horizon Energy Distribution Ltd Infratil Ltd The New Zealand Refining Co Ltd Trustpower Ltd Vector Ltd Forestry & Forest Products Tenon Ltd Intermediate & Durables EBOS Group Ltd Fisher & Paykel Appliances Holdings Ltd Fisher & Paykel Healthcare Corporation Ltd Methven Ltd Rakon Ltd Scott Technology Ltd Skellerup Holdings Limited Investment Hellaby Holdings Ltd Rubicon Ltd Sealegs Corporation

AFF PGW SAN TUR

9.3 28.1 9.0 12.2

9.4 -85.1 11.0 20.0

0.57 0.95 0.43 0.58

19% 64% 24% 27%

7.8% 8.6% 6.8% 7.7% 8.0% 12.4% 15.5% 11.0% 12.7% 10.8% 7.1% 7.7% 9.1% 10.4% 7.1% 10.0% 7.7% 9.3% 6.7% 7.2% 8.6% 12.5% 9.5% 7.7% 8.9% 9.9% 6.7% 9.5% 8.5% 8.1% 7.0% 8.6% 9.3% 9.3% 8.9% 9.5% 8.1% 11.2% 14.2% 12.1% 9.2% 9.2% 10.6% 8.2% 21.5% 9.4%

FBU NPX STU

51.0 14.7 6.3

-82.1 26.5 8.8

1.44 1.98 1.08

26% 27% 17%

BGR CMO DGL GFF HLG KRK MHI RBD TUA WFD WHS PPG PPL SCY SEK

16.5 9.2 7.0 13.1 11.0 17.0 12.4 15.2 9.4 7.5 10.3 14.5 13.1 11.4 9.9

23.7 15.9 7.1 17.6 15.8 25.8 3.9 23.9 12.8 10.2 13.6 23.4 19.6 20.4 10.9

0.93 0.47 0.66 0.92 0.87 0.44 0.93 0.55 0.83 0.39 0.47 0.79 1.29 2.24 0.62

0% 36% 42% 29% 0% 31% 19% 17% 27% 14% 10% 50% 15% 87% 52%

CEN HED IFT NZR TPW VCT

23.0 15.1 44.5 32.9 15.4 11.0

34.0 23.8 -14.6 47.3 21.7 12.3

1.03 0.40 1.20 0.69 0.68 0.69

27% 25% 56% 14% 25% 57%

TEN

26.3

0.0

0.92

43%

EBO FPA FPH MVN RAK SCT SKL

12.2 -256.7 19.5 8.6 23.0 51.0 10.1

16.8 -17.3 27.0 10.5 44.8 132.3 12.5

0.77 1.89 0.60 1.15 1.57 1.29 0.95

20% 72% 8% 23% 17% 23% 41%

HBY RBC SLG

10.8 258.4 -3.4

15.1 -107.2 -3.1

1.26 0.65 2.50

59% 17% 8%

PricewaterhouseCoopers | Page 2

The Cost of Capital Report

As at 31 March 2010
Input Assumptions: Market Risk Premium Risk Free Rate Of Return 7.5% 5.5%

pwc

Marginal Tax Rate On Debt Investor Tax Rate On Equity

30.0% 30.0%

Company

NZSE Code

EBIT Multiple

NPAT Multiple

Equity Beta

D / (D + E) Ratio

WACC

Leisure & Tourism MCK Hotels New Zealand Ltd Sky City Entertainment Ltd Tourism Holdings Ltd Media & Telecommunications Sky Network Television Ltd Telecom Corp of New Zealand Ltd Teamtalk Ltd Mining New Zealand Oil & Gas Ltd Ports Auckland International Airport Ltd Lyttelton Port Co Ltd Northland Port Corporation (NZ) Ltd Port of Tauranga Ltd South Port New Zealand Ltd Property AMP NZ Office Trust CDL Investments New Zealand Ltd ING Medical Properties Trust ING Property Trust Kiwi Income Property Trust Goodman Property Trust National Property Trust Property for Industry Ltd Finance & Other Services Abano Healthcare Group Ltd Metlifecare Ltd Ryman Healthcare Ltd New Zealand Exchange Ltd Pyne Gould Corporation Ltd Textiles & Apparel Cavalier Corporation Ltd Transport Air New Zealand Ltd Mainfreight Ltd Freightways Ltd Overseas Guinness Peat Group Plc GuocoLeisure Ltd

MCK SKC THL

15.4 12.5 133.6

20.2 16.7 -47.9

0.45 1.35 1.78

16% 34% 44%

7.0% 11.6% 12.8% 11.2% 9.8% 8.5% 7.1% 8.9% 9.0% 9.0% 9.3% 6.5% 6.9% 9.1% 7.8% 9.0% 6.7% 8.4% 7.0% 7.1% 6.9% 7.1% 7.5% 6.8% 7.0% 9.7% 7.7% 10.0% 11.1% 7.6% 8.8% 12.2% 12.2% 8.8% 12.7% 9.5% 9.5% 10.2% 9.0% 9.8% 9.3%

SKT TEL TTK

16.5 9.0 9.9

23.6 10.5 12.5

0.96 0.98 0.47

22% 42% 36%

NZO

7.0

10.6

0.70

3%

AIA LPC NTH POT SPN

22.9 17.2 -139.6 16.2 13.1

62.3 25.1 -238.8 23.4 18.2

0.99 0.38 0.40 0.75 0.53

31% 22% 0% 19% 0%

APT CDI IMP ING KIP GMT NAP PFI

-4.6 36.2 71.5 -34.8 -11.2 -32.1 -10.7 -888.3

-3.9 52.0 -79.6 -6.4 -4.8 -11.7 -4.4 -20.3

0.44 0.60 0.49 0.67 0.60 0.58 0.66 0.45

28% 0% 39% 55% 50% 40% 54% 33%

ABA MET RYM NZX PGC

9.7 -10.2 21.4 6.1 27.3

9.9 -2.3 15.6 6.2 -9.2

1.26 1.19 1.21 1.03 1.16

55% 75% 41% 10% 74%

CAV

9.7

12.3

1.41

29%

AIR MFT FRE

21.8 11.2 11.4

65.1 14.9 14.0

1.38 1.36 0.96

64% 17% 30%

GPG GLL

59.6 13.3

-34.7 7.9

1.37 1.11

45% 48%

Market Weighted Average

PricewaterhouseCoopers | Page 3

For further information

Auckland Private Bag 92162 Ph 09 355 8000 Fax 09 355 8001 David Bridgman david.bridgman@nz.pwc.com Eric Lucas eric.lucas@nz.pwc.com Justin Liddell justin.g.liddell@nz.pwc.com Richard Souter richard.souter@nz.pwc.com Wellington P O Box 243 Ph 04 462 7000 Fax 04 462 7001 Bruce Wattie bruce.wattie@nz.pwc.com John Redmayne john.redmayne@nz.pwc.com Christchurch P O Box 13244 Ph 03 374 3000 Fax 03 374 3001 Craig Armitage craig.armitage@nz.pwc.com

www.pwc.com/nz

Disclaimer: The Cost of Capital Report is intended as an overview of WACC as at 31 March 2010. Readers are advised that before acting on any matter arising in this report, they should consult PricewaterhouseCoopers Corporate Finance. 2010 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to PricewaterhouseCoopers New Zealand or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity.

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