Infratil Limited · NZX:IFT
Infratil — Shareholder Meeting (August 2020)
40 slides from Infratil's shareholder meeting presentation, Aug 20, 2020
Slide 1: Infratil Annual Meeting 20 August 2020
Infratil Annual For personal use only Meeting 20 August 2020
Slide 2: Agenda
Infratil Annual Meeting For personal use only • Chair’s Introduction Agenda • Chief Executive’s Review • Presentation of the Annual Report • Shareholder Questions • Resolutions, including Director elections and Scrip Option • Close Infratil Annual Meeting presentation - 2020 2
Slide 3: Online participation
Infratil Annual Meeting For personal use only Online participation The voting box Question box Infratil Annual Meeting presentation - 2020 3
Slide 4: Alison Gerry, Independent Director and Chairperson of the Meeting
Alison Gerry Independent For personal use only Director and Chairperson of the Meeting • Independent Director since 2014 • Chair of Audit and Risk Committee • Member of the Manager Engagement Committee • Member of Nomination and Remuneration Committee • Director of Wellington Airport Infratil Annual
Slide 5: Mark Tume, Chair and Independent Director
Mark Tume Chair and For personal use only Independent Director • Independent Director since 2007 • Chair since 2013 • Chair of the Manager Engagement Committee • Chair of Nomination and Remuneration Committee • Director of RetireAustralia Infratil Annual Meeting presentation - 2020
Slide 6: Marko Bogoievski, Chief Executive Officer and Director
Marko Bogoievski Chief Executive Officer For personal use only and Director • Chief Executive of Infratil and Director since 2009 • Chief Executive of H.R.L. Morrison & Co Group • Chair of Vodafone New Zealand • Up for re-election Infratil Annual Meeting presentation - 2020 6
Slide 7: Paul Gough, Independent Director
Paul Gough Independent For personal use only Director • Independent Director since 2012 • Member of Manager Engagement Committee • Member of Nomination and Remuneration Committee Infratil Annual Meeting presentation - 2020 7
Slide 8: Kirsty Mactaggart, Independent Director
Kirsty Mactaggart Independent For personal use only Director • Independent Director since 2019 • Member of Audit and Risk Committee • Member of Manager Engagement Committee Infratil Annual Meeting presentation - 2020 8
Slide 9: Catherine Savage, Independent Director
Catherine Savage Independent For personal use only Director • Independent Director since 2019 • Member of Audit and Risk Committee • Member of Manager Engagement Committee Infratil Annual Meeting presentation - 2020 9
Slide 10: Peter Springford, Independent Director
Peter Springford Independent For personal use only Director • Independent Director since 2016 • Member of Manager Engagement Committee • Up for re-election Infratil Annual Meeting presentation - 2020 10
Slide 11: Chief Executive's Review
Chief Executive’s Review For personal use only Infratil Annual Shareholders Meeting 2020
Slide 12: Full Year Overview
Full Year Overview Full Year • Net parent surplus for the year of $241.2 million, Overview compared to a loss of $19.5 million in the prior year Increasing For personal use only • 13.5% growth in underlying EBITDAF reflected exposure to our changes in the portfolio and a growing contribution from da
Slide 13: Portfolio Resilience and Composition
Portfolio Resilience and • Infratil is well positioned in scalable high growth sectors with good jurisdictional Composition For personal use only diversification Recent • Recent investment focused on Renewable Energy and Data & Connectivity platforms: investment Tilt Renewables focused on • 336MW (
Slide 14: Portfolio Investment Sector
Portfolio Investment Sector Resilience and Composition 3% For personal use only 3% 3% 5% 5% Portfolio is 18% 11% positioned well to 11% 37% weather the COVID-19 crisis and relatively cushioned from 16% extended 17% economic downturns 27% 44% Trustpower Tilt Renewables Renewable Energy CDC Data Centr
Slide 15: Funding and Liquidity
Portfolio Resilience and Funding and Liquidity Composition For personal use only • $300 million equity raised in June 2020 provides additional balance sheet flexibility to fund growth investments across Infratil’s existing portfolio companies and to take advantage of Equity raised opportunities that
Slide 16: Portfolio Target Returns
Portfolio Target Returns For personal use only Infratil Expected Leverage Management Return to Portfolio Portfolio Returns Assumption Costs Shareholders composition and active Core 8–10% management Lower Risk Per annum approach Average net debt/ designed to Core Plus / 10–15% total capital 30% 1% of
Slide 17: Infratil Share Price Performance
Share Price Infratil Share Price Performance 6.00 Outstanding For personal use only returns delivered 5.00 $4.88 over the medium and long-term 4.00 $3.91 3.00 Total Shareholder Return Period TSR 2.00 1 April – 19 August 2020 27.7% 1 Year1 (2.1%) 5 Year1 9.6% 1.00 10 Year1 14.2% Inception – 26 years1
Slide 18: COVID-19 Update
COVID-19 Response COVID-19 Update Keeping the For personal use only • Prioritising the health & wellbeing of all lights on, employees and customers while ensuring helping to keep delivery across critical national infrastructure people working • Significant resources redirected to most urgent require
Slide 19: COVID-19: CDC Data Centres and Tilt Renewables
Assessing and responding to the impact of For personal use only CDC Data Centres Tilt Renewables COVID-19 • Increased demand for resilient digital • Melbourne-based team continues to work infrastructure effectively from home Strong platforms • Minimal forecast volume or profitability • Operating ass
Slide 20: COVID-19: Trustpower and Vodafone New Zealand
Assessing and responding to the impact of For personal use only Trustpower Vodafone New Zealand COVID-19 • Both generation and retail businesses • Significant impact on roaming revenue coping well with the operational challenges while international borders are closed. Operations created by COVID-19
Slide 21: COVID-19: Longroad and Galileo Green Energy
Assessing and responding to the impact of For personal use only Longroad Galileo Green Energy COVID-19 • Construction of Prospero I completed, and • Established in February 2020, with a work has commenced at Little Bear. small group of executives. Team Flexible Construction contractors continue to p
Slide 22: COVID-19: Wellington Airport and RetireAustralia
Assessing and responding to the impact of For personal use only Wellington Airport RetireAustralia COVID-19 • Team responded quickly, reducing • Protecting residents and staff remains operating costs and strengthening the RetireAustralia’s top priority as the Wellington balance sheet with additional
Slide 23: Trustpower
Trustpower • The long-anticipated closure of Tiwai Point Continuing to has depressed short-term electricity prices, pursue an For personal use only with Trustpower most affected at its ambition to be Waipori hydro facility near Dunedin the company that • The market will efficiently adapt to the clos
Slide 24: Tilt Renewables
Tilt • 469MW of renewable generation currently Renewables under construction, with both projects largely Delivering with For personal use only progressing on schedule energy • Final turbine at the 336MW Dundonnell wind farm was erected July 2020, however AEMO throughout the network connection challe
Slide 25: CDC Data Centres
CDC • Major clients with critical applications are Data Centres underpinning continued growth in Demand for For personal use only utilisation and expansion of data centre capacity resilient digital • Data sovereignty requirements continue infrastructure to support demand for local world-class contin
Slide 26: Vodafone New Zealand
Vodafone • Programme underway to address historic New Zealand underinvestment, including near term Focus on For personal use only enhancements to existing customer service capability and investment in new delivering an capability to deliver a simplified, lower- enhanced cost future operating model c
Slide 27: Longroad Energy
Longroad • Longroad is now a substantial player in the Energy U.S. renewable energy development market, Proven leaders in For personal use only with ownership interests in 1,132MW of solar and wind projects, while also servicing a Renewable further 1,478MW for third parties Energy • 692MW of develop
Slide 28: Galileo Green Energy
Galileo Green • Galileo was established in February 2020 to Energy develop wind and solar generation and Established to For personal use only energy storage projects across Europe develop wind • Led by senior executives based in Europe with deep renewable energy development and solar in-market exper
Slide 29: Wellington Airport
Wellington • Over 1999 to 2020 traffic grew at the rate of Airport NZ real GDP expansion (~2.75% p.a.) Lenders and For personal use only • Prior to COVID-19, traffic growth projections shareholders indicated that over $1 billion in capital investment was required over the next decade have been • Lev
Slide 30: RetireAustralia
Retire • Realising the benefits of a stable and highly Australia capable leadership and an outstanding Priority on For personal use only commitment to resident safety from the entire RetireAustralia workforce keeping residents • First purpose-built care facility in the and staff safe Glengara villag
Slide 31: Outlook
Outlook Given ongoing uncertainty over For personal use only • The following component guidance is the duration and available: impact of the • Trustpower FY2021 EBITDAF in the range COVID-19 of $190 million to $215 million pandemic Infratil • Tilt Renewables FY2021 EBITDAF in the range of A$65 milli
Slide 32: Summary
Summary • Infratil is well positioned in scalable high growth sectors, with diversified cashflows A resilient and generating reliable returns across several jurisdictions: ‐ The overweight position in renewable energy generation and data infrastructure balanced For personal use only should drive rel
Slide 33: Presentation of the Annual Report
Infratil Annual For personal use only Meeting Presentation of the Annual Report for the year ended 31 March 2020 and the report of the auditor
Slide 34: Shareholders' Questions
Infratil Annual For personal use only Meeting Shareholders’ Questions
Slide 35: Resolutions
Infratil Annual For personal use only Meeting Resolutions
Slide 36: Re-election of Marko Bogoievski
Resolution 1 Re-election of Marko For personal use only Re-election of Marko Bogoievski: Bogoievski That Marko Bogoievski be re-elected as a director of Infratil For Against Discretionary 311,042,633 3,393,374 8,084,748 (96.44%) (1.05%) (2.51%) Infratil Annual Meeting presentation - 2020 36
Slide 37: Re-election of Peter Springford
Resolution 2 Re-election of Peter For personal use only Re-election of Peter Springford: Springford That Peter Springford be re-elected as a director of Infratil For Against Discretionary 314,275,158 154,095 8,085,819 (97.45%) (0.05%) (2.51%) Infratil Annual Meeting presentation - 2020 37
Slide 38: Payment of incentive fee by Share Issue (Scrip Option)
Resolution 3 Payment of incentive fee For personal use only Payment of Incentive Fee by Share Issue (Scrip Option): by Share Issue That Infratil be authorised to issue to Morrison & Co Infrastructure Management Limited (Morrison & Co), within the time, in the manner, and at the price, prescribed in
Slide 39: Auditor's remuneration
Resolution 4 Auditor’s remuneration For personal use only Auditor’s remuneration: That the Board be authorised to fix the auditor’s remuneration. For Against Discretionary 301,229,317 13,190,659 8,247,711 (93.36%) (4.09%) (2.56%) Infratil Annual Meeting presentation - 2020 39
Slide 40: Thank you
Infratil Annual For personal use only Meeting Thank you