notes to the financial statements for the year ended 30 June 2001 Liabilities under the CPI Bond Facility have been classified as fixed rate liabilities maturing beyond five years for the following reasons: • The amount of principal expected to be retired through annuity payments over the next four years is not material; and • The outstanding principal, while subject to indexation for movements in the CPI, is effectively hedged against the effect of such movements as toll revenue which is the major component of the combined entity’s revenues, is also indexed for movements in the CPI. Net Fair Values of Financial Assets and Liabilities  20. SEGMENT INFORMATION 21. RECONCILIATION OF NET RESULT FROM ORDINARY ACTIVITIES  TO NET CASH FLOW FROM OPERATING ACTIVITIES 21 Net profit from ordinary activities  73,547  42,873 Depreciation and amortisation  7,347  5,052 Decrease/(Increase) in prepayments  4  (12) Increase in creditors  12,564  102 Increase in unearned income  6,160  - Decrease/(Increase) in debtors  203  (175) Increase in CPI Bonds  13,584  - Income capitalised into loans to Company  (217,724)  - Net cash (outflow)/inflow from operating activities  (104,315)  47,840 2001 2000 $’000 $’000 The Trust operates in one geographic segment in Victoria, Australia and one industry segment being the operation of the Melbourne City Link. The valuation of interest rate swaps reflects the estimated amounts which the Trust expects to pay or receive to terminate the contracts (net of transaction costs) or replace the contracts at their current market rates as at 30 June 2001. This is based on independent market quotations and is determined using accepted valuation techniques. As these contracts are hedging anticipated future interest payments, any unrealised gains and losses on the contracts, together with the cost of the contracts, are deferred and will be recognised in the measurement of the underlying transaction. The aggregate net fair value of interest rate swaps not recognised in the balance sheet (refer note 1 held at 30 June 2001 is a liability of $81.1 million (2000: $85 million). The carrying amount and net market value of financial assets and liabilities brought to account at balance date are the same.