Infratil Limited · NZX:IFT
Infratil — Investor Day (March 2017)
138 slides from Infratil's investor day presentation, Mar 29, 2017
Slide 1: Infratil Investor Day
For personal use only Infratil Investor Day 29 March 2017 Infratil has released the presentation material for its annual Investor Day attended by major shareholders, fund managers, broker analysts, regulatory agencies, business partners and commentators. Infratil has a clear strategy for providing g
Slide 2: 2017 Outlook and 2018 Guidance
2 2017 Outlook 2018 Guidance $m $m Underlying EBITDAF 485-505 470-510 For personal use only Operating Cashflow 215-235 210-250 Net interest 165-175 160-170 Depreciation & Amortisation 170-180 175-185 Guidance is based on management’s current expectations and assumptions about the trading performance
Slide 3: Infratil Future Directions Investor Day
Infratil Future Directions For personal use only Investor Day 29 March 2017
Slide 4: Infratil focus is clear
Infratil focus is clear Enhance the core while harvesting the new set of proprietary development options For personal use only • Active reset of the Infratil portfolio over the last few years to exit long-term positions and create new growth platforms • Achieved equilibrium across core assets and ne
Slide 5: Infratil idea generation and execution
Infratil idea generation and execution Multiple work streams required to convert insights into superior returns For personal use only Origination Market Events High conviction Proprietary New Options beliefs Options Research and Platform Asset Market Scans Development Management Option Capital Share
Slide 6: Committed to investing in ideas that matter
Committed to investing in ideas that matter Willingness to invest early and redefine industries and customer experience For personal use only • Why focus on ideas that matter? Examples of ideas that matter: – Early exposure to long term trends implies a strong capital requirement and potential for h
Slide 7: Valuation also matters
Valuation also matters Discount to NAV has widened while the new positions have been established For personal use only • The implied net asset value discount on an Infratil share has widened as new sector positions have been established – Discount likely to narrow as platforms reach independent scal
Slide 8: Proprietary platforms are a critical indicator of future success
Proprietary platforms are a critical indicator of future success Emphasis is shifting back to capital growth For personal use only • Important enabling initiatives have been Key Questions around IFT outlook: executed - Investment thesis – supported by long term trends – TPW separation and Tilt demer
Slide 9: Our approach to capital management reflects a development bias
Our approach to capital management reflects a development bias Maintain flexibility while reserving capital for proprietary pipelines For personal use only • Significant near-term capital deployment Current Settings opportunities in the renewable, eldercare and - $380m of cash and available faciliti
Slide 10: IFT Portfolio strategy on a page
IFT Portfolio strategy on a page High return development platforms supported by a cash-generating core For personal use only CORE CASH GENERATIVE ASSETS Although the focus is on growth, it is important to retain a proportion of core infra in the portfolio to facilitate the model Renewables Eldercare
Slide 11: IFT Portfolio strategy on a page
IFT Portfolio strategy on a page High return development platforms supported by a cash-generating core For personal use only CORE CASH GENERATIVE ASSETS Rotate out of Core portfolio generates cash businesses with to support IFT- declining outlooks level debt and dividends Remain opportunistic for Re
Slide 12: IFT Portfolio strategy on a page
IFT Portfolio strategy on a page High return development platforms supported by a cash-generating core For personal use only CORE CASH GENERATIVE ASSETS • Core, mature assets with history of generating ~10-12% equity returns • Reinvestment options with stronger marginal returns • Allows overall e.g.
Slide 13: Performing at the core
Performing at the core Positioning for model shifts, changing industries and more active politicians & regulators For personal use only • TRUSTPOWER • WELLINGTON AIRPORT • NZ BUS – Diverse and flexible renewable – Part-way through a significant – Mid-way through major re- generation plant throughout
Slide 14: Focusing on what we have
Focusing on what we have Infratil has largely established the main areas of new growth for the medium term For personal use only • RENEWABLES • ELDERCARE • DATA INFRASTRUCTURE – Tilt ~2GW pipeline of – Our NZ & Australian retirement – CDC positioning for long term opportunities in Australia with bus
Slide 15: Infratil FY18 guidance and near term outlook
Infratil FY18 guidance and near term outlook Guidance range reaffirmed at $485-$505 million for FY17 For personal use only • FY17 underlying EBITDAF forecast 2017 2018 $485-$505 million Outlook Outlook $m $m • Outlook for 2017/18 is flat year on year, assuming: Underlying EBITDAF 485-505 470-510 – l
Slide 16: Focused on Ideas that Matter
Focused on Ideas that Matter Execution priorities and deliverables are clear For personal use only • Infratil is poised to benefit from the establishment of high quality platforms in areas of high conviction – Targeting essential services supported by long-term secular trends, consumers, and regulat
Slide 17: Macro Outlook and Implications for Infratil Investment Strategy
For personal use only Overall remaining to-dos: • Charts and headings might need larger / bolded font • Speaking notes Macro Outlook and Implications for Infratil Investment Strategy Paul Newfield Infratil Investor Day 2017
Slide 18: FAQs (and Alternative FAQs)
FAQs (and Alternative FAQs) For personal use only • How has the macro environment changed since last year? (or “What does Trump mean for markets?”) • What are the implications for infrastructure? (or “Is infra just a bond proxy?”) • Where is Infratil focusing its capital? (or “What do you mean by Gr
Slide 19: Last year we highlighted a multitude of risks on the horizon
Last year we highlighted a multitude of risks on the horizon 1 For personal use only Fragile economic 8 growth 2 Regulatory frameworks Ultra low interest influenced by rates partisan politics 7 3 Growing Modest developed infrastructure market inflation allocations 6 4 Extreme Global debt commodity p
Slide 20: The political risks have largely come to fruition
The political risks have largely come to fruition (An internal page from last February that I deemed unfit for public consumption) For personal use only US Europe ROW 4
Slide 21: The OECD has experienced a sustained downshift in growth
The OECD has experienced a sustained downshift in growth For personal use only OECD Real GDP Growth, % change from year earlier 6 Ѳ = 2.6% Trend Q1 90 – Q3 08 Ѳ = 1.5% 4 Trend Q2 09 – Q4 16 2 0 -2 -4 -6 90 93 96 99 2 5 8 11 14 17 Source: Organization for Economic Co-operation & Development (OECD). 5
Slide 22: Nearing full employment in many developed economies
Nearing full employment in many developed economies For personal use only OECD Population Growth, % change from year earlier OECD Unemployment Rate, % working age (15-64) 1.5 9.0 (f) 1.0 8.0 7.0 0.5 6.0 0.0 5.0 60 65 70 75 80 85 90 95 00 05 10 15 20 25 90 93 96 99 2 5 8 11 14 17 -0.5 Total Populatio
Slide 23: Labour productivity is not filling the gap
Labour productivity is not filling the gap For personal use only OECD area Labour Productivity Growth, % pa 6 (f) 4 2 0 -2 70 75 80 85 90 95 00 05 10 15 20 Labour productivity growth 5 year centred moving average Source: Organization for Economic Co-operation & Development (OECD). 7
Slide 24: The pressure cooker economy?
The pressure cooker economy? For personal use only Fiscal Stimulus Populist Politics Tax Cuts Protectionism Aging Population Defence Spend Stagnant Productivity Immigration Restrictions Infrastructure Spend 8
Slide 25: Early signs of inflation returning
Early signs of inflation returning… For personal use only OECD CPI, % change from year earlier 6.0 4.5 3.0 1.5 0.0 -1.5 -3.0 01 03 05 07 09 11 13 15 17 US UK Japan France Germany Source: Organization for Economic Co-operation & Development (OECD). 9
Slide 26: Interest rate expectations are rebounding (again)
…and interest rate expectations are rebounding (again) For personal use only US Federal Reserve Rate and Forward Curves, as at 1 Jan each year (2007-2017), % 6 Return to pre-QE world? 5 4 A new normal? 3 2 1 False dawn? 0 Jan 2010 Jan 2015 Jan 2020 Jan 2025 Jan 2030 Jan 2035 Actual fed rate Forward
Slide 27: What does this mean for IFT investment strategy?
What does this mean for IFT investment strategy? For personal use only Macro Context Strategic Implications for IFT • Near term stimulus? Focus on secular, not cyclical, growth • Rebound in interest rates and CPI? Weight investment to growth infra • Longer term growth constraints Seek inflatio
Slide 28: Strategic priorities for the IFT portfolio
Strategic priorities for the IFT portfolio For personal use only Asset Management Portfolio Management CORE CASH GENERATIVE PORTFOLIO Drive operational Rotate out of performance within businesses with existing core portfolio declining outlooks, replace with attractive cash generators Renewables Elde
Slide 29: What do we mean by Growth Infrastructure Platforms?
What do we mean by Growth Infrastructure Platforms? For personal use only • Solving society’s long term challenges • Demographic, economic & Secular technological megatrends Growth Growth Infra • High % of fixed costs Operating • Barriers to entry • Expansion options Leverage / Competitive • Contrac
Slide 30: Renewable Energy Growth Platform
Renewable Energy Growth Platform For personal use only • Decarbonisation • Changing economics • Political uncertainty Secular Growth • Regulatory diversification Growth Infra • Large and growing pipeline Operating • Long term contracts • Low holding-cost options Leverage / Competitive • Advantaged o
Slide 31: Eldercare Growth Platform
Eldercare Growth Platform For personal use only • Demographic tail winds • Need for private sector solutions Secular Growth Growth Infra • Brownfield expansions Operating • Local competition is key • Greenfield pipeline Leverage / Competitive • Exposure to broader Proprietary barriers • Scale advant
Slide 32: Data Infrastructure Growth Platform
Data Infrastructure Growth Platform For personal use only • Exploding data demands • Data security focus • Infrastructure outsourcing Secular Growth Growth Infra • Fill-out of new facilities Operating • Contracted revenues • Brownfield expansions Leverage / Competitive • Co-location benefits Proprie
Slide 33: Can we build a Social Infra Growth Platform?
Can we build a Social Infra Growth Platform? ANU investment fits in IFT’s cash generative core, potential for follow-on investments to create a growth platform For personal use only • Growing EM middle class Secular • Competitive education market Growth • Need for private capital • Latent demand Gro
Slide 34: Private capital flows reinforce value of IFT Growth Platforms
Private capital flows reinforce value of IFT Growth Platforms For personal use only Pension & SWF investors are increasing infra allocations Growing institutional appetite for “Growth Infra” assets % of total portfolio CPPIB forms JV to acquire US$555m Portfolio of Senior Housing: 8 7.7 “This portfo
Slide 35: Takeaways for Infratil Investors
Takeaways for Infratil Investors For personal use only 1. We are increasingly cautious in our market outlook 2. In this uncertain environment our focus is on • driving performance in the cash generating core • exercising embedded options in our growth platforms • maintaining balance sheet flexibilit
Slide 36: Important Information
Important Information For personal use only The statements and opinions expressed in this presentation and any related discussion (the presentation) are based on the information available as at the date of the presentation. Morrison & Co reserves the right, but will be under no obligation, to review
Slide 37: Infratil Investor Day (Longroad Energy)
For personal use only Infratil Investor Day March 29, 2017
Slide 38: Topics
Topics For personal use only Section 1. US Power and Renewables Markets Section 2. Demand Drivers, Business Model, and Plan Section 3. Progress Check-In, Opportunities, and Challenges 2
Slide 39: Longroad Energy – Business Overview
Longroad Energy – Business Overview • Strategy focused on the decarbonization of the US market by participating in the For personal use only development and services segments of the US utility scale wind and solar markets • Rationale – >100 GW market opportunity – Long-term development cycle – Growi
Slide 40: Key Personnel
Key Personnel Longroad is the core team that established and managed First Wind and sold it to SunEdison For personal use only and TerraForm Power in January 2015 for an enterprise value of $2.4 B Qualifications Job Scope Paul Gaynor - CEO SunEdison: EVP Global Utility Development SunEdison: Deliver
Slide 41: US Power and Renewables Markets
For personal use only Section 1 US Power and Renewables Markets
Slide 42: US Power Market Primer
US Power Market Primer 189 For personal use only No federal energy policy Investor Owned >200 Power Utilities >1,100 GW Marketers 10 Regional installed Transmission Nearly 3,000 capacity Organizations Public Utilities 50 & Cooperatives separately 7,658 regulated Deregulated (traded) and >4 million p
Slide 43: US Power Generation
US Power Generation For personal use only Infratil Investor Day 2017 7
Slide 44: US Power Generation: Winners and Losers
US Power Generation: Winners and Losers For personal use only Renewables +385% Natural Gas +116% -35% Coal Infratil Investor Day 2017 8
Slide 45: US Renewables Generation
US Renewables Generation For personal use only 2016 • ~9% share of all generation • ~65% of all new installed capacity Infratil Investor Day 2017 9
Slide 46: What We Are Playing For
What We Are Playing For… For personal use only • 147 GW Wind and Solar Growth – 108 GW wind and utility solar – 22 GW distributed solar – 17 GW residential solar Infratil Investor Day 2017 10
Slide 47: Tax Credits - Unique Feature of US Renewables
Tax Credits - Unique Feature of US Renewables • In place since 1986, allows non-individual taxpayers to monetize tax benefits from wind and For personal use only solar projects against income tax • Historically funded by financial institutions, corporates, and strategics with large taxable income; i
Slide 48: Demand Drivers, Business Model, and Plan
For personal use only Section 2 Demand Drivers, Business Model, and Plan
Slide 49: Demand Driver 1: Renewable Portfolio Standards
Demand Driver ① Renewable Portfolio Standards RPS Standard RPS Goal Proposed Increase For personal use only 90% by • 29 states 2050 • Utilities’ obligations to 50% by 100% by 2035 purchase defined 2030 100% by 1 GW by percentage of their load TBD 2020 40% by from renewable resources 2040 • State lea
Slide 50: Demand Driver 2: Federal Tax Credits
Demand Driver ② Federal Tax Credits For personal use only • Expired and re-instated 8 times since inception • Longest ever extension was put in place at end of 2015 • Phase out of both ITC and PTC • Renewal unlikely • Tax reform could impact deals and depth of market Infratil Investor Day 2017 14
Slide 51: Demand Driver 3: Cost
Demand Driver ③ Cost For personal use only • Wind LCOE: ↓66% since 2009 • Solar LCOE: ↓85% since 2009 Infratil Investor Day 2017 15
Slide 52: Demand Driver 4: Corporate PPAs
Demand Driver ④ Corporate PPAs For personal use only • Corporate PPAs accounted for 50% of announced wind PPAs in 2016 • Active broker, bi- lateral, and business to business procurement activity • Longroad staff experienced in originating corporate PPAs Infratil Investor Day 2017 16
Slide 53: Attractive Asset Class for Long-Term Owners
Attractive Asset Class for Long-Term Owners For personal use only Investment Feature Wind Solar (Typical) Asset Life (years) 30+ 30-35+ Construction risk No No PPA term (years) 12-25 15-25 Counterparty credit At least investment grade At least investment grade Operating costs Highly predictable with
Slide 54: Market Opportunity - Sizing the Business Plan
Market Opportunity - Sizing the Business Plan For personal use only 100 GW of development opportunities in attractive asset class $45 B investment potential for permanent equity investors Infratil Investor Day 2017 18
Slide 55: Business Model and Strategy
Business Model and Strategy Late stage capital For personal use only Initial Investment Capital • Early to mid-stage • Continue greenfield investment • Maintain flexible timing of sell downs, allowing the development spending on and M&A activity business model to adapt to market conditions organic d
Slide 56: Operating and Asset Management Platform
Operating and Asset Management Platform For personal use only Project Performance and Wind and Solar Site Operations Enterprise Support Commercial Asset Management WTG and Solar Data Resource Spare Part Commercial Full Accounting Panel/Inverter/ Monitoring, Assessment and Environment Project Level S
Slide 57: Progress Check-In, Opportunities, and Challenges
For personal use only Section 3 Progress Check-In, Opportunities, and Challenges
Slide 58: Progress Check-In
Progress Check-In • Team: 23 core members in place in development, origination, transmission and For personal use only interconnection, construction, permitting, solar resource, wind resource, project finance, legal, and M&A. Additional resources to be added as milestones achieved, i.e. closed proje
Slide 59: Portfolio Map (excludes M&A)
Portfolio Map (excludes M&A) For personal use only Infratil Investor Day 2017 23
Slide 60: Opportunities to Leverage the Platform
Opportunities to Leverage the Platform • Growing and aging renewables fleet; For personal use only – > 120 GW installed capacity at end of 2016 – Ownership changes likely, tax investors not natural long-term owners after tax benefits expire – Potential to acquire, optimize operations and capital str
Slide 61: Opportunities to Leverage the Platform (cont'd)
Opportunities to Leverage the Platform (cont’d) • Storage For personal use only – Develop in connection with solar and wind opportunities – Today economics and needs make Hawaii the only practical candidate • Third party services – Increasing participation in asset ownership by institutional investo
Slide 62: Challenges
Challenges • PPA market competition For personal use only – Procurement process on nearly all PPAs, driven by corporate purchasing departments, public utility commissions, and consumer advocates – Sponsors aggressive on capex and opex assumptions – Requires discipline in developing only the best sit
Slide 63: Challenges (cont'd)
Challenges (cont’d) • Federal tax reform For personal use only – To be undertaken immediately after health care reform – New administration and Republicans pushing for corporate tax reform, which would very likely include a lowering of the corporate tax rate, among other things – Lower corporate tax
Slide 64: Thank you
For personal use only Thank you !! 28
Slide 65: Infratil Investor Day March 2017 (Tilt Renewables)
For personal use only Infratil Investor Day 29 March 2017
Slide 66: Introduction Agenda
For personal use only Introduction Agenda • Establishing a Growth Business • Global Renewables Energy Trends • Australian energy market dynamics • Tilt Renewables’ strategy • Growth opportunities • What can investors expect in the next 12 months 02
Slide 67: Establishing a Growth Business
For personal use only Establishing a Growth Business
Slide 68: Establishing a Growth Business
For personal use only Establishing a Growth Business Victorian Energy Minister Lily D’Ambrosio and Tilt Renewables CEO Robert Farron opening the Melbourne office Standing up the Business post de-merger • De-merger completed 31 October 2016, Tilt Renewables operational on standalone basis • Melbourne
Slide 69: Operating highlights
For personal use only Operating highlights Operating performance since de-merger December 2016 quarter production guidance • YTD production to 31 December 2016 ahead of prior period • Wind speeds in March quarter have been stronger in NZ, but GWh Q3 FY17 Q3 FY16 YTD FY17 YTD FY16 below long term
Slide 70: Global renewable energy investment themes
20 Global renewable energy investment themes For personal use only Middle to low income nations G20 per capita 15 High income nations Global decarbonisation trend 2030 emissions 10 Implied COP21 per capital emission limit vs COP21 • Global trend of decarbonisation is starting to be implemented 5 imp
Slide 71: Australian energy market dynamics
For personal use only Australian energy market dynamics
Slide 72: Australian energy and climate policy
For personal use only Australian energy and climate policy • Australia has committed up to a 28% emissions reduction by 2030 which will require significant changes to the generation mix. • Intense debate around energy market reform to balance energy security, affordability and emissions reduction ob
Slide 73: Government intervention in the energy sector
Recent announcement by the South Australia state government and the Australian (federal) Government highlights pressure to come up with solutions to “fix the energy crisis” and intervene as both regulator of and investor in the energy sector For personal use only SA Government has announced a packag
Slide 74: Australian Large-scale Renewable Energy Target - LRET
Australian (Large-scale) Renewable Energy Target - LRET For personal use only • 33,000 GWh annual target by 2020, current scheme ends in 2030 Estimated annual LRET demand and supply • Requires further ~3GW of renewable generation to be built by 2020 40 Near-term build opportunity • Bipartisan politi
Slide 75: Current Environment for renewables investment
Current Environment for renewables investment For personal use only • Australia’s COP21 emissions reduction commitment (26-28% by 2030) requires significant changes to the generation mix. • Ambitious state-based renewable targets have yet to trigger meaningful long-term demand for renewables. ACT fe
Slide 76: What market conditions would support greater capital deployment
What market conditions would support greater levels of capital For personal use only deployment in Australia’s Clean Energy Transition by Tilt Renewables? Key Ingredients Durable long term energy and climate change policy preferably with bi-partisan political support that enables greater renewable
Slide 77: Subsidisation of renewables expected to reduce as costs fall
Over time we would expect subsidisation of renewables to reduce as new For personal use only entrant solar and wind costs continue to fall but not before stronger momentum in renewables investment is sustained 2017 Levelised cost of entry for new build technologies in Australia 250 200 150 100 50 0
Slide 78: Tilt Renewables strategy
For personal use only Tilt Renewables strategy • More than double current operating renewable generation capacity over the next 5 years (to 1,500 MW) and Goal • Position beyond 2020 with further wind and solar build if policy framework supportive Focus Australia New Zealand Consider Salt Creek Deter
Slide 79: Overview of key development projects
Overview of key development projects For personal use only Nebo Well-positioned development pipeline Dysart • Development pipeline of circa 1,700MW in Australia: Waddi Rye Park – 450MW projects with environmental approvals, with a further 300MW subject Palmer NSW project to appeal Salt Creek Dundonn
Slide 80: Growth opportunities
For personal use only Growth opportunities
Slide 81: Salt Creek Wind Farm - Overview
For personal use only Salt Creek Wind Farm - Overview Salt Creek wind farm Minimal development risk site boundary • Fully consented • Supportive landowners, community and local council • 49km overhead connection into existing Terang substation • Current approvals: construction completed before Sep 2
Slide 82: Indicative timeline
Indicative timeline Development Construction (12-15 months) Operations For personal use only Mar-17 Apr-17 May-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Salt Creek Wind Farm - Delivery Key Activities – to achieve FID Procurement - Close out procurement process: Due diligence - EPC and long
Slide 83: Dundonnell Wind Farm
For personal use only Dundonnell Wind Farm • Dundonnell Wind Project (~300MW, VIC) • Fully consented with minor approvals required for connection Dundonnell wind farm • Supportive landowners, community and local council site boundary • Proposed connection via Mortlake PS with new off-site substation
Slide 84: Future growth opportunities
Future growth opportunities For personal use only Other wind development projects Other energy technology and commercial advances • Consenting of the Waverley wind farm in NZ • Tilt Renewables team maintains a watching brief on energy • NSW development consents technology advances including, but not
Slide 85: Potential Capital Raising Pathways to fund growth
Potential Capital Raising Pathways to fund growth For personal use only Pathway #1 - Value add through unique delivery model Pathway #2 – Partner with low cost capital providers • Target “double digit” equity returns from new assets • Special Purpose Vehicle with own or institutional fund model • Ta
Slide 86: What can investors expect over next months
For personal use only What can investors expect over next 12 months Industry • Finkel Review on Security of Supply – formal report due Q2 CY2017 • Federal (Aust) Government review of energy and climate policy – report due second half CY2017 • Victorian Renewable Energy Target legislation and first t
Slide 87: Tilt Renewables Thank you
For personal use only Tilt Renewables Thank you 023
Slide 88: APPENDIX - Renewable energy targets across Australia
For personal use only APPENDIX 1 - Renewable energy targets across Australia • State Labour/Green policies are targeting further decarbonisation (beyond LRET) through renewable energy targets Energy (GWh) target New capacity State State energy fundamentals Tilt renewables development options propose
Slide 89: APPENDIX - Overview of Tilt Renewables
APPENDIX 2 - Overview of Tilt Renewables – 582MW operational and 2200MW+ development For personal use only Investment highlights PALMER Potential capacity • Tilt Renewables is a significant and established owner, operator and developer of wind farm assets, with an operating Up to 300MW (wind) WAVER
Slide 90: Disclaimer
Disclaimer For personal use only This presentation is issued by Tilt Renewables Limited. While all reasonable care has been taken in the preparation of this presentation, Tilt Renewables Limited and its related entities, directors, officers and employees (collectively “Tilt Renewables”) do not accep
Slide 91: Infratil Investor Day 2017 (CDC)
Infratil Investor Day For personal use only 2017
Slide 92: Overview
Overview A datacentre houses an organisation’s computer systems and associated equipment For personal use only CDC provides highly secure for data storage and processing. outsourced data centre Canberra Data Centres (CDC) provides critical services by accommodating their IT infrastructure in service
Slide 93: Overview
Overview For personal use only Fyshwick Campus 2 data centres Fyshwick 1 — operational 2015 Fyshwick 2 — development Total of 39 MW capacity ‘Secret’ security accreditation, designed for ‘Top Secret’ 100+ Pods 2,300+ Racks Fyshwick Hume Campus Brisbane 3 data centres; Hume 1,2 & 3 Total of 21 MW cap
Slide 94: Trends in the addressable market
Trends in the addressable market There are three major growth drivers in CDC’s target market: For personal use only The Federal Government data centre market is 1. Data Growth • Move from analog to digital a unique segment with • ‘Data Explosion’ – hundredfold increase in the next decade (Data61) si
Slide 95: Trends in the addressable market
Trends in the addressable market For personal use only 2,000 Global trend 1,842 Installed Storage Capacity (EB) in Data Centre 1,500 1,405 Storage Capacity 1,065 70% 1,000 782 546 500 382 18% 45% 20% 35% 12% 0 2015 2016 2017 2018 2019 2020 Traditional Data Centre Private Cloud Data Centre Public Clo
Slide 96: Trends in the addressable market
Trends in the addressable market For personal use only Federal Government predicted 'Cloud' solutions expected to be $1.1Bn CDC success rate — 75% to per annum by 2019 Federal Government Data 85% of the ACT outsourced Centre outsourcing has been Data Centre market — John Sheridan (2016) growing by c
Slide 97: Current dynamics of Government procurement
Current dynamics of Government procurement › Cyber issues For personal use only › Election Cycle — Double Dissolution Federal Election › Central review of all Government IT Projects > $10m › Client project delays › Whole of Government procurement initiatives › Procurement moving to DTA › Government
Slide 98: Unique Attributes
Unique Attributes For personal use only Why Government chooses (and stays at) CDC: Must Have: Added Value: › High success rate with Federal Government tenders › Panel Membership › Power efficiency — designed PUE < 1.3 › Proximity › Dual sites — 2 sites < 15 kms apart › Contracts are long term and ›
Slide 99: Unique Attributes
Unique Attributes Competitive Advantages that give CDC a highly defensible position: For personal use only CDC has developed a tailored premium offering DESIGN + LEADERSHIP CRITICAL that serves specific › World Class adaptable design INFRASTRUCTURE & SECURITY demands unique to › Modular, scalable, e
Slide 100: Ecosystem
Ecosystem For personal use only “Colocation is quickly becoming the nexus of both cloud and enterprise IT” — James Bourne, Cloud Computing “The colocation market is serving as ‘data centre arms dealer’ to both enterprises and the cloud. In this process, colocation is often becoming the strategic con
Slide 101: Ecosystem
Ecosystem Security For personal use only The CDC Ecosystem Fyshwick is organic and self reinforcing. Critical Infrastructure Trusted partner with critical mass of Government customers CDC CDC Design + Ecosystem Leadership Connectivity Hume 11
Slide 102: Ecosystem
Ecosystem Top Secret For personal use only The CDC Ecosystem is unique and grows Individual Agencies stronger with every Contracted (On premise client that joins it. replacement) Unclassified Secret Managed Cloud Service Service Providers Shared Services within Government 12 Protected
Slide 103: Opportunities
Opportunities For personal use only Growth Development › Growth from existing customers › Fyshwick 2 › Growth from new Government customers › New facility in new geography › Opportunities in Hyperscale Cloud partners › Expansion of service offering › Growth in specialised assured Cloud platforms › M
Slide 104: Key Points
Key Points CDC has established a For personal use only Market leader CDC has an advantaged market position › CDC operates 2 scalable Data Centre › CDC is well positioned to capitalise on the clear market leadership campuses in Canberra providing highly secure expected strong market growth position i
Slide 105: For personal use only
For personal use only
Slide 106: Infratil Investor Day March 2017 (Trustpower)
For personal use only Infratil Investor Day | 29 March 2017
Slide 107: Positive record of identifying and executing strategic opportunities
Positive record of identifying and executing strategic opportunities For personal use only From 1994 - 2013 2013 to today Looking to the future • Listed in 1994 serving • Rebrand • 4th largest in energy and 40,000 customers growing multi product • Focused growth in telco • High growth through acquis
Slide 108: Trustpower is well positioned to capitalise
Trustpower is well positioned to capitalise Our world view on emerging market opportunities For personal use only • Global trend towards industry convergence is increasing • Easily restructured portfolio of generation assets • Single industry players face high competition from both • Ability to grow
Slide 109: The dynamics and potential of our markets
The dynamics and potential of our markets For personal use only Actual and forecast fibre connections (000’s) NZ annual electricity consumption (000’s)* Fibre opportunity growing fast Electricity demand largely flat • Driven by data hungry customers • Driven by beyond the grid efficiency and generat
Slide 110: Generation portfolio – efficient, flexible risk management
Generation portfolio – provides efficient, flexible risk management For personal use only 38 20% 38 hydro power shareholding in Rangitata stations across Diversion Race Management Limited (New Zealand’s largest 21 irrigation scheme) schemes 75% - 80% 65% of Trustpower’s EBITDAF is provided by the NZ
Slide 111: Generation portfolio – Australia
Generation portfolio – provides efficient, flexible risk management For personal use only 3 6 96MW Australian generating of AU generating schemes units capacity 244GWh typical annual production – approximately 13% of TWP total 6. Infratil Investor Day
Slide 112: Transmission pricing & ACOT
Transmission pricing & ACOT For personal use only Assessment of ongoing ACOT Current Trustpower estimate of future ACOT revenue (Avoided Cost of Transmission) payments 30 • Annualised $ (Millions) Reduction in ACOT payments from April 2018 Ongoing TPM uncertainty: 25 • We remain highly engaged in th
Slide 113: You'll never get anywhere if our customers are loyal
YOU'LL NEVER GET ANYWHERE, IF -QUR CUSTOMERS ARE LOYAL
Slide 114: Multi-product loyalty benefits continue
Multi-product loyalty benefits continue For personal use only Electricity only vs multi-product customer churn 20% Electricity Only Dual Fuel 15% Triple Play For example in Auckland the 10% Electricity and Telco NPV of a bundled acquisition Linear (Electricity Only) campaign with a median customer t
Slide 115: Growing our share of the higher-value fibre market
We are focusing on growing our share of the higher-value fibre market For personal use only 2017 2020 Trustpower is taking a growing share of a growing market as customers of legacy copper services with incumbent providers 1.4M households will accelerate their migration to higher value, higher margi
Slide 116: Customer acquisition is targeted at higher value bundled customers
Customer acquisition is targeted at higher value bundled customers For personal use only Customer growth Current customers Jan-2017 Jan-2016 275,000 electricity Jan-2015 0 50,000 100,000 150,000 200,000 250,000 32,000 gas Electricity Only Dual Fuel Electricity Telco Electricity+Gas & Telco Mixed 76,
Slide 117: Reshaping the customer experience
Reshaping the customer experience For personal use only Keeping pace with changing customer Net promoter score expectations and creating long-term, mutual customer value 120 100 Net promoter score increases due to: 90 100 80 • Propensity models and proactive intervention 80 70 • Platform stability 6
Slide 118: Improving cost efficiency through digital and emerging technology
Improving cost efficiency without compromising quality of service through the leverage of digital and emerging technology For personal use only Interactions by channel Q1 2016 • We have focused on driving interactions to lower cost channels where customer preference allows us to do so • Increased fo
Slide 119: Investing in technology platforms
Investing in technology platforms that are fit for purpose, secure, modern and customer centered For personal use only Past Current Future Multi-product & Customer Centric Key focus areas Stable & Resilient Speed & Scale Modern Workplace Foundational Keep it Simple, Scalable, Rock Solid IT Cloud Dig
Slide 120: People capability – Trustpower senior leadership team
People capability – Trustpower senior leadership team For personal use only Vince Kevin Peter Stephen Hawksworth Palmer Calderwood Fraser Melanie Simon Fiona Craig Dyer Clarke Smith Neustroski 15. Infratil Investor Day
Slide 121: People capability to execute on future opportunities
People capability to execute on future opportunities For personal use only Key focus areas Future organisational Adaptability and Changing nature of Keeping our workforce capability flexibility the workforce safe and secure • Strengthen resiliency, • Activity based working • Reward and recognition •
Slide 122: Key performance areas
Key performance areas For personal use only A clear focus for ensuring a more valuable business in the future Key focus areas Optimising performance of Enhancing the multi-service offer Improving long-term industry the generation portfolio and customer experience structure • Asset management that is
Slide 123: Trustpower is well positioned in a decentralising, converging world
Trustpower is well positioned in a world that is decentralising and converging at the customer premise For personal use only A proven ability to execute in our target markets • We are not relying on our strong relative position in the traditional electricity industry to build our future business • T
Slide 124: Infratil Investor Day March 2017 (RetireAustralia)
For personal use only Infratil Investor Day | 29 March 2017
Slide 125: Infratil Investor Day March 2017
For personal use only Infratil Investor Day March 2017
Slide 126: RetireAustralia – Future (2021) consistent focus
RetireAustralia – Future (2021) consistent focus For personal use only 6,300+
Slide 127: The Immediate Future FY18 – FY21
The Immediate Future FY18 – FY21 STRATEGIC Our vision is to be the recognised leader in customer-centric retirement communities and care VISION For personal use only services to make us the first choice of older Australians and their families. Core – Existing portfolio Emerging – Development Emergin
Slide 128: Existing Regional and minor metro customer profile
Existing Regional and minor metro customer profile AGE: 70 - 78 Motivations: For personal use only CARE NEEDS: Independent SAFETY AND SECURITY: 90% LOCATION: Regional areas, minor metro areas HEALTH / WELL-BEING: 50% MARITAL STATUS: Single / Widowed / Widower HOUSING: Principal place of residence FI
Slide 129: New pipeline customer profile
RetireAustralia New pipeline customer profile AGE: 78 to 82 Motivations: For personal use only CARE NEEDS: Independent SAFETY AND SECURITY: 90% LOCATION: Metropolitan areas, SE Australia HEALTH / WELL-BEING: 75% MARITAL STATUS: Single / Widowed / Widower HOUSING: Principal place of residence FINANCI
Slide 130: Core business – resales and operations
Core business – resales and operations PURPOSE AIMS For personal use only To improve the resident experience for our target market, the 75+ year consumer who will have Drive entry price growth increased care needs in the years ahead. This will enable RetireAustralia to increase its market share and
Slide 131: Resales – New Standard Contract
Resales – New Standard Contract When you buy While you live with us When you leave • Capped exit fee • Fixed village fees • No sales and marketing fees For personal use only • No stamp duty • No reinstatement or refurbishment fees • Guaranteed buyback
Slide 132: Value generation
Value generation • Growth in NTA since acquisition has been driven by increased unit prices, strong development margins, improvements in contract terms and an increasing age of resident. For personal use only • Embedded collect growth points to strong future cash flow generation. NTA Embedded Collec
Slide 133: Development acquisition filters
For personal use only Development acquisition filters
Slide 134: Development pipeline
For personal use only Development pipeline
Slide 135: Development pipeline
Development pipeline DEVELOPMENT DELIVERY - FORECAST*^ For personal use only Project Status State FY16 FY17 FY18 FY19 FY20 FY21 Brownfield DELIVERY TRACK RECORD Tea Tree Gardens Delivered SA 2 Forresters Beach DA approved NSW 86 41 10 Newling Gardens Delivered NSW 9 36 Glengara DA approved NSW 55 10
Slide 136: Care Strategy – What is RA Care
For personal use only Care Strategy – What is RA Care 1. Ageless Program 2. Household support / home maintenance 3. Allied health 50% 40% 35% 30% 10% 4. Personal care 5. Clinical care
Slide 137: Care roll out
For personal use only Care roll out Each financial year villages with care apartments are rolled out first followed by Independent Living Units only villages. FY18 FY19 FY20 FY21+
Slide 138: RetireAustralia – End FY18
RetireAustralia – End FY18 For personal use only