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Annual Enterprise Survey: 2009 financial year (provisional)
Embargoed until 10:45am  –  01 October 2010
Commentary

Introduction

The Annual Enterprise Survey (AES) is New Zealand’s most comprehensive source of financial statistics and provides annual financial performance and financial position information about industry groups operating within New Zealand. The industries covered in the survey contribute approximately 90 percent of New Zealand’s gross domestic product (GDP). AES is an important source of data for GDP as it is used to calculate detailed annual national accounts.

Data used in this survey is collected from a number of sources, including:

  • administrative data from Inland Revenue (IR 10)
  • central government data from the Treasury's Crown Financial Information System (CFIS)
  • superannuation data from the New Zealand Companies Office (Ministry of Economic Development)
  • local government data from Statistics New Zealand's local authority statistics
  • a sample survey of business financial data representing the rest of the population.

Statistics NZ would like to thank respondents for their contribution to this survey. We also acknowledge the cooperation of Inland Revenue, the Treasury, and the New Zealand Companies Office for providing administrative data that enables us to lower the size of the postal sample and thereby reduce compliance costs on the business community.

Redesign of the Annual Enterprise Survey in 2009

The AES was last redeveloped in 1999. In 2009, Statistics NZ reviewed the survey against current and future user needs, and subsequently introduced a number of methodological changes for the 2009 financial year.

These changes were implemented to improve data quality, enhance business processes, and reduce respondent load.

Please read 'Technical notes' in this release for further information regarding the changes introduced from this redesign.

Structural change in the construction division

In the 2009 financial year, a significant restructure occurred in the construction division. The result of this restructure is that some data captured in the construction industry in both the 2008 and 2007 financial years, will now be captured as part of the central government industry for the 2009 financial year forward.

Changes to data on local authorities

The AES uses data from the Local Authority Census (LAC) to produce industry based statistics about local authorities. In 2009, Statistics NZ and the Department of Internal Affairs worked together to redesign the LAC. A larger range of activity and transaction information was introduced with the aim of having the redesigned LAC questionnaire align more closely with the way councils record this data in their accounting systems.

Please read 'Technical notes' in this release for further information regarding these changes.

Overview of results

In the 2009 financial year:

  • Total income for all industries increased by 0.4 percent, to $569,227 million.
  • Total expenditure for all industries increased by 2.5 percent, to $533,846 million.
  • Surplus before income tax, which is total income less total expenditure (plus/minus change in stocks), across all industries was $36,109 million. This is a decrease of $13,687 million from the 2008 financial year.
  • Salaries and wages paid to employees across all industries increased by $3,431 million (4.0 percent). This compares with an increase of 8.4 percent in 2008.
  • The total value of fixed assets grew by 7.0 percent, to $492,225 million, lower than the 10.3 percent increase in 2008.
  • The current ratio, which measures current assets to current liabilities, was 82.7 percent. This is slightly higher than the 82.5 percent recorded in 2008.
  • Half of the 16 industry groups recorded increases in total income. Manufacturing recorded the largest increase, at $4,571 million (or 5.0 percent). This is slightly lower than the industry's $4,841 million (5.6 percent) increase in 2008.
  • Financial and insurance services recorded the strongest decrease in total income, down by $6,051 million (7.5 percent). 
  • Net additions to fixed assets, which is total additions less total disposals, decreased by $6,782 million (14.6 percent).

 

 Graph, All industries – net additions to fixed assets, 2002–09 financial years.

Detailed industry data availability

Data collected in the AES is available at various levels of detail. The tables included in this release are at New Zealand Standard Industrial Output Categories (NZSIOC) level one (16 industries), and a further disaggregation is contained in the supplementary tables, available on the Statistics NZ website (51 industries). A finer level of detail is available on request, subject to confidentiality and quality constraints. Depending on the detail and type of analysis required, there are a number of available options. Statistics NZ will advise on the most appropriate data to suit a user's needs. The focus of the remainder of this commentary is information to help users understand more about the AES and how it can be used.

Manufacturing industry

Data on the manufacturing industry provides an example of the range of information available.

In the 2009 financial year, the manufacturing industry (ANZSIC06 division C) recorded a 4.6 percent increase in sales ($4,127 million), and a 9.9 percent increase in surplus before income tax. The sales increase is similar to that for the 2008 financial year, when manufacturing showed a 5.4 percent ($4,626 million) increase in total sales. Surplus before income tax increased by 2.9 percent in 2008.

As presented in the following graph, 2009 is the sixth consecutive year of increases in total sales and total income. 

 Graph, Manufacturing industry – total income and operating surplus, 2002–09 financial years.

Food product manufacturing is the largest sub-industry within manufacturing, contributing 34.5 percent to the industry's total income. Food product manufacturing had a moderate $1,603 million (5.2 percent) increase in sales, which led to a $1,555 million (4.9 percent) increase in total income in 2009. Total expenditure decreased by $522 million (1.7 percent), leading to a very strong $1,940 million increase in surplus before income tax.

More detailed financial performance and position data are available in the supplementary tables.

 Graph, Total manufacturing income by industry, 2009 financial year.

Further information for users

The AES provides a wealth of information to help users understand the structure and performance of industries within the New Zealand economy. When using AES data, it is important to be aware that there are a number of design issues that may impact on results.

These issues are:

1. Results in the AES can be affected by how companies structure themselves, which can affect how their data is captured and reported in the AES. Large corporates often set up separate entities to manage different divisions of their business. These divisions are classified based on their predominant activity. For example, their administration (head office) and their asset-owning activities may be classified to management and related consulting services (in division M), and to financial asset investors (in division K), respectively. This may mean that a manufacturing unit will not have these support activities recorded in the manufacturing industry.

If a business is divided into different divisions, this may mean that the AES results will include inter-company flows between divisions. These flows are referred to as gross flows.

2. The time series of the AES can be affected by the restructuring of companies. For example, if the various divisions within a company were to be restructured or amalgamated, then the following could happen:

  • the consolidation of these units would remove the gross flows and leave net flows
  • the industrial classification of the resulting unit would be determined by predominant activity and the activity in the other industries would disappear
  • value added would remain the same in both options.

The reverse may also occur, when restructuring results in net flows being represented in a gross form.

3. The 'all industries' table is a summation of divisional tables and therefore includes gross flows.

4. AES results are presented for a nominal March year. However, the data is collected from businesses with balance dates between 1 October 2008 and 30 September 2009. The table below lists, for each industry, the predominant balance date by total income.

Predominant balance dates by industry
Industry Year ended
A – Agriculture, forestry, and fishing March
B –  Mining December
C –  Manufacturing December
D –  Electricity, gas, water, and waste services June
E –  Construction March
F –  Wholesale trade March
G & H –  Retail trade and accommodation March
I –  Transport, postal, and warehousing June
J –  Information media and telecommunications June
K –  Financial and insurance services September
L –  Rental, hiring, and real estate services March
M & N –  Professional, scientific, technical, administrative, and support services March
O –  Public administration and safety June
P –  Education and training December
Q –  Health care and social assistance June
R & S –  Arts, recreation, and other services March
Note: This table has been produced using weighted total income data and therefore reflects the population as it is represented in the AES. The count of predominant balance dates may produce different results to this table, which is based on total income. This is because the count is dominated by the small businesses sourced from IR 10s, which have small values of total income.

 

5. In the postal collection, additions and disposals of fixed assets are specifically requested. However, in the administrative data source (IR 10), only the closing book value of fixed assets and depreciation are requested. Hence, where IR 10s are used, values for additions and disposals are modelled.

6. Statistics NZ has a legal obligation to protect companies' privacy and industry-sensitive information. Hence, all tables released have confidentiality rules applied to protect the information supplied by an individual company. Once all confidential financial items have been identified, further items are suppressed to complete the protection of the confidential value.

Use of Annual Enterprise Survey data

In addition to its use in the national accounts, the AES is also a data source for a number of other existing and upcoming Statistics NZ outputs, including:

Since the last redesign of the AES, there has been increased demand for non-standard output from users. Statistics NZ is providing more input into research surrounding these requests. Examples include:

  • the Reserve Bank of New Zealand's use of financial position data in its Financial Stability Report
  • the Centre for Advanced Engineering has established a set of national key performance indicators for the construction industry, one of which is a profitability indicator for which AES data is used
  • occasional requests from other government departments, such as the Ministry of Economic Development
  • requests by turnover bands, which can add significant analytical value and are a popular request
  • requests from businesses for financial data to gauge their performance against industry averages
  • value added per employee count, and turnover per employee count.

 

For technical information contact: 
Nicholas Cox or Joanna Heeney 
Christchurch 03 964 8700
Email: info@stats.govt.nz

Next release ...

Annual Enterprise Survey: 2010 financial year (provisional) will be released in September 2011.

 

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