Removed key performance indicators

The following KPIs have been removed and will not be reported on in future Annual Reports. The new KPIs have been reported under KPIs.

Key effectiveness indicators

1. Extent of karri forest regenerated relative to area harvested

The increased area of clearfelling in 2016 was unable to be fully replanted that year. Performance in 2017 caught up on that carry-over area in a timely manner.

2. Timeliness of karri forest regeneration

Target: 75 per cent of areas clearfelled is regenerated within 18 months and 100 per cent within 30 months

The regeneration program has been able to consistently meet the target of timely regeneration of karri forest.

3. Total payments to government (provide a return on investment to government)

This measure highlights the direct financial return to the government in the form of dividends and taxes from the previous financial year.

For 2017-2018, the FPC paid dividend and taxes of $5.9 million. This included a dividend payment of $3.6 million.

Key efficiency indicators

1. Ratio of earnings before interest and tax to total assets (return on total assets)

This indicator measures how efficient the FPC is in using its assets to generate earnings. It is expressed as earnings before interest, tax and valuation changes over total assets.

2. Stumpage revenue

The stumpage revenue is the timber sales revenue less production charges for harvest and haulage costs, including processing and marketing costs for sandalwood.

Stumpage revenue in 2017-2018 was 11.3 per cent lower than target and also lower than the actual from the previous year.

For the 2017-2018 year, there was a 30.9 per cent decrease in sandalwood stumpage revenue as well as a decrease of 16.5 per cent in native forest.

Plantation stumpage revenue was higher than the previous year and 35.7 per cent above target for the year.