International Public Partnerships Ltd · LSE:INPP
International Public Partnerships — Investor Day (November 2009)
184 slides from International Public Partnerships's investor day presentation, Nov 6, 2009
Slide 1: Investor Day
Investor Day 6 November 2002 "28
Slide 2: Section 1: Opening Remarks
Section i: Opening Remarks
Slide 3: Opening Remarks
Opening Remarks
Slide 4: Agenda
Agenda 10:30 Arrival 11:00 Introduction & Welcome - Keith Dorrian, Chairman INPP 11:15 Dublin Criminal Courts - Hugh Blaney & Michael Gregory, Amber; Kevin O’Brien & Alan Coakley, P.J. Hegarty & Sons; Peter McGovern, Henry J Lyons 12:00 Tour of the facilities including court rooms, judge’s chambers,
Slide 5: Opening Remarks: Presenter Keith Dorrian
Presenter Keith Dorrian, Chairman, International Public Partnerships Keith, a resident of Guernsey, is an experienced professional in the banking, finance and fund management industries. A former committee member of the Opening Remarks Guernsey Investment Fund Association he was, until his retiremen
Slide 6: INPP Investment Goals
INPP Investment Goals 5
Slide 7: Investment Goals
Investment Goals 1. Sustainable and Growing Yield 2. Increase in Capital Value 3. Robust Inflation Protection 4. Continued Accretive Investment Activity
Slide 8: Sustainable and Growing Yield
Sustainable and Growing Yield Distribution of 5.55 pence per share for 2009 (>5% yield). This compares favourably to yield on FTSE All Share of 3.4%1. Distributions paid entirely by operating cashflow and forecast to do so until at least 2038: 1. Numis Securities Research Note: “Where to Find Income
Slide 9: Increase in Capital Value
Increase in Capital Value INPP has achieved net asset value (NAV) growth of 12%1 since IPO: 1. From IPO to 30 June 2009, the date of the Company’s last published Net Asset Value. Solid potential for future growth in NAV as portfolio matures2: This compares favourably to the outlook for UK government
Slide 10: Robust Inflation Protection
Robust Inflation Protection • Movements in inflation result in changes to revenue due to the inflation linkage inherent in most of INPP’s concessions - 71% of total revenue is inflation linked, however operating costs also grow in line with inflation • Sensitivity analysis illustrates the modest cha
Slide 11: Continued Accretive Investment Activity
Continued Accretive Investment Activity INPP has a demonstrable track record of accretive investing: Period Base Case Portfolio IRR1 Acquisitions in period IPO Target: 8%-9% Seed Assets 31/12/2007 8%+ Reliance Rail Durham Courthouse BeNEX Tranche 2 Portfolio 30/6/2008 9%+ Tranche 3 Portfolio East Lo
Slide 12: Conservative Approach to Gearing
Conservative Approach to Gearing • Non-recourse Debt – Fixed term, fixed rate debt is employed at the underlying asset level and is non-recourse to INPP or any other asset – Each of the operating assets are comfortably meeting their debt service obligations: weighted average portfolio debt service c
Slide 13: Performance
Performance • A shareholder of INPP from IPO to 2 November has received a total return on investment of 26%1 • Since IPO to 2 November 2009 INPP has outperformed the following indices: – FTSE: FTSE All Share index by 28% – Real Estate: FTSE Global EPRA Development index by 46% – Private Equity: UK I
Slide 14: Performance Post B&B
Performance Post B&B INPP SHARE PRICE V INPP NAV 2.0% 12 June 2008 — Initial ASX query into B&B share price; 106 S&P places B&B on credit watch negative I | 21 August 2008 § — B&B Board & Management changes announced ingly 17 September 2008 —- S&P downgrades B&B to BB i: 10 November 2008 — S&P downg
Slide 15: Initiatives Since June 2009
Initiatives Since 30 June 2009 • Appointment of Numis Securities as broker to INPP • Appointment of John Whittle as fourth independent Director to INPP Board • Acquisition of additional stake in Brescia Hospital, Italy • Award of additional concessions to BeNEX, Germany • Acquisition of additional s
Slide 16: Appendix
Appendix 15
Slide 17: INPP Portfolio
INPP Portfolio 16
Slide 18: Portfolio
NHS LIFT Investments Project Location Mt Vernon UK Portfolio Alexandra Avenue Primary Care UK Ridge Hill and Stourbridge UK Beckenham Hospital UK Shirehampton and Whitchurch UK Garland Road Health Centre UK Sudbury Health Centre UK Gem Centre, Health Centre UK Church Road Health Centre UK Monks Park
Slide 19: Portfolio By Type
Portfolio By Type 2009 SECTOR BREAKDOWN 2009 OWNERSHIP SPLIT 30% 1% 1% Transport i | 100% ownership Education i | 50% - 100% ownership 12% 25% Health | | < 50% ownership Courts Police Authority 16% Govt Accom Health / Custodial Leisure 18%
Slide 20: Portfolio Diversification
Portfolio Diversification Total of 50 projects across several PPP/PFI sectors1 Contractual certainty of revenue streams: 99% of cashflows via availability-based mechanisms providing revenue certainty for life of concession Geographic diversity: 42% of assets located offshore, up from 10% at IPO Earl
Slide 21: Section 2: Case Study: Dublin Criminal Courts
Section 2: Case Study: Dublin Criminal Courts
Slide 22: Case Study: Dublin CCC (Irl)
Case Study: Dublin CCC (Irl)
Slide 23: Dublin CCC Case Study - Agenda
Dublin CCC Case Study - Agenda Presentation Team – Hugh Blaney/Michael Gregory – Amber Infrastructure – Peter McGovern – Henry J Lyons – Kevin O’Brien/Alan Coakley – P.J. Hegarty & Sons Agenda 1. Project Timeline 2. Forming the CCC Consortium 3. Designing the CCC 4. Building the CCC 5. Operations &
Slide 24: Case Study Presenters: Hugh Blaney
Case Study: Dublin Criminal Courts Presenters Hugh Blaney, Director New Business Development, Amber Hugh is a founding member of Amber Infrastructure. Previously he worked with the PPP/Infrastructure team at Babcock & Brown for 16 years. Hugh has overall responsibility for the development of new pri
Slide 25: Case Study Presenters: Peter McGovern
Private & Confidential Presenters Case Study: Dublin Criminal Courts Peter McGovern Dip. Arch B. Arch Sc. MRIAI, Henry J Lyons Architects Peter has been with the practice Henry J Lyons for over 10 years and has been a Director since 2003. He graduated with first-class honours from DIT Bolton Street
Slide 26: Case Study Presenters: Alan Coakley
Case Study: Dublin Criminal Courts Presenters Alan Coakley, Contracts Manager, P.J. Hegarty & Sons Alan joined PJH in 1994 as a Quantity Surveyor on the Intel project. In 1999 he was promoted to Project Manager also on Intel. He is currently Contracts Manager on the Design Build Criminal Courts Comp
Slide 27: Case Study: Dublin Criminal Courts Overview
Case Study: Dublin Criminal Courts Overview What is the asset? • New Central Criminal Court for Dublin to replace the Four Courts – one of the most iconic buildings in Dublin • A landmark building on the corner of Phoenix Park • 22 Courts complex (including district, jury and high security courts) •
Slide 28: Dublin CCC Key Facts
Case Study: Dublin Criminal Courts Dublin CCC What is it? Central Criminal Court • 22 courts • Jury accommodation • Judges suites • Courts Administration areas • Great Hall Where is it? Dublin, Ireland When did INPP invest? November 2007 How much will INPP 100% of the equity invest? What is the conc
Slide 29: Dublin CCC Project Timeline – Pre-bid
Dublin CCC Project Timeline – Pre-bid Pre Bid Visit Irish Court Services to discuss the Feb 2004 T Zero project Interview potential consortium partners • Design • Build • Facilities Management • Lenders • Legal & other advisors Select consortium partners and enter into a T + 12m bid agreement 8
Slide 30: CCC Consortium Partners
CCC Consortium Partners M&E ENGINEER SERVICES CONTRACTOR DESIGN & CONSTRUCTION TECHNICAL DBFOCo OTHER ADVISERS DESIGN STRUCTURAL ENGINEER FINANCIAL ADVISORS EQUITY LENDERS ICT 9
Slide 31: CCC Project Timeline - Bid Phase
CCC Project Timeline - Bid Phase April 2005 Stage 1 Invite Expressions of Interest from T + 15m prospective Candidates June 2005 Receive Expressions of Interest – 11 received T + 17m Candidates are pre-qualified and ranked on basis of information provided in PQQ 4 highest ranked candidates selected
Slide 32: CCC Project Timeline – Preferred Bidder Phase
CCC Project Timeline – Preferred Bidder Phase May 2006 Stage 3 Highest ranked tenderer selected as T + 28m preferred bidder leading to detailed negotiations May 06 – April 07 Obtain Planning Permission January 2007 T + 36m Finalise Building Design T + 39m Finalise FM Specification T + 39m Finalise c
Slide 33: CCC Project Timeline – Construction & Operations Phases
CCC Project Timeline – Construction & Operations Phases April 2007 Close – Finalise contract negotiations T + 39m Commence Construction May 2007 T + 40m FM Services Ramp Up April 2009 T + 63m Construction Completion – Operations Start November 2009 T + 70m February 2035 Operations End Date February
Slide 34: Case Study: Dublin CCC (Design)
Case Study: Dublin CCC (Design)
Slide 35: The Criminal Courts of Justice – Designing the solution
Private & Confidential The Criminal Courts of Justice – Designing the solution The design of any public building is a From the exterior, the building signals and The constructed design carries the weight, challenging task. The planning of criminal literally displays the accessibility of the permanen
Slide 36: Site Location
Private & Confidential Site Location Phoenix Park Collin’s Barracks Heuston Royal Hospital 15
Slide 37: Site location & context
Private & Confidential Site location & context Urban Context Located in a pivotal position at the western Set within the walls of the Phoenix Park, the fringes of the inner City of Dublin, the chosen site is located to the western end of Parkgate site for the Criminal Courts of Justice Street at the
Slide 38: External Environment
Private & Confidential a.2.3 External Environment This relates well to the bus links from the City Centre to the west operating along The scale and age of the buildings in the Parkgate Street, the rail links to Heuston immediate vicinity of the site vary, and Station, the Luas tram line and the Arro
Slide 39: Architectural Response
Private & Confidential Architectural Response Interpretation of Brief •Achieving efficient segregation of users which impacts favourably on functionality, safety and security As an important public / civic building, the • Legibility of the building in its urban Criminal Courts Complex must set high,
Slide 40: Typologies
Private & Confidential Typologies Court Building in Bordeaux Court Building in Laganside, Belfast 19
Slide 41: Functionality
Functionality Typical Section through Courtrooms Typical Twin Courtroom Layout 20
Slide 42: Initial Sketch Schemes
Initial Sketch Schemes Scheme A Arrangement:: Observations: • Four levels of courts stacked above a ground • The offices facing onto Parkgate St in the floor service level. Courts arranged around a prime location with the courts in a secondary central atrium in which are located the main location co
Slide 43: Initial Sketch Schemes
Initial Sketch Schemes Stone Circle of Beltany, Co. Donegal 22
Slide 44: The Circle
The Circle The Circle The Circle has long standing importance in Irish Architecture. It’s cultural & functional reinvention over time is seen as an act of inheritance. The circle can be traced through history as an important device in the making of place, particularly in the public realm. Whether th
Slide 45: Functionality
Functionality Custodial Circulation Judicial Ante-Chamber & Circulation Jury Circulation Jury Retiring Room Jury Horizontal Circulation Public Gallery Public Access to Courts 24
Slide 46: The Great Hall
The Great Hall The Great Hall The Great Hall, a very specific form of Judicial Lantern enclosed urban room, becomes the living heart and breathing soul of the (Library) Criminal Courts Complex. Its simple Office volumetric expression affords an equally Building Public Restaurant simple legibility. O
Slide 47: The Great Hall
The Great Hall rn HI] ] ’
Slide 48: Great Hall
Great Hall INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 49: Great Hall
Great Hall INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 50: Great Hall – Gallery
Great Hall — Gallery ahi a | aD a eS INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 51: Typical Jury Courtroom
Typical Jury Courtroom INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 52: Courtrooms
Courtrooms INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 53: Typical Jury Courtroom – View from Jury Box
Typical Jury Courtroom – View from Jury Box 33
Slide 54: South Elevation (Parkgate Street)
South Elevation (Parkgate Street) 34
Slide 55: Double Skin Façade – Thermal Principals
Double Skin Façade – Thermal Principals Summer schematic Winter schematic 35
Slide 56: Facade Assembly
Facade Assembly 36
Slide 57: Facade Assembly
Facade Assembly INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 58: Facade Assembly
Facade Assembly BSEEneeeeee | 4 4 (= mT iz oa INTERNATIONAL PUBLIC PARTNERSHIPS Mitt
Slide 59: Facade
Facade INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 60: View to Main Entrance
View to Main Entrance 40
Slide 61: View From Infirmary Road
View From Infirmary Road INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 62: Window to Park
Window to Park INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 63: 3D – Facade Detail at Entrance
3D – Facade Detail at Entrance 43
Slide 64: Case Study: Dublin CCC (Construction)
Case Study: Dublin CCC (Construction)
Slide 65: fl eo
7a b fl eo INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 66: Our Amber Experience: The Bid Period
Our Amber Experience The Bid Period: Introduced PJH to PPP (this is the first major accommodation PPP project in Ireland). Guided us through the documentation and the ITN process, and assisted us in managing the Design Build deliverables. Helped us to understand the risks, and were even-handed in ag
Slide 67: Our Amber Experience: Preferred Bidder Period
Our Amber Experience The Preferred Bidder Period: Led us through the negotiation process with the Courts. Genuinely represented the interests of the whole consortium during the negotiations. Debated, negotiated and agreed all the difficult issues during this period. 47
Slide 68: Our Amber Experience: Construction Period
Our Amber Experience The Construction Period: Led the consortium through the period. Particularly helped with certification. They were always available to us with guidance and advice, when we needed it. Proved to be a partner that understood our business. 48
Slide 69: Statistics – The Design / Construction People
Statistics – The Design / Construction People In Total: 35 consulting companies working on design 80 subcontract companies working on construction 550 peak labour force on site, with 100 others working in manufacturing off site Approximately 2,500,000 man hours expended on site 49
Slide 70: Statistics – The Building
Statistics – The Building Key Statistics State-of-the-art complex providing 22 courts, incl 16 jury courts, incl. The Great Hall 26 Judges chambers 16 Judges anti-chambers 16 Jury retiring rooms Jury assembly for 390 jurors 36 Custodial suites, capable of holding 100 people Office accommodation for
Slide 71: Statistics – Construction
Statistics – Construction Key Statistics Site area almost 2.5 acres 11 storey building, approx 27,000 m2 Diameter of Building – 80m, diameter of Great Hall - 40m 25,000 m3 concrete & 5,000 tonne rebar in frame 27 No. Lifts, 18 stair cores 1,400 doors Clad with 12,000 m2 glazing / cladding 52 kilomet
Slide 72: Tender Stage – The Site, Prior to Commencement
Tender Stage – The Site, Prior to Commencement 52
Slide 73: Our Impact
Our Impact 53
Slide 74: Construction Phasing
Construction Phasing Criminal Courts Complex Area ‘D’ Construction Phasing North West Area ‘A’ Corner Area ‘E’ Area ‘C’ Area ‘B’ 54
Slide 75: June 2007 – Construction Enabling
June 2007 – Construction Enabling 55
Slide 76: Issues – Sea Mines!
Issues — Sea Mines! INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 77: Sept 2007 – Early Foundations
Sept 2007 – Early Foundations 57
Slide 78: Nov 2007 – Circle Forming
Nov 2007 — Circle Forming INTERNATIONAL PUBL
Slide 79: Dec 2007 – Block A rises to 1st Floor
Dec 2007 – Block A rises to 1st Floor 59
Slide 80: Feb 2008 - Complexity of RC Build
Feb 2008 - Complexity of RC Build 60
Slide 81: Mar 2008 - Block A at 3rd Floor
Mar 2008 - Block A at 3rd Floor 61
Slide 82: May 2008 - Block D at 2nd Floor meets Block A
May 2008 - Block D at 2nd Floor meets Block A at 5th 62
Slide 83: May 2008 – Custody Suite Construction
May 2008 – Custody Suite Construction 63
Slide 84: Jul 2008 – Steel Bridges in Great Hall & Facade Commences
Jul 2008 – Steel Bridges in Great Hall & Facade Commences 64
Slide 85: Sep 2008 – Completion of Concrete Frame
Sep 2008 – Completion of Concrete Frame 65
Slide 86: Sep 2008 – Truss Installation
Sep 2008 – Truss Installation 66
Slide 87: Sep 2008 – Truss Installation, Major Milestone Achieved
Sep 2008 – Truss Installation, Major Milestone Achieved 67
Slide 88: Sep 2008 – Glazing Commences on Infirmary Road Elevation
Sep 2008 – Glazing Commences on Infirmary Road Elevation 68
Slide 89: Oct 2008 - Aerial
Oct 2008 - Aerial INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 90: Nov 2008 – Working towards Weather Tight
Nov 2008 – Working towards Weather Tight 70
Slide 91: Dec 2008 - Sample Court Room
Dec 2008 - Sample Court Room 71
Slide 92: Dec 2008 - Sample Jury Retiring Room
Dec 2008 - Sample Jury Retiring Room 72
Slide 93: Feb 2009 – Twin Skin Completion
Feb 2009 – Twin Skin Completion 73
Slide 94: Mar 2009 - Court Room Fit Out Progressing
Mar 2009 - Court Room Fit Out Progressing 74
Slide 95: Mar 2009 – Aerial
Mar 2009 — Aerial INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 96: April 2009 – Window to the Park Externally Taking Shape
April 2009 – Window to the Park Externally Taking Shape 76
Slide 97: Jun 2009 - Internal Finishes to Great Hall Progress
Jun 2009 - Internal Finishes to Great Hall Progress 77
Slide 98: Jul / Aug 2009 - Balcony & Bridge
Jul / Aug 2009 - Balcony & Bridge 78
Slide 99: Aug 2009 - Victim Support Reception & Office Completion
Aug 2009 - Victim Support Reception & Office Completion 79
Slide 100: Sep 2009 - Great Hall
Sep 2009 - Great Hall INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 101: Sep 2009 – Facade Complete
Sep 2009 — Facade Complete INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 102: Oct 2009 – Great Hall Complete
Oct 2009 – Great Hall Complete 82
Slide 103: Case Study: Dublin CCC (Asset Management)
Case Study: Dublin CCC (Asset Management)
Slide 104: CCC – Asset Management
CCC – Asset Management Story to date.... Preferred bidder stage – time well spent Good Partners Authority Well resourced Strong advisors Use of an output specification Build Contractor Best in class management ‘Driving’ a target programme Diligence Use of professional team Facilities Management Cont
Slide 105: Section 3: PPP Pricing Update
Section 33 PPP Pricing Update
Slide 106: Market Update November 2009
Market Update 6 November 2009 Conrad Williams
Slide 107: Agenda
Agenda • Introductions • PPP market update • Typical valuation process • Valuation issues in the current market • Outlook • Questions
Slide 108: PPP Market Update
PPP Market Update Primary markets • Global deal flow 2009 • Current UK activity UK Secondary markets • Dealflow • Motivations • Transaction “types” • Supply vs Demand shift
Slide 109: Typical valuation process
Typical valuation process Portfolio Value Base case Project equity project cash Discount rate valuation flows to equity Market discount rate Adjustment factors • Published data • Project -specific risks • Private data • Project -specific issues • Investor soundings. • Potential value enhancements.
Slide 110: Valuation issues in the current market
Valuation issues in the current market • Where is pricing now? • Methodologies and “market noise” on discounts rates…. • Nature of cash flows • Liquidity distortions? • Asset quality….has it changed? • So what are owners doing?
Slide 111: Outlook
Outlook • Current equity raising activity • Investment opportunities – growing or declining? • Impact of potential change of Government • Refinancing to return? • International dimension? • Pricing?
Slide 112: Section 4: INPP Valuation Process
Section 4: INPP Valuation Process
Slide 113: INPP Valuation Process
Private & Confidential INPP Valuation Process
Slide 114: INPP Valuation Process: Presenter
Presenter James Arthur, Fund Analyst, Amber James graduated from Melbourne University with a Bachelor of Commerce and Bachelor of Arts degree, and is a member of the Institute of Chartered INPP Valuation Process Accountants in Australia. Prior to joining Amber Infrastructure Group, James qualified w
Slide 115: Net Asset Value (NAV) Methodology
Net Asset Value (NAV) Methodology • INPP reports a Net Asset Value (NAV) every six months using discounted cashflow (DCF) methodology. INPP Discount Rate Methodology Notes Country Specific Risk Free Rate x% Country specific Completion Risk Premium + x% Stage of completion Revenue Risk Premium + x% 9
Slide 116: Net Asset Value (NAV) Methodology
Net Asset Value (NAV) Methodology Key INPP Project Assumptions Considerations Long Term Inflation 2.5% 71% of revenue inflation linked and most opex also inflation linked or periodically benchmarked. Long Term Deposit Rates c. 4% Interest income in typical PFI project approx 1% of total revenue Risk
Slide 117: Case Study: Northampton Schools
Case Study: Northampton Schools • Northampton Schools reached financial close in December 2005. Period Risk Free Project Size Risk Completion Total Rate Risk Premium Risk Premium • The design, construction, financing and provision of Premium facilities management services in respect of 30 existing I
Slide 118: Increasing Capital Value – Organic Growth
Increasing Capital Value – Organic Growth Further potential for future growth in NAV as portfolio matures: • 31% of the INPP portfolio under construction • INPP asset management team has strong track record in bringing 40 projects to completion within budget • As projects mature and the risks associ
Slide 119: Investment Case – Organic Capital Value Growth
Investment Case – Organic Capital Value Growth INPP achieves Net Asset Vale growth through: • High quality acquisitions and unique access to new investments • Active asset management to increase income • Maturing/organic growth of the Portfolio Forecasted future growth from Maturing of Portfolio c.1
Slide 120: Appendix
Private & Confidential Appendix
Slide 121: World Wide Debt Cap
World Wide Debt Cap1 A number of investors have enquired about how INPP may be affected by new tax rules seeking to reduce the ability of companies to set interest expense off against taxable income Q. What is the World Wide Debt Cap (WWDC)? A. The WWDC is a new restriction introduced by HM Revenue
Slide 122: Net Asset Value Movement June 2009
Net Asset Value Movement 30 June 2009 • NAV decreased by 3.4 pence per share mainly as a result of strong increases in risk free rates in all geographic areas • Average increase of 68 basis points over the period – U.K. risk free rate: 42 b.p. Australia risk-free rate: 163 b.p. – Canada risk-free ra
Slide 123: Robust Inflation Protection
Robust Inflation Protection • Movements in inflation result in changes to revenue due to the inflation linkage inherent in most of INPP’s concessions - 71% of total revenue is inflation linked, however operating costs also grow in line with inflation • Sensitivity analysis illustrates the modest cha
Slide 124: Limited Foreign Exchange Impact
Limited Foreign Exchange Impact • 82% of 2009 forecast distributions expected to be generated by UK assets due to early-stage nature of most of INPP’s non-UK projects • Hedging policy to be implemented progressively as non-GBP income increases to mitigate the risk that short-term movements in FX imp
Slide 125: Section 5: Enhancing Asset Value
Section 53 Enhancing Asset Value
Slide 126: Enhancing Asset Value
Private & Confidential Enhancing Asset Value
Slide 127: Enhancing Asset Value: Presenter Michael Gregory
Presenter Michael Gregory, Head of Asset Management, Amber Enhancing Asset Value Michael holds a BSc (Hons) in Quantity Surveying, MSc in Construction Project Management, Post Graduate Diploma in Law and is also a Chartered Builder. Michael joined the team in November 2002. Michael has over 12 years
Slide 128: Structure of a Typical PFI/PPP Project
Structure of a Typical PFI/PPP Project INPP - Equity Ownership Equity investment funds construction cost and in return receives predictable cashflow from project after fixed price debt service and amortisation Fixed price turnkey Asset Management costs and O&M costs have been met. Construction Contr
Slide 129: Why Is Asset Management Important?
Why Is Asset Management Important? • Protect INPP equity investment: – Contractual Structure ensures there is minimal risk with Proj Co – Revenue and cost as per the financial close base case • Create opportunities: – Pursue upside, no matter how small – Increase our profile and relationships with c
Slide 130: Active Asset Management
Active Asset Management • Passive v. Active Asset Management • Amber’s ability to do this is derived from the following: – The majority of INPP investments own the majority stake in projects – Investment held by a true long term investor – Amber is contracted to the Project Company to deliver Asset
Slide 131: Active Asset Management
Active Asset Management • Passive v. Active Asset Management • Amber’s ability to do this is derived from the following: – The majority of INPP investments own the majority stake in projects – Investment held by a true long term investor – Amber is contracted to the Project Company to deliver Asset
Slide 132: Active Asset Management
Active Asset Management • Passive v. Active Asset Management • Amber’s ability to do this is derived from the following: – The majority of INPP investments own the majority stake in projects – Investment held by a true long term investor – Amber is contracted to the Project Company to deliver Asset
Slide 133: Active Asset Management
Active Asset Management • Passive v. Active Asset Management • Amber’s ability to do this is derived from the following: – The majority of INPP investments own the majority stake in projects – Investment held by a true long term investor – Amber is contracted to the Project Company to deliver Asset
Slide 134: Active Asset Management
Active Asset Management • .....Is to manage expectations and DELIVER the CONTRACTED OUTCOMES – Contracted quality 9
Slide 135: Asset Management Role...
Asset Management Role... INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 136: Asset Management Role...
Asset Management Role... INTERNATIONAL PUBLIC PARTNERSHIPS
Slide 137: Active Asset Management: Deliver Contracted Outcomes
Active Asset Management • .....Is to manage expectations and DELIVER the CONTRACTED OUTCOMES – Contracted quality – By the contracted completion date o Dublin CCC contract completion date 17 February 2010 o Dublin CCC anticipated completion date 17 November 2009 o Durham Courthouse contract completi
Slide 138: Enhancing Value
Enhancing Value • Change management – Projects take on average 3 years from inception to Financial Close – Concessions are normally for 25 years or more – Amber’s Asset Manager well placed to manage this process for the Public Sector – Fees chargeable for this service – Opportunity to invest further
Slide 139: Questions??
Questions?? aT RTNERSHIPS
Slide 140: Appendix
Private & Confidential Appendix
Slide 141: Appendix: Third Party Revenue/Community Use
Appendix Examples of Third Party Revenue/Community Use: A multi-million-pound football 'megaplex' offering 11 floodlit pitches and state-of-the-art changing facilities has officially opened at PFI School in Northampton. Goals Soccer Centres, which owns 30 other similar football facilities across the
Slide 142: Appendix: St Thomas More Roman Catholic School
Appendix St Thomas More Roman Catholic School A single site PFI School. Division One Professional football club, Walsall FC have an annual agreement with the School to have use of their 3 grass pitches on a Saturday and Sunday during the season for their teams up to under 16. There are several benef
Slide 143: Appendix: Tupton Hall High School
Appendix Tupton Hall High School One of the 2 Schools in the Derbyshire Schools Ph1 PFI. The School is a Sports College and has extensive floodlit sporting facilities including an athletics track and an All weather pitch, the school do a lot of work to ensure their facilities are used by as much of
Slide 144: Appendix: Change
Appendix Change: ‘.... The approach takes the correct steps of always owning the project, matter how small or large and knowing the status of the scheme at any one time. This has been achieved by a team building strategy, which the Authority has been happy to buy into and support with their resource
Slide 145: Appendix
Appendix £7.543.59 £2,971,334.71 £15,727.05 3] | £159,752.92 Calderdale £71,929.47 27 42 £0.00 Derby Schools 1 £106,774.37/ 19 32|| £23.625.00| Derby Schools 2 £15,673.72 20 71 £0.00 Derby Courts £11.160.76 21 20 £7.696.71 H&W Courts £23,310.59 38 30| | £224,262.84|Refer to cravieersieiceed sheet fo
Slide 146: Appendix: Royal Melbourne Showgrounds Letter
Appendix c/- RASV Centre, Royal Melbourne Showgrounds, Langs Road, Ascot Vale VIC Royal Melbourne 3032 siya Ph: 0448 554 213 Fax: 03 9281 7592 Showgrounds E: jointventure@rasv.com.au Rede ment Joint Venture 9 September 2009 Mr James Tetlow Mr Alan Casserley PPPS Solutions (Showgrounds) Nominee Pty L
Slide 147: Section 6: PPP Lending Update
Section 6: PPP Lending Update
Slide 148: Developments in Bank Funding of Infrastructure assets and Funds
Developments in Bank Funding of Infrastructure assets and Funds Ian Stocker and John Redfern RBS UK Financial Institutions Group INPP Investor Day – Dublin Criminal Courts 6th November 2009
Slide 149: Amber – MBO Debt Financing by RBS
Amber – MBO Debt Financing by RBS • Context - MBO activity levels 2009 vs. 2007 • A successful MBO - in the eye of the storm • High visibility - of contractual cash flows • Defensive - socially-required, quasi-government characteristics • Management - track record and reputation within sector • Heal
Slide 150: Project Specific Lending – what has changed since 2007?
Project Specific Lending – what has changed since 2007? • Liquidity – Lack of availability of commercial bank debt for infrastructure transactions, most banks have an increasing home market focus. How much debt gearing can still be delivered for a project? • Terms – Higher pricing, higher cover rati
Slide 151: Project Specific Lending - Credit markets then & now
Project Specific Lending - Credit markets then & now 2 years ago Current trends • Exceptionally liquid loan markets • Dramatic liquidity squeeze and contraction in underwriting appetite, with a trend to wider “club deals” or best efforts syndications rather than underwriting groups • Appetite for si
Slide 152: INPP Corporate Debt Facility
INPP Corporate Debt Facility • A bank debt club £100m - 3 year committed revolving credit facility signed during 2008 when the Fund retained a strong connection with Babcock & Brown • RBS acted as agent bank - the transaction successfully raised £100m and RBS was delighted to work with National Aust
Slide 153: RBS9819
This material is issued by The Royal Bank of Scotland plc (“RBS”) and is intended to provide the recipient (the “Recipient”) with a summary of potential transaction structures and terms and conditions that may or may not lead to transactions being entered into between RBS and the Recipient. Unless a
Slide 154: Section 7: Amber Pipeline
Section 7: Amber Pipeline
Slide 155: Amber Pipeline
Private & Confidential Amber Pipeline 1
Slide 156: Amber Pipeline: Presenters
Presenters Hugh Blaney, Head of Business Development, Amber Hugh is a founding member of Amber Infrastructure. Previously he worked with the PPP/Infrastructure team at Babcock & Brown for 16 years. Hugh has overall responsibility for the development of new primary PPP projects for Amber Infrastructu
Slide 157: Amber Infrastructure – Market Overview
Amber Infrastructure – Market Overview Attractive opportunities are currently available to investors in PPP due to the combination of: • Significant and growing global demand for Examples include: new infrastructure •Rail (Rolling Stock Renewal, Crossrail, Electrification) •Schools (Building Schools
Slide 158: Amber Infrastructure – Market Overview
Amber Infrastructure – Market Overview • 2007 and HY1 2008 saw significant activity in In 2008 Carillion sold a portfolio of PFI the “secondary market” relating to the sale of projects valued on a discount rate of existing investments in PFI and PPP projects “less than 5.5%” (source: Carillion plc).
Slide 159: Amber Infrastructure - Development Track Record 2007 to 2009
Amber Infrastructure - Development Track Record 2007 to 2009 Period Transactions Developed by Amber Team up to September 2009 1. Each of these transactions has been acquired by International Public Partnerships (“INPP”). 2007 Reliance Rail Amiens Durham Courthouse New South Wales Schools BeNEX Maest
Slide 160: Amber Infrastructure – Development Pipeline
Amber Infrastructure – Development Pipeline INPP has exclusive access to a series of opportunities: Preferred Bidder Situations Project Location Capital Expected Concession Notes Value Investment Date Length NHS Health Goscote £7.3m Signed October 2009 25 years Will provide new residential and out p
Slide 161: Amber Infrastructure – Development Pipeline
Amber Infrastructure – Development Pipeline INPP has exclusive access to a series of opportunities: Preferred Bidder Situations Project Location Capital Expected Concession Notes Value Investment Date Length NHS Health Centres Nightingale £2.7m Q1 2010 25 years Will provide new GP surgery for Hackne
Slide 162: Amber Infrastructure – Development Pipeline
Amber Infrastructure – Development Pipeline Pipeline Situations Project Capital Value Expected Concession Length Notes Investment Date Confidential £50m (equity Q4 2009 c. 20-25 years Portfolio acquisition of UK PPP assets from trade seller – - Private Vendor value) mainly operational Amber reviewin
Slide 163: Amber Infrastructure – Development Pipeline
Amber Infrastructure – Development Pipeline Pipeline Situations Project Capital Value Expected Concession Length Notes Investment Date Greater Gabbard £343m Q2 2010 20 years Ofgem sponsored PPP – Phase 1 Amber is pre-qualified Thanet £198m Q2 2010 20 years Ofgem sponsored PPP – Phase 1 Amber is pre-
Slide 164: Asset Review: Liverpool Library (UK)
Private & Confidential Asset Review: Liverpool Library (UK)
Slide 165: Asset Review: Liverpool Library (UK)
Private & Confidential Asset Review: Liverpool Library (UK)
Slide 166: Asset Update: Liverpool Library (UK) Presenter
Asset Update: Liverpool Library (UK) Presenter Mike Leto, Business Development, Amber Mike has over 14 years experience of delivering PFI projects both in the UK and Europe. He joined the Amber team in January 2006 having previously worked with ABN Infrastructure. Mike is a senior member of the Ambe
Slide 167: Asset Update: Liverpool Library (UK) Overview
Asset Update: Liverpool Library (UK) Overview What is the asset? • The provision of a new Central Library and Archive facility for the City of Liverpool • The project is a high profile investment for the City in a World Heritage Site located in the City’s Cultural Quarter • The project involves the
Slide 168: Asset Update: Liverpool Library (UK) Key Facts
Asset Update: Liverpool Library (UK) Overview What is it? Refurbishment and new build of the Central Library and Archive in Liverpool (8,600m2 new build, 4,000m2 refurbishment). Where is it? Liverpool, U.K. When was it awarded? Amber named as preferred bidder in October 2009 How much will INPP 80% o
Slide 169: Liverpool Library Aerial View
15 Asset Update: Liverpool Library (UK) Aerial View
Slide 170: Liverpool Library Main Entrance
16 Asset Update: Liverpool Library (UK) Main Entrance
Slide 171: Liverpool Library Entrance
17 Asset Update: Liverpool Library (UK) Entrance
Slide 172: Liverpool Library Atrium
18 Asset Update: Liverpool Library (UK) Atrium Central
Slide 173: Liverpool Library Roof Terrace
19 Asset Update: Liverpool Library (UK) Roof Terrace
Slide 174: Liverpool Library ICT Suite
20 Asset Update: Liverpool Library (UK) ICT Suite
Slide 175: Liverpool Library Childrens' Library
21 Asset Update: Liverpool Library (UK) Childrens’ Library
Slide 176: Asset Review: Offshore Transmission Assets (UK)
Private & Confidential Asset Review: Offshore Transmission Assets (UK)
Slide 177: Asset Update: Offshore Transmission (UK) Overview
Asset Update: Offshore Transmission (UK) Overview What is the asset? • First bidding round of 9 separate assets with value of c. £1.1bn • Assets comprise onshore /offshore substations & under-sea cables connecting the mainland electricity grid network to offshore wind-farms. • Operational assets – n
Slide 178: Nature of the Offshore Transmission Asset (OFTO)
Asset Update: Offshore Transmission (UK) Nature of the Offshore Transmission Asset (OFTO) Onshore TO Offshore Transmission Owner (OFTO) Generator Connection to onshore network Onshore Substation Offshore Platform 132 kV Cable 33 kV Inter Array Cables 24
Slide 179: Asset Update: Offshore Transmission (UK) Key Facts
Asset Update: Offshore Transmission (UK) Overview What is it? 9 separate bids/assets Onshore /offshore substations & under-sea cables connecting the mainland electricity grid network to offshore wind-farms. Where are they? Offshore, U.K. When will they be awarded? 2 rounds of bidding already complet
Slide 180: Section 8: Outlook
Section 8: Outlook
Slide 181: Outlook
Outlook
Slide 182: Outlook: Presenter Giles Frost
Presenter Giles Frost, Director, International Public Partnerships Giles Frost has a law degree from the University of Oxford and is a qualified solicitor. Giles is a founder and an executive director of Amber Infrastructure Outlook Group. Giles has worked on project finance and PPP transactions sin
Slide 183: Contacts
CONTACTS Chief Operating Officer & Investor Relations Mgr: Bianca Francis Telephone: +44 (0)20 7939 0558 Email: Bianca.Francis@amberinfrastructure.com Director: Giles Frost Telephone: +44 (0)20 7939 0569 Email: Giles.Frost@amberinfrastructure.com Head of Business Development: Hugh Blaney Telephone:
Slide 184: Important Information
Important Information • The information in this document has been prepared by Amber Fund Management Limited and International Public Partnerships Limited solely for use at an information presentation about International Public Partnerships Limited (“INPP"). This document and its contents are confide
International Public Partnerships — Investor Day (November 2009) on 6ix