Infratil Limited · NZX:IFT
Infratil — H1 FY2010 Earnings Presentation
29 slides from Infratil's earnings presentation, Nov 17, 2009
Slide 1: Infratil Half Year Results
Infratil Half Year Results 30 September 2009 17 November, 2009
Slide 2: Half year ended September 30, 2009
Half year ended September 30, 2009 • Significant progress in repositioning assets and liabilities • Major businesses continue to perform notwithstanding recession • Infratil’s capital structure and financial flexibility continues to support ongoing investment activity • Shell NZ opportunity pending
Slide 3: Consolidated results
Consolidated results $millions Six months ended Six months ended • Challenging environment for top line 30 Sept 2009 30 Sept 2008 Operating revenue 963.8 982.3 growth EBITDAF 207.3 203.0 - VEL retail revenue +20% Net interest (80.6) (87.4) • Solid underlying earnings performances at Depreciation & a
Slide 4: Comprehensive income
Comprehensive income Six months ended Six months ended Six months ended Six months ended Six months ended Six months ended $million 30 Sept 09 30 Sept 08 30 Sept 09 30 Sept 08 30 Sept 09 30 Sept 08 Profit & Loss Reserves TOTAL Operating earnings 70 67 ‐ ‐ 70 67 Net (loss) gain on energy, interest ra
Slide 5: Consolidated cash flows
Consolidated cash flows Six months ended Six months ended $million 30 Sept 2009 30 Sept 08 • 12% increase in operating cash flow EBITDA 207.3 203.0 Working cap & other • $216m increase in free cash flow (61.4) (60.7) non‐cash Interest (79.7) (86.9) • Finance costs reduced due to less debt and lower
Slide 6: Active management of the portfolio
Active management of the portfolio • Investment approach remains consistent and starts with a top-down sector perspective PORTFOLIO CHANGES: • Current financial markets demand a more active Divestments approach to managing the portfolio -Fullers Ferries sold to Souter - Focus on performance has seen
Slide 7: Infratil assets at September 30, 2009
Infratil assets at September 30, 2009 $million 30 September 2009 31 March 2009 • Market values improved significantly for Listed investments at market price listed investments TrustPower 1,186 1,123 Energy Developments 149 73 • Non-listed investments shown at NBV Auckland Int’l Airport 88 81 - Inclu
Slide 8: Minimal bank debt and financial flexibility
Minimal bank debt and financial flexibility $million 30 September 2009 31 March 2009 • Snapshot of Infratil parent & wholly- Net bank debt 218 323 owned subsidiary borrowing • Net debt reduction of $105m Limited recourse RPS 140 140 • No change to bank facilities over the Bonds maturing 2011 1 1 per
Slide 9: Improved maturity profile and duration
Improved maturity profile and duration Infratil parent and wholly owned subsidiaries NZ$M 500 100% Sub Non-recourse 450 Inf ratil Bonds 400 Bank Debt 350 300 250 200 141 150 140 240 100 152 130 50 88 85 80 57 0 2010 2011 2012 2013 2014 2015 2016 2020 >2020 Financial Years • $218m of bank debt is sho
Slide 10: Core businesses continue to perform
Core businesses continue to perform Six months ended Six months ended • TrustPower – full contribution from Snowtown and $million 30 Sept 2009 30 Sept 08 growth in customer base TrustPower 155 137 • Infratil Energy Australia (IEA) – growth impacted by low-price wholesale gas sales and non-recurring
Slide 11: New investment activity will drive growth
New investment activity will drive growth SIX MONTH CAPITAL EXPENDITURE AND • Internal capital expenditure represents INVESTMENT ACTIVITY: the preferred form of investment Capital Expenditure • Perth Energy investing A$120m in -Perth Energy $64m first stage 120MW Kwinana power station scheduled for
Slide 12: Shell NZ downstream oil opportunity
Shell NZ downstream oil opportunity • Proposed transaction is at an advanced stage but is still subject to completion risk • Likely 50/50 consortium between Infratil and the NZ Superannuation Fund • No intention or requirement for Infratil to raise equity to complete its capital contribution - Suffi
Slide 13: Shell NZ – Unique assets and prospects
Shell NZ – Unique assets and prospects KEY DOWNSTREAM ASSETS INVESTMENT HIGHLIGHTS • 17.1% stake in New Zealand Refining • Number one branded fuels reseller Company (sole refinery in NZ) • Quality national storage and distribution • Share of pipeline from NZRC to Auckland infrastructure with economi
Slide 14: 2009/10 Outlook underpinned by core assets
2009/10 Outlook underpinned by core assets • Strong performance of core TPW and WIAL assets expected to continue • EBITDAF guidance of $355m - $370m reflects first-half impact of low gas prices in Infratil Energy Australia and projected impact of industrial action at NZ Bus • Operating cash flow pro
Slide 15: Energy
Energy 15
Slide 16: TrustPower
TrustPower Six months ended Six months ended Year ended • Excellent EBITDAF outcome given 30 Sept 2009 30 Sept 2008 31 March 2009 volatile NZ wholesale electricity Electricity customers 229,000 219,000 227,000 prices and relatively low NZ generation. Snowtown generated to Sales (GWh) 2,206 2,253 4,0
Slide 17: Infratil Energy Australia
Infratil Energy Australia Six months ended Six months ended Guidance Year ended A$million 30 Sept 2009 30 Sept 2008 FY 2009/10 31 March 2009 Generation $1.9M $1.0M $5.5M ‐ $6.5M * $4.3M Retail & wholesale $5.3M $12.4M $0M ‐ $2.0M ($0.1M) PE $0.7M $9.8M $1.5M – $2.0M $12.6M Group EBITDAF $7.9M $23.3M
Slide 18: Infratil Energy Australia: Retail
Infratil Energy Australia: Retail Retail • Victoria and SA retail growth of 10%. Good underlying margin performance largely offsetting higher than expected provisioning for doubtful debts • Household financial stress has generally increased retail energy bad-debts • The 2008/9 customer acquisition p
Slide 19: Infratil Energy Australia: Retail
Infratil Energy Australia: Retail • Victoria is maturing as a “new entrant” market. IEA has about 8% of the State’s accounts and maintains a target of 10% • SA is attractive for retailing but wholesale price volatility and limited hedge markets represent a constraint • WA regulation limits contestab
Slide 20: Infratil Energy Australia: Generation
Infratil Energy Australia: Generation Plant MW Angaston SA 50MW Lonsdale SA 20MW Hunter NSW 30MW Lonsdale Expansion 65MW • Work has started on an additional 65MW of capacity at the South Australian Lonsdale facility. Projected cost A$56m, relatively low cost reflecting “brown field” benefits - The i
Slide 21: Infratil Energy Australia: Perth Energy
Infratil Energy Australia: Perth Energy • 120 MW Kwinana open cycle gas turbine power station on track for completion mid 2010 • A$120m total cost • A$70m incurred to date • A$38m equity provided by Infratil to date • Committed debt facility from ANZ/ICBC for A$80m • Perth Energy's customers are com
Slide 22: Energy Developments Limited
Energy Developments Limited • Infratil owns 50.9m shares in EDL (32.5%) - Infratil supported a strategic review undertaken by EDL to identify ways to improve shareholder value/returns - Infratil entered into an agreement with Archer Capital to support a bid for EDL. Archer Capital withdrew without m
Slide 23: Airports
Airports FY 2009 Result Presentation 23
Slide 24: Wellington Airport
Wellington Airport Six months Six months Year ended ended ended 31 March • 50th Birthday of the current airport on 30 Sept 2009 30 Sept 2008 2009 1 November 2009 (the first powered flight from Passengers domestic 2,225,957 2,366,892 4,645,402 Lyall Bay beach occurred 1910) • A good financial result
Slide 25: European Airports
European Airports Six months Six months Year ended • Post September 30, Infratil sold its shares in ended ended 31 March Lübeck Airport back to Lübeck City. Settlement 30 Sept 2009 30 Sept 2008 2009 in November for $64.5m Total passengers 1,016,432* 1,672,249 2,748,184* • Weak European aviation mark
Slide 26: Public Transport
Public Transport FY 2009 Result Presentation 26
Slide 27: NZ Bus
NZ Bus Six months Six months Year ended • Earnings depressed by the recession impacting ended ended 31 March passenger numbers and the introduction of new 30 Sept 2009 30 Sept 2008 2009 concessions in Auckland which reduced average Passengers Northern 18,236,494 18,235,030 39,958,541 fares. Controll
Slide 28: Snapper
Snapper • Good progress expanding the range and breadth of Six months ended Year ended services and exceeding 99.99% reliability 30 Sept 2009 31 March 2009 – Valley Flyer and Runciman Motors Cards on issue 90,000 58,000 – Card hot listing – Child fares Transactions 6.8m 4.4m – Passes Retailers 180 1
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