Infratil Limited · NZX:IFT
Infratil — Shareholder Meeting (August 2016)
35 slides from Infratil's shareholder meeting presentation, Aug 24, 2016
Slide 1: Infratil Annual Meeting
Infratil Annual Meeting For personal use only 24 August 2016
Slide 2: Agenda
Infratil Annual Meeting Agenda For personal use only • Chairman’s Introduction • Chief Executive’s Review • Presentation of the Annual Report for the year ended 31 March 2016 and the report of the auditor • Questions from Shareholders • Resolutions • Close and Afternoon Tea Amora Hotel, 170 Wakefiel
Slide 3: Mark Tume, Chairman
Mark Tume Chairman For personal use only • Independent Director since 2007, Chair since 2013 and Chair of Nomination Committee • Chair of RetireAustralia • Retiring by rotation and up for re-election INFRATIL 2016 3
Slide 4: Humphry Rolleston, Director
Humphry Rolleston Director For personal use only • Independent Director since 2006 • Not up for re-election INFRATIL 2016 4
Slide 5: Marko Bogoievski, CEO and Director
Marko Bogoievski CEO and Director For personal use only • Joined Morrison & Co in 2008, Chief Executive of Infratil and on the Infratil Board since 2009 • Director of Trustpower Limited • Not up for re-election INFRATIL 2016 5
Slide 6: Paul Gough, Director
Paul Gough Director For personal use only • Independent Director since 2012 • Not up for re-election INFRATIL 2016 6
Slide 7: Alison Gerry, Director
Alison Gerry Director For personal use only • Independent Director since 2014 and Chair of Audit & Risk Committee • Retiring by rotation and up for re-election INFRATIL 2016 7
Slide 8: Duncan Saville, Director
Duncan Saville Director For personal use only • Foundation Director • Director of Infratil’s Manager, Morrison & Co and Director of the manager of Utilico (2.5% Infratil shareholder) • Retiring following today’s Annual Meeting INFRATIL 2016 8
Slide 9: Anthony Muh, Alternate Director
Anthony Muh Alternate Director For personal use only • Director since 2007, Alternate Director for Duncan Saville since 2010 • Joined Morrison & Co in 2010 – Hong Kong based • Stepping down following the retirement of Duncan Saville INFRATIL 2016 9
Slide 10: Chief Executive's Review
Infratil Annual Meeting For personal use only Chief Executive’s Review
Slide 11: 2015/16 Financial Overview
2015/16 Financial Overview Steady growth in earnings as we reposition for the future For personal use only • Underlying EBITDAF from continuing operations of $462 million, an increase of 2.5% • Record net parent surplus of $438 million boosted by sale of remaining Z Energy stake and iSite • Internal
Slide 12: Expect major changes to future business models and competitive environment
Expect major changes to future business models and competitive environment For personal use only THEME IMPLICATION • The dominant features of current financial markets are low interest rates and significant sources of capital competing for investment opportunities Low interest rates • We are discipl
Slide 13: The Infratil plan for the next phase
The Infratil plan for the next phase Continue to invest in ideas that matter For personal use only • Optimise value and performance while the portfolio is being repositioned – Hit targets and assess opportunities for consolidation or divestment • Back views on decarbonisation, retirement and data se
Slide 14: Higher return development ideas supported by core assets generating cash
Higher return development ideas supported by core assets generating cash For personal use only • Total returns to shareholders are enhanced by building and maintaining a well balanced Core assets generating free cash portfolio – Portfolio composition needs to also take account of credit metrics and
Slide 15: Portfolio evolution
Portfolio evolution Core portfolio changes becoming more evident For personal use only • Since 2011, divestments in Lumo, Z Energy and iSite have provided capital for redeployment • Investments in Metlifecare, RetireAustralia, Canberra Data Centres (post FIRB) and ANU student accommodation are layin
Slide 16: Canberra Data Centres
Canberra Data Centres Strong platform opportunity within the data infrastructure sector For personal use only • CDC is a market leader in secure, data centre services to leading government On a standalone basis, CDC provides: and commercial entities • Compelling industry • Attractive entry point int
Slide 17: Australia National University student accommodation
Australia National University student accommodation Emerging standalone sector with attractive yield and development profile For personal use only • Student Accommodation is an emerging On a standalone basis, asset class in Australia, supported by ANU provides: strong domestic and international • Hi
Slide 18: Group capital expenditure and investment
Group capital expenditure and investment Providing a catalyst for future growth For personal use only Investment ($Millions) 2016 2017 • Trustpower’s current forecast represents its forecast operational and maintenance capex programme Trustpower 119.3 50-60 • Wellington Airport has several major cap
Slide 19: Capital structure
Capital structure We are well placed to commit when we see value For personal use only • Infratil’s existing portfolio is forecast to deliver above-average total returns over the next five years – Assuming no changes to the current portfolio and realistic returns on current proprietary development o
Slide 20: Demerger of Trustpower Limited
Demerger of Trustpower Limited The power of two For personal use only • Trustpower is a diverse company, including electricity, gas and telecommunications retailing in New Zealand, and Australasian wind and hydro development and generation • The Demerger will create two independent entities: - Tilt
Slide 21: "New" Trustpower
“New” Trustpower Big enough to deliver and small enough to care For personal use only • Utility company involved in the development, ownership and operation of hydro generation facilities in New Zealand and Australia, and the sale of energy and telecommunications services to retail customers in New
Slide 22: Tilt Renewables
Tilt Renewables Well placed to capitalise on the Australian RET opportunity For personal use only • Tilt Renewables will be an owner, operator and developer of a number of Australasian wind farms and an extensive wind and solar development pipeline • Portfolio includes seven wind farms in Australia
Slide 23: Wellington Airport capital expenditure programme
Wellington Airport International Airport $300m capital expenditure programme is currently underway For personal use only • A $300 million capital expenditure programme is currently underway including upgrades of the domestic and international terminals, construction of a land transport hub and plans
Slide 24: Wellington Airport: About to become more connected
Wellington Airport International Airport About to become more connected For personal use only The new Singapore Airlines service will link Wellington (via Canberra) to its Global Hub from next month • Over 1,500 passengers fly long haul to and from the Wellington region every day • Currently, Wellin
Slide 25: RetireAustralia
RetireAustralia Implementing plans to provide residents with more of what they want For personal use only • The first full financial year in the portfolio saw strong sales momentum with 102 new sales and 376 resales • Well underway in establishing a platform for future growth. • Several key new hire
Slide 26: NZ Public Transport – NZ Bus
NZ Public Transport – NZ Bus New contracting model has begun to roll out For personal use only Public Transport Operating Model • The transition out of the South Auckland units is progressing well with all employees expected to remain with the NZ Bus business • Bids for West Auckland units were subm
Slide 27: Thinking ahead to new public transport business models
NZ Public Transport – NZ Bus Thinking ahead to new public transport business models For personal use only Investment in Fleet and Technology • An agreement has been entered with Wrightspeed to purchase electric powertrain technology for adaptation of existing fleet and integration into new fleet. As
Slide 28: 2016/17 Outlook
2016/17 Outlook Previous Guidance Maintained For personal use only • Underlying EBITDAF1 trends reflect current Investment ($Millions) 2016 2017 momentum and changes in the portfolio Actual Outlook including: Underlying EBITDAF 462.1 485-525 - A full period contribution from King Country Energy Oper
Slide 29: Summary
Summary Infratil – getting set for above average returns for the next 10 years For personal use only Infratil is set to perform well under a number of scenarios • Underlying performance of existing assets • Quality of people and capability • Strength of origination pipeline • Access to capital and c
Slide 30: Presentation of the Annual Report and auditor's report
For personal use only Presentation of the Annual Report for the year ended 31 March 2016 and the report of the auditor
Slide 31: Questions from Shareholders
For personal use only Questions from Shareholders
Slide 32: Resolution: Re-election of Mr Mark Tume
Resolution 1 Re-election of Mr Mark Tume For personal use only • Re-election of Mr Mark Tume: That Mark Tume who retires by rotation in accordance with the Company’s constitution and NZX Main Board/Debt Market Listing Rule 3.3.11 and is eligible for re-election, be re-elected as a director of the Co
Slide 33: Resolution: Re-election of Ms Alison Gerry
Resolution 2 Re-election of Ms Alison Gerry For personal use only • Re-election of Ms Alison Gerry: That Alison Gerry who retires by rotation in accordance with the Company’s constitution and NZX Main Board/Debt Market Listing Rule 3.3.11 and is eligible for re-election, be re-elected as a director
Slide 34: Resolution: Auditor's remuneration
Resolution 3 Auditor’s remuneration: For personal use only • Auditor’s remuneration: That the directors be authorised to fix the auditor’s remuneration. For Against Discretionary 255,438,204 (98.92%) 750,089 (0.29%) 2,037,955 (0.79%) INFRATIL 2016 34
Slide 35: Close and Afternoon Tea
For personal use only Close and Afternoon Tea