Infratil Limited · NZX:IFT
Infratil — Investor Day (2012)
19 slides from Infratil's investor day presentation, 2012
Slide 1: NZ Bus Business Update: Regulatory Change, Growth and Operational Effectiveness
NZ BUS Business Update: Regulatory Change, Growth and Operational Effectiveness
Slide 2: NZ Bus – Where are we at today?
NZ Bus – Where are we at today? • Regulatory position is firming, and is expected to deliver a framework that will incentivise all parties to invest for growth. • Contracts will be procured over the next 3 years, with a combination of negotiated and tendered outcomes • Significant growth is being ex
Slide 3: Patronage Growth
Patronage Growth PT trips by mode: 2005/06 – 2010/11 Auckland ~45 trips per Wellington capita per 66 annum 61 5 Ferry 59 5 ~74 trips per 54 4 10 Rail 51 52 4 8 8 capita per 4 4 7 annum 5 6 35 34 35 35 35 35 0 0 0 0 0 0 Ferry 11 11 12 12 11 11 Rail 51 Bus 47 48 42 42 43 23 23 23 23 24 24 Bus 05/06 06
Slide 4: Growth Opportunity
Growth Opportunity PT trips per capita by mode: 168 2008-2010 3 Buses form major Auckland Wgtn rates 146 component of highest 140 growing at solid, but 131 use networks rapid rates, room for 124 19 2 driven by growth 110 32 3 75 investment exists 45 97 74 77 165 56 70 63 66 68 25 2 33 5 121 9 11 25
Slide 5: Population Growth
Population Growth +463,800 NZ Average (16%) +53,300 Population growth alone will significantly increase PT trips
Slide 6: Investment leads to growth
Investment leads to growth High growth in Auckland after B.Line and Flagship investment B Line corridor PAX analysis - Mt Eden Road - Total pax by month Auckland Busway 10 Min fequency 5 Min fequency investment 33 % growth Total 12 Mth Rolling Average
Slide 7: Well Positioned Facilities
Well Positioned Facilities NZ Bus has sites well positioned to serve the core PT networks
Slide 8: Financial History
Financial History Passenger trips (m) Revenue (NZ$m) 2.8% growth 55 55 57 nationally, 7% 198 197 204 53 52 in Auckland 174 178 31 110 FY07 FY08 FY09 FY10 FY11 HY12 FY07 FY08 FY09 FY10 FY11 HY12 CAGR = 2.6% CAGR = 4.8% Cost efficiencies and productivity EBITDAF ($m) Cost efficiencies EBITDAF per bus
Slide 9: Regulatory Position
Regulatory Position A sustainable market Current Expected with incentive for all parties •All services tendered •>50% of services retained on negotiated terms, remainder • Targets commercial tendered outcomes for both •Mixture of net and gross •Net contracts with incentives for parties contracts bot
Slide 10: PT Procurement Benchmark
PT Procurement Farebox Procurement recovery type Year One Year Two Year Three 55% High 2. Negotiated Tranche 1 Tranche 2 Tranche 3 6+6 or (26%) (27%) (2%) 12+6 Year Contracts Benchmark Benchmark Benchmark All routes 45% 1. Tendered Tranche 1 Tranche 2 Tranche 3 Low 6+3 Year (16%) (19%) (10%) Contrac
Slide 11: Market Outlook
Market Outlook Auckland and Wellington are NZ’s two largest public transport (‘PT’) markets, with significant growth potential • PT usage growing in Auckland and Wellington, however still below international peers – especially Auckland – indicating substantial scope for growth • Auckland developing
Slide 12: Market Outlook
Market Outlook Government has revised PT legislation, with new contracting models expected to drive investment and growth • Targets commercial outcomes and constructive partnerships between Councils and PT operators • Performance targets and risk/reward frameworks create incentives to grow, invest,
Slide 13: Investment / Increased Capabilities
Investment /Increased Capabilities • Fleet • 103 new state of art ADL buses delivered to date, and a further 133 committed • Facilities • All facilities receiving makeovers, and new benchmark set at Onehunga base • Training • Major focus on safety and training – Pathway to Safer Driving • HSSE • Str
Slide 14: Strategic Programme
Strategic Programme Utilisation Requisition to Pay • Utilise fleet and staff effectively. • Implement a standardised process and system for all procurement. Timetable Inventory Management • Work with authorities to improve timetabling and increase reliability • Systems to improve assurance of parts
Slide 15: Conclusion
Conclusion • Regulatory position is firming, and is expected to deliver a framework that will incentivise all parties to invest for growth. • Contracts will be procured over the next 3 years, with a combination of negotiated and tendered outcomes • Significant growth is being experienced in Auckland
Slide 16: Questions?
Questions?
Slide 17: Back Up Slides
Back Up Slides
Slide 18: Global Trends Driving PT
Global Trends Driving PT Demand Environmental Regulatory Consolidation Rise of mobility Global warming Privatisation Regional consolidation Aging Carbon pricing Contracting models Global expansion Congestion Emissions standards Global trend Continued growth in Increased demand, Major new markets ope
Slide 19: Business Overview
Business Overview NZ Bus primary operations are in Auckland and Wellington • 57m pax trips • Auckland: 680 buses, approx 62% market share • Wellington: 383 buses, approx 75% market share; NZ: approx 58% market share • 1,900 staff, including approx 1,650 operators • Operating from strategically place