Infratil Limited · NZX:IFT
Infratil — H1 FY2024 Earnings Presentation
29 slides from Infratil's earnings presentation, November 2023
Slide 1: Infratil Interim Results Announcement
Infratil Interim Results Announcement Managed by For the six months ended 30 September 2023
Slide 2: Disclaimer
Disclaimer This presentation has been Information This presentation contains summary information about the Company and its activities which is current as at the date of this presentation. The prepared by Infratil Limited information in this presentation is of a general nature and does not purport to
Slide 3: Interim Results Announcement
Interim Results Announcement Presenters Programme ▪ Portfolio Composition ▪ Half Year Highlights ▪ Operating Company Updates ▪ Portfolio Outlook Jason Boyes Infratil CEO ▪ Sustainability ▪ FY2024 Guidance ▪ Summary Phillippa Harford Infratil CFO 3
Slide 4: Portfolio Composition
Portfolio Composition In the period we acquired a further 49.95% of One NZ Digital Renewables Healthcare Airports and entered into a 65% (+8%) 18% (-3%) 11% (-3%) 6% (-2%) conditional agreement with HKT to accelerate the growth of Console Connect 4
Slide 5: Half Year Highlights
Half Year Proportionate EBITDAF Net parent surplus Highlights Strong operating performance $1,175m $400m across the Group, Investment Available capital with all key operating businesses lifting $2,706m $1,035m EBITDAF from the prior period Total shareholder return Partially-imputed interim dividend
Slide 6: Operating Company Updates
Managed by Operating Company Updates
Slide 7: CDC Data Centres
CDC Data Centres CDC is well Year to date • EBITDAF for the period was A$123.3 million, A$25.7 million (26.3%) up from the prior period positioned to take • Construction commenced on 223MW of additional capacity in response to demand signals advantage of across CDC’s customer base • Weighted average
Slide 8: Longroad Energy
Longroad Energy With pipeline Year to date • EBITDAF for the period was US$57.7 million, up US$17.0 million (41.7%) from the prior period strengthened and • Repowering of the 306MW Milford wind projects in Utah completed during the period increased • As of 30 September 2023, construction underway of
Slide 9: Development Platforms
Development Platforms Tangible development • Total pipeline of projects expanded to 10GW across seven countries, with • 6.9GW pipeline across six countries • Vanda RE, 75% owned by Gurīn Energy has contributions from all active markets and progress across from France for the first time received cond
Slide 10: Diagnostic Imaging
Diagnostic Imaging Focus remains on Year to date • EBITDAF for the period was $94.4 million, $13.7 million (16.9%) up from the prior period as scan operating volume growth recovers across New Zealand and Australia, tempered by labour and cost pressure performance in a • Scanning volumes have increas
Slide 11: Wellington Airport
Wellington Airport Continuing Year to date • EBITDAF for the period was $50.6 million, $10.4 million (25.9%) up from the prior period passenger • Improved recovery following Covid has allowed for distributions to resume earlier than expected recovery and • Passenger numbers for the period were 2.7 m
Slide 12: One NZ
One NZ Solid growth in Year to date • EBITDAF for the period was $279.4 million, up $21.5 million (8.3%) from the prior year Consumer and • EBITDAF margin continues to expand, increasing to 29.0% from 26.6% at 31 March 2023 through SME mobile, lower brand and rebrand costs and mobile outperformance
Slide 13: Manawa Energy
Manawa Energy Renewed Year to date • EBITDAF for the period is $77.8 million, up $7.8 million (11.1%) on the prior period emphasis on • Generation production volumes were 1,110GWh, up 13.7% from 976GWh in the prior period transition to an • Renewed emphasis on operational performance, a realigned ap
Slide 14: Retire Australia
Retire Australia Occupancy Year to date • Underlying Profit1 for the period is A$95.3 million, up A$63.4 million on the prior period remains high • Total unit sales of 286 were up from 237 in the prior period and comprised 83 new units and 203 against a growing resales. New unit sales were driven by
Slide 15: Portfolio Outlook
Managed by Portfolio Outlook
Slide 16: Sustainability
Sustainability Key elements of • Infratil released its inaugural sustainability report in August which covers: • Infratil’s refreshed sustainability strategy and ESG material issues – good governance of our sustainability ESG issues is a prominent area of focus framework have • Emissions reporting i
Slide 17: Debt Capacity & Facilities
Debt Capacity & Facilities 30 September 31 March ($millions) • Significant undrawn bank facilities 2023 2023 Significant Net bank debt 609.8 (593.2) remain available following funding initiatives executed during the period Infrastructure bonds 1,241.0 1,085.9 liquidity available Perpetual bonds 231.
Slide 18: Portfolio Company Debt
Portfolio Company Debt 30 September 31 March Portfolio Company Gearing1 • Gearing is monitored across the portfolio 2023 2023 Gearing and CDC Data Centres 22.3% 22.8% in aggregate and at the individual portfolio company level interest rate One NZ Fortysouth 32.1% 38.1% 36.1% 39.6% • Gearing has rema
Slide 19: FY2024 Guidance
FY2024 Guidance Confidence in Outlook • FY2024 Proportionate EBITDAF guidance range is lifted and narrowed to $820 million – $850 million operating (previously $800 million to $840 million) • Key guidance assumptions include: performance has • CDC Data Centres EBITDAF of A$260 million – A$270 millio
Slide 20: Valuation & Incentive Fees
Valuation & Incentive Fees FY2023 FY2024 30 September Incentive Adjusted Capital Distributions Hurdle Adjusted IRR1 CDC valuation ($millions) Annual Incentive Fee Valuation2 Valuation2 Fee uplift and CDC Longroad Energy $3,660.3 $1,185.8 ($34.6) ($48.0) $17.1 $18.4 ($220.9) ($74.5) $4,160.6 $1,256.8
Slide 21: Summary
Summary • Strong operating performance across the Group, with all key operating businesses lifting Focused on EBITDAF from the prior period. Guidance narrowed and lifted identifying a • The current uncertain macroeconomic backdrop underscores the importance of maintaining a diversified portfolio bro
Slide 22: Appendix
Ak Nf nage ty MORRISON. Appendix
Slide 23: Shareholder Returns
Appendix One Shareholder Returns Infratil continues 100% Accumulation Index 7,500 its track record of outstanding 80% 6,000 returns 60% 4,500 40% 3,000 Total Shareholder Return1 Period Return 20% 1,500 1 Year 22.3% - 0 5 Year 27.5% 10 Year 20.7% (20%) -1,500 Inception – 29.5 years 18.8% 2014 2015 20
Slide 24: Financial Summary
Appendix Two Financial Summary Six months ended 30 September ($Millions) 2023 2022 • Operating revenue reflects the inclusion of Net parent Operating revenue 1,460.6 951.0 One NZ as a consolidated subsidiary from June 2023 Operating expenses (940.9) (450.0) surplus of Operating earnings 519.7 501.0
Slide 25: Proportionate EBITDAF
Appendix Three Proportionate EBITDAF Six months ended 30 September ($Millions) 2023 2022 • Infratil proportionate EBITDAF up 14.1% on Strong growth CDC Data Centres 64.3 51.9 a like for like basis, once the increase in stake of One NZ is normalised One NZ 225.1 128.8 reflects the Fortysouth 5.5 - •
Slide 26: Earnings Reconciliation
Appendix Four Earnings Reconciliation Six months ended 30 September Proportionate EBITDAF is an ($Millions) 2023 2022 Net surplus after tax 1,214.5 557.3 unaudited non-GAAP (‘Generally less: Share of earnings of associate companies1 (173.9) (346.6) Accepted Accounting Principles’) plus: Proportionat
Slide 27: Movements in Net Bank Debt
Appendix Five Movements in Net Bank Debt Period ended 30 September 31 March 30 September ($Millions) 2023 2023 2022 The Wholly Owned Group Opening Wholly Owned Net Bank (Debt)/Cash 593.1 405.7 773.0 comprises Infratil and its Manawa Energy dividends 13.6 12.0 81.6 One NZ distributions and shareholde
Slide 28: Proportionate Investment
Appendix Six Proportionate Investment Six months ended 30 September ($Millions) 2023 2022 • CDC has capacity under construction Strong thematic CDC Data Centres 105.6 230.0 across Canberra, Sydney, Melbourne, and Auckland One NZ 122.4 62.4 tailwinds continue Fortysouth 2.6 - • One NZ capex included
Slide 29: Asset Valuations
Appendix Seven Asset Valuations 30 September 31 March This table shows valuations of ($Millions) 2023 2023 • CDC, Longroad Energy, and RHCNZ CDC Data Centres 4,160.6 3,660.3 Medical Imaging reflect the midpoint of Infratil’s assets. The valuation of 30 September independent valuations Infratil’s inv